City of Vancouver budget $61 million short

Mon Sep. 28 2009 18:11:12 ctvbc.ca

Cuts may soon be on the way at Vancouver City Hall, where officials have announced a staggering budget shortfall. City Manager Penny Ballem says the budget will be $61 million short next year. "We are faced with city revenues at historically low levels," she wrote in a statement Monday.Ballem blames a weak economy and federal and provincial funding cuts for the predicted deficit.

Also, the new city manager says the implementation of the new harmonized sales tax (HST) will hit the city hard in the pocketbook, as well as wage increases promised during 2007 job contracts. Ballem says the city is taking steps to address the shortfall, including consolidating duplicate services in hopes the city can deliver them in a more streamlined and efficient way. "We have already identified areas where we can achieve significant savings with minimal impacts on citizens," she said. Ballem says the measures will not completely cover the money, so the city will work with the city council to "find more savings." A press conference is scheduled Tuesday morning to outline the cost-cutting measures.