By: Laura Steiner
I watched last night’s budget meeting for Milton Council via webcast. It appeared there were two different conversations going on. The early part of the meeting featured delegates talking of their concerns; everything from keeping transit routes in place (Route 62, and a potential replacement), and a creative solution regarding rural Internet.
That portion ended with a presentation from Commissioner of Finance Linda Leeds and her colleagues on the budget up for consideration. She outlined where the municipality stood with its books, and went through the decision packages where councillors had to choose to cut. Leeds took the opportunity to be blunt, leaving the impression that Council was approaching the point where either they would have to decide between cutting services, or increasing taxes to keep service levels the same.
There are some frightening numbers backing Leeds up. At a September council meeting a presentation revealed that by 2036, the municipality operating costs would rise to approximately $110 million or $550/ $100,000 on property taxes. There will be a total of $500 million that the Town is not able to fund through growth-related funding (Development charges). Currently, residential growth is outpacing business growth. If it continues, higher taxes are possible.
Some councillors understood. There was a realization that growth cannot fully pay for itself through the application of development charges (DC’s) alone. Comments made regarding the draining of a tax stabilization fund to keep taxes low, or the establishment of infrastructure reserves. For other councillors it appeared the wake-up call went unanswered. Their focus was to keep taxes low, because well… there’s an election coming. If there’s a sure way to lose an election, then it’s raising taxes.
That’s when the second conversation kicked off. What could be cut, in order to keep taxes low, and maybe save political futures. The result was a proposed budget featuring a likely tax increase of $19.64/$100,000 on the tax bill (2.72%). The hospital tax levy will be eliminated in favour of taking the money from the slots’ reserve. The budget could be ratified by council December 11, 2017.
There isn’t a person alive (myself included) who doesn’t want lower taxes. Here in Milton though, it seems like there’s a clock running on this. Low taxes, but for how long? And that’s a conversation worth having.
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