*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.
