Amherst taxpayers have cause for concern over long term

If you were to poll Amherst property owners on their impressions of the latest town budget, the reaction would most likely run the gamut. It would probably depend on whether you believe you are getting good value for your tax dollar.  

My overall impression is generally favourable because I believe our mayor and council, along with town management, are being fiscally responsible while ensuring that vital infrastructure is being upgraded to ensure the future viability of our community. 

There is also some consolation in knowing that the town’s financial management has received high marks from the Financial Condition Index, or FCI, which measures the financial health of Nova Scotia’s municipalities. 

As well, healthy operating reserves also allow the town to have the resources to plan for future sustainability while allowing the flexibility to deal with unforeseen circumstances as they arise.  

After keeping tax rates on hold over the past few years, it was no small feat that the current council was able to bring down a budget with just a half-cent increase in the tax rates considering the impact of inflation.

 It is also encouraging to see this council investing in some of the areas it has set out as strategic priorities for the community including poverty reduction, continued support for not-for-profit groups and the implementation of the first year of a five-year active transportation strategy.

While I’d like to say I’m cautiously optimistic about the year ahead, I also believe that as property taxpayers we have some cause for concern about the longer term. The elephant in the room and the biggest piece of the budget pie can be attributed to policing services, which represent almost one quarter of the town’s total expenditures. It is an item over which town officials seem to have little control.

At least the town is prepared to launch what it calls “an in depth study into the cost of policing in Amherst,” but it is being done from an “internal perspective” when it should probably be coming from a more unbiased “at arm’s length” committee. 

The town also carries the burden of a mandatory provincial contribution for education, correction services, housing and property assessment services. 

Again, those are expenditures beyond the town’s budgetary control.

I recall the comments of Calgary Mayor Naheed Nenshi some years ago that the system of raising revenue on the backs of home owners through property taxes as the weak link in municipal finances. 

He predicted that we’ll probably hit a breaking point for most municipalities in this country where we simply won’t be able to fund our operations using only the property tax. Nenshi believes Ottawa and the provinces should be looking at a long-term predictable funding arrangement to support municipal governments. 

While Amherst has done an admirable job at keeping tax rates in check, we have to wonder for how much longer. Expecting municipalities to continually increase property taxes to generate revenue and maintain services is regressive and with our aging demographic, its particularly unfair to seniors.

Geoff deGannes is the past chairman of the Tantramar Radio Society. His daily commentaries can be heard on 107.9 CFTA.