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November
1998 Newsletter
A
Simple Way to Reduce Property Taxes
There
is a simple way that regional politicians could deal with
the growing anger about property tax increases. They could
immediately lower taxes. Here's how.
Local politicians are blaming property tax increases on
provincial "downloading". They say that Hamilton-Wentworth
has been shortchanged about $36 million by the Harris government.
Indeed, they say our region has been treated much worse
than other parts of Ontario. They are forgetting a little
history.
Provincial
"downloading" began in November of 1995 with the announcement
of $6 billion in cutbacks — including substantial reductions
in subsidies to local government.
However
on that gloomy November day, Hamilton-Wentworth got treated
a little differently than other Ontario municipalities.
There was a "silver lining" consisting of $100 million for
a local project called the Red Hill Creek Expressway. While
every other community in Ontario got a lump of coal from
Mr. Harris, Hamilton-Wentworth got a big Christmas gift.
This
provincial gift to us was scheduled to be doled out at a
rate of $20 million a year for five years (1996-2000). Local
politicians have already used $40 million in 1996 and 1997
to complete the Linc. That leaves $60 million still coming
in, or nearly twice the amount the local politicians claim
we have now been "shortchanged".
And
there's more. The province is also paying $25 million for
the interchange to connect the Red Hill Expressway to the
QEW. And since that interchange has to be jammed between
two existing interchanges, an additional $20 million is
coming to reconstruct the Burlington Street interchange.
Thus
the provincial monies still to be given to Hamilton-Wentworth
for the expressway project total about $105 million. That's
three times the $36 million that Terry Cooke and friends
think they've been shortchanged.
So
how do we lower taxes? Regional council goes to the provincial
government and very nicely says: "Mr. Harris, can we please
use the expressway subsidy money for more important things
in our community." Mr. Harris should like this, because
then the local politicians won't be able to blame him for
the property tax increases.
Local
politicians should like this because then they can cancel
the huge tax increases they have imposed on local property
owners. And taxpayers should like this because the recent
increases will be rolled back. Everybody wins.
There
is another bonus. Despite all this provincial subsidy, local
taxpayers are also facing a big bill for the expressway
if it goes ahead. Regional council plans to borrow $81 million
for this.
If
the project is cancelled, we won't have to pay that loan
back (over the next 25 years) which means the average homeowner
won't get hit with about $700 in increased taxes. Taxpayers
will also avoid all the maintenance costs of the new expressway
which are predicted to be greater than the cost of construction.
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