Tuesday, November 23, 2010

Crowsnest Pass Budget 2011, Tough choices begin.

Before you know it Budget time will be here and believe me the choices will not be easy ones.

One of the toughest issues to deal with his the hiring of additional employees, on one hand you have the public perception that there is more than an ample number of employees.
Then on the other hand you have the workforce and administration that are faced with an ever changing working environment, attempting to cater to the demands of certain sectors of the public that wishes to see the Municipality provide additional services.

Previous council took the position that a hiring freeze was put into place, and instructed administration in the last budget process to get by with what they had.

What most people do not understand is that the Municipality collects approximately $6.5 million in property taxes.
Last year the municipality paid out approximately $4.6 million in wages.
On January 1st 2011 the employees are entitled to a wage increase of 4% on a payroll of the municipalities size that is an increase in cost of $184,000.

Last year the Public works dept requested an additional sewer plant operator, extra Linesman, the HR department had requested an half time assistant position.
Prior to the budget I sat on the FCSS committee where there was much discussion about hiring an additional person to handle the FCSS department.

The previous council also took the position that through better scheduling, the public works department could get by with two less casual positions.

I'm sure that administration will attempt to bring forth at least some of these positions again, if not all of them.
Cost to the budget $250,000 for the Sewer plant operator, Linesman, Assistant, and two Casual positions.
Additional person for the FCSS position $50,000.
Wage Increase approximately $184,000

Total additional cost of employees $484,000.

Keeping in mind that total taxes collected were approximately $6.5 million, which means each additional $65,000 spent results in a 1% increase in taxes.

$484,000 divided by $65,000 equals a 7.45% tax increase.

Now are there ways to avoid this tax increase? absolutely.

You can not do the positions, or you can find equivalent cuts in other areas of the operational budget.
Maybe there are services that can be cut, or inefficiences elimanated or a combination of both.

Lets not forget the $484,000 figure does not include any additional costs for the rest of the budget.

One example:
Lets think about marketing of the community, the municipality used to participate in what was know as the Marketing Consortium we placed $20,000 a year into a fund that marketed the community, well when we looked at the marketing that was being done for that money it was to say the least, very unimpressive.
Previous council stopped providing that $20,000. Now we have new councilors that are advocating better marketing of the community which I agree with, but you are not going to do anything effective for the previous dollars.
I was told by a person in another community that does a fair amount of marketing to allow at least a $100,000 per year, if you want to do a real job.
Add that to the above another 1.54%

What does that mean to the average taxpayer in the Crowsnest Pass? at $2000 a year in taxes a further 9%=$180 a year.

Just something to think about.

4 comments:

Anonymous said...

Dean
They have not even started budget yet,this is only rumours to this point.
What makes you think all of these positions will be there.
There is a rumour on the street that they are going to hire another supervisior for Public Works.

Jerry

Crowsnest Pass Home said...

You are wrong or you better be, the Municipal financial year starts Jan 1st. I would have a hard time accepting that budget has not started yet.
Based on past history I would suspect it will come to council sometime in December.
All of these positions I have listed were brought up last year.
Do I believe they will be presented in this budget? You bet.
If administration felt they were justified last year why would they not this year.

The Supervisor rumour, I have not heard yet.
But keep in mind we have a public works Director, and four lead hands to look after 20 people tops.
Also Jerry if you have the time go to the municipal web site and read the CUFF report, with special attention to his comments regarding public works.

Keep in mind another supervisor in public works will cost between wages, benefits, supplies, another pickup a minimum of $100,000 per year.

Anonymous said...

You have no idea what the hell you are talking about there are a lot more than 20 employees in public works.

Crowsnest Pass Home said...

Public Works

Five operators in each shop, one of which is the leadhand so that makes 12 operators.
Three sewer plant operators.
Two mechanics
Three electricians one of which is a leadhand.
Two facilities maintenance guys.

12 operators + 3 sewer + 2 mechs + 2 elect + 2 maint = 21 employees working under 4 leadhands

I stand corrected.