Saturday, August 16, 2008

Municipal Finances in the Crowsnest Pass and Fiscal Responsibilty

We have a problem the state of our finances, some people think I speak too much about the Crowsnest Centre but to me the Crowsnest Centre is just a small reflection of the much larger problem we have in the Crowsnest Pass. That is understanding that government cannot do everything for everybody (whether that is individuals or groups) without there being a cost. Yes, crazy concept here we are talking about fiscal responsibility and making tough choices.

I will talk about where we came from and where we were at the end of 2007 and where we are going.

As recent as 2001 we has a Municipality had zero long-term debt at the end of 2007 we had $2,167,472 in debt and by the time we pay, it off with interest the real cost will be $2,739,249.

At the end of 2001, we had $2,963,317 in reserves broken down into the following categories:
......................................2001........................ 2007...
Administration .................$336,706................ $25,985
Emergency Services ............$200,079............... $31,376
Road ..............................$183,073................ $512,620
Sanitary ..........................$280,000 ...............$ 531
FCSS ..............................$4,911.....................$ 5,640
Land/Housing ...................$958,071 ................$493,165
Recreational Facilities ..........$310,519................ $142,582
Electrical Distribution ...........$172,000................ $2,210
Millrate Stabilization ............$517,958................ $327,392

Total...................................$2,963,317..............$1,541,501

At the end of 2007, we had reserves of $1,541,501 a drop of $1,421,816, that is significant but
it gets worse our 2008 budget allowed for expenditures of roughly $1.2 million that were funded from reserves, which is going to leave us in a position of having less than $400,000 in reserves. Believe it or not it could get even worse we agreed to purchase a new rescue truck for the sum of $213,000 to be paid for with the monies received from a GST refund, the Federal Government appealed that refund if we lose that appeal the rescue truck will be paid for out of reserves now will be down to less than $200,000.

Now comes the really tough part besides the fact that we will have nothing left in our reserves, to maintain the same level of expenditures in 2009 where do we get the $1.2 million from. Taxes this year increased on average 12% are our taxpayers willing to do that again? Alternatively, are they going to demand that we become fiscally responsible and make tough decisions? We did not get to where we are today by accident!

3 comments:

John Prince said...

Knowing you, I suggest you have used facts and figures no one could argue with, and in doing so, you have painted a picture in my mind at least, of fiscal and economic irresponsibility by our mayor. I say our mayor, because councilors’ have come and gone, but the leadership has remained the same, over recent years.

The bottom line is, we as a community are broke, and in debt, and your argument is your hands are tied because of this. Done deal, no way around it!

I disagree with your assessment of the latter part of your argument (i.e. your hands being tied), and with your position from a previous post in which you state your belief in bringing change to the ‘Pass , ‘one issue at a time’ e.g. The Centre (One Councilor’s response to issues in the Crowsnest Pass).

As I told you over coffee one day, what good does it do a man to win all the battles, only to lose the war? Until you deal with the real cause of our social, fiscal and economic problems in the ‘Pass, you will never win the war. (You may win some battles, but not the war!) Until you address the ‘root cause’, nothing material or substantive will really change. This is something you refused to deal with in your above quoted blog post (in a very weak and nonconfrontational, I may ad, response to my earlier posts), and something you continue to not address in your posts, since. You and your fellow councilor’s run away and hide, instead of showing real leadership, by taking the bull by the horns and wrestling control away from the tyrant, who takes much, but gives little. (In this regard, I challenge anyone to look around our community and point to anything (above ground) that could be said to be a legacy from our current mayor. You will find absolutely nothing!)

This community has what it has (debt, stagnation, reliance and dependency solely on ‘residential’ property taxes (resulting, in a ‘certain’ future of ever increasing taxation)), and is where it is, because no one is rising to the occasion to plug the hole in the dyke. You continue to be ‘led’ like the children in the fable of the Pied Piper, to ever more indebtness, by a leadership lacking both a vision and a plan. And you all do nothing about it! Except, some of you go on vacation, while others tell us their hands are tied, while still others, bury their collective heads in the sand. That is not leadership! That is servitude!!! As members of council, you all are serving, but who is stepping forward to lead? This is what the people want to know. This is what I want to know.

If some of you think you can just sit on your key-stirs until the next election, you will be both holding this community back, and may have a surprise in store for you, when that time comes. As many people in this community are getting sick and tired of the same old, same old. We want to see 'real' leadership with vision and an action plan, for turning our community around.

Again, that won’t happen until you, as a council, deal with the ‘root cause’ of our community’s biggest problem – its lack of real leadership! Someone has to step up to the plate! Will it be you? Will it be Gary? Will it be both you and Gary? (Now, there is an idea!), or will it be someone else??? Time will tell!


note: I could have put this post on my blog, but unlike some of you, I am not afraid to post to other people's blogs... and be counted!



The ideal life is one full of problems, but with the knowledge of how to solve them.

Crowsnest Pass Home said...

The facts are from the municipal financial statements available on the municipal web site.
I'm not saying for a second that our hands are tied, I'm saying that we have to get our financial house in order (as I have for 4 years)
You can't win a war without winning battles.
And I promise you that over the next six months "all" councilors will have a chance to stand and be counted. Or keep playing follow the leader!
As far as working with other councilors I'm prepared to work with any councilor that's prepared to "step forth" and do what's best for this community.
No I don't have any interest in working with somebody that votes the way they do because it keeps the hope of the present old boy's club supporting them in past, present, and future political ambitions.

John Prince said...

Just got back from a wedding party, so I'm feeling a little 'tipsy', but also feel like talking. So here is what I have to say… straight from the heart! :-)

First, how do you get your financial house in order when you have a mayor getting you deeper in debt, as the months and years go by, while at the same time eating up your reserves. Therefore, my comment about 'plugging up the dyke'.

Second, ... you can't win a war without winning battles... Oh yes, you can! Check out the history of Alexander and his conquest of Persia. The brave man, when faced with overwhelming odds, always goes for the bully, and by taking him out wins the respect and admiration of his peers, and of a grateful citizenry. People realize the blood will flow again (like a much needed transfusion), whereas it has been clotted and stagnant for so long. It is a breath of fresh mountain air… at last!... at least that happens sometimes. No guarantees. But that is what Alexander did, and by doing so, conquered an empire. Today, he still lives in the history books. He chopped off the head of the despot, and by doing so avoided many battles, and won the war.

Thirdly, this war you and Gary have going, isn’t going anywhere. You are both hurting each other and this community that I know you both care so much about. There is an old saying, “In a friend one should have one’s best enemy." You both are your worst enemy when you could be the best of friends, again. If you just TRY!

Like Lennon said,

“All we are saying is give peace a chance
All we are saying is give peace a chance”