ManorPark Community

A Modest Proposal

Will soaring property values ultimately affect the quality of life we value so dearly in Manor Park?

By Peter Macdougall

Homeowners in Manor Park, like most throughout the city, have reason to closely follow the recent brouhaha over unpredictable and unwelcome hikes in property tax assessments. There are important issues at stake - issues which lack transparency, which are complex and confusing, and which, simply put, are unfair. Sadly, it comes as no surprise to realize that the property tax system is broken and that Ontario's ombudsman, André Marin, is rightly taking a look at the Municipal Property Assessment Corporation and the problems wreaked by its mostly hidden evaluation methods.

In a community like Manor Park, which takes great pride in the neighbourliness of families, singles, and retirees contributing to the vitality of our community, living in harmony down the street from one another, a volatile tax assessment system has the potential to impact the quality of life we value so dearly.

Questions abound. Will the potential for soaring property values in our community ultimately affect the village-like atmosphere of the Park? Will our community hold onto its traditional mosaic of different family units living in harmony and contributing, each in their own way, to our neighbourhood? Perhaps it will; perhaps not - some say progress can't be impeded, (if indeed progress is taking place).

Over the past month columns and editorials in local papers have addressed the big picture, looking at root causes, endorsing action and proposing solutions - all with good effect. However, when one narrows the focus and asks: 'Will this affect my community - the place where I live?' the worry quotient reaches a more poignant level.

Many people in the Park, including several original homeowners, find it incomprehensible that their little Manor Park cottage is worth in excess of $300,000. Many can't grasp why their property values have shot up. There's no way of explaining current assessment increases to them, especially when the only things that may have changed in their homes are the light bulbs, or the paint finish, or perhaps merely the addition of new kitchen appliances.

The assessment program is supposed to be revenue neutral - across the city at large that is. Will the taxes on Manor Park houses rise? As sure as 'gawd' makes little green apples!

Families and residents with incomes indexed to the cost of living will be affected. How do they realistically budget to account for unpredictable fluctuations in their city taxes based solely on a property assessment system? Are residents going to feel the pinch on household budgets? The reality is yes.

And what of residents on fixed incomes, the disabled or elderly who have lived in our neighbourhood for many years and have seen their property values shoot up 12, 14 or 16 per cent this year alone? This is their home, their community, and many are now clearly frustrated and perplexed by what the future may bring.

But there will always be property taxes - that's inescapable - we can only hope that the Ombudsman can bring about recommendations for a system of property valuation that is more transparent and equitable. However, in and of itself, that will not solve the question of constantly rising property taxes. Perhaps the real crux of the problem lies in another area - how our property tax revenue is used by the city government.

Here is my modest proposal. Our municipal representatives would serve us well if they, in open council sessions, reviewed the full range of programs and services now funded by our property taxes. Such a discussion would bring into the public view how council establishes priorities in determining the kinds of services which should fairly and equitably be funded by municipal property taxes (i.e., services which relate to property).

Place this discussion against the background notion that the monies raised by municipal property taxes are in fact funds belonging to the property owners, not the city, to be used for the provision of services and programs the property owners want and need, and it should become clear that there are many services now provided which have no bearing on property per se.

Light rail, art galleries, assisted housing - those kinds of services now funded by our property tax base - may well be the types of municipal services more properly funded by municipal taxes that are based on income, not property values.

There would then be a two part tax system for property owners - the first part providing essential services related to their property funded by a fair and equitable property tax, and the second part an income-based revenue raising system to fund such other programs and services our councillors may put forward as being important, either to them, or as they would be required to demonstrate to the voters, to our city.

Such a proposal may go a long way to preserving the integrity and vitality of neighbourhoods such as ours because, ultimately, the quality of life in Manor Park is at stake. Ours is a great community - one that will be better served by a more equitable, fair and transparent tax system - a community that welcomes and warmly embraces all its neighbours.

And wouldn't such a two part tax system make for a great mayoral and city councillor election campaign, with candidates actually having to defend their budget and spending initiatives.

(Article courtesy of the Manor Park Chronicle – Nov. 2005)