"Cowardice asks the question...is it safe? Expediency asks the question...is it politic? Vanity asks the question...is it popular? But conscience asks the question...is it right? And there comes a time when one must take a position that is neither safe, nor politic, nor popular but one must take it because it is right." ~Dr. Martin Luther King

Wednesday 13 June 2012

Less Than Enchanting

As promised, we will talk about Tim's less than enchanting idea for the town to give the hydro money back to taxpayers .
When was the last time you received a cheque from the Town of Aurora.?
After a three year battle, and  final acknowledgement that rates had been calculated to include water loss probably due to unmetered water used by public works and  the parks department, did you get a rebate for previous years of overcharging? 
No you did not.
What you got was an increase in water rates smaller than that forecast.
Not even  a tip of the hat. Or anything else approaching an apology.
But you were paying attention .. You let Council know you  expected a  resolution. To their credit, they listened.
But you never received a rebate..
Now...let us contemplate how such a rebate might be calculated.
First there's the assessment roll.
Landlords, resident and absentee are the property owners. 
Retail business. Institutional business. Industries manufacturing and  servicing.
Some with head offices out of town . Others owner operated but still non-resident.
Smart Centres and State Farm Insurance. 
Residential comes in different classes.
Apartments and Condos.
Estate lots pay as much or more  in property tax than some people have income.
The Royal Canadian Legion are on the assessment roll but they don't pay taxes. We pay their taxes.. 
There's a bubble housing an indoor commercial soccer operation.
They don't pay taxes. We pay their taxes..  
To divvy up  thirty-three million dollar hydro asset fund to return to  taxpayers would  require a calculation based  assessed value of the property.
The owner would receive the rebate.
The owner  pays the  taxes. 
How would the  infinitesimal rebate be distributed? 
It wouldn't. It would  show up as a credit on the tax bill which would  undoubtedly be offset by the annual increase in the tax rate and  recommended paid by deferred  installments.
Would anyone expect the annual tax increase to be less because of a tax rebate? 
Well Bless your Heart!! It's all too easy to fuddle-duddle with the  figures .
Keeping it tied up in investments is good... on a short term basis.
But the further we get from the original intent, the easier it is to siphon it off. 
Selling  hydro was a hard decision to make.
Power Stream is making huge revenues for  its owners who are the Towns of Markham and Vaughan.
Provincial requirements put that option out of reach for small utilities.like Aurora. 
But if we had a facility that the greatest number of people could enjoy every day of our lives, which we would unable to contemplate as a tax burden, the decision to sell Hydro would become  the right one.
Divying up the fund between all those legally entitled to receive a proportionate share would accomplish nothing.
The idea is not  thoroughly thought through.
It has no merit.
It's simplistic.
Ridiculous.
Crazy.
Just plain nuts.
No credit to its author,
In my opinion.
As good as the best and better than the rest.    

5 comments:

Robert the Bruce said...

This is easy. It does not have to relate to the tax roll or property assesments. We are too far removed from the change to somehow figure out a pro-rated fee.

Go back to the tax year that sale occured. Those that paid taxes in this year are eligable for a credit/cheque/whatever. Divide the lump sum by the number of "payers" - that's their share. IF the person/company is dead or not in Aurora any longer, their share goes to he town.

Generate a cheque/credit(whatever you want) for each name on the list.

For the Legion - the Town paid, the Town gets their share. As far as businesses are concered, they somehwo paid the bill, give the credit to thee saeme people and explain what it is for.

Anonymous said...

Probably just as well. Have you read the stories about the trouble that ensues when a group of people have to share a lottery win?

Tim the Enchanter said...

Gee whiz Councillor.

It seems easy enough to collect taxes yet giving a tax credit is some sort of Gordian Knot of a problem?
A task too ridiculously frought with difficulties that the very idea is preposterous?
Really?

So what now?

33 wonderful projects of $1M each?
One big $33M 'piece de resistance'?

Will this be a Made in Aurora $33M deal or will council be seeking to augment the fund with Provincial and/or Federal funds so we can do something REALLY big - like our own Mount Grossi?

When council approves the Big Spend will we also have an estimate as to any tax hikes required to cover annual upkeep of same or will this be a moneymaking venture?

I know it sounds like I'm raining on the parade here but you'll forgive me if I'm not entirely confident that Aurora council can put together a megabuck project that isn't either a fiscal sinkhole or a plaything for Aurora's "we play,you pay" crowd rather than a thoughtfully considered, financially responsible addition that ALL Aurorans can look on with pride.

Anonymous said...

Question of Clarification, Please.
Who renamed the Hydro Fund ? Public Relations? Council with a vote? Don't think it will fly. { Welcome back, R the B }

Anonymous said...

Trying to watch the tape of the Council meeting. I lost Councillor Gaertner when she lost herself. Was there a valid objection that she could have been making? Something about 30 years of protocol being ignored ? Council did not appear to know what they were voting on & then the count was wrong. Hello, out there?