Increases to taxes, are they a necessary evil?

Nobody likes to pay taxes, but they are a fact of life. Can we keep taxes at a the same level every year? You may hear stories about how municipalities don't have to raise taxes. And they are true. But keeping taxes the same would mean that either external prices DON'T go up... or services are decreased. Administration works very hard to keep costs to a minimum and our expenses last year were lower than they were in 2009.

The Consumer Price Index (CPI) is a great tool to look at an average cost increase over time; but how does that relate to increases to the municipality and eventually the Town's budget? It doesn't. The CPI is based on a basket of goods that a typical family buys. A municipality doesn't buy bread, or eggs, or clothing. It does buy fuel, oil and parts for heavy equipment. These items increase in cost, on average 2% more than the CPI each year. For example, in Irricana the fire requisition went up about 15% last year alone, which isn't in a CPI calculation and amounted to $12,000. Something that a Irricana doesn't have a choice on whether or not to pay, it is an essential service.  In an imaginary world, if that were the only cost to the municipality, taxes would go up the amount needed to pay for the increase, there is no way around it. Other increases above the CPI include the library requisition, something that we don't have to pay, but it was determined that the library is an important service to the Town so requisitions were increased.

The Town can certainly keep taxes at the current rate, but services and reserves would need to be decreased. As Danielle Klooster said in her article(http://www.reddeeradvocate.com/opinion/Five_terrible_reasons_to_run_for_municipal_office_225195362.html):

yes, fiscal accountability and responsible spending are very, very important. And no one likes paying taxes, me included.

But the No. 1 responsibility of the councillor is not fiscal responsibility — it is to build community infrastructure for future generations.

Shame on you if in five, 10 or 25 years there is no water or sewer capacity or the roads are falling to pieces or there are insufficient playgrounds and recreation opportunities because you were busy pinching pennies instead of building a community.

If anyone has a way around that increase or the Municipal Price Index, Administration would like to hear all ideas on the subject. We follow best practices and have always listened to residents through various consultations with residents and other stakeholders.