Kearney Bankrupt in Four Years

Once again we’re seeing Proudfoot fiscal policy in action.

First, a bit of background:

The Proudfoot Four (Mayor Paul Tomlinson and Councillors Steve Sainsbury, Louise Wadsworth, and Barry Dingwall) got into office with the support of at least two Proudfoot residents associations, one of which the Four have, at various times, held executive positions or been members. This was made possible after Sainsbury and Dingwall canvassed the OMB to abolish the ward system, allowing the Proudfoot Four to take control of all of Kearney, instead of just Proudfoot.

While running, their main platform was the “outrageously high” taxes in Kearney. As some might recall, at the All Candidate’s meeting, Dingwall finally admitted that he had really been quoting "outrageously high" Property Tax rates (which are controlled by the province, not the town) and not Municipal Tax rates. It wasn’t much more than a begrudged mumble so most probably missed it. To date, Louise Wadsworth has refused to admit that she just made her tax numbers up. If you can't dazzle them with brilliance...

But now that the Proudfoot Four are in power, they have to make good on their promises to the residents associations who funded them. Unfortunately, they don’t seem to be looking past their 4-year term and are planning to make some fiscal decisions that will impact Kearney long after they’ve jumped ship.

Take, for example, the new 2011 budget. In order to allow a zero tax increase, the Proudfoot Four will be drawing on the town’s Reserve Funds. This is the very thing that a municipality must not do! Reserve Funds are created in case of emergency, like a road or bridge washes out, a public works vehicle needs costly repairs or replacement, etc. Kind of an insurance plan. But if the reserves are depleted, the Town would have to borrow money in an emergency.

So the Proudfoot Four are gambling. Gambling in the same way as if you decided to stop paying your home insurance to save money, hoping that nothing bad ever happens.

On paper, a zero tax increase will look great to the average tax-payer, but the Devil’s in the details. If the Proudfoot Four vote to deplete the Reserves just to please their Proudfoot masters the Town will be bankrupt in four years. That means the next council will have to raise municipal taxes by double-digits just to stay afloat!

But on April 8^th, 2011, Mayor Paul Tomlinson wrote:

“Tidied up Kearney budget yesterday - our ratepayers will be pleased!!”

Pleased, until the bullshit runs out and it’s time to pay the cheque in four years.

We all know that Tomlinson is an arrogant bully, but now we have to wonder about his competence. Sorry, Paul. But bullshit will only get you so far…

Are you surprised?