Vaughan's 2016 budget approved
2.9 per cent property tax increase

YorkRegion.com
Dec. 16, 2015
Adam Martin-Robbins  

The average Vaughan homeowner will see the city’s portion of their property tax bill jump by nearly $40 next year.

City council, on Tuesday night, approved its 2016 budget, which includes a 2.9 per cent tax hike.

That works out to a $38 increase for the average homeowner with a house valued at $626,000, according to city finance staff.

The increase brings Vaughan’s portion of the tax bill to about $1,366, not including the $56 hospital levy.

Factor in that levy, along with the Region of York’s portion, which might be set by regional council Thursday and could rise by $69 (based on a proposed 2.85 per cent increase), and the education component paid to the province, pegged at $1,145, and the total property tax bill could rise above $5,000 for the average homeowner.

Mayor Maurizio Bevilacqua called it the “best budget” he’s seen during his five years in municipal office.

“We once again delivered on our promise of being below 3 per cent making us one of the lowest tax jurisdictions in the Greater Toronto Area,” he said. “This budget also reinforces our commitment to fiscal responsibility and service excellence and includes $14 million in savings and more than 700 capital projects that will contribute to the quality of life of everyone here in the community.”
Throughout the budget talks, which began in early November, city finance staff had projected that the city needed to boost taxes by 3 per cent.

But when the final property assessment growth rate number came in Tuesday from the Municipal Property Assessment Corporation (MPAC), it was slightly higher than expected — 1.461 per cent rather than .75 per cent.

That equates to a revenue injection of $665,000 into city coffers next year.

A portion of that, $255,000, went toward lowering the tax increase to 2.9 per cent while the remaining $410,000 is going into a contingency fund.

The city’s long-term budget plan includes not only a 2.9 per cent hike for this year, but also projected increases of 3 per cent in 2017 and 2018 — the maximum allowed under a mandated cap imposed by council for this term.

Those increases will, in part, help cover operating costs of $264.9 million this year, $273.4 million in 2017 and $284 million in 2018.

Among the city’s spending priorities is a major investment in new infrastructure projects – roads, buildings and park equipment, among other things — to the tune of $131.4 million.

Another $74.1 million is earmarked for ongoing projects.

At $70 million, the city’s road network accounts for the bulk of new infrastructure spending.

Vaughan has also budgeted about $33.8 million for new buildings and $8 million for play structures, sports fields, basketball and tennis courts in local parks.

The city plans to spend about $9.6 million over three years – or $3.2 million per year — on tree replacement to address damage wrought by the emerald ash borer and the December 2013 ice storm.      

“I’m very pleased and very, very happy with the direction that we’ve taken,” said Regional Councillor Gino Rosati, who served as chairman of the budget committee.