To the editor,
Many in our community believe that taxation levels have ballooned out of control, while many on city council congratulate themselves on “containing” past tax increases at or close to inflationary levels. Who is correct?
Over the past five years, there has been an unprecedented level of support provided to the city. For example: the homes for the aged, operated by the City of Thunder Bay, had an annual operating deficit of approximately $4.5 million per year.
Since plans to construct 300 new Long-Term Care Beds began, the City’s operating deficit has been covered. But city council had already borrowed $44 million to build a new long-term care home. That home was never built and much of that money has been spent.
The city has received approximately $2 million annually for gas tax rebate; they have had other costs covered by other levels of government including land ambulance resulting in additional savings for the city.
And the city also received millions of dollars for road/bridge work, meaning many of these projects that have been undertaken, were possible because of other funding, not because the city was keeping your taxes low.
So during this time, our city was saving at least $7 million annually. Yet instead of a tax freeze or even a tax reduction, taxes went up.
No city can be all things to all people but every city can follow a plan of controlling spending. Being efficient, and keeping taxes at a level that keeps life affordable, also allows business to stay competitive. Businesses may not locate here if the tax burden is too high.
What no one has discussed is the possibility that this financial support by other governments could decrease. Or just as troubling, what if TbayTel is not able to provide the yearly windfall that council depends on to meet their spending?
A large amount of funds will be needed to meet the infrastructure needs of the city. Northwood alone will likely be in the area of $15 million. We also face an environmental clean-up in the harbour that could cost the city $17 million and perhaps millions more. Taxation/spending has not been a large part of this campaign. I think it should be.
Taxes are a necessary part of governance but they must never be the answer to a spending problem. The only alternative to getting our spending under control is to continue as we have done. I do not believe many struggling families would support that.
Jim Mauro
Candidate for Council
Northwood
