Richmond Hill Council Approves 2018 Operating and Water Budgets

RICHMOND HILL – At a Special Council Meeting on February 6, Richmond Hill Council approved the 2018 Operating Budget and capital asset sustainability fee. The $174.82 million budget represents an increase of $2.9 million, within the Council-directed maximum increase.

“Council set the direction for the 2018 budget last June to ensure we maintain and where possible, enhance services to Richmond Hill residents while keeping tax increases reasonable,” said Mayor Dave Barrow. “We continue to grow and prosper as a municipality and our residents benefit and contribute to our thriving community.”

Richmond Hill’s budget increase is equal to a $49.77 increase on the annual tax bill of an average Richmond Hill home valued at $1.1 million. Richmond Hill is also responsible for collecting taxes on behalf of York Region and the school boards. York Region’s budget increase is equal to an $86.73 increase on an average Richmond Hill home valued at $1.1 million.

Highlights of the Operating Budget include:

• Completion of construction and opening of the new Oak Ridges Library Branch (spring 2018)
• Completion of construction and opening of the Ed Sackfield 2nd ice pad and fitness facility
• Completion of the LED street light conversion project for arterial roads, parks and parking lots
• Summer Camp Programs at the David Dunlap Observatory (DDO)
• Installment of 10,000 radio frequency water meters
• Information technology projects to improve efficiency (system updates) and external service (e.g. parking ticket management)

“With the 2018 Operating Budget we continue to work within the parameters we have for savings and revenue,” said Budget Chair, Regional & Local Councillor Vito Spatafora. “We fully leverage available funding, such as gas tax grants, to ensure Richmond Hill residents get the best value for their tax dollars.”

Some new staff are included in the 2018 Operating Budget. For the Ed Sackfield Arena expansion, a new Arena Operator, Lead Hand and Skating Coordinator will be hired. An additional four firefighters will be added as Richmond Hill continues to implement its Fire Master Plan and a Water and Wastewater Operator, funded through the Water Rate, will be hired.  

“One of the budget pressures we are facing this year is the increase in minimum wage to $14 per hour that took effect January 1,” said Mayor Barrow. “Many of our part-time staff work in core services like recreation and are crucial, so we are funding the difference through reserves this year while we look at adjusting fees for 2019.”

Council also approved the 2018 Water, Wastewater and Stormwater budget. The 7.5 per cent increase on water and wastewater takes effect April 1, 2018 and is largely driven by the nine per cent wholesale rate increase York Region charges for these services. To help mitigate the increase, Richmond Hill is ending the early payment discount program on water bills effective July 1, 2018.

The 2018 Operating Budget also:

• sets the Stormwater Management Rate for 2018 at $67.84 per year for residential properties,
• adjusts the capital asset sustainability fee to $47 per tax account, and
• increases the Seniors’ Tax Assistance Grant for 2018 to $387 per eligible applicant.

“We have so much to be proud of as a community,” said the Mayor. “And we have so much to look forward to. This budget lets us move forward on not only current projects like the renewal of David Hamilton Park, making the DDO a public asset and others, but also important projects that will impact our community in the future like the Civic Precinct, new infrastructure and more.”

Approval of the Operating Budget and Water, Wastewater and Stormwater budget is the final phase of Budget 2018, a public process which included a business community information session December 8, 2017 and a public information session January 20. Council previously approved the 2018 Capital Budget of $70.64 million in November 2017.

Visit RichmondHill.ca/Budget for more information about Richmond Hill’s 2018 Budgets.   

Backgrounder: 2018 Operating Budget         

Richmond Hill’s 2018 Operating Budget is $174.82 million. This represents a $2.9 million increase over the 2017 Operating Budget, which is a 2.71 per cent increase.

Combined with the York Region and school board portions of the annual tax bill, Richmond Hill residents will see an overall increase of 2.12 per cent on their final property tax bill for 2018. 

Stormwater Management Rate:

Richmond Hill residents and businesses pay a Stormwater Management (SWM) Rate. The rate is used to maintain and improve our SWM system. The system controls stormwater runoff in our community, protecting our green spaces and natural water sources.

Senior Tax Assistance Program:

Richmond Hill provides a Senior Tax Assistance Grant to homeowners 65 years of age or older. The amount of the grant is determined upon approval of the annual budget. To qualify for the Senior Tax Assistance Grant, seniors must apply each year, occupy their residential property in Richmond Hill, be the assessed owner (or spouse of the owner) of the property for at least one year immediately preceding the date of the application and receive the Guaranteed Income Supplement as provided under the Old Age Security Program.

Operating Budget:

Richmond Hill's Operating Budget covers the costs of everyday operations and activities, including utilities, rent, insurance, staff wages and benefits, program supplies, transportation and repairs. Funds for the Operating Budget come from taxes, fees and other items, such as program registrations.

Capital Budget:

Richmond Hill's Capital Budget outlines the cost for growth and maintenance of existing infrastructure, such as community centres, fire stations, pools, parks, trails, arenas, roads and sidewalks. Funds for the Capital Budget come from Richmond Hill's reserve funds, development charges and federal and provincial grants.

Capital Asset Fee:

The Capital Asset Fee is a flat rate which is added to each property tax account to fund repair and replacement of aging infrastructure (such as roads, parks and buildings). The rate is shown only on the final property tax bill. During the 2018 Operating Budget meetings, Council decided to convert this flat fee to a percentage-based levy in 2019, aligning the amount residents pay to the value of their property.