Chris Clegg
The major issue facing each new council whether elected by acclamation or the wish of the voters is pretty obvious: high taxes combined with economic survival.
This newspaper has documented the financial struggles of the M.D. of Smoky River, Village of Donnelly, Town of McLennan and Town of High Prairie. There are serious problems facing residents including high taxes and/or declining revenues, such as the M.D. of Smoky River has cited.
If the M.D. does not come up with a solution to the millions of dollars in unpaid taxes from the oil and gas industry, the pain will be immediate and swift for many residents.
The fact is, prices are increasing on everything. It eventually filters down to the municipalities, who have to pay more for product, services and/or wages. Without increasing industrial revenue, there is only one way to get the money they need: higher taxes from the people.
Currently, if the M.D. of Smoky River and Big Lakes County did not contribute cash to the villages and towns within their boundaries, each would suffer tremendously. The villages and towns need the money for survival.
Coupled with the continual downloading from the provincial government, the situation only gets worse.
There are only two solutions to the problem: increase revenue or cut spending and subsequently, services.
Increasing revenue can be accomplished through a user pay system for all services. Some services are subsidized. It can be argued, however, that increasing fees for services is simply another tax. The person paying the bill does not care where the money comes from, he only cares that money has to be spent to live. His bottom line does not change.
The second in increasing revenue through industrial taxation increases. Not adding tax to existing industry but increasing the number of businesses and taxation revenue to “spread the pain” of paying taxes among more businesses.
In the last year or so, Northern Sunrise County, Town of McLennan and Town of High Prairie have implemented tax policies to encourage new businesses.
Business owners are not stupid. They investigate whether a business can be profitable. They look at expenses and project revenue to see if they can survive. High Prairie and McLennan’s industrial tax incentives are nice but they are expensive places to live. Many new arrivals recognize that.
Finding a balance between taxation and providing services to the people is a tough act. We all want nice things at the cheapest price possible.
Given today’s world and rising costs, it might be time to expect a little less. The financial hole many villages and towns have dug themselves is like climbing out of the Grand Canyon wearing only a pair of flip-flops.
Some people are willing, however, to tackle the problems. We wish them the best of luck!