*EDIT* I was incorrect with the amount of the increase. It wasnt 4.56% it is 4.58% increase (3.58% plus 1% tax levy) I apologize for any confusion.
First off want to thank the many of you for sending your comments, questions and input for the 2011 budget. Over the past couple of weeks since posting the information online, I have received close to 100 questions from concerned taxpayers on the direction of where your tax dollars should be spent.
After a long meeting that went past midnight, the budget committee approved a budget increase of 3.58% for the 2011 year. This of course did not come easy as there was some spirited debate on a number of items including transit and the hospital expansion fund.
Once the capital and operating budgets were reviewed and staff recommendations approved or declined was complete and that we came to the 3.58% increase, council moved forward to the final section of the budget debates … the hospital expansion fund.
The proposal that was before us was to put $100,000 into this fund as a way of showing the provincial government that Milton is serious about getting MDH approved for expansion. This $100,000 allocation would be coming from the Milton Community Fund which in turn is funded from OLG Slot revenues. Many municipalities have made intentions known that they will do it, and this would show that we are indeed serious about improving the quality of healthcare services in Milton. Councillor Lunau put forward a motion at the end of the meeting saying that a 1% tax levy should be applied to Milton taxpayers and those funds be directed into the expansion fund.
The decision came down to either having $100,000 as a start up amount or having the proceeds of the tax levy (roughly $300,000) as the start up amount. Debate on the issue went back and forth with everyone on council agreeing we need to do something. So it was either taking some money from the OLG Slot revenues that Milton receives every year (not guaranteed by the way) or going to the taxpayers directly with the levy.
I brought up some concerns I had with the motion to my fellow members of council. Last year, council (of which I wasn’t a member) approved a motion stating that we would move forward in establishing this fund and from the discussion that was raised, council had the intentions of using property tax increases as a last resort. We are NOT at that last resort stage yet. We haven’t even started.
This council has only been elected since October 25th and in our first budget we are going to tell Milton residents that we are going to institute a 1% tax levy for this hospital expansion fund. No one will doubt that we need to do something and I think we are all unified in this town that the hospital is a major priority. Where we differ is the “how” and not the “why”
I mentioned to council that evening that I don’t feel comfortable voting for this extra tax increase without input from the community. As one councillor stated “we were elected to make these tough decisions” but I think when it comes to property tax increases, we need to consult the public before we take any more money out of their wallets.
If we remember back in the days of the previous election, it didn’t take much to get the Milton Sports Centre filled to capacity when we wanted to discuss Pristine Power and the proposed power plant in Milton. With the hospital and its expansion being tops of many Miltonians lists of priorities, I don’t think it would be hard to repeat that feat and once again fill the rooms of the Sports Centre to discuss options to fund this expansion fund.
In the end it came down to a close vote of 6-5 to approve the 1% tax levy. The final budget will come out to a 4.58% increase over last year. We have been given an assurance that these funds associated with the levy are to go towards that local portion and ONLY for that use.
This coming Monday, Milton Town Council will meet again to approve this budget and set the course for 2011. This past campaign, many candidates made promises to voters to gain support. Some of them wanted to keep taxes as low as possible so we can enjoy one of the lowest taxes in the GTA. Others said they will do their best to keep taxes in line with the rate of inflation. What was almost unanimous amongst the candidates and future elected representatives was the assurance of accountability. Myself included.
If you go back in this blog and throughout the election campaign, I stated that I wouldn’t support the 2011 budget if the increase was over the rate of inflation. Depending on what study you look at, inflation in Canada is roughly between 2% to 2.5% That’s where I would have felt comfortable in approving the budget this time around. The town portion of the budget only represents 29% of the tax bill so the rate of increase on your tax bill is roughly 2.2%
My quandary is with the increase in the rate of spending during a time in our economy where things are in a state of flux. Our neighbours to the south are spending TRILLIONS of dollars quarterly to help improve their economy with not much to show for it. It was important that at this point in our economy, we be careful as a municipality with spending. If our closest trading partner sneezes, chances are Canada might catch a cold. We have to be careful.
This coming Monday, as I did this past Monday night, I won’t be able to support our budget. It’s unfortunate that as a council we cannot be unanimous in approving it but for the reasons I stated above and in keeping with my commitment of accountability and making public input a priority, I won’t be able to stand in support of the 2011 Milton budget.
I thank you for your comments over the last couple of days and look forward to hearing more from you before Monday’s meeting. As always you can post comments here, or email me mike@mikecluett.ca or call (647) 888-9032.
I’m here to listen to you and what you have to say.
Comments
8 Responses to “2011 Budget Increase of 4.58%”
BRAVO Mike. Finally someone who stands behind their word!
As for the tax levy I’d like to have heard about it and studied the idea more before it went through. Which councillors voted for the tax levy? Was it a recorded vote? And who supported the budget?
Thanks Ryan.
A recorded vote was called for both the tax levy motion and for the budget vote as well. Both votes resulted in a 6-5 decision.
Voting FOR: Councillors Rick DiLorenzo, Zeeshan Hamid, Colin Best, Cindy Lunau, Sharon Barkley, Arnold Huffman
Voting AGAINST: Councillors Mike Cluett, Greg Nelson, Tony Lambert, Rick Malbouef & Mayor Gord Krantz
Thanks for sticking to your commitments/principles.
I think the 1% tax for the hospital is a cynical step to set a precedent for much bigger special hospital levies. As you say, 1% is only about $300k. We already had $100k in the bag. The hospital reserve will need $1.5 to $2 million per year and some think it should all be funded by special tax levies so that lower priority wants are not affected.
To salvage something, when the disposition of the $100k comes back to council it should also go to the hospital reserve rather than increase the community fund. Priorities.
Rick Says.
Mike as you know I made many motions to get the tax increase down to the rate of inflation, most were voted down. In the last election Milton voters voted for change what they got was more of the same. Rather than find ways to cut spending 6 members of this new council chose to continue with the tax and spend policies of the previous council. You made a good point Monday night which was not one member of council campaigned on the promise of ” Vote for me and the first thing I will do is raise your taxes 4.56% “. They all campaigned on controling spending and fiscal responsibility in order to get elected and then conviently forgot those promises a mere 3 months after getting elected. Is it any wonder people have such a low opinion of politicians. As for the hospital levy, as you said no one is opposed to the hospital expansion, where we differ is how it is paid for and who pays it. Health care falls under provincial jurisdiction, it is not the responibility of municipalities to fund health care services through property taxes, which are after tax dollars. Milton families already pay for health care services through income taxes and the health care premium tax they should not have to pay even more through property taxes. We as well as other municipalities have to make this very clear to the provincial politicians especially leading up to the upcoming provincial election. Council in my opinion made a very big mistake in approving this tax levy, it sends the wrong message to the province, by agreeing to tax home owners to pay for a health care service we have compromised our negociating position on health care funding, we blinked and I am afraid that we will pay dearly for that mistake.We should not have approved this extra tax without first consulting with our constituents.
Like you I will not be voting in support of this budget.
Mike
Congratulations on sticking to YOUR election promises. It is unfortunate that the vast majority of your colleagues are hiding behind the zero % increase from the Region. If the shoe was on the other foot I bet they would be claiming that it was the Region that caused higher taxes.
I heard an interesting comment from the City Manager of Toronto and I paraphrase – It is not up to Staff to set policy, Council sets policy, Staff implement that policy. Unless Council starts reviewing the detail of the Budget Milton will continue to follow Staff’s policy. We all gasped when Cllr Scherer said last year that Council had not looked at the detail of the budget for some time. This needs to be the last time that the comment holds true!
What will happen to the Lunau Levy if the unthinkable happens and MDH expansion does not get on the Provincial priority list?
Martin
Thanks Martin.
According to the motion the levy will go to the hospital expansion account and be used only for that purpose. Long term if we do not get approval from the provincial government and that account “sits” with money in it from that levy, someething will have to be done. My only thought would be if this is the case, to have that levy rebated BACK to taxpayers and NOT used for anything else.
Even if it was destined for use at the hospital I would support having it rebated back as that was the purpose it was implemented. Thats a discussion for the IF. Id prefer to talk about the WHEN the hospital is approved.
You are absolutly right about the council providing the town with direction on the budget. Thats the way it should be.
The town provides an opportunity for the public to have input on the budget process throughout the year. As Ive stated before now we have more “connected” and online councillors around the table, I hope we will be doing our best to get more “butts in the seats” and have a real conversation about the towns future. I know I will be doing that.
As for the levy I will be also pushing that its a ONE TIME levy only in future budgets and that the amount of 1% does not increase. There needs to be a discussion with tax payers to see if thats the course of action they want. In the coming years of growth and when the full year opertaing costs of the Arts Centre/Library/Sports Centre are fully realized and it will become very difficult for council to reign in future tax increases.
This is why it was important given the state of the economy NOW and what it will look like in the future that we did our best to hold the line.
I know that when this discussion with taxpayers happens you and hopefully many others will be at that table. Thanks for posting Martin.
Just say NO to the levy. Its the principle of the whole thing. This cant be brought up for the first time at 11PM of all things and then shoved through. This smells like a back room deal and I dont like it.
Give the public an opportunity to speak on this before it passes. I hope theres something that the councillors who voted against this (the Mayor included) can do on Monday. I know I’ll be there to see if democracy wins.
NO TO THE LEVY!
Thanks for the sensible critique.