Newmarket property taxes may rise in 2016

Yorkregion.com
Oct. 22, 2015
By Chris Simon

Your town taxes could go up by nearly $62 next year, if municipal staff gets its way.

Newmarket staff unveiled a preliminary version of the town’s draft budget during a committee of the whole meeting Monday.

The document includes a $61.68 increase for the average resident - homeowners living in a house assessed at $450,072 - on the town’s portion of the property tax bill.

Over the past few years, the town has been hit hard by “significant” property tax reassessments, lower than anticipated growth and decreases in interest rates, staff says.

While the town is addressing the reassessment issue by implementing a system to better maximize predictable property tax revenues, it still needs to pay for the services it offers without relying so heavily on reserves.

“While revenues are growing on an annual basis, they are not achieving the budgetary target,” town treasurer Mike Mayes said.

“In 2016, we need to begin right-sizing. Through reviews and trend history, it is becoming clear that for a variety of reasons, our revenue targets are not being achieved.

During the 2016 budget process, staff has been operating with an administrative target of a maximum of 2.5 per cent for base needs to preserve service levels, growth and enhancements.

This target is consistent with that established by council for the 2015 budget. This is proving to be a significant challenge, Mayes’ report states.

The town took a large dip into its reserves in 2014 and similar results are forecasted this year, he said.

The town will continue to seek other revenue and funding sources, Mayes said.

The 2016 budget includes promotion for such initiatives as wedding ceremonies, sponsorship opportunities, etc. There will be a managed approach to better align expenses with revenues and will take into account desired service levels and five-year trends, the report said.

The increase also includes a 1-per-cent levy to help build the town’s asset replacement fund, which is typically used to pay for upgrades to aging infrastructure and equipment.

Another report will be presented to the committee Nov. 9.