Draft 2012 City of WL Capital/Operations Budgets...

Friday afternoon - the Meeting Agenda for Tuesday's 2nd Budget Meeting for Williams Lake City Council was made available.  Please note - numbers are preliminary until Williams Lake Council makes decisions around the 2012 Capital/Operations Budgets

Find the Agenda and Budgets here

Right off the bat - I want to say that, though I'm happy with the thorough information provided, one mistake was made -- Public input should be before Council deliberates the Draft Budgets and not after - otherwise there really isn't much point of asking the public to comment at these meetings

Staff will be asking Williams Lake City Council to deliberate the following questions:

a) Revenue:

• Fees & Charges – Does Council wish to review our current fees and
charges? Does Council have specific objectives or guiding principles
for fees and charges?

• Government Transfers – Does Council wish to allocate unconditional
grants for specific purposes?

• Reserves – What should we be doing to help protect ourselves against
uncertain future? What level of reserves are appropriate for a cushion
against assessment appeals, funding cuts from senior government and
emergencies?

• Utility Rates – Does Council wish to review utility rates?

b)Expenses:

• Debt /Borrowing - Does Council wish to set a limit on the % of debt
servicing? Does Council have specific objectives or guiding principles
for incurring debt? How will upcoming projects – Western Avenue
Extension/Westside Connector (to support new residential
development), Hwy 97 North Corridor, Recreation Complex
Improvements be financed?

• Service Levels – Does Council wish to maintain current levels of
service - Increase? Decrease?

• Capital – How does Council wish to finance the maintenance and
replacement of the City’s physical infrastructure?

c) Review of 2012 Draft Capital/Operations Budgets and related matters

Personal Observations:

1) The Draft 5 Year Financial Plan should include projected tax increases for the current financial year (2012) and the subsequent four (4) years

2) Downtown Parking Tax should be discussed for elimination (Consult local BIA Board) - could help with business advantage for Williams Lake downtown core...

3) The Capital Budget Requests/Supplementary Budget Items Request Forms seems a bit "stale".  To freshen them up - it should include the City's Logo, whether they are a Priority 1, 2 or 3 & how they relate to the City's Integrated Community Sustainability Plan or ICSP and finally an estimated percentage of tax increase, if the money is coming from the General Fund (property taxation)

3) On Page 14 - I'd like to see the City move forward this year for Internet Broadcast Cameras. As City Staff note - without it, it is very difficult to get previous meetings and in addition, it'll allow people who don't necessary have SHAW TV but have an interest in WL Council business to watch meetings when their schedule allows.  This project was successful in both Prince George and Kamloops.  The best one I've seen is in Prince George where you can watch the meeting video and see the Agenda Item at the same time so you know exactly what Council is deliberating at that moment

4) On Page 15 - City Staff have asked for $50,000 for 2012 to purchase a variety of IT equipment including iPad2 tablets for Council plus 1 spare iPad2.  The question that this request raises in my mind - while the iPad's having been purchased already and are in use.. what if Council formally rejects the capital item request.  The old saying of - "Closing the barn door after the horses are gone" applies here.  I would be interested in hearing how the purchase of iPad's were done in the City's budget lines in 2011 (can not find where money was authorized to pay for iPad's in 2011) and why this request to authorize is coming forward...

5) On Page 20 - City Staff have requested a Capital Item for $55,000 for a new "First Response" Fire Truck.  While I don't dispute the need - I wonder if Staff have shopped around (including the Lower Mainland) to get a better deal.  $55,000 sounds a bit too high for a pick-up truck.  Sure - taxpayers' might want their tax money used locally but I think the higher principle of 'best use of taxpayers' $$$" applies here

6) On Page 21 - City Staff have requested a Capital Item for a replacement of the 1981 Fire Apparatus, Unit 011. Again - I don't dispute need but given this unit would be used by both City residents' & CRD Residents (Rural Fringe) for fire services - perhaps funds for this come from the upcoming City of WL-CRD Fire Services Agreement

7) On Page 26 - Station House Gallery Project.  Funds allocated as follows:

* Community Works of $160,000
* Gaming of $100,000
* Grant of $375,000

I've heard from a few who think that this project should be "paused" and I agree.  In the meantime - Council should use all Gaming money for next 3 years to put into City "Rain Day" Fund (Surplus Reserve) and top it up for next 3 years.  If that was done (assume $300,000 in Gaming Funds per year) - the Surplus Reserve would have a balance of $1,298,000 by the end of 2014 (with City Policy stating that $400,000 must remain in the account at all times)

8) On Page 29 - Instead of purchasing a new vehicle (Hybrid SUV at cost of $45,000) for a City Department Head (ie: Kevin Goldfuss/Joe Engelberts) position- why not cover a portion of his operating costs for his personal vehicle for City business.

9) On Page 41 - Electronic Speed Signs - I wonder if we can't ask "SpeedWatch" for use of their electronic speed signs instead and save taxpayers' $40,000

10) On Page 44 - Retaining Wall failure by Jelco Supplies - as Staff note - the retaining wall was constructed by the Ministry of Transportation at the time and wonder if the City should not be aggressively pursuing funds for replacement from the Ministry.  If that turns out to be a failure - then, with regret, the project should move forward...

11) On Pages 51 and 52  - Land Acquisition- Oliver Street Trailhead - I'd like to see this project deferred until 2013 and in the meantime, use the $150,000 Gaming funds for this project & put into the City's "Rainy Day" account

12) On Page 65 - Woodland Drive Water/Sewer - unless the City gets a grant of some kind for this badly needed project.  I'd like to see us either try to partner up with the Cariboo Regional District for their water system needs in the Mountview area or borrow the money ($3,500,000) via a full referendum but prior to the vote - that the "Local Service Tax Area" be established first, as per Sections 210-214 of the Community Charter - read here

13) On Pages 84-91 -- the proposed Travel Budgets for Mayor/Council are discussed.  With regard to Mayor Cook - I question the need to spend $300 in 100 Mile House for a hotel room for 2 days for the NCLGA (North Central Local Gov't Association) Conference when she can easily drive back and forth between WL-100 Mile and still save money.  $268.80 for meals for Mayor/Council at NCLGA  - Seems to be a bit high for a 2 day conference  - I personally think that this amount should be a quarter of that - more like $50 or $60 for a two day conference by finding cheaper meals...  As for UBCM (Union of BC Municipalities) - $ 600 for a 5 day conference which works out to $40 per meal seems really and I can't see how that you can't find a meal (breakfast, lunch and dinner) for saying $15-20 each.  Also note -- Had Mayor Cook and Councillors Bourdon, Walters and Zacharias had skipped the Local Gov't Leadership Academy (as they should have) - City taxpayers' would have saved $5,003.20.  Also note - City CAO Brian Carruthers' total travel budget in 2012 will be $7,886.71 with Councillors Bourdon, Hughes, Walters and Zacharias having a total travel budget of $6,071.76 with Councillors Bonnell /Rathor having a total travel budget of $4,820.96 and Mayor Cook having a total travel budget (suggested) of $12,500 with confirmed travel budget costs of $9,806.71

14) On Page 93 - Mayor Cook put in for reimbursement for a number of items including Safeway, former Beeotcheese Restaurant, Cariboo Ski, Joey's Grill, Signal Pt Restaurant, Sushi/Steak totalling $173.38.   The financial reporting structure in this case should be improved by showing date, time, location, purpose of reimbursement, whether or not Council Policy permits it to be reimbursed and who signed off on it (this applies to all members of WL Council & senior WL City Staff)

15) Bottom of Page 97/Page 98 - Luncheon and Business Meetings - A couple of noteworthy items.  $814 for appys at the Dec 6th Inaugural Meeting of Council and then $300 for a Council dinner at Ming's on Dec 29th, 2011 - no purpose given.  Many thousands of dollars would be saved if people (Committee or Council members) had to bring their own dinner to Committee/Council Meetings.  As an aside - I do not get any meal at a Cariboo Regional District APC Meeting except 1 dinner per year (if the Area Director takes their APC out for lunch/dinner) with the Director being allowed to cover a meal of $20 per attendee.

16) On Pages 104-105: City Staff levels are discussed.  As I have stated before - a number of positions should be revisited including the Communications Coordinator, Executive Assistant,, Contract Planner, Manager of Finance and Manager of IT positions.  In addition, the City should look at amalgamating the admin positions throughout the City (from the CMRC, Airport and Fire Hall) to City Hall itself.  No one likes seeing people be let go but taxpayers' are struggling and need a break - more now than ever.  In fact - just last week, I had one reader comment saying that he felt the City does not need an Executive Assistant.  In addition, the IT Manager position was once a contract position and should be so today (in my opinion).  For the record - the CAO and his Senior Managers' propose that the Staff FTE (full time equivalent) increase from 90.75 to 91.25 or an increase of 0.5 FTE all departments wide from 2011 to 2012.  Since 2008 to proposed 2012 Budget - City Staffing has increased by 2.75 FTE from 88.50 FTE (2008) to 91.25 (proposed 2012 Budget)

17) On Page 106: The City Staff Training Budgets are discussed.  Again - it would be great if the budget revealed the training plan for 2012 and if those training session are Priority 1, 2 or 3.  For the record - 2011 Actual (General Fund) was $124,180 and propose in 2012 that this increase to $163,150 or an increase of 31.4% from 2011 - Actual (estimated) to 2012 (proposed).  Total Training Budget in 2011 (Actual - all funds) is $202,099 with proposed 2012 Budget to be $212,340 or increase of 6%

18) On Page 119: Staff have proposed that, in 2012, total principal/interest on the City's debt will be $1,269,200

Final Thoughts:

Although, there are worthy projects (Capital) proposed in 2012 by Staff and whatever Councillors/Mayor Cook may propose be done in 2012 - there is certainly plenty of room to cut and yes - a 0% property tax budget is possible with required political will.  However, I'd like to see Council propose a budget with a tax hike of 1.7% or less (less than inflation and what the CRD proposed to its' residents' before new/improved CRD services).  If this was done - it would be, in effect, a "net zero" budget to residential property owners, after the home owner grant was factored in

Will it happen ... time will tell.

Again - I strongly encourage you to come out on Tuesday at 6pm and attend WL Council Chambers and after reviewing this document - should you not like what is in it - please come and tell Williams Lake City Council so they can keep your comments/thoughts in mind while preparing this year's budget as the community is being given a very unique opportunity to help WL Council craft the budget... as it was once said -- a local government budget is not simply "a budget" but the "community's budget".

Help make the City's Budget a "community budget"

SBF