 Keep in touch |
|
|
City considers two per cent tax levy on all homeowners
November 9th, 2007
- Brampton Guardian
Brampton councillors will consider a two per cent annual tax levy on all homeowners to help tackle the city's multi-million dollar needs to repair and replace aging infrastructure and deal with growth.
That's similar to the attention-grabbing five per cent tax levy Mississauga councillors just approved in principle in their city for its infrastructure deficit.
The levy-- Brampton city staff recommended two per cent per year-- would be in addition to annual tax increases, and tacked on to everyone's property tax bill every year for the next five to 10 years. The base tax increase city councillors are anticipating for 2008 is approximately 4.5 per cent.
In 10 years, a two per cent levy would generate approximately $240 million for the city, which is just about right considering Brampton's infrastructure deficit sits at $273 million over the next 10 years.
Brampton Mayor Susan Fennell said if the city decided to make a one-time move to add a higher levy-- for instance, a five per cent levy in 2008-- that would generate only $105 million over 10 years.
Tabled in September
She said the concept of a levy was put on the table in September, but not formalized because any change in taxation or funding at the upper levels of government would make it unnecessary, and the hope is that something might change before the city finalizes its 2008 budget.
"We are in no hurry, and we want to be doing these things after examining every conceivable option," Fennell said.
Brampton councillors gave staff the go-ahead to include a two per cent levy in next year's budget proposal, which is being drawn up now. The completed staff budget recommendation will be presented to and debated by council Jan. 28, 29 and 30.
Council will make a final decision on the budget Feb. 13.
Mississauga Mayor Hazel McCallion criticized the federal government for a mini-budget that cut taxes instead of sending financial aid to municipalities.
In contrast, Fennell criticized Dalton McGuinty's provincial Liberal government, saying Stephen Harper's Conservatives have done more for municipalities in the last two years than the federal government did in the last 14 years.
Markham's Frank Scarpitti and Richmond Hill's Dave Barrow said the surcharge takes pressure off Ottawa to help out. Finance Minister Jim Flaherty "is probably laughing all the way to the bank," Scarpitti said. Both mayors said tackling Ottawa as a united front may have been better than raising taxes.
Fennell agrees no one should be "let off the hook" when what is really needed is a major shift in the way taxpayers are taxed, and the provincial government has a lot of options at its disposal to improve the lot of municipalities, if the will is there.
She said Brampton is forced by the province to send $20 million a year to Toronto to cover the cost of social services, and if that "pooling" is stopped, the levy would not be necessary.
She said uploading of social service costs, allowing cities to cover the entire cost of new infrastructure using development charges, or a decision to use current census data instead of outdated numbers when divvying up the gas tax would all go a long way to helping municipalities deal with the cash crunch they are facing.
Some commitment
She said there has been some commitment by the province to upload social services, but in stages.
"If it's wrong, it's wrong. Change it immediately," she said.
She said she is not "getting on any campaign to fight". The issue gets confusing because there are "too many campaigns". Instead, she said there is really only one clear need:
"We need the proper alignment of taxpayers' money because municipalities need long-term, predictable, stable sources of funding that grow with the economy," she said.
She said property taxpayers shoulder too much of the tax burden, for things they should not be burdened with.
Brampton's infrastructure deficit is $273 million over the next 10 years. The city says it just doesn't have the cash to inject into much-needed projects including roads, transit and recreation.
Over the next decade, Brampton's infrastructure deficit includes:
* $30 million shortfall for recreation facilities, repairs and replacement;
* $62 million shortfall for road resurfacing. In the 2007 budget alone, there was a $4.7 million shortfall for road resurfacing on West Drive and 30 local streets, as well as some street lighting replacement on major roads, including Kennedy Road and Goreway Drive;
* $60 million shortfall for storm water retrofits;
* $31 million needed for municipal facilities, repairs and replacements, including an expansion of city hall and $500,000 to retrofit other properties and make them energy efficient.
In the 2007 budget, the city couldn't come up with the cash for several projects, including:
* its 1/3 share of the cost of AcceleRide Brampton Rapid Transit, which comes to $95 million;
* $10.3 million needed to build a new headquarters for Fire and Emergency Services.
The fire department outgrew the current building on Rutherford Road years ago, and this project has been on the books for some time, but has been put on the backburner in every budget.
|
|
|
|
Heart Lake & Brampton
