Council divide on display as Oshawa reduces projected tax increase to 3.98 per cent

Chopping more than $1 million from the city’s Infrastructure Reserve Fund helped Oshawa Council reduce a planned 4.68 per cent tax hike to 3.98 per cent during a fractious budget meeting last Friday, with Ward 5 Councillor Brian Nicholson saying the amendment passed because taxpayers have “hit the wall” on tax increases.

“I don’t blame them, Nicholson said. “Increases in recent years have been hard to defend.”

A total of $1.3 million in cuts were made in a series of amendments Friday, despite, as Nicholson said on his Facebook page, “the tactics and out of the world spin from those who support uncontrolled spending and taxes, taxes, and more taxes.”

Ward 4 Councillor Derek Giberson, who chairs the Corporate and Finance Services committee, had a different view of the debate, however, and warned that slashing $1 million from the infrastructure reserve fund will hamstring future councils, calling the decision “one of the most reckless and shortsighted motions during my eight budgets I’ve ever seen.”

 Derek Giberson

“I can’t imagine a clearer way of saddling the next generation with the cost of our crumbling assets. We have a $1.1 billion infrastructure deficit and currently underfund our repair and replacement costs by $47 million a year,” he said. “This council trades in short-term self-serving political points for long-term leadership. The nonsense used to justify it either means they don’t understand our finances or care more about their re-elections. Absolutely unbelievable.”

Residents appeared to take Nicholson’s side on the debate, if a poll on his Facebook page is any indication of the pulse of the community. Given five choices, more than three-quarters of the 800 respondents chose the option to lower the 3.98 per cent increase to an even lower amount.

Nicholson acknowledged the choice was “difficult” but necessary.

“I could have just spoken and voted against the proposed 4.68 per cent increase and that would have made me look good but it would have not provided any relief to the taxpayers,” Nicholson said. “I decided that actually reducing the tax increase was a better way to serve the taxpayers than making speeches or casting a losing vote.”

 Brian Nicholson

“I wish we could have gotten it lower but this was what was achievable.”

The tax increase will see property taxes on a home valued at $356,000 rise approximately $91 on Oshawa’s share of the bill.

Nicholson said the next challenge will be at the regional level, with Durham Region looking at a projected tax increase of 6.5 per cent and a projected water and sewer rate increase of more than five per cent.

“I will not be voting for either of these increases. If these numbers are not reduced, the impact of Oshawa taxpayers will be catastrophic. It cannot be allowed to happen.”

The region will vote on their budget December 17.