Accumulated debt by Woodstock is much smaller than Shakespeare Festival city
By
Mark Schadenberg - blog
Everybody
owes some money to someone for something.
My
mortgage payments remind me of that every two weeks.
The
federal coffers are in debt by an astounding number that does not allow for
enough zeroes in this sentence.
The
provincial total debt is currently over $270 billion. See the link below, which
discusses the desire of the Canadian Taxpayers Association, to beg the spenders
at Queen’s Park to reign in their expenses and declare a strict plan to pay
back the deficit.
Oddly
enough, the Ontario government requires both the educational and health care
systems to balance their books – or in better terms to not over-spend on the
dollars approved and allocated to their churning balance sheets.
Municipalities,
however, are required to live by the province’s created and legislated
municipal act, but cities are certainly permitted to carry debts.
Here’s
my comparison.
In
2012, Woodstock’s total debt was under $10 million – estimated to be $8.1
million. Is Woodstock progressive, and always staying ahead of the sewer and
road repair / building projects? Woodstock is most certainly conservative and
it’s safe to say that because after the bill to pay for the Southwood Arena (the
1996 circa community complex includes two arenas, gymnastics centre and
community hall) is fully paid over the next few months and that debenture is technically
off the books (municipal facilities always operate as a money-losing venture),
one could say The Friendly City is in a terrific financial situation
When
you factor in additional tax dollars flowing into the vault at 500 Dundas
Street through new commercial concerns, that’s even better news.
Now,
let’s compare the Friendly City to the Shakespeare Festival City of Stratford,
which is about the same population.
Stratford
entered its 2014 budget talks with a total debt reported at $93 million. That’s
correct as you will read in the Stratford Beacon-Herald story included here
from February of last year.
So,
Stratford has a total debt 11 times the size of Woodstock. The quick conclusion
is this: Residents of Woodstock should stop complaining about high municipal
property taxes as a chunk of that sum is directed provincially for education,
another chunk is directed to the County of Oxford and a few coins are left over
to operate Woodstock. Duplications in the City / County tug-of-war could be
addressed (Devonshire Avenue, for example, is a county road in the city)
Stratford
– on the other hand – must get its spending under control. Below are three
links (in order) to stories about Stratford budget deliberations. Their per
capita debt is the highest among 86 Ontario centres analyzed by the BMA. In
easier terms, each person (including children) in Stratford would have to pay
an additional $2,000 to retire the community’s debt. Ouch !
The
press clipping below does note that Stratford is attempting to eliminate $5 million
per year – slowly meandering out of their hole.
As
for Ontario and our woes in that ledger, here’s what Candice Malcolm of the Canadian Taxpayers Association said Monday. “It’s difficult
to even imagine a number this big but this is what our government owes, this is
what we owe, thanks to overspending and mismanagement from our provincial
government.”
()()()()()()()()()()()()
Stratford
to keep score on whopping debt of $2,000-plus per person
Donal O’Connor, Beacon-Herald
Wednesday, February 20, 2013
STRATFORD -- Taking a cue from a citizen who recently commented on
Stratford's budget, city treasurer Andre Morin will be working on some kind of
a scorecard that will keep the public informed about the municipality's
long-term debt.
As referred to in the current budget, that debt will be $93.4
million at the end of this year. Morin informed the finance subcommittee
Tuesday the 2012 BMA study places Stratford at the top of a list of 86 Ontario
municipalities based on per capita level of debt.
The BMA comparison is for fiscal 2011 and the per capita amount
reported for Stratford is $2,004.
"We're by far the worst," Morin told the subcommittee,
referring to the listing.
(Port Hope is about the same as Stratford and Toronto is third on
the list at $1,687.)
But Morin explained infrastructure debt and other asset
expenditures are important in making a proper comparison.
"Our infrastructure could be falling apart," he said.
Morin said he doesn't have all of the information he would need to
make a good comparison with other municipalities. He'll be looking at what
other municipalities do and try to come up with a comparative way of
illustrating the city's debt.
"Is keeping taxes low the proper way to run a
municipality," he asked, suggesting that if money isn't put into capital
reserves "something suffers."
He told the subcommittee he would do some analysis and report back
to council in May.
CAO Ron Shaw pointed out the city (city hall pictured below) is paying off about $5 million
per year and has been able to manage its debt.
Citing as an example development in the city's west end, he noted
that some of the debt is supported by development charges coming in.
Adding his perspective, Coun. Frank Mark said the city has taken
advantage of "30% and 50% dollars" -- a reference to federal and
provincial grants -- and attractive interest rates in financing infrastructure.
"I don't think we want to lose sight of that. In the long
term it should be beneficial to the community," he said.
The discussion was prompted by recent comments on the city budget
from Bob Savage who suggested the city provide "a quarterly
scorecard" showing the municipality's debt, and indicating on-going
reductions or increases.
LINKS:
http://www.stratfordbeaconherald.com/2013/11/26/no-new-debt-in-budget-plans
http://www.stratfordbeaconherald.com/2014/01/28/residential-tax-up-13
http://www.stratfordbeaconherald.com/2014/01/17/60-more-for-average-home
PROVINCIAL DEBT LINK
When you're ready to buy in Woodstock / Oxford, call me
Mark
Schadenberg, Sales Representative
Senior
Real Estate Specialist (SRES designation)
Royal
LePage Triland Realty
757 Dundas
St, Woodstock
www.wesellwoodstock.com
(519) 537-1553,
cell or text
Email:
mschadenberg@rogers.com
Twitter:
markroyallepage
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