Purple and White steal the night Mustangs advance to OUA finals with sweep of Laurier. >> Pg. 7
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TUESDAY, MARCH 3, 2015
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London tax hike surpasses inflation Amy O’Kruk NEWS EDITOR @AmyAtGazette
London’s newest city council has passed its first annual budget and with it comes an average 2.5 per cent property tax increase for residents. While the vote to finalize the budget was unanimous, not all city councillors think the tax rate is as trim as it could be. In addition, London will soon be moving towards multiyear budget planning and keeping tax rates low could become even increasingly difficult. The 2015 budget and 2.5 per cent increase were finalized at a city council meeting Thursday night. The tax hike means a modest raise in many Londoners’ property tax. Homeowners with a house valued at $214,000, the average value of a London home, will pay an extra $63 on their 2015 tax bill. Mayor Matt Brown said city council started with a proposed tax increase of 2.9 per cent and reduced it to 2.5 per cent after a series of four meetings. “This council worked every day to find savings and efficiencies,” Brown said in a press release. “When we began we were looking at a 2.9 per cent increase, there were a number of other projects that could have grown the increase to 3.9 per cent. Instead, because of council’s hard work, we cut it down to 2.5 per cent.” The 25 hours spent deliberating this year’s budget is in stark contrast to the 60 hours the previous city council took to debate the 2014 budget. Phil Squire, Ward 6 councillor, said he believes the difference is due to preparation. “I think this council is very well prepared, in terms of coming to the table already knowing what areas we wanted to focus on, what areas we could cut and what questions we wanted to ask,” Squire said. >> see TAXES pg.3
Kelly Samuel • GAZETTE
London not Uber thrilled Rita Rahmati GAZETTE STAFF @uwogazette
Uber, a popular crowd-sourcing mobile app that pairs riders with drivers, may be expanding its services to London — but it’s facing opposition from city officials and local taxi companies. Potential riders can download the app and use it to hitch a ride: whether it’s a taxi, private car or rideshare. In addition, users can apply to become paid drivers themselves and connect to other nearby users who are ordering trips. On their website, Uber boasts that the app provides pricing estimates, a large user base and the ability for riders to split their fare easily with friends who can use the app to conduct instant transactions. Uber currently operates in over 200 cities around the globe, including Toronto, Edmonton and Quebec City. Susie Heath, senior
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communications associate for Uber Canada, said Uber’s next stop could be Western’s hometown where an information session was held in January. “This is a part of our ongoing process to continue to explore expansion in a number of cities across Canada,” Heath said. With London’s large student population, Mike Moffatt, an assistant professor at Western’s Ivey Business School, pointed out the app could appeal to cash-strapped students. “I think it could be quite successful in London. I think you would see a lot of students use it, but I think you’d also see students who want to earn a few extra dollars become Uber drivers,” Moffatt said. While the service has its benefits, in other Canadian cities like Ottawa and Edmonton, Uber has faced issues surrounding its implementation — particularly safety, unregulated costs and by-laws.
“Our concerns are that this new technology is offering rides in an unregulated fashion. We don’t know who the drivers are, we don’t know if the cars are safe, we don’t know if there’s proper insurance,” said Orest Katolyk, city manager of bylaw enforcement and licensing. Hurur Woldemicael, office manager at Green Taxi London, added thar Uber drivers do not take the geographical test licensed taxi drivers take and could take longer routes to increase fares. As well, Uber operates based on supply and demand and when there’s high demand, they can charge enormous amounts — as was seen in New York City this past New Year’s Eve. City officials have also voiced concern that the app could create financial losses for city of London. Lost income could arise from losing brokerage licensing, payment from registered taxis or the renewal of taxi driver licenses.
In order to set up shop in London, regulations surrounding driver criminal record checks, vehicle age limitations and in-car cameras would need to be adhered to. Uber attests its function is as a sharing app and technology company, so it doesn’t necessarily need to comply with taxi bylaws. “Uber has been very reluctant to do that in other markets. That really goes against their entire business model because they argue in fact that they are not a taxi but rather that they are a sharing app,” Moffatt said. Ultimately the future of Uber in London is uncertain. “I don’t have an update to share on specific launch plans in London at the moment, I can tell you that Uber wants to be in every city around the world where current transportation options fall short of meeting consumer and driver demand,” Heath said.
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