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Municipal_Money

Feature Article November 6

Feature Article November 6, 2003

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Municipal MoneyTaxpayers see increases in assessments and increases in property taxes. Municipal councillors and officials see municipal bills to be paid and look for sources of money to pay them. The province looks for opportunities to download responsibilities and costs to the municipalities, but sends no money to pay for them. Even with this need unfilled, provincial taxes are cut. The province suggests that municipalities might become tax collectors for traditionally provincial taxes in order to pay their bills; the province could 'cut' those taxes.

A quick survey of local municipalities shows that they pay our bills with a combination of property taxes and non-tax revenue. Non-tax sources include user fees, service charges, provincial block grants, etc.

Property taxes make up variable proportions of the total municipal cash flows. Property taxes make up slightly less than half the total cash flow in Lanark Highlands, slightly less than half in Addington Highlands. Taxes pay about two-thirds of the bills for South Frontenac and taxes rise to three-quarters of the total flow in Central Frontenac.

None of five local municipalities reported any income in 2003 from grants for specific projects from either the provincial or the federal government; for some the lack of project grants extends back to amalgamation. Although grants for specific projects are awarded in our region to non-municipal agencies, municipalities seldom get them. Some municipalities cite the need for matching funds as a difficulty. However, the requirement for a specific target for the project, such as extracting the basic information to support a septic reinspection program, also seems to inhibit applications. No granting agencies will accept old-style 'make-work projects' for funding.

The structure of municipal governments may not be suited to generating and nurturing grant-funded projects aimed at rapidly changing process needs.

As more of our needs become associated with local processes, such as waste management, rather than classical municipal infrastructure, such as bridges and roads, we may need to consider new views of municipal funding, including temporary grants for targeted projects. If the province continues downloading service delivery, new approaches to funding need urgent consideration. Targeted projects also would require people to generate proposals and to oversee projects and report on them; roles not envisioned in classical municipal government. Currently such activities tend to be delegated either by the province or by municipalities, to separate agencies devoted to social services, health units, watershed conservation, etc. If these agencies are to serve the needs demanded by taxpayers from municipal governments, lines of responsibilities and of communication between the municipalities and these agencies must be clear and working. This will require higher priority by municipal councils.

With the participation of the Government of Canada