Simplest of Questions

I know I have touched on this issue previously, but its important enough to talk about it some more.

I was asked a question on the weekend by a municipal employee.

It was phrased this way: "How can two councils be so different, last year all we heard was the municipality had no money, then this year we hear that we are getting five more employees and a bunch of new equipment"

Simple question with a simple answer.

The municipalities reserves had been significantly depleted by infrastructure over the last 5-6 years. Last year council determined it made sense to not increase the number of employees but to put money back into reserves. ($450,000)
Previous council knew that the municipalities equipment fleet was old and needed to be replaced, so for the last five years was putting money into new equipment. ($250,000)

So now you come to 2011 its not like the municipality suddenly got wealthy, in the paragraph above there is $700,000 accounted for. So if you took a different approach and dispersed that money in different ways, lets say $3-400,000 in wages.
$120,000 to make a payment on the $560,000 debt to buy new equipment. The balance to pay for any other additional costs to offset a 0% tax increase.

Again its not like the municipalities financial situation got better, it would be no different than a couple saying we are not going to pay our mortgage this month or put any money in savings because we are going on a holiday, when we get back we will go out and finance a brand new truck. Short term appearance to the rest of the world is that you are doing very well.

Moving forward how does the municipality pay that $3-400,000 per year in wages year after year plus the $120,000 payment on its new debt. Plus will there be no further requests for new equipment next year? and eventually those reserves do have to be replenish at some point.

Special Council meeting "as the die been cast?"

Not trying to confuse anybody but there is a G+P meeting on January 25, 2011.
First of it struck me as strange that at the meeting of January 18, following a one hour debate on the budget. With a lot of questions asked by council, and administration indicating that they would bring those responses forth at the meeting of Jan 25 that they wouldn’t just add the budget to the G+P agenda.
After all, they left Jan 18 still sitting at 5.3% (which means in simple terms an extra $365,000 a year coming out of the taxpayers pockets).

In my mind I felt Administration would come back on the 25th with clarification to the councilors concerns, pull all the give me’s out of the budget. (Item’s that the admin team would like to have, but understand that to keep what they really want, they will have to sacrifice during the final strokes of the budget process to make the politicians look good).

Then I got to thinking maybe the “die as already been cast”, Councilor Saje will not be at the meeting of Feb 1st, if the budget was on the G+P meeting agenda then no motions could be past.

Therefore, what happens Jan 25, in my humble opinion?

Administration brings forth $200-250,000 in “give me’s” carpet in the office; reduce two casuals, float, storage shed for the Hillcrest Fire Department etc, etc. Council digs in there heals a little bit understanding that there will be a negative public reaction to all the new jobs being created, so a couple of them get chopped, in addition the evil water meters go back for further study.

Some councilors will suggest that a few dollars need to be put aside for new initiatives (marketing the community, looking at new facilities) the argument will be made that more time is needed, to review the municipalities services and facilities, wait for the recommendations of the economic task force .
Therefore, council in conjunction with administration will be more than willing to look at those issues next budget.

Then the majority supports a 1-2% budget with much bigger and better things to come next year.

I have been asked how does the municipality find the money to pay for all these new positions, keep in mind that last year council at that time did not allow the new positions which saved approximately $250-300,000.

The previous two councils had taken a position that each year they would put $250,000 aside to replace the aging equipment fleet; the present budget proposes to take on debt of over $500,000 to finance equipment. Where did the $250,000 go? Look at the new positions.

Anyway I may be wrong and if I am that’s Ok, I maybe off on my timing. But I look forward very much to seeing who takes what positions.

And much more importantly who proposes real “change”.