Moncton must keep budget tight
Published Tuesday November 24th, 2009
The City of Moncton is preparing for its annual budget deliberations and needs to find creative ways to hold the line on taxes and spending while providing services for taxpayers who, for the average priced home, are now paying $202 per month in property taxes.
Moncton's budget has increased by $42 million over the past seven years, an average of $6 million per year. This in part reflects how fast the city has been growing and services by necessity expanding, but it is also reason to question the spending. Inflation in the same time period has been below three per cent, often below two per cent. In the past five months, inflation has actually been zero. Yet the city's spending has annually increased at a much higher rate. If spending increases another $6 million this year, for example, it will be a 5.3 per cent increase.
Moncton's Committee on Taxation Review suggests correctly that the city must take a careful look at its priorities and both control spending and increase revenue. There are a lot of ways it can do so, including doing things differently and more cheaply. Contracting out more work is possible, for example. The city's bureaucracy has been growing, but is every position truly necessary? It take surprisingly few people earning reasonable salaries and benefits to reach $1 million per year. Can we save a million or two without damaging services? We suspect it can be done.
On the revenue side, the committee suggests a hotel visitor's tax, which is common elsewhere and could raise significant funds. And there are other creative options.
It is also perhaps time for council and planners to address unfettered urban sprawl to increase population density. Every new subdivision means more plowing and more water and sewer lines etc. And the sprawl has consequences, including for public transit which needs higher population densities to improve and reduce subsidies.
Moncton councils and staff have been managing the city's financial affairs well and responsibly, yet we can do better. We must do so to ensure Moncton remains in a solid position without creating a burden on taxpayers. City Hall needs an approach that becomes second nature; a culture of creative frugality that provides services while keeping the lid on spending increases. Doing more with less is possible to achieve with the right approach and attitude and without sacrificing crucial projects. Taxpayers deserve no less.
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Spending increased by 5.3 percent, according to this item.
Inflation is running around 2 or 3 percent, and institutional inflation (that's the cost for running offices, equipment and infrastructure, as opposed to running a household) is even higher.
Meanwhile, as Terry Parker mentions in today's issue, Moncton's growth continues at record levels. Population, business and infrastructure growth is at least a good three percent.
So, even if there are no increases in programs or services, Moncton's spending would need to increase by at least 6 percent, and probably more. Which means that a city holding the line at 5.3 percent is being very responsible indeed.
Carping about an expense here, a worker there, while complaining about very modest and responsible increases is destructive. These editorials are not helping Moncton, they are hurting. Again, it is necessary to call this newspaper to task for irresponsible nickel and diming.
Stop it. Be responsible.