Council clashes over tax increase

The following article appeared in the July 29 edition of the Guelph Mercury:

For a council known as one that gets along, last night’s meeting was a big departure.

The issue was spending. There was a some sparring, anger, and even reminders of the last council.

It started with a petition of 700 signatures, brought by Dominic Allard, asking council to not consider a 6.5 per cent tax hike in 2009.

“We don’t want a 6.5 per cent increase. That’s not even in the cards,” Councillor Kathleen Farrelly said last night.

Council’s policy is to start budgeting with a guideline increase that would maintain services, plus one per cent for new services. This year, that comes to 6.5 per cent. But many councillors emphasized they don’t actually support that.

“There’s a huge confusion out there,” Allard told council.

After Allard’s presentation, Coun. Gloria Kovach brought a motion asking staff to keep the tax increases low, prioritize capital projects, discuss not going into debt for capital expenditures, and come up with a tax guideline less than 6.5 per cent.

“Council needs to show leadership and not tap dance around” the issue, Kovach said. “I’m hearing people say around the horseshoe ‘Why can’t our grandchildren pay for this?’ I don’t support this.”

Coun. Karl Wettstein said councillors already told staff they weren’t comfortable with 6.5 per cent. All the items in the motion are already in the works, he added.

Coun. Lise Burcher added the guideline is part of the budget process.

“We’ve all committed to supporting this process and we need to stay the course,” she said.

“I’m frightened by what I see as an overwhelming propensity to spend money,” Coun. Bob Bell countered. “I believe Coun. Kovach has a pretty good idea on how to combat that urge.”

Coun. Christine Billings said she doesn’t support having another preliminary budget meeting. She suggested council come up with a new guideline on the spot.

“I can say I support 3, 3.5,” per cent tax increase, Billings said.

But councillors weren’t willing to amend the guideline. Then, things got more acrimonious.

“I feel very intimidated by the tone of this motion and very uncomfortable commenting, but I can’t stand by any longer,” Coun. Ian Findlay said.

“This is reminiscent of the dysfunctional government that was soundly rejected last time. . . . I think a reasonable person would say this violates the code of conduct of this council.”

The motions failed, as did another controversial motion, later in the meeting, to ask staff once again to consider not taking on debt for capital projects.

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