Layoffs out as Penticton council looks for budget cuts

JOHN MOORHOUSE Wednesday, January 21, 2009 Penticton Herald:

Penticton city council has backed off a proposed 10 per cent budget cut -- and is now looking to its employees for suggestions on saving money. Close to 100 city workers crowded into council chambers Monday night, amid fears many of them could be losing their jobs in the budget crunch. However, instead of a 10 per cent cut, council unanimously agreed to seek “reasonable reductions, added efficiencies and new revenue sources” in its 2009 budget deliberations while maintaining or enhancing 2006-07 service levels. Suggestions that from 30 to 50 jobs could be lost were refuted by Coun. John Vassilaki, who brought forward the 10 per cent reduction proposal following presentation of the draft budget earlier this month.

The draft budget, which has yet to be debated by council, includes a proposed 2.37 per cent tax increase to cover debt expenses, while trimming various operating expenses including a $390,000 cut in labour costs. Vassilaki said he is well aware his call for a dramatic budget reduction was probably unrealistic. He called for greater efficiencies in all city departments, rather than layoffs. “It burns my backside that no attempt was made by senior staff and other management to really look at practical ways to reduce the 2009 budget other than decreasing staff,” Vassilaki said. Mayor Dan Ashton said these are unprecedented times and the budget reflects that fact. He noted all city staff members were sent e-mails this week asking for budget suggestions, with further opportunity for public input as well.

One of the first to comment was Mark Billesberger, a laid-off city public works labourer. In a prepared address to council, Billesberger supported questioned the city‘s current ratio of managers to working staff. There are currently 30 managers for approximately 240 city workers. “It is my position that there is no need for this many managers to effectively run the city,” he said. He suggested by cutting 10 managers at a median salary of $75,000, the city could save $750,000 a year. Billesberger also supported calls to revise city policy regarding the sale of used city vehicles and suggested the city only replace vehicles when repair costs become unreasonable. “These vehicles are kept in tip-top running condition by our team of crack mechanics,” he said. “Most of these vehicles that are being traded in have absolutely nothing wrong with them.”

Coun. Garry Litke said he thinks council‘s budget process was backwards, starting with a proposed slash, rather than assessing the city‘s needs first and then determining what it can afford. Litke said council should get ready for the federal budget, which some say could provide grant money for “shovel ready” municipal projects. “We were elected to provide service to this community,” he said. “Not to throw inflammatory ill-considered thoughts out into the community that do create division and in my view, a lack of productivity while everybody is concerned about the rumours that are out there.” Patti Finch, president of CUPE Local 608, said council‘s decision to back off the 10 per cent budget cut comes with great relief. “It‘s a lot easier to think of ways to help save the city‘s money, when we‘re not worried about our own pocketbooks,” she said. Coun. Mike Pearce said he believes council will eventually settle on some sort of tax increase. He pointed to a request for additional firefighters, plus negative reaction to a proposed cut in the Penticton RCMP detachment. “We‘re faced with so many demands, it‘s just unreal,” Pearce said. “We need to hear all the input before we can make a rational decision.” “Likely at the end of the day, I think taxes are probably going to go up a bit,” he said. “But that is not shared by everybody on this council.” No date for the start of council‘s actual budget deliberations has been set, although Ashton said that will occur as soon as possible. “We‘re going to get to a budget that may not be acceptable to all, but will be acceptable to most of the people in Penticton,” the mayor said.