Financial Plan Warns of Tax Hikes - Committee of the Whole Meeting - Wednesday, March 4, 2026 - 9:30 a.m. - City of Richmond Hill

Richmond Hill City Council received a comprehensive Financial Master Plan warning of significant property tax pressures ahead. The city faces a $2.1 billion capital program over the next decade—three to four times historical spending levels—requiring debt financing for the first time and potential tax increases from the current 2.5% average to 7.4% in the near term. Council also heard updates from the Toronto and Region Conservation Authority on environmental projects and discussed infrastructure challenges including trail signage, invasive species management, and park access issues.

Topics Discussed

FINANCIAL MASTER PLAN REVEALS MAJOR TAX PRESSURES

Himson Consulting presented a Financial Master Plan showing the city faces unprecedented financial challenges. The city's planned $2.1 billion capital program from 2027-2035 is "three to four times what you've been spending over the last 5 years," according to consultant Craig Benning. Historic annual spending averaged $60 million; planned spending will exceed $200 million annually.

The plan projects tax rate increases of 7.4% over five years and 4.5% over ten years—significantly higher than the historical 2.5% average. Benning warned that maintaining a 1% real increase would create "a funding gap of about 350 to 400 million" requiring project deferrals.

Councillor Davidson raised affordability concerns: "I'm already seeing foreclosures in my neighborhood where not only can people not afford their mortgages, they can't, you know, to add taxes on top of that."

Mayor West called property tax "the most regressive form of taxation" and noted that development charge revenues are now "15 to 20 or 25% lower than it would have been even 5 years ago" due to legislative changes.

DEBT FINANCING RECOMMENDED FOR FIRST TIME

The Financial Master Plan recommends Richmond Hill use debt financing for major capital projects, marking a significant policy shift for a city that has maintained zero debt until this year. The city would remain "well below" the 10% self-imposed debt limit and 25% provincial limit.

Treasurer Gigi Lee emphasized that "no specific percentage increase is being proposed today" and the plan serves as "a guiding framework for future budget, financial planning and policy setting purposes."

The plan also recommends gradually increasing the Capital Asset Strategy levy from 1.5% to potentially 3% over time. Comparable municipalities like Markham already charge 3%, while Oakville—which started its asset levy in 1996—charges 1.1% but has built substantial reserves over 30 years.

TRCA PARTNERSHIP UPDATES ON ENVIRONMENTAL PROJECTS

The Toronto and Region Conservation Authority presented updates on projects in Richmond Hill. Daryl Gray and Dr. Victoria Konowski outlined work including woodland restoration at David Dunlop Park, invasive species management (1.4 hectares of phragmites removal), and stream restoration on Taparoski Creek.

TRCA is updating both Humber and Rouge River watershed plans, with public engagement sessions beginning in late 2025. The organization manages 600 hectares in the Oakridges Corridor Conservation Reserve and operates the Lake St. George Field Center, which serves 5,500 people annually.

Mayor West noted recognition from "Dr. David Suzuki and Dr. Tara Cullis of the David Suzuki Foundation" during a weekend visit: "I was talking to Dr. Suzuki for a bit and he seemed quite impressed with the work that we're doing and nothing makes me more proud to know that we're being good stewards of our natural environment."

TRAIL ACCESS AND PARK MANAGEMENT CHALLENGES

Multiple councillors raised concerns about trail signage, parking, and public access at conservation areas. Residents reported getting lost on unmarked trails at Oakridges Corridor Park, with one resident noting "we lost our kids" due to numerous informal paths.

Bond Lake faces heavy usage with inadequate parking, causing people to park at distant plazas. Councillor Davidson noted safety concerns including "firecrackers, the loose dogs" and unauthorized fires. TRCA confirmed they manage but don't own the land, requiring provincial resources to add infrastructure.

Swan Lake remains closed for general public hiking, with TRCA prioritizing school group programming. Staff indicated public access may resume "in the next year or two" but "probably not in the real short term."

TREE REMOVAL CONCERNS AT DDO PARK

Councillor Shu raised resident concerns about tree removal at DDO Park, which some described as "deforestation." TRCA confirmed woodland restoration work is underway, with some tree removal necessary for restoration and erosion management.

Mayor West clarified that DDO Park "was a farm and had almost no trees" initially, and current trees represent "plantation style planting which is exactly the kind of thing we don't want—that's not a natural forest and it isn't resilient." He emphasized "net new areas of forestation have been significant."

Council supported involving residents in tree planting efforts, with Mayor West noting "it really gives people a sense of like I planted that tree and I am going to protect it."

Motions

PASSED: - Motion to receive TRCA presentation with thanks - Motion to receive and adopt Financial Master Plan (File: SRCFS 262 - City of Richmond Hill Financial Master Plan) as a guiding framework for future budget and financial planning purposes - Approval of agenda items 11.1 through 11.5 and 11.7

Attendees

• Mayor David West
• Deputy Mayor Carmine Perrelli (referenced as Deputy Mayor Chen in some sections)
• Regional Councillor Jodi Power
• Councillor Davidson
• Councillor Shu
• Councillor Leo
• Councillor Thompson
• Councillor DePalo (Budget Chair)

Staff Present: - Gigi Lee, Treasurer/Director - Jeremy Warrenuk (staff member working with residents)

Presenters: - Daryl Gray, Director of Education and Training, TRCA - Dr. Victoria Konowski, Senior Manager, Government and Community Relations, TRCA - Craig Benning, Himson Consulting