Beyond the money…beyond the need for a fair tax solution…Oakland-Wawanesa council has to start showing respect for rural residents.
I’m hoping it happens Friday May 2, when I appeal again for council to correct a tax imbalance in place since amalgamation and shift $139,872 in rural taxes onto Wawanesa ratepayers.
You can read more about the $139,872 fair tax solution here.
Don’t hold out hope that council will comply. Since amalgamation, concerns brought to council by rural residents and their elected representatives have been summarily dismissed. See a list here.
A History of Tax Unfairness
Since amalgamation, taxes paid by Oakland residents have increased nearly 40%, while taxes paid by villagers through Wawanesa and At Large levies have dropped more than 20%.
Small increases in the rural mill rate bring substantial dollars, which have been used to offset large drops in Wawanesa taxes.
By increasing the rural mill rate by 0.7, council can raise $100,000 in new taxes. By contrast, Wawanesa’s mill would have to jump 4.39 mills to bring in that $100,000.
Council has been using Oakland as a cash cow and this financial disrespect will only get worse if council adopts a single or harmonized mill rate, as advocated by Wawanesa councillors since amalgamation and more recently by the head of council.
For example, if we moved from differential mill rates to a harmonized rate in 2019:
- $1,815,933 in taxes need to be raised
- Harmonized mill rate would be 10.885
- Oakland would increase from 10.145, Wawanesa would drop from 11.423
If we had moved to a harmonized rate in 2015:
- $1,423,119 in taxes had to be raised
- Harmonized mill rate would have been 11.512
- Oakland would have increased from 10.133, Wawanesa would have dropped from 18.07
How has council managed to narrow that very wide gap between Wawanesa and Oakland mill rates since 2015? Simple. Oakland property values increased by 36%. That $38-million jump is worth more than the total portioned assessed value of all property in Wawanesa, which is about $23-million. Council used that tax windfall to leverage mill rates in the village’s favour.
Do The Right Thing
Council must recognize and accept that the current system places a disproportionate tax burden on rural residents and a harmonized mill rate will further punish Oakland. Clearly, we need a fair tax solution to restore balance and respect.
Council can use a number of options to fix the problem, including special levies, local improvement taxes, or converting Wawanesa into a Local Urban District and taxing urban and rural bases accordingly.
All residents want to believe council is acting in their best interests. It’s now up to council to fix the tax imbalance and demonstrate through action that council respects and fairly represents all residents. Start Friday by fixing the 2019 budget.
Regards,
-Glen