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York Region council approves 3.9% tax increase as part of 2023 budget

Yorkreigon.com
March 9, 2023

York Region residents can expect a 2.9 per cent tax increase plus an additional one per cent levy for the Yonge Street subway extension, adding about $105 to the average residential property bill.

It’s part of the $3.96 billion regional budget approved for 2023.

The budget includes $3.06 billion in operating costs and $894 million in capital spending, part of a 10-year capital plan of almost $10 billion in spending.

The operating budget focuses on day-to-day expenses and funding asset rehabilitation and replacement, while the capital budget covers major infrastructure requirements.

The multi-year budget projects a 3.75 per cent tax increase in 2024 and 3.6 per cent in 2025 and 2026.

Included in this year’s budget is a new initiative that would see $12.8 million invested over the next four years to address housing, homelessness and mental health.

Regional chair Wayne Emmerson introduced the idea to council Feb. 9, suggesting these funds come from an additional one per cent tax increase.

"This council, we want to make a difference … We do it for roads, we do it for water and sewers, but we (haven’t addressed) the social impact of what has happened over the past three years. It’s the right thing to do … Now is the time.”

Newmarket Mayor John Taylor agreed, saying the funding is especially important in light of the recent court ruling prohibiting eviction of tent cities if there’s a shortage of shelter beds.

“If we don’t step up and invest in shelters and wraparound services, we are going to have no ability to adjudicate and we’ll have to allow encampments in our community parks.”

The region was able to avoid imposing the one per cent tax levy by drawing from regional funding reserves.

About $4 million in this special fund will address urgent needs of residents experiencing homelessness. An additional $5.5 million is allocated for increasing and enhancing community housing and $3.2 million for the Community Investment Fund, including mental health and supports for sex trafficking survivors

Staff will report back to council for more sustainable funding options.

York Region plans to continue lobbying senior levels of government for increased investment in areas such as mental health and human trafficking.

The region also called on the Government of Ontario to find ways to ensure Bill 23 does not require future tax levy increases.

The controversial “More Homes Built Faster Act” removes costs previously funded through development charges and introduces new housing exemptions and discounts -- reducing York’s revenues by up to $1.6 billion over the next 10 years.

In a statement released March 6, the region said these changes could require a one-time property tax increase between 2.3 per cent and 7.3 per cent, plus an additional water and wastewater rate increase between 4.9 per cent and 14.3 per cent, in order to maintain existing service levels.

At a special meeting Feb. 23, council voted to ask the Minister of Municipal Affairs and Housing for confirmation that York Region will be “made whole financially to pay for necessary infrastructure and community services to support building more homes faster.”

Councillors asked the province for continued dialogue, collaborative actions and financial support, saying “the province, local municipalities and the development industry all have a role to play.”