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Mayor says his 5% tax plan is doable

Posted by on 12/08/2018

CALGARY – Mayor Naheed Nenshi has released a roadmap to stick with a five-per-cent tax increase for 2012 by the end of this week’s budget debates, but he likely lacks the support to get there.

He is confident the police chief can handle 45 fewer officers at community and district desks and in other support services, feels transit won’t suffer with fewer service hours, and thinks less money for parks maintenance will prompt more efficient delivery of the service.

“On the face of it and on the facts, there is no reason we can’t do it,” Nenshi said of his tax plan.

He’s going to have a tough job convincing others on council.

At least one councillor who reluctantly joined Nenshi’s push to keep property tax hikes to the rate of population and civic cost growth now wants to go higher – six per cent, perhaps – to prevent service reductions for police, transit or snow clearing.

“We’re going to have to add. I just don’t see places where we can cut,” Jim Stevenson said Sunday, the day before council begins a likely marathon stretch of hearings and debates on the 2012-2014 city fiscal plan.

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When council gave city managers pre-budget direction on taxes in June, Stevenson was one of nine members who initially backed finance committee chairman Councillor Gord Lowe’s plan for an eight-per-cent increase in 2012, and six points in the next two years.

He was then one of the three councillors who switched their stances after Nenshi pitched hikes of 5.0, 5.1 and 5.5 per cent in successive years.

Lowe plans to bring back his eight-point tax proposal, and colleagues have eyed many department budgets to shore up.

A plan to add no new transit routes outside the west LRT corridor and cut $1 million in transit service in 2013 has won few fans other than the mayor, who argues the new LRT line will offset the need for more bus service.

The police commission has many members in their corner – including Stevenson – calling to reverse the planned elimination of 45 officers this year, and hire additional police.

“I’m so happy with what (Chief) Rick Hanson has done over the years. I just don’t agree we should hamstring them,” the Ward 3 member said.

Nenshi supports the idea for new officers as the population grows but will ask council to await word on possible aid from the Redford government.

Many also oppose a $5.7-million clawback to parks maintenance over three years, and there’s apparent unanimity against a $3.5-million cut to the roads budget that would end the newly upgraded plowing strategy for side streets.

To staunch that problem, Nenshi will propose taking $7 million from the rainy day reserve to start a snowy-day fund so the city can draw from it in tough winters, and add to it in lighter winters.

Civic Camp, a group of urban activists which Nenshi helped form, will appeal today for the higher tax hike that Lowe endorses and the mayor is against.

There’s streamlining to be done, but even the city’s own pre-budget consultations showed Calgarians favour enhanced services, Civic Camp organizer Peter Rishaug said.

“They are willing to pay more for certain services, if they are reliable and improve quality of life,” he said.

There will also be public speakers coming out for operational dollars to further the cycling strategy, which got short shrift in a budget that cuts back in most areas.

“It will result in savings that exceed its costs many times. The benefits include improved health, long term transportation cost savings, more vibrant street life and increased tourism,” said Bike Calgary’s letter to Nenshi and council last week.

For support on a more modest tax hike, Nenshi can likely count on Councillors Dale Hodges and Andre Chabot, as well as Peter Demong, who wants a four-per-cent hike. But they’re aware of the long odds.

“I don’t think council will have the intestinal fortitude to get it below six per cent,” Chabot said.

On top of tax rates and service levels, council will also tackle user fees. Many members will try to alter the draft plan to hike the senior’s annual transit pass to $55 next year and $96 by 2014, from the present deeply discounted $35 (low-income seniors would still pay $15 a year).

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