The City of Richmond’s 2016 budget — one that proposes a property tax hike of up to 4.9 per cent — appeared to be light on details for councillors at a finance committee meeting Monday evening.
“We just need to know what the parameters are, moving forward,” said Mayor Malcolm Brodie, regarding a proposed boost to the RCMP budget, just prior to the committee sending the budget report back to the finance department for further review.
The city tabled a $104 million capital budget — the smallest in four years — as well as a $232 million operating budget. City expenses are set to rise by three per cent as revenues remain stable.
While the base tax hike has been tentatively set at 2.2 per cent, the city proposes to add another one per cent to bolster its infrastructure reserves.
On top of the proposed 3.2 per cent tax hike, there is the outstanding issue of adding $3.2 million to hire 17 new Mounties, which would represent a 1.7 per cent tax hike.
Doing so would bump up property taxes by a total of about five per cent.
Brodie said he wanted to consider the police option more, prior to making a decision on the entire budget.
Coun. Alexa Loo also wanted more information, but said the city needs to bite the bullet on policing costs.
“I think it makes sense to hear a little bit more on a few of these items,” however, “with policing, we have seen a zillion reports. I think we know that this ask for 17 new officers is nothing new on the table. We can send it back for more information, send it sideways and upside down. We know we need more police officers. …We’re sitting here pussyfooting around,” said Loo, who noted Richmond has a low per capita rate of officers compared to the rest of the country, while suggesting spending $20 million to transition to a municipal force is not prudent.
At the end, council voted unanimously to send the budget report back to staff.
Loo also wanted to understand how staff scrutinized certain projects and presented recommendations while Coun. Linda McPhail wanted more detailed breakdowns of community services, including the police. Meanwhile, Coun. Bill McNulty wanted to know more about why the city appeared to be saving money on job vacancies.
As it was the case last year, the finance department was forced to defend the additional one per cent tax hike for infrastructure reserves, particularly after Coun. Carol Day questioned the policy.
General Manager of Finances Andrew Nazareth said the Long Term Financial Management Strategy — adopted in 2003 after council was found to be emptying the reserves — has resulted in an uncommitted reserve balance of $226 million.
And doing so has meant property tax hikes have been stabilized at around three per cent, noted Nazareth.
“We have to make sure we don’t take the foot off the pedal now because all we need is one big turn and we wouldn’t be able to react with a solid reserve,” said Nazareth.
Since 2003, council has nixed the one per cent tax hike six times. Nazareth said, had it not, the city would be close to not requiring the LTFMS.
The city’s annual budget increased by $5.2 million; salaries accounted for 65 per cent of that increase, while additional RCMP costs (not including the proposed 17 new officers) accounted for 17 per cent.
Nazareth noted collective agreements, due in 2016, with CUPE 718 and CUPE 394, as well as the Richmond Firefighters’ Association, could impact the budget.
He noted in the report that Richmond’s average property tax per dwelling is $1,520, below the regional average of $1,825.
The report noted municipal costs have risen higher than the Consumer Price Index.
One of those costs that came under scrutiny was library services.
As was the case last year, Chief Librarian Greg Buss was forced to defend his $9.6 million budget after Brodie questioned Buss for asking for an additional $200,000 for e-books.
“Can’t you find efficiencies?” asked Brodie.
Buss said he had and is implementing new fees in January.
McNulty said he agreed with more late fees as late books inconvenience others, while Loo suggested giving Buss even more money than he asked for as the library provides a service for low-income people.
Brodie, the chair of the finance committee, was less pennywise when it came to finding money to fund Steveston’s interurban tram, which requires $396,000 in renovations, according to city staff.
The city contends full restoration of the tram is required sooner rather than later in order to ensure “optimum preservation for future generations.”
More money is needed to open the tram building’s doors on a more frequent basis.
Brodie, McNulty and Loo voted for funding the restorations from casino revenue, however councillors Day, McPhail, Chak Au, Ken Johnston, and Derek Dang applied the brakes.
The tram funding would have been in addition to the $104 million capital spending.
Proposed by staff is $44 million for infrastructure (including the widening of No. 2 Road from Steveston Highway to Dyke Road), $21 million for land acquisition (such as for the planned Middle Arm waterfront park), $8 million for parkland acquisition (the city is in talks with the Richmond School Board), and $3 million for the second phase of building the Garden City Lands park/nature reserve.
Proposed City of Richmond one-time expenses from reserve account:
Steveston Harbour log debris removal - $30,000 – Although the harbour is federal responsibility and a poorly maintained sheer boom is contributing to debris entering the harbour, the city will spend its own money to protect its assets, namely a pier at the end of No. 2 Road.
Richmond World Festival - $300,000 – If approved, the second coming of the city-planned event will likely take place on Labour Day weekend.
Heritage inventory - $150,000 – The last time the city reviewed its heritage buildings was in 1989. This money will be used to determine what buildings should be protected.
Update expired Community Wellness Strategy - $75,000 – City staff will create a recreation and sport strategic plan to guide the planning and delivery of wellness, sport and recreation services. This will complement an updated wellness strategy.
Richmond museum development plan - $200,000 – Per council’s request, the city is exploring building a new museum. Council has recently had in-camera meetings on the issue, suggesting the city may be looking to purchase land for the facility.
