A Commentary by Doug Draper
For the first time in recent memory – and I can’t remember the last time – Niagara’s regional council is delivering homeowners a cut in their property taxes.
Here's our 18 bucks. Enjoy it. We may be paying for it big time in the next few years ahead.
That is right folks, for owners of an average home assessed at $210,000 a year, your property taxes will drop this year by slightly more than $18.00 for a total tax bill of about $1,320.
Some of the many regional councillors who pushed hard for the cut, including Bart Maves, one of the councillors for Niagara Falls, repeated what has become a mantra for him; than any money the government is holding in surplus belongs to the taxpayers and should be given back. Andy Petrowski, a councillor for St. Catharines, added at this March 4 council meeting, just minutes before the region’s budget for 2011 was approved, that he has always felt that ratepayers “do a better job of spending their money than governments do.”
Those messages may come across as very appealing, and many ratepayers across the region may argue that getting back something – even if it amounts to slightly less than a nickel a day – is better than being hit with a tax increase. And that may very well be cause for raising a few party balloons in the short-term. But what about the long-term?
What if next year there is no surplus of funding from the province to draw on and the region is faced with the same old issues around arbitrated salary increases and other costs it has no choice but to address every year. Given those realities, the regional government could be looking at a tax increase next year of something closer to six per cent, fears Welland regional councillor Cindy Forster.
Welland regional councillor Cindy Forster.
There is already word that the regional government can expect less than $1 million from the province this coming year in payments for downloaded services compared to the millions it has received in the year gone by, says Forster, and where is the money going to come from to cover that kind of a shortfall. Forster added that for the little bit of money taxpayers might individually get back this year, it might have been better to spend in on rent relief and other programs to help those among us who are suffering in poverty.
George Marshall, another regional councillor from Welland who voted against the budget, had this to say: “I think we could have used that money to help people who are most in need rather than give it back to people that own a half-a-million dollar house.”
Late this February, while the budget was being debated, Port Colborne Mayor Vance Badawey was quoted in local newspapers warning that the regional government may find itself “on the hook” next year for millions of dollars it can’t count on receiving from the province. That will possibly leave residents across Niagara reading headlines like the regional government is “talking about a six per cent increase.”
Indeed, one has to wonder if the way the regional government worked out this budget isn’t something akin to a person going through hard financial times raiding whatever retirement funds they’ve save just to have one more fling.
Just a few things to think about as we enjoy our $18 tax cut. Try not to spend it all in one place.
And as for that old line we’ve heard from mostly neo-conservative and libertarian politicians for some time now, that ratepayers can spend that money better than governments can, that may be true to a point. No one would argue that there aren’t areas, including the over use of consultants, the approval of unaffordable wages and benefits for public servants, etc., that could add up to a good deal of money can be saved. But do the powers that be at the region really want to deal with those – do they? – because we don’t seem to see a much will on the part of the politicians and senior staff at the region to want to deal with it so far.
Finally, and on a possibly more flippant note, have you ever spent time in a shopping mall paying close attention to what some of our fellow ratepayers are spending their money on? You might then wonder how much better off we might all be if government had some of that mind to improve our decaying infrastructure or build a good public transit system.
(Niagara At Large welcomes you to share your views below on this issue and to visit our site regularly at www.niagaraatlarge.com for more news and commentary on matters of interest and concern to residents in our greater Niagara region and beyond.)
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A fiscal conservative perspective would have this money set aside for the looming infrastructure deficit the region will be facing. This may be good politics but it is bad policy. You are quite right Doug in pointing out the reluctance of our politicos to tackle the real waste in the system, too high wages, abuse of discretionary spending on consultants and the inefficient democracy of over 125 politicians in Niagara.
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$18.00 per home owner really isn’t much, and won’t go a long way. If those funds were diverted to Food Banks and/or charities, they would have a significant impact. Food and fuel prices are rising, and people with limited resources wil continue to need the necessities of life.
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John you do have a degree of common sense missing in most Conservatives and I am beginning to admire your economic attitude. It seems Conservatives would abolish taxation completely and would live in a world of “Gated” communities, Private Police, Private Armies and Private Hospitals and completely insulated from any thought of those who are not as fortunate Economically or Health wise. A group where a “Creed of Greed” flourishes and to hell with those who are needy, wanting or sick.
Because without Taxation there are no Social programs or safety nets to protect against a rainy day. God Help these people for Greed is their ticket to wherever and nowhere.
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I just want to know who pays $1320 in total taxes on a $210,000 house. I don’t even have sewers and I pay about $3000 on a 32 x 26 foot house without a garage and only a carport!
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To say that ratepayers “do a better job of spending their money than governments do” is simply an empty slogan and not true. Governments, especially Regional and municipal governments, work very hard to spending wisely with lots of process for review. And yes, mistakes made, but it is not from a lack of careful consideration.
Ratepayers are buying SUV’s, homes they can ill afford, 2nd and 3rd televisions, and assorted needless “stuff” destined for a quick trip to the landfill. We are in debt up to our ears. At the end of last year, the average total debt per Canadian consumer, excluding mortgages, was $25,709, which was 5.6% greater than the previous year. And all this is in a country where we have chronically insufficient investment in helping people out of the cycle of increasing poverty.
But what really is most offensive in this is the notion that politicians represent ratepayers. They do not. They represent the public for the public good. There are no second class citizens in a democracy, and the public good needs first class politicians.
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Unfortunately, business interests (P3 hospitals etc.) have been trumping the public good. Too bad for Canada.
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There’s an old saying about the responsibility of municipal governments, the other three P’s – Planning, Plumbing and Policing. Of these three the Region has done a poor or inconsistent job. Planning – the province challenged the Region on their Official Plan at the OMB results pending. (topic for another day)
Plumbing- the Region is facing a huge shortfall in infrastructure spending to maintain the pipes and sewage treatment.
Policing- Costs are spiraling out of control mainly due to labour costs. (Doug has written extensively about this).
I don’t want the $18.00 back, I want the Regional Councilors to do their job and set this money aside for future use because I know that it will be needed. I certainly don’t want platitudes telling me I can spend money more wisely because I know that. I have to live within my means.
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From Doug Draper, the author of this piece, I wish to respond to the comment from Linda McKellar. Her comment is understandable given that I did not clarify that the $1,320 per year is only the regional portion of our property taxes. The other half, bringing the total bill for an average home to $2,640, goes to local municipalities and to school boards.
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All I get concerned is when these ideologues get to cutting taxes, is what services will next be cut to the bone, so we end up having to dig further into our own pockets to pay for services that used to be covered by taxes? This is not savings guys, except if you are rich!
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