Tipping Point in Taxes

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Midlandcommunity.ca needs to interrupt your summer to ask for your support.  Please take a few minutes to read the following to see how and why we believe you should help if you can.

As we reported in our July 13 update to you, the consulting firm KPMG has been retained by the Town to undertake a study of Midland’s operations.  In their first two sessions with Council KPMG identified two groups of comparators that comprise 13 different municipalities including Midland.  According to KPMG, Midland is the only municipality among these 13 that combines high local taxes with low household incomes.

Among other areas, KPMG has identified the North Simcoe Sports and Recreation Centre (NSSRC) as one area for possible cost savings.  The 2010 gross operating expenses for the NSSRC were $ 2,762,597.  In 2010 Midland recovered just $ 790,215 of those costs in user fees, a bit less than 29%.

Midland taxpayers thus provided a subsidy of over 70% for users of this facility.  And who are the users?  The Free Press on July 12reported that half the users of the NSSRC do not live in Midland at all and so do not pay any taxes to our Town.

Midland taxpayers, many of whom make no regular use of the NSSRC, end up paying to provide deep subsidies not only for the regular NSSRC users who live in Midland but also for the other half who live elsewhere.

NSSRC users who benefit from deep subsidies are being mobilized to come out to make their views on any fee increase known to Midland Council.  Therefore, it is especially important to make sure Council sees and hears from all the Midland taxpayers who ultimately pay for these subsidies and for any other areas of excessive spending in our Town’s operations.

The recent KPMG interim report shows a majority of our Councilors still see a future with ongoing tax increases that equal or exceed inflation.  It is hard to believe that they continue to cling to this view when Midland is the only community that falls into the high-tax and low-income category out of KPMG’s 13 comparators.

Given this apparent softening of resolve, let’s all keep the following in mind:

– We are experiencing population growth of only 0.5% per year providing very little assessment growth.  Existing households and businesses are required to absorb most of the increases in Town spending.

– Existing real estate values in Midland are depressed relative to the rest of the County (second lowest behind Tay).

– The local tax charged in 2009 for a $300,000 new house was $1,500 in Bradford and Wasaga Beach, $2,400 in Collingwood and $3,000 in Midland.

– The ten years from 2000 to 2009 saw Midland taxes on the average household increase 82%.

If a majority of Councillors cannot see a problem here or are unwilling to try to fix it, then Midland’s next ten years cannot be much different from the last ten.  None of us should be happy either with the apparent lack of will to deal with these challenges or with the prospect of vocal interest groups resisting changes that can reduce tax increases for every Midland household.

Your attendance at the July 24th (7:00 pm) and August 16th (6:00 pm) special Council meetings is critical for helping Council & KPMG recognize that a lot of Midland’s citizens will not be content with ‘more of the same’.

Please get out to these meetings and let decision makers see and hear how you feel about your ability and appetite to pay more and more taxes.  Deputations from the public will be heard on August 16th and written submissions can be given to the Clerk until 12:00 noon that day.  Be sure your voice is heard and reflected in the final report KPMG will present on September 16th.

Please respond and let us know which meetings you will attend.

 

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