Back on August 2, 2012 ,
I posted regarding the upcoming Franchise Fee Increase scheduled for Jan 1, 2013 .
Think about this a three-year budget was passed early this
year with much fanfare over taxes only going up 2.5% each year. Imagine if
council had announced that the taxes were going up 7.5% in the second year.
Taxpayers would have been out raged, there would have been editorials, letters
to the editor denouncing our local leaders and tax collectors.
No the majority remained happy and said “2.5% that not bad”
but then the light came on and people began to realize it is not 2.5% it is
really 7.5%. I have been asked repeatedly how do you get 7.5%? Simple back to
Franchise Fees. These are a hidden tax that the vast majority of the public
does not even know exists; they go on you gas and power bill and are then paid
to the municipality.
The dollar amounts on these items $211,980 on the gas bills
and $124,965 on the power bills for a total of $336,945 right out of the tax
payers pockets no different than if they had increased our property taxes by an
equivalent amount. Remember every $65,000 is the equivalent of a 1% tax
increase so $336,945 is very close to 5%, on top of the 2.5% announced previously
by council “7.5%”.
How does the Ratepayers fit in to this equation, well before
these Franchise Fees can be imposed very have to be approved by council, that
process began last night. Due to what I believe is the fact that most of our
local politicians do not like the outcry being expressed publicly over the last
few months with a group of concerned taxpayers coming together and forming the
Ratepayers Association plus a number of there members sitting in the public
gallery last night. Council blinked (At least for one meeting) when
administration brought the Franchise Fees forward last night. There was discussion
from Councilors Gallant, Saindon and Gail about the hardship of this type of
increase, maybe the possibility of looking at other areas to raise additional
revenue. Never once did I hear anyone suggest that maybe the municipality could
reduce spending by $336,945.
The outcome; administration is going to bring this issue
back on September 18; groups like the ratepayers need to keep up the pressure.
People need to understand that speaking up at a town hall meeting or at the
local coffee shop is great. Those are the voices of individuals; politicians
only listen when they hear the voices of many.
1 comment:
Oh Dean you are being so silly. I do not believe for one second these guys could care less what the public in general or the Ratepayers in particular are saying.
I'm sure some of those guys care about getting re elected in 12 months that is the real motive for taking another look at this tax dressed up has a Franchise Fee.
Take $400,000 out of our left pocket or out of my right what's the difference?
Dennis
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