Erin’s Fiscal Situation Continues To Deteriorate

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The following provides an overview of many of the challenges Erin faces today and in the future.  If action is not taken right away, the slippery fiscal slope we are on will be impossible to climb out of……….

Residential Property Taxes:

  • 22% higher than Caledon – $500,000 Erin home on water pays about $2,500 per year more
  • 20% higher than Halton Hills
  • 48% higher than Toronto and if you use property fair market value > 100% higher
  • County has proposed a 4 to 5% tax increase up to 2017 – largest portion of our taxes
  • Town of Erin’s taxes went up 15% in 2013
  • Increase will be lower this year but only due to addition of debt and drawdown of reserves….not a solution to our problems
  • Town of Erin in line with other municipalities in Wellington County BUT property values are significantly higher here, therefore so are property taxes paid

Industrial & Commercial Property Tax Rates:

  • Industrial & Commercial are 55% & 11% higher than Caledon rates
  • Higher than Halton Hills by 16% & 12% respectively
  • Higher than Mississauga by 50% & 6% respectively
  • Higher than King by 65% & 16% respectively
  • Great deal of capacity available in GTA for commercial and industrial space at much lower rates and better location than Erin
  • How can Erin attract businesses with property tax rates, hydro and water rates as they are?

Water Rates:

  • Town of Erin has one of the highest water rates in Ontario, and probably the country
  • Erin’s rates are 252% higher than Peel Region (Caledon, Brampton and Mississauga)
  • Erin’s rates are 224% higher than Halton Hills
  • Our rates are 110% higher than Guelph
  • If we get sewage, look for rates to double as there is generally a 1 to 1 ratio of water to sewage
  • Town of Erin water rates are on track to going up 20% per year for 5 straight years
  • Water rates could potentially double with sewage as ratio is close to 1:1

Town Balance Sheet:

  • Currently have >$3.2 million in debt at end 2012 – increase of $1.5 million from end 2011
  • Provincial subsidies went down more than $700,000 last year, with lower grants expected to continue……we have to make up shortfall
  • Need for another $2.5 million to fix Station Rd bridge and dam
  • 2013 Asset Management plan states Town needs to borrow an additional average of $824,000 per year for next 10 years on top of increasing taxes by 2.5% on top of general increases
  • Debt required for any form of sewage system will be extreme to the Town as grants have significantly decreased from senior level governments

Additional:

  • Hydro delivery fees continue to increase dramatically
  • Gas rates have been proposed to go up by 40% on April 1st
  • General inflation or core items like gas, food and utilities continues to expand

Growth does not pay for growth – meaning development will not offset costs to our community.

Who will pay for infrastructure, servicing and operational costs if Erin has uncontrolled growth – WE WILL!

Note: Go to our fiscal section of website as it shows how 2013 property tax rates are getting worse relative to our neighbors…our fiscals are deteriorating

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One thought on “Erin’s Fiscal Situation Continues To Deteriorate

    Miki said:
    March 15, 2014 at 6:51 pm

    What a great article. Our fiscal situation is deeply troubling. We need to ask Council to stop this craziness!

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