Time for taxpayers to say ‘Enough is enough’
There’s an old saying that reminds us the only certainties in life are death and taxes.
Perhaps it is time to issue a reminder of our own to municipal governments. Taxes, while a certainty, certainly need not be so high.
We all experienced a case of sticker shock last week upon learning that the starting point for the 2025 regional budget showed a 12.8 per cent tax increase. This follows increases of 6.9 per cent this year and 8.5 per cent in 2023.
And it is not just the Region of Waterloo.
In Waterloo, the three-year forecast projects a tax increase of more than 20 per cent, the largest increase for any term of Waterloo council since 2007. And in Cambridge, the draft budget for next year calls for a tax increase of 8.1 per cent, which would be a record high for the city. This year, Cambridge increased taxes by 7.2 per cent.
To be fair, municipal governments are being asked to fund services that should be attended to by upper tiers. In Waterloo Region, that amounts to an estimated $216 million in additional pressure on the local budget.
“Service pressures and infrastructure needs continue to rise and cannot be funded by property taxation alone. We are facing the realities of tackling immense growth with outdated revenue tools,” Karen Redman, chair of the Region of Waterloo, said in a release. “A new fiscal funding framework is critical to the future sustainability and viability of the Region of Waterloo as we work tirelessly to ensure a good quality of life for everyone who calls our community home.”
Following an appeal last fall from regional Coun. Doug Craig, the region will host a workshop later this month with federal and provincial representatives, to share with them the unsustainability of the current funding model.
But the work can’t stop there. Regional Coun. Michael Harris has tabled a motion directing staff to return a draft budget with a rate increase of less than eight per cent. While reducing the projected tax hike by that much sounds great on the surface, it doesn’t go far enough.
Much like many of us do in our households, it is time for municipal governments to take a critical look at their needs versus their wants.
Yes, there are integral services that must be delivered and vital infrastructure that must be kept in a state of good repair. Beyond that, everything bears scrutiny.
As the private sector has done, the public sector must also analyze how it deploys resources, ensuring there is no overlap or duplication while having the courage to eliminate redundancies and redistribute necessary work.
Remember, in asking us to pay six, eight or 10 per cent more in taxes, the municipal government is asking us to adjust our household budget so we can pay the increase while maintaining our essential needs. The least we can expect is that our government will take a similarly critical look at its own budget.
After years of being asked for more and more, it is time for us to respond with “Enough is enough.”