Cash flow woes impacting Guelph

(September 22) - It seems I am not the only person who thinks taxes have fallen too low. Last week, thousands of people in Toronto had a chance to vote against higher taxes but didn’t bother. Only about a third of the people who could vote in a provincial byelection bothered to do so. Of those, almost half chose to support the party that will bring us the Higher Sales Tax (HST).

Governments everywhere are starving for revenue. At the federal and provincial levels, they have no one to blame but themselves. Politicians have campaigned for several decades on promises to reduce taxes, their main source of revenue. They have always relied on the false wisdom that smaller government sets the entrepreneurial spirit free. Business will prosper and we’ll all be glad of it.

The exact opposite turned out to be the case. Smaller government brought us lower taxes. It also brought us globalization and deregulation. These latter two wonders brought a recession. The recession increased the need for government services. The need couldn’t be met because revenues are not there. We are trapped inside a vicious circle and there aren’t many ways out.

Guelph city council is grappling with the effects of the cash shortfall. The city bank account is about $2.7 million less than where it should be. This is the result of some catch-22 situations.

One is lower interest rates. Great if you are renewing your mortgage, but not so good if you need investment income.

Revenue from fines is also down. Some scofflaws are choosing to save money by not paying them. There’s another ironic thing about this. While the downtown urinals save the city from cleaning up unpleasant messes, they also eliminate lucrative fines. Every time one is used, a $240 ticket is flushed down the drain.

Another component of the cash flow problem related to the recession is an increased load on county social services. This could cost the city about $467,000. Where will the money come from?

The city is looking at some traditional solutions, such as renegotiating with suppliers or not filling staff vacancies.

What is not under consideration is taking another look at the free parking meters downtown. Giving away two free hours at every on-street parking spot was estimated, in 2007 when it started, to cost the city $685,000 a year. It could be a lot more than that. Every car that leaves a meter within the two-hour limit is replaced by another one that also parks free.

Before the city cuts any staff to recoup its $2.7-million shortage, it should report exactly how much money has not been fed into the parking meters.

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The police used one of their Tasers a week ago while taking a man into custody. That should concern us all by itself, but there is one thing even more troubling.

It is the remarks by Police Chief Rob Davis, as quoted in last Friday’s Mercury: “This case was a perfect example of what the Taser was designed for, Davis said, adding the weapon was used to immediately immobilize the man without discharging a firearm.”

They were arresting a man “under the Mental Health Act” in the hall of an apartment building. The high-volt jolt didn’t immobilize him. The police had to shout at him that if he didn’t stop moving they’d do it again.

Then our chief of police tells us that if they hadn’t had a Taser with them, they would have shot him? What a foolish thing to say.

The police clearly need fewer Tasers and more training.