The Taxing Question

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Letter to the Editor: May/12/2011:

“Do we set a budget target or not”? – That was the question deliberated by Council on Monday May 9th

Midland Town Council needs to provide guidance to Town staff before the end of June for the 2012 budget planning process. There are really three pieces to this process. First, what at a minimum, must the town provide in the way of services to the residents of Midland?  Second, what are the strategic imperatives going forward which require perhaps new or re-allocated resources, funding etc? Third, what is the budget target that we must set to achieve one and two of this process, with a keen eye on today’s economic realities?

We think it’s fair to say up front that town staff work diligently for the people of Midland and do a great job at meeting and often exceeding our needs/expectations. Everyone values the town staff and appreciate that services cost money, and there’s no such thing as a free lunch.

With that said, a few facts and trends:

1)   Between 2000-2009, Midland’s own taxes per household increased 80%, while CPI increased approximately 20% for this entire period

2)   Between 2000-2009, the Town’s full-time workforce increased by 44%

3)   Between 2000-2009, the Town’s payroll spending per household increased 92%, almost double in just nine years

4)   According to the 2006 Census data, Midland had a median individual income of $22,617, which is materially below the Simcoe County average of $27,838 and the Ontario average of $27,258.

5)   Midland’s median household income at $45,256 was also significantly below the County average of $62,328 and the Ontario average of $60,455.

6)   Midland’s population growth is up a mere 5% during 2000-2009 and the average household size (those living in the same home) has declined to 2.35 residents

7)   2011’s approved budget called for a taxation increase of approximately $750,000-

With this as a backdrop, coupled with the forecast that in ten years time, 52% of Midland’s residents will be 65 years young, we strongly suggest Town Council set and achieve a budget target that is in keeping with the above-mentioned trends and realities- namely, no tax increase in 2012.

At the Council meeting held this Monday, one Councilor characterized the setting of a budget target as “dumb” and another went on to say, “I won’t support a target”.  Yet without some direction from our elected Town officials about next year, how does the staff know whether to propose a 5% increase or a 5% decrease.

I’m reminded of what Kennedy once said, and we quote; “if not you, then who and if not now, then when”?

Roy Ellis and George Dixon on behalf of Midlandcommunity.ca

2 Comments on "The Taxing Question"

  1. Not supprised everything is going up except peoples wages, I dont think anything should be done with the Taxes. Its not in our budget, open your eyes Midland.
    The more tax per person, per household the less money people spend, because there is less. The end result will be a broke community. Open your eyes Midland wake up and smell the average……. Were not it….

  2. Ivan Garrison | June 17, 2011 at 12:28 pm | Reply

    Not setting budget objectives that attempt to maintain the status quo ( ie not increasing taxes) is irresponsible. In this economy and considering the trends elucidated by Roy Ellis and George Dixon above an attempt to contain spending and hold taxes where they are is blatantly obvious; not to do so will inevitably lead to dire economic consequences down the road. To avoid economic hardship for this community going forward a thorough analysis of the budget is appropriate,should be zero based and should review/re-assess all expenditures with the objective clearly understood to be the avoidance of increased taxes at all reasonable cost.

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