mr.x
Jun 6, 2008, 1:58 AM
Study bashes reckless city spending
Budgets are growing faster than population
Bruce Constantineau, Vancouver Sun
Published: Thursday, June 05, 2008
Most B.C. municipalities spend far too much money, thereby putting constant upward pressure on property taxes, according to a Canadian Federation of Independent Business study.
The study found that 59 of 65 B.C. communities increased their operating budgets by more than their combined population and inflation rates between 2000 and 2006.
Only Port Alberni, Prince Rupert, Castlegar, Qualicum Beach, Terrace and Powell River had budget increases below the population and inflation rates.
Total operating spending at B.C. municipalities increased by 36 per cent during the period, while inflation and population grew by a combined 20 per cent.
That caused more than $500 million in overspending in B.C. municipalities in 2006, the study said.
"People's incomes aren't growing much faster than inflation so when you increase spending more than inflation, taxes and fees will likely go up faster than inflation," CFIB vice-president Laura Jones said in an interview. "You cut into people's standards of living when you do that."
The study placed West Vancouver at the top of the list of big-city overspenders -- with spending growth of 62.1 per cent and population and inflation growth of just 15.8 per cent.
Port Moody came closest among large communities to maintaining spending levels on a par with inflation and population growth -- with spending increasing by 44.2 per cent while population and inflation grew by 39.5 per cent.
West Vancouver Mayor Pamela Goldsmith-Jones said the 2000-to-2006 study period reflects a time when her community began an ambitious improvement program of its recreation facilities, including a new swimming pool, a new community centre and turf playing fields. She said the improvements clearly increased operating costs.
Goldsmith-Jones said West Vancouver also began a new program to provide its own water supply and mandated water meters to promote conservation, measures which also raised costs.
"We added recreation services that were long overdue and set out to be in charge of our water supply and there is a price for that," she said in an interview.
Goldsmith-Jones said she agrees with the need to contain municipal operating costs, noting West Vancouver has a fiscal sustainability task force and a finance committee with five citizens as members.
"We agree you can't just assume that people can continue to pay," she said.
Port Moody Mayor Joe Trasolini said running a city is similar to running a public business, with residents as shareholders and council being accountable for the bottom line.
He noted city staff originally asked for a tax increase of 8.5 per cent this year, but cuts were made to reduce the increase to 3.5 per cent.
"The first year I came into office there were 20 city departments," Trasolini said. "We eliminated four departments and turned them into two, which cut more than half a million dollars from operating costs."
The CRIB study recommends a complete review of current municipal spending and passing laws to limit spending and taxation to population and inflation growth.
Goldsmith-Jones said if municipal governments had controlled spending during the study period, B.C. property taxes would be about 17 per cent lower than now.
She agrees there may be extraordinary circumstances requiring local governments to spend more money on pressing issues, but excessive spending patterns can't be maintained. "If you spend more than inflation and population growth over time, where are we going with this? When is it going to stop?"
bconstantineau@png.canwest.com
WEST VANCOUVER
Population in 2006: 44,272
Growth in operational spending 2000-2006: 62.1%
Growth in population and inflation 2000-2006: 15.8%
PORT MOODY
30,120 :Population in 2006
44.2% :Growth in operational spending 2000-2006
39.5% :Growth in population and inflation 2000-2006
---
Other large municipalities, as ranked worst to best Spending Pop., infl. growth growth
North Van District 43.1% 15.2%
Prince George 33.8% 13.0%
Port Coquitlam 50.0% 19.7%
Vernon 46.9% 19.4%
North Van City 50.7% 21.8%
Victoria 35.0% 15.9%
Chilliwack 56.1% 25.6%
Penticton 44.0% 20.7%
Vancouver 35.8% 17.4%
Richmond 36.7% 18.1%
Coquitlam 31.8% 16.4%
Saanich 31.4% 16.3%
Surrey 52.3% 28.0%
Kelowna 50.9% 27.8%
Langley District 41.6% 24.4%
Burnaby 27.4% 16.4%
Campbell River 31.4% 18.9%
Kamloops 29.2% 17.6%
Maple Ridge 53.6% 32.9%
New Westminster 21.4% 13.5%
Langely City 29.6% 18.8%
North Cowichan 31.0% 20.7%
Abbotsford 33.9% 22.7%
Delta 21.4% 14.6%
Mission 28.6% 22.4%
Nanaimo 25.3% 20.8%
Source: Canadian Federation of Independent Business
Budgets are growing faster than population
Bruce Constantineau, Vancouver Sun
Published: Thursday, June 05, 2008
Most B.C. municipalities spend far too much money, thereby putting constant upward pressure on property taxes, according to a Canadian Federation of Independent Business study.
The study found that 59 of 65 B.C. communities increased their operating budgets by more than their combined population and inflation rates between 2000 and 2006.
Only Port Alberni, Prince Rupert, Castlegar, Qualicum Beach, Terrace and Powell River had budget increases below the population and inflation rates.
Total operating spending at B.C. municipalities increased by 36 per cent during the period, while inflation and population grew by a combined 20 per cent.
That caused more than $500 million in overspending in B.C. municipalities in 2006, the study said.
"People's incomes aren't growing much faster than inflation so when you increase spending more than inflation, taxes and fees will likely go up faster than inflation," CFIB vice-president Laura Jones said in an interview. "You cut into people's standards of living when you do that."
The study placed West Vancouver at the top of the list of big-city overspenders -- with spending growth of 62.1 per cent and population and inflation growth of just 15.8 per cent.
Port Moody came closest among large communities to maintaining spending levels on a par with inflation and population growth -- with spending increasing by 44.2 per cent while population and inflation grew by 39.5 per cent.
West Vancouver Mayor Pamela Goldsmith-Jones said the 2000-to-2006 study period reflects a time when her community began an ambitious improvement program of its recreation facilities, including a new swimming pool, a new community centre and turf playing fields. She said the improvements clearly increased operating costs.
Goldsmith-Jones said West Vancouver also began a new program to provide its own water supply and mandated water meters to promote conservation, measures which also raised costs.
"We added recreation services that were long overdue and set out to be in charge of our water supply and there is a price for that," she said in an interview.
Goldsmith-Jones said she agrees with the need to contain municipal operating costs, noting West Vancouver has a fiscal sustainability task force and a finance committee with five citizens as members.
"We agree you can't just assume that people can continue to pay," she said.
Port Moody Mayor Joe Trasolini said running a city is similar to running a public business, with residents as shareholders and council being accountable for the bottom line.
He noted city staff originally asked for a tax increase of 8.5 per cent this year, but cuts were made to reduce the increase to 3.5 per cent.
"The first year I came into office there were 20 city departments," Trasolini said. "We eliminated four departments and turned them into two, which cut more than half a million dollars from operating costs."
The CRIB study recommends a complete review of current municipal spending and passing laws to limit spending and taxation to population and inflation growth.
Goldsmith-Jones said if municipal governments had controlled spending during the study period, B.C. property taxes would be about 17 per cent lower than now.
She agrees there may be extraordinary circumstances requiring local governments to spend more money on pressing issues, but excessive spending patterns can't be maintained. "If you spend more than inflation and population growth over time, where are we going with this? When is it going to stop?"
bconstantineau@png.canwest.com
WEST VANCOUVER
Population in 2006: 44,272
Growth in operational spending 2000-2006: 62.1%
Growth in population and inflation 2000-2006: 15.8%
PORT MOODY
30,120 :Population in 2006
44.2% :Growth in operational spending 2000-2006
39.5% :Growth in population and inflation 2000-2006
---
Other large municipalities, as ranked worst to best Spending Pop., infl. growth growth
North Van District 43.1% 15.2%
Prince George 33.8% 13.0%
Port Coquitlam 50.0% 19.7%
Vernon 46.9% 19.4%
North Van City 50.7% 21.8%
Victoria 35.0% 15.9%
Chilliwack 56.1% 25.6%
Penticton 44.0% 20.7%
Vancouver 35.8% 17.4%
Richmond 36.7% 18.1%
Coquitlam 31.8% 16.4%
Saanich 31.4% 16.3%
Surrey 52.3% 28.0%
Kelowna 50.9% 27.8%
Langley District 41.6% 24.4%
Burnaby 27.4% 16.4%
Campbell River 31.4% 18.9%
Kamloops 29.2% 17.6%
Maple Ridge 53.6% 32.9%
New Westminster 21.4% 13.5%
Langely City 29.6% 18.8%
North Cowichan 31.0% 20.7%
Abbotsford 33.9% 22.7%
Delta 21.4% 14.6%
Mission 28.6% 22.4%
Nanaimo 25.3% 20.8%
Source: Canadian Federation of Independent Business