One councillor’s efforts to convince Centre Wellington to rethink its budget process met with little support from council on Feb. 16.
Before the vote councillor Kirk McElwain wanted further discussion because he was uncertain as to the next opportunity to discuss the budget process.
“I think this year it became more obvious, there are problems with this (process),” McElwain said, adding he is convinced the township needs to restore its finance committee.
However, his biggest concern is having the capital and operating budgets done separately.
“They really have to be done together, because there is so much overlap … and decisions made on the capital budget will affect the operating budget … but by then it is too late to change the capital budget.”
He questioned a $350,000 software purchase.
“I expected when I see a software purchase of any size, there is going to be an offsetting savings in personnel. There was nothing to offset the $350,000 capital.”
McElwain asked that in the township’s actions items, staff include a report on changing the budget process back to dealing with both budgets at the same time.
Mayor Kelly Linton said the comments were interesting in light of recent conversations at Wellington County with municipal councillors who want to split capital and operating budget discussions to provide clarity between the two costs.
“Personally I think the division is very effective and helps us get in front of projects. It also helps us look at day-to-day operations in a way that is a little bit different,” said Linton.
He said his preference is the current style of discussion. “I’m not in favour of a move back in time on this.”
Councillor Steven VanLeeuwen said the important part to him is being able to understand the difference between the operating and capital budgets – with capital items being one-time purchases.
He said he viewed economic development as an operating item, unless it involved a one-time purchase of something. VanLeeuwen preferred the current process, to allow discussion without “budget burnout.”
CAO Andy Goldie said the entire budget process was done via committee of the whole, “so every one of the councillors was involved in every discussion with regards to the budget.”
Goldie contended if a smaller finance committee was created, the same information would need to be re-presented to the committee of the whole.
The CAO added the staff preference is to bring all of the information to all of council at the same time.
Goldie said the township has a limited amount of staff – and by splitting the budget into operating and capital, staff can better focus on each area.
He added that until final passage of the budget, council does have the opportunity to make changes.
Councillor Don Fisher said the current process is still relatively new and council is still learning more and refining the process.
“I’m not sure I’d want to see major surgery on it yet.” He added many of the municipalities he has worked with do separate operating and capital budgets.
Fisher acknowledged there are overlaps and it is important to understand the impact one budget will have on another. He favoured the idea of leaving the process as is, with the recognition that sometimes the line between the budgets can be blurred.
While Fisher knows of municipalities still using finance committees, he said Centre Wellington’s approach was to eliminate sub-committees and deal with matters as a committee of the whole.
“I’m not sure how you could justify making an exception just for finance.”
Councillor Mary Lloyd said “in my way of thinking, we are already starting a review of the process, including policies already put into place, and to make informed decisions.”
She contended there were very robust conversations in preparation of both the capital and operating budgets and the municipality is better served by having them separated.
Mayor Linton felt strongly that budget decisions are a role of the committee of the whole. He believed all of council should be involved in the discussions.
“I feel we had very good discussions, and well within our roles on the governance side,” said Linton.
He added he would love to see some of the same types of discussion duplicated at the county level, as “our council is asking staff the right questions and providing good direction to staff.”
