Fewer building permits, a lower new housing inventory and fewer provincial grants are the challenges District of Squamish council faces during 2010 budget deliberations.
Council began the process a little early during the Committee of the Whole meeting Tuesday (Sept. 22) by discussing ways to get input from the public, and from a staff led by new Chief Administrative Officer (CAO) Kevin Ramsay.
Financial director Ralph Hughes presented a 2010 base budget Tuesday, which reflecting no funding increases from the 2009 budget. With the obligatory staff raises, debt payments and operation of the Seniors Centre, the municipality is facing a $374,981 deficit - or a 2.28 per cent tax increase.
A 2010 to 2014 financial plan also showed a seriously depleted reserve fund due to nine years of capital municipal projects, such as the RCMP building, the Adventure Centre and the all-weather fields. Those capital expenditures could now return to $1 million, he said.
"While contributions to capital from general revenue have increased from $979,000 during the years 1990 to 1999 to $1,160,709 during 2000 to 2008, the general capital expenditure budget has increased from $1,490,907 to $5,160,425 annually," stated the staff report. "The district has been able to balance that growth in part with reserves particularly from land sales."
Hughes said the municipal capital program could get a boost by cutting back on road-related expenditures from $1 million to $600,000.
And depending on how successful gas tax agreements are, where two-thirds funding comes from the province, "that can give us some room in terms of projects."
Now that the new CAO is in place, said Coun. Corinne Lonsdale, it leaves the mayor time to lobby for grants and funding agreements.
"We need to get on that. Today, I don't see that two-thirds funding coming at all from anywhere," she said. "And it's a huge issue in Squamish. So it can free you up from doing the job of, not just the mayor but administration you may be able to put more of your energy into lobbying political people. We really need you to be there."
"I agree," said Mayor Greg Gardner.
Reserve funds can be replenished by raising taxes, said Hughes. And there are still Development Cost Charges going directly to a reserve. Selling assets another way, said Gardner.
Council wants input
Council unanimously agreed to hold two town hall meetings to get budget priority input from the community with possible dates in the fall and again early next year.
The process will start with the capital portion, said Gardner.
The District is required by law to consult the public, but it's also political decision by a council wanting to hear directly from the community, said Gardner, who said the District plans to hold a second meeting.
Coun. Patricia Heintzman said she agrees with going beyond statutory obligations, despite 80 per cent of the budget being "pretty much written in stone." However, she reminded council they had talked about the budget being 95 per cent complete by the end of the year so council isn't "pressured or surprised" in early March.
"So I think we need to have one of those [public] meetings pretty soon," she said.
A budget 'built by staff'
In accordance with a request made during last year's budget deliberations, district departments will take turns justifying their expenditures in a detailed account rather than simply submitting increases from the previous year's budget.
Ramsay said this will help with possible reallocation of resources between core services and elective ones.
"The goal through the next year is to help with more clarity," he said.
Three departments will list where their funds go this year with more to come in following years since it's "a lot of extra work," according to Hughes.
Coun. Rob Kirkham said he'd like to see a budget "built more by staff" than by a council deliberating whether to cut "this object or that object."
As an example of a council budget cut decision coming back to haunt them, Kirkham pointed to a request coming forward from the operations department for $48,000 in council contingency funds to pay for street sweeping and drainage maintenance before fall rains create problems. The use of funds would leave only $20,000 in council contingency for the rest of the year, something Ramsay said he "would not suggest."
A motion by Coun. Paul Lalli to direct staff to seek $48,000 elsewhere in the 2009 budget was passed unanimously.
