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Home/Our Services/News and Alerts

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Richmond Hill Takes Action to Ease Budget Impact of COVID-19

Posted on Tuesday, October 06, 2020
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Council sets sights on low 2021 property tax increase

RICHMOND HILL – Richmond Hill Council is committed to achieving the lowest property tax increase residents have seen in more than 15 years, despite the financial challenges posed by COVID-19. Council has set a maximum 0.5% municipal property tax increase for 2021. It will be the second year in a row Richmond Hill has maintained an increase below 1%.

Throughout the global pandemic, the City has continued to offer much needed services to residents – from waste collection and fire services to bylaw enforcement and safe drinking water – followed by a gradual reopening of facilities and amenities. This is in large part thanks to the residents who paid their property tax on time, with Richmond Hill collecting 90% of property taxes this year.

However, provincially mandated closures of facilities and programs to protect the health and safety of residents led to a projected $15.9 million revenue shortfall in 2020. This is offset by $9.5 million in reduced expenses during the pandemic. Council and the City have taken action so residents won’t bear the more than $6 million cost remaining, including:

  • Placing non-critical staffing recruitments on hold resulting in a savings of approximately $2.5 million
  • Reducing training and conferences for staff for a savings of almost $500,000  
  • Deferring internal corporate programs such as City-run conferences for a savings of close to $400,000
  • Reevaluating internal staff programs such as flu shots and service awards – many of which are ill advised due to COVID-19 for a savings of $46,000.

As a result, current projections show the City has reduced its year-end deficit to only $1.38 million in 2020, which will be covered using the phase 1 emergency funding from the Province. These decisions ensure the City remains on target for the 2020 budget and combined with the remaining emergency funding, will position Richmond Hill well for achieving Council’s target of a maximum 0.5% tax increase in 2021.

While the budget pressures of COVID-19 are expected to be short term, Richmond Hill Council has also undertaken a comprehensive update of the City’s long-term financial planning to ensure financial sustainability and maintenance of infrastructure such as roads, parks, buildings and stormwater systems for the next 10 years and more.

Richmond Hill is also focused on finding efficiencies throughout City operations while maintaining exceptional public service. New digital service offerings such as the online Residential Building Permit applications and credit card payments for property tax and water bills are examples of the ongoing work to modernize government operations to provide services for the same, or less, cost to taxpayers.  

Quotes

“Throughout the pandemic, Richmond Hill residents and businesses have stepped up and continued to do their part to help stop the spread of COVID-19. City staff and Council are continuing to do everything we can to protect the health and safety of our community, which includes our short- and long-term financial health. I am confident the tough decisions we made will put us in the best position to recover and thrive.”    - Mayor Dave Barrow

“As a City we have moved mountains to be in a position to endure the financial fallout of COVID-19. Richmond Hill is a leader among municipalities and a shining example of how to manage a budget in a crisis. I’m proud of what we have accomplished. But it’s our residents who deserve a big thank you. Despite our decision to waive penalties and interest on taxes until January 2021 over 90% paid their taxes this year. Their efforts helped support Richmond Hill’s recovery and continued services for their family, neighbours and the entire community.” 
  - Joe DiPaola, Budget Chair and Deputy Mayor

“After many difficult months, this is a good news story for the residents of Richmond Hill. At the beginning of the global pandemic there was fear and uncertainty about whether the City could manage the financial implications and we’ve done it. I’d like to thank my colleagues and City staff for this achievement – keeping us on track for this year and beyond.”   - Greg Beros, Budget Vice Chair and Ward 1 Councillor

Quick Facts

  • The target 0.5% maximum tax increase for 2021 is lower than the 0.73% increase achieved for 2020 and well below the projected cost of inflation in 2021.
  • Richmond Hill receives only 28% of property taxes collected from your tax bill. The majority goes to school boards (23%) and York Region (49%), which will set their own tax rate increases for 2021.  
  • Richmond Hill, like all Ontario municipalities, is required to balance its budget each year and cannot run a deficit.
  • Richmond Hill Council will consider the 2021 Capital Budget in November 2020. Richmond Hill’s 2021 Operating Budget will be reviewed and approved in early 2021.

Additional Links

  • RichmondHill.ca/Budget

 

Media Contact

Libbi Hood, Communications Advisor, libbi.hood@richmondhill.ca

 

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