I feel the need to explain my stance a little further and anyone is free to contact me at [email protected] to discuss further or tell me they agree or disagree. I understand some can respectfully disagree with my opinion, and that is ok.
The base of the discussion on Monday night at council was 3 options for water and sewer rates: Option 1 is stick on the current plan of a 50 dollar increase per year and then 30 dollar increases for many years to come until the sewer fund is break even 20 years later(currently supported by majority of council). This plan would see approximately 25.8 MILLION dollars of taxpayer money go to interest payments.
2nd option being suggested by some residents is to have a smaller increase. If we went with $20.00/year increase instead of $50.00/year it was forecasted that we would not break even until 2052 and taxpayers end up paying 57.8 MILLION dollars in interest.
The 3rd option which is the one I support is to have $110/year increases for 4 years and then no further increases are required. This results in the interest being paid by taxpayers being reduced to 10.3 MILLION or 15.5 million less than option 1. The sewer fund would be balanced in 10 years and then start building up reserves so we aren’t as unprepared for the next project as we are for the current sewer plant upgrade forced upon us by the province.
Now before you say $110/year (which is $9.17/month or 30 cents/day) is too much. Please keep in mind the extra 15.5 million will be paid out of the taxpayers pockets over the next 20 years and we will see no extra benefit for it. This is 15.5 million in interest that could either not be spent (and therefore not taxed) at all or be spent on actual improvements instead of interest to creditors. It should also be noted that when first elected to council the breakeven year for the water and sewer fund was 2022. The following year it went to 2027, and now it is pushed back to 2034 and the amount of interest continues to increase by millions of your hard earned dollars every year.
I believe council has a role to make decisions considering the long term health and finances of the community and not just what is good for me or anyone else today. I firmly believe part of my role is positioning the city for the future so my kids can benefit from the decisions we make today.....not pay extra for the decisions we make today. That is why I still continue to support a more aggressive rate increase today to avoid paying an extra 15,000,000 in interest that will inevitably come out of the taxpayers pocket and result in higher rates in the future.
I also believe if city council wants to look to start relieving tax burden to residents, it should not do so by saving $60.00 per house by making financial decisions that will cost residents an extra $15 Million over 20 years, and should be done on the operating budget side by looking at wage freezes, stop hiring new positions or consultants, stop waiving building permit fees and giving certain community groups free use of city facilities, along with reducing other none core services. Water and Sewer is a basic requirement of any city and should not be the target demonstrating frugal taxation on a short term basis.
I understand some will disagree with me. Either way whichever way you feel I urge you to contact your councillors and let them know. Despite what you believe public pressure does have an impact if it is direct and respectful.
Steve Black
City Councillor
Ward 5
