Forgotten Assets: City's Proposed Spending On Infrastructure Is Down

Monday, February 21, 2011 03:56 AM

Prince George, B.C. - While City Staff faced a number of very immediate challenges to preparing a budget that stuck to Council's 2.5-percent ceiling on taxes this year, the 2011 budget book also shows one area that appears to have quietly fallen by the wayside, but could produce some long-term pain - asset maintenance.

The total value of infrastructure in the City of Prince George is approximately $1.6-billion dollars, and while managing those physical assets is part of the city's strategic plan, the money being proposed to maintain them this year is down considerably over 2010.

For the first time, the city's budget book this year shows the proposed funding for asset maintenance in each of the city's three funds: general, water, and sewer.

In previous years, that line item was included on the capital expenditure side, but was moved to be in accordance with Public Sector Accounting Board practises. In pointing out the change to Councillors, the City's Manager of Financial Services, Sandy Stribany says operational maintenance keeps assets in the condition to meet the expected operating standard, while capital maintenance would be something that improves or extends an asset's life. "So we wanted to bring forward information so that you could see where we need to go in terms of improving our operational budget to cover funding for that," Stribany says.

Here is a comparison of funding for asset management between the budgets in 2010 and this year:

2010 2011

general fund asset maintenance $2.3m $536K

sewer fund asset maintenance $530K 0

water fund asset maintenance $25K 0

To date, asset maintenance has been funded from city reserves.

City Council will meet on Wednesday for the third round of budget deliberations - snow removal and road rehabilitation will be on the agenda. While staff managed to keep the overal hike in the tax levy to just under the directive, at 2.4-percent, Councillors will also be considering a special levy of 2-percent to begin collecting capifal funds for the 2015 Winter Games at the final budget meeting on February 28th.

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Posted on Monday, February 21, 2011 03:56 AM in News by 250 News

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Comments

Posted by: lonesome sparrow on February 21 2011 11:08 AM

This can be explained in three words...November Municipal Elections. City staff was instructed to hold the tax increase to 2.5%. Instead of making hard choices and finding real savings in the budget they simply chop items like this that will not be noticed in the short term.

Posted by: Palopu on February 21 2011 11:12 AM

I think you are right lonsome sparrow. All hell will break loose in the taxing department in 2012, after the elections.

Posted by: He spoke on February 21 2011 12:42 PM

Your spot on, November election will inform us which way our city needs to go.

I do believe we have about 750 employees at the city, same as we did 35 years ago. The difference is, back then there was 100 administrators and 650 outside workers, likely now there are 450 administrators and 300 outside workers. As a taxpayer, we don't mind supporting the 300 outside workers to mind the sewers, pick up the garbage, keep the roads clear, fill in the potholes etc. We can not understand the justification of 450 in administration.

Hooray for the next mayor, who will take on the unions and the city hall administration. There is no reason why the four season, Aquatic center, Coliseum, Kin 3, Elk and CN Center general administration and operation can not be contracted out.

Encourage the group of people to be independent contractors and have them bid on it. why not!

Administration, Last count, I think it mentioned 72 people getting paid over a $100,000 a year. i own my own business, I don't pay myself that much. Justify, why a person that puts in 200 days a year is worth that kind of money. I can't, and I am paying their wages. I think its time to start attrition. i think the war against public employee wages are going to start in the next ten years.

I believe a skilled worker is worth $30.00 an hour with minor benefits.

I believe a person with a University degree practicing what he went in for, is worth $75,000 a year if he/she is at it for five years.

I believe a unskilled worker/clerk is worth $15 to $18/ hr

I believe that a person supervising more than 5 workers should get an extra $3.00 hr.

I believe a department head should get $96,000 a year, and second in command $80,000

The City Manager should be in the range of $120,000

Posted by: lonesome sparrow on February 21 2011 2:08 PM

An Imaginary Race

Prince George and Quesnel decided to engage in a race on the Fraser River. Both teams practiced long and hard to achieve their peak performance levels. On the big day they felt ready. Quesnel won by a mile! Prince George moral sagged! City Management decided that the reason for the crushing defeat had to be found, so a consulting firm was hired to investigate the problem and recommend corrective action.

The consultant's findings? The Quesnel team had eight people rowing and one person steering ; the Prince George team had one person rowing and eight people steering.

After a year of study and millions spent analyzing the consulting firm concluded that too many people were steering and not enough rowing on the Prince George team. So, as race day neared again the following year, the Prince George team had completely reorganized.

The new structure ....four steering managers, three area steering managers and a performance review manager for the person rowing the boat, to provide incentive.

The next year the Quesnel team won by TWO miles!!!!

Humiliated, Prince George fired the rower for poor performance and gave the managers a bonus for identifying the problem.

(old Canfor Northwood joke :-P

Posted by: Harbinger on February 22 2011 11:33 AM

During the next election I suspect the incumbents at city hall will tamper with the water supply and put in amnesia pills in a high dosage, just to assure their re-election. It happens every election. Replace every single one of them. Keep doing it every four years until we find the right people. What have you got to lose? You are already overtaxed. Ya won't even notice the difference. Just say no to every incumbent.