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January 14, 2004
THE RED HILL CREEK EXPRESSWAY AND THE 2004 CITY OF HAMILTON BUDGET

The 2004 draft budget baldly admits that spending on the Red Hill Creek Expressway is creating major financial difficulties for the City of Hamilton. The opening paragraph of the report on this year’s capital budget declares: “The City’s tax supported capital budget is at a sustainability crossroad. That is to say, due to two major City capital initiatives, which are now past the planning stage and into major funding commitments and implementation (Red Hill Valley and Solid Waste Management Master Plan), the rising debt load is starting to constrict available capital dollars for other City projects. How to deal with this most important capital issue will be the focus of this year’s capital report.”

Red Hill spending in 2004 is set at $32.9 million – just under one-quarter of the entire capital budget of $141 million. However, the $141 million is only the “affordable” portion of the budget. An additional $105 million in capital spending is required but can’t be paid for. As a result, 235 projects have been designated this year as “unaffordable”.

The budget report consequently refers to a “dramatic 50% decrease in capital funding for regular programs (roads, facilities,…e.t.c.) which would take effect in 2004 due to increased debt attributable to the Red Hill Valley Project and the SWMMP.” It also warns that “the amount of debt to be issued in the next few years (RHVP & SWMMP) and the inadequate redirection of tax levy dollars to the overall capital program is going to constrain the City’s ability to deal with all of its infrastructure needs.”

In response to this crisis, the City wants the provincial government to increase its subsidy for the expressway “to reflect the fact that Hamilton is building a new road that, once linked with the east/west expressway, will act as a major highway of provincial significance and benefit”. More specifically, the budget report recommends that the City “pursue a new deal on the East/West & North/South Expressway that more closely reflects the traditional cost-sharing split of 75% / 25% for Province/City contributions”.

“Traditional” in this sentence refers to 1974! The current provincial funding subsidy was agreed to by Hamilton eight years ago in 1996. The following year the province ended all its other subsidies of local roads. Expecting Queen’s Park to reverse this policy is quite a leap of faith, and the budget authors apparently realize this, because they suggest an alternative way to deal with the crisis – the transfer of $60 million from the Hamilton Future Fund into the capital budget.

The Future fund (perhaps about to renamed the “Now” fund) appeared in 2001 when the City sold Hamilton Hydro to itself for $137 million. More precisely, the City converted Hydro to a wholly-owned subsidiary which then mortgaged its assets to borrow the $137 million. The debt does not appear on the City’s books, only on the books of its subsidiary. As a result, Hamilton Hydro’s customers are now paying for the assets a second time, as part of their electricity bill. In the meantime, the City spent $37 million of this “windfall” and then solemnly promised it would keep the remaining $100 million as an endowment and only use the interest — for community projects. Last year, the interest was used, “just once”, to reduce the tax hike.

To justify now plundering the “Future” fund, the budget document rhetorically asks: “Would the senior-levels of government grant the City capital subsidies when the City is sitting on a $100 million uncommitted capital reserve?” If this is true, it suggests our leaders were idiots to put us another $137 million in debt with this scheme in the first place.

Using $60 million of the hydro monies will still leave 139 projects “unaffordable” in 2004, and at best will only postpone the crisis caused by the expressway spending. Next year, the expressway budget demands $33.7 million more, and in 2006 it will eat up another $35 million.

The opening of the road is scheduled for 2007, and City finance staff are already nervous about that. In open defiance of a decision made last June by Larry DiIanni and his expressway implementation committee, the staff are demanding that the expressway be tolled. “For the Red Hill Valley Project, options for tolling the Lincoln Alexander Parkway and/or the Red Hill Creek Expressway are being examined by staff with the view that at a minimum, the annual repair and maintenance costs (including a replacement reserve provision) be covered by tolling revenues with consideration to minimum traffic diversion rates.”

Of course it may not be defiance. It may simply be that staff understand that Mr. DiIanni’s bluster about tolls being unacceptable was just part of his election strategy. Promises like this are easy to make when there is no highway to toll, and apparently are just as easy to break after it’s built and municipal finances on their knees.



SOME CHARGES AGAINST VALLEY DEFENDERS DROPPED
By John Milton (from Hamilton Indymedia – January 14, 2004)

Charges against protestors, and "protectors of the valley" arrested at the "Long house" site in the Red Hill Valley in Hamilton on November 6, 2003 were dropped today, several weeks before they were due to be heard in court.

14 people were arrested and charged with trespassing on that day as they attempted to prevent the construction of the Red Hill Creek Expressway. Reports of that days events are available in the IMC Hamilton features section (Story title: VALLEY FIGHT NOT OVER: Massive police raid on Longhouse, Valley)

The reason given by the authorities for dropping the charges was that technical errors had been made by the police on the paperwork completed at the time of the arrests which would have made conviction of those arrested uncertain.

While this may be true it has been speculated by members of the protest group that the real reason may be that the authorities had no desire to give the group another forum for publicly outing the issues surrounding the Expressway project.

It is not uncommon for the government to drop charges laid against non-violent protestors and other civil rights activists in cases of this sort just prior to trial when it becomes clear that those charged intend to go forward with political trials and vigorously defend themselves in court. The announcement that the charges were being dropped came just after those charged had begun to apply to the court for "disclosure", the provision of the evidence and police documents that they would use in the preparation of their defense.

Trespass charges remain outstanding against another group of a dozen people who were arrested at the south end of the valley during the last week of October, 2003 All of those persons have pled not guilty and trial dates for them have been set for the second half of March, 2004. More news on these trials to follow...


HAMILTON TRANSIT GROUP FOUNDED

A Hamilton Transit Users Group has been established to advocate for HSR and DARTS users and improvements in transit. The group meets in Room 110 of Hamilton City Hall every second Tuesday. The next meeting is January 27 at 7 pm. The draft City budget is already proposing another 5 cent fare increase, and further hikes plus service cuts may be put forward by City staff or councillors during the budget discussions. You can get involved in the group by calling (905) 308-9138 or emailing transit@environmenthamilton.org


VALLEY WALK

Red Hill Schoolhouse is holding a “Winter Moon Magic” walk in Red Hill Valley on Saturday, February 7. Meet at Rosedale Arena at 8 pm

NEIGHBOURHOOD VALLEY RALLIES

Red Hill Schoolhouse is holding a Neighbourhood Valley Rally in Ward 5 on Tuesday, February 10 at the corner of Mt. Albion Road and Greenhill Avenue between 4 pm and 5:30 pm. Everyone is welcome. A ward 2 rally is scheduled for Tuesday, March 9 at the Gore Park Fountain, also between 4 and 5:30 pm.

Other Events: visit www.actlocally.info


THE HIGHWAY THAT BECAME A FOOTPATH
(after the civic election)
by John Terpstra

"And I saw a new heaven and a new earth,

for the first heaven and the first earth had passed away,

and I saw the holy city, coming down out of heaven..."

and the raving holy protester who had climbed into a tree

to resist the building of the last highway

was still in among the leaves,

but the tree had grown much taller,

and the protester had been living up there for such a long time,

not alone, that several generations of protesters now populated the canopy,

freely trafficking the branches of their swaying neighbourhoods,

as the six-lane highway,

(which ultimately was built)

wound between the trunks below

as wide only as a footpath,

a red dirt earthway, busy with pedestrians,

and the highway-that-became-a-footpath

led past the longhouse raised

during the same resistance, down in the valley,

for it still existed (both longhouse and valley existed still)

and other longhouses,

which were standing at that location several centuries earlier,

had re-materialized, their hearth-fires

burning still; an entire village, thriving

beside the hallowed creek that ran through the east end of the city.

And I saw the trees that formed the longhouse walls

take root, and continue to grow,

forty thousand times forty thousand,

their canopy providing all the roof

that the people needed.

And from a privileged perch at the top of the escarpment,

watching as the new city come down out of heaven,

it was clear that the leaves of those trees

were for the healing of the community.”


© Friends of Red Hill Valley 1991-2005

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