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Originally Posted by Slava
Why did Hodges skip the vote? This seems like a pretty significant vote to miss.
Anyway, at the risk of sounding like a broken record, I would like to know how much of the potential $500M is insured. I would hazard a guess that its more than the vast majority. Then you add in the provincial and federal funds and how much is left over?
I hate to agree with both Bell and DCU, but that money was never the cities money to begin with and should've been given back. The flood just provided a convenient excuse, but quite frankly this is very concerning because its tantamount to theft. The money was overpaid, and rather than do the right thing we have a group of politicians here who found a politically appealing way not to return it to its rightful owners.
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The motion is designed such that any leftover money is moved to long term flood mitigation. Future tax room beyond 2013 is still on the table for a Council decision.
It's been estimated thus far that The City may be on the hook for approximately 20% of the overall cost. The Province has advised the City it would be wise to set aside cash for its recovery effort. The experience in Slave Lake (who urged Calgary to set aside cash based on its experience) and other disasters have suggested that Federal and Provincial programs are highly unlikely to cover all the costs. Cash on hand also reduced bridge-financing costs.
Why not use our Fiscal Sustainability Reserve, one might ask? Well it sits at 11% of the budget while its target is 15% and its bare minimum is 5%. Tapping into that would require it to be replenished (which would end up coming out of taxes anyway).
As for tax room - it's not the result of "overpaid" money. It's the result of the Province requisitioning less than expected on their portion of the property tax after the City has already set the indicative tax rate. Actually, in years past through negotiation, the Province encouraged the City to take up any tax room to fund capital projects that the Province might otherwise fund. You'll notice Jim Stevenson voted for keeping tax room, because he was a key point-person as Calgary's representative on Alberta Urban Municipalities Association regarding tax room.