Richmond Hill
April 09, 2009 By: Adam Mc Lean www.yorkregion.com

2009 town budget approved by council

Mayor Dave Barrow and councillors approved the 2009 Town of Richmond Hill budget at council Monday night.

It will result in a 2.1 per cent tax increase for Richmond Hill residents to sustain a budget with an operating component of $111.7 million and a capital plan of $29 million.

For an average Richmond Hill residential property assessed at $400,000, the tax increase translates to payments of $23.24 annually or 6 cents per day.

In comparison, last year's $107.7-million operating budget with $27.8 million in capital expenditures resulted in a 4.9 per cent tax hike. So for a residential property assessed at $400,000, the 2008 tax increase translated to payments of $51.68 annually and 14 cents per day.

There was much concern leading into this year's budget, as it was crafted during a global recession.

Only months ago, councillors and staff worried that to maintain an adequate budget for 2009, residents would be dinged with a tax hike above a forecasted five per cent.

To bring this figure down, town staff were directed to consolidate all decisions and prepare a final recommended budget targeting a 2.1 per cent increase.

This figure was determined after the 2009 budget committee approved a draw of more than $1.2 million from the town's Tax Rate Stabilization Reserve to lessen the blow of money needed for increases to the base services budget. The hike will be used for three main purposes. There will be increases in full-time staffing, salary adjustments and road maintenance. There will be new service charges for the Centre for the Performing Arts operation and the Business Improvement Area, plus and new items, including participation in the Doors Open heritage building touring event, four new firefighters and an artificial turf at Richmond Green.

With these last financial adjustments made and the budget approved, the figures and efforts from town staff and councillors were met with a hardy round of applause from staff members, councillors and residents present at council chambers.

"The Town of Richmond Hill is debt free and well positioned to withstand the recession, however, this is not a typical year for anyone," said Councillor Arnie Warner, the 2009 budget chairperson.

"That's why during our years of prosperous growth, council was fiscally responsible and set aside funds for 'rainy days.' It's important to council and the residents that we do not compromise the quality of life in Richmond Hill, he added.

These sentiments were echoed by others, with Mayor Barrow pointing to maintaining existing service levels as a main aim in the budget perparation.

"We share our community's concern about the economic recession, and that's why we have done everything in our power to eliminate any unnecessary expansion in our budget," Mayor Barrow said.

"The modest increase reflects the residents' needs for not cutting existing service levels, and it will also put people to work through our infrastructure projects, introduce new financial and greening efficiencies, as well as continue our strong focus on planning for the Town's future," Mayor Barrow added.

Significant projects to be funded by the 2009 Capital Budget include a new fire station design, various watermain reconstruction projects, Elgin Barrow Arena roof repairs and Richvale Athletic Fields reconstruction.

The Town also collects taxes on behalf of the Region of York for the services it provides and the provincial government for education, forwarding those funds on to them.

About 26 per cent of a residential tax bill is for town services, while roughly 49 per cent goes to the Region of York and about 25 per cent to the school board.

The town portion of the residential tax bill covers costs associated with services such as: waste management, parks, libraries, community centres and pools, fire services, road construction and maintenance.

The combined retail rate for water and wastewater services will be roughly $2.02 per cubic metre, which is a 9.26 per cent increase over 2008.

The town said this is mainly due to a 10 per cent combined wholesale price increase charged by the Region of York.

For more information regarding the 2009 Town of Richmond Hill budget visit www.richmondhill.ca

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