News   Jun 21, 2024
 87     0 
News   Jun 21, 2024
 268     0 
News   Jun 21, 2024
 409     0 

Ottawa Mayor: Sell utility to pay for 1-year tax freeze

unimaginative2

Senior Member
Member Bio
Joined
Apr 23, 2007
Messages
4,554
Reaction score
10
Location
New York
A business-like approach that involves selling off massive chunks of your business to bribe your customers. Just when you thought it was bad on this side of the province.

Some of his other ideas might have a little bit of merit.




Privatization key to tax freeze, says mayor
By Roman Zakaluzny, Ottawa Business Journal Staff
Wed, Nov 7, 2007 11:00 AM EST

Mayor Larry O'Brien speaks at Wednesday's breakfast at city hall. (Darren Brown, OBJ)

Ottawa Mayor Larry O'Brien will look at selling Ottawa Hydro as one way of meeting his target of a zero tax increase this year.

Speaking at the OBJ Mayor's Breakfast Series Wednesday morning at city hall, the mayor said the "transformation process" he began six months ago is still ongoing.

While vague on many of the specifics, the mayor nevertheless said reaching a zero-per-cent budget increase was doable, despite claims from senior staff, councillors and experts that two straight years of tax freezes was nearly impossible.

The mayor's answer to the claims? The same criticisms were levelled at him last year, and yet he achieved it regardless. "Despite doomsday predictions that it was impossible, my colleagues on council came together to deliver the first 'zero means zero' budget," he said.

Mr. O'Brien said he would continue a "business-like approach" to governing Ottawa.

"If business can recognize a 20 to 30 per cent return on investment and productivity increases through the use of technology, then so can municipal government," he said.

Some of the proposals in the mayor's speech included:

# a plan to privatize Ottawa's parking meter operations, which costs some $5 million annually. He said Hamilton saved $3 million a year by privatizing its meters.

# directing staff to identify any and all "outside delivery opportunities" in addition to privatizing parking meters. He speculated the move could save $42 million this year.

# combining hydro, water and wastewater charges on one municipal bill. Sudbury, the mayor said, saved $250,000 annually by trying that, and Ottawa could save about $1 million.

# the creation of another mayor's taskforce, this one on "e-government and smart management," which he said would "harness" resources from Ottawa's high tech community to allow the city to adapt a "Business 2.0 model."

"If Canadians are expected to do $16 billion in retail sales online by 2009, then why do we have to drive to city hall for many services?" he asked.

"If business can collaborate on documents simultaneously around the globe, why do we insist on multiple hard copies of documents for every city submission?"

He admitted that these proposed privatizations and savings on photocopying costs won't come anywhere close to the $90 million in savings needed. However, Mr. O'Brien also didn't announce any service cuts.

"There is no one magic bullet, (but) hundreds of small ones," he said.

Or isn't there? The mayor said it will take some $188 million in annual savings to deliver zero budgets for the next three years. At the same time, speculation is mounting on a move to sell Hydro Ottawa, which could fetch some $300 million in one lump sum on the open market.

The mayor did not discount that option.

"Do we have to own a hydro company to assure dependable delivery of electricity in Ottawa?" he asked, without elaborating, saying that debate was being saved for council.

The mayor, perhaps acknowledging that reaching zero would be difficult, or that there might be costs upfront in implementing his proposals, said money isn't the answer to everything.

"If all decisions were just about money, many of us wouldn't have flat-screen TVs in our living room," he said.

Shortly after he was done speaking, some councillors and officials lined up to criticize the mayor's plans.

"I don't see how he can deliver his plans on privatization," said Clarence Dungey, media officer for CUPE Local 503, which represents many of the city's municipal workers.

"I think he's naïve if he thinks he can overcome the collective agreements in place."

Gloucester-Southgate Coun. Diane Deans said some of the ideas sounded workable to her, like the plan to privatize parking meters. However, she doesn't see it getting anywhere close to the $90 million or so needed to get to a zero per cent budget, especially since Mr. O'Brien gave so few details in his speech.

"We used our reserves last year to get him to zero," said Ms. Deans. "There's no (other) details (in the speech)."
 
And when the services are sold off to private interests and become more expensive, it's not considered a tax increase.
 
Any mayor promising zero tax increases that hasn't found oil under city hall needs to be quickly put in a padded white room. How can Ottawa's costs have gone up zero? Selling assets to pay for operational costs serves only to convince a dumb electorate to re-elect but then in the next term you are really screwed because there is no more assets to sell, operational costs are up again, and you have nobody to blame.
 
Apparently Larry O'Brien, godsend from the private sector, actually has no plan of how to keep taxes at zero in terms of an increase.

No, Larry now says that it was up to city bureaucrats to develop the zero tax increase plan (you know, the plan upon which Larry was elected).



Larry should have phoned Dave in TO for some insight on the dark and stormy world of municipal taxes. He clearly hasn't read his briefing notes.
 
But his "Free Ice Cream Fridays" promise still stands, right? Or his 7-day a week garbage collection?

People are wise enough to see those as ridiculous promises... but they can't see a zero-increase in government revenue promise being as such?
 
Because promises on taxes induce a pixy-dust high with many voters - particularly outer-suburban Ottawa voters.
 
Is this the guy the Tories consipired to help get into office? I think John "Uncle Tom" Baird was involved in the scheme...
 
^Yes, and that brew is still stewing. One wonders if any bags of money were exchanged in the process.
 
But his "Free Ice Cream Fridays" promise still stands, right? Or his 7-day a week garbage collection?

He actually promised 7-day a week garbage collection? Did O'Brien have delusions, or did he get the idea from Homer Simpson?

O'Brien is quite likely one of Ontario's worst mayors. First he throws good money down the drain with the Ottawa LRT debacle (placating some delusional "transit advocates") and now this. But if it plays in Kanata....
 
Yes, but the polite (in) crowd never really likes calling it that (either in German or in English).


Lesson for Larry: never try to bribe stupid people (Kilrea); because they inevitably complain about it.
 

Back
Top