Clarington Council yesterday announced it has approved the 2023 budget, with a 4.06 per cent increase to the municipal portion of the tax levy.
Clarington Financial Services staff in January has proposed a guidance of 3.75 per cent (see below) tax increase for 2023.
In 2022, Clarington has imposed a tax increase of just 1.99 per cent.
Oshawa has approved a 4.98 per cent increase, while Whitby and Durham Region propose a 6 per cent and 5 per cent cap on property tax increase respectively.
“I want to thank council and congratulate staff. A huge amount of work went into this budget. In this budget, we are enhancing levels of service while keeping the tax increase below the rate of inflation,” said Mayor Adrian Foster, in a statement.
It said for the Clarington portion of the tax bill, residents will pay approximately $65.04 more per year (or $5.42 more per month) on a property assessed at $400,000, determined by the Municipal Property Assessment Corporation (MPAC). Municipalities use the assessment values calculated by MPAC.
Of the 4.06 per cent Clarington levy increase, 1 per cent is for additional capital funding to close the infrastructure gap and better maintain and replace existing assets, and 0.3 per cent is for new debt servicing costs for local recreation facilities.
Inflationary Impact
The statement said Ontario faced a 6 per cent Consumer Price Index in December, indicating that inflation pressure is high. As a result, Clarington used the tax rate stabilization reserve, which comes from taxes that were levied in previous years, to lessen the inflationary impact on residents in 2023.
For Clarington residents, the property tax bill is composed of three parts, the municipal portion – approximately 33 per cent of the overall property tax bill – combined with the Region of Durham and the provincial education tax portions. A one per cent increase to the municipal levy equals approximately $681,742 in additional tax revenue for the municipality.
“In this year’s budget, we’ve taken steps forward to create efficiencies and save tax dollars, and we’ll be able to report on those savings next year,” said Mayor Foster.
Durham municipalities have warned that the development charge loses stemming from provincial Bill 23, are likely to be borne by residents.
The Clarington statement said the tax levy of $72.4 million funds the operating budget and capital investments made within the community. The municipality’s operating budget includes maintenance of roads, parks, community services, emergency and fire services, programs, and facilities. The capital investments include new equipment and much-needed repairs for Clarington infrastructure, including trails, bicycle lanes and improvements to the community halls.
“During uncertain economic times, staff have created a budget that continues to provide the levels of service and capital investments that residents have come to expect. However, as we exit the Covid pandemic and return to normal operations, the costs of providing those services have escalated, and we are utilizing the reserve funds to mitigate the impact on taxpayers,” said Trevor Pinn, Clarington Treasurer.
Budget Highlights:
- $8.3 million to be spent on roads, sidewalks, bicycle lanes and trails, of which $3.4 million will be for rural road resurfacing and $2.9 million is for pavement rehabilitation.
- $325,000 to protect the Camp 30 cafeteria building.
- A new Fire rescue vehicle, replacing an aerial Fire truck, a new snowplow, and several other vehicles and pieces of equipment.
- Design work for a new Operation Centre to meet the needs of a growing community.
- Park upgrades for Rhonda Park, Solina Park, Argent Park and Elephant Hill Park.
- Repairs to the pool deck in Diane Hamre Recreation Complex.
- Installation of electronic vehicle (EV) charging stations at five new locations.
- Accessibility upgrades for the grounds between the Sarah Jane Williams Heritage Centre and Waverley Place.
- Repairs and improvements to accessibility at various community buildings, including the Municipal Administrative Centre, Orono Town Hall, the Newcastle Community Hall, veterans square at the Municipal Administrative Centre, Tyrone Community Centre, Newtonville Community Hall and more.
- Climate change initiatives.
- New staff positions in several departments to support the growing municipality.
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