EDITORIAL:
The grass is yellower
by Brandon Mayer
A common topic of concern in this Township in the last several years is our municipal budget. Property tax increases here have been comparably higher than in some neighbouring municipalities, and there is often talk of projects we are behind on, such as maintenance of arenas, pools, and roads. The current council has been relatively open about these challenges, and they have often drawn a link between high tax increases and playing “catch up” following years of neglect. North Dundas is far from having a surplus of resources, but our money seems to be generally well tended, even if sometimes a lack of transparency comes into play. That’s a topic for another day.
I was quite surprised to learn recently that there is a municipality in Northern Ontario that makes North Dundas look like a goldmine. The Township of Fauquier-Strickland announced earlier this month that it will be suspending all municipal services. Completely out of reserve funds and trying to control over $2.5 million in operating deficits, officials in Fauquier-Strickland attempted to control their budget with service cuts and layoffs before reaching this final stage.
Rob Flack – Ontario’s Minister of Municipal Affairs and Housing – announced on July 10 that the provincial government would meet with council in Fauquier-Strickland on July 14. However, last week, officials from the struggling municipality reported that no changes resulted from the meeting. The fate of the municipality therefore remains unknown.
Budgets have many moving parts, but these parts generally fit into two groups – expenses and revenue. Expenses are very hard to cut back on in the current economy. Municipalities feel the impact of inflation just as much as individual households. In contrast, it’s not hard to increase revenue – all a council needs to do is approve a bylaw increasing taxes. In the case of Fauquier-Strickland, it is estimated that an increase of 190% to 230% would have been necessary to keep the municipality afloat. Unsurprisingly, that would have been extremely difficult – and in some cases impossible – for residents to bear.
I won’t pretend to know exactly how Fauquier-Strickland got to the point that it did, but I do have a theory. I think that various councils there, over the course of many years, were too eager to please. I think that as routine expenses came up, and costs continued to rise with inflation, officials likely caved to pressure to keep taxes low. If my theory is correct, it would have been a gradual process. Each year, council members likely voted to use up some reserve funds to keep taxes steady instead of increasing taxes at sustainable levels like they should have. It is also reported that the township has seen a gradual population decline over the years, which puts a much greater burden on the existing tax base.
My theory is only a theory – municipal budgets and council meeting minutes are public and anyone could investigate what really went on, but unfortunately this workload is outside the purview of a small town newspaper hundreds of kilometres away.
It is reported that officials in Fauquier-Strickland have been relying on credit to stay afloat. Last year, taxes were increased by 26% – but too late to make an impact. I didn’t even realize that municipalities were allowed to rely on credit. The federal government and provincial governments borrow heavily to the tune of billions of dollars – debt that will almost certainly not be paid off in the lifetime of anyone reading this. It’s common practice at those levels, but the standard is different for municipalities. It seems that even after red flagging their own situation to the provincial government, Fauquier-Strickland still fell through the cracks and managed to go down a rabbit hole that no municipality ever should.
Budgeting is very difficult, especially on a municipal scale. I don’t envy those who do that job here in North Dundas, but I also don’t think any council should ever get a free pass. Accountability is important. That said, the situation in Fauquier-Strickland has made me see our quaint little township in a different light. Yes, taxes have been increasing here at a higher rate than in some surrounding municipalities. The tax bill on my house has gone up about $700 in less than 4 years – that is quite a large jump. But gradual increases (even slightly steep ones) can be budgeted for, and are unfortunately a reality in the current economy. I would much rather budget for tax increases than suddenly see all municipal services suspended while our council mulls over the task of paying off $2.5 million in debt when their only source of revenue is me (and my neighbours).
At budget time each year, it is tradition for newspapers in the area – including the Times – to compare tax increases across various municipalities. North Dundas residents are often left feeling like the grass is greener on the other side. The situation in Fauquier-Strickland reminds us that there are places where the grass is yellower. It puts context to what council members say when discussing difficult budget decisions, and playing “catch up”. If it’s true that some previous councils here in North Dundas neglected facility maintenance, road improvements, salary and benefit increases (which are needed to retain quality staff), and other essentials, then it takes serious strength to be the scapegoat and increase taxes to make the budget work. It’s a self-sacrifice in a way – benefiting the township at the expense of one’s popularity.
Even though there is always room for improvement, I’m coming to realize that we are in better hands than we realize here in North Dundas. All the more reason to be proud of where we live.