A few comments this week gave me a sense of déjà vu, yet still managed to reinforce how much has changed in two years.
The first came when Coun. Lorie Garritty recognized the 8.39 per cent increase proposed for 2009 might not be popular with the public, suggesting a more "palatable" number might be in the six or seven per cent range. Coun. Gareth Jones later said 8.39 per cent seems "a little high."
Former mayor Paul Chalifoux made similar remarks early in the 2007-08 budget process, when administration at the time forecast annual tax increases of seven per cent.
"There will be trepidation because seven plus seven doesn't look good," Chalifoux said at the time. "The reality we're facing is that we're in a churning economy right now and we don't want to let the quality of the community go down hill."
Two years ago council faced an upward curve of inflation, a booming regional economy, several unfunded projects yet still found some spending to cut. They trimmed down the 2007 tax increase to 6.4 per cent and 5.49 per cent in 2008 (before this year's Servus Place review).
To get the increase down, council put several projects on the shelf and found other ways to save, such as cutting in half the contingency fund for unknown costs and inflation.
Fast-forward two years and inflation is still sky-high, but growth has dried up. The city continues to have more capital needs than money.
Now the formerly unpalatable seven per cent increase is preferred to 8.39 per cent.
Are there areas to cut this year? Stay tuned.
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