City can’t afford SoBi,

Hamilton is already looking at a $60-million deficit; we can’t add to it without severe consequences

If nothing else, the outpouring of rage and social media ire that’s followed the city’s decision not to bail out the SoBi bike sharing system early Thursday morning is predictable. With most online teeing off on any councillor so backwards, so elitist, so old, so spiteful, so suburban, so hateful as to possibly vote against such a thing.

What’s lost in the fire and brimstone is the reality that it’s possible to think it’s both a good program and one that simply isn’t affordable right now. Because even if some don’t want to believe it, public money does not magically bubble up from special wells guarded by unicorns and pixie dust.

We’ve been repeatedly told that because of COVID-19, this city is staring down the barrel of a $60-million revenue shortfall by midsummer. How are we going to recoup this cash (which we must, by the way, since municipalities are not permitted to run operating deficits)? Will we raise taxes by double digits? For people in a city already massively taxed — especially retirees on fixed incomes — that would be disastrous. Will we make sweeping cuts to programs and services? We’ve seen a huge distaste for that already.

Ah yes, we’re going wait for the provincial and federal governments to bail us out as big-city mayors across the province have demanded.

That is what’s known as a lottery ticket. Our numbers might indeed come up. On the other hand, don’t know if you’ve noticed, but our national debt is set to pass the $1-trillion mark this year. How much is a trillion? Well, a trillion seconds ago it was roughly 30,000 BC, if that gives you any idea. Put that in dollars and it’s unfathomable. And we haven’t yet even discussed the provincial debt.

With that as the hole we’re in — and still digging — will higher levels of government be eager to throw many more billions at cities all over the country? Maybe. But it’s hardly a sure thing. Keep in mind, we’re also going to be asking for federal money to go along with the billion dollars from the province to help build the LRT. At some point, they’re going to say no.

So without some assurance that our local situation is going to be looked after, what kind of financial craziness would it be to add more to our deficit? Even a relatively small amount. That would be like you buying a mansion with no job and no sure prospects and then saying,

“You know what, throw in a pool while you’re at it.”

The bike share system is popular with thousands, fills a need for some and even adds to the texture of the city. Not arguing any of those points. But none of that trumps the reality of our situation.

We. Do. Not. Have. The. Money.

Yes, putting the bikes in storage will cost us something but not as much as keeping it going. And if no private group can be found to take over the program in the next few months, we’d either have to continue paying another few hundred thousand bucks to keep it active or put them in storage at that point. Meaning we’d be doubling down.

Once we receive some promises from either Mr. Trudeau or Mr. Ford that our local fiscal crunch will be forgiven (and we have a private operator identified) we can have this discussion again. But make no mistake, those screaming loudest at council for killing this program — which it didn’t do, it simply pulled the plug from a patient already on life support — will surely be screaming even louder if we suddenly find ourselves on the hook for that $60 million and sweeping deep cuts have to be made to much-moreimportant programs.

This is not about elitism or anti-bike or anything like that. It’s a simple reality that anyone who handles a household budget should be able to grasp. We’re drowning right now. At this point in this crisis, every dollar that can be saved, should be. All new spending should be stopped. Not just on bikes, on all new projects. At least until we have some clarity.

We are in a brutal reality right now. We can’t simply pretend otherwise.