Feature Article January 15, 2004
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2004 Property Taxes - Another Large Increase?
Total residential assessments have increased by 14% in Central Frontenac. What will happen to property taxes in 2004? Can we expect a repeat of last years increase?
First, let's recall what happened in 2003. We were told that property taxes increased by 3.7%. But this was actually the tax rate increase, not the tax increase. Because property values had increased by about 10% (the total assessment increase for the Township, less new construction), the average owner paid about 14% more in property taxes. Where did this money go? By how much did each of the three groups sharing in our property taxes - the Township, the County and the Education Authority - increase taxes?
Both the County and the Education Authority increased taxes by less than 1% for the average taxpayer. They reduced their tax rates by 10.6% and 10.2%, respectively, to offset property value increases.
Council raised Township taxes by about 28% for the average taxpayer. Because of increased property values, this appeared as a 16.6% Township tax rate increase on our tax bills. These figures were overlooked until late in the year. It was more palatable to focus discussion on the 3.7% overall tax rate increase - a figure which, by itself, was not at all indicative of the effect of the Township tax increase on the property owner and did nothing to indicate who raised our taxes. And the serious issue of MPAC valuations, while clearly deserving the considerable attention it received, did provide a convenient distraction from this very large increase in Township spending.
What can we expect in 2004?
Changing property valuations affect the distribution of the tax burden among property owners, they do not affect the taxes paid by the average owner. While we must resolve any discrepancies in MPAC valuations, we must not let them distract us from closely monitoring Township spending in 2004.
We can commend the County and the Education authority for holding the line in 2003 and encourage them to give a repeat performance in 2004.
Unfortunately, our councilors do appear not to have been so diligent. Why a 28% increase in 2003? What consideration was given to its effect on the taxpayer?The average taxpayer's income won't increase by that much for many years to come.
Will holding the line in 2004 be good enough? Perhaps part of last year's increase should be rolled back? Where did the money go?
A comprehensive review of programs and operating practices is needed. Programs should be analyzed and prioritized, with all requests for new or expanded services being thoroughly scrutinized. Ways should be sought to improve performance and reduce costs. Tough choices will have to be made. All available financial support from other levels of government and from granting agencies should be pursued.
We didn't receive an explanation of last years Township budget, we deserve one this year. The explanation must be separate from the County and Education budgets. Council must justify their planned expenditure and tell us not only how it will affect the Township tax rate but also the cost, when combined with increased property values, to the average property owner. Simply reporting the overall tax rate change, and referring to it as the tax change, is unacceptable.
This year, we must concentrate our attention not only on MPAC assessments but also on the major cause of recent tax increases - Township spending. We must remain vigilant as Council prepares the Township budget for 2004.
