Attrition seen as key to balancing the books at city hall

City councillors are already looking for ways to replenish the $4.7 million draw on reserve funds needed this year to freeze taxes.

At a budget meeting Wednesday, Ward 5 Coun. Bob Kirwan proposed imposing a more stringent hiring process at the city, where every single hire must be accompanied by a business case and receive council approval.

He wants to set a goal of saving one per cent – or $2.3 million – of the city's $230 million salaries budget through attrition in the coming year, saving money by gradually shrinking the city's workforce. Kirwan also wants to give staff targets to raise new user fee revenue by increasing the number of people using city services such as Sudbury Transit, rather than just increasing user fee rates.

“We have to replace that one-time draw on reserves of $4.7 million in 2016,” he said. “A lot of the options we've put forward in the last few meetings have added costs.”

Kirwan said by setting targets for savings, it gives staff a goal to work toward.

“So we're not just trying to do better, we have a target,” he said. “I think by this time next spring, we will have achieved those levels” of savings needed to replace the draw on reserve funds.

“I really, really like the idea of setting targets,” agreed Ward 9 Coun. Deb McIntosh.

Mayor Brian Bigger said Kirwan's ideas are part of a change at city hall, where councillors are working together to set the direction for the city, setting goals that are in line with what they are hearing from their residents.

“I'm very happy happy that Coun. Kirwan brought these options forward,” he said. “I like how this is working out here. I really do believe that our staff have ideas to find efficiencies, to find ways to improve usage of our services.”

There was a note of caution from city staff, however. CFO Lorella Hayes said that, while salaries take up $232 million of the $515 million city budget, many staffers are paid through a combination of tax revenue and provincial grants. That includes ambulance drivers, staff at Pioneer Manor, police officers, etc.

“So that would require a higher attrition target in departments that are not funded 100 per cent by the tax levy,” Hayes said.

So setting a target of reducing the size of city staff by one per cent won't necessarily lead to a direct savings of $2.3 million on the levy. It would be better to an overall goal of saving the $4.7 million through attrition and user fee revenue increases, she said.

Staff will prepare a more detailed analysis of the ideas in time for the next budget meeting March 4, Hayes added.

Bigger said after the meeting councillors are gelling as a group and that unity was paying off as they work to achieve common budget goals. That includes finding money for community groups while still being fiscally responsible.

“What you saw tonight was that it wasn't just one person coming up with ideas – the ideas came from around the table,” he said. “We're working like a team. And that's really encouraging.

“We're very clear on the goals that we've set, and we're also very in tune with what the public feels is important.”

That's why they're looking for ways to improve transit, cycling infrastructure and other items that they have heard the pubic say are priorities for them. That's why they may reverse a decision to spend money on solar panels, or not proceed with an $8 million plan to retrofit the city's streetlights with LED lighting.

That money could be used for things like the $4 million stormwater project needed to address chronic flooding issues in the Flour Mill, Bigger said.

“If solar panels and LED lights are deferred, that's $6 million that we have the opportunity to use for other projects,” he said.

“It's not all about just fixing potholes. We have to really understand what the community groups want and need. I really feel there's new energy in the community in making contributions to those groups.”

Council will begin to make budget decisions at their March 4 meeting, with an eye on passing the budget March 5.