Hi Ward 6!

For some reason Edmond came over and posted on my blog yesterday, so I take that as an inivation to his.

Here is something for Ward 6 to think about. Chelsea Creek is projected to have 197 units. If they pay the average property tax of Chelsea ($2,300), that will provide just $453,100 in additional annual property tax revenue to the municipality. For the past 4 years, we have spent $2,000,000 more per year than the $7,000,000 currently received in property taxes financed through debt.

So given that the income from even a project like Chelsea Creek which is to be developed over 5 years will only cover 25% of the annual overspending, how can anyone possibly think we can continue like this?

What really worries me is that the impact of the ever increasing debt and the additional debt burden of the arena and sewers in the centre village will ultimately result in the people of Hollow Glen leaving Chelsea to join Aylmer once our taxes end up higher than in Gatineau.

This will drive Chelsea taxes even higher.

Imagine we get up to the $40 million debt mentionned by Jean Perras ? That would be about $1.5 million in interest per year. More than all the taxes of Hollow Glen and Chelsea Creek combined.

Some Edmond please enlighten us on what you intend to do about this.

Woohoo! I got traffic on my blog! Thanks guys…even if you are both candidates and unable to vote for me!

Geoff:
Thanks for the accounting perspective but I’m still not convinced.
You wrote For the past 4 years, we have spent $2,000,000 more per year than the $7,000,000 currently received in property taxes financed through debt.
As you know, the city, by law, cannot have a deficit (or a “profit”). In the past 4 years, the city has consistently spent no more than it has collected in revenues. Any surplus has gone to contingency funds or to service the debt. So while it may have more expenses than revenues directly attributed to property taxes, it still has revenues that exceed expenses. I’m no accountant, but what matters to me is that a) we spend within our means and b) we don’t take on more debt than we can afford to pay back. I see no evidence there we’re heading in that direction.
Then you wrote Imagine we get up to the $40 million debt mentionned by Jean Perras ? That would be about $1.5 million in interest per year. More than all the taxes of Hollow Glen and Chelsea Creek combined.
This is just fearmongering. The 40M$ is a fictitious figure used to illustrate a point, not a target. I used a similar number, to illustrate what the province would consider a “high debt load” and within minutes Richard Herron was calling it “Edmond’s 45 million dollar credit card.” That’s plain wrong. Simply go through the records at the Ministère des affaires municipales’ website and you’ll see that there is nothing unusual or alarming about Chelsea’s finances or its infrastructure investments.
We need to be calm and realistic about finances. And your remark about Hollow Glen joining Aylmer statement is pure politics…Hollow Glen’s taxes are lower than the rest of Chelsea so before that happens, you’ll be seeing an exodus towards Cantley and Wakefield in your district.

Michael: thanks for the “vote” of confidence!

Hey! This is like our first council meeting! Uh…except that at least one of us won’t be there.