Candidates debate 'out of control spending' in Georgina

Yorkregion.com
September 28, 2018
Heidi Riedner

The issue of taxes generated the most heated discussion from mayoral and regional councillor candidates during a two-hour debate hosted by the Pefferlaw Association of Ratepayers Sept. 24.

Jackson’s Point resident Wayne Downey asked candidates what they would do to curtail “out of control spending” in light of a 19-per-cent tax increase and 48-per-cent increase in Civic Centre staff over the past four years, compared to an 8-per-cent increase in population since 2011.

Incumbents Margaret Quirk, who is running for mayor, and regional councillor candidate Naomi Davison pointed the finger at the previous term of council for keeping taxes artificially low and passing on significant operating costs of The ROC, the purchase of The Link and ClearWater Farm property.

“This term of council had to deal with some low tax increases of the previous council that didn’t keep up with inflation,” Davison said, adding the regional adjustment and supplemental taxes were used in 2013 and 2014 to “artificially” lower taxes.

“Money was not set aside for replacement of water lines, so now we’re having big increases and we have to find that money now. Similar things happened with respect to infrastructure and roads, so in the past four years, we’ve had to create a strategic plan looking at what the long-tern needs are and how we’re going to go about addressing that. You can’t just look at today, you have to look at the future when running a municipality of this size.”

Quirk said the previous term of council did not invest in long-term issues, so tax increases were necessary.

A zero-per-cent increase in 2014, which was an election year, was “really nice” but “not sustainable,” Quirk said.

“That same year, the budget operating increase was actually 4.13 per cent, so how did they get to zero? They cut the capital and reserves. They didn’t invest in the long-term issues. So, the next year, yes, we had to do an increase,” she said.

Quirk said fiscal management policies put in place now -- particularly a rate stabilization fund -- won’t make the same error while putting millions more into reserves, which earn hundreds of thousands of dollars via a new investment strategy.

Regional councillor candidate Rob Grossi, who was mayor under the previous term of council, found it “ironic” that Davison, who sat on both councils, was saying this term had to raise taxes because the former council "didn't do a good job."

As for supplemental taxes, which come from new residents, Grossi said that if you have new residents and they are using the services, you put that money toward your tax rate, you don’t save it until a future year.”

Moving forward, Grossi said, "If you can’t afford it, don’t spend it”.

He raised concerns over the impact of the new Civic Centre build.

“I’m not sure whether we can afford a facility like that and I’m not sure that’s the way we should go. All you have to do is look at what is happening with other forms of government around Ontario. Are we going to be the same format in three or four years from now in the Town of Georgina? Are we going to be part of a different system? Should we be building a Taj Mahal-type of facility when what people really want is more localized services within their community?”

Grossi also said he wants a return to a line-by-line budget review, which “hasn’t been done here for the last couple of years.”

Mayoral candidate Sue Jagminas agreed with a line-by-line budget review and said she would have a lot of questions regarding the rationale for town spending, particularly when it comes to facilities like the MURC and especially in light of the fact residents have to pay so much in taxes when they aren’t even getting cost of living increases.

Mayoral candidate Boris Godzinevski said he is always “irked” to hear council repeating the same line that they are building for the future because he can't see "how it's fair to use residents’ taxes now to accommodate people who aren’t living here yet" when municipalities should build reserves with new residents contributing to the services.

“It just does not make sense to use taxpayer money for people who will be here 10 years from now,” he said, especially for projects like the MURC and Civic Centre that he said are not cost-effective, viable and have alternatives that are smaller and a fraction of the combined estimated $55-million cost.

While taxes may not be such of an issue for people used to higher taxes coming from other areas, Godzinevski said they are still “brutally unfair” to those long-term residents who are being pushed out of town as a result.

Regional councillor candidate Lee Dale said it is time for a return to common sense decisions and a move away from political ones.

“While some of our infrastructure improvements are needed in the future, you can only expect that to grow exponentially,” he said, adding “exorbitant” operating costs on a lot of new facilities are facing the town.

While he acknowledged the importance of reserves, Dale said there is no point to them if you have a council “that is willing to send that money away to every consultant that walks in the door.”

He said he would stop the practices of single-source consulting and purchasing and use out-sourcing only where it makes sense.

“We need to start asking the right questions,” he added.

“Our mill rate is one of the highest mill rates within a 200-kilometre radius. Our service levels are low and we have no way to walk out of it without a commercial and industrial tax base.”

To address the fact that taxes are going up because of the amount of money the town spends on staff, several town departments could benefit from outsourcing, Dale said. “There is a way to hold them accountable.”

Godzinevski said the town is the largest employer in town, which "covers up" the lack of any meaningful relationship with business and job growth.

While Quirk said she supports The ROC, she added the large of amount of staff required to run it is responsible.

“Love it or hate it, that’s the reality.”