JOHN MOORHOUSE Thursday, October 28, 2010 Penticton Herald:
While city workers fear for their jobs, Penticton council is preparing for another tough budget in 2011. However, city administrator Annette Antoniak said Wednesday with the city facing a structural deficit of $1.7 million to $2.1 million next year, something has to be done. A pre-budget fiscal review will be delivered at Monday night‘s city council meeting, prior to the a preliminary budget being introduced Dec. 6. Separate meetings outlining the situation directly to city staff have been held this week. Antoniak and Mayor Dan Ashton said in a City Hall interview that some difficult decisions lie ahead as cost-saving measures are reviewed. “It doesn‘t necessarily mean that we‘re going to reduce the service we provide to our residents,” Antoniak said. “Is there a way to deliver that same service in a more efficient manner?” New revenue sources are also being explored. Although city council drew $1 million from the city reserves to balance this year‘s budget, Antoniak said that trend simply cannot continue. “You can‘t sustain that,” she said. “It should be never be used for operating.”
She said the budget process is being revised to allow each department to gain more of an insight into budgetary issues affecting the city as a whole. The city is also reviewing the 64 recommendations included in the core services review, but she emphasized not all the recommendations will be implemented. Monday‘s fiscal review will include a separate look at the $23-million community centre pool upgrade. The city faces annual debt payments of more than $300,000 to service its $7-million share of the costs, plus increased operational costs. The administrator said the city approached CUPE union representatives in August and put forward a proposal that would see existing community centre staff retain their current wage scale, but newly-hired workers would be on a lower salary grid. However, city and CUPE officials agreed last week the issue will be addressed in upcoming contract talks, rather than separately. The city will also be looking to the private sector for proposals into the community centre‘s operation. Ashton called the pool staffing situation “a bit of a red herring”, noting the staffing issue must be viewed over all city departments, not just the 36 community centre workers laid off in March for the pool‘s year-long construction upgrade. Less than five per cent of the 250 to 300 city workers have been laid off, the mayor said. Excluding the community centre staff, four senior managers have been let go this year, following 11 staff layoffs in 2009.
The $1.7 million deficit on the South Okanagan Events Centre, Penticton Trade and Convention Centre and Memorial Arena Ð all operated under contract by Global Sector is also a factor. Ashton said council has met with top Global executives over the last month and urged them to find ways to improve the fiscal situation at the SOEC as well. Meanwhile, Antoniak acknowledged that the layoffs and staffing changes have been hard on staff morale. “I recognize that these are people‘s jobs and livelihood,” she said. “They just want to know they have a job and we want to achieve that. That‘s what we‘re trying to do.” The bulk of the changes must be made now, she said. “This forensic diving, so to speak, hasn‘t been done for a while,” she said. “It has to be sustainable. I don‘t want to keep doing this Ð it‘s too painful.”
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