At the Dec. 10th. Committee the township disclosed that it reserves the right to use general revenues (ie our taxes) as a short term source of financing, when required.
Take for example the sewerage to Brechin and the Lagoon City Sewage Treatment Plant expansions. The township will use a mortgage to finance the net cost (total cost less subsidies from the township). This is no different that you or I when we purchase a home. Not too many have enough cash, so we borrow the difference. We save for a down payment. So does Ramara Township by over taxing us, and keeping any excess they don't spend in reserve funds. Ramara uses these reserves for their down payment, borrowing the rest.
What happens when you don't have enough $$ for your mortgage payment? We may have overdraft account that charges interest, or you borrow from family and friends. This is the difference between you and me, and Ramara Township.
Ramara proposed that users and development will fund their mortgage payments, but there are no quarantines that the pace of development will be sufficient. If Ramara doesn't have enough for a mortgage payment, it will dip into tax $$$ to make up the shortfall. Ratepayer taxes will provide "overdraft protection" for the township. If only we had the same access to interest free short term financing!
Taking tax $$$ for mortgage payments may result in not having money to fix roads, when they need to be fixed. It may mean that funding for cultural activities are delayed and programs cancelled.
At the same meeting it was disclosed by township officials that the municipal water and wastewater rates are not sufficient and from time to time they may be a need for a little ratepayer taxes financing, until the township receives quarterly payments from users. Why doesn't the township adopt a system of monthly payments?
I would like to have the township adopt a policy that clearly establishes and controls how and when general taxes can be used for internal short term financing. Such a policy would guide future decisions, and would reduce the potential for abuse. Such a policy would take away Comrade Ricky's ability to something because it is not specifically stated that he can't do it.
Unfortunately Ramara's de facto leader, Comrade Ricky would not support any measure that would restrict his ability to do as he wishes, and council has a demonstrated history of not wanting to challenge any position that Comrade Ricky does not support.
Ramara's elected council needs to reassert it's supremacy over Comrade Ricky by enacting policies that regulate, monitor and control the actions of local government, so that provide the services that satisfy the needs of stakeholders, in Ramara.
Recent criticisms of this council as dysfunctional are the result of not establishing good policies to guide governance in Ramara. Comrade Ricky has used resulting vacuum to act however he feels. Council should take this freedom away from township staff by clearly defining what options they have, and those options they don't have.
A good place to start is defining acceptable uses for ratepayer taxes. In doing so municipal staff can create budgets that don't consider general taxes as an infinite resource!
