By Anne Finlay-Stewart
Budget – Take One
The 2015 Owen Sound budget marathon has begun.
"I don't want any of you to go away not understanding. Please ask questions,"
Owen Sound City Manager Ruth Coursey encouraged the new mayor, four rookie councillors and two vets at Wednesday's opening meeting.
The draft operating budget of $27.5 million prepared by staff maintains the current level of service, but would require a 5.3% increase in the city's portion of the property tax bill. Any service cuts will be selected by council and Wayne Ritchie, long time Director of Finance, suggested there will not be a single initiative for reducing the budget that will not receive push back from some ratepayers.
Council voted to complete a comprehensive service analysis as soon as possible after the budget and strategic planning processes were complete later in the spring, acknowledging that the timing was not ideal but unavoidable.
At the suggestion of councillor Jim McManaman, Coursey set the budget discussion in a context by describing the city's current situation and challenges.
Most of the city's present infrastructure was subsidized by as much as 50% by provincial or federal governments who no longer feel they are in the business of providing local roads and water systems. Future upgrades will be on the municipal tax bill. Upper tiers of government have passed legislation that effects municipalities – labour laws, environmental and accessibility regulations as examples – without providing funding for compliance.
When it comes to the city's human resources, Coursey said, there are realities to consider. More than 60 people currently working for the city of Owen Sound are eligible to retire in the next five years, many in senior positions. There is a limited pool of qualified people willing to locate here, so salaries and benefits must be competitive. Fire and police salaries and benefits, a large portion of the cost of those big-ticket services, are based on negotiated contracts.
The overview of the city's infrastructure needs was nothing short of grim. Harrison Park requires almost $1 million annually to maintain. The 10th Street bridge will need replacement in five to ten years. A commitment has been made to pave the back parking lot at the Regional Recreation Centre at an estimated $500,000. City buildings must be brought up to the standards of the Accessibility for Ontarians with Disabilities Act, and no facilities are maintained at their optimum.
A recent municipal Asset Management Plan, mandated by the province, showed that there was a $3 million dollar shortfall annually in maintaining the city's bridges, roads, water and sewer systems.
In this context, each city department presented its draft 2015 operating budget for consideration, line by line.
Anne Finlay-Stewart is Community Editor of Owensoundhub.org. She can be reached at [email protected].
