Anyone with an ounce of commonsense is quickly coming to the realization that when it comes to setting a 2010 budget this Council just doesn't get it.
While the recession continues to batter our local economy, with school closings, layoffs, and an unemployment rate over 13%, City Council continues to spend like drunken sailors(with apologies to drunken sailors).
After a recent "if you think you have a better idea" challenge from Councilor Cameron Stoltz, we here at The Citizen decided to pick up the gauntlet.
With the assistance of the Canadian Taxpayer's Federation, here is a list of things that this Council could do to not only bring in a zero tax increase this year, but at the same time show the leadership that we thought we were getting when we elected them.
1. Bring staff salaries into line with the private sector. A 2008 study by the Canadian Federation of Independent Business found that municipalities enjoyed a 35.9% advantage over taxpayers performing similar duties in the private sector, including wages, salaries, benefits and pensions. In addition, 77.7% of public sector employees have defined- benefit pension plans, while only 13,2% of private sector employees have these "gold plated" plans, that require employers to guarantee a set pension payout to employees.
2. Contracting out. In most cases third party partners can provide better services for the taxpayer at a lower cost. Customer service goes up and prices go down since private companies know they can lose their contract if they provide poor service. The City of Indianapolis saw a drop from $425 per ton to $307 per ton (25%) when it contracted out its pothole repair services, while productivity went up by 68%.
3. Public/private partnerships (P3's)-Sharing the risk with the private sector on capital projects can save taxpayers money. In Winnipeg the City entered into a "lease to own" partnership with DBF Ltd. For the construction and maintenance of the Charleswood Bridge in 1994. While the City paid annual lease payments in exchange for allowing Winnipeg drivers to use the bridge, after 30 years the City owns the bridge in a specified shape and condition. Not only did the bridge finish a year ahead of schedule, but the City expects to save over $1 million over the life of the partnership. Contrast that with the Cameron Street Bridge boondoggle here in PG.
4. Sell surplus land and non core assets-As one of the largest landowners in the City, hundreds of millions of dollars could be freed up if this land was sold off. Not only would the City receive money from the sale, but it would also see annual property tax returns from the now utilized land. The PG Golf Course, Civic Centre, and CN Centre are just a few of the assets that could be sold off to the benefit of the taxpayer. Instead, in some cases they compete with the private sector using our tax dollars.
5. Shift to user fees-The City of Prince George is no stranger to user fees, but they should be used to cover the cost of providing the service not as a cash cow for other areas. Tolls for new roads, water meters and transit are areas where user fees could work.
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