Ancaster councillor Murray Ferguson is proposing that taxes, water rates, bus fares and other city fees be raised by 1% to create a fund to subsidize those people who can't afford such increases. He floated the idea in a free-wheeling discussion at Wednesday's meeting of the Strategic Planning and Budgets committee.

" I propose that we set aside 1% of all funds received by the city, including taxes, water, ice rental rates, HSR fares," he said, "any money the City takes in except Planning and Development [fees] because they're meant to be a cost recovery."

Ferguson sees this as a way to eliminate a major argument against tax and fee increases. "Every year at budget time we're confronted with affordability issues," he noted, but with his proposal he argued "that way when it comes to setting any rate, affordability is out of the question, off the table, out of the equation." A means test would be used to determine who is eligible for subsidies.

He cited bus fares, ice rental fees and various charges affecting seniors as areas where increases are needed but have been blocked in the past by objections about affordability.

The proposal was endorsed by Sam Merulla who said "such an endeavor would be very progressive" and would make Hamilton a leader across North America. Glanbrook councillor Dave Mitchell was also enthusiastic, seeing this as a way that Hamilton "could charge fees that are comparable to other cities".

Mountain councillors Tom Jackson and Terry Whitehead were more cautious. Jackson pointed to uncertainty about whether the city's previous efforts in this direction were effective. The council allocated $500,000 to several support programs in the summer of 2003, but city treasurer Joe Rinaldo noted "it was used up in the very same year".

Whitehead picked up on this theme, expressing concern about whether the city "can have a large enough fund to accommodate the vast plethora of services and activities in this community".

About a quarter of Hamilton's population is currently below the federal poverty line. One percent of city taxes and fees would create a fund of about $7 million, or about $60 for each Hamiltonian living in poverty. The full discussion on Ferguson's proposal is available here on the CATCH website.