• Taxpayers Group Warns of Thawing Tax Freeze & Wasteful Spending

OTTAWA: On Monday, November 13th, Ottawa voters will elect a new city government. The Canadian Taxpayers Federation (CTF) has issued a set of taxpayer benchmarks for candidates. The mayoralty race is particularly close and taxpayers should scrutinize the various platforms and commitments. "This is an important election for Ottawa's taxpayers, particularly in light of the property tax burden and planned light rail," said CTF Research Director Adam Taylor.

City Spending 101:

• Between 2000 and 2005, the City of Ottawa's spending increased $410-million or 24 per cent. This is more than double the rate of inflation.
  
• Over the same period, the average salary of a city employee increased from $52,976 to $76,095, a whopping 44 per cent.
  
• In one year (between 2004 and 2005) the City of Ottawa saw its consulting and professional services costs jump 20 per cent, from $62-million in 2004 to $74-million in 2005.
  
• On average, the City of Ottawa's per capita spending exceeds the provincial average of per capita municipal spending by 25 per cent.

Taxpayer question to candidates: Are you willing to implement alternative service delivery, and public/private partnerships to deliver big savings and better programs in areas such as parks and recreations, public utilities, social housing and the implementation of a public transit authority

"The City of Ottawa has to get spending under control. Failure to address wasteful spending will ensure taxpayers continue to pay more and see no corresponding improvement in services. Taxpayers deserve better, not more taxes," said Mr. Taylor.

Property Taxes 101:

• Assessment growth does not mean taxes go up automatically. By lowering the mill rate by the amount equal to or greater than the average increase, taxes can be frozen or reduced.
  
• In response to the Ontario Ombudsman's recent report, the Municipal Property Assessment Corporation's (MPAC) assessment will be frozen in 2007 and 2008.
  
• Taxpayers Beware! Candidates who state they will keep taxes in-line with inflation are ensuring that property tax bills will increase by 9-to-12 per cent over the next four years.
  
• As for candidates promising a tax freeze, taxpayers must ensure zero means zero: With assessments frozen the next two years, keeping the mill rate at the '06 levels for 2007 and 2008 tax years will ensure a tax freeze. After that, the mill rate must be reduced by an amount equivalent to the average increase in assessed values.
  
• Between 2001 and 2006, Ottawa's residential mill rate fell by 40 per cent while assessed residential values rose by 48 per cent. The so-called "tax freeze" between 2001 and 2006 actually passed on an 8 per cent property tax increase.

"It will not be difficult for the next council to enact a property tax freeze. An inflationary increase on top of past tax hikes will only mean more money flowing to City Hall," said Mr. Taylor. "And the more tax money they have, the more they spend."

Accountability 101:

• For months, Ottawa's current mayor has stated that the light rail deal had to be signed by October to avoid millions of dollars in penalties. Federal officials who only got to see the contract recently, have discovered the deadline is actually mid-December
  
• Ottawa's current city council approved this deal believing failure to do so would mean millions of dollars in penalties.
  
• The full costs of this project are still unknown. First it was said to cost $600-million. Next it was going to cost $725-million. Recently, costs have been pegged at over $900-million. It will not be long before this project exceeds $1-billion making it the largest capital project in Ottawa's history.
  
• The next city government must vote in this project so that they are held responsible for cost overruns.

Taxpayer question for candidates: Will you ensure transparency and accountability are upfront in any future decisions on light rail and make certain that the new council and taxpayers receive all relevant details and information before this project proceeds

"The fact that the last city council approved the current light rail plan without seeing the contract raises serious questions concerning accountability at City Hall. This project has been cloaked in secrecy and taxpayers deserve to see and hear all the facts, before any decisions are made," concluded Taylor.

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