Although it was finalized in December, city council will reopen the 2020 budget to see how it can be changed to make life easier for taxpayers affected by the pandemic.
During its April 13 regular meeting, council voted unanimously on a motion to reconvene the budget committee to revise the 2020 operating budget. The initial motion had a clause that directed the committee to provide a zero-per-cent tax increase while reviewing the budget. However, council voted 6-1 to remove that stipulation; Coun. Brian Swanson was opposed since he had introduced the motion with that clause.
Reopen that budget
Of the three levels of government, municipal governments have the least amount of room to manoeuvre financially since they can’t print money or run deficits, Swanson said. However, one area that city council can control is the operating budget.
“If ever there was a year where we could show restraint (and live within our means), I think one could argue this would be the year,” he said.
The operating budget is passed, but the bylaw has not been prepared yet, so technically it’s not official, he continued. While council’s options are limited, it could eliminate the two-per-cent tax increase as a sign of leadership. Some initiatives could also be pushed off to next year.
Another action council could take is to accept a pay cut of about 20 per cent, since that is what other people are doing in business and sports, Swanson added.
Long-term financial plan needed
This is going to be a long-term situation that council will have to handle financially, said Mayor Fraser Tolmie. Municipal revenue sharing from the province is going to be lower in two years, so council will have to develop a stable financial plan.
What Tolmie didn’t want to see was a repeat of past mistakes where council was unable to complete projects or was hindered from doing so. He wanted to ensure that the municipality was capable of completing these initiatives — such as the cast iron replacement program that is 30 years’ overdue — since they generate money.
Don’t reduce the tax increase
Coun. Crystal Froese didn’t think pursuing a tax increase of zero per cent should be council’s goal; instead, it would be more important to look for reductions and how they affect the budget. Specifically, a recovery strategy should be developed since it will cost extra money to start up programs that have been shut down.
“I would also have the hesitation about being held to the zero-per-cent (increase). What if we get down to half a per cent? I don’t know,” said Coun. Heather Eby. “I’m willing to open (the budget) up. I’m willing to … reduce council’s salary if that’s where we get to.”
Aiming for a zero-per-cent tax increase sets a clear goal for elected officials, Swanson replied. It shows that council can live within its means, which is important for many people who are experiencing the “harsh realities” of the pandemic. He doubted residents had sympathy for councillors who couldn’t find a few thousand dollars in savings in a $45-million budget.
Working as a team
It’s unfair to say landing on a zero-per-cent tax increase shows good leadership or that council completely understands the community’s situation, remarked Froese. There are seven people on council with different backgrounds and connections in the community, who likely know the problems residents face.
“We have finite abilities as municipal leaders because of (provincial) legislation. So we will do what we can, but we will do it in a democratic fashion … ,” she added. “Working as a team is very important. It is what our citizens are looking to us to do, that we find solutions to get through this.”
The next regular council meeting is Monday, April 27. However, the media may once again be locked out from attending in person.
