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Fool me Once???

In CITY FINANCE, CITY GOVERNMENT, PLANNING AND DEVELOPMENT on May 21, 2013 at 9:54 pm

Ron Bolin: May 21, 2013

Following a search for the proper venue, on Thursday, April 4, of this year I sent an email to Ms. June Hicklin, Advisory Officer, Local Government Department, Ministry of Community, Sport and Cultural Development regarding the degree to which a public referendum under provincial guidelines provided obligations on both the municipality which prepared the referendum question and officiated at its taking, as well as the public which approved it.  This is the correspondence which took place:

Ms. Hicklin:

I would like to understand the position of the Ministry in its administration of referenda carried out by municipal governments in BC. While I recognize that the issue in this instance may be moot, I seek a ruling on the nature of the reciprocal relationship between a public body and the public in the case of a referendum held under the community charter and/or the Local Government Act. The circumstances in this case are as follows:

-The City of Nanaimo, wishing to see a Conference Centre built in downtown Nanaimo made an agreement with a US developer to build the Centre as well as a hotel to serve it.

-A referendum in this regard was placed before the public in November 2004. The referendum question put forward was: “Are you in favour of adopting “NEW NANAIMO CENTRE LOAN AUTHORIZATION BYLAW 2004 NO. 5750” to permit the City to borrow up to 30 million dollars and carry out the terms of a partnering agreement with Triarc International Inc. for the development of the New Nanaimo Centre project?”

-The result of the referendum was favourable by a vote of 52% to 48%

-The terms of the Triarc partnering agreement were that Triarc would build a conference centre at a cost of $52.5 million to the city and, reciprocally, would build a Marriott hotel to service the centre at their expense.

-The $30 million was borrowed, but the conference centre cost was subsequently escalated to $72.5 million (no total project cost review has ever been released) without the benefit of another referendum and no hotel was ever built. Read the rest of this entry »

What we have here is (deliberate?) failure to communicate

In CITY FINANCE, CITY GOVERNMENT, PLANNING AND DEVELOPMENT on May 14, 2013 at 3:47 pm

Ron Bolin: May 14, 2013

At 3:44 yesterday afternoon the Provincial Dam Safety Board sent a letter to the City which demanded some action this year to mitigate the possibility of any imminent catastrophic failure of the middle and lower Colliery Dams.  Why this letter should be sent less than four hours before a Council meeting at which the issue of the dams was to be discussed remains an intriguing mystery.  The letter itself neither recommended methods of mitigation which might be implemented this year, nor did it indicate that removal of the dams in 2013 was the only acceptable mitigation.  The immense gap left between these two positions apparently went unnoticed by our Council, with the possible exception of Councillor Johnston who put forward the notion of reducing the water level behind the dams which would significantly mitigate the current risk.  For whatever reason, this suggestion was allowed to get lost in the rush to see the dams destroyed as quickly as possible without a clear path to reconstruction.

The failure to communicate between the three major interested parties, i.e. the public, the City and the Dam Safety Branch,  in any full and open manner since this issue was made public has not failed to draw attention to the increasing suspicion that all is not as it has been presented.  Staff appears to have attempted to keep the other two parties divided by not providing a public forum where all could play on the same field at the same time.  Instead they have positioned themselves as a mouthpiece for the Dam Safety Branch, interpreting DSBs position while overlooking the apparent lacunae in the logic of that position as they represented it.  This has been further highlighted by repeatedly stated City projections for reconstruction costs which now turn out to be two to three times higher than those provided not only by citizen experts, but finally by the very  experts hired by the City to study the alternatives for the dams.  It has been difficult to sustain the pretense that there is nothing more at issue here than safety.  Read the rest of this entry »

Another Provincial Election Ignoring Citizens living in Municipalities

In CITY FINANCE, CITY GOVERNMENT on May 10, 2013 at 12:55 am

Ron Bolin: May 9, 2013

Think about it.  There will be a provincial election next week which will see either some new faces in an old party in power or some old faces in a new party in power.  From none of the participant parties have I heard much about the governance of our municipalities even though these contain the bulk of our population, demand a predominant portion of the money we pay for governance through property taxes, fees and levies, and often have Councils made up of well meaning, but often politically and financially naïve people, i.e. a disaster waiting to happen.

To exacerbate this problem, in 2004 municipalities were given “natural person powers” enabling them to enter into a broad range of agreements, just like a real individual (or ‘natural’ person). They have, too often, taken on the mantle of Captains of Industry, imagining themselves to be Masterminds of Community Development and Prosperity.  Thus they take on debt, forgive taxation, and donate land and services to commercial enterprises seemingly following the pattern of government/corporate integration which is characterized by fascist governance on the right and communist governance on the left, while at the same time personally accepting none of the financial accountability which is associated with corporate officers in the capitalist sense.

Ask yourself, do you as a citizen of a municipality feel that you as a person are equal to such a “Natural” person? Try to question the system, even in an interpretation of legislation which may appear clear, and you may find yourself having to take the same course of action required if you have a dispute with a neighbour or business: i.e. take it to court.  And good luck to you in that endeavour as it is your tax money that will be used against you there. Read the rest of this entry »

More News on the Nanaimo Ratepayers Association

In CITY FINANCE on April 26, 2013 at 1:47 pm

Ron Bolin: April 26, 2013

Don Graham of the Nanaimo Ratepayers Association has provided an updated version of its Manifesto and a date for its first public meeting which will be held on Wednesday, May 29, at 7pm in the Kin Hut on Departure Bay.  I suspect that there may be some retrospective discussion of the 2013-2017 budget and plan which will see about $40 million dollars in borrowing  while at the same time raising taxes by over 18%.  This early start will offer sufficient time for a thorough review of the 2014 budget and related 2014-2018 Financial Plan.  Nanaimo, like most cities in BC or around the world, is in serious need of a review of spending and related taxation.

Our City Manager is fond of reporting that Nanaimo financial situation is in the middle of the pack for BC municipalities of comparable size.  I would note that if the pack in which we are in the middle are all, like lemmings, poised to run over a fiscal cliff that this is small consolation.  I hope that citizens will take this chance to examine the future of our Nanaimo from a financial perspective.

Here is Mr. Graham’s submission:

____________________________________

NANAIMO RATEPAYERS ASSOCIATION

PREAMBLE:

            In as much as City Council has lost sight of it’s role in construction and management of infrastructure, we, the people, comprising members of the newly-formed Nanaimo Ratepayer’s Association are proposing to get the Mayor and Council back on track. We will do this through a Manifesto that will set out broad objectives Council should adapt to better serve the taxpayers, who provide all the funds used in running the city.

            In addition, we will monitor the proposals and projects brought foreword by the mayor, Council and staff We will offer suggestions when necessary .

             The  NRA is non-partisan and welcomes all taxpayers. Read the rest of this entry »

Budget Time is nearly over, Last Chance to wake up and smell the Coffee

In CITY FINANCE, UNCATEGORIZED on April 24, 2013 at 12:47 am

Ron Bolin: April 24, 2013

The 2013 budget and the 2013-2017 Financial Plan must be finalized under provincial legislation by May 15.  The budget, the only document which truly feeds the political process in Nanaimo, has again come to a close with no real fundamental examination by the politicians who we have elected to look after our collective municipal welfare.  A previous attempt to raise the subject by Councillor Bestwick was defeated.  But, mirabile dictu, last night another attempt was put forward by Councillors Bestwick, Kipp and McKay to set parameters on the 2013 spending put forward by City Staff.  This came in the form of specific Departmental budget and other reductions which, if everything were included adds up to over $4 million dollars and would not only eliminate the 2013 tax increase, it would also reduce the $18+ million dollar borrowing which is also included in the 2013 budget. (At roughly $800,000 per one percent of property tax, this borrowing represents a 22% tax increase, not counting the interest.  We have truly kicked the can down the road… again …

The outcome at last night’s submission was to cause the first three readings of the Financial Plan Amendment Bylaw and the Tax Rates Bylaw to be postponed. Read the rest of this entry »

A Citizen Taxpayer Speaks – and is Rebuffed

In CITY FINANCE on April 16, 2013 at 12:39 pm

Note from the Editor:

The following statement was made to Council on April 15 by Robert Fuller in response to the standing request for Delegations to speak on the subject of the 2013-2017 Financial Plan before its final adoption by May 15, 2013.  I considered it worth publishing and he has been kind enough to consent.

It should be noted that in response to Mr. Fuller’s final request for ideas and solutions Mayor Ruttan took umbrage, implied that he had no business asking for such and further that it was enough that Council sat while he talked to them.  It may be that this has exposed the real problem of Citizens vs Council: that while Council may pro forma be forced to listen, they do not feel obliged to hear.

________________________________________

Robert  Fuller: April 15, 2013

Last year the citizens of Nanaimo undertook the creation of a Strategic Plan to guide our city into the future. Under the heading Operating Philosophy is a rather key notation which states “a commitment to strong fiscal management; performance accountability; sustainable, affordable municipal operations that provide effective stewardship of all municipal assets.

The financial plan 2013-2017 has been in councils hands for almost four months now and in my opinion I have seen little attempt to perform the old “let’s roll up our sleeves and see what we can do for our rate-payers”. When council can spend more time debating bottled water and taxpayer funded public washrooms than an important document such as the financial future of our city it is incomprehensible to myself. Some on council have gone so far as to insinuate that the city does not collect enough taxes, while others rely on a survey of but 300 people to justify that ratepayers are just peachy keen with the taxes that we do pay. Read the rest of this entry »

Poison in Paradise

In CITY FINANCE, CITY GOVERNMENT, PLANNING AND DEVELOPMENT on March 4, 2013 at 12:05 pm

Ron Bolin: March 4, 2013

There is a lot to like about Nanaimo: it’s a beautiful site on the coast of Vancouver Island which is world renowned for its beauty and known all over Canada for its mild climate; it is strategically located at the hub of the island on the Salish Sea facing the mainland and the City of Vancouver;  it is a mid-size City, neither too big nor too small to offer full amenities without presumption;  it is home to a downtown port, a railway line, an airport, and a cruise ship terminal;  a conference centre;  a well-developed parks and rec system;  clean water flows to homes and sewers lead the waste away;  the roads are in passable shape and in general the population is friendly and accepting; and politics are, in general, ignored.

It is this latter circumstance which threatens the tranquility of the community.  For some years now –I would put it since the passage of the Local Government Act in 2004 when BC’s municipalities were turned into corporations, i.e. legal persons with powers far exceeding those of any of their constituents.  Since that time and as Council and Staff have come to more fully recognize the power of their new status, the corporation of the City of Nanaimo has gradually turned itself away from functioning as a government and increasingly into functioning as a corporation Read the rest of this entry »

Whistling through the Grave Yard of Broken Fantasies

In CITY FINANCE, UNCATEGORIZED on February 17, 2013 at 11:26 pm

Ron Bolin: Feb. 17, 2013

Imagine that you are going down life’s highway without a care in the world.  You are paying your monthly bills, even if you are borrowing a bit to do so.  You can handle it.  And then… the bottom falls out: Your car breaks down and you need a new one; you find that your condo is leaking and the money set aside to handle repairs is hugely overwhelmed; and you have committed all your current funds to paying your helpers, repaying debt on the extras you have acquired along with the usual expenses of eating, medicine, electricity, municipal taxes and fees, etc.   Your savings are committed, your borrowing limit is stretched, and most of the assets which you hold can only be sold if you are prepared to virtually give them away.

While I hope this scenario doesn’t describe your personal situation, it does, as recently revealed by the release of a preliminary report on Nanaimo’s  “Asset Management” condition, describe the situation of our Municipal finances.  As we go down life’s highway it is easy for us as individuals to forget that all that stuff that we have acquired needs repair, eventual replacement or elimination and that we should plan for these circumstances.  We often plan for catastrophic occurrences by purchasing insurance.  But routine wear and tear, the long term destroyers of value, are too often overlooked by individuals and have, until recently, been almost entirely overlooked by government agencies, the very ones who should be paying attention because their life, unlike ours, goes on forever.  While we eventually die and leave this cycle, governments are bound by them and the bills eventually come due.  Governments, however, can afford to overlook these difficulties for a long time as they are comprised of individuals who are easily satisfied to let it devolve on those who come after them to take care of the mess.  It is easy to forget responsibility if it going to fall on someone else’s shoulders.

Recent requirements have led to examinations of the extent of these problems as governments at all levels find themselves approaching the abyss of major infrastructure maintenance with some already off the edge Read the rest of this entry »

NANAIMO RATEPAYERS ASSOCIATION

In CITY FINANCE, CITY GOVERNMENT on February 12, 2013 at 11:00 am

Don Graham: Feb. 12, 2013

_____________________________________________

This post was submitted by Don Graham, a long time Nanaimo resident and is published without the editing of the text.

_____________________________________________

PREAMBLE:

In as much as City Council has lost sight of it’s role in construction and management of infrastructure, we, the people, comprising members of the newly-formed Nanaimo Ratepayer’s Association are proposing to get the Mayor and Council back on track. We will do this through a Manifesto that will set out broad objectives Council should adapt to better serve the taxpayers, who provide all the funds used in running the city.

In addition, we will monitor the proposals and projects brought foreword by the mayor, Council and staff We will offer suggestions when necessary to keep them all on track.

MANIFESTO

  1. The NRA will identify projects that will provide little, or no, benefit to taxpayers.
  2. Objectives which should be followed include:
    1. Health, safety and well being of it citizens by supplying fire protection, policing, and shelter for the homeless as well as other humanitarian services where required.
    2. Construct and maintain infrastructure that supplies water, sewer, road, and garbage services.
    3. Cultural services which would include theatres, museums, parades and other cultural activities if supported by a majority of the taxpayers.
    4. Provide recreational facilities if and when voted on by the public
  3. The NRA will discourage the City from competing with business in matters of land speculation, hotel ownership etc. Read the rest of this entry »

What Milk is the COW giving on Monday, Feb. 4, 2013

In CITY FINANCE, CITY GOVERNMENT, PLANNING AND DEVELOPMENT on February 3, 2013 at 4:46 pm

What Milk is the COW giving on Monday, Feb. 4, 2013

Ron Bolin: Feb. 2, 2013

The purpose of these notes to the agenda of a Council or COW meeting is to provide a shortcut to the matters of general interest which I believe to impact on the community as a whole, without going to the level of asking for whom the bell tolls.  Those who wish to read the entire agenda and attached reports can go to:

http://www.nanaimo.ca/UploadedFilesPath/Site_Structure/Corporate_Services/Corporate_Administration/2013_Committee_Agendas/COW130204A.pdf

And I hope many will find the time to do so.  In the meantime:

Major items which can splash upon us all include:

Item # 8(a): Delegations Pertaining to the 2013-2017 Financial Plan.  Council now has an extra $18 million more to talk about than they had last week before they  passed three readings of the 2013-2017 Plan.  These approvals silently updated the 2013 Plan that was included in the 2012-2016 Plan which limited the 2013 budget to $157.5 million.  After last Monday’s approvals it has become $175.5 million, the figure shown in the 2013-2017 budget.   Want to know the sources of the balloon?  Ask your favourite City Councillor? I certainly have not been made aware of any discussion of the basis for this increase which, as I understand it, even after a 1% per year property tax increase for “Asset Management” , i.e. paying to keep what we already have in repair, runs an average of some $8.3 million dollars short each year for the next 20 years.  The figure rises considerably if we look at the lifetime costs of our existing assets.

It is time to give Council and Staff some help in finding ways to cut back on our so obviously flagrant City spending so as not to entirely impoverish our children and grandchildren, not to mention ourselves if we last a few years longer.  We need to carefully monitor the costs of growth.  Does anyone believe that we are still living in a world where things are continually getting better and better (at least in a material sense)?

The following Comments on the Budget/Plan were put forward: Read the rest of this entry »

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