T.O. lessons from Ottawa mayor |
When it comes to balancing his city's books, Ottawa Mayor Larry O'Brien has a different philosophy than his seemingly tax-happy counterparts running major cities across Ontario.
The founder and retired CEO of Calian Technologies Ltd. believes that before he can even start "cranking up the tax rates" or cutting wading pools, he as mayor must ensure his city is being run in a business-like fashion.
"From a business point of view, I want to see this city as a model for the most efficient and effective city in North America," he told me earlier this week.
I spoke with the colourful neophyte politician -- who managed to shepherd a zero tax hike through Ottawa council in 2007 -- just days before yesterday's release of his city's $2.6-billion draft operating and capital budgets for 2008.
I was curious to know how he can talk zero tax hike when many of Ontario's big city mayors appear poised to follow Mississauga Mayor Hazel McCallion's lead and raise taxes by a whopping 8.9% next year. And our city's Mayor David Miller has made it clear he can't simply rely on property taxes alone but must take advantage of his City of Toronto Act taxing powers, not to mention whatever bailouts are thrown his way from the feds and the province.
"The citizens are fed up seeing the cycle of increased taxes whether they come through traditional property taxes or whether they're levies relating to land transfer or vehicle licensing," contended O'Brien. "A levy is a tax in a tuxedo."
'REFRESHING'
His efforts have certainly earned him kudos from Kevin Gaudet, Ontario spokesman for the Canadian Taxpayers Federation. "I think he's refreshing," said Gaudet. "He's the one beacon of hope with tax hikes all over the place."
O'Brien said he has no doubt Ottawa residents would "accept" a tax hike this year -- given the city's downloading issues and infrastructure needs -- IF he can show what they're doing "internally" to reduce the cost of administering City Hall. "But we haven't done that yet in this city ... we haven't even scratched the surface," he said.
His plan this year is to tackle the general administration expenses -- the costs of administering human resources, legal, accounting and other internal services that have no bearing on the delivery of programs to citizens. He said City Hall's administration costs represent 17% of every dollar they collect from taxpayers.
But his long-term plan is to exact $100 million in savings over the next three years from indirect and direct client services -- through productivity and technology improvements, the selling off of assets, alternative service delivery and procurement savings.
PARKING METERS
In a speech given to Ottawa business leaders last week, O'Brien indicated he'd be proposing to council that all new spending initiatives include a "fully costed comparison" between delivery of the service "internally" and "externally" -- referring to the possible privatization of the city's parking meter operation as one example.
"The unions can be a partner in all of this too," he said. "In some cases the city workers are going to be better suited to deliver some of these services." That said, being one vote on a 23-member council, he concedes "it will be a struggle" to maintain a zero tax increase this year.
Judging from the draft budget documents -- which talk about options to cut frontline services and only present $20-million in potential savings -- getting city officials to adopt a like mindset will be an uphill battle.
"I can't be so bold as to guarantee it (a zero tax hike) but our war has just begun," O'Brien said. "I'm about as popular as a skunk at a garden party sometimes but this will go on ... it will never end as long as I'm mayor."
1 comment:
Sue Anne is a bloody twit. She has shown this numerous times when she has wrote erroneous facts in the past (I emailed her one such occasion and she seemed to try and gloss over her glaring oversight...).
I lived in Ottawa for years, and anyone who has lived in both cities, or actually possesses some reasoning power, would be able to spot the difference.
Now it's nice to see a mayor intent on running a tight ship, our mayor would do well to focus a little harder on this endevour, but spare us please the vacuous comparison to Ottawa.
If you're going to criticize Toronto city council at least do it with some credible ideas.
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