Richmond Hill council hopes to lower draft 5.17% tax hike

'We need to see where it reasonably can be cut back,' says Hogg


Yorkregion.com
Jan. 29, 2015
By Kim Zarzour

Richmond Hill’s draft operating budget is calling for a 5.17 per-cent tax rate increase.

Dave Dexter, town treasurer and director of financial services, presented the 2015 draft operating budget overview to councillors Tuesday.

The operating budget consists of expenses that cover day-to-day activities or operations, including utilities, rent, insurance, staff wages and benefits and repairs along with revenues from taxes, fees and other items.

The town faces increasing economic pressures and an expected loss in investment income, budget committee members heard.

“I don’t think the 5.17 per cent will stand,” committee chairperson Brenda Hogg said yesterday. “We’ll need to see where it reasonably can be cut back."

In previous years, the town was able to minimize tax increases by drawing from the tax rate stabilization reserve.

Last year’s increase, which on first presentation was set at 4.5 per cent, was whittled down to 3.5 per cent and then “artificially” lowered further by subsidizing from the reserve fund, she said.

It meant the town’s final increase last year - 2.04 per cent - was the third lowest in the GTA, but Hogg said that may not be sustainable.

Other local governments, faced with high proposed tax increases this year, have asked municipal departments to cut further, she said.

“But we have make sure we don’t knee-jerk react. That would be irresponsible. We have to find some stability” in tax increases, she added.

The town has scheduled five meetings in coming weeks to allow departments to explain their budgets to councillors and the public is invited.

The issue of snow windrow removal, for example, will be considered during the Feb. 3 budget meeting.

During the recent election, many candidates criticized the town for lack of transparency when it came to the budget.

A public information booth, with posters, videos and handouts explaining the budget process, was available at Hillcrest Mall, from 10 a.m. to 2 p.m. Jan. 17.

Hogg said about 50 members of the public stopped to discuss the budget that day with town representatives.

There were few members of the public in attendance at Tuesday’s budget presentation.

The budget process is expected to continue through to the end of March.