The Governance, Finance, and Infrastructure Group (CC-GFIG) spoke to Calgary City Council on Monday about the City Budget. This is a summary of what we said.
After careful review, we recommended an increase in taxes in the order of 8% per year over the next three years. This level of tax increase is justified for several reasons:
- Most Calgarians feel they are receiving good, but not excellent service from the City. Calgarians have made it clear that excellence is expected and will only be achieved when more money is provided in key areas. (2011 Citizen Satisfaction Survey, Public Engagement Process & Results)
- A tax increase of around 7.5% per year for the next ten years is needed to eliminate the City’s operating and capital deficits (Long Range Financial Plan 2011).
- Sixty per cent of Calgarians are willing to pay more for the services they need – 27% want taxes increased to expand services (2011 Citizen Satisfaction Survey).
- Calgary will remain competitive with other cities even with three years of 8% increases.
We believe the primary goal of government is to help those who have been disadvantaged by circumstances or poor choices. We also know government holds the key to ensuring safety, sustainable development, and a level playing field for business. As a result, we recommended that additional money be provided in these areas:
- The Police Service: Inadequate funding is the primary reason the Police Service has not achieved the excellence the public expects.
- The Fire Department: Response times remain below safety standards and, since 2006, have declined for six safety standards out of eigh
- Calgary Transit: Transit is the key to reducing traffic congestion by providing high-quality service that will retain regular transit users and encourage occasional and former transit riders to become loyal customers.
- Family & Community Support Services: Under the proposed budget, FCSS services will be spread even thinner, resources leveraged through partnerships will decline, and participation in after-school and other out-reach programs will, at best, remain static. This will particularly affect new communities where a police presence is difficult to maintain.
- Office of Land Servicing & Housing and Calgary Housing Company: It is vital that the City provides more funding to ensure that Calgary’s 10-Year Plan to End Homelessness will be a success.
- Land Use Planning and Policy: Additional funding is needed for analytical tools for the Growth Management Framework and to build the “more proactive, strategic model” for addressing Calgary’s regional interests
To make these things happen, we recommended that, using the tools available now, Administration develop by early 2012 a comprehensive plan for improving the way the City raises revenue. The objectives of the revenue plan would be to:
- Meet imagineCalgary’s financial targets
- Less reliance on property taxes.
- General revenues based on progressive taxation.
- Public goods and services priced according to public benefits.
- Maintain and improve service.
- Eliminate the deficits in operating and capital funding.
- Implement a cost-recovery policy for roads.
By adopting these recommendations, the 2012-2014 Budget will move Calgary towards becoming a truly global, vibrant, and sustainable city. Calgarians are looking to Council for leadership. Council has made a good start with this year’s process to build a better budget. Now is the time to finish the job. Let the Mayor and your Alderman know what you think.
Read CC-GFIG’s letter to Council on the budget here.
