Members of Huntsville Council, like every municipal government in Ontario, are on the cusp of completing the first half of their current mandate. So, it is a fair question, I believe, to ask how they are doing.
Before we go into that in depth, let me say that I believe we have good people on our municipal council in Huntsville. I know all but one of them personally, and I believe they are all there for the right reason, and that is to always act in what they believe to be in the best interest of the people they serve.
That doesn’t mean they are always right or that they should not be held accountable for the decisions that they make.
Perhaps I come to this from a different perspective, having spent close to twenty years in municipal politics, four of those as District Chair and six as Mayor of Huntsville.
For one thing, I don’t believe in council-bashing. I saw too much of that during my time in office, and I saw too many people vilified and personally attacked because someone else disagreed with them. It was seldom effective and often damaging.
It is important, though, for elected officials to listen to the people they serve and to be constantly aware of the impact of their decisions on so many individuals and families.
It is also important for the media, especially local media, to monitor what is happening at the municipal level and to offer a forum for discussion and accountability which is important to any democratic process.
At a General Committee meeting last week, councillors approved two-year consolidated budgets for 2025 and 2026 which takes them to the end of their mandate. The projected tax increase for 2025 is 4.84 per cent and for 2026, 4.87 per cent. These decisions are to be ratified at a meeting of Council next week.
Whether those projected increases are fair and whether they will actually stay at that level remains to be seen. What council will have done however, in making these projections, is to allow an assessment of their spending for the entire four years of their mandate.
So, Let’s do that.
With these projections and a deep dive into the Town’s website, we are able to see a bigger picture and come to the following conclusions.
In 2022, at the beginning of this council’s term, annual operating expenses for the Town of Huntsville were $17.8 million. In 2026, operating expenses are projected to be $25.3 million, which is an increase in spending of about $7.5 million.
Not included in this increase are any funds spent from reserves, including $400,000 taken out from the Centre Street Environmental Fund for other purposes in 2024 and an additional amount of more than $300,000 to be taken out in 2025.
The property tax levy will have increased by at least 26.89 per cent by the end of this council’s mandate, combining increases of 6.5 per cent in 2023, 10.68 per cent in 2024, 4.84 per cent in 2025 and 4.87 per cent in 2026.
The cost to the Town for salaries, pensions, and benefits in 2022 was $13.4 million. At the end of 2026, the cost will be $19.3 million, an increase of 43 per cent over four years. It should also be noted that of the $7.5 million increase in expenses between 2022 and 2026, $5.8 million of that is for salaries, pensions, and benefits.
So, the question is, are we okay with all of that, or is this a council that is spending too much money? Is it fiscally responsible to have this level of increased spending over four years?
No doubt, we will hear that some of this increased spending by Huntsville Council came about from the aftermath of the COVID-19 pandemic. There may be some truth in that, but it doesn’t change the fact that the increased costs are there and therefore an added burden on taxpayers.
In family life, when a crisis occurs, other expenses have to be rationalized to fit the reality of what can be afforded. We should expect the same from our elected officials.
Affordability is becoming a huge issue and every level of government, including at the municipal level, needs to be aware of it when determining what taxpayer’s money will be spent on.
A recent article from the Fraser Institute published some data from the Canadian Consumer Tax Index titled ‘Taxes versus the necessities of life.’ I found it a bit of an eye-opener, to put it mildly.
The report said that the average Canadian family now spends more of its income (43%) on taxes than basic necessities, such as food, shelter, and clothing combined (35.6%). It also says that in 2023, the average Canadian family earned an income of $109,235 and paid total taxes, income, HST, gasoline, and so on, of $46,988.
There is a real risk here that all levels of government, including municipalities, are out of touch with what many people are dealing with in order to keep their heads above water.
Municipal politicians may believe that increased municipal expenses are but a drop in the bucket compared to levels of taxation by the provincial and federal governments. But it is our local elected representatives who are closest to the grassroots in their communities, and they should know that the cloth must be cut to fit the economic reality for so many people within their jurisdiction.
Outrageously expensive outdoor washrooms, whatever the circumstances, simply send the wrong message and just don’t cut it when many families are struggling to put food on the table. A 43 per cent increase in staffing costs over a four-year period is also pretty hard to swallow.
Tough fiscal responsibility needs to start at the local level. Members of Huntsville Council may be able to defend their high level of spending over a four-year period. However, this means little if the people being asked to pay are at the breaking point.
In the recent United States presidential election, the ballot question turned out to be ‘Are you better off now than you were four years ago?’ The resounding answer was “no.”
In the municipal election in Huntsville two years from now, the ballot question will be the same. And the answer, in my view, will not be based on how many parks we have or whether we have summer ice in the arena or whether every planning decision made by council, was the right one.
In today’s environment, when many are struggling simply to make ends meet, I believe the bottom line for them will be about how much money has been taken out of their pockets by taxation, affecting their ability, little by little, to provide an acceptable lifestyle for their families and security for their future.
In the two years they have left, Huntsville Council needs to think very hard about that.
Hugh Mackenzie
Hugh Mackenzie has held elected office as a trustee on the Muskoka Board of Education, a Huntsville councillor, a District councillor, and mayor of Huntsville. He has also served as chairman of the District of Muskoka and as chief of staff to former premier of Ontario, Frank Miller.
Hugh has also served on a number of provincial, federal and local boards, including chair of the Ontario Health Disciplines Board, vice-chair of the Ontario Family Health Network, vice-chair of the Ontario Election Finance Commission, and board member of Roy Thomson Hall, the National Theatre School of Canada, and the Anglican Church of Canada. Locally, he has served as president of the Huntsville Rotary Club, chair of Huntsville District Memorial Hospital, chair of the Huntsville Hospital Foundation, president of Huntsville Festival of the Arts, and board member of Community Living Huntsville.
In business, Hugh Mackenzie has a background in radio and newspaper publishing. He was also a founding partner and CEO of Enterprise Canada, a national public affairs and strategic communications firm established in 1986.
Currently, Hugh is president of C3 Digital Media Inc., the parent company of Doppler Online, and he enjoys writing commentary for Huntsville Doppler.
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Bill Beatty says
Needs Not Wants….The Tax Pit has a Bottom !