Press Release from the CFIB:
For the first time in ten years, there are signs that some B.C. municipalities are recognizing the need to get spending under control. Nonetheless, municipal spending continues to outpace the responsible benchmark of population growth plus inflation. The latest report from the Canadian Federation of Independent Business (CFIB) analyzes data from 2000 up to 2010.
“It’s a bit like driving off a cliff, but slowly,” said Laura Jones, executive vice-president, CFIB. “It’s certainly a good idea to apply the brakes, but we’re still getting closer to the edge. We like to give credit where it’s due, however, there’s a limit to our optimism.”
Had spending simply kept pace with population and inflation from 2000-2010, British Columbians would have saved $4.26 billion, or $4,251 for a family of four. Instead, B.C.’s real municipal operating spending increased by 49%, nearly four times the growth in population. When adjusted for inflation, spending increased by just one per cent from 2009 to 2010, down from seven per cent between 2008 and 2009
“One year of relatively good behaviour is a promising sign, but it’s much like the early days of a diet – it really could go either way and only time will tell,” said Jones.
B.C.’s Lower Mainland turned in a mixed performance between 2009 and 2010, with several of the larger municipalities demonstrating an improved commitment to fiscal discipline. Chilliwack, Burnaby and Surrey topped the “Most Improved” category when rated according to per capita spending over that period. By contrast, communities further east and north – such as Abbotsford, Pemberton, and the two Langley jurisdictions – turned in the most disappointing performances. Abbotsford per capita spending increased by close to 30 per cent.
To finance the spending increases from 2000-2010, municipal taxes increased 69%, government transfers increased 273% and revenues from sales of services like parking and licenses increased 135%.
CFIB’s B.C. Municipal Spending Watch report is in its fifth year. Small business owners have a particular interest in municipal spending as studies show that they bear a disproportionate share of the municipal tax burden. This year’s report excludes the cost of policing, which is paid by municipalities, but is largely out of the control of municipal decision-makers.
Meanwhile - CFIB reports that in the Kootenay/Cariboo-Chilcotin-Coast region - Williams Lake was the 3rd worst municipal spending being ranked #40 of 153 municipalities surveyed with only New Denver and Slocan ahead of Williams Lake and New Denver/Slocan do have smaller populations/tax base than Williams Lake
For all municipalities within the Cariboo-Chilcotin:
Municipality
|
Real Operating Spending Growth between 2000-2010 (%)
|
Pop. Growth between 2000-2010 (%)
|
Real Operating Spending Growth, per capita (%)
|
Overall Provincial Rank (#1 as Worst with #153 as Best)
|
Wells
|
34
|
16
|
15
|
47
|
Quesnel
|
10
|
-5
|
15
|
111
|
Williams Lake
|
42
|
-6
|
51
|
40
|
100 Mile House
|
15
|
5
|
10
|
72
|
The CFIB has recommended the following:
1. Municipal operating spending increases be limited to the rate of population growth and inflation.
2. In all cases, core services must be identified and core service reviews conducted to ensure effective fiscal management.
3. Public sector compensation should be aligned with the private sector. British Columbia currently has a gap between these sectors of 35.1%, combining wages and benefits.
4. All municipalities support the mandate and abide by the recommendations of BC’s new Municipal Auditor General. CFIB is encouraged that the provincial government has followed through on its commitment to create an independent office of Municipal Auditor General, as recommended in previous iterations of this report. However, the success and effect of this new office will rely on the cooperation and recognition of municipal governments. Therefore, we urge municipalities to commit to working constructively with the Municipal Auditor General to reverse the unsustainable spending trends demonstrated in this report
Williams Lake City Council is on record supporting the Municipal Auditor-General. I'll be looking to see how Williams Lake City Council and their Staff respond to this latest report by the CFIB
Source Documents:
1) Kootenay-Cariboo-Chilcotin-Coast - view here
2) CFIB Municipal Spending website here
3) CFIB Muncipal Spending technical background here
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