In one fell swoop, roughly $2 million was transferred from the pockets of gamblers to those of homeowners as Richmond City Council reduced this year’s proposed property tax increase by one per cent — much to the frustration of Mayor Malcolm Brodie.
Councillor Bill McNulty led the motion, at Tuesday’s council meeting, to transfer the money from unallocated gaming reserves to reduce the 2.89 per cent property tax increase to 1.89 per cent.
The City of Richmond has had a long-standing financial policy to fund reserves with an annual, extra one per cent tax increase.
Brodie was not impressed with council’s 5-4 vote in favour of the present one-time exemption.
“If we’re going to build up our reserves we have to do this year by year.
“This amendment, with respect, is very short-sighted,” said Brodie, who claims not funding reserves led to years of five per cent tax increases over a decade ago.
Richmond First colleagues Coun. Linda McPhail and Coun. Derek Dang, as well as former political colleague Coun. Ken Johnston of the Richmond Community Coalition and Coun. Carol Day of RITE Richmond joined McNulty to form a majority.
All of them stated before the election they would not use casino money for one-off tax cuts. The Richmond News contacted them, asking what changed during the process.
“I changed my mind. A lot had to do with looking at the year in gaming revenue and talking to lots of people,” explained McPhail.
Richmond is sitting on $16 million in unallocated casino reserves, according to the city.
Day said considering the city earned an extra $4 million from its projected 10 per cent cut of the River Rock Casino Resort, it was more important to cut taxes.
(Look at casino expenses, to date, here)
McNulty said the record $22 million casino cheque from 2014 meant council could budge on the extra one per cent policy, which he and the others opposed pre-election.
After helping pay off the Richmond Olympic Oval with 10 $5 million annual payments from gaming revenue, the city has earmarked $5 million per year for 10 years to help pay off the new Minoru complex.
The one per cent represents a $15-20 savings for the average homeowner ($700,000 property).
Of the 1.89 per cent increase, 1.19 is a result of external senior government related increases. No services are being cut.
Day called the move “logical” since the city was sitting on $200 million of capital reserves while Dang said the economy was a factor.
“I don’t think the economy has increased to the degree people are thriving and economically sound,” said Dang.
Presently, council is awaiting a staff review on casino revenue and spending in order to shape a more consistent policy.
That’s one of the reasons Coun. Harold Steves voted against McNulty’s motion.
“Let’s go through the process. …Let’s not do this by the seat of our pants,” he said, while adding he was in step with Brodie’s logic.
Coun. Chak Au, who stood by his pre-election support for the one per cent policy as well as his opposition to pulling money from casino revenues for tax relief, voiced concern that the transfer would limit council’s ability to dole out the money as it sees fit following the review.
Coun. Alexa Loo expressed concern about the long-term stability of the city.
“There are community centres that need rebuilding and major infrastructure projects that need to happen. I think we should be saving for those rainy days,” said Loo.
She added that a review of overall city spending should be done, followed by “belt tightening.”
McNulty called that city spending review, proposed by Johnston, political “rhetoric.”
“I believe we review constantly throughout the year,” said McNulty who said he opposes any external review.
Following the vote on the reserves, Johnston and Au opposed the vote on the overall $277 million operating budget.
After opposing both the capital and library budget at finance committee last week, Day voted in favour of the $92 million capital budget, which passed unanimously, but opposed the library budget, which passed 8-1.
“The Library budget is a large percentage of the City budget at $ 8.5 million and it has managed to lose 9.49 per cent in revenue, which is over $87,000. This is troubling to me,” said Day.
