The District of Squamish has set itself a possible "unrealistic" goal for the 2009 budget, according to some council members: a four per cent property tax decrease.
Council passed a recommendation put forward by the district standing committee on finance to work the decrease within the 2009 budget. It is an ambitious goal, but Coun. Patricia Heintzman said it starts a worthwhile conversation.
"To be honest, this could be unrealistic, but it's a good way to start a conversation about the budget," Heintzman said.
Council passed the motion that staff set a target slashing four per cent from 2009 tax rates at a council meeting Tuesday (March 3). Initially district staff recommended a 17 per cent tax increase, which sparked the need for targets.
"I thought 17 per cent was very unrealistic and not in touch with reality and today's economy. We needed to send a message," said Coun. Paul Lalli, finance committee member.
Lalli said residents in the community are losing their jobs and can't afford to pay more taxes.
"Staff is going to come back with options for us that reflect a four per cent decrease. It is a starting point for discussion and it's our job to question things," Lalli said.While specific cuts to municipal services have yet to be determined, Lalli said residents can expect to see a "leaner, meaner" budget.
After 22 years in municipal politics, Coun. Corrine Lonsdale said Squamish council has done a poor job of public consultation in regards to the budget for the past six years.
It is something she said she and the rest of council want to change. But with less money in the coffers, tough decisions and priorities will need to be made.
"This council has determined we will do better," Lonsdale said. "We are just entering into budget discussions and have undertaken a somewhat amateur survey to be followed with a town hall type meeting. This year we are going to have a tough time."
It's not cheap to keep a municipality running, and Heintzman said Squamish is particularly challenging. Squamish is a sprawling community with about 150 people per square mile, and the infrastructure is aging, said Heintzman.
"It costs a lot of money to maintain the town we built, and we don't have the population to afford it at this moment," he said. "Unfortunately no one can deny the fact that we didn't plan very well for the Woodfibre closing. That is the jeopardy of having all your eggs in that basket."
Heintzman said it is important for residents to be realistic when approaching the upcoming budget discussion. Sidewalks on every street in Squamish would be nice but, Heintzman said, the cost is astronomical.
"I think it is absolutely important to understand the challenges our town has. We need direction. Would the community rather see money spent on road upgrades or safe bike routes?" Heintzman said.
Unlike this year's federal government's "spend out trouble" budget policy, the district is tightening its belt with the four per cent target. Municipalities are mandated to provide balanced budgets, so residents could be looking at cuts to services in 2009.
"We are relying on staff to present some options and to see what we can cut from the budget. From there we will have some decisions to make," said Mayor Greg Gardner.
Gardner said taxpayer engagement is critical because the budget process is about prioritizing projects with a limited number of resources. But Coun. Bryan Raiser said, according to a district survey, residents might want to pay more.
"Results from a recent telephone survey seem to indicate the public was actually supportive of a tax increase," said Raiser.
The telephone survey was part of council's focus on community engagement, and sought direction for initial budget discussions. It was the start of renewed community engagement efforts. A Town Hall Budget Meeting, another method of gathering the community's thoughts, will be scheduled during the week of March 23.
In the end, Gardner said, taxpayers should determine the direction of the budget. He added he makes no promises that the 2009 budget process will be easy, but said it will be worthwhile.
"We know the community wants to see good value for their dollar, which means efficient delivery of services," he said. "Again, community input is critical."
