City council wants its outside boards and agencies to find their own savings.
Since 2010 the city manager’s office has found nearly $5 million in savings through cost containment, the CITYLean program and a core business review. Council heard a report Monday night that will find $1.5 million in savings this year. While most councillors thanked city staff for finding the savings, Coun. Paul Pugh said the $1.5 million is an arbitrary target.
“In some cases it sets the city up for failure,” he said. “Mathematically it’s guaranteed.”
The idea is to find those savings without impacting user fees or services. While it’s worked so far, the report states it will becomes more difficult to do that in the coming years.
Administration looked at outside boards and agencies this year and found $14,300 in total savings. Most of the money would be from software maintenance and some utilities. The report recommended that council support the savings but an amendment, approved by councillors, chose to encourage that boards look for savings.
“These are savings that exist” city manager Tim Commisso said. “We’ve identified them.
Coun. Joe Viridramo, who moved the amendment, said a board sets up its budget, which is then approved by city council. Coun. Iain Angus said there are better ways to have the savings identified.
“In terms of process this is getting a little clumsy,” he said.
Council also received a 2013 budget update that projects a nearly $1 million unfavourable variance by the end of the year. Despite the negative outlook, city finance manager said the city has had a surplus for seven years in a row. Coun. Aldo Ruberto said it drives him crazy that people think an unfavourable projection means the city is overspending.
“We’re doing great” he said.
If the city was over budget by $1 million at the end of the year, it would still be on target Bush said. The money would be about half of one per cent of the total budget. A budget is on target when it’s plus or minus five per cent she said.
“I think that’s what people need to know,” Coun. Andrew Foulds said.
The report, for information only, states that the city is currently around $2.5 million over but reserves and some provincial funding would bring it to the $900,000 mark.
Infrastructure and operations takes up more than $1.5 million of the unfavourable variance, with more than $1.3 million of that due to winter’s extended stay in the city this year. But with the city’s winter control reserve fund in excess of $2 million, Commisso said the costs should be covered unless the snow flies early.
Legal services weighs in next with $435,000. Some big files, including a coroner’s inquest into the deaths of First Nations youth, a class action lawsuit due to last year’s flood and Resolute’s tax assessment are contributing to the increase.
Although Superior North EMS reports is on the books for $315,000, a recent confirmation that the province will fund a new ambulance knocks that down to $130,000.
Winter control wasn’t’ the only thing hit by bad weather as a late start to the golf season has that department looking at an extra $150,000 by the end of the year. A late start means less rounds and less revenue.
