Structural reforms needed to meet growing needs
City council will spend the next few months trying to tame a proposed $460 million consolidated budget to deliver quality services.
Facing a public backlash after tabling a ridiculous 12.7% hike, council is looking at capping the estimated tax increase in 2025 at between four and seven per cent. Those various scenarios are now being reviewed.
In our view, for the most part the cost savings recommended by staff amount to tidying, tinkering and trimming, and lack substantive structural changes to how the city does business.
Perhaps it’s time to stop half-hearted cost-plus budgeting, to do a root-and-branch review of staffing needs? Above all, to integrate more services in the capital region?
There are other ways of course to chop a budget through legitimate means, rather than beggar a public priority such as public safety. To better run our community, Victoria council just has to use imagination, business acumen and get to work.
Bring city staff salaries and benefits in-line with the private sector.
They employ the equivalent of more than 1,100 full-time employees and lists salaries as part of the annual statement of financial information.
Government sector workers enjoy a significant wage premium over their private sector counterparts for the same job. Four times as many public workers are covered by generous registered pension plans, retire earlier and get better job security. They lose far more work time for personal reasons.
Staff are paid well – and so they should be – but are wages and benefits excessive? Are there opportunities to trim staff through attrition or program cuts?
Council should consider contracting out services whenever possible.
Should more of the 200 city services be provided by the private sector?
Why hasn’t the city reached out directly to the business community for ideas in the initial public engagement process?
Council still needs to better focus on core services and responsibilities, a recurring issue which troubles taxpayers.
Public needs and demands are limitless, but when financial resources are tight local government must be laser-focused on the critical.
Council adopted a MNP Governance Review Report (2022) recommendation to establish a policy regarding the city’s and council role on matters beyond core municipalities.
Unfortunately, council has yet to do that to improve ‘transparency, accountability, efficiency and effectiveness.’
Perhaps partner with other governments for service delivery.
An annual analysis should be done by the CRD on how costs can be trimmed by using public private partnerships (P3s) across the region?
Why aren’t multiple police services and fire departments consolidated? Will the Victoria-Saanich Citizens’ Assembly study the feasibility?
Why not use more public-private partnerships for capital projects?
Victoria successfully built Fire Station No. 1 recently as part of a twelve-story mixed-use development in the downtown core.
So, why not combine even more community needs with the proposed $217 million Crystal Pool? Naming rights would help trim costs.
The community certainly needs a new pool, but why opt for a luxurious edifice which is considerably larger (52%) than the existing facility?
There will be a referendum Feb. 8. Unless the city budget is trimmed, the fate of any new Crystal Pool is likely sealed irrespective of whether the Central Park North or South option is chosen.
Note, the current budget ask for 2025 and future budget projections exclude the tax increases for a new aquatic centre. After several years about 7% more in property taxes annually will be needed for the next 20 years (never mind the city’s share of $2 billion to upgrade the water treatment system).
Finding volunteers for the delivery of city services is worthy of exploration.
In 2023, 85 VicPD volunteers contributed almost 6,500 hours while 65 Reserve Constable contributed another 8,000 hours.
Are there other roles for volunteers to help reduce labour costs and foster community involvement? A staff report on volunteer usage could inform any changes.
Consider more user-pay funding.
Cruise ships could be an even stronger economic driver.
The current cruise ship passenger fee collected by the Greater Victoria Harbour Authority is almost $4.
But with a million visitors, revising it to a token $10 (CDN) – still half the passenger fee at the Vancouver Fraser Port Authority – would net about $6 million annually.
The funds could help revitalize the downtown core, address controversial environmental issues and enhance visitor experience.
Council should remind themselves of a few things.
They just voted themselves a wage hike city staff estimate at 40% and 25% for the mayor (starting in 2026).
The city’s Ipsos poll of 700 residents found the high cost of living is the number one reason for rating quality of life poorly (40%).
Some 40% prefer the city offer services at a reduced level, for example reduced hours to balance the budget. Increasing property taxes was the least preferred option overall at 38%.
Addressing the cost of living and making life more affordable are top-of-mind for residents. It goes without saying, the ambitious local politicians can cinch the next election by introducing major reforms and being more fiscally prudent.
I do not understand why, with sll the new condos, therefore sll the new tax bases we are no better off.
Our garbage, compost collectin should be given over to the private sector, as the recycling now is. Much better service, not sure of the cost difference.
Stop thinking about a new indoor pool, the cost is insane. How about different outdoor pools in different neighbourhoods ? They too could be heated. Certainly more cost effective, and, saltwater much healthier than ozone, or bleach.