Taxes, Taxes, and more Cuts

Stephanie Watt

Opinion Reporter

The final call on the tax estimates for 2010 are now being said to stay at 4.8%. It has been a struggle though, city transit services have been cut back, less paving is to be expected and 30 city workers are also being fired to keep 4.8% a reality. The city of Calgary’s officials are proud to have the budget remaining lower then the original 6.1% they anticipated but they know that there is a chance of add-ons. City Staff will be meeting with the Alderman next week to talk about additional cuts and do some final budget deliberating.

http://www.calgaryherald.com/news/Calgary+trims+jobs+limit+hike+proposed+budget/2215626/story.html

Answers To “Difficult Questions” Needed

Kaitlin MacLeod-Rogers

Opinion Reporter

Is the City of Calgary spending your tax dollars wisely? Ricky Leong of The Calgary Sun doesn’t think so. In a column for the Sun dated November 17^th, Leong writes that municipal government is riddled with projects he calls are the “epitome of waste.” An example of this careless spending, he points out, is the video campaign on the city’s website to “convince us we should accept tax increases without a fight.” More importantly, he points to the numbers, themselves, as being misleading and untruthful. The city has saved taxpayers a 0.2% property tax increase (down to 4.8% from the proposed 5%) by reducing services like transit, a total savings of “dozens of millions of dollars.” Yet the projected operating budget for 2010 is slated to rise by $123 million over 2009. Leong says celebrating a reduction in taxes for citizens is “bend[ing] the truth.” He then asks city administrators to answer the following questions:

Would it be cheaper for the city to outsource such services as garbage collection, snow clearing and parks maintenance?

· Is there a better way to schedule workers and equipment to increase efficiency at Calgary Transit?

· Can laws be changed so municipal cemeteries can be privatized?

· Do we need hundreds upon hundreds of new police and bylaw officers?

Once practical answers are given to these difficult questions, he says, “only then can they truly claim they’ve tried to spend your money wisely.”

http://www.calgarysun.com/news/columnists/ricky_leong/2009/11/17/11772396-sun.html

Missing Money from Local's Accounts

Nicole Butz

News Reporter

The city has withdrawn extra money from hundreds of homeowner’s bank accounts with no warning. Due to this they have sent out apology letters. Every month, to cover their municipal taxes, property owners enrolled in the city’s tax installment payment plan will make automated payments. In November certain people must pay extra in order to ensure their bill is fully paid by the end of the year. This is usually new clients or people who missed a payment. Regularly the city will send out advisory letters to people who need to pay more but that did not happen this year. Instead, they withdrew amounts of several hundred dollars from hundreds of taxpayer's accounts. The apology letter went out last week according to city spokesperson Paul Wan. The system has been corrected so that this does not happen again.

http://www.cbc.ca/canada/calgary/story/2009/11/20/calgary-tipps-city-hall-property-taxes.html

Tax Hike Looks Inevitable

Sunjeev Prasad

News Reporter

Even though Calgarians are facing a tax hike of 4.79% in the upcoming tax season it could have been much worse had no action taken place. City council put the wheels in motion back in March and managed to decrease the hike from 11.2% to 4.79% which will surely relieved local taxpayers given the current economic climate. Though this is already a significant decline in the rate hike a number of council members were still in favour of lowering the hike as far as 2% but this would not be possible without significantly decreasing services. A number of other proposals were made by city council members including a reduction in public library funding by 1.7% and even an attempt to lower the ill favoured LRT parking rates from $3 to $1 was shot down by the council. It is likely that the increase in municipal taxes will hover around the 4.79% range since the budget is officially due before the years end.

http://www.calgarysun.com/news/alberta/2009/11/24/11900936-sun.html

Transit, Snow, and Taxes

Stephanie Watt

Opinion Reporter

After a lengthy debate about the tax increase in 2010, government officials have finally set a budget leaving Calgarians with a 4.79 per cent tax increase. They claim this tax fluctuation will be similar to the one encountered in early 2009. This increase of tax dollars will be put towards various city improvements, one of which being the snow removal of more private and residential streets, not only focusing the attention on the main roads. One service that our money will not be going towards is new transit peace officers. In fact there is talk going around of eliminating the 3$ parking fee at transit stations.

http://www.cbc.ca/canada/calgary/story/2009/11/24/calgary-city-hall-tax-hike-property-taxes.html

Snow by the Dollar

Sunjeev Prasad

News Reporter

With the recent discussions surrounding the municipal budget one point was made clear as of today. The city has made plans to boost the snow removal budget by $1 million with a particular focus on the hardest hit routes in the city. The mayor is planning on employing private contractors to support city workers in order to compensate for the increased demand. The majority of the work will take place in residential areas that typically would not get service for at least 3 to 4 days after a snowstorm would hit. Critics of the mayor’s plan to increase the budget are pessimistic as to whether or not the third party contractors will be capable of responding in a timely fashion or have the appropriate equipment to complete the work. This may be considered a catch – 22 since citizens are looking for more snow removal to create safer driving conditions but they clearly do not want an increase in taxes. The mayor’s plan should make a difference in the quality of snow removal without putting too much of a dent in taxpayers’ pocketbooks.

http://www.calgaryherald.com/news/Calgary+snow+removal+budget+boosted/2259367/story.html

Parking and Taxes: A Lot of Confusion

Nicole Butz

News Reporter

After city hall declined the parking fine increase last week, the city may need to be ready for the 4.8 per cent tax increase to jump. This is just one battle city hall will be looking at as they have a look at the budget today. The decline in parking fine increases and the reduction in parking fees could cost the city $4 million in revenue for the year. With $7 million in unfunded projects they could be seeing the increase in property taxes back to 6 per cent. Finance committee chair, Ald. Gord Lowe said the money would have to come from the rest of the operating budget or from an increase in property taxes. Also, if approved, the city will also need to withdraw $13.7 million of its fiscal sustainability reserve to keep the tax increase lowered.

http://www.metronews.ca/calgary/local/article/376779--tall-budget-task-ahead-for-council

The Calgary Parking Authority = Candy Thieves

Kaitlin MacLeod-Rogers

Opinion Reporter

Good news: parking rates in and around downtown Calgary fell this past Monday. Bad news: to make up the shortfall, the long-held tradition of free Sunday parking is gone. Don Braid of The Calgary Herald sums up the city’s proposed parking rate cuts as the ultimate mean gesture: “[They’re] as unpopular as a candy thief at a kid’s birthday party.” His November 17^th editorial blasts Dale Fraser, in particular, as head of the Calgary Parking Authority. The technology used by the Authority to nab parking space freeloaders, including scanning license plates with spy trucks, has the potential to turn the “sleepy” Authority into a “political monster.” And that’s what’s causing the most controversy. Fraser, states Braid, just can’t see it: “[He’s] an honest man with no political sense (two qualities that often go hand in hand) … not appear[ing] to hear the hoofbeats.”

http://www.calgaryherald.com/news/Braid+City+parking+rate+fiasco/2230790/story.html

Calgary Transit to increase fares

Nicole Butz

News Reporter

Next year it is expected that fares for Calgary Transit will raise a quarter, at the same time certain routes will be eliminated to comply with the new city budget. Adult monthly passes will increase to $85.25 and books of tickets will go up a dollar as well as day passes increasing 75 cents. Youth monthly passes will also rise up $1.75. To justify increased fare rates before the LRT has had increased service. However, this year, it will shrink less than one percent for the first time in years. In order to keep the cities tax hike lower than five percent, transit had to rid 21 500 hours out of 2.45 million per year. They are not cutting any start or end times to any schedules; however, they will be reducing schedules of certain least-used routes. After the fares increase they will cost more than the Zone 1 fare in Vancouver but less than single-use rates in Toronto or Ottawa. The last increase was in 2008.

http://www.calgaryherald.com/news/Calgary+Transit+service+with+fares/2240613/story.html

“Transit Cuts Foolish”: The Calgary Herald

Kaitlin MacLeod-Rogers

Opinion Reporter

This week’s budget talks for 2010 have hit Calgary transit right where it hurts, in the form of a $1.2 million cut. City council has rationalized the cut to transit as necessary since they want to minimize overall increases for taxpayers, currently pegged at 4.8% instead of an initially proposed 5%. But the editors of The Calgary Herald state this rationale as “backwards thinking” since the department already struggles to meet increased demand for services. The main argument in the November 15^th piece is that reducing services is counterproductive in the bid to convince Calgarians to “hang up their car keys” and utilize public transit. The writer also takes aim at poor spending priorities: “The cuts are part of a 1.7% reduction all departments were asked to make, with the exception of police. Such across-the-board cuts fail to recognize that all departments are not created equally. Cuts need to be made where they make the most sense. If departments can’t identify those areas themselves, aldermen need to step in now … and set spending priorities.” Build a bigger, faster, more efficient system, says The Calgary Herald. Otherwise, city council has simply missed the bus.

http://www.calgaryherald.com/opinion/editorials/Transit+cuts+foolish/2225326/story.html

http://www.homestaycalgary.com/blog/archives/calgary_information/bus.gif

Debate Over the Peace Bridge Continues

Stephanie Watt

Opinion Reporter

With new estimated costs being thrown around for Calgary’s Peace Bridge, opinions have been flaring as to whether or not this new structure is really welcome. In the blog article below by the Calgary Cowbell, the writer sticks strong to his beliefs that this bridge should be accepted among Calgary’s citizens and council. The writer welcomes the bridge and hopes for more high tech architecture to grace our streets in the future. He argues that people need to start appreciating the bridge for what it is, a beautiful piece of work that “shares our hopes and dreams” and quit chattering about the price. The cost will be taken out of the city’s capital and not added to our tax dollars he argues, and he even claims the bridge is one in the same with memorial statues we already have scattered around the city.

http://calgarycowbell.com/Peace_Bridge_is_War.html

http://www.e-architect.co.uk/canada/jpgs/peace_bridge_calgary_sc140809_1.jpg

City Council Still Far From "Bridging" the Gap

Sunjeev Prasad

News Reporter

The heated debate over the proposed peace bridge still remains a hot topic among city council members. As of today the bridge has yet to see a single shovel hit the dirt since the city of Calgary is still undecided on how to cut costs in order to remain within budget. The original estimate for the bridge was to be around $18 million but the lowest bid at this point is hovering at $20.5 million which has many critics still strongly opposed to its construction. Santiago Calatrava is a renowned engineer whose elaborate designs in the past have gone far over budget, recently a project in Venice ended up costing four times the original estimate and if that were the case with Calgary’s peace bridge, it would surely leave a very bitter taste in the mouths of taxpayers. Not all is lost yet, though the bridge may still be $2.5 million over budget a few adjustments can be made in order to reduce costs. Eliminating the granite walkway and replacing it with either concrete or ceramic would likely be enough to bridge the gap between the budgeted costs and the price quotes from various construction firms. The debate surrounding the peace bridge will remain a heated issue until it is all said and done, and now that city council is proposing a hike in tax rates more critics of the project may feel the need to voice their opinions on this subject.

http://www.calgaryherald.com/news/Bids+Calgary+pedestrian+bridge+millions+over+budget/2230737/story.html

"1000 Bogus Excuses": Calgary Alderman Calls for Lower Property Taxes

Kaitlin MacLeod-Rogers

Opinion Reporter

With the upcoming city budget up for debate at the end of the month, some Calgary aldermen 

are criticizing the current plan to increase property taxes by 5%.  The city counters that citizens' 

expectations for more graffiti control, the Race City relocation, and increased snow removal all 

require the tax hike.  Two alderman, Ric McIver and Joe Connelly, state that this is simply not 

necessary and even "bogus". McIver supports a 3% increase: "My expectation is that there's going 

to be 1000 bogus excuses why that can't be done but if the will is there then the way will also be

there."   Likewise, Connelly is proposing an increase of only 2.5%, outlining his stand on the 

issue as something Calgarians really want to see.  "I'm choosing an aggressive target because I 

think that's the right thing to do because I think Calgarians want us to cut it back as far as we 

can." Whatever side eventually wins over majority support, Mayor Dave Bronconnier raises a 

worthy point.  He states that he is committed to low tax increases and a balanced budget, and 

notes that whatever increase is chosen, Calgary will still have the lowest property taxes in 

Canada.  

http://calgary.ctv.ca/servlet/an/local/CTVNews/20091109/CGY_Budget_PropertyTax_091109/20091109/?hub=CalgaryHome 

Cuts to ‘low-demand’ transit routes

Nicole Butz

News Reporter

To help limit the property tax increase the city is proposing eliminating certain low-demand transit routes and 135 jobs. This will hopefully lower the tax to 4.8 per cent in 2010. This tax raise is equal to about $4.50 every month for each household and would be less than the original amount of 6.1 per cent. The city will be getting rid of the routes which are used less to result in a savings of $1.2 million. It would cut 21 500 service hours which is about one per cent of the transit service. Out of the 135 jobs, 31 are permanent, 43 are temporary, and 61 are vacant. There will be no reduction of the Calgary Police Service budget, which will cost $4.5 million. The city has said public safety is a priority. The cities revenues are down $20 million and an increased demand for services like public transit is expected to rise by 27 000 people. Alberta cities cannot run deficits; therefore the city has already withdrawn $13 million from its reserve fund. The city has been able to save money through other departments and made $20.5 million in cuts. City hall will meet on November 23^rd to discuss the adjustments.

http://www.cbc.ca/canada/calgary/story/2009/11/12/calgary-city-hall-budget-property-taxes.html

Taxes are going Up but Lower than Expected

Stephanie Watt

Opinion Reporter

In 2010 taxpayers were said to be expecting a 6.1% tax increase. Aldermen however have been working hard and have brought the tax level down to 5%. Many people are highly excited about the drop and feel they have accomplished a lot while others however are feeling it could get even lower. Regardless, progress has been made and Calgary City Council officials are working hard to ensure that our taxes remain as low as possible. This tax battle continues though as more money is spent and more time is taken to discuss budgeting. Many revisions have to be made such as transit audits and expanded graffiti cleanup programs but our alderman’s are assuring us if they can keep it under 5% they have everything under control.

http://www.calgaryherald.com/news/Calgary+aldermen+content+with+increase/2205199/story.html

Job Cuts to Limit Municipal Tax Hike

Sunjeev Prasad

News Reporter

The city plans to cut about 135 jobs which include not renewing 43 contracts, leaving vacant positions still open and a proposed 30 layoffs. In addition the city plans to limit transit services in order to curb its proposed tax hike. The Mayor referred to his job cuts coupled with the tax hike as a “balancing act” between providing the necessary services and a decline in revenues. So what exactly does this mean? Many of Calgary’s low-service bus routes will see a reduction in activity, road crews will be doing less maintenance work, and an estimated $54 will be added to the average taxpayers’ bill. Taxpayers could breathe a sigh of relief considering that the city had proposed a 6.1% increase last year that was not approved and is now reduced to the 4.8% which will likely stay put. Richard Truscott, Alberta director of the Canadian Federation of Independent Business argues that city council could have done much more in terms of reducing the increase but Alderman Gord Lowe argues that if this were the case Calgarians would truly feel the impact of the reductions. As for now taxpayers must remain patient and hope that the elected officials in place are there because they are the most qualified to determine what is best for our city.

http://www.calgaryherald.com/news/Calgary+trims+jobs+limit+hike+proposed+budget/2215626/story.html

Keeping an eye on our tax dollar

Sunjeev Prasad

Opinion Reporter

A proposed watchdog that would keep track of municipal tax dollar spending received somewhat of a cold shoulder from Calgary officials recently. Municipal Affairs Minister Ray Danyluk argues that more efficient means exist to keep track of how communities are applying their tax dollars. The basis of Danyluk’s argument is that the watchdog concept would simply be redundant in terms of it overlapping with current validation measures already in place. Simply put it would be a waste of taxpayer’s dollars that could be allotted for better purposes. The Municipal Affairs Ministry is already capable of conducting probes into suspicious spending and in past encounters have been considered very stringent in doing so.

http://www.calgaryherald.com/news/Proposal+Alberta+civic+spending+watchdog+gets+cool+reception/2186703/story.html

Financial Difficulty Coming to an End

Stephanie Watt
News Reporter

Ray Danyluk the minister of municipal affairs announced recently that a plan has been set to ease Calgary’s financial difficulty. It is planned to be spread over 10 years but it is being suggested that it could very likely be taking longer. The problem is that Alberta’s civic leaders want a more steady and stable budgeting plan set in place. Disputes over this have led to even more municipality planning that Sunjeev’s blog entry touches on.

http://www.calgaryherald.com/news/Proposal+Alberta+civic+spending+watchdog+gets+cool+reception/2186703/story.html

Where is the taxpayer's Money Going?

Nicole Butz
News Reporter

After Calgary withdrew its bid for the 2017 Expo, Alderman Ric McIver is wondering what happened to the $300,000 of taxpayer’s money. McIver believes there is irregularity in the spending of the money and intends to explore the issue further. He is wondering if taxpayers were fooled. Mayor Dave Bronconnier released a breakdown of how the money was spent. It stated that $240,000 went to consultants, including funding for the West Village, and an estimated $50,000 to city costs. Bronconnier states that this money is not wasted as it will form the basis for the redevelopment of the West Village. The development will be paid for in the same way as the East Village.

http://www.calgaryherald.com/news/Calgary+aldermen+question+early+withdrawal+Expo/2182375/story.htmlhttp://www.metronews.ca/calgary/local/article/359339--where-did-300k-for-expo-bid-end-up

Calgary Says “No Fair” to World Expo 2017

Kaitlin MacLeod-Rogers
Opinion Reporter

This week, the city of Calgary drew criticism for not being transparent on the loss of $300, 000 in taxpayers’ money. The money was set aside to host a bid for the World Expo 2017, a bid that was just recently retracted. Although Calgary’s no longer in the running, the issue is considered a waste of money by many people, a valid concern that was voiced in an opinion piece by Don Braid of The Calgary Herald back in July. In his piece entitled, “Is World’s Fair Worth It?” (July 22, 2009), Braid criticizes Calgary for entering the bid in the first place. The bid was unnecessary, he implies, since Edmonton is also bidding. Calgary’s last-minute bid was also considered tactless by Edmontonians, or as Braid says, produced an “outburst of northern rage.” The bidding wars should stop, Braid stated at the time, as Calgary doesn’t stand a chance: "Aldermans should save their brains – and our money – for a cause that matters.” With this week’s news about the bid withdrawal, it seems the city of Calgary has saved brains, but not the money.

http://library­.mtroyal­.ca:2090/pqdweb­?did=1802204741­&sid=6­&Fmt=3­&clientId=1751­&RQT=309­&VName=PQD