Quote:
Originally Posted by takinghits
I had to google what is this secret inflation number MPI. Seems pretty reasonable to me 
"Consumer inflation is typically measured through the Consumer Price Index (CPI) produced by Statistics Canada. The CPI represents the purchasing patterns of an average consumer and is a generally accepted measure of inflation. The CPI, however, is not the best tool to assess inflationary pressures the City of Edmonton faces because it does not adequately represent the municipal purchasing patterns.
The Municipal Price Index (MPI) serves to measure inflation for the City of Edmonton and reflects the mix of goods and services purchased by the City of Edmonton. Development of an MPI was undertaken as a means to measure inflation the City of Edmonton's operating budget faces." |
It might sound reasonable on its face, but there's a big problem when the city uses its own spending power to purposely increase inflation. The Edmonton report acknowledges that well over 50% of their budget, and thus their mpi calculations is spent on salaries and wages and benefits. Who sets the cities salaries and wages? Well they do of course.
So they justify increased spending because of the increased mpi, mainly due to salaries. They have to increase taxes to afford this. Then they increase salaries. Then they need to increase spending because of the increased mpi. See a problem here?
Meanwhile the taxpayer, whose inflation is consistently LOWER than what the city claims, is supposed to continue to pay the increased inflation presumably forever?
Even the city of Edmonton acknowledges this problem in their report.
Sadly Calgary does not have any report on their methodology for calculation of mpi and resists any transparency or accountability on this matter.
From your chamber of commerce : The Municipal Price Index (MPI) is used by The City of Calgary to calculate inflation in its budget process and informs the recommended property tax increases to fund City operations. The City of Calgary’s MPI relies on a number of internal forecasts, which creates potential biases in its inflation estimates. This is subsequently reflected in the budgeting process, when inflation is included in proposed property tax increases. A more transparent process, which adheres to clear, independently developed values would improve fiscal management to the benefit of The City and all Calgarians.