A long term planning document approved by South Stormont’s council, if followed, will see a planned tax increase for residents ranging between 5.4 and 6.5 per cent per year for the next 10 years. Additionally, water/wastewater users will see a rate increase of between 8.3 and 10.1 per cent per year, over the next 10 years.
Those increases are based on a 73 page report approved at a special council meeting July 23. The report looked at the long term capital needs of South Stormont, along with growth projections, to plot four scenarios for this council, and future councils, to follow. Those scenarios looked at the high expectations of new development, as well as the potential for stagnant funding from upper levels of government and inflation. It is a robust document, and there is nothing wrong with having as data for considering any budgetary decisions. Where this falls short is with council for voting to adopt this report as its road map for future decision making. This planning document is highly speculative the further into the future it goes.
Furthermore, the numeric gymnastics required to make the long term outlook for South Stormont residents feel anything but bleak is astounding. The report compares the increase in property tax and water/wastewater rates as a percentage of projected household income growth to lower the high numbers to a manageable range of between two and three per cent. These exercise elevates financial bafflegab to new heights.
Municipal governments, including South Stormont, already have long term planning systems in place. The province mandated all municipalities implement an asset management system. This system lists every road, bridge and building; and every spare nut, bolt, and screw, that a municipality owns. It tracks the value, replacement cost, and lifespan of that item. This system already informs councils of what capital projects are needed and where taxation should be focused. South Stormont’s exercise and projections place that township on the path of high taxes and less localized decision making each year at budget time.
Tying council to this document forces current and future councils to essentially follow the plan. Any deviation will raise questions. New and creative ideas to keep tax increases manageable, and still spend on the capital and day-to-day needs will be stifled – as will the need of council and staff to consider cutting costs rather than raise taxes.
It is well documented that municipalities outside of Toronto are not well funded by the provincial and federal governments – that needs to change. Regardless of that, South Stormont committing to a 10 year plan may sound like good governance, but it is not. It discourages new ideas and fresh approaches to solving problems. It removes control from elected officials and embeds high tax increases few can afford. This model should not be followed by other municipal governments.