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    Three things to think about ahead of the City of Victoria by-election


    Leslie Campbell

    A growing budget, a lack of transparency, and a boundary-challenged City Council all merit voters’ attention.

     

    IN THIS EDITION OF FOCUS, Ross Crockford interviews candidates running in the April 4 City of Victoria by-election. Who voters choose will provide the current council with some feedback on its direction thus far, so it’s a good time to reflect on recent governance issues and talk to candidates about them.

    One area of concern is the growth of the City budget and residents’ tax burden. This is central, especially in the face of a climate crisis. Keeping spending in check is both highly practical and a matter of planetary survival. Growth costs us in earthly resources and climate stability. Reducing our collective footprint is the best way to ensure future generations have a place to live.

     

    1247276120_2019CouncilPhoto.thumb.jpg.3388d574520fd32aaa22a2346d4405c3.jpg

     

    The City can’t be a climate leader without figuring out how to make government more efficient and less demanding of more and more resources, in the form of tax dollars or otherwise. Ultimately, it’s nature that pays for it all.

    The City’s budget for 2020 will be finalized at the end of April after property assessments are finalized. Land values have gone up in recent years due, at least in part, to City policies around development.

    The City’s new budget, with its proposed $265 million for operating expenses and $43 million for capital expenses, will require an approximate hike in property taxes and utilities of 3.32 percent. The mayor has boasted about adding new programs and services, while keeping tax increases to the rate of inflation plus one percent.

    For an average residential home ($805,000 assessment), the proposed total municipal property taxes and utility user fees will be approximately $3,605, an increase of $116 over 2019 (on top of a similar increase last year). Property taxes ($140 million) and utilities (about $40 million) comprise the lion’s share of the revenue side of the budget, with parking fees, grants and other revenue providing the rest.

    In 2019, the “New Property Tax Revenue from New Development” provided an extra $3.7 million and was used to fund such things as more mayor’s office support ($114k), the urban forest management plan ($858k), an Indigenous artist in residence ($72k), a disability coordinator ($128.5k), a climate outreach specialist ($106k), and a climate grant writer ($117k). The draft 2020 budget notes that it is only in recent years—since 2015—that council has used this revenue to fund services. It used to be used solely to reduce taxes and help fund reserves.

    In a survey about the budget, residents were asked how the City should allocate new tax revenues from development: 55 percent of the 5,100 respondents said “reduce the tax increase.” Half of respondents also said “save for future infrastructure investment.” Only 16 percent responded “invest in new initiatives,” yet that appears to be what the City has done since Mayor Helps was elected in 2014.

    That same survey showed over half of respondents wanted service levels cut in order to maintain or reduce taxes. An exception in terms of increasing the budget was made for VicPD, where 67 percent judged current spending too low. Council has resisted the Police Board’s requests for additional funds in the past, forcing the Province to step in and order increased funding. This year, it looks like VicPD will get its requested four extra officers.

    Every new initiative has costs—even if you get a grant from the Feds or Province, and especially if it’s from new development which increases the need for—and maintenance of—all sorts of public infrastructure, from libraries and schools to roads, parks and sewage treatment, as well as services like policing. The new revenue from development is a pittance when considered against all the costs.

    Reducing our footprint cannot be achieved with continual growth in spending, whether on an individual consumer level, or by government. Climate leadership, then, involves showing how we can do more with less. And sometimes do without.

     

    TRANSPARENCY IS AN ESSENTIAL INGREDIENT of an accountable government, and another issue worthy of consideration on voting day. The City of Victoria likes to think of itself as transparent and communicative, but a recent example shows it needs to do some work.

    In looking into the City’s climate action plan last December, and finding that its greenhouse gas inventory had been done by Stantec, we wondered how much that had cost. The City’s Statement of Financial Information (SOFI) for 2017 and 2018 noted Stantec had been paid $249,629.95 and $211,874.53, respectively.

    Municipal governments are required by the Province to produce a SOFI annually. It’s supposed to provide a basic level of accountability. Our inquiry was about one line on a long list of outside suppliers who, in 2018, charged the City a total of $110 million. That amounted to 42 percent of the City’s operating budget. The SOFI names the vendors and puts a dollar figure beside each name. But how can the public know how its money is being spent without a little more detail? Could we find out what work Stantec did for the City that cost taxpayers nearly a quarter of a million a year?

    Focus asked the City’s “engagement” office what services Stantec provided for those sums. It seemed a simple request to the office that responds to simple requests for information from media. But our simple request for information was directed to the City’s information access and privacy analyst. In a number of lengthy, confusing emails, the analyst noted the “complications” in answering Focus’ question: Two days of work would be required due to, among other things, the accounting system, the multiple departments that might have used Stantec, the 7 different vendor record types for Stantec (with 37 invoices, for example, for just one); and the fact that 2017 records were stored offsite. The official concluded with: “Therefore, under section 6 (Duty to Assist) the City is not required to provide the information you are seeking as it would ‘unreasonably interfere with the operations’ of the City.”

    We persisted, and eventually we asked a question simple enough that the City could answer. In February, we received a one-page record (see link at end of story) from the City’s FOI office showing City ledger entries for Stantec in 2017 and 2018. Among other things, it showed a 2017 charge for over $83,000 for climate action consulting, and another $924 in 2018. (Which was interesting because we had been told earlier that Stantec was paid $17,587 for the emissions inventory —which, as shown in Focus’ last edition, the City manipulated in such a way as to be unrecognizable.)

    We found the Kafkaesque response to our simple inquiry revealing. No one at City Hall could easily tell us where nearly $500,000 was spent. The City is meeting its legal requirement to produce an annual Statement of Financial Information. But its ability to provide even a slightly deeper level of detail is very limited. There’s no true transparency.

    Supplier payments, by the way, have increased a whopping 40 percent since 2015 when Mayor Helps took office. It wouldn’t be so bad if, say, staff costs had gone down, but they have increased 10 percent over her mayoralty, with more coming. In 2020, the number of employees will rise another 20-plus to 882.

     

    A THIRD, CENTRAL QUESTION TO CONSIDER on by-election day is: What is the role of City Council, anyway? This has become important to answer because Victoria councillors have pushed the boundaries about what a councillor should spend time on—from the removal of Sir John A’s statue through proclamations on subjects that civic governments have no authority over. Is council wasting precious time and resources? It has been argued that council’s amorphous mandate is not just wasteful, but is causing unnecessary divides in our community as councillors move from overseeing City operations to more ideological stands.

    Questions about council’s role peaked when Councillor Ben Isitt lobbied for a 50 percent raise for council members to a base salary of over $70,000. In the survey of 5,100 mentioned above, 86 percent said, in effect, fugget about it!

    Some councillors—Isitt included—already make close to $70k with CRD board and committee activities (Mayor Helps about double that). They also get full dental and extended health benefits, and their pay is indexed to the cost of living. They do have to prepare for and attend a lot of meetings. Maybe a $45-70k salary is not enough, but in what kind of fantasyland does one imagine a 50 percent raise? Should it be viewed as a full-time professional-level job? Or modestly-compensated community service, representing City residents on policies? I am looking forward to hearing the views of by-election candidates on such matters.

    One thing the City Council and those 5,000 citizens agreed on was that priority number one is “Good Governance.” And surely that includes being careful, frugal even, with resources.

    On the eve of both the by-election and the 50th anniversary of Earth Day, Leslie Campbell reminds readers that a healthy, climate-stable environment needs citizens who don’t forget to vote. She also gives thanks to the candidates for sticking their necks out.

     

    FOI release of records from City of Victoria: Payments to Stantec in 2017 and 2018

    VIC-2019-121 Responsive record.pdf

     

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