2.               2011 BUDGET DEVELOPMENT PROCESS – PRIORITY TO PROJECTS AND SERVICES WILL REDUCE OVERALL OPERATING COSTS IN THE SHORT, MEDIUM, AND LONG TERM

 

                  PROCESSUS D’ÉLABORATION DU BUDGET DE 2011 – LA PRIORITÉ AUX PROJETS ET AUX SERVICES PERMETTRA DE RÉDUIRE LES COÛTS GLOBAUX DE FONCTIONNEMENT À COURT, MOYEN ET LONG TERME

 

 

 

COMMITTE RECOMMENDATION AS AMENDED

 

That Council receive the following motion:

 

That the LRFP Working Group review ways that the 2011 budget development process be adjusted to give priority to all projects and services that will in the short, medium, and long term reduce the overall operating costs required by the City of Ottawa to deliver municipal services; and review ways that the budget development process could be changed to identify all projects and services which attract operational costs that rise faster than the rate of inflation and that these projects be given secondary status for approval.

 

 

RECOMMANDATION MODIFIÉE DU COMITÉ

 

Que le Conseil prenne connaissance de la motion suivante :

 

Que le groupe de travail du Plan financier à long terme examine les façons d’ajuster le processus d’élaboration du budget de 2011 de manière à donner la priorité à tous les projets et les services qui permettront à la Ville d’Ottawa de réduire, à court, à moyen et à long terme, les coûts globaux de fonctionnement des services municipaux qu’elle offre. Ce groupe de travail devra également examiner les changements possibles au processus d’élaboration du budget pour déterminer les projets et les services qui entraînent des coûts de fonctionnement augmentant plus rapidement que le taux d’inflation, et pour que ces projets soient considérés secondaires aux fins d’approbation.

 

 

 

 

DOCUMENTATION

 

1.         City Council’s report dated 15 March 2010 (ACS2010-CCS-ABF-0004).

 

2.         Extract of Draft Minute, 22 March 2010.


Report to / Rapport au:

 

Audit, Budget and Finance Committee

Comité de vérification, du budget et des finances

 

and Council / et au Conseil

 

15 March 2010 / le 15 mars 2010

 

Submitted by / Soumis par: City Council / Conseil municipal

 

Contact / Personne-ressource : Diane Blais,
Committee Coordinator / Coordonnatrice de comité,
City Clerk and Legal Services / Direction du greffier et des services juridiques
580-2424, Ext. / poste : 28091, Diane.Blais@ottawa.ca

 

City Wide / À l'échelle de la Ville

Ref N°:  ACS2010-CCS-ABF-0004

 

SUBJECT:    2011 BUDGET DEVELOPMENT PROCESS – PRIORITY TO PROJECTS AND SERVICES WILL REDUCE OVERALL OPERATING COSTS IN THE SHORT, MEDIUM, AND LONG TERM

 

OBJET:          PROCESSUS D’ÉLABORATION DU BUDGET DE 2011 – LA PRIORITÉ AUX PROJETS ET AUX SERVICES PERMETTRA DE RÉDUIRE LES COÛTS GLOBAUX DE FONCTIONNEMENT À COURT, MOYEN ET LONG TERME

 

 

REPORT RECOMMENDATION

 

That the Audit, Budget and Finance Committee consider the following motion, for recommendation to Council:

 

That the LRFP Working Group review ways that the 2011 budget development process be adjusted to give priority to all projects and services that will in the short, medium, and long term reduce the overall operating costs required by the City of Ottawa to deliver municipal services; and review ways that the budget development process could be changed to identify all projects and services which attract operational costs that rise faster than the rate of inflation and that these projects be given secondary status for approval.

 

 

RECOMMANDATION DU RAPPORT

 

Que le Comité de vérification, du budget et des finances examine la motion suivante, aux fins de recommandation au Conseil :

 

Que le groupe de travail du Plan financier à long terme examine les façons d’ajuster le processus d’élaboration du budget de 2011 de manière à donner la priorité à tous les projets et les services qui permettront à la Ville d’Ottawa de réduire, à court, à moyen et à long terme, les coûts globaux de fonctionnement des services municipaux qu’elle offre. Ce groupe de travail devra également examiner les changements possibles au processus d’élaboration du budget pour déterminer les projets et les services qui entraînent des coûts de fonctionnement augmentant plus rapidement que le taux d’inflation, et pour que ces projets soient considérés secondaires aux fins d’approbation.

 

 

BACKGROUND

 

City Council, at its meeting held on 25, 26 and 28 January 2010, considered the following motion from Councillor Doucet (Motion 82/37) and, through Motion 82/38, referred same to the Audit, Budget and Finance Committee.
 

MOTION NO. 82/37

 

Moved by Councillor C. Doucet

Seconded by Councillor J. Legendre

 

WHEREAS Ottawa City Council has been forced to cut services and raise property taxes each budget year; and

 

WHEREAS even with the additional $350 million dollars the City received in stimulus funding from the Federal government for infrastructure renewal projects, and the provincial uploading of ODSP costs, the 2010 draft budget proposes to raise taxes by more than the rate of inflation and cut current service levels; and

 

WHEREAS the budget is presently organized without giving priority to projects and services that will in the short, medium, and long term reduce the overall operating costs to the City of Ottawa; and

 

WHEREAS this results in programs such as Crime Prevention Ottawa and services such as Public Transit, being on the proposed cutting list even though making cuts to these programs and services will result in higher costs in the long term; and

 

WHEREAS the City of Ottawa would be able to maintain current service levels and balance the budget if the budget development process gave priority to programs and services that have proven economies of scale instead of diseconomies of scale, for example investing in light rail increases service while decreasing costs to the City and bus transit does the opposite;

 

THEREFORE BE IT RESOLVED THAT the LRFP Working Group review ways that the 2011 budget development process be adjusted to give priority to all projects and services that will in the short, medium, and long term reduce the overall operating costs required by the City of Ottawa to deliver municipal services; and review ways that the budget development process could be changed to identify all projects and services which attract operational costs that rise faster than the rate of inflation and that these projects be given secondary status for approval.

 

MOTION NO. 82/38

 

Moved by Councillor A. Cullen

Seconded by Councillor R. Chiarelli

 

That Motion No. 82/37 be referred to the Audit, Budget and Finance Committee.

 

                                                                                                            REFERRAL CARRIED

 

 

As such, the Audit, Budget and Finance Committee is required to consider this matter and report back to Council with its recommendation(s) on same.

 

 

CONSULTATION

 

This item will be advertised in the local dailies as part of the Public Meeting Advertisement on Friday preceding the Committee meeting.

 

 

FINANCIAL IMPLICATIONS

 

During 2010, Council established a new Audit, Budget and Finance Committee.  Prior to each yearly budget cycle, the Audit, Budget and Finance Committee will receive and discuss a Budget Timetable and Process report. 

 

As this motion deals with the manner in which budget requests may be prioritized, Committee may want to direct staff to include the subject of this motion in the 2011 Budget Timetable and Process report that will come before the Audit, Budget and Finance Committee prior to the next budget cycle. 

 

 

LEGAL / RISK MANAGEMENT IMPLICATIONS

 

There are no legal/risk management impediments to implementing the recommendation in this report.

 

 


RURAL IMPLICATIONS

 

N/A

 

 

DISPOSITION

 

Staff to implement Council’s decision.



2011 BUDGET DEVELOPMENT PROCESS – PRIORITY TO PROJECTS AND SERVICES WILL REDUCE OVERALL OPERATING COSTS IN THE SHORT, MEDIUM, AND LONG TERM

PROCESSUS D’ÉLABORATION DU BUDGET DE 2011 – LA PRIORITÉ AUX PROJETS ET AUX SERVICES PERMETTRA DE RÉDUIRE LES COÛTS GLOBAUX DE FONCTIONNEMENT À COURT, MOYEN ET LONG TERME

(Referred from City Council meeting of 25, 26 and 28 January 2010 / Reporté de la réunion du Conseil municipal du 25, 26 et 28 janvier 2010)

ACS2010-CCS-ABF-0004                                    CITY-WIDE / À L’ÉCHELLE DE LA VILLE

 

Committee dealt with items 1 and 2 concurrently.  For a summary of the discussion, see Minutes under item 1.

 

Moved by Councillor J. Harder

 

WHEREAS items 1 and 2 of Audit, Budget and Finance Committee Agenda 8 relate to the 2011 Budget and the 2011 Budget process;

 

THEREFORE BE IT RESOLVED that the recommendation contained at item 1 be referred to staff with a direction to incorporate the subject of this recommendation into the report to come forward in the fall of 2010 with respect to the 2011 Budget process and timetable;

 

AND BE IT FURTHER RESOLVED that the recommendation contained at item 2 be received.

 

                                                                                                            CARRIED

 

That the Audit, Budget and Finance Committee consider the following motion, for recommendation to Council:

 

That the LRFP Working Group review ways that the 2011 budget development process be adjusted to give priority to all projects and services that will in the short, medium, and long term reduce the overall operating costs required by the City of Ottawa to deliver municipal services; and review ways that the budget development process could be changed to identify all projects and services which attract operational costs that rise faster than the rate of inflation and that these projects be given secondary status for approval.

 

                                                                                                            RECEIVED