Mayor defends Jasper’s spending habits Print
JACK DANYLCHUK - FITZHUGH STAFF WRITER   
June 26, 2008


“Your comparisons and conclusions are as meaningless as they are careless.”

The Canadian Federation of Independent Business is backing away from a battle of words with Jasper Mayor Richard Ireland over town council’s spending habits.

“He’s right,” Danielle Smith, director of  provincial affairs for the federation’s Alberta office, said last week after Ireland blasted the CFIB for an analysis that he described as “careless and meaningless.”

According to a report the federation released June 10, Jasper’s “population and inflation increased 17.6 per cent, while operating spending increased 178.8 per cent” between 2000 and 2006.

In the federation’s view, that was wildly in excess of what it calls the “fiscal responsibility gap.”

A gap of one would mean that spending growth was less than growth of inflation and population; a gap of two means spending grew twice as fast as population and inflation, according to the federation.

The provincial average is 1.65, Jasper’s fiscal responsibility was calculated at 10.16.

“To put this figure in context, Jasper spent $4,699,056 more in 2006 than it would have had it limited increases to population and inflation growth since 2000,” the federation said.

Moreover, the report charged, Jasper spent $1,750 per person, compared to the provincial average of $1,634.

Ireland wasted no time in demolishing the CFIB findings. On June 16, he wrote that the “responsibility gap” actually highlighted “an information gap” and said their analysis was “fundamentally flawed.”

First of all, he said, Jasper did not take over municipal functions until 2002, and since then has assumed responsibility for services formerly provided and paid for from the  Parks Canada budget.

“It is not at all surprising that the operational costs of the new municipality are dramatically different than the old improvement district,” Ireland wrote.

“The difference is not evidence of a responsibility gap; it is simply evidence of a transfer of service responsibilities,” he said.

“Your comparisons and conclusions are as meaningless as they are careless.”

Ireland said there could be no direct comparison of per capita costs in a large city and a small isolated community with a population that expands during the peak tourist season from 4,600 to 25,000. He also pointed out that the town pays $350,000 annually to Parks Canada simply for being in a national park.

Smith was apologetic and explained: “It’s our first report. We knew there would be unique situations. This will be an annual report and we’ll take that into account.”

With the new information in hand, Smith said that Jasper falls between Canmore and Banff when it comes to spending.

“Banff spent when it first became a municipality to catch up with infrastructure. Its per capita spending is declining. It will be interesting to see where Jasper goes on this,” she said.

 
 

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