Dear editor:

How is it acceptable to propose a property tax increase over seven times the rate of inflation?

For many years I served on the executive leadership team of a large company with multiple divisions and thousands of employees.

Each year as part of the budget process we provided specific guidance to all divisions and departments, except for the salary budget, which could be increased in line with inflation everything else had to remain flat, which meant a zero budget increase.

Shortfalls were made up through innovation, enhancing organizational effectiveness, ongoing activity analysis to identify and remove activities that no longer added meaningful value, improving efficiency and eliminating layers of management.

Improving the cost-effectiveness of an organization doesn’t happen by accident, and never happens at all unless it becomes both a priority and a mandate.

Coun. Wendy Cheropita understands that this level of tax increase is far too high, and although she acknowledges it is not final, even as a starting point it should be considered unacceptable.

She rightly talks about maintaining services and improving infrastructure, but there isn’t a single word about improving efficiencies or looking for ways to reduce administrative costs.

Kyle Freeborn, director of corporate services, does identify spending that could be cut to save money, but there is no mention of the need to improve the efficiency and cost effectiveness of the town’s operational structure and processes.

So what is the answer?

I’m not sure that council provided appropriate guidance before the budget process began. I don’t think we would be looking at a 14.4 per cent increase had they done so.

However, it is not too late to put things right.

After multiple years of budget increases well in excess of the inflation rate, I would suggest it is reasonable for this year’s budget increase to be held to two per cent.

In pursuance of this objective here are some suggestions to reduce costs: Hire a CAO with a proven track record in improving organizational effectiveness and reducing costs and a mandate to do so; stop bringing un-winnable appeals and legal actions simply as a matter of principle; eliminate all newly created and unfilled positions that are not absolutely essential to the town’s operation; examine all vacancies that arise to look at alternatives to filling them; review all layers of management with a view to flattening the structure; and develop a plan to find internal efficiencies and streamline town processes, perhaps utilizing Six Sigma process improvement methodologies, which have proven incredibly effective in both blue and white collar environments.

I know this will be difficult but the alternative is out-of-control budget increases for the foreseeable future, which is clearly unsustainable.

There is an urgent need for action now.

Jonathan Household
Old Town