Looking internally for cost savings a top priority for City Hall

Putting a budget together is hard enough in the best of times, let alone during a worldwide recession. In what is unlikely to be a surprise to the citizens of Vancouver, the global economic downturn has dramatically reduced the revenue streams the City relies on to build its budget every year.
We’re now faced with some tough choices.
One of the biggest areas that has taken a hit from the downturn is the construction industry. As a result, development permits are down 50 per cent from last year, representing a loss of about $12.5 million.  Combined with other drop-offs, the city is facing a $61.3 million budget shortfall – the equivalent of an 11% tax increase.
That type of rise in property taxes is not acceptable. All across Vancouver, people are making do with less, being more cost-conscious, and finding savings wherever they can. City Hall needs to do the same.
The budget shortfall we are facing provides an opportunity for City Hall to carefully reconsider the way in which we conduct business. Between 2005 and 2008, the City's operating budget increased by $121 million, or 15.6 per cent. That kind of budgeting is not sustainable.
We’re taking a number of steps to control costs. One of the first things we did was require the City to undertake a shared services review – a top-to-bottom analysis of all city departments to find savings wherever they may be.
It has been decades since this type of review has happened. Over the past several months, the City Manager and her team of 30 staff – union and non-union - have identified opportunities for shared services across the city bureaucracy.
For example, did you know that the Vancouver Park Board and the City of Vancouver both employ separate groundskeeping crews? Or that there are 12 different technology help desks across various city departments?
Combining services is one way that Vancouver can achieve millions of dollars in savings.  Unlike our provincial or federal counterparts, municipalities do not have the option of running a deficit - we can only spend what we take in.
Next week city staff will provide a preliminary budget estimate, which will outline the different options we can take to close our $61 million funding shortfall. From there, the budget will go out for public consultation prior to a final decision by council in December.
I encourage you to take part and provide us with your opinion on what choices you’d like the City to take to balance next year’s budget. You can also email me your thoughts at [email protected].