BUDGET DELIBERATIONS AND CITY SERVICES

The new Council is working on the 2009 City Budget and the 5-Year Financial Plan (2009-2013). Although no specific direction has been approved yet, tough economic conditions in the City are providing an opportunity to set the City financial policy in such a way to obtain the following results:

• Reduce the fiscal pressure on the City taxpayers;
• Continue to provide a balanced set of services to the community that would guarantee a decent quality of life;
• Stop the drainage of jobs and stimulate economic conditions locally; and
• Have a sustainable budget.

The Law requires that all local governments balance their budget or in other words not carry any deficit. This requirement is a mandatory policy that is a priority over other policy considerations. Council is certainly looking at a fair mix of all these elements to provide a sound financial plan and busdget for the City.

The Finance Portfolio Chair, Councillor Barr, has met several times with staff to find ways to reduce spending and keep a viable, sustainable financial policy for the City. The Mayor and Council has met and will continue to meet with community leaders from different fields and professions to collect ideas and assist with their final budget deliberations.

The budget will have to be approved by May 15, as required by provincial legislation and a formal public consultation process will be announced as soon as a draft of the budget is finalized. Staff are also working on providing more information to the public about some consistent financial elements that are part of the budget process and will be published on this blog.

The other side of the coin is that, in order to accomplish the targets of the 2009 budget at a time of crisis, the City will have to focus on essential services and carefully distinguish critical from important. All jobs at City Hall are important, but when push comes to shove, the principle of sustainability becomes the driving factor. Some jobs will be lost as part of this whole exercise and one was already lost on Monday. It is sad to see somebody go, especially after so much hard work and dedication, but there are many people hurting in the community and the City just cannot afford further fiscal pressure on the taxpayers. There will be others, but we are certainly looking at mitigating the effects of the economy as much as we can to maintain services at an acceptable level, which means the layoffs will have to be strategically though out. Criteria such as essentiality of the position, interdependency at the organizational level, cost saving effect, workload redistribution, and many others are and will be applied in order to make these serious decisions.

WHERE IS WILLIAMS LAKE GOING?

The 2008 municipal election brought Williams Lake a new Mayor and a new Council. There are 5 new faces around the Council Table with the most noticeable one being the Mayor's. Kerry Cook is our new Chief Elected Officer and there is an excited buzz about her all around town. She has a different style of business and she is a woman, qualities that will go a long way for her in her new venture and will likely benefit the City not only in the long term but also in the short one.

But there are some peculiarities about this Council that I find interesting to point out:

• The majority of the Council members are women. This is quite unique for Williams Lake and speaks highly of a community that has been struggling to create a modern image trying to also keep fundamental elements of its traditional one, which we also market with some intensity;
• Two of the Councillors are under 30. Kudos to younger generations for stepping up to the plate and recognizing the vision of long term planning. These two youngsters will provide diverse optics with a fresh preoccupation for looking at the perspective of who is going to be here 50 or 100 years from now.
• There is a wide variety of interests represented around the table, including not only the bread and butter interest of economic necessities but also the heart of social and cultural needs, which cannot be separated from a wholistic approach to a reasonable level of life quality and enjoyment for a community this size and this type.

All of this became even more apparent when we had our Priority Setting session with the new Council in December. We worked hard for two days to identify those priorities and to set the sailing plan for the next three years.

These are the top 10 priorities (and a report is going to the Committee of the Whole Council tonight):

1. Develop and Implement a Community Safety Strategy;
2. Improve First Nation Relations;
3. Create Affordable Housing Opportunities;
4. Develop and Implement an Arts & Culture Plan;
5. Review the City Economic Development Strategy;
6. Support the Prosperity Mining Project;
7. Develop and Implement a Road Pavement Plan;
8. Develop and Implement an Integrated Community Sustainability Plan and Review the Official Community Plan;
   
9. Downtown Redevelopment;
10. Services Review.

Obviously, there are other things we are working and will be working on, but these are the 10 top goals.

You can see a copy of the report on line at:
http://williamslake.fileprosite.com/FileStorage/AC865A351BD740AA831F6740B71B02AC-January%2020%202009-A1.pdf

Williams Lake is not only 'Moving Forward' but is in fact 'A Step Ahead'.

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Budget Time for the City

Tonight we had a public meeting on budget. The newspapers already reported some information. Let me try to explain the City budget for 2008.

THE LAW
The Province wants two basic things from the City with respect to Budget: 1) that we always balance our budget (in other words, we can't have a deficit, unlike the provincial and federal governments); and 2) that we forecast a long-term plan (they want us to forecast for 5 years).

THE REALITY
To accomplish #1 (a balanced budget) we need to spend no more than what we collect in various revenues, including taxes. Fair enough! So what happened in the last few years, we have held our taxes to no increase to support an economy in crisis. In the meantime all services have gone up and so our costs. On one side we lost our revenue power because we had to and on the other side we had to pay the bills without incurring in a deficit. Last year we had to raise taxes (in 2007 the tax increase accross the board was 3.98%) and we need to do the same this year and for the next few years. The sure thing is that the tax increase for 2008 is similar to last year and it has been set at 3.9%. The forecast for the next 5 years is just that: a forecast, and it establishes a 5% tax increase for the years from 2009 to 2012. This may and, in fact I hope, it's going to, change as we review the budget on an annual basis. In other words, we need a 3.9% tax increase to balance the budget in 2008 but we don't know yet what the budget will look like in 2009 and following.

WHERE IS THE MONEY GOING?
We have two budgets. The first one is the Operational Budget and it deals with the day-to-day services we provide the community. For instance, this budget includes parks and streets maintenance, buildings maintenance, operating the pool and the arenas, city beautification, mill and fill of roads, cost of staff providing the service, policing and fire protection, garbage, etc. The costs of these services have increased up to 40% in certain areas. Probably, you have seen increases in your cost of living in other areas too, such as gasoline, food, real estate and so on. The tax increase will assist covering for our cost increases without reducing the services we provide the community. Council decided that Williams Lake deserves the current level of services and so decided not to cut any, hence the need for a tax increase. In addition there is an inflation factor, which we calculate at a 2% annual rate.

The second budget is the Capital Budget, which contains infrastructure one-time construction costs, such as the new Fire Hall we are building, new roads or reconstruction of existing roads, sewer, water, and storm sewer management systems and infrastructure, etc. We don't have enough money to even scratch the surface of what needs to be done (the total infrastructure deficit, and we are not talking new infrastructure, is about $120 million). To do some of the things we need to do we also need to borrow money and beg for grants (and we have not been that lucky on grants in the last two years). Borrowing needs to be repaid and that affects the Operational Budget as well, hence the tax increase.

WHO DECIDES?
Council makes the decision of approving the budget policies and setting the tax rates. This Council has set the following policies:

• No reduction in the current level of services provided to the community;
• Provide for a sustainable budget to support the community in times of economic downturn;
• Increase the tax base by fostering big box retail commercial, and development in general;
• Set aside $1 million a year from General Revenue to pay for infrastructure costs;
• Increase the Surplus/Contingency fund;
• Replenish the Reserve for purchasing new Equipment to provide City Services;
• Set self-borrowing as a priority rather than borrowing from financial institutions

WHAT ARE THE CAPITAL PROJECTS IN 2008?
We have 56 capital projects approved for 2008. The major ones are:

• The construction of a new Fire Hall on South Lakeside Drive and Highway 20;
• Phase 2 of the River Valley Storm Outfall (this is an environmental project mandated by the Ministry of Environment);
• Realignment of Hodgson Road and widening of the South Lakeside/Hwy 20 Intersection;
• Repaving of 7th Avenue;

The total cost for the 56 projects is divided as follows:

• New Fire Hall: $6.1 million
• Environmental (including Water & Sewer): $3.7 million
• Roads and Transportation: $2.9 million
• A variety of other expenses (including Airport improvements and Machinery & Equipment): $1.9 million

I hope I have not confused you more. Budget is not that simple as we may think. And I am the first one to admit it!

Till the next one,

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What's new at City Hall

I know, I haven't written anything for the longest time. I apologize and hope to make amends and try to write at least weekly. It's not easy but there is enough daily to have a daily report for you.
Let's see if we can catch up a bit.

BUDGET
It's that time of the year again. We have been working on the budget in the last few months and we should be able to present it to Council, officially, on Tuesady, April 15, 2008. If all goes well, we will then present it to the public at the April 22 Committee of the Whole meeting and then to Council again for final approval on April 27.

It's not been an easy exercise, but I will give you the details at the public meeting.

WATER COMMITTEE
The Water Committee has met twice and continues to gather information. The June 2008 deadline for submission of recommendations to Council may not be attainable. They are already thinking to ask for an extension. We will know better in the next few weeks, once the Committee has had an opportunity to receive all the delegations, public input, and formulated a possible strategy.

WAL MART
There is a draft agreement between Wal Mart and Pioneer Log Homes for the building of Wal Mart on South Lakeside. MOT has agreed on the standard for the road enhancements on Highway 20, South Lakeside Intersection, Hodgson Road, and the first portion of South Lakeside. The City is working in partnership with MOT and ICBC to fund and manage the road improvements. Wal Mart wishes to start the land preparation this year and costruction in the winter for a targeted opening of Fall 2009.

NEW FIRE HALL
Tenders for the cosntruction of the new Fire Hall on the Skyline property will be received by April 15. Many construction companies have expressed interest. The construction will help with plans to expand services to fringe areas like Fox Mountain, Dog Creek and Esler. Very positive. In addition, this may also help us take over Auto Extrication from the CRD.

Well let's begin with this. I promise I will be back.

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Water Conservation Plan

Tonight, the City is holding its first information meeting on our water needs. We have representatives from the Water Conservation Society, Ministry of Environment, the engineering firm ND Lea (now called MMM Group), which prepared the report on the status of water consumption in Williams Lake, EPCOR and City Staff. The Mayor and those councillors who are available will be there as well.

I think this is a great opportunity for people to understand a number of things:
1. We need to conserve our water for our future generations. We need to get out of our "selfish" box and think about our sons and daughters, our grandsons and granddaughters...and further. If we continue using our water, not only in Williams Lake, but everywhere else in the world, like there is no tomorrow, our future generations are in for a very bleak future.
2. The City is trying to find solutions. In order to find solutions, we need assistance. Community members can help, but it is not enough and we need experts as well.
3. We will never devolve our water system to any private enterprise. In fact, it is our responsibility to protect our water in a sensible and wise manner. Council is clear about that and no agreement will be signed without the people's approval.

Much more can be said. But I think of stories from my parents and in-laws of World War 2 in Italy. Water and food were, at minimum, scarce. Hunger and thirst were a reality. I wish nobody to go through that again. Canada has been blessed with wonderful natural resources and has never seen a situation when those resources were not readily available. I don't want to see that to happen. Not in my life, not in that of my posterity.

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Williams Lake Meetings at UBCM

The City was able to meet with the following Ministers:

• Premier Gordon Campbell
• Hon. John Les, Solicitor General
• Hon. Rich Coleman, Minister of Forest & Range and Minister for Housing
• Hon. Murray Coell, Minister of Advanced Education
• Hon. Ida Chong, Minister of Community Services
• Hon. Pat Bell, Minister of Agriculture and Land
• Hon. Kevin Falcon, Minister of Transportation

The topics discussed with the various ministers and the Premier were:

• Funding for the construction of a Multi-Event Centre
• Crime Reduction Assistance from the Province
• Community Forest Proposal
• Affordable Housing
• Independent Power Production Plant in Williams Lake
• Acquisition of Crown at the Airport
• Ownership of Stampede Grounds
• Thompson Rivers University and Advanced Education in Williams Lake
• Infrastructure for Highways: MacKenzie Avenue and Highway 20
• Phase 2 of River Valley Outfall Grant request
• Dog Creek Road Water Infrastructure – Joint Project with CRD
• Waste Reduction Plant – Proposal with CRD

Following is a summary of the discussion on the above-noted topics.

Multi-Events Centre:

The total cost would be in the order of $30M. The City requested the Premier and Ministers Coleman and Chong for $10M from the Province, being one third of the total cost of the project, based on two major components of the design: green building and use of enhanced pine beetle wood. The Province has requested that the City follow up closely with the Federal Government, which would be partner for another third, or $10M of the project, particularly with Minister Stockwell Day. Funding from the Province would have to come from a number of different sources yet to be identified specifically by some of the departments. Council will follow up with both the Federal and Provincial Government in short order and report back. In addition, it was pointed out to the Provincial Government that the construction of amenities such as the proposed Multi-event centre has been identified as critical in order to recruit and retain doctors and nurses to Williams Lake, which has now become an issue.

Crime Reduction:

The City listed all the initiatives taken in order to reduce crime in Williams Lake. Minister Les and his staff were impressed with Council’s action. We discussed and agreed that assistance is needed in the following areas:

• Crime Reduction Pilot Program, which was granted to the City of Prince George. This would allocate resources, human and financial, to Williams Lake at no extra cost to the City.
• Community Court, which would allow targeting efforts on repeat offenders.
• Pressure on the Judicial System as it is not responding adequately to the needs of the community, especially when it comes to those offenders that return to the Courts over and over again.

The City informed the Minister of a meeting to be held on September 28 in order to find a common strategy and actions amongst service agencies to tackle issues of non-presence at the time crisis erupt. The Minister will send senior ministry staff to attend the meeting.

Independent Power Producers Proposals:

The City discussed with the Premier, and Minister of Forest and Range, the ability of the Province to respond to the pressing demand of cost realignment with BC Hydro in order to foster more investors’ interest and ability to build clean power plants in areas of the Province such as Williams Lake, where at least 4 companies are interested to locate a plant. The Province assured that discussion will take place with BC Hydro to facilitate these projects.

Acquisition of Crown Land at Airport:

This item was also brought up at the 2006 UBCM Convention. The intent is to acquire crown land surrounding the Airport in fee simple for the purpose to allocate industrial operations. We have the support of the Province and staff will work with City staff to accelerate the acquisition process.

Highway 20 and MacKenzie Avenue Corridor:

This is a comprehensive proposal to redesign the Hwy 20/MacKenzie Ave Corridor to:

• Reduce accidents;
• Increase viability;
• Provide access to the RC Cotton Property and the Pioneer Family Land Commercial proposal

The Ministry is willing to work with the City on this matter.

Council touched base with Ministers on the following items as well:

• Community Forest Proposal. Minister was given an update on the proposal to be submitted by the end of this year;
• Affordable Housing. Minister was made aware of the no-vacancy issue we have in Williams Lake and was requested to assist with Affordable Housing.
• Stampede Ground. Minister is aware that the Stampede Ground is a grant in fee simple to the City but the use is defined for recreation purposes.
• TRU. Marketing was recognized as number one priority and the Ministry will assist and discuss this with TRU officials.
• River Valley Outfall. Ministry will consider request for grant under the Green Infrastructure Program
• Dog Creek. The request to fund a joint study of the Dog Creek area with the CRD was discussed and the Ministry of Community Services will consider the joint application.
• Waste Reduction Plant. Joint project with CRD. It was brought up to the various ministers for information with a promise to follow up in the near future with them.

Finally, I wish to highlight the fact that Williams Lake was the focus of a successful partnership with a Chinese city, which was a discussion topic at a specific workshop organized by UBCM. Councillor Ed Mead was invited to sit on the panel and gave an excellent synopsis of the purpose, scope and report of the mission. The City of Powell River is interested in exploring a partnership with the City of Williams Lake to explore Chinese opportunities as well.

UBCM Convention in Vancouver

The annual Union of BC Municipalities Conference (UBCM) is being held in Vancouver this week and it will close tomorrow. For those who are not familiar with this event, it provides three main objectives to its participants (mayors, councils and senios staff of municipalities and regional districts in BC):

• Meetings with Provincial Ministers and the Premier to discuss issues and to lobby for funds and resources for critical projects and plans;
• Plenary discussion and vote on resolutions from various municipalities and regional districts in order to lobby the Province for changes in legislation affecting local governments; and finally
• Sessions and workshops on best practices and topical issues common to all local governments.

In addition, there are other things that happen at the Conference.

• There is much networking at the political and administrative level to share ideas and to create possible partnerships and cooperations.
  
• A UBCM Board is also elected. This is very important as these individuals represent all local governments in BC and act on their behalf in many discussions and lobbying efforts with the Provincial Government and, in some instances, the Federal Government.
  
• Best Practices Awards are also given to local governments for a variety of reasons, which increases awareness of good governance at the local level in BC.
• Many products and services, most of the time at the leading edge of technological innovation, are showcased in a two-day Trade Show.

This year, the City of Williams Lake was at the front and centre of the Conference in many respects. First of all, City Officials met with the Premier and other 6 Ministers, in 7 separate, individual meetings, to discuss various issues and solicit funding opportunities for important capital projects for the community. These meetings were well received and proved to be successful (as a separate entry on this Blog will tell).

Secondly, our Mayor was interviewed by the Vancouver Sun, the Province and other media on a number of issues affecting Williams Lake, which resulted in two articles in the Vancouver Sun and one in the Province newspapers but also in News reports on CBC, Global TV and CKNW, putting our community at the centre of attention in the Province.

Thirdly, the City had a booth at the Conference to showcase the community, which was extremely successful and was visited by hundreds of delegates with very positive comments.

Finally, the City won two prestigious awards in critical areas of sustainability. The first one was the Canadian Wood Association Community Recognition Award for the beautiful wood work at the Tourism Discovery Centre, and the second was for winning the "Turn It Off!" Challenge that BC Hydro issued to all municipalities in BC, having Williams Lake been the City that saved the most energy in its buildings and facilities in its category. This went very well with the general theme of the Conference about Climate Change and Energy Conservation.

I have experienced many UBCM Conventions, but this one was, by far, the best and most fruitful I have ever attended.

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