SYDNEY, N.S. — A mock city hall cost-cutting exercise shows that a 10 per cent decrease to the municipality’s operating budget would mean significant service reductions and jobs losses.
In a presentation to council on Monday, CBRM chief financial officer Jennifer Campbell outlined the effects the hypothetical cuts would have on the municipality. She said the exercise focused on about two-thirds of the local government’s $147-million annual operating budget with the $103-million figure representing costs within the municipality’s direct control.
All CBRM departments contributed to the exercise that council opted to undertake late last year in response to a $220,000 province-funded study, conducted by the accounting firm Grant Thornton, that in its final report suggested the municipality will continue to struggle financially unless significant strategical, operational and policy-related changes are implemented.
Campbell said a 10 per cent cut would lead to service casualties such as heavy garbage, waste drop-off sites and bylaw enforcement, while reductions would occur in transit, road maintenance and winter operations. Additionally, an estimated CBRM 75 jobs would be lost. Campbell also said the cuts would meant that funding for community events, low incomes assistance and summer students would come to an end.
“These cuts are not recommendations from any member of senior management for consideration, nor will they be included in the upcoming budget workshops,” stressed Campbell, who added that some cuts simply cannot be made as the CBRM is bound by the province’s Municipal Government Act (MGA) to deliver core services at a certain standard.
“It is our firm belief that we are extremely lean and that we would be cutting beyond the fat and into the muscle with respect to any further reductions to our current operations.”
CBRM chief administrative officer Marie Walsh agreed. She was also quick to point out that the province must take some responsibility for the municipality’s dismal fiscal plight.
“Our biggest challenges are the factors that are out of our control like provincial transfers and costs related to regulations,” said Walsh.
“I’m frustrated that while we constantly make improvements and find efficiencies the province continues to hit us with increased costs – I don’t know how they can justify increasing all the transfers they get from us and not even look at their own, it’s just so unfair.”
For the record, the municipality’s 2019-2020 operating budget shows the CBRM paying the province a $19.3-million transfer while receiving $15.3-million provincial operating grant, an amount that has been frozen for five years.
The ensuing debate included considerable condemnation of the provincial government for failing to provide the municipality with the adequate finances to fund itself and the services it provides for a population that has declined from 123,000 to 93,000 in three decades.
Veteran councillor Darren Bruckschwaiger took the opportunity to express his frustration over the CBRM’s ongoing financial challenges.
“We got a set of keys to this building, so if we’re not given the resources to operate the facility then take the keys and you operate it and give the citizens the services they deserve,” he said.
“This is getting beyond ridiculous.”
In all fairness, Bruckschwaiger and his council colleagues also spent time looking for solutions. The Dominion councillor suggested another level of government step in with a $10-million annual subsidy to allow the CBRM to cut its high, business-deterring commercial tax rate by one-third.
District 9 Coun. Amanda McDougall perhaps best articulated the thoughts of her colleagues.
“What do we do with this information going forward?” she asked.
“Are we going to look at this and say should we maybe have clear and attainable priorities set year by year? Are we looking at finding other ways to make money rather than cut from the very essential services we provide the residents?”
Back to CAO Walsh.
“We’ve done everything and more that they’ve asked us to do to get to this point and now it’s time to sit down and talk about where we’re going – it’s their study, they paid for it, they’re telling us where we’re at, we’ve been telling them that for a long time, now they can see the big picture, but it’s getting them to sit down and talk,” said Walsh, who along the mayor and other senior CBRM staff were scheduled to meet with Municipal Affairs Minster Chuck Porter today in Halifax.
What do you think of the exercise? Comments are open on this article to members at SaltWire.com.
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