A new 40-page report released by the Canadian Federation of Independent Businesses (CFIB), shows that most municipalities, including Airdrie and Rocky View County (RVS), were spending beyond their means between 2000 and 2007.
The County’s operating and spending grew 118.4 per cent between 2000 and 2007. In that time, the population grew by only 51.8 per cent. Despite the high numbers, it remained below the provincial average.
“Far too many municipalities have been increasing their operating spending far faster than inflation and population growth,” said Richard Truscott, Alberta director at CFIB.
He recommends zero-based budgeting and better defining core services to avoid having “nice to have” services turning into essentials.
“Wage and salary costs are one of the biggest line items in any municipal government,” said Truscott.
Kent Robinson with RVC was generally satisfied with how the report turned out.
“We’re slightly below average in the report they put us in,” said Robinson, director of business services. “What’s missing from the report is the measurement of the demand for services.”
With a need for services in the county, Robinson said they are simply playing catch up, but Truscott isn’t buying that excuse.
“Even though 2008 marks the recession, municipal governments were spending like crazy,” he said. “It should be on decline, but the opposite is true.”
In Airdrie, “extremely lean” spending and low taxes are what’s leading Mayor Linda Bruce to believe the City is on the right track.
“We want to provide the best fiscal reality for our citizens,” said Bruce. “We’re extremely lean around here and that’s extremely important for our community”
Truscott was impressed with how Airdrie has handled its money in recent years.
“A city like Airdrie could very well lead the way in recommending others and how they operate,” he said. “Airdrie is by no means perfect, but considering they have a relatively low gap, maybe other municipalities could learn on that front.”
Airdrie’s operating spending growth was 141.2 per cent while its population growth during that same time was 105.1 per cent between 2000 and 2007. The gap also deceased 0.1 per cent between 2006 and 2007.
The report indicated Airdrie had some of the lowest per capita spending, at $1,260, and 1,000 full time employees per every seven people.
Spending will “show additional upward movement” in the next two years, Truscott speculated, and said it’s crucial municipalities and cities in the report rein in their spending.
“My fear is that there will be double population spending,” he said. “Everybody, including Airdrie, is spending beyond their means.”
To see the full report, visit the CFIB’s website at www.cfib-fcei.ca
