Whitehorse Daily Star

Councillors' budget discussion grows testy

Coun. Betty Irwin has joined Councillors Doug Graham and Ranj Pillai in indicating the city's proposed $63.4-million operating budget for 2011 will not have her vote unless a significant change is made.

By Stephanie Waddell on March 22, 2011

Coun. Betty Irwin has joined Councillors Doug Graham and Ranj Pillai in indicating the city's proposed $63.4-million operating budget for 2011 will not have her vote unless a significant change is made.

Until the proposed property tax hike of four per cent is brought down to 1.5 per cent, putting it more in line with the increase to inflation and population boosts over the last year, Irwin will vote against the final two readings of the budget bylaw.

She made the statement at Monday night's city council meeting during discussion around a public input report on the budget, arguing the proposed four per cent tax hike is not warranted.

Using an equation from a report by the Canadian Federation of Independent Business about municipal spending, Irwin suggested it's only the 1.5 per cent increase that's needed.

"I simply can't accept a four per cent increase,” she said.

Residents and businesses are forced to look at reducing expenditures in such circumstances, she added.

Irwin also took issue with city staff. She said it's not fair for administration to tell council to come up with cost-cutting measures; rather, that's something staff should be doing, she believes.

Her comments raised the ire of Mayor Bev Buckway. She said she found it "incomprehensible” that the councillor would bring forward the 1.5 per cent increase after sitting through meeting after meeting and going through the budget process.

If the city were to go with just a 1.5 per cent tax hike, Buckway wondered, what department would Irwin want to see cut?

Irwin later defended herself, noting she had brought her issues forward during earlier budget discussions among council and staff. Last night, she was simply reiterating those views, she said.

The mayor, who was a councillor in 2004 when a 3-3 vote by council defeated the originally proposed operating budget, also recalled the amount of work and overtime hours spent by staff on coming up with a new spending plan for the city at that time. Buckway was among the three in favour of the budget, which was defeated.

If just one council member favouring the budget is absent from next week's council meeting, history could repeat itself, with Graham and Pillai also indicating they'll vote against the fiscal blueprint.

Graham voted against first reading last month. He took issue with another four per cent tax increase and further four per cent hikes planned in 2012 and 2013. There have also been steady tax increases over the last several years.

Pillai voted in favour of first reading to get it to the public input phase, but he has said he'll likely vote against second and third readings, as he would rather see tax increases that reflect changes to the Consumer Price Index.

While that would bring the tax hike to two per cent for 2011, Pillai also noted he has no problem with another percentage increase to accommodate planned changes to the bus system for this year as well.

Graham continued to defend his position during last night's discussions. He said he doesn't have a problem with some of the staff the city is planning to hire due to population growth, such as the planning position which will be needed as work continues on Whistle Bend, the next major residential subdivision for the city.

There's no need; however, for positions such as the two service counter staff proposed to be hired at the Canada Games Centre.

While membership numbers at the recreation centre continue to rise, Graham said he wants to see revenues at 60 per cent before more staff are hired.

He also took issue with the $1 million that would come out of reserves for the budget to address labour costs emerging from the city's new employee classification system.

Discussions continued to heat up as Councillors Dave Stockdale and Florence Roberts joined the conversation.

Stockdale questioned whether Irwin's proposed 1.5 per cent tax increase considers major community facilities like the Canada Games Centre.

"Is the Canada Games Centre something we don't want?” he asked, after Irwin explained her equation was based on operating costs only.

Graham quickly jumped in, telling Stockdale to "get real.”

If Stockdale, a councillor since 1983, is going to "ask stupid questions,” it shouldn't be done in a public forum, Graham declared.

Stockdale responded by arguing his questions are real issues and requested a list by Graham of where cuts could be made. Graham quickly listed off a number of arguments he had made earlier.

"It's not like these are a secret,” Graham said.

If he was a full-time city employee, he added, he could go through the budget line-by-line and look at areas to be cut. Like Irwin, Graham noted that's not his job, but is up to staff.

Roberts suggested if Irwin wants to bring forward a 1.5 per cent tax increase, she should do it in June, when the city starts working on the budget for next year.

"That's the time to do it,” Roberts said, arguing council had agreed to tax hikes of no higher than four per cent.

As the discussion waned, Graham and Irwin commented they had never agreed to the four per cent hikes.

In the public input report presented to council, staff defended the budget. A tax increase based on the Consumer Price Index doesn't work, officials have said, as it doesn't account for new programs and services and isn't based on the same goods a municipality faces in costs.

It was also stated the city's tax hikes are actually lower than those of a number of cities across the country, and there are programs in place such as the territory's home owner grant and the city's seniors' utility grant to off-set taxes and utility bills, which would go up 7.33 per cent.

Second and third readings of the budget will come forward next week along with the final two readings of the bylaw outlining the fees for the next year.

Comments (8)

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Francias pillman on Mar 28, 2011 at 9:14 am

Why are any of you people complaining? You guys voted for incompentence.

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ES on Mar 28, 2011 at 6:14 am

I think the city can save allot of money by creating "efficiencies" within the existing organization. I am tired of seeing city employees on the job leaning on shovels. I hear horror story after horror story about new "go getter" employees being told to slow down and quit working so hard or they'll work themselves out of a job by the senior employees. I also note that the city will often spend in a knee jerk reaction on large capital items without considering the long term consequences and costs associated with these.

I recall critics of the Canada Winter Games being told by the city and organizers not to worry and that the games centre would not mean year after year tax hikes. Unfortunately that's all we have seen from Buckway's office.

The city needs to be run more like an independent business where the administration is constantly scrutinizing expenses and analysing capital expenditures as if they were long term investments. At this stage is seems as though the city is really good at writing cheques without the proper checks and balances.

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Anthony on Mar 28, 2011 at 6:06 am

Buckway should lead by example. A morotorium on outside travel and get rid of her ridiculous monthy car allowance.

Buy a bus pass Bev.

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Dennis Schneider on Mar 25, 2011 at 8:29 am

For years now I have listened to the comparison of Cities "down south" to Whitehorse. Whomever writes these comments and City Councillors/employees have missed one important fact.

Cities "down south" have to pay for their policing. For similiar policing service to what Whitehorse receives free yes free now...I would bet the cost would be around 15 Million dollars give or take a couple. Bylaw's budget I'll bet will be a million or more.

Get Real...Tell The whole Truth

As a senior, my pension increase for this year does not come close the increase in costs of water,sewer, garbage and heating fuel.

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Yukon Bambi on Mar 24, 2011 at 4:43 am

I applaud the new City Councilors for saying no to tax increases, and demanding the City staff start moving away from their tax and spend strategy, to a strategy of maximizing resources and reducing operational costs. The City needs to start making tough choices and also saying no especially to non-essential items. I am surprised to see the largest part of the City budget is parks and recreation.

At present there does not seem to be any strategy on the City's part to maximize resources and reduce operational costs. Yet, that is the strategy that is occurring elsewhere in North America and Europe. We are not broke like many other governments, but we seem to be following the same path with the current tax and spend strategy that made the other governments broke today.

Lets learn from the mistakes of our southern neighbors. Our neighbors down south waiting too long to change strategies, grew too big in government cost, and now don't have any choices. Everyone is poorer down there, and the layoffs in government are starting to cut deep. We should start now with a strategy of maximizing resources and reducing operational costs now! Hopefully the seasoned Councils at City hall and the Mayor will push for these changes too.

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Max Mack on Mar 23, 2011 at 8:35 am

Finally!

City Council has a responsibility to set the tone and direction for budgets and the message until now has been "tax and spend". Continuing this direction is not only unnecessary, but reckless.

I would like to remind CoW that property taxes automatically increase by inflation due to the annual property re-assessment process. There is no need to increase the tax rate by inflation since it has been built-in for several years now.

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Doug Rutherford on Mar 23, 2011 at 6:28 am

"If the city were to go with just a 1.5 per cent tax hike, Buckway wondered, what department would Irwin want to see cut?"

Let's see, first, why does a town of a few more than 20,000 people have a full-time mayor? I can certainly see changing the mayor's position to a 0.25 or 0.5 position starting towards keeping costs down and keeping in line with what Whitehorse probably only needs.

Also, considering the size of the town, why do we have so many senior city staff. A cut here and there in that department should also bring costs back into line a bit.

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Lisa on Mar 22, 2011 at 8:47 am

I can as a Taxpaying citizen suggest a cut for you, Cut all Councillors travel outside of Yukon! I bet that will save a bunch, and then you wont have to hit up the taxpayers so hard!

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