Being responsible to taxpayers

No one likes paying taxes, but most realize that property taxes provide valued services needed for our day-to-day living. Some politicians propose a zero tax rate in advance of the budget review, regardless of inflationary pressures that increase costs. Zero tax makes for a great sound bite, but it is politically motivated, irresponsible and misleading the public.

Municipalities face cost increases as do homes and businesses. Volatility in commodities can add significant costs to the budget. For example, a penny increase in electricity would increase the town’s budget by about $230,000 for the 56 town-owned buildings.

Municipal staff is skilled in assessing the community’s short-and long-term needs with a budget that will implement existing and proposed services. Elected officials debate and refine the projected budget needs including costs for growth, inflation and an allowance for unplanned items (e.g., emerald ash borer) with reserve fund accounts. The total projected cost less all revenue sources is used to set next year’s tax rate.

Council may choose to reduce the impact of an unusually high tax with funds from the tax stabilization reserve. However, when borrowing from the reserves, the same amount of money is needed each year thereafter to maintain what has been subsidized. A continued tax rate subsidy may not only risk depleting the reserves, but may result in reduced service levels or increase taxes for future generations.

Responsible government should provide valued services and not pass current tax burdens on to our children.

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