Newmarket council is well on its way to making the “tough decisions” regarding how much your taxes will increase and where those tax dollars will be spent.
At a special committee of the whole meeting this morning on the draft 2019 operating budgets — the second-to-last public meeting before the Town of Newmarket’s operating and capital budgets are finalized — treasurer Mike Mayes and other officials reported back on options to find an additional $300,000 in reductions to the 2019 tax levy requirement that doesn’t affect services or the infrastructure levy.
The operating budget is the annual plan for the purchase and financing of the Town's operations. It includes salaries, materials and supplies, and excludes capital expenditures.
Three tax increase options are being considered by council, which result in the following for the average homeowner: 3.95 per cent or an additional $77 per year; 3.20 per cent or $62 and; 2.99 per cent or $58.
Mayes explained that potential revenue increases from such things as supplementary taxes from new homes is volatile, as it can take up to a year for the revenue to land in Town coffers.
In the short term, the revenue is difficult to predict, the staff report stated. As well, in the medium to long-term, as “the Municipal Property Assessment Corporation (MPAC) becomes more efficient, the backlog and its related revenue will be reduced resulting in a negative budget impact. Similarly, when growth slows, there will be a negative budget impact”, the report said.
With regard to a potential savings of $120,000 that has been budgeted for casual wage increases in the event the funding is actually needed in 2019, the staff report explained that the Town has forecasted higher levels of retirement in 2019 and 2020.
“Leaving positions vacant to achieve the target is counter to good operational management by the Town,” states the report.
Additional information was also provided on the breakdown of budgeted costs related to the Mulock Farm operating costs.
In total, it’s expected to cost $344,080 in 2019 to maintain the property at the corner of Mulock Drive and Yonge Street. That includes such expenses as $25,000 for heat for the house on the property, $40,000 for security guards, $10,000 for building repairs and maintenance, $300 a month to clean the building, and more.
Mayes said the budgeted amount could be an “over-estimation”, but that the Town is responsible to get the property ready and to keep it safe.
Councillor Jane Twinney asked staff to explore the possibility of savings on the costs associated with Mulock Farm, particularly since it won’t be open to the public yet and is still in the planning stage.
“I think we can find some savings here,” Twinney said. “We haven’t even decided what we’re doing with it yet.”
Mayor John Taylor asked the Town’s financial staff to report back with options on ways to reduce the Mulock Farm’s operating expenses at its next and final budget meeting on Feb. 25.
To see the entire list of recommended capital projects spending for 2019 and more, visit here.
To learn more about where you tax dollars go and to get involved in the budget process, visit here.
The next meeting is scheduled for Monday, Feb. 25 at 1:30 p.m. in the Municipal Offices Council Chambers, 395 Mulock Dr. A regular committee of the whole on that day will review and discuss the draft budgets, along with an update on phase two of the community engagement process.
