In an earlier opinion piece, I threw out the notion that in Ontario, municipalities are not allowed to run operational deficits.

They’re not.  It’s as simple as that.  I didn’t make it up, agree or disagree, I just stated that fact as it currently stands.  Check out the Municipal Act 2001 if you wish.

It’s something that is obviously concerning if you live in Renfrew, pay property tax in Renfrew, and follow Renfrew news — such as it may be, and it ain’t much, unless you enjoy dollops of self-serving platitudes and accept them as “news” — so I can certainly see and understand some degree of anxiousness around someone coming along and telling you that the corporation that you fund — the municipality — isn’t allowed to carry a deficit term over term.  Because you know that, if deficits aren’t allowed, that shortfall will have to be made up somewhere.  And that you, as the primary source of income for that municipality, may — will — be called upon to make up a big chunk of that shortfall.  In other words, through no fault of your own, you’ll be required to pony up to make right the egregious mistakes or lack of rigour that has led to that deficit situation in the first place.

And by deficit, let me be clear.  We’re not talking about slipping into maroon territory here, where you you slide gently from black ink to red ink on the balance sheet.  We’re talking full-on red, dark red, the ugliest colour of ink possible when we’re talking about money, especially if it’s your money. 

Continue reading “THE RENFREW TAX MAN COMETH. AND HE COMETH WITH A VENGEANCE” →