Councillor posts lone vote against budget
The "Buy now, pay later” theme is not working for the city, and it needs to plan its spending years ahead in the future, says Coun. Ranj Pillai.
The "Buy now, pay later” theme is not working for the city, and it needs to plan its spending years ahead in the future, says Coun. Ranj Pillai.
"We must properly plan,” the rookie councillor argued Monday night. He then became the lone council member to vote against the final two readings of this year's $59.1-million operating budget.
Along with hikes to user fees and service charges, the budget will hike property taxes by four per cent – the latest in a string of increases over several years.
Pillai said he can appreciate the city has, at least to some extent, been "forced into a corner” thanks to the a period in the 1990s when there were no tax increases and no real vision as to how the city will deal with aging buildings.
Pillai expects the cost of maintaining the new infrastructure will mean an ever-mounting operating bill for the city.
As he pointed out, the city may be constructing new structures like the Whitehorse Public Safety Building at the top of Two Mile Hill that will replace the older structures, but there are also plans to use the old buildings that are being replaced.
The Takhini fire hall, next to the new safety building, for example, is set to serve as a storage facility.
There has been no proper forecasting as to how the city will deal with the rising costs. Pillai suggested the city should be looking at three-year cycles for spending that could prepare residents for certain tax hikes well in advance.
"Can we not identify a plan?” he asked, arguing the city also has to look at where its money is coming from.
As he got set to raise his hand and register a vote against the operating budget, veteran councillor Doug Graham commented that used to be his job.
While Graham joined most of council in voting in endorsing the final two budget readings, it was not without some criticism.
He began by explaining why, in an earlier e-mail, he had suggested the budget is "less than honest,” noting he had been "taken to task” on the matter by other members of council.
Graham then launched into criticizing how the territory's operating grant is explained in budget documents. He went on to state he also takes exception to the graph showing city property owners are among the lowest taxpayers in the country.
Unlike a number of other cities listed on the chart, things like school taxes, policing and, in Montreal's case, utilities aren't included in Whitehorse property taxes.
While the chart makes note of that in the fine print and colour-codes the amount paid in school taxes, Graham argued it is not an honest comparison.
"We have to tell people the real truth,” he said.
In the past nine years, taxes have jumped by more than 32 per cent while the Consumer Price Index has only risen by about 13 per cent in the same nine-year period.
Graham noted he's not sure the latest four-per-cent increase in taxes will be enough to cover city costs in the coming year.
Comments (5)
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Max on Mar 1, 2010 at 9:54 am
You haven't seen nothing yet. Just wait till water metering is implemented . . . that sucking sound will be your hard-earned money flowing out of your bank account into CoW hands, not the sound of flushing toilets . . .
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Arn Anderson on Feb 24, 2010 at 8:11 am
Samson Hartland should get back into city politics so we can have a Seewell house moment.
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mosi on Feb 23, 2010 at 10:42 pm
Boy the term "rookie councellor" used in
the third line of this article is RIGHT ON! Rookie indeed.
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A.D. on Feb 23, 2010 at 8:24 am
Coun. Graham is right. The city of Whitehorse is heavily subsidized and does not show this well in its budget documents.
Whitehorse gets a hefty municipal grant from the Yukon Government to help offset its lack of a tax base. I don't have the exact numbers, but you are looking at about $8 million/year. With about 10,000 properties that is $800/property.
Each property taxpayer gets a further $450 subsidy from the government in the form of the homeowners grant.
Finally, territorial and federal governments pay 20% of all city property taxes on properties they own.
That is before these two levels of government step in with funding support on every major capital project, eg. Canada Games Centre or the new public safety building.
Whitehorse has low taxes because of extensive financial support that no other municipality in Canada has: Not because they are running a tight fiscal ship.