More tax increases coming for Milton

I was having a coffee at Tim Horton’s recently when a self professed “old timer” in Milton walked up to me to say hello.  Apparently he remembered me from the campaign way back in 2006 and he wanted to say hello.  In his hand was last Wednesday’s edition of the Champion with the headline “HEFTY TAX HIKE COULD BE COMING!”

At last Monday’s council meeting, Town Staff put forward their recommendation for a close to 10% increase in taxes to cover “needed” expenditures for the fiscal year 2009.  As its been said here on this blog, here we go again.

We talked about the same things last year.  Town Staff recommended close to an 8% increase and we came out with less than that but still a pretty hefty increase of around 6%.  Looks like history is repeating itself or as a neighbour mentioned, broken record. 

Now this increase isn’t written in stone.  Council still has to have some public meetings to discuss these recommendations and pass the final budget in December of this year.  Just like the gentleman I spoke with at Tim Horton’s said, and many other conversations with other Miltonians I have had over the last couple of years…when is it all going to end?

Looking back on the people who ran for council back in 2006, there were many people who ended up being elected saying that they would do their “best” to keep Milton taxes low.  Judging from the responses we heard at the council meeting, it seems those individuals should check their campaign literature, as well as their constituents.  Last years budget meeting was long on the wind and short on the “doing their best” to keep taxes low.

I’m not saying we shouldn’t have an increase.  This town is growing rapidly and needs funds to keep up with the demands for infrastructure and programs.  I’m not saying the town should never increase taxes.  But after last years increase of over 6% (1% of that ended up being the equivalent of their pay increase, after only a year on the job) you would think they might have done some “forward” thinking for the future.

The mindset of the municipal government seems to be year to year instead of long term.  Can they honestly justify last years increase coupled with potentially this years increase and say that its a good thing?

No one spoke out at the meeting about the increase but they did make some comments to the Champion afterwards.  Ward 4 Councillor Wendy Schau, who has in the past voted for many increases (including salary) said the increase “should be avoided, it at all possible.”  Should be avoided?  Avoided like the plague mind you…strong words indeed from Councillor Schau (sarcasm intended)

Wheres the leadership on council?  Oh ya, I forgot, its not an election year.

Ward 3 Councillor Jan Mowbray was non committal on what to do with the increase.  As the time draws closer she stated that she’ll do her homework on the numbers.  She did make mention that the tax increase “seems high.” 

Outside of the comment from the Mayor, we havent heard from many of the councillors on this.  I know its the summer and so far its only a recommendation of an increase by town staff but even THEY have to see that people are going to start to get frustrated.  The town seems to be spending money like drunken sailors and there doesnt seem to be any benefits coming from it.  Three million dollars on new buses for our transit system when many of them are riding empty most of the day.  Did we REALLY need to spend that money NOW?  Could we have gotten by on the smaller buses until demand began to outgrow the supply?

The Town of Milton ran a contest several months ago about the new transit buses.  It was find a bus and take a picture of it (or something like that) and subit to the town and win a prize.  I would say it would be harder contest if you would take a picture of a Milton Transit bus with ANY passengers on it and win a prize.

Stay tuned to my blog for more information on when public meetings are to be held on the budget process.  Although many of you have told me this would be an exercise in futility, I would suggest you contact your local councillor and let them know that more increases just wont do.  As always, they will come out and say its “only going to be $ x dollars more per year.”  Add that x with last years x and you get a much higher number.

If they could come to us with a reasonable increase, it would be easier to take.  An increase comparable with todays rate of inflation will be a lot more paletable to taxpayers.  Instead they see money being thrown around with no long term vision to the future.  I know this years budget is very important, especially as the town grows.  Anyone who has ever talked with a financial advisor knows that you have to keep an eye to the future and the impacts of the decisions you make now.  It doesnt seem like that thought is on the radar whatsoever.

But when the Town asks for 11 and gets 6, you can almost assume our spendaholics on council will find some justification for at least another 6% or more. 

Here’s the article from the Champion.

Hefty tax hike could be coming

Municipal taxes could be going up 10 per cent

Melanie Hennessey

Published on Jul 23, 2008

Miltonians could be facing a hefty 10-per cent Town tax increase next year, or $75 extra for urban homeowners and $63 for rural citizens.

At its meeting Monday night, town council directed staff to prepare the 2009 operating budget that shows a range of tax impacts from 2.2 to 9.8 per cent.

If the latter were ultimately approved at budget time in December, the Town portion of an urban resident’s tax bill would be $845.94 in 2009 — a $75.60 increase — while rural taxpayers would be forking over $704.03, or $62.93 more.

A report to council from Director of Corporate Services and Treasurer Linda Leeds explained that refinements would be made to the operating and capital budget estimates as budget preparation proceeds.

“However, at this point it would be unreasonable to assume that there would be no tax increase for 2009 without impacting the current level of services and programs across Town,” the report states.

The potential 9.8 per cent increase consists of a 5.66 per cent hike to accommodate existing Town service levels and base budget operational needs, a 2.04 per cent increase to fund the operating costs for the new branch library and up to 2.1 per cent extra to cover the potential loss of a provincial grant.

While nobody on council expressed his or her opinion regarding the possible tax hike at Monday night’s meeting, a few members took the time to share their thoughts with the Champion yesterday, like Mayor Gord Krantz.

“There’s no way, regardless of what’s in the budget, that I would remotely consider supporting an increase of that amount,” he said. “You really do have to separate out the wants and the needs.”

Krantz also said he’s concerned with the cumulative effect local, regional and provincial taxes have.

“I know what they do to the economy and I know what they do to people on fixed incomes,” he said.

Ward 4 Councillor Wendy Schau said she thinks a 9.8 per cent increase “should be avoided, if at all possible.”

“I expect it will be lower. Staff has been good in the past at looking for ways to make it lower,” she said.

She noted her philosophy has always been that the rate of taxation should be what’s needed to provide a good quality of life for local residents.

Meanwhile, Ward 3 Councillor Jan Mowbray didn’t take a firm position for or against the potential increase.

“At this point, it (9.8 per cent) certainly looks high,” she said.

She explained that when the budget comes forward this fall, she’ll do her homework on the numbers and vote in favour of “whatever I see as a sound-based budget.”

During Monday night’s meeting, council heard from local resident Marshall Horner, who once again spoke to the importance of adequately funding the fire department in the budget.

Ward 2 Councillor Greg Nelson also made a fire department budget suggestion to levy a fine against those who have unauthorized open-air fires (without a permit) after the first violation, instead of just issuing a warning.

Schau questioned if the Town is developing policies to reduce fuel use, since fuel costs are increasing.

Leeds said a fuel services review is underway to look at alternatives and ways to reduce the reliance on fuel.

Fellow Ward 4 Councillor Paul Scherer asked if staff has requested that the library board look at ways to reduce its operating costs for the new branch, to which Leeds said no.

She pointed out the library operating budget has already been reduced over what was originally proposed.

Over the next few months, Town staff will be preparing the detailed estimates for the operating and capital budgets.

Budget packages will be distributed to the budget committee in November, with deliberations and council approval taking place in December.

Melanie Hennessey can be reached at mhennessey@miltoncanadianchampion.com.