Former City Council Candidate says taxpayers mislead on tax increase

Todayville

Published

6 years ago

6 minute read

Submitted as an Opinion by Calvin Goulet-Jones

1.89% Tax increase you say? I beg to differ.

Every Spring the city sends out a news release stating how much the city has increased our property taxes. Have you noticed something off with your taxes over the last few years? Now before we get into it, note that the city collects taxes in three ways. First they collect your property tax, next they collect the provincial education property tax, and third they collect the piper creek foundation taxation levy which I believe goes to seniors’ housing. The increases I am going to refer to take out the education and piper creek amounts as the city isn’t on control of those and focusses specifically on the tax revenue collected for the city.

Let’s continue.

In 2017 (May 1 to be exact) the City put out a news release saying the combined taxation increase was 1.1% for that year
In 2018 (April 30) the City put out a news release saying the combined tax increase was 1.5% for that year
In 2019 (April 29) the City put out a news release saying the combined tax increase was 1.89% for this year.

If you are like me you pay close attention to your taxes. I noticed an extreme variation between what the City News release stated and what we are actually taxed. And in case you’re wondering, no, the variation is not because of property value swings.

Now hold onto your seat here.

Red Deer Council (who seem to have smiles plastered on their faces every time they announce the tax rate increase) are either extremely ignorant or purposely deceptive as the property tax increases that you and I receive are not at all what they announce.

When the city announces what the tax rate increase is, they are not actually announcing the tax rate, they are announcing the Budget Increase. This may seem somewhat similar but it is not especially In a city who’s growth has stagnated, and where businesses are fleeing downtown causing the tax base to decrease substantially. If you lose 2% of your revenue and increase your budget by 2% you have to make up that difference and that is done in the real tax rate which is called the Mill Rate.

Red Deer’s administrations position (as sent to me in an email) is that “Mill rate changes are not indicative of tax rates”. Nothing could be further from the truth as your taxes are calculated by the Mill rate multiplied by your homes assessed value. When you are paying significantly more per $1000 of your house’s value than what they announce, you know that their statement that the mill rate not being indicative of tax rates is full of bologna.

Lets look deeper where you will see Red Deer’s Mill rate increasing since the beginning of the largest recession our province has seen in a generation. The increases are mind blowing.

Unbeknownst to many the 1.89% announced this year does not reflect the actual increases. The actual Mill rate increase was not 1.89% (remember this is just the city portion) it was a whopping 4.85%. That’s right,but still barely scratching the surface. In 2018, Red Deer’s 1.5% increase announcement was actually a 4.323% Mill rate increase. In 2017, the city’s 1.1% announcement was actually a 4.611% increase!

To give some context Red Deer’s Population growth since 2015 has officially shrunk, we recorded 100807 people in 2015. The latest data has us at 99,832. Inflation since 2015 has been 6.21%, and Albertas GDP since 2015 has grown by less than 1%. The popular line during elections is that we are going to tax population growth + inflation. Well that only works if you actually follow through. The actual tax increases we have experienced since 2015 have been nearly THREE TIMES inflation + population growth. Since 2015 Red Deer residents have seen a whopping 17.014% increase, which is a 10.8% higher increase beyond inflation and population growth and it appears to me that council believes they have done a good job here. What a joke.

Red Deerians know full well how hard this recession has hit us. Many of us are easily down 10% in our earnings and many more are down 20%, 30%, some even 40% in their yearly earnings since 2015. This doesn’t even include those who have been affected by unemployment. Council owes it to Red Deerians to do better and frankly Red Deerians owe it to themselves to ensure that in 2021 more than just 29% of the electorate show up to vote.

Related Topics:Calvin Goulet-Jones feature

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California’s soaring electricity rates strain consumers, impact climate goals

Published on January 21, 2025

Todayville

From The Center Square

By Madeline Armstrong

While the greenhouse gas reduction programs that raise electricity rates are part of California’s climate goals, the increased prices actually discourage individuals from switching away from using fossil fuels impacting California’s ambitious climate goals.

California has completed yet another year with some of the highest electricity rates in the country – almost double the national average. The state’s electricity rates have been increasing rapidly, outpacing inflation in recent years by approximately 47% from 2019 to 2023. This is due largely to the high rates charged by the state’s three large investor-owned utilities (IOUs).

According to a report published by the California Legislative Analyst Office, the factors driving rate increases are wildfire-related costs, greenhouse gas reduction mandates, and policies and differences in utility operational structures and services territories. Ratepayers bear the brunt of these costs with those who earn lower incomes and live in hotter areas of the state the most severely affected.

The report points out that while the greenhouse gas reduction programs that raise electricity rates are part of California’s climate goals, the increased prices actually discourage individuals from switching away from using fossil fuels impacting California’s ambitious climate goals.

These programs include the Renewable Portfolio Standard (RPS), which requires utilities to provide a percentage of retail electricity sales from renewable sources, raising costs for ratepayers. Additionally, SB 350 directs the CPUC to authorize ratepayer-funded energy efficiency programs to meet California’s goal of doubling energy efficiency savings by 2030.

“While many other states operate ratepayer-supported energy efficiency programs, on average, we estimate that Californians contribute a notably greater share of their rates to such programs than is typical across the country,” the report notes.

Electricity rates pay for numerous costs related to the construction, maintenance and operation of electricity systems including the generation, transmission and distribution components. However, these rates also pay for costs unrelated to servicing electricity.

“Most notably, the state and IOUs use revenue generated from electricity rates to support various state-mandated public purpose programs,” the report says. “These programs have goals such as increasing energy efficiency, expediting adoption of renewable energy sources, supporting the transition to zero-emission vehicles (ZEVs), and providing lower-income customers with financial assistance.”

The largest public purpose program is the California Alternate Rates for Energy (CARE), which provides discounts for lower-income customers. However, the report notes that while CARE benefits certain customers, it shifts the costs onto other slightly higher-income customers and that the majority of Californians spend a larger portion of their income on electricity compared to other states.

“According to data from the federal Bureau of Labor Statistics, California households in the lowest quintile of the income distribution typically spend about 6 percent of their before-tax incomes on electricity, compared to less than 1 percent for the highest-income quintile of households,” reads the report. “Notably, high electricity rates also can impose burdens on moderate-income earners, since they also pay a larger share of their household incomes toward electricity than their higher-income counterparts but typically are not able to qualify for bill assistance programs.”

Electricity bills also reflect other state and local tax charges including utility taxes that are used to support programs such as fire response and parks in addition to the state-assessed charge on electricity use that is put into the Energy Resources Programs Account (ERPA). This account is used to pay for energy programs and planning activities.

While many of the funds recovered through electricity rates are fixed costs for programs, these costs increased in 2022 following the repeal of a state law that limited fixed charges at $10, requiring the California Public Utilities Commission (CPUC) to authorize fixed charges that vary by income. These come out to be around $24 per month for non-CARE customers and $6 per month for CARE customers.

Wildfire related costs have also been increasing. Before 2019, wildfire costs included in electricity rates charged by IOUs were negligible, but now it has grown between 7% and 13% of typical non-CARE customers. Reasons for this increase include California’s high wildfire risk and the state’s liability standard holding IOUs responsible for all costs associated with utility-caused wildfires.

“The magnitude of the damages and risks from utility-sparked wildfires have increased substantially in recent years,” reads the report. “Correspondingly, IOUs have spent unprecedented amounts in recent years on wildfire mitigation-related activities to try to reduce the likelihood of future utility-caused wildfires, with the associated costs often passed along to ratepayers. Furthermore, California IOUs and their ratepayers pay for insurance against future wildfires, including contributing to the California Wildfire Fund.”

According to the report, electricity use and rates for Claifornians are only expected to increase and the legislature will have to determine how to tackle the statewide climate goals while reducing the burden on ratepayers.

Madeline Armstrong

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Daily Caller

Pastor Lectures Trump and Vance On Trans People, Illegal Immigrants

Published on January 21, 2025

Todayville

From the Daily Caller News Foundation

By Nicole Silverio

President Donald Trump and Vice President J.D. Vance visibly rolled their eyes as the Episcopal bishop of Washington, Mariann Budde, lectured them on being kind to transgender people and immigrants at Tuesday’s National Prayer Service.

Budde requested that the newly sworn-in president and vice president “have mercy” on gay, lesbian and transgender people as well as illegal immigrants who are allegedly “scared” by the new administration. The new leaders did not appear amused by her lecture, with Vance repeatedly shooting looks to his wife, Second Lady Usha Vance.

“In the name of our God, I ask you to have mercy on the people in our country who are scared now,” Budde said. “There are gay, lesbian and transgender children in Democratic, Republican and independent families, some who fear for their lives. And the people who pick our crops and clean our office buildings, who labor in poultry farms and meat packing plants, who wash the dishes after we eat in restaurants, who work the night shifts in hospitals. They may not be citizens or have the proper documentation, but the vast majority of immigrants are not criminals. They pay taxes and are good neighbors, they are faithful members of churches and our mosques, synagogues and temples.”

WATCH:

Trump and Vance attended the National Prayer Service along with Usha, First Lady Melania Trump and their families at the Washington National Cathedral. The interfaith service was held to “offer prayers of thanksgiving for our democracy” at the beginning of the new administration, according to a statement from the National Cathedral.

Budde, a staunch critic of Trump since his first term, said during a phone call in 2020 that she was “outraged” by the president’s speech about the importance of law and order at St. John’s Episcopal Church after it was set ablaze by Black Lives Matter protesters. She further seethed at Trump for allegedly being given no notice that the area surrounding the church would be cleared with tear gas.

Trump signed a slew of executive orders Monday evening to terminate birthright citizenship for children born to illegal immigrants, declare a national emergency at the U.S.-Mexico border and to direct the federal government to only recognize two sexes, male and female.

An Axios/Ipsos poll from Sunday found that 66% of Americans support deporting immigrants who entered the U.S. illegally, an action that Trump had promised to enact throughout his campaign. The poll surveyed 1,025 adults between January 10 to 12 with a 3.2% margin of error.

A national poll by PPRI in June 2023 found that 65% of Americans believe there are only two genders. The poll surveyed 5,000 adults between March 9-23 with a 1.5% margin of error.