Nenshi backs idea to use tax surplus for rebuilding
Mayor says it makes sense to set aside $52M to aid recovery
Mayor Naheed Nenshi said it makes sense the city spend its $52 million tax surplus on rebuilding after flood damage — and he’ll make a proposal to council to do so on Monday.
“While the province and the federal government are saying that they will cover the costs — and we have to take them at their word — there will be things that will not be covered, we know that from past experience,” Nenshi told CBC radio on Friday.
“To set aside this little bit of money to aid in flood recovery and future mitigation, I think, is a prudent thing to do, at least for the next couple years.”
In the wake of last month’s huge flood, the city pegged its initial estimate of damage to public buildings and infrastructure at $256 million.
Nenshi has since said the costs are likely to add up to two or three times that amount.
What to do with the $52 million had been up for heated debate, pre-flood, with suggestions including putting it into transit to paying down debt to returning it to taxpayers.
On Friday, Ald. Andre Chabot called Nenshi’s suggestion the money be put toward flood repairs “ridiculous.”
He said the mayor should instead focus his attention on pushing the provincial and federal governments to live up to their promises of aid through disaster relief programs.
“Why would we want to step in and accept responsibility that falls (within) another order of govern- ment’s responsibilities?” he said.
“To suggest not only are we not going to push for them to accept it 100 per cent, but we’re going to accept some of the responsibility — that’s ridiculous.”
The $52 million in extra taxes came after a reduction in the education portion of property taxes claimed by the provincial government.
Ald. Druh Farrell said the city should put the money into future flood prevention. But she said Calgary must hold the province to its commitments to fund the city’s recovery.
“Considering the price tag will be very, very large, it’s prudent to earmark it for flood,” she said.
“Keeping in mind we need to hold the province and the federal government to their commitment.”