At the current and forecasted tax rate citizen sees taxes doubling in 20 years - he doesn't expect his pension income to double over that period of time.

TO: opinionandcommentBurlington  Community and Corporate Standing Committee

FROM: Tom Muir

Subject: City Budget 2016

 

Tom Muir wasn’t able to get to the Standing committee and his schedule didn’t allow him to get to the one public meeting held to “inform” the public abouit the contents of the Operating budget.  So he took to the media that is open to every opinion out there and sent the following to the Clerk of the Standing committee to have his comments put on the record.  Council tends not to listen to Tom Muir.
Councillors;

Since residents did not enjoy city public engagement on the budget, but have just been informed of spending and taxing plans, I have had to spend significant time finding a focus of my concerns.

It’s far to much to cover all the details, however, the big picture over the 20 year forecast is of particular note and concern to me.

1. The compounded average tax rate increases will double the tax take before the forecast period of 20 years is elapsed. Use the rule of 72 to figure that out. The average tax rate increase over the entire period is 3.62% and this leads to the doubling over 20 years.

Using the example bungalow residence in the budget document, the city tax take will go from $1415 to $2854.

If the other tiers of the total tax burden go up as well, the total tax bill could go from $3410 to $6878.

I have to ask you to ask what residents and businessmen think about that exponential curve trend upwards of this tax burden?

Can business double the price for goods and services over the same time period?

I hope your net income is increasing by more than 4% a year for the next 20. Mine is not.

Is this really raising taxes in an affordable manner?

This is really inflationary, in fact, and is shifting income from residents and business to the city for them to spend.

It seems like Council isn’t really thinking about this cumulative trend, in and of itself, and the consequences, at all.
No comment or request in the budget papers that I saw.

And residents were not asked what they thought, they were not “engaged”, just “informed” – this is what we are doing and here’s the tax take.

I would like to see Council pay a lot of attention to this trend. We need Council to tell the Managers to find the cuts needed to shave this to the inflation rate. And don’t tell me there’s no fat to be found.

Tell them a doubling of city taxes over the next 20 years is not to be tolerated.

2. Regarding the 2015 surplus reported, this $4.75 million is 3.23% of the net tax levy of almost $147 million. Taking $3 million of this and subtracting it from the tax levy, would bring the increase down to about the 2% inflation the city claims.

From the of view of the residents and business people, adding all of this to reserves is akin to adding more fat to the city finances. We don’t need fat there, as the reserves look fat as they are.

I see no explanation of some disaster lurking.

The 20 year trend of exponential tax increases that double the tax take, also has fat, for sure, somewhere, but while there are certainly some Councilor requests for amendments and some cost cutting, overall Council doesn’t appear to have asked Management to go find sufficient cuts needed to stay within inflation.

Here’s another pot of money, paid last year by residents, but not spent, that I am sure residents would agree could help reduce this years increase to something more like the “affordable” the city says is the number 1 goal – inflation.

Let’s see some talk and action about this, please.

I’m retired, and I have to live within my income, which certainly doesn’t increase by this much. I’m told business taxes are already high, so we are all in the same boat.

Management makes do with what Council tells them. It’s their job to find cuts. Tell them to.

Muir making a point

Aldershot resident Tom Muir is usually direct, at times abrasive and always looking for clear answers.

When I worked in government, that’s how things were done, just find the cuts, and there were and are no sacred cows.

Certainly, not everything in the budget is needed in the time stated. What’s done is a function of input and time. The first can be reduced some and the time to completion can be extended. Put off spending now to save some. Elementary things we are supposed to teach children about money management.

If the city wants affordable tax rates for residents and business then get going on dealing with the exponential trend that will never deliver such a thing – only a crunch.

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4 comments to At the current and forecasted tax rate citizen sees taxes doubling in 20 years – he doesn’t expect his pension income to double over that period of time.

  • Tom Muir

    I know everyone knows this, but comments and views here are no substitute for telling Council and Councilors what you want.

    Keep the comments coming, for people to see, but Councilors might not read stuff here, or admit reading them, but even if they do, it’s not “official” and in the record of proceedings of Council business.

    Then they have been told for real.

  • Gary Scobie

    I agree with Mr. Muir’s concerns about purposely budgeting for continual increases above inflation. It is not sustainable.

    I especially agree with his recommendation that $3 million of the 2015 surplus be used to reduce the 2016 budget to a 2% increase over 2015. I’m not sure why there is such a large surplus, but it becomes truly an overpayment of taxes for citizens. Every taxpayer expects a refund when they overpay their income tax. Citizens of Burlington should be treated no differently when it comes to municipal tax overpayment. It doesn’t need to be directly refunded, but it certainly should be used to reduce future taxes as Mr. Muir recommends.

  • B. Wayne

    Thank you Tom for shedding more light on our out of control taxes. There is only one taxpayer and right now he and she are getting hammered from every direction. Another budget surplus how about giving the citizens a break……an increase more inline with inflation. Better yet cut some costs, sell some assets and manage the books better.

  • Steve

    I have lived in Burlington since I was 7 years old. In a few more years when I retire I will likely not be able to afford to live here anymore. I commend Mr. Muir for speaking out, but unfortunately we keep voting the same people in. It’s our fault.