Council to consider inner-city tax
Proposal could create funding for older neighbourhoods
City council will consider the creation of a dedicated inner-city tax to support redevelopment and infrastructure upgrades in older neighbourhoods.
The proposal emerged at a marathon council meeting Monday that saw dozens of community groups, lobbyists and ordinary Calgarians descend on city hall to provide feedback on the municipal budget.
One of the largest groups pleaded with council to prioritize the welfare of inner-city neighbourhoods that are frequently seeing densification without any new amenities or upgrades to sidewalks and roads.
“I feel betrayed that the city would backtrack on such an important project,” said Marilyn Wannamaker, president of Montgomery community association, reading a letter aloud from her neighbour in council chambers Monday.
“As the city recently approved new subdivision developments, I cannot understand why you would turn your back on inner-city communities.”
Wannamaker, a member of the Advocates into Main Streets (AIMS) group, said the city began approaching older communities a few years ago about zoning changes to allow for more density.
In exchange for accepting the higher density, Wannamaker said, communities like Montgomery and Bowness were promised infrastructure improvements like road repaving, sidewalk widening, better street lighting and shopping district beautification through the Main Streets program.
The city allocated $30 million in new funding for Main Streets in the 2019-22 budget — an amount that AIMS advocates say falls far short of the estimated $500 million required to renew all 24 main streets identified by the city.
Some council members appeared to side with inner-city advocates Monday, suggesting administration had low-balled funding.
“We made promises to communities,” said Mayor Naheed Nenshi.
“We have done mass rezoning of (some) neighbourhoods to allow for more townhome development and row houses and a lot of those community associations said, ‘We’ll take that — as long as you invest in our streetscape and in our sidewalks and in our crumbling roads.’
“I do think that was a miss on our part in the first draft.”
Inner-city councillor Gian-Carlo Carra said he will bring forward an amendment to create a dedicated source of funding for renewing older communities.
Part of his proposal recommends a half-percentage-point property tax increase in each of the next three years to fund Main Streets. Carra pointed out that two-thirds of the current proposed property tax hike will go to new communities and that established neighbourhoods deserve support as well.
Just over 70 speakers signed up to make brief presentations on the proposed 2019-22 budget, with the majority urging increased spending on transit, cycling infrastructure, parks, arts and economic development.
A number of residents and advocates also questioned proposed property tax increases, pushing council to look for ways to reduce municipal spending as the city continues to struggle out of the economic downturn.
There were also some fireworks during Monday’s meeting when a director for the Canadian Federation of Independent Business (CFIB) called on council members
The increases we’re looking at right now come up to about five dollars a month for the average home.
to eliminate some of their own benefits and reduce overall spending on wages and benefits for municipal employees.
“There are things this council needs to do to show leadership and until that’s done, I don’t think this council has a leg to stand (on), to come with these massive tax increases,” said CFIB’s Amber Ruddy.
Several council members pushed back, pointing out city managers and exempt staff have had their pay frozen for several years in response to the downturn.
“I am trying my best to stop the misinformation that has been rampant,” said Coun. Peter Demong. “A comment goes out — and the world just seems to (say): ‘that must be the truth — let’s not actually find out what the reality is, let’s just accept that the city is absolutely ludicrous in their spending.’”
The city is currently proposing a tax increase amounting to 13 per cent over the next four years.
Nenshi said Monday that Calgarians currently pay some of the lowest property taxes of any major city in the country.
“The increases we’re looking at right now come up to about five dollars a month for the average home,” Nenshi said.
“The vast majority of people who come to us have asked us to spend more. Yet it seems that the loudest voices are those that think the city’s inefficient.”