Belt Tightening Already Underway in Quesnel
Quesnel, B.C. – Quesnel City Council is taking the first of many steps it feels will be necessary to deal with the reality of impending economic hardship.
As it begins this year’s budget deliberations and strategic planning process, Mayor Bob Simpson says Council is rescinding the remuneration increase for the Mayor and Councilors approved by the previous Council, freezing the wages of senior management, and is announcing the dissolution of the City’s economic development corporation.
Mayor Simpson says his City is faced with a 2015 revenue shortfall of approximately $575,000 in order to maintain programs, services and infrastructuremaintenance spending at 2014 levels. The shortfall is primarily a result of the Canfor mill shut down, an industrial tax re‐assessment at West Fraser, wage increases, and inflation.
As well, despite the fact the City spends almost $2Million per year on capital improvements, it has an annual infrastructure deficit of approximately $2 million. In order to maintain the City’s existing roads, sidewalks, buildings and utilities Council must find an additional $2 million per year for capital spending. Mayor Simpson says failure to address the issue through cost‐saving measures and/or increased taxation will result in Council borrowing money just to maintain the City’s existing infrastructure.
Simpson says the budget process is still in the early stages but he, members of Council and senior staff decided to start the cost‐saving by passing a motion to scrap the indemnity increase for the Mayor and Councillors passed by the previous Council just before the November election. That increase was tied to the Consumer Price Index at below 2%. As well, the City Manager and his Directors have agreed to freeze their salaries at 2014 levels for this fiscal year.
The third early outcome of Council’s strategic planning process was a decision to dissolve the Quesnel Economic Development Corporation in order to bring the City’s economic development function in‐house. According to a UBCM report, the majority of BC municipalities use an in‐house model for economic development and this approach is rated as a highly effective way to do economic development by municipalities that use it.
“Council believes that an in‐house economic development function will more directly align with its strategic plan and budget constraints and, as a consequence, is taking steps to dissolve QCEDC and its Board,” said the Mayor.
The three actions taken by Quesnel Council so far will result in a combined savings of approximately $160,000 in 2015, or about 1.2% of the City’s total budget. The decisions have no impact on staffing or service levels.
Comments
Makes me wonder if our fair city (PG) would consider doing the same? Looks like new mayor and council don’t really have to go along with decisions that a previous council made.
Now wouldn’t THAT be refreshing!!
And yet the municipal elephant in the room remains. The municipal workforce is way too large. Same story in pretty much every village, district, town and city.
But a city can’t promote itself properly in far away land without a business development coordination!! ;)
Ps.
D
For a dipper this bob Simpson sure can cut costs!
No core review needed, no new city manager.
Makes you wonder if the stereotypes are true?
Freezing costs at existing levels isn’t quite the same as rolling excessive ones back. That latter is virtually impossible to do because Canadians, on average, are already over $ 1.60 in debt for every $ 1.00 of disposable income. A ratio which worsens with each passing year. And political dippers like Bob are really no different from political non-dippers on the right side of the spectrum in who they’re committed to serve first ~ those to whom that debt is owed. Until we begin to examine why things have gone this way, and continue to, no matter who we elect to office at any level of government, all we’re going to get from any of them is more ‘smoke and mirrors’.
It is time Prince George Council did the same. Too many pigs at the trough at PG City Hall. We, the taxpayers, can’t afford the lavish spending we experienced with the Shari Green administration. Make a difference Lyn Hall!!!!!
A Financial planning course in high school would prevent a certain ammount of this $160/$1.00 ratio,but easy credit and “I need it right now” attitude is prevalent. Don’t forget that 40% of people have no debt, so is 1.60 really the true number for most.
Mayor Simpson and council are demonstrating good leadership skills, and although the savings realized by cancelling their raises does not amount to a lot of money, it sets the tone; fiscal responsibility.
Impressive. I hope someone at P.G. City hall is paying attention.
by cougs79
“A Financial planning course in high school…..”
That, and lessons on how to curb the desire for instant gratification.
It is never too late, start now!
metalman.
Finally!!! Congratulations Bob, I hope that this is just the beginning of assisting Quesnel to an economic recovery.
Take it further and get rid of the negativity of the staff at City Hall. For years the “Quesnel Klick” have been holding back attracting growth and development to the community. It is probably one of the most negative communities in the Province to get anything done in. Look at the building starts, almost zero, in a community that has remained a steady population growth of 5% since 2006 (Stats Can figures). Even the recent BCNREB showed a steady growth of Single Family Residential prices from $193,353 in 2012 to $212,152 in 2014. One of the most inexpensive places to live in BC; great schools; community services; lots of recreation; all it needs is a proactive approach to attracting the investment in the community that is needed. It has Highway 97 running right through it, yet development is not encouraged to take advantage of that traffic. Commercial and industrial development should be courted and assisted. With some of the lowest priced residential lots in the Province, smart builders should be taking advantage of those opportunities. Showcase the opportunities, Bob. It will grow your tax base, ease the need for cuts of services, and create employment.
Get rid of all those negative ninnys, and create a positive environment. You might be very surprised how much a little “proactive” work can turn around the community.
That’s the common response, cougs79, and metalman. Some truth in it, too. As it applies to many individuals. Some are indeed ‘shopaholics’. But where would the economy be if everyone “lived within their means?” I think an awful lot more people would be absent from having any ‘means’, since their continued employment is contingent on whatever they’re involved in providing, some good or service, that’s actually selling. And if $1.00 from employment can’t buy
$ 1.60 worth of stuff now, then how is it going to be able to sometime in the future?
I agree with some of that,but most consumer debt is going to financial institutions that provide very few jobs in the whole scheme of things. A person who is debt free has lots of expendable money to put into the economy as well. This is a timing thing to me. Pay hard on the front end and you can spent whatever you like on the back end, or pay hard all the way along and live with all the extra stress that goes along with it. The difference is only about 10-15% on the front.
I find that most people would rather give money away to interest charges, or to the government than read a couple books and educate themselves a little bit financially. It is a head scratcher for sure, but like you say it keeps our consumer driven economy cruising along to some extent.
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