HomeMy WebLinkAboutCAO-08-043 - 2009 Potential Operating Budget Reductions~~~~~~
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Report To: Chair Berry Vrbanovic and Members of Finance and
Corporate Services Committee
Date of Meeting: January 12, 2009
Submitted By: Carla Ladd
Prepared By: Carla Ladd
Ward(s} Involved: N/A
Date of Report: December 18, 2008
Report No.: CAO 08-043
Subject: OPERATING BUDGET REDUCTIONS
RECOMMENDATION:
For information
BACKGROUND:
As requested at the December 8, 2008 Finance and Corporate Services Committee, this report
provides additional information about those items included on a list of potential operating budget
reductions as they pertain to functions and services within the CAO's area.
REPORT:
There were three proposed operating budget reductions eminating from the CAO's area, two of
which relate to grants affiliated with Economic Development and one related to staffing in the
CAO's office.
The first proposed reduction is in relation to the grant for the Physician Recruitment program
operated by the Chamber of Commerce. This grant is in the amount of $20,000 and is part of
the Annual Operating Grant allocations. The purpose of the grant is to assist the Chamber of
Commerce in attracting new physicians to the region. This program has been ongoing for many
years and the approach to this work has changed in that Chamber staff are now dedicated full
time to this work rather than a number of partners each contributing time and funding. Given
this change in approach, we questioned whether our annual grant should be going toward
salaries of Chamber staff, however upon further discussion with the Chamber, we were
reminded that this is a 5 year program to which the City committed ongoing funding under the
new operating model. Therefore we are recommending that this reduction be eliminated
from the list and that the grant continue through the 5 year program.
The second proposed reduction is relative to the $30,000 grant for Communitech funded from
General Expenses. This grant is in addition to the $5,000 membership fee which the City will
continue to pay. The $30,000 grant was originally a one time request to support the creation of
a job portal to attract new technology workers to the region. The project has been completed
however Communitech continued to request the $30,000 grant each year. Since Council has
not had a presentation by Communitech about the use of or need for these funds, we believe
that it is appropriate to discontinue what was to be a one year special funding request. It is
important to note that we continue to support Communitech in many other ways, including
membership fees and partnering in the proposal for a DMCC (Digital Media Convergence
Centre) which includes financial support of $500,000.
Finally, a third reduction is related to funds in the amount of $96,000 for staff which were being
held in Vacancy Management. These funds were reserved from a portion of the monies which
were saved from excess wages achieved through the automation of the print shop. The
remainder of the savings from the Print Shop have already been applied to the Operating
Budget. The monies were being held to support a second internal Audit position intended to be
pursued in late 2009. Given the position was not intended to be filled until December of 2009, it
is proposed that these funds be returned to the operating base budget. Given the importance of
this position and the potential for this position to save monies through efficiency reviews, service
rationalization and other areas of potential savings, it is our intent to pursue the addition of this
position in 2010 through the development of a business case.
FINANCIAL IMPLICATIONS:
Should Committee and Council support the proposed reductions, it would reduce the operating
budget by $126,000.
Carla Ladd
CAO