In response

Dear editor:
In response to the letter headlined “Faulty logic” in last week’s Times, I do not know if the writer of this letter has some problem with what is a subsidy or what is clearly logic, but for sure I will try to address a bit of both.
Firstly, from the Webster’s English Dictionary, subsidy (noun) is defined as government financial aid to a private person or company to assist an enterprise.
Subsidize (verb) is defined as to contribute a subsidy.
I will elaborate on her topics in this regard.
All water and sewer users in the town do not pay fully for their portion of the water and sewer that they require. Residences pay more that their fair share while large commercial and industrial users pay less than they should.
In effect, residences and small commercial contribute the lion’s share for infrastructure and maintenance.
The government (in this case, the town) collects the fees from all users and, in turn, subsidizes the large commercial and industrial users from the collected fees.
You do not need to own a vehicle to have a need for a road in front of your house. If you did not have a car, you would need your groceries, other necessities for life, and luxuries for enjoyment delivered to your home.
Services such as fire, police, and ambulance need to use the road to attend to you in an emergency. Buses need the road to transport students to school.
There is no user fee for roads in Fort Frances. Taxation subsidizes the road system.
That fact that it is a 100 percent subsidy makes little difference. It is a subsidy to individual persons and companies to use the roads. The assisted enterprise is commerce and necessity.
Your two points are excellent examples of subsidies which are applied in two very different ways. The commonality of the two are necessity.
Our government collects funds that they distribute in the form of subsidies, through taxes, user fees, and grants.
But the above mentioned subject has little to do with your chastising council’s “logic,” or lack thereof. Let’s cut to the chase. The Community Services division of the town is subsidized through taxes by more than $1.5 million over and above charged user fees.
There is a requested $49,929 increase for 2015.
Since 2011, revenues for the town have decreased by $500,000. Three of the four departments have reduced their demands on the budget. The school board has reduced its levy by $359,000.
Logic would dictate that all departments and individuals should together tighten their belts and reduce demands!
With council’s care and logical decisions, we will keep the town moving forward. Thoughtful input from staff and administration will guide council to keep taxes at an affordable level, increase user fees as painlessly as necessary, and maintain services at a level that we all can enjoy.
It is becoming more of a balancing act as we proceed—and the wire is getting higher and thinner.
Status quo will not survive. Logical decisions and subsidies will sustain us.
Signed,
Coun. Ken Perry
Fort Frances, Ont.