Now what?

County property owners are being asked to come up with $26,398,270 this year. That’s 7.7 per cent more to be paid in property taxes this year compared with last year. User fees on everything from water to garbage are also up sharply again this year—expected to carve more than $11 million from residents’ wallets this year. The cost of living in Prince Edward County is growing beyond the ability of many to keep up.

Just 14 years ago, the tax levy was $10.3 million and user fees were $4 million. Since then the pound of flesh needed to satisfy Shire Hall has increased on average seven per cent each and every year. At this rate of expansion—and there is little evidence that it will ease—in just two more years the tax levy you and I will have to pay will be more than $30 million; user fees will be $13 million. This is three times the amount paid in 1998.

Few will argue we are three times better served by our municipality in 2012 than in 1998. Even with an ever increasing tax burden, our roads are likely to deteriorate further in 2012. It will cost more for our kids to play hockey. Volunteers will have to contribute more time and effort to retain museums, town halls and cultural events. And you will need to bring $5 for each and every bag of garbage you bring to the dump. As dreary as this picture is—it could be worse. New assessment—that is new homes generating a fresh stream of tax income— has blunted somewhat the effect of runaway municipal costs over the past decade, contributing to the tax base about $400,000 each year. Put another way, new residential development has knocked about two per cent off the annual tax levy increase through the boom years of the last decade. Sadly, the boom is over.

So far in 2012 the County has seen just six new homes, built in the first three months. That is the slowest pace of new home development since amalgamation. Without those new homes a greater share of the tax and user fee burden falls upon existing taxpayers—many of whom are already straining under the weight.

If these numbers don’t improve markedly in the second quarter, pressure will mount on council to reduce development and connection charges, at least temporarily, to be in line with neighbouring communities—many of whom are enjoying a healthy and robust new home building market.

In the longer term, hope for relief must come from a review of the municipal organization under way currently. This review, spearheaded by the County’s new administration chief Merlin Dewing, is examining every aspect of the County’s business, from staffing to services, assets and financing.

It begins with a simple question: what should the municipality do? It is a question that might better have been asked 12 years ago—but I suppose this is better than asking the question 12 years from now.

This question—or rather a list of questions— should also have been posed to County residents. Council decided it knew better and vetoed Dewing’s initiative to gain public input. Now we must hope the CAO and council get it right.

Nothing short of fundamental and dramatic structural change in the business of the municipality is likely to alter the trajectory of tax increases in Prince Edward County. The choices will be difficult— the decisions hard. Council will need a stiff backbone and an open mind.

It cannot continue down the dead end road of delivering less and asking for more. Residents are looking for results from this reorganization. This newspaper would have preferred to see evidence of this restructuring before passing along a 7.7 per cent hike in the tax levy. This council hasn’t yet earned the public’s trust regarding the management of municipal finances—certainly not to the level it could unashamedly ask for more money.

Many were elected to this council to change the way Shire Hall works. So far there is little evidence of the change promised. Now the pressure is on. It has passed a hefty tax increase. It is time for the municipal administration to deliver on its promise.

rick@wellingtontimes.ca