Closed: that’s the message Collingwood Council sent to business during its recent budget discussions. We’re making it more expensive to run a business here, and by the way, we’re hostile to seniors and low-wage earners, too.
Under the tissue-thin pretense of keeping taxes low (which they aren’t, really), council approved a staff initiative to remove the costs for maintaining hydrants from the general tax levy and add them into your water rates – where they will do the most harm.
Councillor Madigan made the motion to take the costs from the fire department’s budget – where it has traditionally been, which means it came from property taxes, and dump them on your water bill. Other councillors who had previously resisted this move were suddenly turned into nodding bobbleheads, voting as staff directed.
Only a courageous two – Lloyd and Edwards – voted against it.
These hydrant costs represented approximately 0.5% of the existing property tax levy and would not have increased taxes because they have always been calculated into our taxes. Now it will make your water and sewage rates go up by 5.8%!
An alleged tax saving that shifts the costs onto utility bills is NOT a savings at all: it’s an expense.
For renters, this means a huge increase in their utility costs. Rental rates are controlled and kept low by provincial legislation. Utility rates, however, are not. This will make living here much less attractive, and less affordable for anyone who rents.
So the people most hurt by this move are seniors, people on fixed incomes, low-income earners and the many people who rent their home. This is a remarkably hostile blow towards a large and vulnerable percentage of our population.
And it’s a double blow against business and industry, since they pay the lion’s share of water costs. It just makes it more expensive to run a business in Collingwood and will further deter industry from relocating here. Workers and businesses get hit at the same time.
This comes at a time when businesses are already struggling and Canada’s economy is in trouble. Retail chains are closing and more are slated to close. The governor of the Bank of Canada, Stephen Poloz, recently warned that “…the first quarter of 2015 will look atrocious…”He added that Canada’s economy was unlikely to meet even the scaled-back predictions and hinted the bank could implement “extraordinary measures” – which suggests a significant increase in interest rates. He called our economic outlook “atrocious.”
Apparently most of council doesn’t care. Collingwood Council’s move just adds to existing business and industry woes. Kick ’em when they’re down.
So much for trying to attract more of them to this town. Close the business doors, I guess Council doesn’t want anyone else to come in. And maybe it wants those already here to leave by making it too expensive to operate economically. Attrition by user fees.
But here’s the kicker: there’s no indication that money moved from taxes will actually be removed from the fire department’s budget: it seems like it will be kept there and used for other purposes (maybe that new pumper truck that’s been requested the past few years?). So it looks like the money will stay on your taxes AND your water rates will go up!
So you get punched twice. Thanks, Councillor Madigan.