Friday, July 04, 2008

My Letter to Anne Patterson

On Wednesday, a small group of south Langley residents protested property tax rates. The Advance has the story here. Organizer Anne Patterson emailed me that morning and asked me about taxes. Here is my reply to her:
I think when one looks at the facts behind property taxes (and not simply the percentage increase--which, admittedly, looks ugly on paper) in the Township, a clearer picture emerges. It would have been great to have had you at some of our budget meetings, the open houses, or the public hearings before decisions were made on the 2008 budget.

Here are some facts that I have kept in mind when considering Township budgets over the past three years:

1. Township tax rates are still lower than Abbotsford's, Langley City's, Delta's, and other communities. In 2007 (the latest stats available), we see the following municipal mill rate (that is, the amount per $1,000 of assessed property value):

Abbotsford 4.49
City of Langley 3.734
New Westminster 3.7295
Maple Ridge 3.6338
Pitt Meadows 3.3515
Delta 3.177
Township of Langley 2.9138

Even with the 5.95% increase, we are still lower than all of these communities, most of which saw increases of more than 4%.

The biggest cost driver in tax increases are assessed values, as many rural properties have seen their worth skyrocket due to the real estate boom. We adjust the tax rate every year to make sure it goes down by the average amount a property increases, but some owners have seen their properties become worth much more than the average increase.

2. Property tax increases over the past three years have gone to public safety improvements. The tax increases from this term have generated about $9.5 million in revenue to the Township. The Township has spent $9.5 million more on police and full-time firefighters.

3. Yes, property taxes across the region have increased faster than the rate of inflation, as measured by the Consumer Price Index (CPI). The CPI is a measurement Statistics Canada uses to gauge the effect of inflation for Canadian families. But the CPI measures things families purchase--gas, groceries, clothing, pets, housing, TVs, prescription drugs, and other family items that the Township doesn't buy. The Township buys mainly fuel, labour, and construction materials--costs that have gone up far more than the CPI would take into account. Construction costs alone have gone up roughly 1% a month over the past couple of years.

4. If a resident doesn't receive municipal water, garbage or sewer service, they don't pay for it. Those are done through utilities which only charge the service users. Well owners, for example, don't get charged for water infrastructure because it would be grossly unfair.

I agree we must keep taxes as low as possible, and I am committed to doing so. At the same time, we owe it to future generations of Langley residents to build the infrastructure that will keep them safe and healthy (nothing will ever get cheaper--if only the Council of the 1960s had followed Abbotsford's example and put water mains in the rural areas, we wouldn't have had the big well meter debate!), and we have a clear mandate from our current residents to improve public safety (police and fire). We have to balance both the present and future needs of the Township.

I hope this helps clarify some of the issues for you, Anne. Thank you for the e-mail and the chance to explain a little bit of the Township's situation. If you or your group have further questions, please don't hesitate to contact me.

Jordan Bateman
Councillor
Township of Langley

A community like Langley has many different viewpoints on an issue like taxation. Look at my post on medians, for example--some people want the trees and plants, even if it costs more to maintain long-term. Some want the public art, which would be cheaper to maintain but offer a different kind of beauty than the cherry blossom trees. And others wants cement or concrete to save the maximum amount of money.