The population of Midland, from which the Town receives its tax revenues, is characterized by two factors:
- Low average household income, and
- Flat population growth
Inflation aside, there has been almost no increase in the ability of the people of Midland to pay more taxes in almost a decade. Keeping taxes down to help low-income homeowners keep their homes is essential.
Flying in the face of
that fact is that our tax bills have increased over 100% since 2000. The tax
growth stems from past Councils not managing wage growth and adding new
services without a financial plan. One example is the NSSRC - an excellent
facility providing needed services to many in our area. Its fiscal reality is that it requires a $1.4
million annual subsidy from taxpayers for its operations and capital. Midland,
like every householder, has to balance its income
with its costs.
So, how do we get to a
better financial place? It is first important to recognize that we have spent
decades getting into this situation. It
will take time
to get us out. Also, Midland is not in
“dire straits” - we do not need knee jerk solutions. We need to build on our
reasonably healthy local economy and take advantage of the opportunities to
realign municipal services to decrease our costs and taxes.The first step (which has already started) is to implement operational changes identified in the KPMG report that will save money while preserving our service levels. 60 such items were identified that can save us $1-2 million per year. Opportunities include consolidating internal works operations or consolidated billing with MPUC. This can be done without laying off staff.
The second step (which has already started) is to grow our local economy and, with it, the tax base. We have:
- Launched the Economic Development Corporation of North Simcoe, our arms length agency devoted to building our North Simcoe economy
- Started to streamline services at our Town Hall under our new CAO, Carolyn Tripp
- Frozen Development Charges, signaling to companies and developers that we are open for business
- Maintained tax control, holding the rate of increase to less than inflation - in essence, reducing real taxes
We have started to turn the fiscal corner. There are many more opportunities ahead that, if implemented, will allow taxes to actually be reduced and services maintained. But it is not just about getting the budget right. I am committed to a balance between fiscal restraint and providing needed community services (e.g. library, recreation, affordable housing, social services) so that all citizens of Midland can enjoy being part of our great community.
2 comments:
Just a quick question as I am new to town. Does the Town of Midland have a board of directors or and sort of committee that works with the NSSRC? Is there any sort of accountability as to the revenues and expenses of the NSSRC? Has this deficit occurred every year since the NSSRC has been in operation? If so, why? Why has it taken until now to bring it to the spotlight? You say Midland is a $25 million corporation yet is bleeds over 5% of it's budget on one asset. And current council has an issue with policing and fire costs? This is something that should have been dealt with sooner, not later.
Trevor -
The NSSRC does not have a Board. It is part of the Parks Department, which is in turn is under council direction. The financial information is published annually in the Town budget and financial reports. The current council is the first (that I am aware of) that has brought the impact to light. Most quick solutions are unpalatable to the current council - no one wants to turn off the lights. That said, there must be operational changes. Settling the debt taken on by a previous council is a matter that will take time.
Fire and police costs are a very complex areas affected by legislation and unions. If you wish to discuss further, let me know: 526-4275 x2204.
Gord
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