Reflections on the 2011 City Budget

When I voted against the city’s budget last Thursday, I didn’t do so lightly. I understand the importance of compromise and consensus when crafting a civic budget. This was my sixth budget since my election to council in 2004, and I have never before voted against one.

I expected my decision would prompt a reaction, and it has. Therefore, I’d like the opportunity to put that decision into context.

My vote has been misrepresented as a call to squeeze more money out of Edmonton taxpayers. This is patently untrue. My issue lies in the way we collect that money.

Since the 2005 budget, civic services have been cut by approximately $30 million. During that same period, council has made consecutive reductions in the assessment base while increasing its reliance on user fees, utility fees, and dividends (including those collected from sanitary drainage, EPCOR and the newly created Waste Utility). The city has also dipped into its savings to cover operating costs.

As a result, approximately half of our revenue now comes from discretionary sources (user fees/savings), rather than the much more stable source of taxes. This puts our city in a precarious position: if we ever see a drop in our utilities dividends and investments, we will be faced either with drastic cuts or huge tax increases to deal with the shortfall. At the same time, I feel it is philosophically dishonest to hide tax hikes in the guise of higher fees for city utilities and facilities.

My vote was also prompted by a matter of principle. The new budget creates a higher tier of fees for the new Terwilliger Recreation Centre, despite the fact that Edmonton’s citizens collectively invested $160 million in its construction. The city’s multipurpose facility pass will not allow people to use Terwilliger. In other words, many of the people who paid for the facility won’t be able to afford to use it. This two-tiered approach to accessibility and affordability for Edmonton’s municipal recreation facilities sets a bad precedent.

During the budget debate I supported or made numerous amendments, in an effort to reach a compromise that I could comfortably support. Ultimately, though, I felt the budget in its final form did not adequately protect Edmonton’s health and well-being.

I recognize that we face difficult economic and social times. However, to sustain our families and communities through these struggles, we must be prepared to carefully invest in good civic services, including such things as police, fire, public transit, roadways, parks and natural areas.

Edmontonians seem to get this. During the recent civic election campaign I spoke to thousands of people at doors and at forums, and not one of them demanded a cut in civic taxes.

Nobody—not even a city councilor—loves the idea of paying more taxes. But the alternative isn’t always wiser, or less expensive in the long run.