Fellow Midlanders,

We have little detailed information available to us concerning proposals for the 2021 Midland budget.  Midland obviously is facing some new challenges as a result of the pandemic but the challenges for many local businesses and residents are much greater.  This is a year Midland absolutely has to get its appetite for spending under control.

MidlandCommunity.ca has several members with business and public sector experience. Drawing on that, here are a few general observations:

1. Midland's current target for a blended tax increase between 1.5% and 2% is much too high because it represents an increase in the 3% range for Midland's own taxes.  The fact is Midland has for many years been sheltering tax increases that are well above the rate of inflation behind this notion of blended tax increases.  Midland Council should take responsibility for the taxes and spending Midland decides upon and leave responsibility for Education and County taxes to the Province and County.

2. With each successive year Midland has been taking an increasing share of the total taxes paid by Midland taxpayers.  Spending increases year-after-year above the rate of inflation are not responsible or sustainable.

3. Midland has for years provided services to other municipalities and their residents for less than the true cost of providing them.  This is true for rates Midland charges for library services and for use of recreational facilities.  In fact this unfair burden on Midland ratepayers increases every year because when Midland does increase user fees, it is by the rate of inflation or less, when at the same time Midland's spending for wages, benefits, liability insurance and energy has been increasing at much higher rates (sometimes double-digit increases).  This results in a semi-hidden, ever-increasing subsidy for library and NSSRC users paid for by Midland taxpayers.  If Council really wants to make Midland taxpayers pay larger subsidies year after year, Council should do that in an open, transparent way where members can debate the wisdom of that choice.

4. Midland and its neighbours deserve some credit for attempting to share selected services across municipal boundaries to reduce overall costs and limit pressures for spending increases.  Midland should also be looking at additional sharing opportunities including sharing facilities.  On a combined basis, Midland and Penetanguishene are an urban area of about 27,000 residents.  It is reasonable to ask how many libraries, museums, arenas, splash pads, curling clubs etc. do 27,000 people actually require especially now that Midland and Penetanguishene share a transit service that can move people from one place to another.

5. Midland has disclosed it shared an operating deficit in 2020 and the factors that caused it are continuing into 2021.  Many taxpayers, both individuals and businesses, are experiencing the exact same challenges and are suffering significant reductions in their incomes but with no way to shift the burden to someone else.  
Wages and benefits are by far the largest component in the municipal budget.  Council and staff must start sharing a bit of the pain by foregoing wage increases that otherwise add to the burden on residents and businesses.  Unlike other places, Midland kept its staff fully employed through 2020.  Midland could reduce payroll costs by negotiating agreements to postpone planned wage increases and, failing that, by layoffs to keep payroll cost increases at 0% in 2021.

There are definitely some tough decisions ahead for all of us, and we are counting on Council to do everything possible to minimize the municipal tax burden on ratepayers who are facing unprecedented financial challenges.

The Feds and the Province appear to be printing and spending money with impunity, but Midland does not have that ability and should remain as fiscally conservative as possible with none of us knowing what new challenges lie ahead.

If the Town can find ways to tap into stimulus spending by higher levels of government, that would be a great allocation of human resources. We hope the Town will double down on efforts to secure as much support as possible from all available federal and provincial programs to offset declining revenue and other financial risks.

Council and staff have their work cut out for them and we are all counting on them to rise to the occasion.

MidlandCommunity.ca

Midland Matters, Business Matters and Responsible Government Leadership Matters
View All Newsletters & Press Releases »