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Saskatoon City Council

Coming to a City Hall Near You

This is what happens when you spend too much time watching video of Saskatoon City Council debates.

What is regressive taxation?

We have a great exchange here between the Mayor and city finance administration on why a flat tax is more regressive then an increase in property taxes.  The mayor is kind of arguing anecdotally that people who live in expensive homes, aren’t making the most amount of money.  It is true in some situations; Warren Buffet lives modestly in Omaha and the CEO of Costco lives in a simple bi-level house but statistically, people live in the biggest home they can afford. 

The boat and RV argument is a weird one for me because once you do there, you can’t really go stop at just boats and RVs.  Do you start to take into consideration the value of cars, golf clubs, baseball card collections or books.  I spend a lot of money on books and technology so should I pay more city taxes?

Our Mayor lives at the Willows which will pay more under a property tax increase than those living in Westview will.  Undoubtably he is hearing about it from his neighbours and his largely suburban electoral base who wants to pay less for roads.  It’s either that or he just doesn’t understand the concepts around basic taxation.  Take your pick.

Of course al valorem taxes are regressive because it isn’t based on income but it’s less regressive than a base tax which targets everyone equally regardless of income.  In Saskatoon’s case, it means that 85% of households would pay more under a flat tax and the wealthiest 15% would pay less.

Ad Volarem Debate

This portion on the September 9th Saskatoon City Council debate on the flat tax is disturbing on so many levels. As you can see in the video clip above, the Mayor is talking about how he doesn’t see the City having a role in wealth redistribution and then goes on to mention affordable home ownership; which is a city run wealth distribution program as money is raised by the Land Bank selling lots at market value and then funnelled into affordable housing and attainable home ownership programs.

Then he launches into the city not using ad volarem for super pipes and doesn’t quite realize that it is only a $2 fee.  Recycling mean while is a fee for service (which is only $4.66 a month).  Finally he gets into the part when he says the people he care the most about are the seniors.  I know what he is saying but there are a lot of people on the west side of the city (that don’t vote for him) that have not benefitted from the economic expansion in Saskatoon and they would be badly hurt by a base tax as well.  So by somehow wanting to keep them in their homes, he plans on taxing them more.  

If you listen to the end, you will hear Coun. Darren Hill challenge the mayor on his suggestions that those who are in favour of Ad Volarem taxes are forcing seniors out of their homes (which is wrong on multiple levels, especially since most low income seniors would pay less taxes under Ad Volarem than under a base tax) and the Mayor denying and demanding an apology.

Here is how Gerry Klein saw the debate

Yet it seemed to have some council members unduly flummoxed, particularly Mayor Don Atchison whose convoluted argument in support of the base tax included insisting that it’s not up to the city to redistribute wealth and claiming that increasing the property tax threatens to throw widows out on the street.

The first part of that argument is clear: The city is responsible for providing services such as maintaining the streets. If charging a ratepayer whose property is assessed to be worth $50,000 the same $170 that is charged to someone whose property is assessed at $1.8 million, well, that’s just fair.

But the second argument appeared to be a non sequitur that contradicts the first. It strayed into wondering why more lowincome seniors haven’t taken advantage of a city program that would allow them to defer payment of tax increases and allow that money to eat into the value of their homes.

The mayor’s argument was so convoluted that it devolved into a painful-towatch war of words with Coun. Darren Hill, who insisted that his rejection of the proposed base tax wasn’t meant to deprive widows of their homes.

“That’s not what I said and I demand an apology,” Atchison replied.

Well, I apologize because, like Hill, that’s what I heard.

Attaching a flat tax that would require 85 per cent of civic ratepayers to pay more in relation to the value of their homes so the remaining 15 per cent – including commercial properties valued in the millions – won’t have to face increases clearly would have a detrimental impact not only on hardpressed seniors on fixed incomes but also on the vast majority of citizens.

In case you are wondering, I downloaded the MP4 of the entire council meeting (40 minutes), imported all four hours of video into iMovie (45 minutes), watched it (kill me now), and then edited some interesting clips and uploaded them to the OurYXE YouTube Channel.  I keep hearing from people who are interested in Council stuff but have no desire to watch hours of it.  Hopefully this will make some of the debates easier to get into.  Of course it almost makes it a lot easier to blog about.

So Toronto is going deeper into debt (and so is Saskatoon)

Does this sound at all like Saskatoon?  It was Toronto under Mel Lastman who felt he needed to freeze taxes.

Perks noted that Lastman froze property taxes during his first three years in office. During that time, the Toronto Transit Commission was rebuilding 18-year-old buses instead of buying new ones, and the backlog in road repairs was growing.

“We had a mountain of backlog. We were in a profound crisis. Between provincial downloading and Mel Lastman’s tax freeze, we had a giant hole. Now we’re catching up.”

This week’s flooding demonstrates the need for sturdy infrastructure, said Di Giorgio, who on Tuesday was visiting homeowners hit with flooded basements.

“When you talk to people, they’re very irate, and you can’t blame them. They’re really upset that this kind of thing would happen and they blame the city for not having proper infrastructure.”

Borrowing allows the city to do more capital projects each year, rather than put them off to future years, he said.

“To do things quicker, you have to go more into debt. I do think it’s okay to grow your debt a little bit at a time each year, because you do have to replace infrastructure.”

This is what Toronto’s debt is being spent on.

In 2011, on Ford’s insistence, the city froze property taxes. The next year he limited the increase to 2.5 per cent, in line with inflation.

About half of the borrowing was to pay for transit infrastructure, such as replacing worn-out vehicles. Other big-ticket infrastructure spending went to areas such as roads, parks and housing.

That is what happens when you put off infrastructure and transit spending.  Eventually it catches up to you and it’s exactly what we are doing here in Saskatoon and it will take a couple of terms to catch up which will mean more debt.

Holding the line on taxes is always popular but those costs don’t go away.  In Saskatoon it is our roads where we used to pay for but not longer do.  Doubt me?  Check out the 2012 Roads Report which gives funding options to city council.  It includes this line.

Although funding for paved roadways has, in general, increased over the past decade, from 2003 to 2008 the annual roadway budget only increased by 0.5% per year, while  the cost of treatments increased by 15.2% per year. This erosion of purchasing power, combined with the general ageing of the network, has resulted in a degradation of the roadway network since 2002.

The result? Check out this 2012 article in The StarPhoenix by David Hutton

Mike Gutek, the city’s infrastructure services manager, said old crumbling roads such as Koyl are a “victim of priority.” The road rates as “very poor” under the city’s ranking of which roads require resurfacing.

Roads are ranked based on condition and traffic volume. The city has 650,000 square feet of roads that are considered in “very poor” condition, but can treat 15,000 square feet per year under the current budget, Gutek said. Ten per cent of local roads in Saskatoon are rated as “very poor” and in danger of failing, according to the city’s latest assessment.

“(Koyl) has not failed. It’s in horrible shape, the asphalt is very old and it doesn’t drive that well,” Gutek said. “It’s really our worst condition (of road), but it hasn’t failed yet (and turned to gravel).”

Saskatoon has fallen way behind in road maintenance and repair as costs for fuel, asphalt and labour have skyrocketed.

Since 2003, the road repair budget has grown 31 per cent while the cost of fixing roads has jumped 216 per cent. But council declined last year to add a phased-in property tax increase over eight years to bring the annual roads budget up to the point where the city isn’t falling further behind annually. Instead, one-time funding was added for a number of individual projects.

City administration estimates $18.5 million per year is needed to maintain the current state of the roadway network. In 2012, roughly $9.5 million will be spent on roadway rehabilitation, including the discretionary funds.

Koyl is not in the city’s five-year road rebuilding plans and likely wouldn’t be fixed until the annual funding amount surpasses $18.5 million, city staff say.

Where does the money go?

The infrastructure department is tackling as priorities high-traffic roads that have completely failed or on the brink of turning to gravel, Gutek said. 

Council likes to pick on Mike Gutek but when they give him a fraction of what he needs each year, what are city staff supposed to do?  Year after year city council says that they hear that roads are our number one concern and instead hold the line on taxes and don’t add any more new money into roads.

So when does Saskatoon start to dig ourselves out this infrastructure hole that City Council has dug us into and how long will it take?  How much debt will we have to take on to pay for these years where council made a negative infrastructure investment.  As we have seen here and in Toronto, unpaid infrastructure bills come due with interest.

Column: Save church as gift to future

My column in today’s The StarPhoenix

More than 100,000 churches and parishes across North America have closed their doors over the past decade. Entire denominations have disappeared or have had to merge to survive.

Despite being part of the Bible belt, Saskatoon, too, has been affected by the cultural shift away from Christianity, and we see in the decline the eventual closure of Third Avenue United Church.

The church been a part of the fabric of Saskatoon for almost a century. Its English Gothic architecture has been acclaimed since it was built. At the time, University of Saskatchewan president Walter Murray called the new building, “The first permanent home of religion in Saskatoon.”

Most churches have a life cycle. They are started, grow, mature and then die. With populations shifting to the suburbs, the lack of parking and the changing role of faith in our communities, many churches in downtown areas are struggling to survive.

There are very few examples of a local church being vibrant on its centennial, because many don’t make it that long. In most cases, tears are shed, stories told and the church is closed and sold. That money is invested in new churches and in projects the denomination see as desirable.

That is the path taken by the River Bend Presbytery. Selling the Third Avenue Church will give it the money to invest elsewhere.

The problem is that the loss of the downtown church would be a net loss to Saskatoon. This isn’t just another building. The Third Avenue United Church has legendary acoustical properties and rivals theatres across Canada as a great performance space.

Its capacity fills a niche in Saskatoon as it is larger than the Broadway and Roxy theatres, while at 1,100 seats, it’s smaller than TCU Place. It adds to the city without competing with other performance spaces.

The Third Avenue Centre, a non-profit group that wants to turn the church into a performing arts centre, has made a proposal to the congregation and the presbytery.

The congregation approved the proposal, but the presbytery disagreed and instructed church officials to send it back on to the market for other bids.

As other cities have taught us, when such facilities hit the open market, they can be lost to the community forever. Some communities have learned the lesson and are converting similar buildings to concert halls and performance spaces because of the value they offer a city.

The market for old cathedrals is traditionally soft.

Organizations can buy and convert them for far less than building a replacement.

Once the Third Avenue church is lost, we will never be able to replace it. There is a reason we don’t build facilities like it anymore: It’s too expensive. Its stonework alone would cost approximately $39 million to replace.

Councillor Darren Hill told The StarPhoenix, “I don’t think it’s the city’s position to get involved in the decision making of the presbytery. That is not our role. But if there is the opportunity to strengthen a bid or a proposal to protect the integrity of the church as a performing arts centre, that’s where we need to come in.”

While Hill is calling on the city to intervene, an even better solution would be for Saskatoon’s corporate and philanthropic community to step up and invest in the next century of performing arts in Saskatoon. It would be a timeless investment in both the arts and in Saskatoon as a whole.

Looking at similar and older cathedrals across Eastern Canada, the United States and Europe, there are countless generations of use left in the Third Avenue building if we are willing to invest in it before it is too late.

Saskatoon would not be alone in doing this. Several cities across Canada have stepped in to transform old churches into performance spaces. Some have allowed the congregation to continue to meet in the space – a solution that would work well here.

As builders and trustees of Third Avenue United Church for a century, it makes sense to give congregation members a home as it moves into its next phase of life as a building.

The congregation got us this far. Now it’s up to us as a city to step up and figure out what’s next. We had the vision to add a world-class art gallery downtown.

Now we need to figure out where a world-class concert hall fits in. This opportunity presents itself only once and, if we seize it, the result will be enjoyed by generations to come.

© Copyright (c) The StarPhoenix

Diminishing anger over snow removal

The anger over snow removal has dissipated somewhat.  Hilary may have the answer.

We only have a handful of letters from people about snow removal. I speak from experience, you can only stay angry for so long. Then you need to conserve energy in order to leave your house.

If you aren’t reading Hilary’s blog on Saskatoon politics, you are doing the internet all wrong.

Why Charlie Clark is running for Re-Election in Ward 6

 

Here  is a short video why Councillor Charlie Clark is running for re-election in Ward 6.  I have worked with Clarlie on a couple of issues and have talked with him a fair bit over the last couple of years and I am amazed at the passion and depth of knowledge that he brings to issues.  I don’t always agree with him on issues but there has never been a time when I have heard him take a stance that was well thought out, nuanced, and contextualized.  A couple of times I have chided that passion only to have him make it clear to me why what he is passionate about matters in Saskatoon.  It’s this big picture thinking that Charlie brings to council week in and week out.  If I was in Ward 6, I’d vote for him.

Note: Not sure who did the design work on his website but it raises the bar for design in the current election.  Nice work.