No bells or whistles in Holyrood budget, says Woodford

By Craig Westcott/December 30, 2022

Crafting Holyrood’s 2023 budget was very difficult, allowed councillor Laura Crawley, who as co-chairperson of the Town’s corporate services committee was tasked with delivering the document.

“We looked at umpteen different ways of doing this and ultimately we need some source of revenue to combat all the work that needs to go into infrastructure and public works, recreation and everything else we see fit for our town and that everyone expects,” said Crawley. “So even though it is super difficult, and I really did not in the beginning want to raise taxes, I felt like this is the only way that we could provide a sensible source of revenue.” 

Mary Gary Goobie thanked council and staff for working so hard on the plan.

“This is my 23rd Town of Holyrood budget,” said Goobie. “And I can honestly say it was the most challenging and difficult. And I dealt with many challenging budgets during those years.”

Goobie said the changes in the economy the past year were unpredictable and created a perfect storm that is affecting seniors, low-income families, single parents and families with mortgages.

“We were all sensitive and recognized this during the budgetary process” Goobie said. 

But council has a responsibility, he argued, to provide residents with safe, reliable and effective services while it weathers the fiscal storm.

“This is not a time to make popular political decisions, but responsible decisions that have to be made during these financially difficult times,” said the mayor. 

Goobie said council and staff went through their respective budget areas “line by line to shave and cut where we possibly could. But despite that exhaustive effort, we still fell short.”

It’s the first time since he became mayor 13 years ago that the Town has increased residential and commercial property taxes, Goobie said, even managing to lower them in 2013.

“After a long and exhaustive budget process, we feel a moderate adjustment in taxes right across the board is the fairest way to allow our town to function in a manner in which residents expect,” Goobie said.

Deputy Mayor Michelle Woodford, who co-chairs the corporate services committee, said there is no good time to raise taxes, but there are many reasons why the Town needs an increase.

“This council needs to address the aging infrastructure in this town,” Woodford said. “The requirement for the consistent water supply, the challenges of climate change and extreme weather patterns, the increase in fire and public safety requirements, the maintenance on our roads, the continued recreational services and programs for all residents, young and old. Our budget tonight represents the absolute necessities. There are no bells and whistles in this budget. It reflects our back to basics. We want to make sure that our basic services are available and functioning properly while also ensuring the growth and development of the town… This is our only way forward.”

Councillor Bruce King, however, was not convinced of that final point.

“Are there good things in this budget?” asked King. “Absolutely. I’m not going to argue with that one.”

He also acknowledged the hard work and time that went into preparing the budget, as well as the “frank discussions” that took place right up to a couple of hours before the presentation. And, said King, council will move forward and work together as a group after the budget is adopted.

Then he outlined why he wouldn’t be voting for it.

“Is there a bad time to raise taxes?” said King. “I would say yes.”

King said the aftermath of Covid-19, the plight of people relying on free pantries and food banks – even two income families, the likelihood that grocery prices and interest rates are going to increase again next year, and the federal carbon tax that will take effect in July are among the reasons the cost of living will continue to rise. 

The average family in Newfoundland pays about 45 per cent of their income to the federal, provincial and municipal governments in taxes, King contended. “And they predict now that within the next year or two years, 50 per cent of what you make will go to taxes,” he said. 

“We need to change the focus to asking taxpayers for the money that we need and not the money that we want,” King said. “Council and Town staff must share the burden along with residents. If we are going to ask them to pay more, then we should take less and lead by example… Our expectations have to be in line with our population and our tax base… We are a town of 2,500 people and that’s it. It’s no different than our budget at home. We have to live within our means.”

The rest of council, however, while admitting it was difficult to raise taxes, defended the decision as necessary.

Councillor Curtis Buckle said council even took out some things that it would like to have seen included in next year’s budget.

“Yes, it’s a hard time probably financially, but we as a council have to run the day-to-day operations of this Town, and we did get an increase here tonight,” said Buckle. “But we have to do what is right for us to run the Town, and I think that is what we are doing here.”

Councillor Sadie King admitted she too has reservations about the budget, but not in the way, it turned out, that you might expect.

“I will support the budget because there is a lot of good things in it,” said King.

But she’s worried. “Even though we have increased our mil rate by 0.5 and have increased fees, I feel it’s not going to cover off our expenses in 2023,” King suggested.

She acknowledged people are finding it hard financially.

“But we have to realize as costs increase for us (personally), it also increases for this Town,” said King. “For the past few years, we have been operating on a shoestring budget, and it will be no different this year even with an increase in taxes.”

Councillor Steve Winsor acknowledged the timing of the tax increases is terrible, and he too has reservations about the budget, especially as he is by nature inclined towards cutting “the fluff.”

But Winsor, pointed out, in going through each line of the infrastructure and public works operations, which consumes the largest part of Holyrood’s budget, it was clear the Town exceeded its spending on every single line this past year.

“Fuel, paint, wood, tires, brakes, pipes, valves – I could go on. Every single thing was more expensive than we thought,” Winsor said. 

The councillor also raised the prospect of eventually having to face tough choices regarding existing “agreements and contracts.” But he didn’t specify if he meant union and staff employment contracts, or contracts with companies that provide services to the Town.

“We have to navigate that in the right way,” Winsor cautioned. “I’m not saying we can’t address those matters, but they need to be addressed in the right way.”