January 2012 Inside this issue: GM’s Report Member Spotlight Event Reviews Calendar of Events Business Books: Recommended Reading Social Media and its Overall Effectiveness
CHAMBER at a glance
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a publication of the Brandon Chamber of Commerce
PRESIDENT’S MESSAGE Looking for efficiency and value in increased taxes
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s we enter into a new year, hopefully refreshed and ready to go following a short break, we begin to focus on the year ahead. There are a number of issues and items to deal with as a carry over from 2011.
dollars. At some point, we need to begin this process and it appears that this is a first stance to address that concern.
I believe that a tax freeze may not be in the best interest of our city. We have a number of issues that need to be First and foremost is the issue of taxes. invested in, including current repairs to We are definitely going to see some sewers and streets and preparation for higher taxes in 2012, even before we see expansion. It is important as a Chamber what happens with the school division and a community to increase retail increases. For some, the expected opportunities, and to diversify the tax Chamber stance is to not increase taxes, base. Leading up to the public but a more accurate statement would deliberations, the Chamber of be that we look for efficiency and value Commerce met with the Mayor and City for tax dollars. We as an organization Councillors to discuss the infrastructure believe municipal spending must be held shortfall. The one caution we have in check and we challenge governments issued is that if there is to be any to be more efficient in their operations. increase in taxation, there needs to be We expect our political leaders to be value for services, and be mindful of the very respectful with the revenues they capacity of citizens to pay. The have available. Each and everyone of deficiency in infrastructure can not be our own businesses struggle with the made up in one, two or even three years. same challenge as we continually look By now you have heard that the mill rate for the right balance between bottom will grow by an additional 5.28% to make line results and putting enough away for it balloon to 21.02%. In a year when future opportunities. It appears that the properties have been reassessed, this City has not done a good job of the “put means that even without the 5.28% a little away” part as we face an increase, there would have been more in infrastructure deficit of $165 Million the city coffers thanks to the provinces
assessment. The municipal taxable assessment has increased by $231 million (14%) to a total property value of $1,933 million. That means the city is already working with a larger tax base, and traditionally the mill rate is not raised in years when there is an assessment. This year the circumstances are different. What does the property tax increase mean? That is difficult to say because the overall impact will be different for each property owner. In a Financial Post article published on January 29, 2008 author Kevin Gaudet, wrote that “when paying taxes one cares less about the rate paid or the details of the complicated formula used. Instead, one cares about how much money is being taken year over year. That is the only comparison relevant to a taxpayer, not whether the rate is 0.82 in one city versus 1.15 in another city.” How much more will this all cost once (Continued on page 8)