Taxpayers are stretched thin and are asking candidates for office to give a hard, long look at ways to hold the line on taxes, reduce spending, and become more transparent and accountable . . . we believe this 2011 crop of candidates will be pivotal to that effort.
Canadian Taxpayers Federation,
September, 2011
The Canadian Taxpayers Federation would like candidates in the upcoming municipal elections to sign a Contract with Taxpayers and to commit to 10 principles outlined in the groups background document.
To give legal strength to the contract, the CTF has drafted a Taxpayer Protection Bylaw it wants councils to adopt under Section 8 of British Columbias Community Charter.
According to the bylaw, candidates who make the commitment but fail to measure up will face a one-year, 15 per cent pay cut.
Few would argue with the federations overall goals: lower taxes, less waste and accountable government. But, despite some really positive aspects, when it comes to putting the initiative into practice, CTF may find the task more daunting than it appeared to be on paper.
The over-arching problem is that the bylaw makes no provision for the fact that a councillor who signed the contract might be the only person on council who did. If so, while the individual could still comply with the spirit of the document, and work towards its goals, he or she would be powerless to force specific performance of the contract by his/her council colleagues.
That said, one CTF background principle is essential to the control of municipal budgets: the municipality will not take on or fund services that are the proper jurisdiction of federal, provincial or regional governments.
Bravo!
The push-back on downloaded responsibilities especially TransLink should have topped UBCM agendas for more than a decade now. Instead, individual councils kept quiet for fear they would lose provincial support for projects in their communities.
The strength in numbers concept didnt dawn until this year over smart meters and the RCMP contract.
With respect to appointed regional committees Metro Vancouver for example the CTF contract would be difficult to enforce on a person who becomes a representative at both tables.
Another CTF principle says that, if elected, the candidate will not vote to raise property taxes beyond the provincial rate of inflation unless taxpayers approve the increase via a referendum.
Although that may sound inviting, referendums cannot be held at the drop of a hat to meet budgeting deadlines. Budget discussions by councils and staff already take more than three months to reach the point at which tax rates can be firmed up. To suspend deliberations to allow for a referendum because the suggested increase exceeds the rate of inflation would be unwieldy to say the least.
Furthermore, depending on the size of a municipality, a referendum not held at the time of an election might well cost more than the transgression itself.
A more effective strategy would be for concerned residents to provide knowledgeable input at open budget meetings when it counts the most before the tax rate is set.
The CTF bylaw also wants municipalities to move toward fee for service for as many as functions as possible.
Another principle decrees that municipalities must remove services from the property tax base that can be paid for by individuals such as utilities, water, garbage, recreational facilities, etc.
Whats left of the municipal mandate?
Removal of those items from local budgets would require the provincial government to amend legislated municipal-regional responsibilities as currently described in the Community Charter/Local Government Act.
What would be more important to communities like those on the North Shore is a recalibration of the scales.
When it comes to paying for many of the regional services we demand, it is often the case that property-tax bills are merely the invoicing mechanism for the fees in question. And if TransLink and other responsibilities were returned to the ministries from whence they came, provincial taxes would only take up the slack because one of our pockets has to pay for them.
Strangely, the CTF makes no mention of the heaviest budget determinant: municipal salaries and benefits.
In summary, examination of the CTF contract, principles and draft bylaw raises more questions than answers.
That is not to say the ideas lack merit. Indeed, many of the federations goals could be achieved if only tax-weary citizens would do three things:
- support the Federations call for an independent municipal auditor general;
- recognize the truth that that officer cannot alter or impose policies; and,
- demand that all governments implement the recommendations of their own auditors general.
