It’s a little like the items marked $1.99. We all know it’s really $2 – but it feels a bit better thinking it’s a deal in some way. So when the city says it’s working on keeping the tax hike at 2.98 per cent, we say, “Really?”
Let’s face it, it’s really three per cent, and when you consider the hikes in utilities and sundry other items, taxpayers are probably being dinged well above the inflation rate.
The overriding questions are: should this continue and can it continue?
The Canadian Federation of Independent Business just released its ninth annual report looking at the growth of city hall spending in B.C., and it sits squarely on the side that it shouldn’t continue and can’t continue.
According to its report from 2004 to 2014, the total B.C. operating spending (adjusted for inflation and capital expenditures) grew by 48 per cent. But population growth during that period only grew by 12 per cent. The average municipal spending per person rose from $889 in 2004 to $1,178 in 2014. That’s a lot.
According to the report, only six out of 152 municipalities in B.C. have kept operating spending in line with inflation and population growth over the past 10 years – and New Westminster wasn’t one of them. In fact, no large municipalities (population of 25,000 and over) made the list.
The 2013 report that ranked cities from 1 to 152 had New West at number 79 (with one being best) at how well they are managing expenses versus population growth.
Now, to be sure, the CFIB has a horse in this race. It is concerned about businesses and view things through an entrepreneur’s lens. But it’s a valid point.
Taxpayers want more services, better services, more parks, better roads, more recreation options – all of these things come with a high staffing cost. It’s one thing to build an Anvil Centre - it’s another thing entirely to operate it with city staff who are in public sector unions being paid wages higher than in the private sector. In a small city with a limited tax base – and little industry – homeowners will have to pay a larger share of the tax burden as time goes by.
So, this past week, when residents were complaining about streets not cleared of snow fast enough – it might be a good time to ask ourselves if we’re willing to pay more to keep services up to our expectations. Perhaps many of us are. And, then again, perhaps many of us believe the CFIB is raising a red flag that deserves a lot more consideration.
