What Are the Poor People Doing

I wondered at a recent sumptuous banquet

There were seventy-five tables in the room. Each seated ten. Tables cost $25ks. Guests were politicians in the main . Hosts sponsors were developers, banks, legal firms or other entities expected to benefit from development.

The purpose of the evening was celebration and support of the Arts in York Region. The Arts did well that night.

The dinner was fine .Centre piece at each table was a piece of art. Twenty dollar tickets purchased by guests went into an envelope and a draw was held later.Another fifteen thousand or so easily slopped into the kitty.

The night's take was probably satisfying. But a piddling amount compared to the revenue pouring into York Region in lot levies. Multiply that by the Regions surrounding Toronto and figures must be counted in billions. All of it reflected in the price of homes and business premises.

I was guest at another banquet in Toronto a couple of weeks later. It was in "celebration" of a
particular political career. It was more sumptuous with a higher level of political involvement. I fancy funds were the objective. .

Among thoughts that went through my mind while I watched the room being worked by the movers and shakers, was what, in other part of the Province, without development charge lot levies or banquets are people doing to raise funds for their various needs and causes.

Of course I know the answer.

They do without. Or have heavy and lengthy discussions about whether or not the facility is essential or sufficient to justify adding the cost to the tax bill in the form of a debenture.

Just as we did before we had much development to speak of and lot levies were $250. When we built the Aurora Community Centre to replace the arena which burnt down one night in a brief and spectacular bonfire.

Following which, for several years, parents rose earlier in the early morning to drive further to wherever spare ice could be found ,mostly Bond Head and King City.

Prominent citizens were appointed by Council to a committee to solicit input from groups about what should be included in a new facility. They subsequently reported.

Whereupon, weeping and gnashing of teeth were heard throughout the land. The town could not possibly afford to pay for all of that.

The Committee quit. A Council Committee was struck and produced a less expensive hybrid that did nothing to satisfy the groups who had enthusiastically participated in the initial process.

We did build a state-of-the-art ice arena with comfortable seating and heating for thousands of spectators anticipated for our Junior A Hockey games. The facility brought the community to-gether in a way that no-one could have imagined. It was completed the year of Canada's Centennial when spirits and national pride were high. Nowhere higher than here in Aurora.

We paid for it by debenture.

It's how things were accomplished without development levies. It's how people still do it where there are no easy pickings.

In answer to a question frequently heard, it's how we will do it again, when the town is all built out and development charge levies cease to flow.

Debentures of course are debt.They carry interest rates. Which fluctuate with the economy. Much like a house mortgage.

The principle is the same. A family needs shelter. Money is borrowed and interest paid. When the mortgage ends, the house is owned free and clear. But while being paid, it provides shelter for those who live in it.

When I first became a Councillor, the town still had a debenture for the Sewage Treatment Plant. I noticed a payment from Collis Leather in the first budget I saw.The first one to break a million.

Clerk-Treasurer Bill Johnston explained Collis Leather and The Town had partnered in constructing the treatment plant. The tanning process created problems which could only be handled by a sewage treatment process.

As a result, Aurora was ahead of most municipalities with a sewage treatment process. It meant people had flush toilets. No more privies to tip on Hallow e'en night. No more new cess pits to be dug on a regular basis.

I imagine it was a welcome amenity though likely some complained there was nothing wrong with the old way of doing things and about the debt and increase in their taxes .

My point is, debt is not necessarily bad. It allows for an equitable sharing of cost while enjoying the amenity.

With development charge levies, the whole community enjoys facilities while new home-owners pay ninety-per-cent of the cost. Existing home-owners pay a ten-per-cent share.

Development charge levies are not the only hidden tax burden on new home-owners.

But when a buyer makes the serious decision to purchase a home and take on a mortgage, they have no idea they will be forever paying property taxes on taxes hidden in the price of their homes. They don't want to know. They need to believe their decision was a good one.

That puts the onus on elected representatives to ensure equity in taxation.

Ha!

Fat Chance!

Not while there's a fatted calf to feed on.