Some see tax hike as answer to city budget shortfall

By Colleen Dane

Ottawa’s proposed solutions to a $22-million revenue gap in its draft budget will mean service cuts but no tax hike for Centretown residents.

“You know what I see? I see death by a thousand cuts,” said Marguarite Keeley, executive director of the Centretown Community Health Centre, when the proposed cuts were presented at a budget consultation meeting Nov. 21.

Hosted by Somerset Ward Coun. Elisabeth Arnold, the presentation explained the city must cut services as another revenue source to make up for increased service costs without raising taxes. The city hasn’t raised taxes since they were cut during the amalgamation.

“I think residents are getting very tired of how basic services get cut year after year,” said Arnold. “How year after year, the fees are expanded.”

To cover the revenue gap, Ken Kirkpatrick, the city’s general manager of corporate services, presented options ranging from reduced lighting in parks to an average increase of $15 in monthly parking rates.

“It just shows what we have been experiencing as a community since the municipal government decided to hold the line on taxes,” said Sue Lott, president of the Centretown Citizens Community Association.

But some solutions to the city’s problem, such as reduced snow removal and increased user fees for recreational facilities, could cause trouble for many downtown residents.

Proposals such as a five-per-cent increase on aquatic fees and hike in ice rental rates are a big concern because of Centretown’s comparatively low-income average.

“Because we have a lot of low-income families in the area, the increase…will really hit the quality of lifestyle for people in Centretown,” said Lott.

The proposed reduction in snow removal and decrease in salt use on residential streets is also a concern to Ottawa’s downtown community.

“It is a mobility problem, the snow clearance,” said Keeley. She said there are elderly people who are unable to get into the health centre during the winter already.

“This is not an issue of income, it’s an issue of people getting around when the sidewalks are snowy.”

With the amount of cuts it will take for Ottawa to make up the $22-million gap, some residents are wondering if a tax hike would be more effective.

“I’ve thought it would be really helpful to have a public debate about what it would mean with a minimal tax increase and if this is what we need,” said Lott.

Kirkpatrick told residents at the meeting that a one-per-cent income tax increase would generate $8 million for the city. Arnold said one per cent would mean around $45 more per year.

Some think an increase in taxes may be a thoughtful alternative.

“Given the straits we are in, how reasonable is it to stay at the level we cut to two years ago? We may end up paying more in the end,” said Keeley. “I worry about what we will lose.”