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Mortgaging taxpayers' future
Apr 09, 2008

On Tuesday, April 1, Gravenhurst town council considered the 2008 budget. For the past few years the town has been spending far more than inflation would justify. To pay for this the town is using the reserves, down $4.4 million since 2005. Since 2004 the annual increases have been 14 per cent, 14 per cent, 8.36 per cent, 8.81 per cent and this year will be around 7 per cent.

This year salaries and wages, almost 50 per cent of the total expenditure, will rise by 12.7 per cent over last year’s spending. The justification for this increase is that the salaries in Gravenhurst must be comparative with other municipalities, plus they need more staff.

The facts: Town councillors in Gravenhurst now pay themselves a part-time salary more than the average full-time income for female employees in Gravenhurst (District of Muskoka’s demographic profile indicates females make $19,104 annually according to 2001 census figures). Approximately one-third of Gravenhurst adults rely on pensions and are on fixed incomes (District of Muskoka’s demographic profile indicates 3,635 out of 10,880 people are over the age off 55 according to 2001 census figures). What comparisons are we talking about here? Perhaps the population should demand that town spending compares with their capacity to carry it.

Council heard two deputations urging them to hold the line on spending and to undertake a study to improve the efficiency and effectiveness of the town’s operations. In other words, find savings before spending more. They did not consider this proposal, and instead added more expenditure to the proposed budget.

The deputations showed the future impact of continuing on the same course. It means starting 2009 and every following year with an automatic five per cent base cost increase with no change in services or service levels. As they proceed on their current course, debt servicing will rise to be the second largest item in the budget. We will be paying our taxes to the money lenders.

Does council worry that they are mortgaging the future?

I urge taxpayers to tell council to hold the line.

Lola Bratty

Gravenhurst