All over North America jurisdictions are facing what has
been termed as Structural Deficits. Simply put, the revenue generated by fees
and taxation is insufficient to maintain and replace/upgrade the infrastructure
built during the unrelenting growth of the past several decades. The concept of
Infrastructure deficit is more easily understood in everyday terms.
Suppose that you bought a home 25 years ago. It came with a tile
roof that you were assured would last one hundred years. The home was seventy
five years old when you moved in. The years pass and the roof did prove
reliable. Two years ago during the rainstorm to your dismay you realize your
roof is leaking and you need to replace it. The prudent and wise individual
would have put a little aside each year for the inevitable expense of a new roof.
If you of are like most of us there would be have nothing put aside and so you would
be at the mercy of whatever financial arrangements that can be negotiated. In
spite of your lack of foresight you still feel a little hard done by. You call
the roofer and you are in for a shock at this size of your personal deficit.
The estimate for replacing your old roof with a new tile
roof is over$ 70,000.00. Thoughts of having to take out new mortgage come to
mind. Your hand is shaking as your hold the estimate. Surely there must be some
other way? Your tradesman senses your dismay and offers you an alternative that
in his judgement will be more palatable. Your roof could be replaced with an asphalt
shingle roof at $7000. You almost hug the man. You feel delivered and you agree to the
asphalt roof. Your new roof will protect your home from the weather but does
not have the same durability as the old tile roof and will need to be replaced
more often. Still you are compelled to feel comfortable with your decision
mainly because of your financial constraints. Council is facing a problem
similar you face with the new roof.
Our elected officials see a vast number of physical infrastructures
(streets, sidewalks, streetlights, buildings etc.) that will need ongoing maintenance
and eventually outright replacement. Fortunately the bill does not come all at
once like your fictional roof. Nevertheless with some estimates placing the
deficit at over $120,000,000 one can understand the need for concern. Vernon
certainly needs to work under some financial constraints. Council’s approach as
I understand it aims to reduce the deficit in two ways.
Firstly to allow for a regular annual tax increase allotted
only to infrastructure. The increases will eventually allow $6,000,000 annually
put towards the deficit thus in effect paying it down. Were this policy to continue the City would
approach adequate funding for infrastructure but not quite. This, if I
understand correctly leads to the second approach.
Remember the
story about the roof. Council has asked staff to come up with less expensive alternatives
that could serve well the needs of the citizens of Vernon. Less costly
alternatives in replacement and maintenance infrastructure also reduce the
deficit. So we see that council is working both on the funding side of maintaining
our city as well as the demand side of the equation.
I think that is wise and prudent approach that council is taking with
a difficult problem but it not without consequence. Let us return to your
fictional new roof. It is a roof but it is not a tile roof. If the original
tile roof was one the features you loved about your home of 25 years the change
to asphalt shingles will be sad. Your home may lose some charm. As for Vernon
we may lose some of our sidewalks.
Cheers! Shawn Lee a Vernon Taxpayer
2 comments:
Years of poor planning by so many governments is now an emergency for the public.
Good comment. Cheers Shawn
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