The Town of Newmarket is preparing to go ahead with a 2.99 per cent tax rate increase that would cost the average homeowner around $72 more next year.
The town’s draft operating budget has stuck with the figure directed by council earlier this year. The municipality is preparing to go ahead with the increase in public consultation. Although it is subject to change, it is what the town is planning for the 2024 budget to be approved by the end of the year.
Newmarket Mayor John Taylor said during a Nov. 13 council meeting that it is a challenging number.
“Our staff have to watch every penny throughout the year,” Taylor said, adding that many surrounding municipalities may have higher increases due to inflationary pressure. “Many people don’t like to see any increase. This is a very reasonable increase in light of the current circumstances and those around us.”
The tax rate figure is a return to what this group of council members has typically aimed for in previous budgets, a tax increase below three per cent. Council opted for a 5.5 per cent tax rate increase last year due to inflationary pressures.
Staff said the town is continuing to face challenges with a higher-than-normal inflation increase. As a result, the proposed budget maintains the status quo with no enhancement of services.
“It has been challenging to achieve the target of 2.99 per cent tax levy,” deputy treasurer Andrea Tang said in a written report. “Staff are exploring alternate ways to maximize budgeted resources to deliver the day-to-day operations and the proposed 2024 capital program.”
Based on 2.99 per cent, the average annual increase on a tax bill for a home assessed at $702,000 would be a $72. That excludes other portions of property taxes, including York Region’s and the boards of education.
To help keep a lower tax rate, staff proposed to increase user fees by 3.4 per cent, higher than the expected 2.4 per cent increase in the consumer price index for inflation. The staff report said this is justified considering a lack of increases for user fees in 2020 and 2021.
"The proposed higher than CPI increase in 2024 is a way to catch up with recent years’ inflationary increases and moving toward bringing the full cost of a service in better balance between the tax base and the service users,” the staff report said.
The town is also ramping up operational costs for Mulock Park. Although the park will not be complete in 2024, the town is setting aside $250,000 in the 2024 budget from growth — a non-tax rate source — to help ramp up toward paying for the park’s operational expenses.
“This is ramping up so that there isn’t a big increase,” Tang said. “To build up to the desired level of operating cost that’s needed when the park is open.”
Taylor said there are still challenges the town will face financially that could impact this and future budgets, including the province reducing development charges through Bill 23.
“We’re still seeing inflation increase, and frankly, we’re still fully digesting and understanding the impacts of Bill 23,” he said.
Staff will present a draft budget Dec. 4 before the budget has a final approval expected Dec. 11.
