When our City recently announced the investment of millions into
recreation programs partially financed through a user fee program, pundits and
progressives were outraged. The moves were regressive, they said. They called it a betrayal of principles and
told us these decisions would hurt the poor.
Nothing could be further from the truth.
User fees together with a targeted assistance program can be
progressive, better focus resources on needs and help us create a more socially
cohesive city.
Even without an entrance fee, tax paid programs are not free. As property taxpayers, we fund them. How we
pay for them now is regressive. Very few people realise that property taxes are
levied on apartment buildings at over three times the rate of single family homes.
So even though tenants earn less income than homeowners on average,
tenants pay disproportionately higher property taxes. It’s rarely an issue
because property taxes are included within rent bills. Invisible or not,
removing programs from the tax base reduces expenses from tenants at a greater
rate than from homeowners.
But what if the new direct costs make programs unaffordable? Properly
done, user fees in combination with financial assistance are a powerful
progressive tool. The City’s assistance
program, called its Welcome Policy, is just that: a sensitive simple process
designed to make sure the poor have access to City programs.
Advertised in 18 languages plus English, the one page application form
gives applicants and their families the ability to participate without anyone
else being aware of their financial circumstances.
While those who need assistance obtain full access, those who can afford
the programs pay enough to make the system financially sustainable. It is the
same model used by the YMCA to keep itself viable and delivering its services
for 150 years.
Those who plan, manage and budget recreation programs are grateful that
Council is considering a more sensible approach. They will tell you that even
though tax paid programs are not free, people act as if they are. Resources were dreadfully wasted by those
who reserved space in programs then decided not to participate. Residents from
elsewhere in the city drove to facilities that levied no fees. Planning the
City’s recreation programs was a nightmare.
Budgeting was like playing roulette.
Thanks to the combination of user fees and the assistance program, City
staff will now be able to have a reasonable chance to plan recreational
programs on a neighbourhood basis. The Welcome Policy can be tailored as
required.
The result will be that those who want to participate in a program at a
neighbourhood facility should find the space and will have the ability to do
so. There they will enjoy other
residents’ company on an equal basis.
Without a doubt there are still challenges in the recreation and parks
portfolio. But the key requirements of a reasonable and steady income flow, and
reliable data to determine needs have been established.
User fees together with tailored assistance programs are part of the
solution to build a city that is both socially cohesive and financially
sustainable.