Sunday, June 6, 2010

Increase our taxes....Please.....Please !!!!

Earlier this week, The Ottawa SUN trumpeted on its front page that the majority of Ottawans are quite prepared to pay more property taxes and user fees in order to maintain city services. According to the SUN's exclusive Leger poll, some 43 per cent of us don't mind being bled white by the bloated bureaucracy on Laurier Avenue.
Those of us who are familiar with polling techniques know that the responses depend on how the question is formed. In this case, the question was: Which of the following statements most accurately reflects your view on city taxes today ? a) The city must maintain its current level of city services, even if that means some increases in user fees or taxes; b) I would be willing to see a significant cut in services in order to hold the line on taxes; and c) Neither statement.
This question was put to some 600 adult Ottawans (over age 18) during the period between May 14 and May 21 and according to Leger, their polls are accurate to within +/- 4 per cent 19 times out of 20.
Forty three (43%) of those polled answered "yes" to (a); 28 per cent answered "yes" to (b);
27 per cent answered neither (a) nor (b) and two per cent said they didn't know. Wouldn't these figures indicate that rather than the majority of Ottawans being OK with a tax or user fee hike, the majority falls into the groups which are either not in favor or haven't made up their minds yet. Citizen Ellie suspects that those who haven't made up their minds yet are likely to be opposed to tax and user fee hikes when they finally do make up their minds. If these folk were hoo-haw happy with tax and user fee hikes, they would have answered (a) in the affirmative -- without stalling.
So before the tax-and-spend chardonnay socialists at city hall start dancing, rubbing their hands together and salivating with glee at the prospect of yet another automatic budget increase without having to undertake any measures which might bring relief to ratepayers, they should think again.
City politicians and bureaucrats have long used the spectre of cutting services to justify their laziness with the red pencil and their unwillingness to change the way they do business. Give the public a good scare -- we'll have to close your library; no indoor rinks will operate next winter; your house might burn down because there won't be enough firefighters -- and Joe and Jane Lunchpail will fall into line. Citizen Ellie has heard them all over the years she's been following municipal politics. And it never ceases to amaze her at the number of well-educated, thinking Ottawans who routinely fall for this guff. Could it be that because Ottawa is a civil service town and the bureaucratic mentality of never changing the operating methodology permeates every segment of life in this city ? Would things be different if the private sector dominated Ottawa's economy --like Windsor, for example ?
Some councillors -- Eli El-Chantiry, Marianne Wilkinson and Rick Chiarelli -- are not averse to looking at new ways. Councillors El-Chantiry and Wilkinson moved the motion back in April supporting a " financial sustainability summit" proposed by the Ottawa Taxpayer Advocacy Group (Ottawa TAG) and slated for June 22. This motion, to gather input from the public pending review of the Long Range Financial Plan and future budget process, was supported by Councillors Legendre, Feltmate, Deans, Hunter, Wilkinson, McRae, Desroches, El-Chantiry, Bloess, Monette, Bellemare, Bedard, Jellett, Leadman, Quadri, Cullen, Doucet, Hume and Chiarelli. Nays were Councillors Harder ( a surprise) and Holmes (no surprise).
Ottawa TAG has prepared a series of questions for the summit, questions which examine departmental costs with a vew to maintaining services while at the same time implementing a two-year budget freeze -- i.e. "no new money" -- which is what the federal government has done in its budget process.
There are those who say this is impossible -- including the SUN's city hall columnist Susan Sherring -- on the basis that the city's unionized employees won't accept pay cuts or wage freezes. Non-acceptance of taxpayers' financial realities on the part of unionized city workers is a given. but that doesn't mean throwing up one's hands in defeat ! A wage freeze is one potential tool, but there is no need to be concerned about job losses. If staff reductions are necessary, they can be achieved by attrition or staff can be absorbed by a service which needs to grow. Under a "no new money" program, funding for wage increases would have to be found from within a department's existing budget. That's what the feds have told their employees, and Citizen Ellie would not be surprised if something similar occurred at the provincial level. It would mean department heads would have to work harder to eliminate waste and featherbedding. And there's no reason why non-union, management and executive wages can't be frozen. There are too many on the "sunshine list" anyway !
In order to move away from the generic response that a two-year budget freeze would mean taking fire, police and snow plows off the streets, an Ottawa TAG member who holds a Master's degree in Business Administration, has spent a month conducting a line-by-line review of the city's budget. A herculean task and a volume of information has been amassed. Fifty core services, non-core services and administration costs were identified and each of these was broken down into 20 subgroups. There are efficiencies to be had by taking a serious look at spending on promotional items, performance measurement, communications, planning, billing, processing expense claims, office stationery and furniture, procurement, record-keeping etc. Non-core service items. And there's the all too familiar technique of continuing to carry unfilled positions on departmental personnel rosters in order to bolster departmental funds.
Ottawa TAG has determined that $243 million can be found by implementing a 10 per cent reduction in these areas: executive/board/management; non-service administrative excluding Hydro); non-departmental costs (excluding Hydro); administrative costs for core and non-core services; outsourced legal and consulting services (excluding Hydro); some capital costs; some core services (five per cent cut); and non-core services.
Ottawa TAG also believes the city should look at innovative ways of providing services by putting some of these services out by tender to the private sector. Ottawa contracted out its garbage services long ago. And Windsor is currently looking at outsourcing its parking enforcement branch.
One of Ottawa TAG's suggestions which caught Citizen Ellie's eye was using cheaper civilian employees to conduct police reference checks rather than have highly paid police officers do this job. Citizen Ellie knows of at least one jurisdiction in North America where volunteers are used for this purpose -- Yavapai County in Arizona, where the sherriff's department makes good use of volunteers in a number of capacities, including police reference checks.
Financial sustainability is not something to be sneered at, nor should its proponents be summarily written off as a bunch of kooks who know not of which they speak. Citizen Ellie just sent the city her second property tax payment -- total this year was $7,261.20. In return, she gets the bare minimum of snow removal in the winter. In the spring, summer and fall, when snow melts or it rains, her street is ankle-deep in water as there are no storm sewers. Citizen Ellie supports Ottawa TAG's efforts to force serious public discussion of the city's financial sustainability prospects. It would be better for the city to act in a studied fashion now than react in a panic at some later date when the well truly does run dry.
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