Last budget, I argued vociferously with some of my colleagues that we need to deal with the area rating issue that continues to see inequity in the taxation of services.  We have many areas that surround our Ward that receive the same level of services and are getting taxed significantly lower that their neighbours in Ward 8.

A draft report has been completed by staff that shows that Fire, Culture and Recreation and Transit should no longer be area rated within the urbanized areas.  There are many areas within the former City of Hamilton that do not have the same level of service as other areas of the former City of Hamilton.  Yet no adjustment or area rating has been provided to those who pay full taxes without having the benefit.

An example of this is the fact that for many years residents along Rymal Road did not have transit yet they paid the full cost on their taxes for transit.  That is not the case in the outlying areas.  Senior staff has many a pretty compelling argument why we need to go the same way as Ottawa and Sudbury to a rural urban split on taxation.  If the plan is implemented, there would be a 4% reduction for taxpayers on average in the former City and there would be increases in the outlying areas with the exception of the rural areas.

The plan was to have the decision made during this term of Council and have it implemented starting in 2011 with the new term.  As this is a very divisive issue, a recommendation of a 7 year phase in is one that I can support.

The Mayor wants to have an elongated consultation process with a report for the new Council at the start of next term.  He is putting off a very contentious decision until after the election.  The issue is about fairness.  I would ask you to e-mail the Mayor and copy myself to impress upon him that this area rating has been put off far too long and it is time that this term of Council makes the decision.