Note
that the expressway eats up 57% of this
"investment", but the City
continues to refuse to conduct a cost-benefit
analysis of the project, or to present
any evidence that its construction will
actually improve anybody’s economy
but a handful of rich developers and
land speculators on the east mountain.
All
of this indicates that the "financial
crisis" facing the City is being
created to a large extent by new spending.
While services to people are being cut,
and user fees and home taxes steeply
increased, vast amounts are being spent
to benefit a handful of powerful businesses
and individuals in the name of "economic
development". Indeed, this is stated
clearly: "The City’s current
strategy assumes that funding major
growth projects such as the Red Hill
Valley Project, which are a contributing
factor to increasing debt load, should
however increase future tax revenues
by achieving assessment growth."
While
immense amounts are gambled on such
schemes, existing infrastructure continues
to deteriorate. The budget document
candidly notes that "The 2003-2012
capital program has a growing gap between
the requirements of the existing infrastructure
and the allocation of funds for the
same. In the prioritization of projects,
staff have had to balance the requirements
of maintenance, rehabilitation and replacement
of existing infrastructure with capital
projects which maximize the City’s
future economic growth potential."
"Therefore capital funds have to
compete … with growth projects
such as the Red Hill Valley project."
The
document also admits that "insufficient
funding is being provided for facility
maintenance, rehabilitation and renewal"
and that "capital funding levels
are far below infrastructure needs in
the area of roads, storm sewers and
waste management". Indeed, $61.3
million in projects have been deemed
"unaffordable" and the document
notes that an additional $47.2 million
should be being spent EACH YEAR to maintain
existing infrastructure. This includes
$19 million for existing roads, almost
exactly the amount allocated this year
for the expressway.
There
is also an admission that the situation
is going to get worse. "For 2004,
budget pressures are expected to be
about $42 million which would result
in a tax impact of about 14%. For 2005,
budget pressures are expected to be
about $33 million which would result
in a tax impact of about 11%."
In this regard, one of the tables shows
planned capital spending over the next
three years. Fully 31% is allocated
for the Red Hill Creek Expressway.
There’s
one very clear message in this budget.
Massive changes are being imposed on
Hamilton that will make life worse for
the vast majority of residents, especially
those who already have their backs to
the wall. Social, recreational, transit,
public health and other programs slowly
built up over decades to improve our
quality of life are now being systematically
and rapidly dismantled in the name of
economic development. The expressway
is only one part, albeit a very large
one, of an approach that uses our taxes
to enrich a small handful at the expense
of everyone else. The response must
be to take our government back. We get
our next chance in November.
......
Budget
documents, including the one summarized
above, are supposed to have already
appeared on the City's website (they
haven't at this point) at http://www.city.hamilton.on.ca/CityDepartments/
Fin&CorpServ/finance/default.htm
Other
budget documents as well as information
on how to register to speak to council
and the times of two ward budget meetings
are at http://www.city.hamilton.on.ca/CityDepartments/Fin&CorpServ/
finance/2003Budget.htm#publicinformationsessions
