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Budget 2008
Update: Wednesday, March 19,2008
At the finance meeting on Tuesday, council presented budget reduction figures for the 2008-2012 financial plan based on recommendations from a council sub committee which was composed of myself (as chair), Councillor Lahti and Mayor Trasolini.
The reductions , endorsed by council and forwarded to the finance committee , totaled $ 752,000 which represents roughly a 3.45 % reduction bringing our proposed 2008 tax increase to 3.51%. This amount may vary slightly over the coming weeks as the budget is finalized.
Council worked very hard to ensure the wishes (and demands) of the residents for our city were incorporated, and to protect our core / 'front line' service delivery and staff. We evaluated the budget, and the city organizational structure, based on the feedback we received, and we believe we found efficiencies that reflect the desires of the community for sustainable taxation and providing the service levels expected.
We have significant increases in the budget this year for Police and Fire Protection services, which have been identified as priorities by Port Moody residents, and we remain dedicated to keeping Port Moody a safe, livable community. We have directed both departments to find efficiencies that do not affect uniformed members, as we have directed other city departments to find efficiencies. Several departments have previously provided suggestions, and we know these can now be implemented given the direction from council.
We have heard repeatedly that residents expect responsible financial management, and also that they value the high level of service delivered by city staff in our Parks and recreation department, our Utilities crews, and all of our city services.
We have identified opportunities for re-alignment of some positions within the city, particularly 'internal' positions, that would not significantly impact the service levels to residents. We have done this recognizing that council priorities needed to be considered and amended to reflect the changes we are bringing forward. Obviously, council has had to pull back on some of our priorities in recognition of the cost implications related to some of our strategic goals, and we have incorporated that into our plan. We believe that this provides a solid foundation in our budget for future councils, and we have avoided any measures to 'offload' taxation into future years.
We have, over the past couple of days, received very positive feedback from residents , and we are very happy that we have been able to accomplish this minimizing the effect on the employment of existing employees of the city, who work hard on behalf of all of us, every day. We have reduced the funding of two vacant positions, two staff positions and 1 auxilliary function.
Port Moody has seen rapid growth, and with growth, there are always some 'growing pains', and I think at this time we have addressed some organizational issues that will allow the city to continue moving forward in a financially responsible and sustainable manner. Likely, the budget process for 2009 won't be much easier than it is for 2008, but we believe that we have made changes that balance service delivery with taxation levels in a responsible manner, and lay the ground work for future budgets.
There is no doubt in my mind that ever increasing infrastructure deficits and increasing responsibilities in areas previously funded under other levels of government, will dominate municipal finance issue in the years ahead. I personally believe, and am very concerned, that this issue is going to consume municipal governments over the next 5-10 years, and we need to address this through a fundamental change in taxation 'policy' in this country. This will require strong leadership from future council's , and the changes we have made this week, will make that process easier.
The city is currently reviewing the budget for 2008, and the 5 year 2008-2012 Financial Plan.
At January 15,2008 the draft budget has a projected tax increase for 2008 of 8.5%, and a utility rate increase of 9%. The city is facing increased costs for EVERYTHING , including materials, fuels, energy costs, labour, etc , and the costs associated with the continued hiring of fire-fighters to achieve the goal set out in the Fire Dept master plan from 2005, and increasing police officers to combat the ever increasing crime prescence in our area.
The main influences on the 2008 budget:
- Union contract salary increase: 3 %
- Fire Department: 3 %
- Police Department: 3 %
- Tax growth: - 3.1 %
2008 BUDGET SURVEY ! Please complete my online survey on taxation !
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