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Ottawa should tackle part of its $41-million operating deficit by charging hospitals and universities more for city services, Coun. Michael Qaqish argues.
The Gloucester-South Nepean representative is calling for a steep increase to the so-called “heads and beds” levy, which applies to colleges and universities, hospitals and jails. All such institutions are currently exempt from paying property taxes. Instead, provincial law allows for a per-head or per-bed payment to municipalities.
The amount of the current levy — which has remained unchanged since 1987 — is set at a maximum of $75 per full-time student, hospital bed or resident in a correctional facility.
An increase is necessary to properly reflect the city services these institutions have and continue to benefit from, Qaqish says, adding it couldn’t come sooner, as the city is facing a $41-million deficit this year.
“It will make a big difference for us at budget time,” he said Tuesday.
By his math, an increase to the levy tied to inflation since 1987 would see the amount rise by 84 per cent to $138.37 per head and bed.
In real dollars, that would have meant $11.7 million this year, as opposed to the $6.4 million the city actually collected.
“Municipalities are missing out on a good chunk of money,” Qaqish said.
The heads and beds issue is not a new one. It has been raised by a number of municipalities and provincial organizations over the years. Critics say the current rate of $75 per student or bed does not reflect the rising costs of delivering and maintaining services in Ontario municipalities, such as water and sewers, public transit and snow removal.
“They use these services no differently than anybody else,” said Gary McNamara, president of the Association of Municipalities of Ontario (AMO), which raises the issue every year.
“Our costs to provide services to everyone in our communities doesn’t go down,” he said.
Earlier this year, the City of Toronto, which received $17.1 million this year, called on the province to increase the levy annually by the rate of inflation.
Qaqish hasn’t raised the issue with Mayor Jim Watson or other city councillors, but said he plans to write Ontario Finance Minister Charles Sousa soon to “ensure that we’re getting our fair share from the province.”
mpearson@ottawacitizen.com
twitter.com/mpearson78
查看原文...
The Gloucester-South Nepean representative is calling for a steep increase to the so-called “heads and beds” levy, which applies to colleges and universities, hospitals and jails. All such institutions are currently exempt from paying property taxes. Instead, provincial law allows for a per-head or per-bed payment to municipalities.
The amount of the current levy — which has remained unchanged since 1987 — is set at a maximum of $75 per full-time student, hospital bed or resident in a correctional facility.
An increase is necessary to properly reflect the city services these institutions have and continue to benefit from, Qaqish says, adding it couldn’t come sooner, as the city is facing a $41-million deficit this year.
“It will make a big difference for us at budget time,” he said Tuesday.
By his math, an increase to the levy tied to inflation since 1987 would see the amount rise by 84 per cent to $138.37 per head and bed.
In real dollars, that would have meant $11.7 million this year, as opposed to the $6.4 million the city actually collected.
“Municipalities are missing out on a good chunk of money,” Qaqish said.
The heads and beds issue is not a new one. It has been raised by a number of municipalities and provincial organizations over the years. Critics say the current rate of $75 per student or bed does not reflect the rising costs of delivering and maintaining services in Ontario municipalities, such as water and sewers, public transit and snow removal.
“They use these services no differently than anybody else,” said Gary McNamara, president of the Association of Municipalities of Ontario (AMO), which raises the issue every year.
“Our costs to provide services to everyone in our communities doesn’t go down,” he said.
Earlier this year, the City of Toronto, which received $17.1 million this year, called on the province to increase the levy annually by the rate of inflation.
Qaqish hasn’t raised the issue with Mayor Jim Watson or other city councillors, but said he plans to write Ontario Finance Minister Charles Sousa soon to “ensure that we’re getting our fair share from the province.”
mpearson@ottawacitizen.com
twitter.com/mpearson78
查看原文...
