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They might have turned out in force, but when it came time to speak up at Tuesday’s council meeting, Jasper’s business heavyweights could only manage a whimper.
There are certain virtues that Canadians in general, and Jasperites in specific terms, tend to place a high value on, and one is politeness. The soft touch of Scott Eady and the gentle approach of John Bartziokas ensured that no tempers flared and no feelings were hurt when the Tourism and Commerce group came face to face with municipal councillors. But there is another virtue that ought to be as prized as an ability to smooth the waters and avoid conflict — plainspokeness.
It’s clear that many in the business community are concerned about the burden they are being asked to bear in order for the Municipality of Jasper to maintain the services it provides for residents and visitors alike. Our first concern with the approach taken by the group that spoke to council this week has to do with the timing of their reaction. Rather than presenting their position during a time when the capital budget or tax rates were being debated by council (that’s months ago, if you’re counting) this group approached boiling point only when assessment notices and tax bills started arriving in the mail. That’s human nature, one supposes, but it’s also disappointing, because it means that very little will be done in the immediate future, and the issue has every chance of being forgotten and the effort abandoned before the first snows of winter.
Our second problem came with the fundamentally short-sighted “solution” proposed by the group. They requested that council hold off on “non-essential expenditures” until the tourism market can recover from its long recession. Short on specifics when directly queried by Councillor Brian Nesbitt, the group had actually established a short list of areas where they felt spending could be frozen, but didn’t take the opportunity to share these with council. Why not?
Whether they spoke in vague generalities about “priorities” or presented an itemized list, those speaking on behalf of the group didn’t bother addressing the significant matter of the 6.5:1 tax split between commercial and residential properties. That fell to industry veteran Gus Vlahos.
“Let’s be fair with commercial and residential taxes,” he said. “It’s not to go after residential properties, but let’s be fair, and right now, something is not right there.”
We agree. Simply avoiding “unnecessary” spending and trying to freeze taxes until the market can recover may provide some much needed temporary relief, but what happens when spending needs start piling up, or if the market takes years or decades to return to rude health? Councillors are doing their best to secure other sources of revenue, but that’s a long, ardous and uncertain road.
Some of the proposals seem quite promising. Councillor Mike Day said that a two per cent sales tax on transactions in Jasper would eliminate altogether the need for property taxation. The only wrinkle is trying to get the notoriously tax-averse provincial government to agree. Another major factor that would help matters is the long-promised cutback in the education tax, providing municipalities across the province with more room to manuever without having to jack rates sky high. To say that these measures are in the offing or simple pipe dreams is just speculation, but one thing is clear. Failing some external solution, it is likely necessary to look at the comparative tax burdens of the commercial and residential sectors. That burden has been shifted once before, from 7.5:1 to 6.5:1, in 2004. Jasper still stands out in a comparison of Albertan communities however, with Banff’s 5 to 1 split the only one that comes close.
What does this disparity mean in terms of actual costs? According to the Tax Facts 2006 prepared by the municipality, the in-town commercial properties provide 64 per cent of the municipal portion of total tax revenues. The residental sector? Only 18 per cent. It’s certainly conceivable that something should be done about this, and sooner rather than later.
To his great credit, Mayor Richard Ireland hardly made it sound like Vlahos had slaughtered a sacred cow in the upstairs boardroom of the Emergency Services Building when the topic was broached.
“If it has to be readdressed, it has to be readdressed,” he said.
Where and when will this discussion take place? Presumably, at a meeting of the soon to be formed chamber-council committee on finance issues. Who will be doing the debating? Business owners in Jasper should cross their fingers and hope it’s someone who values plain speech above obfuscation. Otherwise, there will be little chance of changing the status quo, whether or not it ought to be. |