The City of Yorkton is set for a major review of its overall operations.
In conjunction with 2016 budget deliberations, Council directed administration to reduce operating budget expenditures by finding efficiencies and looking at doing business differently, explained City Manager Lonnie Kaal at the regular meeting of Yorkton Council Monday.
The call for the review is based on budgeted net operating costs excluding tax growth, grants, surcharge and interest revenue which have increased 7.3 per cent in 2014, 5.9 per cent for 2015, and 0.9 per cent in 2016.
鈥淲e are doing better than our counterparts by reducing operating increases (our 0.9 per cent compared to 2.9 per cent in Regina and two per cent in Saskatoon), but it is evident that more work needs to be done,鈥� said Kaal.
Kaal said the economic realities suggest there will be less Municipal Operating Grants in 2017.
The grant formula is based on PST revenue and with less revenue and higher expenses predicted in 2017, a proactive approach is required.
鈥淔ocusing on operations will continue during the 2016 year to find further efficiencies. We need to change the way we do business in order to satisfy the significant expenditures in capital that are on the horizon,鈥� detailed a report circulated to Council.
The biggest issue facing all municipalities is the large infrastructure gap.
Assets are wearing out faster than we can replace them. Insufficient funds are available for capital and grant funding is almost non-existent for smaller municipalities, said Kaal.
Yorkton has made progress by directing increasing tax dollars to the Capital budget, 2012 $2,044,000 and 2016 $4,667,600
鈥淭he problem is that the projects are larger requiring multiple millions. Capital Projects identified over the next three years exceed $35,000,000. With only $4,500,000 available on an annual basis, borrowing is not an option but a certainty,鈥� detailed the Report.
The situation will not get better.
鈥淩eplacement of existing assets will require more annual funding,鈥� said Kaal.
The City has 325 km of pipe in the ground (almost the distance from Yorkton to Saskatoon), valued at $90 million. The waterworks utility is replacing pipe as able and a detailed analysis of condition and life cycle will be provided mid-2016, noted the report.
鈥淭axes are required to fund assets such as storm pipe, drainage, facilities, parks, traffic control, sidewalks, and roads. Yorkton has 150 km of streets with a replacement value of $150,000,000.This is significant because 61 per cent of our roads are in fair condition and need to be re-surfaced (asphalt overlay) before they deteriorate further. If nothing is done, then these roadways will require a complete re-build,鈥� continues the report.
鈥淐ouncil has made it clear that we cannot afford to continue the way we are, and various service deliveries need to be reviewed in 2016. The objective is to find the most effective and cost efficient ways of delivering services. Upon review there may be some services that as a local government we don鈥檛 need to be in the business of doing. For others it will be doing business differently.鈥�
As a result Administration is looking at a wide range of services including;
*Continue with the fire services review started in 2015.
*Provide a comprehensive report on the mobile home park to Council in January 2016.
*Review the transit service and identify the objectives for provision of service with a report back to a strategic planning meeting in February 2016.
*Finalize airport service delivery, costs, tenant contributions and provide a land development plan and report to a strategic planning meeting in February 2016.
*Have the RCMP attend a strategic planning meeting in March 2016 to discuss priorities, the value of CSO鈥檚, possibly using radar cameras and reviewing the facility contracts.
*Undertake an internal facility review聽 in 2016 which will include the Library, Godfrey Dean, Sports Hall of Fame, Gloria Hayden, Tourism/Chamber building and possibly others, with the objective of optimizing space required for municipal services.
*Conduct a review of Gallagher Centre operations in conjunction with city wide facility maintenance programs to find efficiencies.
*Explore synergies between Parks and Public Works in conjunction with a common facility.
*Provide quarterly updates on financial standing and progress on reviews and initiatives.
鈥淭he objective will be to change service delivery to provide the most value with the least cost,鈥� said Kaal.
