April
14 2015
Low
growth in the County of Kings residential property assessment and a
substantial decrease in commercial property assessment leaves our
municipality, for the first time, with less tax revenue than needed
to keep pace with base expenses. These
base expenses are often referred to as mandatory
expenses by
administrative staff. However, these could be decreased over
time with
appropriate notice and planning to realize savings.
This
year, under the direction of a reconstituted Budget and Finance
Committee, council also approved a new process for approval
of grants to organizations and service partners.
It
is notable that in
2010 independent
management consultants recommended the Finance
and Budget
committee of that day be immediately abolished. The
report stated the opinion that: “detailed
discussion of finance and budget matters” are “important issues
which should be discussed by council as a whole.” (Page 5, HR
Management Group Organizational Review Report, April 2010).
The
new Budget and Finance Committee appears
to show at least some of the traits
cited in 2010 as reasons why the prior committee ran amuck:
several
hand picked councillors serving on the committee
(potential
for) intrusion on what is normally the responsibility of
administration
micromanagement
of the day-to-day affairs of the municipality... consultants
question... “what expertise, if any, does any member of the
Committee have that the CAO, the Finance Department and the
Municipality's Auditor do not?” (Page 5)
taking
over a normal function of Committee of the whole, in terms of
detailed discussion of finance and budget matters and making
recommendations to council
councillor
lobbying (behind scenes for funding during this year's budget
process) in open disregard for the duly accepted process that is
open to the taxpayer
It's
notable that
on March 16 the operational draft budget, prepared for council under
the guidance and motions of
the
Budget and Finance Committee had several troubling characteristics.
These
included deep board cuts
to
external organizations but little in the way of internal operational
adjustments.
Despite the attempts of non-budget-finance-committee-member
councillors
to amend
some of the most troubling aspects,
no changes proved possible. Nor
was there any appetite to challenge
the
administration to sharpen
their pencils and find internal savings. Eventually, the operational
and capital budgets moved forward undisturbed by debate in chambers.
Here
is the result of the 2015-16 budget approval:
A
process brought into play that removed all operational grants
related to community-based service provision from the base budget
and requiring 50 organizations to present detailed budgets. Yet, the
Budget and Finance Committee, did not take into consideration these
details or the disparate needs of each organization. Instead B&F
applied and recommended three categories of “across the board
cuts.
Seven
organizations with a wide reach in every district of the county,
previously funded for part of their operations, denied in this
budget. These were:
Coastarts
Association
Eastern
Kings Chamber of Commerce (visitors centre, promotions)
Echo
Kings Action Team
Halls
Harbour Community Development Association
Kings
Volunteer Resource Centre
Senior
Safety Program of Kings County
Valley
Child Development
Zero
increase over the prior year for all 13 fire departments. Many were
looking for relatively small amounts of additional funds to equip
and train new volunteers. As well, valuable data generated by the
Manager of Protective Services (subsequently demoted to a Supervisor
of Protective Services) was set aside. That data challenged council
to examine factors related to the costs of fire protection that were
escalating dramatically at several departments.
Five
of 13 asked for increases of 20 percent or more.
Two
asked for an increase of more than 50 percent.
One
requested an increase of 90 percent.
Without
the courage to treat departments according to their needs, or to
rationalize services council is not ensuring effective and efficient
use of our tax dollars nor are we ensuring that the risk to our
volunteer firefighters and our residents is minimized.
Zero
percent increase over prior years for grants to support community
halls, parks and recreation; and community economic development.
20%
decrease in previously allotted funds that
were to be
paid over
several subsequent years. This
impacted 13 organizations that council
or
previous councils had committed capital or operational funds to as
follows:
Capital
Operational
Interestingly,
the county's commitment to two of these organizations is conditional
on both federal and provincial governments committing funding. This
commitment has not materialized, but
an
appeal to skip a year of placing funds in reserves to address
pressing needs was denied.
The
2015-16 budget should have been a time of reckoning for this council.
Changes in revenue certainly provided a loud warning to stop coasting
and to start getting our operations in order in preparation for the
lean years that all reports say are ahead. We are seeing signs of a
decline... Decreased development... businesses closing...
out-migration of youth and young families evidenced
by significant
decreases in school enrolment... the greying of those of us who stay.
Has
council, as a whole, put its head in the sand? There is evidence that
it has:
The
Budget and Finance Committee set aside three full days for its
committee members to delve into all the details related to the
applications made by organizations and other operational expenses.
Delving didn't happen. Before 3 PM of the first day the committee
had approved the budget prepared under the direction of the Budget
and Finance Committee by staff.
When
the operational budget was brought forward for deliberation by
Committee of the Whole every amendment tabled was defeated... Even
an amendment to add a CPI increase to the small grants available to
community halls and parks. The cost would have been about $3,000.
The
result of the speedy passing of the operational and capital budgets
at the committee level is indicative of the budget delivered up to
council for a speedy approval. The budgets are on time and as
drafted. The
dye was cast at Budget and Finance and it coasted to a pre-determined
end result.
The
blunt strategy of balancing the budget was
done on
the backs of outside organizations that
are best understood as service partners providing valuable services
at a fraction of the true cost.
The
start of a proactive
plan to help us move from these times to better, more
sustainable times
needs
to be initiated.
Good
times, we
have been told will only come if we act now
versus later
or never.
It
is with regret and deep disappointment that I woke
this morning knowing that I would have to enter chambers to oppose
the passing of this budget versus
coming in to celebrate a job well done on behalf of Kings County
residents. We've used
unsustainable practices to gain a balanced budget for one more year.
It's
my firm belief this budget represents
a dereliction of duties to our service partners and to the
communities and people councillors
were
elected to serve.
In
the months ahead will we see some
of the community
organizations that this budget has treated most poorly compete within
small grant envelopes. These organizations, important as they are to
this county's social and economic well-being, will be queued
alongside scores of others looking for dollars to help their
communities thrive.
Pauline
Raven, Councillor District 3, Municipality of the County of Kings
902.670.2949