By JIM MEEK
Sat. Apr 26 - 6:36 AM
IF YOU LIVE in many parts of peninsular Halifax, this city is a ripoff.
For instance, it turns out the “old south end” isn’t the painted lady of legend after all.
Instead, peninsular Halifax plays the role of sugar daddy to the city’s rural areas and many of its suburbs.
I used two documents to figure this out.
One shows 2006 census figures by electoral district in greater Halifax.
The second document is the one that Mayor Peter Kelly and the people who work for him don’t want you to see.
Generated by city staff in 2007, this document reveals the residential tax Halifax collects by electoral district.
Do the math and here’s what you get.
South-enders paid residential taxes averaging $1,466 per person in 2007, about twice the average for greater Halifax.
The comparable figure for the average Eastern Shore-Musquodoboit Valley resident was $524.
The total per capita (residential and commercial) tax take in downtown Halifax was $3,276 last year, compared to $668 in Spryfield-Herring Cove.
Yet no one blinks when some cretin suggests that that the downtown swimming pool – Centennial – should be closed. Just try closing the wave pool in Spryfield and see what happens.
The rich should pay, you say – and I half agree.
But the politics of entitlement is totally out of hand in Halifax, with rural areas making demands that are way out of proportion to their tax payouts.
Already, council has agreed to finance new recreation centres in Low-Tax-Villes. At the same time, as downtown Councillor Dawn Sloane has pointed out, it’s become virtually impossible to get money for new projects on the peninsula – except sewage treatment plants.
The wonky political calculus of amalgamation only deepens the frustration. Halifax peninsula has four councillors; the remaining 18 can easily gang up on the city slickers.
And why not?
The politics is sound, even if the principles of tax equity and good government are violated.
I know, I know – you’re saying to yourself that peninsular Halifax can look after itself.
But you’re wrong. The peninsula has been rolling with the punches so long that it doesn’t know how to fight back.
Also remember that the people who often complain most about the peninsula take the most out of the city.
According to one 2005 study, it costs more than $5,000 per household to provide municipal services in a sparsely populated rural area, compared to $1,400 per household in a densely populated part of the peninsula.
Still, the peninsula lost tens of thousands of people over the past three decades while the suburbs grew apace.
Not only that, but municipal governments historically subsidized suburban sprawl by failing to charge developers adequate fees for sidewalk, road, garbage, police, fire and other services in new neighbourhoods.
As a consequence, some developers got rich with a little too much help from taxpayers. The indirect subsidies to developers easily amount to hundreds of millions of dollars. (I will detail this story in The Sunday Herald tomorrow.)
Here’s what you have to know for now: In pre-amalgamation Halifax, developers’ fees were a joke.
The good news is that we now have a chance to put the jewel back in the crown. Halifax’s tax reform commission, which goes into full public consultation mode next week, can fix it all.
And as the Greater Halifax Partnership reported this week, a new survey shows people throughout the municipality support growth – and even tall buildings downtown.
The city core, by the way, is in a sad state – featuring ugly parking lots and boarded-up stores alongside spectacular assets like the Common, the Public Gardens and Point Pleasant Park.
This much is certain: If we let the peninsula fray around the edges, all of greater Halifax will pay.
Why? Because no one smart or educated or young will want to move here, stay here, or invest here.
As celebrity economist Richard Florida says, creative people are now the great wealth generators in North America, and they flock to attractive cities – Boston or San Francisco, Seattle or New York.
Halifax won’t succeed in this brave new world by transforming itself into a giant Beaver Bank.
So for everyone’s sake, let’s hear three cheers for the peninsula, the south end and even its much-maligned lawyers.
We need them now more than ever, whether we like it or not.
( jmeek@herald.ca)
COMMENTS
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gordo wrote:
Hallelujah! I live in an old salt box a few houses from the Commons and love it. It is not a mansion and it is not in the South End. I came to Halifax 15 years ago and love the closeness of everything.Unfortunately the taxes for my little house are a bit outrageous - $2500. I await tax reform with bated breathe as the services in my neighbourhood have been around for hundreds of years while I help subsidize development and amenities in far flung “low-tax-ville”. Lord help the municipality if penisular Halifax acts like some of those people out in Bedford…..
Common not a venue wrote:
And Mr. Meek what type of Services does the Valley get for the money they pay ? Certainly The Valley does not get sidewalks, Two major parks maintained by city or outside contract workers. What About Water and Sewer ? Do south enders pay for the Wells or spetic systems a rural resident must maintain ? Then you have fire fighting Most rural communities had volunteer Departments where as there is a great cost to have fulltime Pros in the South end. Then we can look at public transportation . There is none in Rural HRM or Nova Scotia Your Idea the pennisula somehow pays for the valley is bunk. Last I checked the Valley didn’t have a neptune theatre running in the red or a metro centre or a world trade and convention centre among all the White Elephants all nova scotians get saddled paying for residing in old Halifax.
mayhar wrote:
I didn’t realize the valley was in Halifax. He said Musquodoboit Valley. If you’re going to complain, at least read what you’re complaining about.
McNeil_hfx wrote:
I suspected as much, but I had no idea it was this bad! The peninsula (and probably downtown Dartmouth too!) need to take a stand. Something must be done to turn this around. There are way too many rural/ suburban councillors driving the agenda at City Hall. If the financials of sprawl in HRM are this dire, why does the regional plan aim to direct 75% of new growth outside the regional center? Why are the new suburbs getting all the services and schools? Isn’t that just going to make it worse? Is this why Council can’t control the budget? We clearly need a third party audit of where our taxes are generated and where they are spent to help us plan better. As a regional municipality we could be a lot smarter than this, but for some reason (likely the 19 to 4 situation at city hall!), it’s not politically feasible. Looking forward to tomorrow’s column!