Tax increase is now necessary, says Holmes

By Deneka Michaud

In the last municipal election, supporting Diane Holmes meant voting for a zero-per-cent tax increase.

One of the Somerset ward councillor’s election promises was a commitment not to raise taxes. But it’s one promise that Holmes doesn’t intend to keep.

“I did run on a zero-per-cent tax increase, but I’ve changed my mind,” Holmes told at least 100 Centretown residents at a public meeting regarding the city budget on Feb. 24 at the McNabb Community Centre.

Holmes’s change of heart comes after a no-tax increase budget was presented to City Council on Feb. 11.

“I don’t like what I am seeing in the proposed budget,” said Holmes.

She said areas such as heritage, arts, culture and recreation were clobbered in the budget and would receive massive cuts.

Holmes said to prevent such cuts a tax increase is necessary.

But turning her back on her election promise doesn’t mean that her constituents are turning their backs on her.

“It’s a little convenient that she gets to play both sides of the fence. But she admitted she made a mistake,” said Rena Patel, a renter in the area who was at the meeting.

Residents in the Somerset ward seem to support Holmes’s change of heart.

“You can raise my taxes!” declared a local artist.

“If we all put in a little more money then we can save the services in our community,” said a Centretown home owner.

“I don’t want to pay more taxes, but I think you get what you pay for,” said Waverley Street resident Patricia Wilkins. She said services need to be protected. “I would pay whatever it takes,” she added.

“Every year we hear the same thing: trim the fat, trim the fat, trim the fat. Well, I’m here to tell you that all the fat’s gone. We’ve liposuctioned all the fat out of the city,” said one man about cuts over the past few years.

Almost all of those present shared these views. Dozens of people spoke out and only one was against a tax increase.

It’s been eight years since the city raised taxes. A major reason for not raising city taxes has been rising property assessments, said Holmes.

But the city’s current budget is running a deficit. They need to balance the books somehow, said Tom Fedec, spokesperson for the city finance department. One way to do so is making cuts, another way is raising taxes.

A six-per-cent tax increase is needed if services are to be saved from drastic cuts, said Holmes. But she is only pushing for a three- to four-per-cent increase.

She said she is not pushing for the full six per cent because in order for a tax increase to pass she needs to get 12 votes on council.

Support will be easier to garner for the lower increase, she added.