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City council awaits efficiency review report
Efficiency review flows into 2010 budget process
by Laura Walz | editor@prpeak.com
City of Powell River council is waiting for a staff report on an efficiency review that has been underway since the summer.
Councillor Chris McNaughton, chair of the October 15 committee-of-the-whole budget meeting, pointed out there was a commitment to have a report about the efficiency review plan by the end of September and it was by then October. “The whole efficiency initiative does flow into our budget initiative,” he said.
Council approved the terms of reference for an efficiency review in July. The target of the review is to maintain or increase service levels and achieve overall cost reductions or efficiency increases up to three per cent.
Dave Douglas, director of financial services, said that he, Stan Westby, chief administrative officer, Barbra Mohan, manager of human resources, and the president of CUPE (Canadian Union of Public Employees) Local 798 had been “globally looking at the plan” and identifying efficiencies that can be achieved. As well, managers have been talking to staff about efficiencies that can be made in each department. Those efficiencies are reported back up to the committee-of-four, Douglas said.
Councillor Dave Formosa said he thought the process would work differently. He thought two people from each department would recommend efficiencies, then those recommendations would be reviewed by other members of the department and managers.
Mayor Stewart Alsgard referred to the terms of reference for the efficiency review and reminded councillors that council had approved the document.
“It’s a matter of delivery,” said Formosa. “You can write down whatever you want.”
Councillor Maggie Hathaway said she thought council was getting bogged down and overloaded by things that were not its job. “Our function is probably going to have to do that big slash and reduction that we’re going to have to do,” she said. “I don’t want to get involved in details that aren’t part of our mandate.”
Council needed assurances, McNaughton said, that staff were intimately involved in the process. The plan was to have a report by September, McNaughton also said, and council needs that report.
Douglas said he would discuss the efficiency review with Westby, who was away at the time.
The budget process has been refined, with department heads preparing budgets with the same level of service as in 2009. Meanwhile, council has initiated a public consultation process. In the end, council will make the decision about the 2010 budget, taking into consideration public input, any staff efficiencies that have been identified and the department budgets.
Formosa promoted the idea that department heads also prepare a budget that shows a 12-per-cent reduction, reflecting the 12-per-cent reduction in the city’s tax revenues due to Catalyst Paper Corporation not paying its total tax bill. But Douglas said that process would not be efficient and not every department would have to be cut by 12 per cent.
Councillor Debbie Dee asked if groups like PRREDS (Powell River Regional Economic Development Society) and Tourism Powell River will be asked to cut their budgets by 12 per cent as well. Formosa said those groups are aware of the revenue shortfall.
Councillor Chris McNaughton, chair of the October 15 committee-of-the-whole budget meeting, pointed out there was a commitment to have a report about the efficiency review plan by the end of September and it was by then October. “The whole efficiency initiative does flow into our budget initiative,” he said.
Council approved the terms of reference for an efficiency review in July. The target of the review is to maintain or increase service levels and achieve overall cost reductions or efficiency increases up to three per cent.
Dave Douglas, director of financial services, said that he, Stan Westby, chief administrative officer, Barbra Mohan, manager of human resources, and the president of CUPE (Canadian Union of Public Employees) Local 798 had been “globally looking at the plan” and identifying efficiencies that can be achieved. As well, managers have been talking to staff about efficiencies that can be made in each department. Those efficiencies are reported back up to the committee-of-four, Douglas said.
Councillor Dave Formosa said he thought the process would work differently. He thought two people from each department would recommend efficiencies, then those recommendations would be reviewed by other members of the department and managers.
Mayor Stewart Alsgard referred to the terms of reference for the efficiency review and reminded councillors that council had approved the document.
“It’s a matter of delivery,” said Formosa. “You can write down whatever you want.”
Councillor Maggie Hathaway said she thought council was getting bogged down and overloaded by things that were not its job. “Our function is probably going to have to do that big slash and reduction that we’re going to have to do,” she said. “I don’t want to get involved in details that aren’t part of our mandate.”
Council needed assurances, McNaughton said, that staff were intimately involved in the process. The plan was to have a report by September, McNaughton also said, and council needs that report.
Douglas said he would discuss the efficiency review with Westby, who was away at the time.
The budget process has been refined, with department heads preparing budgets with the same level of service as in 2009. Meanwhile, council has initiated a public consultation process. In the end, council will make the decision about the 2010 budget, taking into consideration public input, any staff efficiencies that have been identified and the department budgets.
Formosa promoted the idea that department heads also prepare a budget that shows a 12-per-cent reduction, reflecting the 12-per-cent reduction in the city’s tax revenues due to Catalyst Paper Corporation not paying its total tax bill. But Douglas said that process would not be efficient and not every department would have to be cut by 12 per cent.
Councillor Debbie Dee asked if groups like PRREDS (Powell River Regional Economic Development Society) and Tourism Powell River will be asked to cut their budgets by 12 per cent as well. Formosa said those groups are aware of the revenue shortfall.
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overtaxed wrote on Nov 5, 2009 9:15 AM:
" 12% departmental reduction of Staff budgets should be a directive with repercussions if not accomplished. Time to STAND YOUR GROUND, AND TAKE BACK CITY HALL. !! " "
overtaxed wrote on Nov 5, 2009 12:37 PM:
" From the Province
While taxpayers feel the pinch, B.C.'s free-spending municipalities have been expanding their belts.
A report to be published today by the Canadian Federation of Independent Businesses shows that between 2000 and 2007, operating spending rose nearly 44 per cent at B.C. municipalities, while inflation and population growth increased by only 25 per cent.
Fully 129 of B.C.'s 153 municipal governments increased their operational spending at rates that exceeded what would be needed to keep up with inflation and population growth, says the report.
"That kind of spending is disrespectful to taxpayers," CFIB vice-president Laura Jones said Wednesday. "And it's really out of touch in this economic climate." The report found that Prince George's spending rose at 2.89 times the rate of inflation, the worst among large cities of over 25,000.
Twelve of B.C.'s largest municipalities spent at a rate more than double what could be justified by their growth in population and inflation.
Among the worst offenders were West Vancouver, the District of North Vancouver, Port Coquitlam and Coquitlam.
And West Vancouver held top place for the second year running as the biggest-spending big city in B.C. on a per-capita basis. It spent $1,972 per person, and also shared the honours for the highest spending growth, at 2.8 times the rate of inflation and population growth.
Vancouver came in with spending 1.57 times the rate of inflation and population growth, Victoria was 1.8 and Surrey 1.77.
Vancouver Mayor Gregor Robertson said he was not surprised by the findings.
"The recession has shown that city budgets increased at an unsustainable pace in recent years," said the mayor of B.C.'s biggest city.
"We're facing a $60-million budget gap and cutbacks in Vancouver because spending increased year after year and now revenues have dropped off," he said.
Robertson said it's important to remember the amount of downloading that has taken place on cities from the federal and provincial governments in recent years.
"But remember that cities manage only eight per cent of the tax base and are saddled with downloading — provincial and federal investment in infrastructure and their key responsibilities haven't kept pace with the core needs.
"Affordable housing, child care, transportation: All of these are more and more on the backs of municipalities, and current spending reflects that. These are crucial services to the health and well-being of our cities and we can't simply ignore them." The report found that only 24 of B.C.'s 153 municipalities representing just 2.8 per cent of B.C. residents kept spending within population growth and inflation.
And it's not getting much better.
The second annual B.C. Municipal Spending Watch report shows that local governments are not getting the message about fiscal prudence. Between 2006 and 2007, 92 of B.C.'s 153 municipalities widened this spending gap, while 61 narrowed it.
To cover the shortfall, municipalities have increased their revenues by 62 per cent over the seven-year period, to fund growth in operating and capital spending.
Property taxes have risen 62 per cent, user fees increased 95 per cent, and transfer payments from senior government shot up 121 per cent over the same period.
If local spending had been kept in check, the report says, people and businesses would still have $572 million in their pockets in 2007.
And property taxes would have been 14-per-cent lower.
"The conclusion is clear — municipalities have to get a lot more serious about keeping costs under control or our taxes are going to keep rising faster than our ability to pay for it," Jones said.
Spending on operations just keeps going up, the report shows.
In 2007, spending per municipal resident was $1,142 in cities over 25,000, compared to $1,088 the year before.
The CFIB says 60 per cent of the typical municipal budget goes on salaries, which is the main driver behind higher taxes and fees.
"Given the current economic picture, you would think that municipalities would control their spending," said Jones. "Unfortunately, that does not seem to be the case." A survey of its 10,000 members found that most small businesses are demanding limits on municipal spending.
The report calls on B.C. to follow the lead of Ontario and Alberta, and hire a municipal auditor-general for B.C. to make local governments more accountable.
A whopping 85 per cent of small businesses want regular audits of public spending by civic authorities. They also want municipal spending capped to hikes no greater than population and inflation growth.
Some 55 per cent blame property tax as the most harmful tax to their businesses.
But that's not stopping the City of Vancouver, which next year is looking at raising property taxes 4.8 per cent, and another five per cent in 2011, just to cover its pay increases.
"The No. 1 thing they need to do is keep municipal wages in line with the private sector," said Jones, adding government workers receive 35 per cent more in wages and benefits from similar workers in the private sector.
Two-thirds of businesses said local governments should focus on core services, and not provide services outside their jurisdiction.
The Canadian Taxpayers Federation agreed with the report's findings.
"This very clearly shows that the provincial government must step in and cap property-tax rates," said Maureen Bader, the group's B.C.
director.
"Spending is out of control. And the only way to bring it under control is to stop municipalities from just raising property taxes at will." "
While taxpayers feel the pinch, B.C.'s free-spending municipalities have been expanding their belts.
A report to be published today by the Canadian Federation of Independent Businesses shows that between 2000 and 2007, operating spending rose nearly 44 per cent at B.C. municipalities, while inflation and population growth increased by only 25 per cent.
Fully 129 of B.C.'s 153 municipal governments increased their operational spending at rates that exceeded what would be needed to keep up with inflation and population growth, says the report.
"That kind of spending is disrespectful to taxpayers," CFIB vice-president Laura Jones said Wednesday. "And it's really out of touch in this economic climate." The report found that Prince George's spending rose at 2.89 times the rate of inflation, the worst among large cities of over 25,000.
Twelve of B.C.'s largest municipalities spent at a rate more than double what could be justified by their growth in population and inflation.
Among the worst offenders were West Vancouver, the District of North Vancouver, Port Coquitlam and Coquitlam.
And West Vancouver held top place for the second year running as the biggest-spending big city in B.C. on a per-capita basis. It spent $1,972 per person, and also shared the honours for the highest spending growth, at 2.8 times the rate of inflation and population growth.
Vancouver came in with spending 1.57 times the rate of inflation and population growth, Victoria was 1.8 and Surrey 1.77.
Vancouver Mayor Gregor Robertson said he was not surprised by the findings.
"The recession has shown that city budgets increased at an unsustainable pace in recent years," said the mayor of B.C.'s biggest city.
"We're facing a $60-million budget gap and cutbacks in Vancouver because spending increased year after year and now revenues have dropped off," he said.
Robertson said it's important to remember the amount of downloading that has taken place on cities from the federal and provincial governments in recent years.
"But remember that cities manage only eight per cent of the tax base and are saddled with downloading — provincial and federal investment in infrastructure and their key responsibilities haven't kept pace with the core needs.
"Affordable housing, child care, transportation: All of these are more and more on the backs of municipalities, and current spending reflects that. These are crucial services to the health and well-being of our cities and we can't simply ignore them." The report found that only 24 of B.C.'s 153 municipalities representing just 2.8 per cent of B.C. residents kept spending within population growth and inflation.
And it's not getting much better.
The second annual B.C. Municipal Spending Watch report shows that local governments are not getting the message about fiscal prudence. Between 2006 and 2007, 92 of B.C.'s 153 municipalities widened this spending gap, while 61 narrowed it.
To cover the shortfall, municipalities have increased their revenues by 62 per cent over the seven-year period, to fund growth in operating and capital spending.
Property taxes have risen 62 per cent, user fees increased 95 per cent, and transfer payments from senior government shot up 121 per cent over the same period.
If local spending had been kept in check, the report says, people and businesses would still have $572 million in their pockets in 2007.
And property taxes would have been 14-per-cent lower.
"The conclusion is clear — municipalities have to get a lot more serious about keeping costs under control or our taxes are going to keep rising faster than our ability to pay for it," Jones said.
Spending on operations just keeps going up, the report shows.
In 2007, spending per municipal resident was $1,142 in cities over 25,000, compared to $1,088 the year before.
The CFIB says 60 per cent of the typical municipal budget goes on salaries, which is the main driver behind higher taxes and fees.
"Given the current economic picture, you would think that municipalities would control their spending," said Jones. "Unfortunately, that does not seem to be the case." A survey of its 10,000 members found that most small businesses are demanding limits on municipal spending.
The report calls on B.C. to follow the lead of Ontario and Alberta, and hire a municipal auditor-general for B.C. to make local governments more accountable.
A whopping 85 per cent of small businesses want regular audits of public spending by civic authorities. They also want municipal spending capped to hikes no greater than population and inflation growth.
Some 55 per cent blame property tax as the most harmful tax to their businesses.
But that's not stopping the City of Vancouver, which next year is looking at raising property taxes 4.8 per cent, and another five per cent in 2011, just to cover its pay increases.
"The No. 1 thing they need to do is keep municipal wages in line with the private sector," said Jones, adding government workers receive 35 per cent more in wages and benefits from similar workers in the private sector.
Two-thirds of businesses said local governments should focus on core services, and not provide services outside their jurisdiction.
The Canadian Taxpayers Federation agreed with the report's findings.
"This very clearly shows that the provincial government must step in and cap property-tax rates," said Maureen Bader, the group's B.C.
director.
"Spending is out of control. And the only way to bring it under control is to stop municipalities from just raising property taxes at will." "
overtaxed wrote on Nov 6, 2009 12:48 PM:
" Cupe should be for maintenance only not capital projects . Stimulus money should be there to create new jobs in the private sector where the money goes further .
I can't believe council appears to be supporting this motion below .
If so we need recall legislation or something !!!!
7:48
CUPE Local 798 would like to see a provision to allow city staff to work on federal government projects that are funded through stimulus money. A letter has been written to MP John Weston asking that city crew be allowed to work on both the pavement management project and the upgrade to the water system.
7:49
Palm is reading from the letter, which was written by Don Krompocker, a CUPE member. The letter basically asks that the rules are changed.
7:50
Palm is making a motion to send a letter to Weston, supporting CUPE's concerns about city crews not being allowed to work on projects funded by federal government stimulus money.
7:50
The motion carries unanimously. "
I can't believe council appears to be supporting this motion below .
If so we need recall legislation or something !!!!
7:48
CUPE Local 798 would like to see a provision to allow city staff to work on federal government projects that are funded through stimulus money. A letter has been written to MP John Weston asking that city crew be allowed to work on both the pavement management project and the upgrade to the water system.
7:49
Palm is reading from the letter, which was written by Don Krompocker, a CUPE member. The letter basically asks that the rules are changed.
7:50
Palm is making a motion to send a letter to Weston, supporting CUPE's concerns about city crews not being allowed to work on projects funded by federal government stimulus money.
7:50
The motion carries unanimously. "
Zorball wrote on Nov 4, 2009 8:30 PM:
Council should act on some of the new and refreshing ideas they have voiced.
Shame on them for caving on the SPCA, the efficiency review and the 12% departmental reduction of Staff budgets.
I hope councillor Pinch will continue to press for a "Flat Tax" review and work to eliminate it.
We voters with an appetite for change and results elected a whole team of new councillors in last years election.
Please, for us, STAND YOUR GROUND, AND TAKE BACK CITY HALL. !! "