It’s unfortunate that this is such a hike, but not entirely unexpected if you’ve been watching. The PC’s changes drastically reduced funding for municipalities, leaving it up to them to sort out.
Beyond that, the costs to maintain infrastructure are enormous and most people don’t realize the scope of them.
I’m working on designing a road rehabilitation in Richmond Hill (0.7% property tax)- new sanitary sewer, new watermain, new sidewalks, new curb, and new asphalt. Generally you’re looking at this once in 50 years, with a second, smaller, revitalize at about the 25 year mark. This section of road is a residential area with about 100 houses. It’s estimated to cost $8-12mil.
Over 100 residents at 0.7%, with an average house price of $1.8mil and you get ~1.3mil per year of income. Without including treatment plants, repair fixes, hydro, or any other facility construction, it would take 8-10 years of those residents entire property tax to pay for that work.
It’s unfortunate that this is such a hike, but not entirely unexpected if you’ve been watching. The PC’s changes drastically reduced funding for municipalities, leaving it up to them to sort out.
Beyond that, the costs to maintain infrastructure are enormous and most people don’t realize the scope of them.
I’m working on designing a road rehabilitation in Richmond Hill (0.7% property tax)- new sanitary sewer, new watermain, new sidewalks, new curb, and new asphalt. Generally you’re looking at this once in 50 years, with a second, smaller, revitalize at about the 25 year mark. This section of road is a residential area with about 100 houses. It’s estimated to cost $8-12mil.
Over 100 residents at 0.7%, with an average house price of $1.8mil and you get ~1.3mil per year of income. Without including treatment plants, repair fixes, hydro, or any other facility construction, it would take 8-10 years of those residents entire property tax to pay for that work.
Wow, thanks for the write up and YIKES! It sounds like many Canadian’s are in for either a rude awakening or the collapse of their municipal services.