City Hall Budget Numbers Do Not Balance

I voiced my concern in January and April 2010 that the 2010 Ottawa Budget numbers for salaries, wages and benefits did not balance with the relative numbers in the 2008 audited financial statements.

This revelation raised much concern at City Hall. After denials and insults from the City, Staff finally explained that the 2010 salaries, wages and benefits budget did not include employee expense associated with the Rate Supported water and sewer operations, our local boards and agencies, such as Ottawa Community Housing Corporation, and adjustments for post retirement and post employment expenses.

This is all well and good, but the annual city budget must include “all” consolidated revenue and expenses. Otherwise, what is the use of having a partial budget?

I told you so.

My prediction was that the 2009 audited financial statements would reflect employee expense  at $1.3 Billion Dollars or so. Well, the recently released 2009 audited financial statements reflect this expense at $1,258,000,000. So my projection was off slightly, but certainly not off the point that the 2010 Budget and 2009 audited financial statements for employee expense did not add up.

In the adopted 2010 Ottawa Budget, the “Actual” figure for 2009 employee expense, including overtime, was $1,185,650,000. The audited 2009 audited financial statements reflect $1,258,000,000 in employee expense.

Now, that really makes my point!

There is a difference of $72 Million dollars between the 2009 budget figure and the 2009 audited financial statements, and Ottawa residents want the difference identified.

Ottawa Council must present an annual budget that includes all operations of the City and operations owned by the city, including all boards. This is a democracy for heavens sake and it is an absolute insult that this critical information must be dragged out of Council.

Or, were Council Members aware of this?


Bill O’Malley

The Party at City Hall is Over

 

                                  What a Party It Has Been!

Anyone running in the Ottawa municipal election this fall should be aware of the preliminary financial results for 2009 and the comparative financial figures from the year of amalgamation. If elected, you will be a “Steward” of the taxpayer’s money. You will have a major job to perform in cleaning up the financial mess created by those councillors that have more than 8 years on council. Every one of them is to blame because they have not spoken out on the subject.

Also to Blame:

-Not the current Mayor. He spoke out about union wages and benefits and paid the price.

-Senior Management for incompetence and inefficiency

-Greedy Greedy Public Sector Unions

-And, the McGuinty government for allowing outrageous wage and benefit settlements in the Ontario public sector that filtered down to Ontario municipalities by unelected and irresponsible, so called, arbitrators.

Ottawa is the worst performing municipality in Ontario considering financial results in two categories of expenses: (1) Salary, wages and employee benefits and (2) Contracted Services. This takes into consideration the official growth in population in the City of Ottawa between 2001 and 2006 by Stats Canada of 4% and estimated (liberally) at 4% since the census to the end of 2009. The population growth of 8% during the 2000-2009 period is miniscule compared to the growth in city revenue and expenses.

The following financial figures do not include the extremely generous “unfunded future employee benefits” which will keep the taxpayers in the poor house for years to come.

The financial figures represent a summary of the position of the City of Ottawa. The “drilled down” numbers for the comparative period will be available for resident taxpayers and individuals running for council, no matter what your political thinking may be, in the very near future.  Simply put, Ottawa cannot continue to increase taxes and user fees and hand over this money to employees and consultants and contractors.

Take a hard look at the numbers and ask yourself the questions: Think about low interest rates, low inflation and the efficiencies that were promised by Bob Chiarelli.

The Highlights:

Annual Revenue in 2009 is $953 million higher that in the year 2000

The Category: Salary, wages and benefits is $593 million higher than in the year 2000

The Category: Contracted Services is $116 million higher than in the year 2000 (2000 is estimated at $60 million)

These two expense categories accounted for 75% of the expenditure of the additional revenue generated.

Please note:

Financial figures are compared from the day of Amalgamation (Dec 31 2000) to December 31 2009 unless otherwise indicated by *.  Some classes of revenue and expenses have been reclassified as demanded by the Province of Ontario. See Note 18 in the 2009 audited financial statements.

Comments to wmomalley@gmail.com

Municipalities Out Of Control

Source: Audited Financial Statements
City of Ottawa
As at Dec 31st							%
000’S	Amalgamation						Increase
	Date
Revenues	2000		2004		2009
Net taxes available for municipal purposes	$934,243		$1,059,355		$1,286,044		37.66
Fees and User Charges	$375,232		$467,690		$623,350		66.12
Government Grants	$276,127		$363,975		$471,419		70.73
Investment Income	$45,158		$40,448		$26,071		-42.27
Contributed Tangible Capital Assets	N/A		N/A		$145,296		N/A
Interest from Ottawa Holding Inc.	N/A		$16,455		N/A		N/A
Equity in earnings of government  business enterprises	N/A		$19,659		$29,414 *		49.62
Fines and Penalties	N/A		$18,767		$23,567 *		25.58
Development Charges	$11,144		$47,052		$81,392		630.37
Other Revenue	$101,365		$30,321		$10,369		-89.77
Total Operating Revenue	$1,743,269		$2,044,063		$2,696,922		54.70
Operating expenditures by object							%
	2000		2004		2009		Increase
Salaries, wages and employee benefits	$665,004		$922,292		$1,258,156		89.20
Contracted and general services	$0		$86,219		$176,315 *		104.50
Materials, equipment and supplies	$329,343		$296,878		$500,698		52.03
Interest charges	$55,164		$61,462		$64,594		17.09
Rents and financial expenses	N/A		$35,537		$51,634 *		45.30
Third-party social, cultural and recreation programs	N/A		$313,153		N/A		N/A
Capital Expenditures	$311,963		N/A		N/A		N/A
Other	$356,047		N/A		N/A		N/A
External Transfers	N/A		N/A		$335,185 *		N/A
Amortization	N/A		N/A		$208,205 *		N/A
Expenditures recovered from capital	N/A		-$28,855		N/A		N/A
Total Operating Expenses	$1,717,521		$1,686,686		$2,594,787		51.08