Municipalities must focus on needs not wants this budget season

If the largest city in Western Canada can aim for a zero per cent property tax increase, surely those municipalities with a fraction of Vancouver’s budget can do the same. Vancouver Mayor Ken Sim recently announced that he is directing staff to stop spending money that doesn’t need to be spent — a decisive response to an initial staff recommendation for a seven per cent increase.

It takes courage to stand up for what’s right, and Sim has been clear that “zero means zero.” This kind of leadership should be inspirational for mayors across the province. On behalf of Greater Victoria’s business community — and everyone concerned about ballooning government spending — The Chamber is calling on all 13 municipalities in our region to follow Vancouver’s lead.

Of course, we recognize this is a significant ask. But we also know there are many capable people working in local government, and many elected officials who understand that the heady days of unchallenged spending during the pandemic are over. Now is the time to show fiscal discipline and a renewed commitment to economic resilience.

As local governments across B.C. begin their budget processes this fall, they have an opportunity to demonstrate that they truly support local economic growth. That support starts with restraint.

The past five years have buffeted society with wave after wave of challenges. Ongoing disruptions to Canada’s trading relationship with the U.S. continue to cause economic uncertainty. But these broader issues make it even more important for municipalities to stay focused on their core responsibilities. Local governments don’t help anyone by spending beyond their means.

Property taxes are not paid by property owners alone. Any increase ultimately leads to higher rents and higher costs for the goods and services businesses provide. That’s a burden every resident feels.

From personal experience, I can tell you that people in the private sector understand a hard truth: raising prices to pay for things that are “nice to have” rather than “must have” is not sustainable. Local governments need to apply the same discipline. We count on local government to fund policing and bylaw officers needed to keep all of us safe at home, at work and everywhere in between. We also need infrastructure for thinks like water, transportation and waste removal. But do we really need the many quality of life projects? Things like interpretive signage or cultural programs are great, but they really need a hard look if they’re taking money away from what people need for housing, food and work.

This fall, we urge all mayors, councillors and municipal staff to take a hard look at their budgets and separate needs from wants. Doing so can help return municipalities to surplus positions, creating the flexibility to expand services and programs responsibly in the future.

The Chamber is ready to meet with any council in Greater Victoria that wants to discuss how to better support business. After all, we’ve been the unapologetic voice of business since 1863 and have witnessed more than our share of economic ups and downs.

In short, here’s what members of the Greater Victoria Chamber of Commerce want municipal councils to hear: stop spending money on things that are not critical to the core requirements of running a municipality. We simply can’t afford it.

John Wilson is CEO of the Greater Victoria Chamber of Commerce

 

This column originally appeared on Oct. 28 in the Business Examiner.