In 2012, the Town of Newmarket began working with Hemson Consulting Ltd. (Hemson) to complete a Capital Financing Strategy/Asset Replacement Fund (ARF) Study. As part of this study Hemson concluded that an annual tax increase of 3.2 per cent would be required to fully fund the replacement of assets until 2025.
The Town took a proactive approach to sustainability (aka saving for the future), by adopting an infrastructure levy. While the Town has been actively investing in the Asset Replacement Fund (ARF) for well over a decade, there is still a large gap between what is currently in the ARF and what is needed to maintain and replace the Town's nearly $1 billion worth of assets in the future. The reason there is such a large gap is mostly because municipal assets have very long life span - 40 years for buildings, 50 years for roads, 80 years for water mains and sewers. During that time inflation can more than double the construction costs of these assets.
Newmarket is not alone, many other municipalities like Mississauga and York Region are facing similar challenges and have also implemented infrastructure levies. The infrastructure levy is just one of the proactive measures the town is taking to ensure a sustainable future for the community.
Hemson Final Report (Part One - February 2013)
Hemson Final Report (Part Two - April 2014)
Hemson Draft Report (Part Two - November 2013)
Presentation to Newmarket Council (November 18, 2013)
Presentation to Newmarket Council (April 7, 2014)