Bruce Walkinshaw - Penticton Western News Published: October 28, 2010 6:00 PM
Penticton’s civic taxes will have to increase by 11 per cent next year if the city does not find a way to trim its budget, according to the municipality’s top manager. City CAO Annette Antoniak said that at this Monday’s city council meeting she will present a technical review of the city’s 2011 budget which, comparing operating expenses to projected revenues, is currently sitting at a deficit of between $1.7 and $2.1 million.
Last year, asserting that the municipality was caught in structural deficit where simply increasing taxes would not bring in more revenue because the weak economy would contract further, the city dealt with similar numbers by dipping into its reserves to the tune of around $1 million to balance its budget.
Describing the fiscal manoeuvre as a “one-time-only” strategy, Antoniak said the city’s managers are currently working together to find ways to reduce the city’s structural deficit. “We are fully engaged with the management team in looking at every possible scenario in terms of cost savings, and at the same time we are looking at potential for revenue sources, keeping in mind that that also has to be sustainable,” said Antoniak. “People have to be able to afford to live in Penticton.“So, we are trying to balance that right now but it is challenging when you consider our total wages are around $20 million.” “Our first priority is to deliver the same level of service, but maybe in a more cost-effective way ... We are saying, ‘Let’s see if there is a different way to deliver that same level of service in a more efficient manner.’ That is more challenging. That requires more work and that is why we are looking at realignment.”
The $70,000 core service review, Antoniak said, and its recommendations are the starting point for the realignment process. Made public in its entirety accidentally last week, the report included a number of suggestions where the city may find savings, some Antoniak said the city may investigate and perhaps implement and others that will never be on the table. For instance, the core services review says that city fire dispatch services require immediate attention as local labour costs are $500,000 a year and its service is occasionally overwhelmed. The review recommends the city investigate three operations: outsource dispatch to an existing provider; build a new local dispatch service in Penticton with non-union dispatchers; or engage a third party to provide local dispatch services locally, measures all under review. However, the review also suggests the city investigate cost structures for municipal police forces in other comparable cities such as Port Moody to see if Penticton might be able to save money on its policing expenses, a recommendation both Antoniak and Mayor Dan Ashton say is a non-starter. The review recommends the city undertake a study of the electric utility effectiveness to “provide a clear fact base to either verify a municipal-run utility is the best option or to confirm that outsourcing is a better option.” The review challenges all the city’s departments to look at their effectiveness and cost efficiency. The 58-page document also suggests the possibility of terminating or amalgamating positions, negotiating down wages, outsourcing jobs and decommissioning McLaren Arena. Antoniak said her management team is working hard to bring the process to conclusion.
“We also recognize this is people’s jobs. This is what they do for work. This is what they do. The City of Penticton makes up a large part of the job market here,” she said. “I understand people’s angst. I get it. I have been through a core review too, myself. I understand it’s not a healthy thing and it’s not great and it’s people’s livelihood and their jobs. And it’s hard when you’ve got that hanging over your head but we are going as quickly as we can to come to a resolution.”
Technical Budget Overview
A presentation on the Pool expansion project: for a full report click here.
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