Another Sleight of Hand (Let's call a Spade a Shovel !)

Tax Increase Not as Much as Expected and City approves business tax break

When you read the above postings from the local media you are led to believe that the Residential Taxpayers are paying a mere 1.17% increase down from the earlier projection of two percent! This is the spin that is being put on the final tax rates by the Mayor in these two articles.

WHAT A CROCK OF SHIT !

• The Residential Class was projected to pay an additional $193,868 in taxes and this amounted to 2% of last years total tax paid by this class of $9,459,152.
• The Business Class was projected to pay an additional $100,608 in taxes and this amounted to 2% of last years total tax paid by this class of $4,687,226.
• Then the decision to lower the business /residential ratio from 3.02 where it landed in 2007 to a target of 2.70 was made and the manipulation ensued. The ultimate ratio approved was 2.75.
• The business class tax were decreased by $411,700 resulting in this class actually having a net decrease in taxes of $311,092 and this is a net percentage decrease of 6.6%
• The residential class tax was increased by $275,000 resulting in this class actually having a net increase in taxes of $468,868 and this is a net percentage increase of 4.95%

The Mayor's figure of only a 1.17% increase is what the average owner of a $287,000 average property would pay at these present tax rates. Sounds good until you realize that that same $287,000 property tax owner would have a decrease in taxes of 2.74% under the original 2% class tax increase proposal before the leveling of the play field manipulations were done. (Originally the average house in 2007 was projected to pay $646.44 in taxes and the final rate will have him pay 672.44 which is a $26 difference. This compares to the 2006 average taxes of $664.68 for the average home.

No matter what way you look at it the 1.17% increase is misleading. The residential class is paying 4.95% more this year and that does not include the increase in fire rates.

I have no problem in trying to lower the taxes of business but not at the expense of the residential taxpayer. This council could have made these changes at NO cost to the residential taxpayer by simply digging into last years unannounced surplus estimated at $700,000 which will be at least $469,400 even after they already grabbed $ $230,600 to pay for the OCP review this year.

The bottom line is that each average household has been assessed 1 Case of Beer (value $25) and the average business has been credited with 12 cases of beer and the big bank at the corner will each receive 55 cases of beer. Lot of beer changing hands.