Will the federal government step up for cities?
I write a regular column in the Calgary Herald. Here is the full text of my November story: This week, my mind is on the federal government and what it can do to help Canadian cities be more competitive, attract the top people from around the world, and continue to be engines of social and economic development for the nation.
Two important events are spurring my thinking this week: I met in Ottawa with the other big city mayors to discuss the federal government's plans for a new long-term infrastructure program, and there is a federal by-election in Calgary which, if the polls are to be believed, could be very interesting.
First, some numbers: taxpayers in the city of Calgary send about $10 billion more per year to the federal government than we get back in all federal programs and services. I'm not begrudging this: we, along with other cities, are the engine of the economy, and we should pay our fair share for national programs and ensure our fellow citizens in less-populated areas receive fundamental services that their tax base cannot support.
However, we have to also recognize that cities produce tax revenue precisely because people want to live, work, and invest in them. We should never forget—as I always remind people outside of Calgary—that the oil sands are not, in fact, located beneath downtown, and that the Calgary Tower is not actually a derrick. Indeed, the head office jobs we have could just as easily be performed in Houston or Shanghai.
The reason the head office are located here is because Calgary is a terrific place in which to live and do business. To continue that advantage, we need infrastructure that works: an efficient road network, excellent public transit, affordable housing, and clean water every minute of every day.
This stuff costs serious money. A southeast leg of the LRT alone will be up to $3 billion -- or the total City annual operating budget. Without stable and predictable revenue, it's impossible to budget for projects like this. We can't rely only on the property tax, which is also regressive and doesn't take into account people's ability to pay. And while both provincial and federal governments have been generous to cities in recent years, we also cannot—and should not— rely on their whim to fund major projects.
I'm not asking for a $3 billion cheque for an LRT line today; that would be unreasonable. But I am asking for predictability -- if we know that we will get a certain amount of money every year forever, we can take out a mortgage to build that LRT, knowing how it will be paid back. We can't do that now without taking on extraordinary and irresponsible risk.
That's why I am joining with my colleagues at the Federation of Canadian Municipalities in calling for the federal government to establish a new long-term infrastructure program focused on things we city-dwellers need most: cutting commute times through better roads and transit, investing in wastewater facilities, and maintaining and enhancing core infrastructure that makes cities work. This would be accomplished through indexing the current gas tax fund to inflation, and through a series of cash transfers to municipalities.
This is not a handout; it's a small tax rebate on the money that Calgarians already pay, so that we can continue to be vibrant and generate economic growth for the nation.
But it’s not just my voice the federal government is hearing. Calgarians have a unique opportunity to let the federal government know what they think in the very near future. On November 26, the people of Calgary Centre vote in a federal by-election. While some have written off this race as a foregone conclusion, a recent poll indicates that there is in fact a three-way race for the seat. The result is true democratic discussion and a battle of competing visions for the country.
It seems as though Calgarians are willing to look at issues rather than the parties. This is not unusual in a by-election; since voters know the government will not change, they often vote on issues over party or to send a message to the government of the day.
I encourage all Calgarians to ask the candidates tough questions about their party's commitment to this city. Where do they stand on a national transit strategy? What was their position on Calgary losing $100 million in federal funding for our new recreation centres? Do they agree with the proposal for a long-term infrastructure fund?
A number of community associations and the Calgary Public Library are sponsoring a special Cities Matter candidates' forum on Sunday, November 18 at 12:30pm at the John Dutton Theatre at the Central Library. As I write this, candidates from three major parties have confirmed their attendance. We're still waiting on Conservative Joan Crockatt, but I can't imagine why she would want to miss this opportunity to discuss the government's commitment to Calgary. I encourage all Calgary Centre voters to attend.
Let's get the needs of Calgary on the national agenda.
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