Vaughan maintains low taxes with 2023 budget

​City’s contributions to the Hospital Precinct Development Levy fully paid off in 2022

During tonight’s Special Council Meeting, the City of Vaughan approved its 2023 Budget and 2024 to 2026 Financial Plan, reflecting the continued commitment to keep property tax rates low, respect taxpayers’ money and deliver quality public services that residents, businesses and visitors rely on each day.    

The 2023 Budget and 2024 to 2026 Financial Plan represent the City’s commitment to transparency, accountability and good governance. They balance investing in the community and maintaining financial sustainability, all while factoring in uncertainties of the current environment due to issues impacting the global supply chain, higher inflation and interest rates, and the potential of an economic slowdown. The approved budget and financial plan provide flexibility to respond to these challenges while planning for a gradual recovery from the global COVID-19 pandemic. 

The approved 2023 Budget outlines how Vaughan’s administration will move the city forward while delivering more than 200 programs and services effectively and efficiently. It also fulfills the City’s mission of Citizens First Through Service Excellence and balances the needs of managing unprecedented growth, investing in infrastructure and supporting economic development. 

Details are as follows: 

HOSPITAL PRECINCT DEVELOPMENT LEVY

In 2009, the City approved an $80-million funding strategy to bring a hospital to Vaughan. The strategy included a dedicated, accountable and temporary Vaughan Hospital Precinct Development Levy that helped lead to the construction and opening of the Cortellucci Vaughan Hospital. The temporary levy was not part of the City’s operations and was shown separately on property tax bills. 

These funds have gone directly to purchase the hospital precinct lands and prepare the site, which includes building sewers, roads and streetlights on the lands. In 2022, the levy was approximately $58 for the average home assessed at $950,000. 

The City decided to internally finance the land purchase and associated development costs because the financing costs were lower than the originally anticipated debt financing costs. Leveraging internal financing resulted in recovering costs over 13 years, which was significantly less than the initial 20-year recovery timeframe. The City’s contributions to the development of the hospital were fully paid off in 2022 and will no longer appear on property tax bills. 

PROPERTY TAX-SUPPORTED OPERATING BUDGET

The property tax-supported operating budget for 2023 is $355 million. This includes a 2.9 per cent property tax levy increase. With this, Vaughan still maintains one of the lowest and most competitive tax rates in the Greater Toronto Area. This operating budget funds the many programs and services families rely on, including garbage collection, snow clearing and fire prevention education. Twenty-eight cents of every property tax dollar stay with the City to provide these and many other services. The remainder is split between York Region (50 cents) and the local school boards (22 cents). In the context of the average $6,576 annual property tax bill (based on a home with an assessed value of $950,000), only $1,836 stays with the City. 

BILL 23 AND THE CITY OF VAUGHAN’S 2023 BUDGET

There have been media reports about potential future property tax increases ranging from 77 per cent to 88 per cent as a result of the Province of Ontario’s Bill 23, More Homes Built Faster Act, 2022. 

These media reports are based on a City staff report from Tuesday, Nov. 29, in response to the Ontario government’s Bill 23. Read the staff report here, starting on page 50. Vaughan's 2.9 per cent property tax rate increase for 2023 addresses existing and immediate operating pressures for the 2023 fiscal year. 

Since Vaughan Council began discussing Bill 23 in November, there have been repeated public statements by the Ontario government promising to make municipalities "whole" if cities cannot fund housing infrastructure and services due to Bill 23. City staff continue to monitor Bill 23's impacts on growth-related revenue moving forward, as this legislation will have longer-term effects on the size and timing of Vaughan's ability to implement critical city-building projects. 

For further questions regarding Bill 23, consider contacting your Member of Provincial Parliament (MPP), who is your representative in the provincial legislature. Use the Find my MPP tool on the Legislative Assembly’s website to find your riding, MPP’s profile and contact information. Enter your address in the search field and select “Find.” For the most accurate results, use your full address, including city and postal code. 

WATER, WASTEWATER AND STORMWATER BUDGET

The water, wastewater and stormwater budgets fund programs and services to ensure the City can provide safe drinking water, collect wastewater effectively, manage stormwater to mitigate flooding and save for future water, wastewater and stormwater infrastructure needs. The increase for the combined water and wastewater rate is $0.1602 per cubic metre, or 3.3 per cent and the average stormwater rate increase is 5.2 per cent. 

CAPITAL BUDGET

Finally, the capital budget was also presented with projects for 2023 and a forecast financial plan up to 2026. In 2023 a capital budget of $444.2 million will help the City grow sustainably and build and repair City infrastructure, including roads, pipes and buildings. 

The budget and financial plan outlines a variety of major infrastructure projects in 2023: 

• $118.9 million in capital projects related to Transportation and Mobility. This will support 62 projects to maintain existing road infrastructure and construct new roads to improve traffic flow, including extending Kirby Road and Bass Pro Mills Drive, reconstructing Portage Parkway, advancing the Vaughan Super Trail and much more.
• $53.9 million in capital projects related to City-Building. This will support 47 city-wide developments that encompass good urban design and community well-being, including further developing North Maple Regional Park, improvements to the Highway 7 culvert crossing and construction of the new West Woodbridge Library.
• $184.2 million in capital projects related to Environmental Stewardship. This will support 28 initiatives to foster a sustainable future and preserve the natural environment, including the Black Creek Channel Renewal and various stormwater management improvements throughout the city.
• $51.4 million for capital projects related to Active, Safe and Diverse Communities. This will support 82 initiatives aimed to help residents live active and healthy lives, including the multi-year Pedestrian and Cycling Infrastructure Implementation Program, the multi-year Erosion Control Program, the multi-year Parks Infrastructure Renewal Program, Library Capital Resource Purchases, and a New Fire Station 7-12, to name a few.
• $1.6 million in capital projects related to Good Governance. This will support 11 projects aimed at ensuring transparency and accountability, demonstrating value for money and showcasing Vaughan’s commitment to financial stewardship.
• $12.2 million for capital projects related to Citizen Experience. This will support 43 new projects, including City programs that demonstrate commitment to citizen service and transform services through technology. 
• $22 million in capital projects related to Operational Performance. This will support 302 projects to foster a culture of continuous improvement and data-driven innovation.
• $100,000 in capital projects for Staff Engagement. This will support three initiatives to empower staff, develop leadership skills and help manage performance. 

The 2023 Budget Book and 2023 to 2026 Financial Plan (PDF) further details how the City’s revenues and other sources of funds are allocated to programs, services, and maintaining and building infrastructure. 

For more information on the City’s budget, visit vaughan.ca/budget. 

For updates and news as they happen, subscribe to Vaughan News and follow the official corporate channels on Twitter, Facebook, Instagram and LinkedIn. 

QUOTES 

"We are focused on keeping property taxes low and respecting taxpayers' hard-earned money, all while investing in the critical services citizens rely on daily. Our approved 2023 Budget and 2024 to 2026 Financial Plan reflects this. Your opinions are appreciated and, as always, made the budget a stronger, more effective document that will benefit everyone. We can also take pride that the City’s contributions to the Hospital Precinct Development Levy is paid off in full – seven years earlier than anticipated. In 2022, the levy was approximately $58 for the average home in Vaughan. Citizens will no longer see this charge on their property tax bills. This means residents keep as much money as possible where it belongs: in their pockets.”

- Mayor Steven Del Duca 

“Vaughan’s approved 2023 Budget and 2024 to 2026 Financial Plan are built upon a foundation rooted in integrity, accountability and responsibility. The City’s budget is the result of our ongoing pursuit of new and innovative ways to get the job done effectively and efficiently while maintaining integrity and fiscal responsibility. Thank you to the dedicated staff from across the organization who contributed to creating this approved budget. It was truly a team effort. Under the leadership of our Finance department, we have created a budget and financial plan aimed at producing the best possible outcomes for Council-approved priorities that will benefit everyone who lives, works and plays in Vaughan.”

- City Manager Nick Spensieri 

“The City of Vaughan’s approved budget is citizen-focused, builds upon the City’s strategic priorities and delivers Service Excellence. The 2023 Budget and 2024 to 2026 Financial Plan outline how the administration will move the City forward, continue to deliver the high-quality programs and services citizens expect, and provide flexibility as Vaughan recovers from the impacts of the global COVID-19 pandemic. Citizens will also notice the Hospital Precinct Development Levy will no longer appear on property tax bills – this is because the City’s contributions to the development of the hospital were fully paid off in 2022!”

- Deputy City Manager of Corporate Services, City Treasurer and Chief Financial Officer Michael Coroneos 

QUICK FACTS

• The City of Vaughan approved its 2023 Budget and 2024 to 2026 Financial Plan during a Special Council Meeting on Wednesday, Feb. 8.
• Public consultation throughout the budget process was vital to the development of the 2023 Budget and 2024 to 2026 Financial Plan
• The City’s contributions to the development of Vaughan’s hospital were fully paid off in 2022. The Hospital Precinct Development Level will no longer appear on property tax bills.
• The City’s property tax-supported operating budget for 2023 is $355 million to fund the many programs and services families rely on, including garbage collection, snow clearing and fire prevention education.
• The City’s capital budget for 2023 is $444.2 million to help the City grow sustainably and build and repair City infrastructure, including roads, pipes and buildings. 

LEARN MORE

• City of Vaughan’s budget webpage.
• City of Vaughan’s 2023 Budget Book and 2024 to 2026 Financial Plan.

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