Estevan’s city council may have dug themselves a minor economic hole with the budget they now have to climb out of in the near future.Â
At the time of this writing, local ratepayers were looking at a proposed five per cent increase in property taxes and another 10 per cent increase on water consumption bills.Â
Based on the new realities of our rapidly declining economy, we wonder if maybe these councillors might have wanted to rethink and reposition themselves in terms of what they think local taxpayers can handle this fiscal go-round.Â
We have already gone on record stating that tax increases should be expected on a regular basis, to prevent another fall back on local projects and infrastructure needs in a growing community. So we can’t switch the horse in midstream, but this is a pretty hefty horse for the populace to be riding under these conditions when, perhaps, local taxpayers might prefer crossing the stream on a pony … a mode of transportation that would get us across the stream without dumping us in the water.
It’s been several years now since a local council has had to deal seriously with anything resembling restraint and with a huge debt load sitting on their shoulders, we understand their desire to get on with the business of retiring debt, showing no deficits and still being able to march forward in lockstep with community growth.Â
The hole got a little deeper with the recent signing of a contract agreement with their unionized employees and there will be further financial obligations on our behalf once a deal is signed with the local police association.Â
The cost-of-living index indicates only a modest upward trend this year, if at all, with higher grocery costs being offset by lower prices at the gas pumps. But the lower price at the pumps also translates into lower prices being harvested by a no longer vibrant oil industry. This hasn’t been just a recent, short-lived, slump either.Â
Based on that knowledge, our city councillors could have been cognizant of the local economic conditions and perhaps reined in that tax and utility hike to something closer to two and three per cent and six or seven percent, which would have given residents a bit of breathing room.Â
Estevan will continue to grow, but the construction boom is over for now, as evidenced by the latest building permits reports. There is a good reason for that.Â
In spite of nearly two years of downturn in the oilpatch, Estevan continues to survive economically, if not thrive. We’ve learned how to tread water over the decades, since we’ve witnessed these types of pullbacks many times.Â
One should think the collective wisdom of council would have done the same.Â
We are in survival mode and probably will be for at least this year and perhaps next.Â
That needs to be reflected by our civic governing bodies.Â
Big spending has to end. We must now protect and maintain what we’ve built, while putting a small, not large dent, in debt reduction to reduce interest payments, if nothing else.
We all wish it could be more, but economic realities tell us differently.Â
We understand the dilemma council has, so there was no way to slightly back away from these increases at this late stage, but perhaps the sensitivity factor will be there if the economic malaise continues into this fall season and a new council will begin thinking about the immediate and long-range future needs and our capacity as taxpayers to answer the call.