One of the few women in the election race says the Greater Sudbury is at a crossroads and needs to "invest in itself" if the economy is going to grow.
Elizabeth De Luisa is seeking the council seat in Ward 11.
She says the way the city is spending money is both unsustainable in the long run and will do little to grow the city or its economy. With population-growth projections remaining low, and transfer payments and grants from upper levels of government shrinking while city budgets grow, Greater Sudbury needs to find a better way of funding its needs and spurring growth.
"Although we are still receiving transfer payments and grants, the amounts have been declining. Our infrastructure is aging and in need of upgrading. Water, wastewater, fleet, public transit, roads, sidewalks — all are necessary and will come at a big price tag," De Luisa said. "The large projects will require the municipality to borrow and pay interest on the loans. There is still anger over amalgamation. Operating budgets have been growing.
"The result of declining transfer payments and grants coupled with spending that outstrips the rate of inflation is increased property taxes and a higher cost of doing business. The belief that future spending will not affect our taxes is, unfortunately, wishful thinking. The money always has to come from somewhere."
The direction for how to deal with these issues must come from city council, De Luisa said, which is supposed to be guiding the ship. A key component is how we spend the tax dollars we have and what we should be investing in, she said.
"The manner in which we are spending, and plan to spend, is unsustainable. Due diligence is needed. More and more people have expressed this concern and are questioning where the current path will lead us and what it means for our future," De Luisa said.
"Sudbury has to find its own growth strategy and it strategically invest in itself before it can begin marketing the region as a place to invest and a place to live. Questioning decisions that have been made and how budgets are spent is not being anti-development — it is a right in a democratic system and the responsibility of all who represent you."
Below is the full text of De Luisa's news release.
Sudbury finds itself in a difficult situation. It needs to invest in itself in order to progress but its economy and population are not growing.
Population projections by the Ministry of Finance and Conference Board forecast negligible growth (approx. 1-2 per cent) to 2041. At the low end, one per cent will increase our population from 161,500 to 163,000 in the next 15 years, or 107 people per year.
A two per cent increase brings the population up to 164,700 with 215 addition people per year to 2014. Respectively, this translates into about 47 to 94 new households per year. In my experience as a market and housing analyst, I would call this a stagnant not a growth scenario.
Over this same period, the Ministry of Finance has forecasted a decline in the number of children and a ballooning share of seniors to 35 per cent of the population. The aging of our city within a stagnant growth scenario is a reality that will affect us deeply.
Aging households are not big spenders…they don’t drive the economy.
Economies grow when economic growth attracts new people who purchase houses and services and stuff for their children. This, unfortunately, is not our future, as currently projected.
Compounding the severity of this possible outcome is the municipality’s rate of spending.
Over the past four years, municipal spending has outpaced the rate of inflation. To keep it simple, let’s round inflation at six per cent; the municipal budget increased by about 12 per cent and property taxes increased by 12.5 per cent. Spending is double the rate of inflation.
Municipalities, including Sudbury, are reliant on transfer payments and grants from the provincial and federal governments to boost their budgets in order to provide services. This lending/borrowing relationship is guided by the following principles:
1. Stewardship: Public resources produce best value where expected outcomes are clearly defined, and programs and organizations are focused on enabling and achieving those outcomes.
2. Reciprocal respect: A transfer payment is the result of a partnership based on reciprocal respect.
3. Accountability: Parties to a transfer payment agreement must be accountable for addressing expected outcomes. Good administration supports accountability by providing transparency and capacity to deliver. (Province of Ontario)
Although we are still receiving transfer payments and grants, the amounts have been declining. Our infrastructure is aging and in need of upgrading. Water, wastewater, fleet, public transit, roads, sidewalks -- all are necessary and will come at a big price tag. The large projects will require the municipality to borrow and pay interest on the loans. There is still anger over amalgamation. Operating budgets have been growing.
The result of declining transfer payments and grants coupled with spending that outstrips the rate of inflation is increased property taxes and a higher cost of doing business. The belief that future spending will not affect our taxes is, unfortunately, wishful thinking. The money always has to come from somewhere.
Council’s role is to set vision and policy, and represent respective wards and the municipality as a whole. It is elected to invest and grow strategically, keep the house in order, and ensure we live within our means.
The manner in which we are spending, and plan to spend, is unsustainable. Due diligence is needed. More and more people have expressed this concern and are questioning where the current path will lead us and what it means for our future.
Sudbury has to find its own growth strategy and it strategically invest in itself before it can begin marketing the region as a place to invest and a place to live.
Questioning decisions that have been made and how budgets are spent is not being anti-development -- is a right in a democratic system and the responsibility of all who represent you.
Lincoln made famous the statement that “a house divided against itself cannot stand.”
You should expect a council that stands in unison to protect what we have and grow it strategically.
