The average homeowner in Richmond Hill will see an increase of about $72 on their tax bills this year, with Richmond Hill council approving a 2023 operating budget of nearly $200 million with a 3.72 per cent tax rate increase.
The budget supports the creation of a new strategic plan with input from the community, as well as a diversity, equity and inclusion strategy, an age-friendly community strategy, an online water billing customer portal, and updates to both the emergency plan and festival and events strategy, according to a City of Richmond Hill news release.
As well, the operating budget includes $500,000 for the 16 new firefighters approved in the 2022 budget, the second of five years of phased-in funding.
“This is a responsible budget given the challenges and pressures the city is facing. Council is committed to keeping tax increases as low as possible while maintaining quality services for the community," said Mayor David West.
On an average home in Richmond Hill valued at $1.146 million, the tax increase on the Richmond Hill portion of property taxes is equal to $72.74 in 2023.
Residential taxes are calculated by multiplying the tax rate with the assessed value of the home, which is set by MPAC (Municipal Property Assessment Corporation). Due to COVID-19, assessed values in 2023 remain at 2020 levels.
About 64 per cent of Richmond Hill’s operating budget is funded by property taxes, with 19 per cent of funding provided by user fees and fines and the remaining portion from grants and donations, investment income and reserve funds, the city stated.
Richmond Hill’s 2023 operating budget is $199,974,300, of which $126,146,000 is supported by property taxes.
“Our 2023 operating budget is a sensible budget after two years of 0 per cent tax increases. Council has made the tough decision to increase taxes enough to maintain services and ensure Richmond Hill maintains its solid financial footing," said Joe DiPaola, budget chair and regional councillor.
The average property tax increase over the past five years, 2019 to 2023, is 1.3 per cent, the city said.
Richmond Hill continues to invest in community infrastructure by contributing to reserves and directing some tax-supported funding toward capital projects, the city said. Last January, council approved an $84-million capital budget for 2023, including growth-related projects such as implementing the Richmond Hill David Dunlap Observatory Park master plan, Bayview Hill Park revitalization, eight pedestrian crosswalks, a new fire truck, 400 metres of multi-use trail and 880 metres of nature trails.
The capital asset sustainability levy increases by 1 per cent to fund the repair and replacement of aging infrastructure such as roads, parks and buildings. The increase is equal to $19.55 on a property valued at $1.146 million.
Council also approved a 2023 water, wastewater and stormwater budget with rates increasing by 3.3 per cent as of April 1.
Richmond Hill’s senior tax grant for 2023 is $419. Residents 65 years old or older who own their home should visit RichmondHill.ca/
In 2023, Richmond Hill will keep 26 per cent of residential property taxes, with 51 per cent sent to York Region for regional services and 23 per cent sent to school boards for education funding. Richmond Hill council controls only the local portion of taxes.
