Committee requests 2.5 per cent tax increase

Vaughan Weekly
January 22, 2014   
By Angela Gismondi

 Adjustments to Vaughan’s draft budget have resulted in a decrease to the proposed tax rate, but councillors want the figure reduced even further.

Revisions to the draft tax rate were presented at a finance and administration committee meeting Jan. 15

When the draft 2014 budget was first presented at the finance committee meeting last November, City staff proposed a draft tax rate of 4.80 per cent. Since that time, new information has come forward which resulted in adjustments to the draft budget. Because of the early budget time line, estimates were made but as more current information becomes available and an additional review is undertaken, adjustments to the budget are required.

Overall the combined budget adjustments, which total $2,112,889, have a positive impact on the 2014 draft budget. One of the major items which required an adjustment was the PowerStream dividends which are expected to be higher than originally forecasted. That resulted in a $1,000,000 budget adjustment. Adjustments to the Vaughan Holdings Inc. staff support recovery, debenture reserve transfer and employee benefits also contributed to the revised rate.

The adjustments dropped the proposed tax rate from 4.8 per cent to 3.47 per cent, which translates to $43 on the 2014 property tax bill for the average home in Vaughan, valued at $551,000.

But committee members said they would like to see the figure reduced even further before it is brought to council for final approval. They asked that the tax rate for 2014 be capped at 2.5 per cent, which would increase the average homeowners property tax bill by $36 for the year. While all of the capital projects currently included in the budget would go ahead, in order to further decrease the tax rate, some of the additional resource requests will have to be cut.

“To maintain service levels for our residents in the City of Vaughan, that is the priority,” said Councillor Michael Di Biase, who suggested the 2.5 per cent as a maximum increase.

Mayor Maurizio Bevilacqua agreed with Di Biase.

“The important thing here is that we signal to the taxpayer that there will be a modest increase of 2.5 per cent,” said the mayor.

A few deputants came forward at the committee meeting to voice their opinions on the budget.  Woodbridge resident Guido Masutti asked why it took the committee so long to arrive at the proposed rate. He also questioned the projects included in the budget.

“It seems to me a good amount of the public money is spent on projects that benefit a few people,” he said.

When asked by Councillor Deb Schulte to elaborate, Masutti said that intensification was a major concern for him and that there are too many condos going up across the City.

Sam Maltese, representing the Vaughan World Series Slo-Pitch Baseball League, asked that funding for the lights at the Sonoma Heights baseball diamonds remain in the budget.

“We know soccer is big in Vaughan but there are other sports in Vaughan too,” he said, adding lights are needed at the diamonds to be able to play after dark which will allow adult baseball leagues in the City to expand. “I want to make sure it doesn’t end up on the chopping block,” he added

Maltese was assured the funding for the lights will be included in the budget.

Staff was asked to bring back a revised list of additional resource requests which can be included within a budget plan with a 2.5 per cent increase.

A finance committee meeting will be held on the budget on Jan. 29 starting at 9:30 a.m. A special council meeting will be held before budget approval to provide the public with a final opportunity to comment on the plan. The meeting is anticipated in mid-February.