By Pepper Parr
January 27th, 2016
BURLINGTON, ON
Is it a good budget?
There are few taxpayers who are happy about the rate of increase over last year – and the 20 year projection calls for more of the same.
While the increase year over year is above the rate of inflation – the numbers have to be looked at carefully – they aren’t going to get much better. The biggest thing that appears to have come out of the budget exercise is a realization on the part of council members that they don’t have a tight enough grip on what they need staff to do.
Council seems to be continually blinded sided by one catastrophe after another.
Repaired at a cost of $380,000 in 2012 – the bridge is going to have to be replaced in the near future.
The Drury Lane Bridge had to be repaired at a cost of $380,000 – that was for a five year patch – the estimated cost of replacing the bridge was something in excess of $2 million – which comes due any day now.
The Nelson Pool had to be closed because of problems with the steel structure and is now not going to be re-built and repaired until sometime in 2018.
The families with children that make use of the Nelson Stadium took matters into their own hands and began working with the school board to upgrade the facilities. The Stadium is on property owned by the city and the school board – two organizations who are not known for how well they get along with each other. They don’t even have a structure that has them meeting regularly to resolve shared concerns.
When a citizen’s delegation spoke at city hall they knew more about what was happening than members of council. That was not a pretty picture.
Council members expect staff to do the ongoing analysis that tells when an asset is due for an upgrade.
How did the city not know that the Drury Lane bridge needed work and how did staff did not know that the Nelson Pool was due for a major upgrade. There is asset management software out there that works all this out – and Burlington spends a fortune on software.
Do we have the right people managing this software and the way it is utilized?
The one thing we know about the 2014 flood is that it has cost us a small fortune – think in terms of $40 million so far. We also know that climate change is likely to cost us even more in the years ahead.
Managing the financial cost of the 2014 flood and coming to terms with what has to be done in the way of storm water management had $20 million thrown at it. Council has realized that it is going to take an additional $20 million to make the changes that were recommended by the consultants the city hired.
The scary word in this graph is “initially” It will probably take an additional tax levy to handle storm water.
The Mayor commented that the city was going to have to take a serious look at a special tax levy for managing storm water. The realization that climate change is upon us and we no longer know what our weather is going to be – here we are at the end of January and you could be wearing shorts on some days.
As for city hall and the media people over there – they are doing it again. Messing with the numbers – and totally trashing there commitment to transparency and accountability.
The city’s media release said:
“The City of Burlington has approved the 2016 operating budget with a 3.14 per cent increase in the city’s portion of property taxes, which will result in an overall property tax increase of two per cent when combined with Halton Region and the boards of education, or $17.10 per $100,000 of home assessment value.
Highlights of the approved budget include:
• The base budget increase of 1.28 per cent is aligned with inflation (Toronto CPI 1.86 per cent) which is consistent with the Long Term Financial Plan objective of competitive property taxes.
• The base budget maintains the $4.8 million contribution towards the Joseph Brant Hospital reserve fund to meet the city’s $60 million commitment to the redevelopment project.
A 1.44 per cent increase dedicated to the renewal of the city’s infrastructure.
An additional $20 million in funding has been provided to accelerate roadway renewal needs over the next four years.
An additional $20 million of funding has been provided over the next 10 years for surface water drainage projects.
$613K in funding (0.43 per cent) to increase service levels in areas such as winter maintenance and stormwater management.
For those that qualify, the Senior’s Property Tax Rebate has increased from $450 to $525 in this budget.
“There are many competing demands for city tax dollars as well as an urgency to find inefficiencies and minimize tax rate increases,” said Mayor Rick Goldring. “We have tried to balance all the city’s needs, prioritize them and forecast with great thought and care to deliver a responsible budget that serves everyone.”
“This budget continues to provide funding to priority areas of infrastructure renewal, the city’s contribution to the hospital redevelopment and maintaining existing services,” said Joan Ford, director of finance. “In key areas, service levels have been increased.”
That’s their story and they are probably going to stick to it.
You won’t get another viewpoint on the budget – the print newspaper distributed in this city didn’t have a reporter at the meeting. My colleague Joan Little who writes a column for the Spectator will undoubtedly make a comment.
Is this an acceptable rate of tax increases? Does this Council think it can get re-elected in 2018 with these numbers?
Take a look at that 20 year projection again. Did our city Councillors deliver a good budget?
The Mayor has asked the city manager to look for new revenue sources. Until he has a much better handle on how to manage the problems he has on his table now there isn’t much James Ridge is going to be able to do in the immediate future.\
He needs to get his strategic plan passed – it is close to a year overdue.
Can the current Council provide him with the advice and direction he needs? Two of the seven members have been on Council for more than 20 years. Will they run again in 2018? Will their constituents re-elect them?
2017 is going to be an uncomfortable year for this council.
