Meeting ponders user-fees to solve tax rate infrastructure puzzle

By Jennifer Hoegg

The Hants Journal/NovaNewsNow.com

How do we pay for cracking water pipes and crumbling sidewalks? That was a key topic discussed at Windsor’s Jan. 23 town hall meeting. A rash of water main breaks this winter is just one example of the town’s aging infrastructure.

Many pipes and sidewalks are in dire need of repair. Add to that, plans for a new fire station and sewage treatment, the need to spend on infrastructure is clear.

With the bulk of the town’s finances dependent on taxes, Council has limited options to cover increasing costs: it can raise taxes, cut services or find new sources of revenue. Keeping tax rates the same but cutting services might keep the Town ‘in the black,’ but, as one resident at the meeting stated: “I don’t think you can achieve [positive growth] by lowering taxes unless you can find revenue elsewhere. If town is going to grow, I think you have to find ways of financing it. I just don’t see the status quo as an option.”

CAO Louis Coutinho said that, with 80 per cent of revenue coming from taxes, Windsor is more dependent on property taxes than most municipalities. This dependence means that the provincial cap on property assessments to the Consumer Price Index (CPI) will limit the Town’s future revenue. Coutinho pointed out, “CPI is based on bread and butter and daily goods, our services are mainly roads, asphalt etc. Sidewalk and curb renewal cost per km went up 150 percent between 1995 and 2004, while CPI only rose 21 per cent in same period.”

Mayor Anna Allen stated that the town is looking at ways of saving money in order to help cover increasing costs. “Now, when we do sidewalks and streets we do underground upgrades at same time to save money now and future.” Cost sharing with West Hants and Hantsport is also helping.

Council plans to maintain or lower taxes so, if services are to be maintained, revenue has to be made up elsewhere. ‘Elsewhere” most likely means an increase in user fees.

Windsor seems to be well on its way to increasing fees in order to keep the town’s finances in shape. The recent introductions of a deed transfer tax, increased recreation fees and a fire services charge for tax-exempt properties are examples of the trend.

The efforts may keep property tax rates low, but many see user fees as just another tax increase. As Windsor resident Rob Frost said at the meeting “it doesn’t matter how you write taxes down.”