King's taxes up 3.78 per cent overall after Region passes budget
By Bill Rea

The average homeowner in King Township is going to have to come up with another $193.55 this year in property taxes.

That is the overall tax hike in light of York Regional council passing its 2008 budget Thursday.

That budget included a 3.94 per cent tax hike, and Township Treasurer Don Young reported that, combined with the 5.94 per cent tax hike King council passed two weeks ago, adds up to an overall increase of 3.78 per cent. For a home in King assessed at $479,500 (which Young said is the average), that will mean a total increase of $193.55, bringing the total residential tax bill to $5,313.14. Young added there was no change in the education component at the residential level.

The budget that Regional council passed last week calls for roughly $1.3 billion in total spending.

The tax increase would have probably been another two per cent higher, but York is slated to realize some $13.3 billion in savings though the gradual phasing out of GTA pooling. This money has been collected from York and other regions and passed on to the City of Toronto to help cover their social services costs. It should be phased out completely by 2013.

Regional CAO Bruce Macgregor told councillors the budget process started late in the summer of 2007, and there was pressure to get it all out of the way by the end of the month.

Staff had sent a budget to council in January, calling for a tax increase of about six per cent, but they were able to get it down. At the same time, the budget contains provisions for enhanced services, including more police officers and 9- 1-1 call takers. He added the household organics program will be receiving more funding, increasing the amount of garbage being diverted from dumps. There will also be more paramedics and two additional ambulances.

Staff is already looking ahead to the 2009 budget, and pressures that will be faced with that. Macgregor said they are likely to include rising fuel costs, social and housing needs, and asset maintenance and replacement.

Regional Treasurer and Commissioner of Finance Lloyd Russell said the York is going to be collecting a little more than $701 million in taxes to finance the budget this year. He added the tax levy increases are likely to go down over the coming years, although he was a little guarded with that prediction.

"We're always somewhat cautious in putting them forward because things do change," he remarked.

"This budget ensures that York Region remains one of the safest and most livable communities in Ontario in which to work and raise a family," commented Regional Chairman Bill Fisch. "I am pleased our 2008 operating budget offers a host of new initiatives for our residents and businesses across all nine of our municipalities while maintaining sound fiscal policies and directing GTA pooling savings back to our taxpayers."

The budget was passed unanimously, with Mayor Margaret Black voicing her approval.

"Staff did an amazing job," she declared, adding it's overwhelming how much has been included in the budget. "And we still have the grants from the province for roads, which has not been allocated."

Black said exact figures weren't in, but she said the provincial allocation for roads and bridges for the Region should amount to about $4.5 million.

Most of the debate at the council table Thursday dealt with what to do with the money saved from the pooling. Newmarket Councillor John Taylor wondered what portion of the money went to social services in York. "We have not isolated specific items," Russell told him.

Taylor argued a lot of that money should go toward social services. He suggested staff develop a plan to identify gaps and shortfalls in the system. He added they get asked about the pooling money a lot, and he would like to be able to clearly tell people what's being done with the money saved.

Other councillors expressed gratitude that the province is doing away with the pooling, but Fisch stressed this should not be viewed as a gift. He pointed out that York, over the years, parted with some $500 million that went to Toronto, with no clue on how it was spent. He called the pooling an "inequity."

But Newmarket Mayor Tony Van Bynen, chair of the finance and administration committee of Regional council, said a lot of the revenues this year was made possible by the province. "It was much needed and long-awaited relief," he remarked.

Vaughan Councillor Joyce Frustaglio also said she would like to see where the pooling money is going. She also called on the Region to be more proactive in setting aside funds for long-term infrastructure work.

Georgina Mayor Robert Grossi agreed the pooling money helped get the tax hike down, and he wanted residents to know that. He pointed out the economy is in trouble these days. "We're sputtering badly," he observed, adding they were calling for more money from residents who might have trouble sustaining their lifestyle. He also called for the federal and provincial governments to come together and find a way to get housing and child care funding taken off property taxes.

Fisch pointed out York's economy is wide spread, meaning it would get hit as hard as other areas of the country by an economic slump. But he agreed concern and fear is still there.