Philip Mcleod

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WEDNESDAY, JUNE 19, 2013

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Another tie delays the zeros

BLOG #701: Paul Van Meerbergen was there for city council Tuesday, but Stephen Orser went home sick. And that left city council still stalled at 7-7 in the battle to set a 2013 budget target at zero tax increase.

Wednesday, June 27, 2012 – London

Politics, someone mused at city council Tuesday night, is a funny thing.

Well maybe funny isn't the most appropriate word in the circumstances. Perhaps strange would be a better choice to explain why your elected leaders tied at 7-7 once again in their search for an appropriate target to start the 2013 budget process.

Yes, Paul Van Meerbergen was in attendance. But Stephen Orser wasn't, he having withdrawn claiming illness just at the start of the debate. Councillors Van Meerbergen and Orser are both zeroes when it comes to civic finances.

So, as had been the case the previous night at committee, the vote to set the target for next year's budget at zero has been deferred to the next council meeting, to be held July 24 when there may or may not, given it is the holiday season, be a full complement of council members present.

Although Tuesday's debate covered much the same ground as the previous day – that zero would cause “massive staff layoffs and unprecedented service cuts” as claimed by one side, or could be fairly easily accomplished by “thinking outside the box, doing things in new ways” as claimed by the other – it was far more personal and bitter.

Nancy Branscombe, for example, staked her continuance as chairperson of the services review committee on her council colleagues committing not to raid reserves to balance the budget, as happened this year to balance the budget. That idea was rejected on a 7-7 vote.

“We can’t continue using reserve funds and have any kind of long-term stability,” she said. “I can’t support that. (Zero) will mean massive layoffs, no community funding, no new projects, no economic development funding, no transportation master plan. That can be done, but council needs to be honest with the public about what it is going to mean. Just because election promises were made there are going to be big casualties this year.”

Not so, said Mayor Joe Fontana, who then declared he was “getting a little tired about getting threats that I won’t do this or that. We are democratically elected to do our work, no pre-conditions. The worst of this council is very disheartening. What’s wrong with trying to tell our community that we want to try and control our costs? We are not proposing to cut taxes. We are proposing to take the taxes given to us and get the best bang for the buck.”

Dale Henderson declared getting to zero “is going to be easy if we change how we live” – this despite a staff warning it will require $25 million in cuts on top of the $24 million which has been trimmed in the past two years. Not to worry, said Councillor Henderson: “There are ways of doing things we just don’t look at. A paradigm shift is needed in the way we buy things and do things. Taxpayers can’t keep paying.”

One suggestion for doing this differently: “We have to go to zero based budgeting.”

Turns out, though, the services review committee is already moving that way in several departments starting with this budget cycle. Although it’s long been approved, Councillor Henderson didn’t seem to know that.

Joni Baechler teed off on council members who find it “so easy to sit here and say zero and then do nothing, absolutely nothing, not even offer up a suggestion for one cut. Half of you don’t understand what growth and non-growth is, what is capital cost and operating cost. There’s no rational thought to some of the conversations. I won’t support zero because it is a lie.”

That got Joe Swan fired up. “People’s positions are so rigid they have left the room.” He then declared he’d be happy to chair a committee to determine how best to get to zero. “We will do the hard work, look for revenue growth, look for the cuts. There are many ways we can make this happen. We are hard-working intelligent people. We are not dumb. I take offense from some members of council that we don’t know what we’re doing. So step aside. Lots of us will be happy to do it.”

There were no immediate takers to his request for committee partners, nor was it clear Tuesday night whether the existing committee is still functioning.

And so it went. Nowhere for now, as it turned out.

We are, clearly, going to get a resolution at some point, probably whenever an odd number of council members turns up for a meeting. Whatever happens, though, it would seem about half the group won't support it.

But on any night in the future when all 15 members of council are present, clearly those who back setting zero as the starting point for this year’s budget will win, 8-7.

Comments   

 
+2 #18 RE: Another tie delays the zerosPeter Griffith 2012-06-28 20:48
Thanks Sandy. I did notice this little gem from Martin Hayward, the City Treasurer, Chief Financial Officer:

"in order to achieve the property tax levy target of 3.8%, 2.0%, and 0%, it is recognized that unless sustainable additional non property tax supported revenue is realized, the services the City provides both directly and indirectly would have to be reduced to some extent."

Didn't the Mayor promise no service reductions with his 0% increases?

gryff :)
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-4 #17 RE: Another tie delays the zerosElaine Murray 2012-06-28 19:39
I don't think Nancy Branscombe or Joni Bachelor could get any more arrogant. If I have to hear from them two blowing their own horn on how they are smarter and better than anyone else on council, I think I am going to gag.

Nancy and Joni's hostility towards the Mayor and the majority of other council members, has got to the point of no return.

The Mayor would be smart to take them up on their threat and remove them from the service review committee, as there is a good chance they are going to sabotage it anyway.

As a taxpayer I don't want 'tax em' to the hilt councilors on a review committee that refuses to consider the will of the majority of Londoners.
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+1 #16 SallySally Field 2012-06-28 16:44
Quoting joneil:
Quoting David Dimitrie:
In any Corporation, private or public, 60 to 80% or more of gross revenue goes to paying wages, benefits and in many cases the costs of benefits of those retired.


I've seen cases where wages and benefits have gone over 80%, so I think you are dead on that point.

Still, some of the "cuts" proposed I think are not a bad idea. For example, turning off streetlights in the middle of the night.
Sometimes I am working at 3 or 4 am in the morning, and I can drive from one side of the city to the other a barely see a dozen cars in total. Even if it was not a cost saving measure, why not turn off or turn down some street lights at that time just for the principle of saving energy?


Turn off street lights at night? How about making sure they work at all? The one on my street has been broken for years. I have seen them come to fix it, but it is still broken.
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+2 #15 RE: Another tie delays the zerosSandy Levin 2012-06-28 15:52
Peter if you go to the agenda of the June 25th Strategic Priorities Cte meeting, which can be found at the city's web site, you will find the budget changes needed to cut $25 M. I didn't find any that were one time revenue sources, but I could have missed it. It should be required reading for citizens.
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+5 #14 New MPAC Assessments for Old South/North coming soon!Anne Klein 2012-06-28 14:53
Quoting Gregory Playford:
I have a nice house in Old South and the cost to me of a 2.8% increase is about $150. a year. It is a small price to pay to retain good bus service, limit lay-offs at City Hall, keep pools and day cares open and continue to support new affordable rental housing. I'd gladly pay it just to rid us of this annual haggling at Council. There are too many constructive things that are not being addressed.


Hopefully MPAC completes the new property assessments for Old South and Old North properties soon. London knows the property values in these areas do not currently have a property assessed value. Until resolved London will continue to have MAJOR tax shortfalls. Hopefully London council pushes MPAC to complete in time for this years budget.
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#13 RE: Another tie delays the zerosPeter Griffith 2012-06-27 21:25
Quoting Sandy Levin:
city had to use one time money (no repeats)


Sandy, if there are "no repeats" is that included in the $25 million shortfall that is being used - or will it be in addition?

gryff :)
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+4 #12 RE: Another tie delays the zerosSandy Levin 2012-06-27 21:00
What gets missed in the argument is that in order to cut $18 M last year, the city had to use one time money (no repeats), some service changes, eliminating positions, added revenue (parking fees, user fees) AND provincial uploading of Ontario Works. Eventually one or more of these "sources" run out. The easy stuff has been done. And as far as getting rid of assets, who would buy a facility that doesn't make money (convention centre)?
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-1 #11 Austerity budget time LondonPhil Simms 2012-06-27 16:08
Introduce austerity budget to resolve inefficiencies of a bloated bureaucracy NOW. NO more tax increases.

Eliminate all non essential services and staff immediately.

Reduce benefits and retirement packages. Require greater contributions by employees.

Unload all non-essential services and assets; the John Labatt Centre, the Dearness home, etc. Tender out Storybook Gardens. Eliminate summer student hires. Introduce and increase parking fees to all municipal employees who park a vehicle on city property. Contract out all services for every recreation facility. Eliminate the Commissionaires . Increase By-Law Services to reduce Policing costs. Create volunteer fire positions. Increase e-Commerce and online services.

License City Works Yards to legalize lunch time gambling.

Charge fees to inspect and permit outdoor fire pits & add health tax.

Demand the utmost fiscal and responsible bureaucracy for London.
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+5 #10 RE: Another tie delays the zerosSandy Levin 2012-06-27 14:39
Brenda, under Council procedures, the Mayor does not break a tie. The Mayor, like the rest of Council, only has one vote.
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+5 #9 RE: Another tie delays the zerosGregory Playford 2012-06-27 13:06
I have a nice house in Old South and the cost to me of a 2.8% increase is about $150. a year. It is a small price to pay to retain good bus service, limit lay-offs at City Hall, keep pools and day cares open and continue to support new affordable rental housing. I'd gladly pay it just to rid us of this annual haggling at Council. There are too many constructive things that are not being addressed.
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