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City ranks low in wasteful spending report

The City of Burnaby placed 121 out of 153 municipalities in the Canadian Federation of Business' annual Municipal Spending Watch report.

The City of Burnaby placed 121 out of 153 municipalities in the Canadian Federation of Business' annual Municipal Spending Watch report.

The report, which assesses the worst civic spenders in terms of operating spending per capita in comparison with population and inflation increases, was released earlier this week.

"It isn't the worst, but it isn't the best, either," said Shachi Kurl, the federation's director of provincial affairs for British Columbia and the Yukon.

"What saved Burnaby here is that its operating spending level was relatively low," she said, adding that because there was a 12 per cent population increase between 2000 and 2009, the impact was more spread out.

Burnaby's operating spending per capita was $1,171 in 2009.

The city's operating spending per capita increased by 24 per cent between 2000 and 2009, according to the report, an increase more than three times the city's population increase during that same period.

The city's real operating spending growth increased by 38 per cent during that time.

Burnaby's mayor and council have been diligent about defining core services, according to Kurl, who said that contributed to a lower operating spending level, as well.

Despite ranking low overall, the 24 per cent increase in per capita spending is "still significant," Kurl added.

The spending increase was likely due to a number of "big ticket" projects in the city, according to Burnaby Mayor Derek Corrigan.

He pointed to the increase in RCMP officer positions in the city, adding that the public had asked for increased public safety and filling those positions costs money.

Corrigan also said the addition of a new fire hall with 25 fire fighters added to the city's recent operating budgets, but it is something the city committed to a decade ago.

He acknowledged that operating spending levels are disproportionate to the population growth but emphasized the projects were important to the city.

City salaries were another big cost increase during the past decade, he said.

Senior levels of government decide the RCMP contracts, Corrigan said, while the negotiations with Burnaby Fire Fighters

IAFF Local 323 and the Canadian Union of Public Employees were done through arbitration.

"They may look good at the time," he said of the contracts, "but as inflation rates drop, we still have to pay them."

Many costs are downloaded to the city from senior levels of government, Corrigan added, and others - such as TransLink funding and water quality - are decided by the provincial or federal governments.

"Costs are placed upon us," he said.

Corrigan said he did not put much stock in the federation's report, as it uses bulk figures and isn't specific enough in its research.

Capital budgets, regional district and TransLink expenditures were not included in the federation's report.

The operating costs include city salaries and municipal services.

Lee Rankin, former Burnaby councillor and TEAM Burnaby council candidate, said the city's spending is "absolutely shocking."

"Spending is completely out of control," he said, adding that the current Burnaby Citizens Association council is not able to control costs.

He added that the constant increase in property tax rates in Burnaby needs to be addressed.

Residential property taxes increased by 2.95 per cent in 2011, as did business and major industry. Light industry property taxes increased by 10.24 per cent.

TEAM candidates have committed to holding public budget consultations and consulting with the business community about business tax rates if elected, he pointed out.

B u r n a b y Municipal Green council candidate Adrianne Merlo said city spending is a big issue this election.

"We need to elect a council that's respectful of its employer," she said, adding many of the residents she has spoken with are upset about city spending and tax increases.

One of the issues she's most concerned about are the salary raises Burnaby council and mayor have given themselves during the past few years, she said.

Another is surplus costs, such as the more than $30,000 spent on a volunteer appreciation dinner this year, she said.

It is difficult to get a clear picture of Burnaby's spending, she said, adding Burnaby needs a more transparent and accountable city government.

The federation has prepared a taxpayer pledge for municipal candidates in the region.

The pledge asks that candidates commit to three principles: property tax fairness, by narrowing the gap between commercial and residential property taxes in each year of their term; spending restraint, by keeping operating spending increases at the rate of population and inflation, or growth in disposable incomes; and municipal accountability, by supporting the creation of a municipal auditor for B.C.

None of the Burnaby candidates had signed the pledge, which is on the federation's website, by noon Tuesday.

For the full report and the pledge, go to www.cfib-fcei.ca.