Penticton council’s budget kicked off with a vote to cap any pay increase they might see this year.
Budget deliberations began Friday at City Hall, involving a series of presentations from supervisors and managers outlining what operational cost pressures, cutbacks and spending plans each department face in the fiscal year to come.
The first presentation surrounded the costs associated with the corporate administration department — including the levels of remuneration for council.
The mayor’s indemnity was recorded in 2011 as being $57,800, and was listed in the draft budget at $61,300 — a difference of $3,500, or approximately six per cent.
Total remuneration for council was recorded at $117,750 last year, but the figure was slated to grow to $128,300 for the coming year. That would be almost an 8.96 per cent increase, or $10,550.
Coun. John Vassilaki asked whether or not council could decline the increase, much like the proposed increase for 2011 that the group voted not to implement.
Mayor Dan Ashton said the policy is to limit council remuneration to the Consumer Price Index.
Coun. Andrew Jakubeit moved that council remuneration increases, if any, be restricted to those afforded to CUPE and exempted staff, which currently sit at the CPI level of one per cent. “We should be the same. No more, no less,” he said.
Council unanimously agreed to limit remuneration increases for council to the CPI in the draft budget.
Chief financial officer Doug Leahy offered an introductory overview, noting that this was the “most extensive review” not only that the city has undertaken, but that he has seen in his 27-year career in local government.
Leahy said that the work conducted by staff so far had trimmed the city’s projected deficit by $800,000 to $1.589 million from $2.1 million.
There are already five areas identified to make up the difference. The draft budget indicates that $400,000 could be used from the interest stabilization reserve, the equipment depreciation transfer could be reduced by $300,000, between $500,000 to $800,000 could be used from the 2011 surplus or taxation could be levied. The fifth option could include a combination of any of the other options.
Here is roundup of some operational budgets per department:
• Finance department: Controller Colin Fisher described to council that the core services review undertaken in 2010 indicated that out-of-date systems in accounting involving manual inputs of data was holding back other departments from receiving timely budget information.
Upgrades to software, financial reporting and analysis procedures, implementation of performance measures and staff training are all proposed for the year. “There are some substantial changes coming to your department this year to bring it up to the 21st century,” Ashton said.
• South Okanagan Events Centre campus: Global Spectrum general manager Dean Clarke told council that the campus consisting of the SOEC and Penticton Trade and Convention Centre are tracking along the lines indicated in December: 2011 will finish with an operating deficit of $1.52 million, less than the $1.66 million projected. A $1.56 million shortfall is anticipated in 2012.
Clarke said one of the challenges moving ahead will be not having return performances by Cirque du Soleil, which was a local hit, but staff are working on annual events like the Young Stars Hockey Tournament.
He remained optimistic about the convention centre, noting meetings with former manager Jim Lowen indicate their strategies are in line with past practice and numbers are rebounding. In 2011, there were 122,770 event participant days, up from 118,971 in 2010, and non-resident delegate days saw an increase in 2011 of six per cent over 2009 figures and are tracking to be up eight per cent in 2012 and 11 per cent in 2013.
• Recreation: GM Chuck Loewen said the Penticton Community Centre and recreation department staff created a budget based on 2009 numbers, when the pool was last operational for the entire calendar year. An entrepreneurial shift has generated a list of 13 revenue-generating ventures for the department, for a total of $200,000 to the bottom line.
He expressed optimism about recreation revenues: “Aquatics has just been a huge, huge improvement,” he said. Total expenses are projected at $2.3 million, $62,935 less than 2009. He added that energy costs for the expanded pool are no more than 2009 costs, despite a hefty expansion of floor space.
• RCMP: Insp. Brad Haugli detailed the Penticton and South Okanagan detachment’s budget, which is projected to post a small increase of $100,000 to $7.6 million, due primarily to inflationary costs. No additional sworn or civilian staff are anticipated to be added for the 2012 year.
A budget bylaw is anticipated to be presented at the next regularly scheduled council meeting, set for Monday, Jan. 23.