Though Centre Wellington’s operating budget passed fairly quickly last week, councillors voiced considerable concern about the process.
Councillor Kirk McElwain said staff did a wonderful job coming up with a 1.89% operating increase.
“Unfortunately the 2% (capital levy) adds up to significantly more … I don’t support that part of it,” McElwain said at the Feb. 21 meeting.
He noted staff brought in consultant Nigel Bellchamber at the start of the budget process to comment on township finances. McElwain said Bellchamber offered council “some opportunities to consider,” including:
– moving forward passage of budgets to early December – except in election years;
– combining capital and operating budgets for 2018 and thereafter; and
– holding a financial brainstorming session outside of the budget process.
McElwain asked for a date to be set for a brainstorming session to consider moving back to a single budget process and an earlier adoption date.
He also said quite a bit was discussed at council previously about the OLG slots revenue of roughly $2-million annually.
Although council does wait a year before spending the money, McElwain suggested the cash should be set aside for special projects, rather than dropping it into the “big black hole” of normal capital projects.
Councillor Fred Morris recognized the hard work by senior staff discussing and prioritizing the needs within the township.
However, he said he is “not a fan of the annual 2% capital levy which now in 2017 has aggregated to a total of 6% since inception.
“This means that taxpayers in three short years have shelled out a total of $1,354,478 in extra tax.”
Morris said he is disappointed a report on bridge construction since 2008 was not available prior to the vote on the 2017 budget.
“Without this information, it is difficult to see if the levy has accelerated bridge infrastructure projects as initially proposed or has it simply become a talking point for political purposes only?”
Morris said, “I still find it somewhat incredulous that this council simply nodded in agreement to this monstrous cash grab without first requesting a thorough analysis and discussion on this initiative.”
Morris also advocated for more discussion on how OLG slot revenues could be used to address the township’s most urgent needs.
He said he is also concerned about “the complete absence of any other financial strategy researched by staff and submitted to council as alternative proposals to a capital levy.”
Morris declared, “I do not believe the easy way of a tax increase is the only way to address our deficit.”
Morris also addressed the township’s strategic plan created to guide the township during the current term of council.
“I would propose to you that the purpose of a strategic plan is not simply to create a ‘shopping list’ of activities and things to do … results from that strategic plan matter far more than the activities it proposes,” Morris stated.
“No one should create a strategic plan just so they can point to a myriad of action and proudly proclaim, ‘Look at what we’re doing now’.”
Noting Centre Wellington is “growing rapidly and … becoming a small city,” Morris said it is time to “move ahead with a constructive and thorough plan” for changing the way the township does business, including reconsideration of the budget process.
Morris said it is time for staff to accept the need for council’s input along with staff’s in the early stages of budget development.
“Is it not time for council to acknowledge and utilize the potential skill sets resident within certain members of council when committees are appointed?” Morris asked.
“For the good of the community, shouldn’t we put an end to the natural inclination towards partisan preference?”
He added he looks forward to the day when council discussion “shifts away from just how much services and assets are costing to instead how much they offer … the taxpayers of Centre Wellington.”
Mayor Kelly Linton responded “thank you very much for that speech.”
Councillor Steven Kitras reiterated comments made regarding the budget process, but first noted the budget looked clean and proficient.
Kitras said he is pleased funds were included for an integrity officer and that $23,000 for economic development was not removed from the budget.
“Having said that, the operational budget of only 1.89% increase seems diligent … but the process on how we got there … is flawed.”
Kitras said, “this is a disappointment because everything except 0.9% of this seems locked in for the next four years.” He added that with the capital levy of 2% and wage increases of 1% each year, tax increases will be a minimum of 3%.
Kitras suggested “the 2018 budget is almost a fait accompli,” adding that is what happens when there is “almost total staff control over the budget process – and councillors are left dealing with marathon sessions to find even the tiniest savings.”
Kitras said the budget process should invite input from councillors and citizens right at the beginning – not at the end. He added he had made a similar suggestion at the beginning of the strategic planning process, but it seems “staff is pretty much controlling everything and we are rubber stamping it.”
Councillor Mary Lloyd stressed council is at a level of governance and policy – not in the management of day-to-day operations. She said many items were discussed within the budget process.
In the area of the township’s Community Improvement Plan, she said there are some concerns about giving public funds to private business owners – and the justification for it.
Lloyd noted the maximum amount that can be given out actually exceeds the amount the township grants to not-for-profit community groups, which invest in the fabric of the community.
“I’m glad about the economic funding and the integrity officer, but I didn’t see in writing that we are developing a strategy and policy around how we are going to handle the J.R. Macdonald Trust,” said Lloyd.
She wanted to be able to assure residents a plan would be developed – and citizens would be part of developing that plan.
Councillor Steven VanLeeuwen agreed there was a lot of work put in by staff on the budget.
“I feel our brainstorming as council at the beginning of the process is a very important piece,” he said.
VanLeeuwen stressed councillors were part of developing the township’s strategic plan, which “directed staff as to what our mission, goals and desires were.”
VanLeeuwen said staff were given clear direction as to what is important to council and he said there are opportunities in the budget process to control finances.
VanLeeuwen wanted the public “to be aware that every tax dollar spent is based on priority needs – it’s not just a 2% capital levy for bridges – not just the $2-million from the OLG slots – but based on our priority needs.”
He added, “This budget is very reasonable and I am excited to see what can be done.”
Councillor Don Fisher said he looks forward to a financial brainstorming session happening and he too wants to see a policy on the remaining Macdonald trust fund. He said council originally stated it would wait until passage of the budget, so he believes now is the time to move forward.
As to the organization as a whole, Fisher said Centre Wellington is straining at capacity.
“The demands are enormous and likely more than ever envisioned,” he said, adding that hiring new staff is unavoidable due to growth.
He agreed Centre Wellington is moving towards being a small city “and our organization will eventually have to reflect that.”
Linton said he is “excited about this budget … as much as someone can be excited about a budget.” He indicated the operating budget increase is the lowest since amalgamation – which he said is significant in light of increased operating costs.
“There is no question in my mind that our strategic plan offers clear direction to staff,” said Linton, adding he is “a little tired of all the talk – we’re actually getting things done.” He said the 2% dedicated capital levy for bridge rebuilding provides accountability to taxpayers that the money is going directly to specified projects.
“We are doing the things we said we were going to do,” Linton said. He considered the budget process as “very collaborative.”
Linton stated, “council’s role is that of governance; we set the policy and direction – and we hire really good staff to do their work.”
He added, “There is always room for improvement, but I think we are doing a lot of the right things.”
