4 Sept 2010
Dear Editor
North Renfrew Times
Deep River, ON
North Renfrew Times
Deep River, ON
Letter to Editor
Please find attached my article titled “Budget Comparison of Local Municipalities ” for your publication under your “Letter to Editor” or ” Point to Ponder” section .
Many Thanks
Pravin Shah
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4 September,2010
Budget Comparison of Local Municipalities
Further to my “Letter to Editor titled ” New council must tackle high taxes” published in the NRT of 28 July 2010, I have done a little bit of reading / understanding and comparing the budgets of Deep River and adjoining Municipalities for the year 2010. This may help our new council to get a glimpse of our tax burden as seen by a citizen of the Town.
I have attempted here to give some data from this reading. The information is rather complex to understand and compare as each Municipality has its own unique needs . However, one can almost feel that Deep River citizens have been indulging in some Cadillac services for which we have to pay higher costs.
While Deep River has some seven (7) elected Councillors (including the Mayor) for a population of 4372 , Town of Petawawa has seven (7) for a population of 15522 , Town of Laurentian Hills has five (5) for a population of 2936 and Pembroke has nine (9) for a population of 14821.
The question which needs to be asked , does Deep River need seven (7) elected Councillors for our small population ?
Two municipalities have full time Fire Departments – Deep River and Pembroke – though Pembroke also has volunteer firemen in the Department team while Deep River does not. The Deep River Fire and Emergency Department has some ten (10) full time staff compared to Pembroke, which has 15 Full time staff augmented by volunteers. The 2010 budget for Deep River Fire Department is $1,085,453 which is some 15 percent (%) of total Deep River annual expenditure. This translates to some $242 per person residing in Deep River. The Pembroke Fire Department budget is $ 2,244,940 which is 8% of their total annual expenditure and works out to be $150 per Pembroke resident. Two Municipalities have volunteer Fire Departments . Town of Laurentian Hills has one (1) part-time Fire Chief and 39 volunteers and have annual budget of approximately $ 260,000 (less than 5% of their total annual expenditure) for their Fire needs .This translates to $ 89 per person residing in the Township. Petawawa runs its Fire Department with a volunteer Fire Chief and some 39 volunteer firemen and spends approximately $913,767 ( about 8% of its total budget) annually on its fire needs – which works out to be $ 59 per person.
Summary: Deep River spends 15% of its annual budget on its Fire and Emergency needs – which is roughly double percentagewise than what is spent in Petawawa and Pembroke and 3 times what is spent in the Town of Laurentian Hills.
Two Municipalities have full time Police Departments – Deep River and Pembroke. Deep River has some ten (10) full time and one (1) part-time staff while Pembroke has some 29 uniformed officers plus other staff ( I do not have numbers) . The 2010 budget for Deep River Police Department is a total of $1,453,231 (which is expected to reduce due to expected revenue income of some $367,778) – which translates to some 20% of total annual expenditure and works out to be approximately $330 per Deep River resident. The Pembroke Police Department 2010 budget is some $ 5,407,850 which is about 20% of their total annual expenditure and works out to be $365 per Pembroke resident. Compared to these two municipalities, Town of Laurentian Hills is serviced under contract by Ontario Provincial Police (OPP) spends about $346,569 for their policing needs – which is about 6% of their total annual expenditure and works out to be $118 per resident and Town of Petawawa has a budget of $1,633,139 for its policing needs which is serviced under contract by Ontario Provincial Police (OPP). Petawawa spends some 14% of their annual total expenditure on policing needs which works out to be $105 per Petawawa resident.
Summary: Deep River spends $330 per resident annually on police cost which is slightly lower than Pembroke policing cost but is roughly three (3) times more than what is spent by Town of Laurentian Hills as well as by Petawawa.
If I read the budgets correctly, Deep River spends about $116 net per resident on recreation while Petawawa spends $68 per resident and Pembroke’s net cost is only $19 per resident.
Frankly reading and deciphering of budgets documents is a difficult task especially for a retired engineer like myself and there could be a possibility of errors or misunderstanding in the data collected but the conclusions seem quite obvious.
The provision of the above services by the Municipalities leads to Deep River 2010 tax rate to 0.01027309 for residential property and 0.01864258 for Commercial. However, Petawawa tax rate is 0.00276666 for residential property and 0.00502066 for commercial property. Thus Petawawa tax rate is much lower – 73 % lower compared to Deep River for both residential & commercial property. Both Deep River and Petawawa enjoys “payment-in-lieu of taxes” – Town of Deep River from AECL and Town of Petawawa from the Army base.
While Pembroke residential tax rate is 0.01648376 and commercial is 0.03319163. The tax rate is about 80% higher in Pembroke compared to Deep River for both residential & commercial property Town of Laurentian Hills tax rate is 0.00749441 for residential property and 0.01360011 for a commercial property. Tax rate is some 27% lower in the Town of Laurentian Hills compared to Deep River.
Though Town of Laurentian Hills does not get much ” payment-in-lieu of taxes “, its tax rate is much lower than Deep River due to mode and style of services provided.
This comparison highlights different modes and styles of services each Municipality supplies according to the local needs and preferences of the citizens. It seems there is room for some changes especially in the delivery of fire and policing services in Deep River – which could allow flexibility to lower the tax rate to at least what is in Petawawa.
At present time, Deep River has some 43 full time staff, 24 part-time staff and hire some 64 students over a year while Petawawa has 31 full time staff with some 28 casual staff (including students over a year) . The staffing in Deep River is a reflection of our full time departments.
Further, amalgamation of Town of Deep River & Town of Laurentian Hills could allow advantage of ” scale of economy ” and reduce duplication of administrative, equipment procurement and servicing , and other costs. It is known that many people residing in either area are intertwined psychologically and at many times geographically.
In the end, I would like to mention that having reviewed four (4) budget documents , I have found the Deep River Budget relatively more clear to understand (people friendly) and also more transparent and frank.
I believe that the Town is run quite professionally and efficiently within the parameters that both the Council and the Town Officers are faced with.
However, there is a need to look at a new way for delivery of services without compromising safety or efficiency. The new Council has an opportunity and responsibility to look at the tax burden and be bold enough to think re-structuring – which is not an easy task and will take determination and visionary approach with a good leadership from whoever is elected to be the mayor of the town.
Pravin Shah
Budget Comparison of Local Municipalities
Further to my “Letter to Editor titled ” New council must tackle high taxes” published in the NRT of 28 July 2010, I have done a little bit of reading / understanding and comparing the budgets of Deep River and adjoining Municipalities for the year 2010. This may help our new council to get a glimpse of our tax burden as seen by a citizen of the Town.
I have attempted here to give some data from this reading. The information is rather complex to understand and compare as each Municipality has its own unique needs . However, one can almost feel that Deep River citizens have been indulging in some Cadillac services for which we have to pay higher costs.
While Deep River has some seven (7) elected Councillors (including the Mayor) for a population of 4372 , Town of Petawawa has seven (7) for a population of 15522 , Town of Laurentian Hills has five (5) for a population of 2936 and Pembroke has nine (9) for a population of 14821.
The question which needs to be asked , does Deep River need seven (7) elected Councillors for our small population ?
Two municipalities have full time Fire Departments – Deep River and Pembroke – though Pembroke also has volunteer firemen in the Department team while Deep River does not. The Deep River Fire and Emergency Department has some ten (10) full time staff compared to Pembroke, which has 15 Full time staff augmented by volunteers. The 2010 budget for Deep River Fire Department is $1,085,453 which is some 15 percent (%) of total Deep River annual expenditure. This translates to some $242 per person residing in Deep River. The Pembroke Fire Department budget is $ 2,244,940 which is 8% of their total annual expenditure and works out to be $150 per Pembroke resident. Two Municipalities have volunteer Fire Departments . Town of Laurentian Hills has one (1) part-time Fire Chief and 39 volunteers and have annual budget of approximately $ 260,000 (less than 5% of their total annual expenditure) for their Fire needs .This translates to $ 89 per person residing in the Township. Petawawa runs its Fire Department with a volunteer Fire Chief and some 39 volunteer firemen and spends approximately $913,767 ( about 8% of its total budget) annually on its fire needs – which works out to be $ 59 per person.
Summary: Deep River spends 15% of its annual budget on its Fire and Emergency needs – which is roughly double percentagewise than what is spent in Petawawa and Pembroke and 3 times what is spent in the Town of Laurentian Hills.
Two Municipalities have full time Police Departments – Deep River and Pembroke. Deep River has some ten (10) full time and one (1) part-time staff while Pembroke has some 29 uniformed officers plus other staff ( I do not have numbers) . The 2010 budget for Deep River Police Department is a total of $1,453,231 (which is expected to reduce due to expected revenue income of some $367,778) – which translates to some 20% of total annual expenditure and works out to be approximately $330 per Deep River resident. The Pembroke Police Department 2010 budget is some $ 5,407,850 which is about 20% of their total annual expenditure and works out to be $365 per Pembroke resident. Compared to these two municipalities, Town of Laurentian Hills is serviced under contract by Ontario Provincial Police (OPP) spends about $346,569 for their policing needs – which is about 6% of their total annual expenditure and works out to be $118 per resident and Town of Petawawa has a budget of $1,633,139 for its policing needs which is serviced under contract by Ontario Provincial Police (OPP). Petawawa spends some 14% of their annual total expenditure on policing needs which works out to be $105 per Petawawa resident.
Summary: Deep River spends $330 per resident annually on police cost which is slightly lower than Pembroke policing cost but is roughly three (3) times more than what is spent by Town of Laurentian Hills as well as by Petawawa.
If I read the budgets correctly, Deep River spends about $116 net per resident on recreation while Petawawa spends $68 per resident and Pembroke’s net cost is only $19 per resident.
Frankly reading and deciphering of budgets documents is a difficult task especially for a retired engineer like myself and there could be a possibility of errors or misunderstanding in the data collected but the conclusions seem quite obvious.
The provision of the above services by the Municipalities leads to Deep River 2010 tax rate to 0.01027309 for residential property and 0.01864258 for Commercial. However, Petawawa tax rate is 0.00276666 for residential property and 0.00502066 for commercial property. Thus Petawawa tax rate is much lower – 73 % lower compared to Deep River for both residential & commercial property. Both Deep River and Petawawa enjoys “payment-in-lieu of taxes” – Town of Deep River from AECL and Town of Petawawa from the Army base.
While Pembroke residential tax rate is 0.01648376 and commercial is 0.03319163. The tax rate is about 80% higher in Pembroke compared to Deep River for both residential & commercial property Town of Laurentian Hills tax rate is 0.00749441 for residential property and 0.01360011 for a commercial property. Tax rate is some 27% lower in the Town of Laurentian Hills compared to Deep River.
Though Town of Laurentian Hills does not get much ” payment-in-lieu of taxes “, its tax rate is much lower than Deep River due to mode and style of services provided.
This comparison highlights different modes and styles of services each Municipality supplies according to the local needs and preferences of the citizens. It seems there is room for some changes especially in the delivery of fire and policing services in Deep River – which could allow flexibility to lower the tax rate to at least what is in Petawawa.
At present time, Deep River has some 43 full time staff, 24 part-time staff and hire some 64 students over a year while Petawawa has 31 full time staff with some 28 casual staff (including students over a year) . The staffing in Deep River is a reflection of our full time departments.
Further, amalgamation of Town of Deep River & Town of Laurentian Hills could allow advantage of ” scale of economy ” and reduce duplication of administrative, equipment procurement and servicing , and other costs. It is known that many people residing in either area are intertwined psychologically and at many times geographically.
In the end, I would like to mention that having reviewed four (4) budget documents , I have found the Deep River Budget relatively more clear to understand (people friendly) and also more transparent and frank.
I believe that the Town is run quite professionally and efficiently within the parameters that both the Council and the Town Officers are faced with.
However, there is a need to look at a new way for delivery of services without compromising safety or efficiency. The new Council has an opportunity and responsibility to look at the tax burden and be bold enough to think re-structuring – which is not an easy task and will take determination and visionary approach with a good leadership from whoever is elected to be the mayor of the town.
Pravin Shah