Newmarket residents could see a hike in taxes or scaled-down services provided by the Regional Municipality of York as it struggles to deal with provincial funding cuts and legislative changes that are expected to have a “significant” impact on its 2020 budget, Mayor John Taylor warned.
“The best way I can put it in perspective is that the current estimates suggests that the cuts we’re aware of and the implications of the changes that we’re aware of, including of Bill 108, is that we’re probably looking at something in the range of $100 million to $110 million to our bottom line at the Region over the next four years,” Taylor said in a regional update at the Town’s last council meeting June 24 before the summer break. “For example, $11.4 million is a 1-per cent tax increase at the Region. So, you’re talking about very significant financial impacts.”
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Extensive consultations have been taking place around the regional council table as it struggles to deal with funding reductions handed down this year by Ontario’s Conservative government.
The Region’s budget shortfalls, estimated to be $10.9 million in 2019, $28.5 million in 2020, $38.1 million in 2021, and $42.2 million in 2022, impact such things as public health, children’s services, York Regional Police, homelessness and housing initiatives, forestry, and more.
In addition, what’s known as Bill 108 – More Homes, More Choice Act, a key driver of the Ontario government’s housing supply action plan that amends 13 statutes, including the Development Charges Act, could result in an estimated shortfall to the tune of $300 million over the next five years, according to a June 12 update from the Region’s finance commissioner and regional treasurer Laura Mirabella.
“The bill, as it relates to the Development Charges Act, 1997, changes when the amount of development charge is determined, when development charge is payable (for prescribed classes), and what services are eligible for development charge recovery. The changes will limit the Region’s ability to recover growth-related infrastructure costs through development charges,” Mirabella said in the update.
Regional Council is expected to deliberate on the 2020 budget over the summer and into the fall. Local residents were dealt a 3.96 per cent tax increase in 2019, which includes a 1-per cent roads capital acceleration reserve tax to help pay for regional infrastructure programs.
“The bottom line is, and this is not playing politics and I’m not being partisan, we’re going to have to either raise taxes or reduce service levels,” Taylor said. “We will look for efficiencies as well, but it’s very unlikely that efficiencies to that level with that far-reaching an impact are going to answer everything.”
