'You just don't please everybody'
Published Saturday November 7th, 2009
Government: City officials are expecting an exceptionally difficult budget process this fall
BATHURST - Burning the midnight oil. Sharpening those pencils. Crunching the numbers.
Any cliche will work when it comes to the task ahead for the City of Bathurst management team and city council.
That task is drafting the 2010 operating and capital budgets, which is never easy in the face of public pressure to hold the line on taxes while maintaining the current level of municipal services.
"You put so much effort out there to try and hold the line "¦ try to reduce costs "¦ and then you just don't please everybody, there's no way you can," said Mayor Stephen Brunet, speaking with The Northern Light after an information meeting of council on Oct. 26.
"No matter what you do, you can't win," said Deputy Mayor Graham Wiseman, speaking during the meeting.
The comments followed a presentation by André Doucet, city manager and treasurer, who gave financial projections for each city department for the year ending Dec. 31.
There are some projected surpluses - $74,000 in the General Operating Budget and $102,000 in the Utility Operating Budget (water and sewer) - but the problem is next year's numbers: the city is looking at an additional $1.56 million in costs.
The good news is that department heads started buckling down at the outset of this year, working to find ways to offset those extra costs.
"I met staff every week, at the beginning of the year, and we identified areas that we can save, increase our additional revenues, and we came up with almost $900,000 in savings and additional revenues," Doucet said.
Looking at 2010, he said there's half a million dollars in debt cost to contend with, along with wage increases and a deficit in excess of $500,000 that was incurred last year.
"(There's also) increasing costs even for the snow plowing operation"¦ We already know that's going to cost $40,000 more next year because of the increase in hourly rates we'll be charged," he continued.
"So if you include all of this, we know that we have a $1.5 million additional cost to cover."
The city expects word from Fredericton this month on how much the provincial government's unconditional grant for Bathurst will be for 2010, along with what next year's tax base will be.
"Once we know that, we'll know exactly what will be the final impact"¦ Right now, we still stand at a $750,000 shortfall," said Doucet.
He said that for 2009, the unconditional grant accounted for $2.6 million of the city's $19 million general operating budget.
Doucet expects to bring the operating and capital budgets in draft form to council by mid-November for them to start looking at, and figuring out what their priorities are for expenditures.
As evidenced by comments around the council table at last week meeting, everyone is well aware of the challenges that will be faced during that process.
"The budget process is going to be very difficult this year," said City Councillor Scott Ferguson.
He noted how Bathurst has the second largest geographical area among New Brunswick municipalities, and yet has the lowest population.
The 1981 Canadian census said Bathurst's population was 15,705; by the 2006 census, it had dropped to 12,714.
Coun. Danny Roy said he believes the public understands council was elected on "a platform of being fiscally responsible," and said the shaving of next year's expected additional costs, from $1.56 million down to $750,000, shows the city is on "the right path."
Mayor Brunet indicated things are not all doom and gloom, and noted there are new businesses coming into the city, which helps the tax base, such as the Hyundai dealership now under construction on Tetagouche Hill.
He said there are also an increasing number of people moving to Bathurst to retire, which again helps the tax base.
"Not in droves but there's a good number. Talk to some of our developers and people who sell homes, and they say more people are coming back to retire," said the mayor.
The budgets are usually approved by council in December.
For the past three years, the City of Bathurst has been able to hold the tax rate for local property owners at $1.75 per $100 of assessment.
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