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Biggest budget turnout on eve of tax increases

Community members call on council to reign in spending

It only takes the gloomy prospect of raising property taxes to draw a crowd out for a discussion on the municipal budget.

Last Friday roughly 50 community members, up significantly from budget open houses in the past which typically eke out three to four people, gathered with council to discuss the 2008 budget.

The turnout was a sign of the concern in the community for the $3.8 million shortfall facing the 2008 budget.

That shortfall translates to a 14 per cent raise in property taxes.

“Nobody likes to pay taxes,” said Mayor Ken Melamed, who took centre stage at the GLC with five councillors.

“We’re all very committed to trying to deliver a program that is within reason and yet protects the resort for the future.”

Therein lies the puzzle — how much do you have to raise taxes and cut spending to achieve that goal?

Local business owner Dave Davenport urged council to develop a budget based on inflation — in other words, a budget with a 2.1 per cent increase to property taxes, just as in years past.

That way the community can see just how much would be cut from spending and the tangible impacts of losing $3.8 million, and make its decision accordingly.

Councillor Eckhard Zeidler jumped on the suggestion and asked the room if there were any “sacred cows”, any things that could not be compromised with such a significant budgetary blow.

The question was met with silence until Whistler-Blackcomb’s Stuart Rempel spoke and highlighted that there are in fact “sacred cows.” Whistler’s mission, he reminded the room, is to be the premiere mountain resort community and it needs to look like it.

Community members, in addition to offering suggestions, took the opportunity to take council to task over its spending of late.

One community member likened council to kids let loose in a candy store. Now, he said, council has a bellyache. He pointed to council’s decision to exempt Whistler-Blackcomb from paying taxes on the Peak to Peak gondola as an example.

“I am strongly opposed to any tax increases above inflation,” said the property owner.

Melamed, however, nipped any discussion of past decisions in the bud, saying it was not useful.

“Maybe some mistakes were made,” he said. “Let’s talk about where we are today.”

A common theme from residents who attended was a call to reign in capital spending at the council table.

“Learn to do more with less,” said David McColm. “Learn to say no to some projects or learn to make them smaller.”

He specifically used the new library, the budget of which has ballooned to $10 million, and the proposed ice skating rink and roof structure on Lot 1/9 as example. The $20 million capital costs of the rink and roof is to be funded externally or not at all. It is not clear where in the municipality the money would come for its upkeep and annual operation.

“We don’t need to build these iconic things that are going to cost us more down the road,” reiterated McColm.

Part of council’s plan to deal with the 2008 shortfall is to cut significantly from its reserves contributions. Reserves are the municipality’s savings account and it’s through reserves that capital projects are generally funded.

The goal is to contribute 20 per cent annually to reserves. The cuts will see that drop to 13 per cent.

That raised some concerns for taxpayer Jonathan Paine, who called it “borrowing from our kids.”

By putting less money into savings there will be less there to pay for projects down the road.

The mayor recognized those concerns.

“It’s a risk,” he said. “You’re right, it’s suicide to under fund capital reserves.”

But he reminded the crowd that it wouldn’t be forever.

“Our hope is that this is a blip,” said the mayor.

Paine disagreed.

“I’d suggest that you not treat it as a blip,” he said. “I see it being the same problem year after year.”

As for helpful suggestions, businessman Tom Horler asked council to what extent it had looked at privatizing some services as a way to reduce costs.

Hotelier David Demers asked if council had looked a recouping a resort tax as a way to boost coffers, particularly in light of the upcoming 1 per cent reduction to the GST.

Councillor Bob Lorriman explained that the Federation of Canadian Municipalities had lobbied hard for that money to flow to municipalities, to no avail.

The suggestion then prompted a discussion about political relationships with the provincial and federal governments, both of which are operating at annual surpluses.

Demers suggested Whistler needs a lobbyist at the provincial level to help its cause

“We have recently engaged a lobbyist to help with a transit issue,” said the mayor, who recognized that those cities who hire lobbyist tend to get more money from higher levels of government.

He promised council would look at the cost benefit.

The mayor also defended council’s spending, saying the municipality has been delivering efficiencies in departments for years.

“This group is very frugally minded, not a bunch of spendthrifts,” he said.

“We’re spending less next year because we’re not raising taxes by 14 per cent.

“There’s a line that we don’t want to cross in terms of compromising the future.”

The compromise reached three days after this meeting on Monday was to raise property taxes by 6 per cent and cut spending by $2.3 million.