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VFTC calls for zero per cent increase in Vancouver’s 2009 operating budget

26
Feb

For Immediate Release

VFTC calls for zero per cent increase in Vancouver’s 2009 operating budget

City can’t rely on property tax increases to pay for costs

FEBRUARY 26, 2009, VANCOUVER  The Vancouver Fair Tax Coalition (VFTC) says the city cannot continue spending at its current rate and recommends no increase in Vancouver s operating budget for 2009.

Tax increases over the years have gone beyond inflation and population growth. If there ever was a time for city hall to reduce its spending, this is it, says Ed des Roches, VFTC co-chair. In the past 25 years, there have only been seven budgets where the property tax increase was less than four per cent.

In addition to not increasing Vancouver’s 2009 operating budget, the VFTC is also asking for:

  • Zero loss of city services
  • Zero loss of quality of services

After years of generous property tax increases, the City of Vancouver has to tighten its financial belt, says the VFTC. It is important for city council to show leadership as Vancouver’s residents and employers share an uncertain future and economic challenges.

Both large and small employers provide valuable jobs and pay half the city’s property taxes. Everybody is struggling during the economic downturn and we expect city hall to live within its means, just like everyone else is doing, des Roches says.

It will be employers in the private sector that will turn things around, says coalition co-chair Bob Laurie. An increase in property taxes at this moment will slow that process down to a crawl. We are all in this together but it will be the employers that will lead the way out.

Des Roches points out that successive annual property tax increases indicate that either city hall is complacent about being efficient, or it has found efficiencies in its operating budget but failed to pass the savings on to taxpayers.

The VFTC believes it is critically necessary for the city to focus on core services, ensuring there is no loss of services or in the quality of those services.

Cities cannot borrow to stimulate the economy like other levels of government, says the VFTC, because when a city continues to spend, everyone has to pay for it right away.

The VFTC is confident Vancouver can continue to provide the same quality of service, the same number of services, and the same number of grants to arts and social organizations. City hall just has to work smarter and do a better job.

The city has to use sound business thinking on how to deliver its services efficiently, instead of relying on automatic property tax increases to cover the costs, says Laurie.

Vancouver Mayor Gregor Robertson and city council need to make some tough decisions to re-gain taxpayers confidence and demonstrate they are up to the challenge.

Des Roches says the bottom line is elected officials have to deliver a firm NO on behalf of all taxpayers and instruct city staff to ensure there will be no increase in Vancouver’s 2009 operating budget.

The Vancouver Fair Tax Coalition (VFTC), through its member associations, represents more than 43,000 local businesses and land owners. VFTC members are concerned about the high municipal property taxes they pay and the inequitable allocation of the tax burden between residential and commercial real estate.

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Contact:

Bob Laurie, co-chair
Vancouver Fair Tax Coalition
604-202-0360
bob@boblaurie.com

Ed des Roches, co-chair
Vancouver Fair Tax Coalition
604-808-1905
ed@plum.ca

Dixon Tam, media relations
Contemporary Communications Ltd.
604.637.3045
dtam@ccpr.com

For more information about the Vancouver Fair Tax Coalition, visit www.fairtaxcoalition.com

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