Monday, 14 January 2013

Budget iIs A Process

Sorry. I do not understand. If you cannot discuss the specifics, what is the reason for this exercise? on A Budget Day In The Life Of
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Saturday was the day  Council  received  department overviews of  individual budgets.The schedule is planned for us.  Council approves it.
Other meetings are still to come.  
The capital budget is not completed.
Tomorrow,we will  receive the Library Board's budget . Then  we' ll  consider the operating budget.
We did have opportunity for questions on Saturday.. We did not drill down to  details of operations. We made no  decisions.
Amount to be raised as "cash to capital "was noted.  $1.39 million  give or take a thousand.
I noticed the  previous week .it takes $319.000 to raise one point in the tax rate..
I asked for confirmation that the amount raised for "cash to capital" being $3.19 million meant ten points raised  in the tax rate  to put money into reserve funds.
It was as I understood .
Councillor Pirri often feels compelled to seek answers from staff to help me understand the principles involved.
R&R  (repairs and replacement) funds in reserve help to stabilise future tax rates. 
. "Cash to capital" is the phrase used to describe taxes collected to create reserve funds to pay future capital  costs.
Even so, repair and replacement costs are always included in a current  budget. 
In  considering the capital budget, we are assured  because of having the reserves , we can  finance  needs without being  distracted by impact on  the tax rate.
It's like we found the money. 
But, as Councillor Pirri elicited for my benefit, we will  be spending $3.19 million  from reserves .so that amount needs   to  be collected  in  taxes to replenish  reserves.
It's  an  in and out item. 
Out of our pockets.
In to town coffers 
Funding  for the Culture Centre  is  showing in the budget as $361,000 for 2013.
The new contract requires the Board to  present a budget.  Council's  responsibility to provide  the funds...or not.. 
The  town's budget could be reduced by that amount 
An$100,000 for the Arboretum .
And $50,000 for the Historical Society'
With no noticeable reduction in service, we could reduce the budget by that amount.  
If we charged rent, including maintenance,we could  start  off with two points  less than the previous year.
One  point  in 2013  forecast provide for a cost of living increase in wages and salaries. Over and above  the negotiated  increase in the union contract.
Increases in pensions and benefits  are mandated by  the Province for 2013.
 1% COLA is not a requirement not should it be an expectation.
Council was not consulted.
Vacation benefits.are recommended to be "modernised"
After the re-org I  understand  new hires  started  with three weeks  vacation, 
 Policy is  for two weeks, increasing  to three after five years.
 "Modernising"  probably means adjustment.
It wouldn't be referenced  if it wasn't going to cost more.
Council's work is  still cut out for us 
                 
     

7 comments:

  1. Council should just cut away all the debris that staff has added to the pile. If there is not need, there should be no payments. Period.

    ReplyDelete
  2. 9:26 shows the simplistic approach.... Staff has added to the pile.

    What about council adding to the same pile for Petch Houses, chicane undoings, street renamings, truck paint, and so on?

    It's easy to be critical when you don't know what is truth.

    ReplyDelete
  3. Who's Telling Porkies?14 January 2013 at 12:10

    "...With no noticeable reduction in service..."

    Even as a critic of the Arboretum and Historical Society, and as an avowed opponent of the Cultural Centre, you must know that this contention is false.

    ReplyDelete
  4. @12:10, the operative word was "noticeable".

    Let's say we cut out the money for garbage collection. You would notice that fairly quickly. Or, notwithstanding these mild days, snow removal. That might catch your attention as well.

    If we never gave another penny to the arboretum folks, or the historical society, the VAST majority of Aurorans would not notice one whit.

    The same could be said of the Cultural Center largesse. Withold the stipend, and the building is still there and available for much of what happens there now, only managed by town staff, already paid for.

    ReplyDelete
  5. To 12:10 PM
    I have no criticism of the Arboretum or Historical societies in terms of goals and what they deliver or try to deliver to Aurora. What is being discussed is dollars & sense.

    ReplyDelete
  6. Ka-non said...

    ".... already paid for."

    That last part concerns me... Are they already paid for? Would the current staffing be enough if the ACC funding stopped? I am not convinced.

    ReplyDelete
  7. 8:43 AM
    Nit-picking again. Stop using the material of other people. It demeans you.

    ReplyDelete

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