Keeping PACE with our energy use

During this term of council, I have been proud to serve on London’s Advisory Committee on the Environment (ACE). The committee provides input, advice, and makes recommendations to City Council on environmental matters affecting London.

Aside from firsthand experience with how thing get done at City Hall, serving on the committee has given me a chance to discuss exciting new ideas for improving our city’s environmental performance with smart and committed fellow citizens. One of these proposals I think is so promising that I have included it in my platform: a Property Assessment for Clean Energy (PACE) program.

Here’s how it works: property owners make energy improvements to their homes or buildings. This may include installing high-efficiency furnaces and water heaters, new windows and doors or other air sealing measures, renewable heat sources such as solar and geothermal, and more. Rather than paying the cost of these improvements up front, property owners would pay for them over several years in instalments added to their property tax assessment.

There are several benefits. By making our homes more energy efficient, we reduce carbon emissions that are contributing to climate change. Property owners who participate save money on utility bills, since they are using less energy.  They money they save goes toward paying the loan back, and what remains left over can be spent in the local economy.

Energy improvements are beneficial, but they can have high upfront costs. A PACE program will put these kinds of improvements within reach for families with a wider range of incomes, allowing them to save money and lower their carbon footprint as well.

Another upside to PACE is that even if a family plans to sell their home within a few years, energy improvements still make sense. The new furnace, windows, or other improvements stay with the home and continue generating savings for the new owner. The cost also stays with the property, and the new owners who are seeing the benefits of a more energy efficient home continue to pay for the improvements on their property tax assessment until they are paid for.

The other part of this win-win-win situation is economic stimulus.  There will be many local jobs created for the vendors and installers of qualifying equipment, which means the money being spent by property owners will go to companies in London to employ workers living in the city.

The City of London is currently investigating the benefits of such a program and how it could be implemented here. An ACE proposal in 2013 was passed by City Council, with staff investigating in 2014 for a planned pilot project in 2015. Several US states have made this kind of program available already. Toronto also approved a pilot program in 2013, which they call the Home Energy Loan Program, or HELP.

I have championed a PACE program at the Advisory Committee on the Environment and will continue to do so on City Council. It makes sense to provide Londoners with easier ways to improve energy efficiency at their homes and businesses, and to create a stable environment for employment in this sector. We can help people save money, create jobs, and make London an environmental leader at all at the same time.

How taxes work for you

Taxes are nobody’s favourite. Most people don’t enjoy paying them and don’t enjoy talking about them either. Doing both is important, though. Since property taxes provide the annual budget for crucial city services, Londoners need to understand how they work and so we can discuss how to make them work better.

There’s a brief video by the City of London that explains how property taxes are calculated – using the cost to provide services and the value of properties. It’s even more important to understand where this money goes. Even if you’re not a homeowner, you pay property taxes indirectly through your rent.

About 15% of your property tax bill is a provincial tax to fund education. The rest goes into the annual budget for city services. That includes everything the city provides – police, fire, and ambulance services, roads, sidewalks, transit, parks, trails, museums, recreation centres, and libraries. A breakdown of how much goes to each of those services is available on the city Web site.  Keep in mind that Ontario municipalities receive only 9% of total tax revenues, yet are responsible for over 50% of the infrastructure.

These are things we need as a city, so obviously I can’t promise to make your taxes go away if I’m elected. What I can promise is that I will consider with every decision and vote, whether the proposal at hand provides good value for taxes that Londoners pay. I also will strive to provide you with clear information on how well the city is delivering its services. The city has a responsibility to provide the services that Londoners rely on. It also has a responsibility to collect only as much in tax as it needs to deliver those services, and to do so in a fair and transparent way.

That doesn’t mean we can get rid of everything that isn’t police, garbage collection, or transit. The other parts of the city budget – things like culture and recreational facilities – are also crucial to making London a good place to live, but they need to make sense.

Part of being respectful of the taxes that Londoners pay is making sure that the city grows in a responsible and sustainable fashion. As noted in The London Plan, all growth patterns are not created equal. The more spread out the city becomes as it grows, the less efficient and the more expensive it will be to provide adequate transit, waste removal, and utility services. That means the city would need a higher tax rate to provide these required services.

On the other hand, if London grows in a more compact way – growing up rather than out in areas that can handle it, and finding infill projects that are a good match for the existing community – it will be much easier and less expensive to maintain and improve city services.

On council, I will support budgeting and planning decisions that provide Londoners with good value for the public dollar. I will work to ensure that your taxes are spent in meaningful ways that improve the city, that we take into account how we are going to provide services over the long term, and that you have access to information about how well the city is doing on both of those things.

Taxes still may not be your favourite thing, but you can have more confidence in how they are being used to build and maintain our city.