Category Archives: The Issues

Taxpayer Terror

Experience has made ” making profits” and ” saving taxpayers money” words and concepts that strike terror into the hearts of Abbotsford’s taxpayers when spoken by members of Abbotsford City Council.

Paying to cover the losses of Council’s ‘profitable’ get rich quick schemes or the costs of repairing, completing, redoing or living with the consequences of Council’s ‘saving taxpayers money’ has (and continues to) impoverish the taxpayers and citizens of Abbotsford, not just monetarily but also in terms of City services, infrastructure, amenities, the cost to use facilities etc.

One would have Hoped (Prayed) Council would have learned, after all their costly squandering of taxpayer dollars, to consider possible consequences of their actions instead of simply doing the math to arrive at the dollars that would be earned or saved IF and ONLY IF everything went absolutely perfectly.

What makes council’s recent announcement of their latest plan to reap big profits from electronic billboards notably worrisome is not the fact that once again council has, behind closed doors, created a fantasy world of imagined big profits that has little or nothing to do with the real world that rules existence outside the confines of City Hall. Nor is it that council still refuses to hear or consider any questions or objections raised by those who don’t share council’s fantasies.

No, what raises dread about council’s latest get rich quick ‘sit back and let the $millions$ roll in’ scheme is that, apparently unable to find any new financial disaster to pursue, council has RETURNED to the electronic billboards business.

Remember, council had to have a big, multicoloured, all the bells and whistles billboard for ARC because council could then simply ‘sit back and let the $dollars$ roll into city coffers’?

Since its installation no advertising dollars have materialized – none, zero, zip, nada. The ARC billboard has only been used, until recently at least, to deliver information about ARC’s programs and events that a smaller, simpler, far less expensive billboard would have sufficed to deliver at a substantial savings to taxpayers pocketbooks.

Yet in spite of the fact that none, zero, zip, nada of the advertising revenue promised by council ever materialized, council has returned to electronic billboards as a source of ‘profits’.

[Recently the billboard has been used to increase the dollar value/cost of council’s hidden subsidies for the Abbotsford Entertainment and Sports complex by advertising upcoming events at the AESC.]

In light of Mayor Peary’s statements concerning the City’s agreement with the Pattison Sign Group one has to wonder if it is the ability to use the billboards to provide new, major advertising subsidization for the AESC and the Heat that led to the agreement?

The black hole that AESC is for taxpayer’s dollars – multi-million dollar subsidies to the Heat ownership group, multi-million dollar operating subsidies so the Heat have an arena to play in and the growing cost of council’s hidden (from taxpayer’s) subsidies – would seem about to consume millions more taxpayer dollars thanks to city council’s agreement with the Pattison Sign Group.

What makes me say that? Two things.

First is that councils big fancy digital billboard at ARC failed to attract advertising; that the only non-event  advertising on the Tradex electronic billboard is City advertising; that the display on the Automall’s very large, easily seen from Highway 1 electronic billboard is……..the time and temperature.

If there is no market for your product, in this case advertising on large electronic billboards, you are going to find yourself stuck holding said unsellable product.

Second, whatever else people have to say about Jimmy Pattison, they acknowledge that he is a sharp businessman.

The Pattison Sign Group is about to spend millions of dollars erecting 3 large electronic billboards in Abbotsford, were the lack of advertising dollars being spent on existing electronic billboards suggests there is a strong possibility that the Pattison Sign Group’s billboards will fail to generate sufficient revenue to break even on the billboards and their multi-million dollar cost.

Given council’s demonstrated willingness to provide revenue guaranties (a la the Heat) and the sharpness of Jimmy Pattison as a businessman – I want to know just how much Abbotsford’s taxpayers are potentially on the hook for when the billboards, which will operate in the real world and not council’s fantasy worlds, fail to generate enough revenue to cover their costs?

Unfortunately, what this agreement can cost Abbotsford’s taxpayers to pay for council’s latest get rich quick scheme’s ‘profits’ is undoubtedly something council considers taxpayers ‘don’t need to know’ and since it involves a private business they can (and will undoubtedly) refuse to disclose this information to taxpayers (as they do with the Heat).

Sigh.

I wonder how long it will be before council decides the problem with the AESC, as it would appear they did with ARC’s billboard, is that it is too small and that building a three or four times larger complex will have umpteen tens of $millions$ rolling in?

It is well past time that, if council wants to gamble on get rich quick schemes, they use their own money.

And if they cannot, as the BC lottery ads put it, learn their limits and play within them……

Because councillors are elected to take care of the City’s business and taxpayer’s best interests, not to be impoverishing taxpayers pursuing nonexistent business ‘profits’.

Do as I say……

Just a few days ago Richmond BC resident Selina She Yin Tsui, who had held herself out as a “holistic healer”, lost two properties she owned after both were “declared instruments and proceeds of unlawful activity” under the province’s civil forfeiture laws.

What was unusual was not that someone collected money, sometimes tens of thousands of dollars for something they didn’t, couldn’t (Tsui had no actual medical training) deliver; rather it was that her ‘marks’ got some restitution.

Most often the reports are about how the con men (or women) made promises or claims, took people’s money, delivered nothing and kept the money or there were no assets or funds to repay the ‘marks’..

Citizens are always complaining that politicians lied or that they did not keep their promises.

The new television season of Holmes on Homes begins tonight, where Mike Holmes rescues homeowners from builders or contractors who made promises about what they would do, took the money to do what they promised, didn’t deliver what they promised and kept the homeowners money.

And on the news last night, there was Christie Clark coyly smirking about getting out of repaying Ottawa the $1.6 billion BC took to implement the HST.  Undoubtedly most British Columbians are cheering for Clark to be 100% successful in reneging on British Colombia’s written agreement with the federal government on implementing the HST.

As a society we like to talk the talk about integrity, morals, ethics, and principles as long as it isn’t costing us, as individuals or a society, anything or any inconvenience.  But as soon as it becomes inconvenient or is going to cost us effort, or worse money, we walk away – ignoring integrity, morals, ethics and principles.

We had an agreement with the federal government on the HST whereby the province of British Columbia would receive payments totalling $1.6 billion dollars in exchange for implementing the HST.

In that agreement it was clearly set out that we had the right to change our minds and extinguish the HST. It was also clearly set out that if we chose to change our minds and not participate in the HST, the $1.6 billion would have to be repaid to Ottawa.

The fact the $1.6 billion would have to be repaid to the federal government if we voted to extinguish the HST was oft cited in the discussion leading up to the referendum on keeping or extinguishing the HST. Prime Minister Harper clearly and definitely stated that if British Columbia chose to extinguish the HST the province would have to repay the $1.6 billion dollars to the federal government.

Knowing that a major consequence of choosing to extinguish the HST would be repaying Ottawa that $1.6 billion dollars, British Columbians voted to extinguish the HST – we voted to return the $1.6 billion to Ottawa.

That may be an inconvenient truth, but for a people or a society of integrity, morals, ethics and principles there would be no option other than returning the money.

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The news has recently been full of the fact none of the rioters from the Game 7 debacle has been charged, much less meted out any punishment or consequences. About how the rioters needed to pay the penalty for their decisions and actions; and on the same broadcast we have Christie Clark sitting there acknowledging her efforts to get British Columbia out of the consequences of voting to extinguish HST.

Harper may well decide to forgive all or part of the $1.6 billion repayment due the federal government from British Columbia. Not because it’s a good idea, but as a matter of politics – an opportunity to buy votes in British Columbia. If Harper were a leader instead of a politician, he would clearly be saying “No, we had an agreement.  You made a promise, a commitment, to the federal government. We, the federal government, made the promised payments to British Columbia. But the province of British Columbia chose to change its mind and not participate in the HST. In the agreement it was clearly set out that if British Columbia chose not to participate it was required to repay the$1.6 billion.”

“It would be unfair to the other provinces and territories not to require British Columbia to repay these funds.  More importantly, it is necessary to require the repayment of these funds in order to protect the integrity of agreements made between the federal government, the provinces and territories, as well as agreements between the provinces and territories themselves.”

Consider the effect upon healthcare should the agreements between provinces, territories and the federal government become ‘flexible’ (not worth the paper they’re written on). Definitely a path we don’t want to start down, a can of worms we don’t want to open.

If Christie Clark was a leader instead of a politician, or if Stephen Harper was a leader and not a politician, there would be no question about the agreement between Ottawa and Victoria being kept as this is the best course for Canada and ultimately for British Columbia. It is in the fact they are politicians and not leaders that the possibility of a portion, or the entire $1.6 billion, not being repaid per the agreement lies. Because the question for politicians is not what is good for the country or province but what political gain is available to be had.

The reason we have politicians who lie to us rather than leaders, is that we are not a People or a Society, not a province or a country, of integrity, morals, ethics and principles as we like to lie to ourselves we are.

True integrity, morals, ethics and principle are not things one puts on when it is convenient and sets aside when they are inconvenient or uncomfortable or require sacrifice or the paying of a price.

As Martin Luther King Jr. stated “the ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy”.

Aesthetically Pleasing?

Just how does one make a 10 X 20 foot electronic sign that is designed to be obtrusive and get your attention ‘aesthetically pleasing’?

And given that electronic signs have two sides would it not be more accurate to say Abbotsford is getting six signs? Or at least getting the visual pollution of six signs?

“stems the proliferation”?

To stem is ‘to stop, check or restrain’. I am not aware of the city being inundated with this type of visual pollution or of any proposals to visually pollute our cityscape with eye assaulting electronic billboards?

Council’s actions would seem to encourage others to consider the money to be made from this visual pollution; encouraging, not stemming the proliferation of visual pollution around our cityscape.

The attempt to use Amber alert as a justification is facetious since there are already signs on Highway One and around Abbotsford capable of giving an Amber alert.

No, what this is about is Council’s desperate search for sources of revenue so they can continue their spendthrift ways.

Business as usual for Council were it is all about Council’s wants and needs and ‘who cares about’ the wants or needs of Abbotsford’s citizens.

Council is suppose to focus on managing Abbotsford in the best interests of citizens, not on commercial business ventures.

The question that should have been asked is not how much money the city can make, but whether we want this type of visual pollution sprouting up like weeds around  Abbotsford.

While other cities in BC fight to protect their citizens from this type of visual pollution Abbotsford council, with dollar signs glowing in their eyes, happily sell Abbotsford’s citizens out; opening the door to visual pollution the extent of which only time will reveal.

Abbotsford, where the cityscape is littered with brightly glaring Signs of Council’s mismanagement and blatant disregard for the needs and best interests of Abbotsford citizens.

So Bill, Adrian…

On the Monday (August 29th) news there were calls for BC Community Living to find money to keep care homes for the developmentally challenged open. Over the weekend there were calls for the government to find the money to open the top two floors at Vernon Jubilee Hospital’s new tower. Earlier this year there was a call to find the $10s of millions needed to build a new hospital on Haida Gwaii.

Calls by BC citizens, the media, the NDP for the government to spend more funds are a daily (or near daily) occurrence.

Yet with media acting as cheer leaders and Mr Vander Zalm, along with Mr Dix (and his NDP), acting as Svengalis – British Columbians voted to extinguish the HST and rip $2.6 to $3 billion out of government coffers over the next three and a half years.

On the heels of the announcement of the results of the vote, completely ignoring (refusing to accept?) the serious financial consequences of extinguishing the HST, British Columbians, the media, the NDP are all back calling for the government to ‘find the money’.

Perhaps, rather than patting themselves on the back or running around thanking people for helping them  extinguish the HST, Mr Vander Zalm and Mr Dix (and his NDP) will finally share with the public what $1.6 billion worth of  health care and education services they want to cut to offset the $1.6 billion repayment (forfeiture) to Ottawa they fought so hard and successfully for? Or the cuts they favour to offset the $1 billion revenue reduction in the first two years of the return to the PST?

Cuts to services, since Mr Vander Zalm, Mr Dix (and his NDP) fought so hard to extinguish the GST because it ‘raised taxes’ so one would not expect them to want to raise taxes to cover these massive revenue shortfalls.

Why speak only of cuts to healthcare and education? Because even drastic actions such as cutting all the gaming grants given to organizations in the province or cutting subsidies to BC Ferries and forcing them to balance their books through service cuts are  simply too small to achieve a re-balancing of the budget without significant reductions in healthcare  services and  education. Healthcare and education being the only budget areas large enough to provide the Hundreds of Millions of Dollars in cuts needed.

Not that I am opposed to making as many smaller cuts as possible to offset the revenue forfeitures Mr Vander Zalm, Mr Dix and the NDP so successfully (and disasterously) fought for.

I am very much in favour of eliminating the government pensions of Mr Vander Zalm, Mr Dix and the NDP as well as cutting the salaries of current NDP MLA’s to $32,667 (1/3 of their current $98,000). Since the behaviour of Mr. Dix and the NDP MLAs clearly demonstrates their outrageous salaries and gold plated pensions have resulted in them being totally out of touch with the economic and financial reality of British Columbia and most British Columbians

The leadership Mr Vander Zalm, Mr Dix and the NDP showed in extinguishing the HST, should be shown in living with the consequences.

It is just unfortunate that those consequences cannot not be limited to Mr Vander Zalm, Mr Dix, the NDP, the media and those British Columbians who voted to extinguish the HST – but will instead fall on, and be suffered by, all British Columbians.

More ad hominem mayor Peary?

I see mayor Peary has changed the negative label he applies to any who dare disagree with him.

‘Naysayers’ have now become ‘critics’. Perhaps because the use of ‘naysayers’ reminds citizens that the predictions of the naysayers about the outcome and consequences of building the AESC have proven fairly accurate. Especially in contrast to the wildly inaccurate ‘everything will be wonderful’ predictions, claims and promises made by city staff and council.

When did critical review and evaluation of expenditures that will cost taxpayers hundreds of millions of dollars become a bad thing?

Without the feedback provided by critical review and evaluation companies, countries, provinces and municipalities can easily end up wasting millions upon millions of dollars on projects that become white elephants and money pits. At least companies, countries, provinces and municipalities lacking papal infallibility.

Admittedly one needs solid self esteem to accept and examine the feedback provided by critical review, acknowledging oversights or mistakes and making changes as needed.

Personally, I must acknowledge that in my analysis and evaluation of the proposal to build the AESC I did not foresee that council would saddle taxpayers with a $75 million dollar liability for the Heat (of which $60 million remains for the 8 years the revenue guarantee has left).

Fortunately (or should that be unfortunately?) taxpayers are only out $5 – $6 – $7 million rather than the maximum possible $15 million for the first two years of the revenue guarantee.

I admit I failed entirely to anticipate that council would ignore the law – flout the law -break the law – and put taxpayers at risk for $75 million dollars by signing an illegal revenue guarantee with the Heat ownership.

As to Mayor Peary’s latest derogatory term for those who disagree with him:

Labelling me a critic or naysayer does not change what I am.

A person of common sense with an appreciation of financial reality and the need to act in a financially responsible manner.

A person who believes council should be acting in the best interest of and to address the needs of the city and its citizens and not council’s ego.

A person of ethics who believes that when subsidizing a hockey team is against the law council should respect the law rather than, as this council chose,  ignoring or finding ways to circumvent the law.

A person who feels that if the only benefit (or beneficiaries) of an economic impact report is the re-election campaign(s) of elected officials, payment for the report should come out of the pockets of those seeking re-election and not out of the pockets of taxpayers.