Calgary Herald

Chamber’s message to council: Status quo is not good enough

- STEVE JENKINSON

Angered by repeated tax hikes and rising city spending after two years of recession, Calgary business owners voiced their collective displeasur­e during the often testy municipal election campaign.

Calgary Chamber of Commerce president Adam Legge says it’s evident candidates took notice, even if most were short on specifics about how to retain jobs and grow the local economy.

“Business issues, efficiency and entreprene­urialism really rose to higher levels than we’ve seen in the past few elections, so we were very pleased with that,” Legge said Tuesday. “There were more people talking about it, more of a focus ... during the campaign.”

A Trend Research poll conducted for the chamber in late September found taxes and the economy were key issues for Calgarians.

Of the 300 people surveyed, 31 per cent cited taxes and money management as the most important issue, followed by the economy and jobs, at 23 per cent.

A majority of respondent­s — 55 per cent — said they believed the city is overspendi­ng.

“We did see some musings around what to do with respect to some spending and efficienci­es, but I think we’ve got a council that, quite frankly, has its work cut out for itself to really protect jobs and make sure Calgary is a competitiv­e place to do business,” said Legge.

Mayor Naheed Nenshi, who was re-elected to a third term Monday, pledged during the campaign to extend a cap on property taxes for non-residentia­l properties outside the downtown core.

Council in January approved a one-year, $45-million plan to limit non-residentia­l municipal tax increases to no more than five per cent. The subsidy program was prompted by a $4-billion drop in the assessed value of increasing­ly vacant downtown offices that shifted the tax shortfall to the owners of buildings outside the core.

“The reality is it’s still a Band-Aid to a problem that’s going to plague us for probably upwards of a decade,” said Legge.

“What it really speaks to is city council needs to look at its budget and begin to cut its spending, so that it doesn’t actually need as much from taxpayers, and, secondly, begin to spread that burden more on to the residentia­l sector.”

The chamber, before Monday’s vote, launched an online campaign that offered three core recommenda­tions for the next council — more efficient spending, greater tax equity and the removal of outdated regulation­s and red tape.

Half of the 14 winning ward candidates pledged to back the chamber’s recommenda­tions.

Legge said the city’s 2017 business tax rate was 3.5 times the residentia­l rate.

The chamber plan would reduce that to 2.85:1 over the next four years, and to 2:1 within 10 years.

Average annual city spending has increased 6.5 per cent since 2009, almost double average inflation and population growth during that time, according to chamber figures.

Legge said while optimism is slowly returning within his membership, mounting costs connected to all three levels of government remain a concern.

“What I don’t want any of the returning city council to think is that their return means everything is OK and they can keep doing what they’re doing, or what they have done,” he said.

 ?? FILES ?? Calgary Chamber of Commerce president Adam Legge says Calgary’s new city council “needs to look at its budget and begin to cut its spending, so that it doesn’t actually need as much from taxpayers.”
FILES Calgary Chamber of Commerce president Adam Legge says Calgary’s new city council “needs to look at its budget and begin to cut its spending, so that it doesn’t actually need as much from taxpayers.”

Newspapers in English

Newspapers from Canada