Image Credit: CFJC Today / Adam Donnelly

By James Peters

Two and Out

PETERS: Why local governments should not be run like businesses

Aug 2, 2024 | 12:30 PM

SOME SAY A GOVERNMENT like The City of Kamloops should be run like a business.

Many a businessperson has found out, though, how that doesn’t work very well.

For example, the type of long-term borrowing for major capital expansion, such as this government is contemplating right now, would raise major red flags in business.

The city wants to borrow hundreds of millions of dollars to build a performing arts centre and a multi-sheet iceplex — and that’s just Phase 1 of the plan.

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Ownership or shareholders would be hard-pressed to move forward on a project that would cost so much in the short term — even in debt-servicing costs — with a promise of long-term payoff.

The business would quickly find itself over-leveraged.

But this is government, which has access to far more attractive interest rates than a business might find at the bank.

Not only that, its interest is not simply return on investment.

The city should be wise with taxpayer dollars, but its interest is providing services for its citizens — not the profit motive.

Reid Hamer-Jackson, who has a long career in the automobile business, is learning another difference between business and government right now.

In business, power is quite linear. The owner or the boss has the bulk of the power. The further down the employee ladder you are, the less power you have.

In local government, it’s far more complicated.

Power is shared among all nine on council and is afforded by the citizens who voted them in. One individual cannot make much happen at all.

The mayor cannot simply say, ‘I’m the mayor of Kamloops’ and expect fealty. It’s more stickhandling and passing than it is slapshots and bodychecks.

It’s politics. That’s why we call them politicians.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or Pattison Media.