It's no secret that CBRM has among the highest property taxes for both residential and commercial properties in the entire country. This is a problem. However, this is not a problem that can be (or should be) fixed with haphazard across-the-board rate cuts (unlike the 1.5% cut staff had originally planned for).
CBRM's main source of income is from property taxes. This is a larger problem than our tax rates. It is irresponsible to lower taxes without ensuring long-term secure economic sources to make up for the revenue loss from tax cuts. Read about my plans for increased revenue through municipal owned energy utility and leveraging the Accessibility Act to advocate for increased Provincial funding while increasing tourism revenue.
Tax Cuts for Local, Not Loblaws
In likely the biggest boondoggle of CBRM Council since amalgamation, the Provincial Government finally gave us a taste of "equalization" in the form of a one-off $15 million dollar municipal top-up. Council voted to 'prioritize the rate payers'. However, without critical thinking or scenario analysis to determine if their words actually match the outcome, their decision ultimately benefitted big corporations and higher levels of government the most and seems to have reduced the Provincial Government's trust in CBRM Council to use Provincial funding increases wisely and competently.
Councillor Bruckschwaiger proposed the significant tax cut without actually asking staff to create a budget based on his motion and without any promise of a continued $15 million dollar Provincial grant. Whether or not staff were present when this idea was floated around is irrelevant. Staff have roles outside of Council business and if Council needs something of staff, they can use their big-boy voice and ask. When they fail to, they should be adults and take accountability for their mistakes without blame-shifting.
The $15 million was a one-time top-up. Seven of our 12 Council members voted to approve this tax cut, without a budget to guide any critical thinking around the proposed scenario. It took approximately 12 years for taxes to raise that 5%. Understandably residents were upset when the following year we saw a 3.5% rate increase. That's a significant rate hike for one year. However, when you look at the details of these meetings and decisions, we can see that the 3.5% hike was Council seeking to repair some of the mess it made the year before. Council members who voted in favour of this drastic cut without even having a budget to look at (and against the pleas of CBRMs Chief Financial Officer - the person who makes the budgets) include: Lorne Green, Steve Gillespie, Gordon MacDonald, Earlene MacMullin, Darren O'Quinn, Glenn Paruch, and Ken Tracy, motioned by Councillor Bruckschwaiger. Mayor McDougall, Mayoral candidate James Edwards, Cyril MacDonald, and Eldon MacDonald all voted against the cut, suggesting it be phased in instead to ensure CBRM would have the revenue to offset the loss. Steve Parsons was absent but did send commentary also suggesting a phased-in approach to the rate cut. Of those Councillors who voted without the information necessary to make good governance decisions, the only one not seeking re-election is Darren Bruckschwaiger. District 4's Gillespie, District 1's MacDonald, District 2's MacMullin, and District 6's Paruch all have acclaimed seats. Green, O'Quinn, and Tracy at least have some opposition.
Ironically(?), had Council approved the CFOs budget incorporating that grant, it would have offered the same impact on property tax rates for the most vulnerable members of our communities without giving a leg up to Loblaws. The CFO's budget included a 1.5% tax cut across the board and an increase in the Low-Income Tax Credit, resulting in approximately 4-5% property tax decrease for eligible households. The late Mary Campbell of the Cape Breton Spectator wrote several comprehensive articles on the confusing Council meetings proposing, and then trying to clean up from, this 5% across the board cut. Mary's writing has been invaluable to me in understanding the impact of all this chaos.
Actual Impact of that 5% Cut for a Low Income Homeowner
Based on Mary Campbell's reporting, I saved approximately $12.50 a month ($150 for the year). As a low-income citizen, I would have benefitted more from adequately funded municipal services and an expansion of the low-income property tax credit. I wouldn't even be a homeowner if I didn't have generous parents with the ability and willingness to co-sign my mortgage. We need Council representation that is actually in touch with the realities of the average person living in CBRM. For a Council that talks a lot of talk about child poverty and concerns for seniors, they don't make very good choices to actually support our most vulnerable citizens. Likely because most of them are extremely removed from reality while collecting a $49,000 annual pay for their Council work on top of their full-time jobs. Even when I lived in Alberta, the highest annual income for full-time work I earned was several thousand less than the part-time Council pay. (Yes, front-line disability support staff are disgustingly underpaid, even worse paid in CBRM than I was when living in Alberta).
How would you have preferred Council used that $15 million? Do you think the Province would be more generous with CBRM going forward had our Council used those funds more critically? I do.
Here's a look at how CBRM staff had proposed we use the $15 million:
Here's what Minister John Lohr had to say:
Last year, when we made good on our election promise to double the pot of money available for municipalities, many communities used their extra money to actually invest in their communities in meaningful ways such as long-term infrastructure like roads and sewer. CBRM was an outlier. CBRM council used last year’s extra funding on a one-time tax decrease that ended up benefitting commercial retailers far more than the average Cape Bretoner. We had expected these monies to be used for long-term investments that could not have otherwise been made.
This October, please think critically about what type of leadership you want. Vote for a candidate who will make thoughtful choices, not easy ones. Vote for someone invested in the long-term sustainability of our shared communities, not winning the next election. CBRM property taxes are too high and they require tax reform to bring them down. A leg up for Local is not a Leg up if Loblaws is given the same opportunity. I want to see CBRM introduce property tax reform that incentivises supporting the local economy.
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