Existing taxpayers will be called upon to fund $3.4 million of the additional $5.5 million, with the remainder coming from a growth in the overall tax base.
As an existing taxpayer, I am relieved that $2.1 million in new taxes will be paid by non-existing taxpayers. And here I thought that existing taxpayers paid all the taxes. Stupid me.
It might be a small point to make but taxpayers cannot pay taxes until those taxpayers actually exist. I’m pretty sure about that.
The plan, if approved by council during budget deliberations, scheduled to begin on Tuesday, would net city coffers an extra $5.5 million over last year’s take. That’s a 3.45 per cent increase.
The problem here is the hidden spending. The costs that are stretched out over 20 years accruing hefty service fees over those 20 years. Debt Remember this from only a few days ago?
This is an election budget. Plain and simple. Councilors protecting their re-election prospects. It just keeps the status quo at City Hall. Just keeps the ponzi scheme known as the City of Thunder Bay alive for another year.
Most of the budget increase will be eaten up by the corresponding increase in the cost of running the city. Employee wages, benefits and material costs. Very little going toward infrastructure renewal.
As you can see from the BMA Study, the City of Thunder Bay asset consumption ratio is high when compared to other cities in Ontario. In other words, City of Thunder Bay assets are old and in need of renewal and replacement.
This is the financial corner that City administration has painted themselves into. If taxes were to be increased to properly address the infrastructure deficit, property owners would be looking at the 7.9% tax increase that the L.U. professors mentioned in their 200 page Chamber of Commerce report.
Of course raising taxes by 7.9% is political suicide so …….. nothing changes.
PS – Ian Angus is that last person on earth that I will ever look to for financial advice. Really.