Saturday, April 26, 2008

Don Quixote still wants a 0% tax increase !!

Agenda Package - 9.93MB
Summary and responses to the public input session:
Tax Increase P.203

Mr. Spiers has requested a zero percent increase in taxes. In support of this position he has cited a number of individual items contained within the Financial Plan where he feels there is room for a reduction in expenses or an increase in revenues.
ANSWER: Planned moderate increases in taxation to fund service expansion and cost inflation reflect the real cost pressures and initiatives undertaken by the City.
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Don Quixote Reply to this Point:
In P.36-39 of above agenda package is my input.
Part of my reply was in regards to the point always brought up by some councillors that they have to at least have a raise each year to cover the cost of living increases etc:
Council may say that a 2.04% tax increase is necessary to ensure that we continue to look forward and not go back to the days of McGrath and the low tax hikes that caused us to fall so far behind in infrastructure maintenance and replacement. Get over it. That was 8 years ago and those small tax increases were funded by growth and a Provincial Government annual subsidy that was removed in the late 90's. It was replaced in the early 2000's by larger than anticipated Casino monies and lately by unexpected (at least to the CFO's if you believe how they budgeted for it) returns on short term investments, unbudgeted building fee revenue and a residential growth spurt that brought in massive sums of new tax money. Despite this growth that in the words of Coun. Cunningham should benefit the existing taxpayer , she don't see no change to her taxes. (Not mentioned was the 2003 tax revenue realized when the landing's 10 year tax holiday ended)
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What I pointed out was that the budget that they were attempting to pass with a 2.04% increase contained all the projects that were required for 2008, all service level adjustments and the COST of LIVING factor was built in to all the necessary line cost items. I then went on to show that there were costs that were overestimated (proved out by budget vs. actual tender) and revenues that were underestimated (Fine revenue, Hydro Grants in lieu) that could easily reduce this TAX REQUISITION to 0%.

We have had large increases in revenue put into this years budget including over $300,000 in building permit fees from a single new development, over $1,200,000 to account for return on short term investments, and large increases in excess of $600,000 in new growth tax revenues.

Growing the tax base should provide a larger revenue pool that should allow some tax relief. It was recently recognized in
Spallumcheen when they lowered their residential taxes.

A Quote from Spall's Mayor :
"It was “because of the growth that we had. We were able to pass some of that new growth savings back to the homeowners,” he said Tax rates decreased across the board but increased assessments will see the township increase revenue substantially from major industry (nearly $67,000), light industry (almost $22,000), and residential properties (about $30,000). “As long as we achieve a balance and we still offer the same level of services, then we can pass those savings onto the ratepayers and bring those taxes down,” said Hansma.

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