By Jonathan Ward
City hall’s 2008 draft budget was tabled last week, and with it comes the all-too familiar debate between tax hikes and service cuts – a debate Mayor Larry O’Brien calls a “philosophical divide” that will shape the future of the city.
“On one side of the debate, you have a group that wants to expand the state of the bureaucracy,” said O’Brien.
“And on the polar opposite, you have the group that wants things run more efficiently, in a new direction.”
On Nov. 14, city staff presented councillors with three property tax options in their 2008 draft budget: a zero, 1.4 or 3.4 per cent increase.
In the five days following the budget tabling, Centretown News contacted each city councillor to ask which of the three proposed property tax hikes they would support.
Fourteen of 23 responded, with three supporting a tax freeze, five supporting a tax increase, and six stating they were not prepared to answer. Nine did not respond to calls or emails.
“It is impossible to say I support it or not,” says Knoxville-Merivale Coun. Gord Hunter in an email. “It is up to my community to convince me as to what I should support.”
Other councillors were clear about which increase they would support. Somerset Coun. Diane Holmes was highly critical of councillors who will not take a stand.
“I think we have a gutless city council,” says Holmes. “I’ll vote for the 3.4 per cent increase, which still isn’t enough.”
According to the draft budget, without raising property taxes the city will be $59 million short for 2008.
City Manager Kent Kirkpatrick says a one per cent property tax hike translates into $10 million of new revenue.
That means a 5.9 per cent increase would be needed to meet the shortfall.
In 2006, O’Brien campaigned on a promise to freeze property taxes for four years.
He says this can be accomplished through the recommendations of a report he released the day before the draft budget came out.
The report cites “administrative efficiencies, new sources of revenue and a thorough review of services provided by the city” as ways to save $100 million in 2008 alone.
O’Brien also distributed a list of hundreds of city jobs he said could be cut.
At the draft budget meeting, Kirkpatrick and O’Brien butted heads repeatedly over the report, which O’Brien calls “smart management” but Kirkpatrick continually dismissed.
“The analysis was based on personal conjecture, or in a few cases stated anecdotal evidence, and it’s been constructed to support a pre-determined conclusion,” says Kirkpatrick.
Holmes says she will vote to increase property taxes because for her, maintaining city services is a top priority.
“We’ve been through all this in 2004,” says Holmes. “City councillors will say they support the freeze, but vote against it when they see the list of cuts.”
But some councillors remain committed to a tax freeze.
“I have supported the goal of a zero percent increase,” says Orléans Coun. Bob Monette in an email.
“I have committed to my constituents to work as hard as I can towards that goal.”
The councillors who support a property tax freeze are: Orléans Coun. Bob Monette, Innes Coun. Rainer Bloess and Rideau-Goulbourn Coun. Glenn Brooks. The councillors who support a hike are: Barrhaven Coun. Jan Harder, Bay Coun. Alex Cullen, Knoxdale-Merivale Coun. Gord Hunter, Rideau-Vanier Coun. Georges Bédard and Somerset Coun. Diane Holmes.
The councillors who responded but would not give an answer are: Kanata North Coun. Marianne Wilkinson, Stittsville-Kanata West Coun. Shad Qadri, Rideau-Rockcliffe Coun. Jacques Legendre, Kitchissippi Coun. Christine Leadman, Cumberland Coun. Rob Jellett and Kanata South Coun. Peggy Feltmate.
Councillors are expected to approve a budget during the week of Dec.10-14, after three weeks of public consultations.