EDITORIAL – How it’s up to taxpayers to fix spending troubles in River City

 

‘Well, ya got trouble, my friend, right here
‘I say, trouble right here in River City.’

– Lyrics from ‘Ya Got Trouble,’ The Music Man

An editorial by Mel Rothenburger.

TO BORROW from what has by now become something of a cliché with respect to the Tournament Capital, we’ve got trouble in River City. Not just all the baggage from the past three years, but leading up to the 2026 civic election, there’s new trouble of the worst kind — financial.

This week, City council was informed that the provisional budget for 2026 is looking at a tax hike of 10.76 per cent. Not only that, the bill for the performing arts centre has soared to $211 million, up $45 million.

No doubt, more than a few taxpayers are tearing their hair out over this, and will blame City Hall for profligate spending. They should keep in mind, though, that the provisional budget is not the final budget, and that election-minded council members will almost certainly bring the final version to under 10 per cent. That’s because 9 point something looks better on paper than a double-digit increase, and they can say, “look, we’ve done our best to keep our spending under control.”

It also has to be kept in mind that the ballooning cost of the performing arts centre isn’t necessarily going to show up on tax bills. First of all, the council can’t simply tack the rising costs onto those taxes without first asking ratepayers for permission.

There are two ways of setting municipal budgets. One is to decide what it is the council wants to do, and set tax rates accordingly. The other is to decide what taxpayers can afford, and set spending to fit.

It’s often said that people need to choose between higher taxes and decreased services, and that’s true. They usually lean toward maintaining services rather than slashing them but it’s a delicate balance.

In the case of the PAC, City staff say surprises with the site are largely responsible for the higher-than-predicted price tag, but that reserves and delaying other projects can avoid the need to go back to taxpayers and ask for more money.

Those same taxpayers have to accept some of the responsibility for the problem, for it’s they who have procrastinated. If the PAC had been built when first envisioned some 20 years ago, the price would have been around $15 million, a pittance in comparison to current estimates. But divisions in the community resulted in delay after delay, gradually and steadily boosting the cost.

While $45 million can be found by cutting out other things, those other things will be important to a lot of people, and losing them or delaying them will be painful.

As for that double-digit tax hike (the one that is almost certain to be cut by at least a percent or two before it’s signed off on), a lot of things contribute to rising taxes, the most common of which are inflation and unforeseen expenses. And much has happened to cause a boost of four per cent over original expectations, things such as higher costs for policing, fire protection, and transit. And then there are the nice to haves, such as the new city sign and that ridiculous pedestrian/ cycle overpass to TRU over the Summit connector.

Some cuts, or postponements, will be easier than others. For council, it will be a political decision based on self-preservation and a guess on what taxpayers will accept in lowered services. In that sense, the people will make the decision, and they have a responsibility to tell council how they want to handle these current troubles in River City.

Mel Rothenburger is a former regular contributor to CFJC-TV and CBC radio, publishes the ArmchairMayor.ca opinion website, and is a recipient of the Jack Webster Foundation Lifetime Achievement Award, and a Webster Foundation Commentator of the Year finalist. He has served as mayor of Kamloops, school board chair and TNRD director, and is a retired daily newspaper editor.  He can be reached at mrothenburger@armchairmayor.ca.