Thread by @mpotkins

Change in the program at #yyccc : 2019 tax debate is up right now.

Option 1 for 2019. The takeaway wouldn't be much different than what was discussed last November during budget. A 3.45% hike. Average home would pay $105 more in 2019. Would result in close to 2% cut to commercial tax bills. #yyccc #yyc

Option 2 is a more dramatic shift to homeowners, and bigger break for business.

Average home would see $200 increase in 2019 (if no rebate is approved) #yyccc

What would a rebate program look like?

For the average home, it would be about $135 in the first year.
Notably, the city hasn't identified a source of funding to cover multiple years of rebates. #yyccc

Coun. Woolley says he's concerned that option 1 is assuming the province will take a smaller portion of the education tax than the city budgeted for. However, the city won't know how much provincial tax room is available until a provincial budget is passed. #yyccc

Coun. Gondek now introducing her proposal (option 2). Calls her solution "equitable and targeted" plan to help businesses in a dire situation. She is also asking for a reconsideration of #yyccc to discuss a rebate program to accompany the tax hike she is proposing.

"We all agree that businesses pay too much," says Coun. Sutherland who is seconding Gondek's motion for reconsideration. "Our businesses are going under... so how do we shift some of it?"
#yyccc

Woolley isn't supportive of the reconsideration for Option 2. "We're jacking tax rates by 10 per cent and offsetting it with one-time money," Woolley says. #yyccc

Coun. Carra won't support the reconsideration. "This does not support the problem we have with the non-residential tax rate," says Carra. Says he would rather "hold his nose" and support option 1. #yyccc

Coun. Chahal: "This is taking off a Band-Aid from one place and putting it somewhere else."
Chahal says city hasn't gone far enough to cut its own budget. #yyccc

Coun. Chu showing some grace here. Commends Gondek for trying to come up with a solution to help businesses, even if he doesn't necessarily support it.

He will support the reconsideration to get the proposal on the table, even if he can't agree to hiking taxes on homeowners.

Oof. Looks like Chu might have it wrong on procedure here. Chair is clarifying that voting for a reconsideration IS voting for Option 2.

Coun. Davison says this isn't about businesses vs. homes. "We have to make a shift that's palatable to all Calgarians."

Davison says he is supporting Option 2. #yyccc

Coun. Farkas says spending less than you originally planned to isn't a cut. He says council has grown "too comfortable" and says he won't support tax hikes to tackle downtown shift. #yyccc

Coun. Farrell points out that freezing a budget when the population is growing does amount to a cut. #yyccc

Worth noting that the city's CFO says both proposals would create a "bow wave", i.e. a grant program for business or rebate program for residences would create reoccurring expenditures that could grow over time without identified sources of funding to cover them. #yyccc

Nenshi says he's also worried about a bow wave and the size of the tax increase created with Option 2. "We have people losing their homes and struggling to get by, how much then do you think we should be able to move onto that residential taxpayer?" #yyccc #yyc 1/2

2/2
Nenshi: Neither of these are great answers but option 1 is more measured and more up front with people. #yyccc

Coun. Demong against making a structural change, believes city should be using reserves (not tax hikes) to help businesses going through "probably the worst year" in recent times. #yyccc

Gondek says she's disappointed more council members won't support what she believes to be a meaningful solution to the tax shift problem.

Option 2 LOST 12-3

#yyccc

Only Gondek, Sutherland and Davison were in support of the more aggressive tax shift proposal.

"I don't think there were any clear winners," says Coun. Keating. He doesn't like the business grant program proposed in option 1. #yyccc

Woolley says option 1, which keeps tax hike at 3.45% continues to keep the burden on business and punts the problem down the road.

What the...
Council voted to kill Gondek's proposal and then proceeded to kill Nenshi's proposal.

So, none of the above?

They just took a break. We'll have to find out what this means. #yyccc

Few on #yyccc are happy with what’s on the table and that’s resulted in both tax proposals being rejected.

The scramble is on to come up with an alternative. Council members huddling now. Nenshi needs 2 votes.

Here we go: Davison says he's "grudgingly" standing up to support option 1. He is making motion to reconsider #yyccc vote to kill last vote. "I want to see some further cuts... but today we do need to get something going."

#yyccc is voting on 3.45% proposal after reconsidering vote to kill it.

Nenshi found his votes. Proposal PASSES 8-7
Gondek no
Sutherland no
Woolley no
Keating yes
Chahal yes
Demong no
Farkas no
Chu no
Magliocca no
Davison yes
Farrell yes
Jones yes
Carra yes
Colley-Urquhart

oops, ALSO:
Colley Urquhart YES
Nenshi YES

Chahal is proposing a $55M draw from funds set aside for four major capital projects in order to lower non-residential taxes further. #yyccc

"This is lunacy," Davison says, urging his colleagues not to support making cuts on the fly to the big 4 projects fund.

Demong says this is one of the worst years of the recession for businesses. "The reserves are specifically designed for this... if anything, the four projects should have been thrown to the wind while we deal with this crisis." #yyccc #yyc

Chahal proposal to cut from four projects fund FAILS.

Gondek NO
Sutherland NO
Woolley YES
Keating YES
Chahal YES
Demong YES
Farkas YES
Chu NO
Magliocca NO
Davison NO
Farrell YES
Jones YES
Carra NO
Colley-Urquhart NO
Nenshi NO
LOST 7-8
#yyccc

“Did I not say that one of the things we needed to avoid was a Brexit situation?": A chaotic debate today at #yyccc on property taxes.

Council initially rejected every option on the table, but two councillors eventually changed their minds. More: calgaryherald.com/news/local-new… #yyc