By Rob Foster
The budget for the Town of Lincoln is now complete for 2011, having been voted upon and passed this past February 7.
This is considerably sooner than other governments in Niagara, not to mention across Ontario. It should be noted, however, that from a Lincoln point of view, this is considerably later than normal over the past 10 years, with most budgets being completed by mid-December.
Lincoln Council has for many years adopted a series of financial principles, particularly around budgets, that have required the municipality and its staff to behave very much like a private corporation – this has meant budgets are completed before the upcoming fiscal year (except when elections are involved).
The benefits to following these values has been important for the Town – tenders and RFPs are out early, best prices are usually garnered and capital projects are able to start as soon as the frost comes out of the ground.
For instance, in 2009, all of the road construction projects came in considerably under budget, allowing many more miles of road to be improved. The trend continued into 2010, with savings seen in water, sewer and road construction in the municipality. While some municipalities in Niagara have allowed infrastructure projects costs to balloon, Lincoln has been able to keep capital costs well under control.
But even with all these positives, there are some gray clouds appearing on the horizon, and it is coming down to a very simple question – are smaller towns like Lincoln sustainable into the future? This was the question when I first came on Council in 2001, and it is rearing its head again.
Given the cost structures we are facing; given $100 dollar oil prices, given significantly increasing labour costs, given new and more onerous provincial regulations in the municipal sphere, and given the end to boundary expansions for so many municipalities (in Niagara and other regions in Golden Horsehoe) thanks to the Greenbelt, there is a real question as to whether small municipalities can survive.
In Lincoln, almost one half of every tax dollar goes to Niagara Region. And, not being completely satisfied with what they are already doing, Niagara Region is hell bent on getting involved with new ventures, including airports and inter-municipal transit, all of which have the real potential of bloating the already bloated regional government.
(It is really quite sad when the largest employer in the Region of Niagara is the Region of Niagara. But I digress.)
What this is all coming down to is the fact that there are only so many tax dollars that can be drawn from taxpayers and that, even with the most effective and efficient of budget processes, we simply may need to be completely re-examining how government works in Niagara.
It is my intention to explore this and many other issues in more detail in upcoming discussions, particularly examining them from the Lincoln point of view.
Rob Foster is a resident of Lincoln, Ontario and an elected member of that town’s council.
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