The real issue is that we pay for (almost all of) the cost of municipal government through property taxes, and the City isn't allowed to run a deficit. Property taxes are based on a mill rate set for the amount of money required, from the total assessment base. If the entire tax base shifts uniformly, the taxes paid will stay proportionately the same. If some property values go way down and others stay the same, the tax burden will shift. There is nothing the City can do about it, they can set separate mill rates for residential and non-residential but are not allowed to set a separate mill rate for downtown and suburban non-residential. 25% vacancy rates downtown are going to affect property values.
Michelle Rempel should know this and was just making political hay. So she deserved the snarky remark.
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