Thursday, October 29, 2009

Outrage as Abbotsford short $30-million for essential services after pouring $80-million into arena

By Kent Spencer, The ProvinceOctober 28, 2009

Just months after opening an $80-million hockey arena, Abbotsford is short $30 million for roads, police vehicles and a fire station. “This is not a situation which we can leave unattended,” says a message to residents from city manager Frank Pizzuto. “Costs to fix roads, water and sewer in the future will increase dramatically, perpetuating the problem for future generations.” Pizzuto called the shortfall a “dilemma” involving $49 million worth of “essential” projects. “Only a fraction of the projects can be addressed,” he said.

The capital projects include $18 million for road reconstruction, $7.5 million for police and fire vehicles and operations and $6 million for a fire hall. Vince Dimanno, president of the Abbotsford Ratepayers Association, said big spenders on council should not be bailed out. “Shockingly, it seems that road maintenance and water-resource issues have taken our council by surprise,” said Dimanno.

He said the best example of council’s “pie-in-the-sky” thinking is the $80-million Abbotsford Entertainment and Sports Centre. It includes a $2-million scoreboard for the new Abbotsford Heat team that’s part of the American Hockey League. “Council has to put the budget heat on itself instead of taxpayers,” he said. Mayor George Peary said 2010 will be one of the most challenging times the city has ever faced. “We’re not unlike a family. There’s lots of desires and limited resources. Fees from developments have slowed by 30 per cent. We spent over $100 million on things like the hockey arena. We borrowed some money and dipped into capital reserves to pay for it. “The hockey arena was a bit of a field of dreams. But that debate is over. We’ve had seven years of plenty and we’re looking at seven years of tightening our belts,” he said. Peary hopes a two-cent-per-litre gas tax will be approved by provincial authorities to generate $5 million for the city next year.

He said property taxes will rise less than last year’s 5.5 per cent increase, but staff have also recommended a two-per-cent capital funds levy that would be counted separately. Dimanno said council has been misleading the public about budgets for the last two terms. “We’re about $50 million short of being flush next year,” he said. Citizens are invited to comment on Nov. 12 at 6:30 p.m. at the Matsqui Centennial Auditorium. Council will finalize its draft budget by the end of the year. Other cities are also facing shortfalls. Vancouver has a $61-million loss in revenues this year.

1 comment:

Coldstreamer said...

Local governments are not allowed to have a deficit budget. Will the Province make an exception in Abbotsford and Vancouver? There is a slippery slope in the offings. Of course, having seen the Province reversing the law with respect to their own budget law (illegal to have a non-ballanced budget) anything is possible.