27 September 2010

Value for our Money
In life we   look for good value for the money we spend.   This is based not only on the minimum purchase price (economy) but also on the maximum efficiency and effectiveness of the purchase.  

Ottawa spends more than it takes.  This results in annual deficit .   This deficit , we are told is due to stimulus spending to prop up our economy. This increases the debt load of the country. Deficit adds to debt, adds to debt, adds to debt.   The total Federal debt is around $543 billion and the annual budget deficit was close to $50 billion in 2009.  

Whether we are getting the  ” value for our money” for this deficit spending is troubling to many – look at the billion plus dollars spent on G8 and G20 meetings a few months ago.

How will this deficit and debt will be reduced in the years to come? The   Feds will download debt on the provinces to show a surplus for themselves and then Provinces will download that to the Municipalities.   Remember the last time how the Municipalities were saddled with downloaded services when senior Governments wanted   to reduce their budgetary deficits.

In order to reduce the current annual deficit and national debt, the Municipalities will be left to fend for themselves with many extra services downloaded . This will result in increased Property taxes on the poor taxpayers and in addition many indirect taxes (user fees etc) and financial burden (like reduction in health care dollars for our hospital) will occur.  

We in Deep River are already burdened with higher taxes compared to our neighbours (as reported by our 2010 Municipal Budget document).

When the country moves to reduce the current deficit and heavy debt burden , fasten your seat belt,   as we all will be called upon to pay more higher property taxes. This will aggravate the financial situations of many (including seniors ). Due to the recession and the economy not performing well, many seniors are losing their invested life savings and cannot quite recover due to doldrums in the market .Further the saving interests are practically nil.

Deep River has a window of opportunity to prepare for such an eventuality and to insulate its population from any adverse impact on property taxes (or the level of services provided) from such a scenario.   Remember it happened before !          

We need to examine whether   we can and should   amalgamate with the Town of Laurentian Hills .   We are joined “at the hip” metaphorically   speaking – geographically and with intertwining family   ties . This will lead to better services with reduced cost for both the Municipalities and thus decrease in the property taxes .  

We also need to seriously look at various services that we enjoy in our Town.   We are proud of the excellent services that we receive   but again it behoves on our elected leaders to really investigate the feasibility of any alternate and cost-effective mode/method of delivery of such services.  

We need to assure ourselves that we are getting optimal value for our money.

Since my last posting in the NRT (on Deep River taxes) on 8th September 2010 , I have been flooded with many positive support from area residents.   Our present property taxes can be reduced substantially if we explore the alternate and also to do away with services which may not be proving useful.

Can we get the “value for our money” from our elected Councillors and representatives?   We need to hear from them before deciding on whom to elect.   I have observed  the inscription   “Value For Money” on election posters by one candidate, which is exciting. Hopefully this is followed through by the new Council.  

We need a Council which is focused to obtain optimal value for our money – which may require   restructuring of the provision of some   Municipal services and also possibly the very structure of the Council.  

Pravin Shah