Making a Budget

ORIGINALLY POSTED MARCH 2, 2007

The town is a substantial organization.

Corporate Services includes Bylaws, Human Resources, Information, record keeping, miles of minutes, agendas, public notices, Elections, Licences and Permits. They produce most of the paper.

Leisure Services have town buildings, leisure facilities and parks within their domain. Planning has fourteen people toiling mightily to make sure the town's growth meets our standards. They too produce tons of paper.

The Chief Administrator has Communications and Economic Development under his wings. Financial Services look after purchasing, accounting, payroll, financial analysis, budgeting, tax billings and collections. The Director presides over all, looks after investments and provides advice to council.

Fire Protection is a joint service with Newmarket.

Legal Services looks after litigation, subdivision agreements, contracts, litigation, property acquisitions and sales, and more litigation, as well as legal opinions to council. Sometimes they mix up in the political.

The Building Department processes permits, does inspections and stuff like compliance with zoning, the Ontario Building Code and the sign bylaw.

The Works department looks after the down and dirty.

The Library is a separate authority. In recent years, the Librarian is a member of the town's management team and of course the board's budget is included in the town's.

We have 206 part-time and 150 full-time employees. The library has 43 full-time staff.

Each department head prepares a budget which they submit to the CAO and the Chief Financial Advisor. They get worked over pretty well at that point. They have to be justified.

Operating budgets are based on previous years’ expenditures, increases to maintain existing level of service, desirable improvements for the upcoming year, capital forecast items, stuff referred by council with requests from various community organizations.

Capital Projects as a result of growth are 90% paid for by development charges from home, industrial, and commercial builders. Nobody escapes DC levies. In a year of high development, millions of dollars come in to the town coffers.

Revenue from cash in lieu of parks flows mainly from commercial and industrial development.

In 2005 we issued 5 residential permits. In 2006 over 1100 were issued. Cash infusions can vary substantially from year to year.

Development charges are not free money. The town has to specify why they are needed. They can only be spent for that purpose.

The town must calculate the development charge on the basis of community needs for five year period.

If we fail to use funds collected for the purpose, that need cannot be used in the next round of calculations. It is by using the funds, the need is established. If we didn't use them we cannot again claim they are needed in the next round of calculations.

The foregoing is a bird's eye view, me being the bird, of the making of a budget It is an expert process. Except for political input, there is nothing haphazard about it.

In 2005, the town aimed for completion of the 2006 budget by December 31st. With the objective of an early start on tenders. Early calls mean better prices. In 2006, we had the election but staff were ready with a schedule of dates to start in December for our part in the process. Councillors were not ready. The dates were changed. It's not enough to try to accommodate eight councillors and the Mayor, they want to accommodate the entire community.

Here is where I part company with my colleagues. It's hard enough to get eight councillors and the Mayor together at one time. The priority has to be to get the job done. The entire community is not much interested in the process. They elect and pay a council to do it.

So far - two Saturdays and several evenings have been spent in budget discussions. Not decisions per se, just chat. Meetings have been scheduled for three more evenings and a full Saturday.

We have yet to tackle the operating budget. We will not finish before April. At this rate, for the 2008 budget to be completed by December 31st 2007, we will have to start again in August .

We do not sit alone chewing the ends of our pencils going over all the figures. Staff have to do their due diligence prepare a responsible budget, manage the town's day to day operations, watch over us and hold our hands while we examine it minutely to make sure they did it right.

It doesn't have to be like that.

Council is earnest and committed. Their intentions are to do the best job possible.

Hands-on management of the municipal operation is not our job. We receive a budget which has been carefully and professionally prepared. with stuff added by the council. This year, the proposed increase was an untenable 12%.

What we have to examine are the projects that are foolish, self-indulgent and extravagant. Projects that were promoted for the sake of the election. Extravagant projects that benefit one neighborhood at the expense of everyone else and cannot possibly be repeated throughout the town. Projects that are just plain silly. Projects because they are part of the five year forecasts but not necessarily needed or because the last Council didn't want to say no and referred them to budget instead.

Our job is not difficult. It is not time consuming. It is just doing what needs to be done to fulfill our commitment to control taxes.



The budget is a time of reckoning.