Statement by Sean Hurley

Hamilton is a city with high taxes and low incomes when compared with other Southern Ontario cities. Consequently, a larger proportion of income for many Hamiltonians goes to paying property taxes than in similar sized Ontario cities. On top of that, Hamilton faces a staggering infrastructure deficit of $195 million per year or $3.3 billion in total backlog for repairs to city owned infrastructure.

In a report headlined Hamilton: The unaffordable city, The Spectator reported that the backlog represents a 30 percent increase to property taxes. The long term debt, forecast to reach $885 million by 2019, represents $1,521 per resident in property taxes “just to upgrade aging water and sewer plants”.

"We don't have a spending problem, we have a revenue problem," Mayor Fred Eisenberger told The Spectator arguing property taxes alone can’t solve Hamilton’s infrastructure deficit.

Into this gloomy picture steps the Province of Ontario offering a substantial capital investment of $1 billion to build light rail transit (LRT) across the lower city. Included in the deal is almost $75 million in infrastructure improvements along the transit corridor including the replacement of ageing pipes and repaving the road surfaces. These are costs that would otherwise be borne by property taxpayers.

The Hamilton Community Foundation (HCF) in its 2015 Vital Signs report pointed out “Hamilton has the highest rate of workers in insecure employment with 57% of workers in this category.” LRT is forecast to produce 3,500 construction jobs directly in Hamilton and another 300 permanent jobs, directly in Hamilton, operating and maintaining LRT. That’s just the beginning. The redevelopment of the transit corridor with proper planning and zoning will spur investment and economic growth that will engender new employment and economic opportunities.

The potential for pedestrian traffic to and from LRT stations could completely transform the transit corridor creating new housing and retail opportunities. The transit developments taking place in Charlotte, NC, are an exciting indicator of the possibilities awaiting Hamilton: http://rebusinessonline.com/infill-transit-oriented-developments-are-driving-charlottes-retail-market/

Increased density and new commercial developments will further ease Mayor Eisenberg’s revenue problem by contributing to assessment growth without adding to the infrastructure deficit.

According the LRT Benefit and Cost Report, the transit project will contribute an increase of $443 million to Ontario’s GDP.

Hamilton could just invest in more buses, it is true. But HSR is paid for from the farebox and property taxes. What’s more, the old city of Hamilton pays a disproportionate share of the transit bill thanks to area ratings. The proposed $200 million bus barn, for example, would cost the property taxpayers of the old city of Hamilton, without any additional federal or provincial dollars, almost half the cost at $90 million.

It is not surprising, then, that pre-amalgamation city councillors are no more interested in increasing spending on transit than are pre-amalgamation suburban councillors. Without federal or provincial funds, or increases at the farebox, HSR improvements mean higher property taxes.

In short, the LRT investment reduces the infrastructure deficit, eases the revenue shortfall, increases employment, provides rapid transit without raising municipal taxes while sidestepping the thorny issue of area ratings, and grows the local economy.

For all of these reasons I am supporter of LRT. But not just those reasons. LRT means a reliable alternative for getting to work, cleaner air, friendlier and safer streets.

Those who oppose LRT may not be fully aware of it, but they arguing for higher property taxes for all the residents of Hamilton. And I would remind them that renters pay a disproportionate share of property taxes through their rent.

Thank you to the Councillors who continue to support this important project and for protecting our property tax dollars.

Sean Hurley
114 Kensington Ave North
Hamilton, Ontario

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