Dear Members

Thank you to those members who raised concerns about and those who support SIPOA's recent letter to the Islands Trust regarding their proposed 2011-12 budget. It is always healthy to have respectful debate in an organization and also to have a discussion on these kinds of things because it helps to clarify issues and points of view. And, friendly dissent is a good thing.

The board is writing this email not to debate your point of view but because it may be helpful to provide a bit of background to this discussion so that future discussion about our letter to the Islands Trust on taxation is set in context.

From the outset SIPOA has been concerned about taxation, especially property taxes. It is one of the stated purposes of our association. In fact, some of SIPOA's very first letters were to our elected representatives asking for clarification about taxation, particularly on the expense side. Over the past five years we have written to the Islands Trust, the CRD, the Saturna Fire Protection Society, the Parks and Recreation Commission and the Provincial Government asking them about (yes, in some instances challenging them) to explain their expenditure side and urging them to be ever mindful of the taxpayer. Most of these letters are in the archives online. In this regard we should mention that SIPOA is fortunate to have accountants and economists who are members and who the board can turn to when reviewing these budgets. It is helpful to have folks who can decode budget assumptions, understand the economics of taxation and clarify the various governmental accounting practices.

We have had some modest success because of our queries. Because of our work, specifically on taxation, we found out that the federal government was not paying its fair share for park lands on Saturna and that before we intervened the provincial government wasn't invoicing them fully for these lands. And, as members know, we discovered the tax implications on island property owners from the lack of federal government payments in lieu of taxes and are working with the provincial government to address this. Again, from our work on taxation we discovered that the provincial government has not been properly administering its contract with Main Roads and, as you know, we are pursuing this with the BC Ombudsperson.

Ever mindful that we don't stray too far from the wishes of members, the board has conducted a yearly “poll” to find out what are members key concerns. Each year property taxes are ranked very high. And, in response, each year the board takes an in=depth look at one taxing authority and we also look at various government services to see if our dollars are well spent. This year the Islands Trust asked for public comment on their budget and we responded, focusing on their revenue side as well as the expenditure side.

For the record, the SIPOA board is not anti-Trust, nor is the intention of our letter to be aggressive or anti Trust. As we have done with our budget reviews in the past, the Board did a serious assessment of the Trust's budget, asked some members with an economic background to help us better understand the Trust's accounting practices and to review their budget history. Yes, the board asked hard questions. We commented on the budget increase over the past eight years and challenged the Trust's budget assumptions regarding general property tax increase percentages which they base on a non-market growth amount instead of real figures.

If some members are concerned that SIPOA's scrutinizing of the Trust's proposed budget will be seen as anti-Trust because of the vigorous online debate among members about the Trust's approach to water issues at East Point that is a valid concern and one the Board shares. That is why the Board asked members if you want us to more actively participate in the Trust's planning process regarding water. As you are aware, the answer from over 70 members is a resounding yes and we have advised the Trust's planner and our Trustees of this. It is also why the Board took care in drafting our letter to the Islands Trust regarding their proposed budget and especially to ensure we are factually correct.

It is true that the written word can be tricky, but many of the 200 plus property owners who are members don't live here all the time and online discussion allows for all interested property owners to participate. However, if members think the board isn't doing what you want, or how you want it done then we need to find better ways to meet your needs. We can always do better. For example, do some of you want to more actively work on taxation? If so, the board welcomes your help because it is a complicated subject.

Should the board let members know in advance what taxing authority we plan to review? If so, how should we do that, recognizing there are already lots of SIPOA emails.

Perhaps a committee of members, nominated by members, could work with the board to vet letters before they are sent. Or, you may have additional and better suggestions. Again, board members welcome your input. Plus, we are always looking for new board members and fresh ideas. The AGM is coming up in late spring!

Finally, the SIPOA board wants to thank all members for your commitment to the association and caring enough to post your thoughts, concerns and support. We wouldn't be here if it were not for you.

Murray Rankin, Ron Monk, Ellen Bourassa, Bryan Dixon, Ron Hall, Susan Jamieson-McLarnon, Bill Schermbrucker, Susie Washington Smyth, Bernie Ziegler