2022 Fiscal Strategy
Newmarket – As part of the 2022 budget, Regional Council adopted an updated fiscal strategy and long-term debt management plan.
First Introduced in 2014, York Region’s fiscal strategy is updated annually as part of the budget process. It assists the Region to achieve long-term financial sustainability while balancing current and future needs. With careful management, by the end of 2021 the Region is expected to have more than $3.8 billion in reserves and its outstanding debt will have fallen to $2.6 billion.
Financial sustainability means the Region can keep the cost of growth affordable while maintaining its existing infrastructure in a state of good repair. It also means having financial flexibility to respond effectively to unforeseeable events, such as the COVID-19 pandemic.
There are three guiding pillars of York Region’s Fiscal Strategy:
- Managing the capital plan
- Balancing the proceeds of growth (development charges) with the costs of infrastructure to enable growth
- Development Charges are the main source of funding for growth-related projects, however, portions of projects benefiting existing residents cannot be paid for by Development Charges
- Under the amended Provincial Growth plan for the Greater Golden Horseshoe, York Region must plan to accommodate 2.02 million residents and 990,000 jobs by 2051
- Debt management
- Financing capital infrastructure investments when the revenues to pay for the investment come later
Regional debt is repaid over time by an identified source, primarily Development Charges
- Financing capital infrastructure investments when the revenues to pay for the investment come later
- Reserve management
- Building reserves for future needs helps ensure future generations are not left with high debt levels and crumbling infrastructure
- Planning for long-term asset replacement requires calculations for annual contributions required
- To ensure an appropriate amount is contributed, asset management needs are reviewed and updated annually to incorporate the latest information on their condition
The 10-year capital plan includes $1.12 billion for York Region’s portion of the Yonge North Subway Extension (YNSE) construction. Financing the growth-related contribution to the YNSE would require additional debt issuance to bridge the gap between when the contributions are needed, and the associated revenues received. With the cost and timing of the YNSE becoming more certain within the next few years, a refined funding strategy, which involves a careful balancing of available revenues and timing of spending on the YNSE and other Regional capital priorities, could help fund the Region’s capital in a more financially sustainable manner.
The fiscal strategy significantly enhances the Region’s financial sustainability. In 2021, S&P Global Ratings upgraded its rating of the Region’s debt to AAA from AA+, with a stable outlook, while Moody’s Investors Service re-affirmed its Aaa credit rating for the Region. These are the highest ratings possible, and allow the Region and our nine cities and towns access to capital markets and finance debt at the lowest possible cost.
The Regional Municipality of York consists of nine local cities and towns and provides a variety of programs and services to 1.2 million residents and 54,000 businesses with 650,000 employees. More information about the Region’s key service areas is available at york.ca/regionalservices
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Media Contact:
Barbara Schnier, Corporate Communications, The Regional Municipality of York
1-877-464-9675, ext. 71237
905-505-5775
@email
