Mayor Nolan Crouse is not afraid of asking for more from city administration. While reviewing next year's budget for Servus Credit Union Place, the mayor issued two straight forward motions: raise revenues by another two per cent and cut spending by two per cent.
"I just want to make sure we're pushing ourselves to the maximum," Crouse later told the Gazette.
The motions, to be debated later this month, came after council spent 90 minutes Thursday reviewing the Servus Place budget. The facility is budgeted to lose $1.7 million in 2009, slightly more than the year-end forecast for 2008.
The 2009 budget continues positive momentum made since the $2.2-million loss that caused a firestorm in late 2007. Since the Servus Place task force, costs have been cut and revenues increased. This year the facility is on pace to lose $550,000 less than the $2.1 million deficit built into the amended 2008 budget.
Next year's budget forecasts $9 million in revenue and $10.7 million in spending.
Membership dollars, which account for about 60 per cent of revenue, is expected to increase 11 per cent in 2009. Part of that is due to fee hikes that came into effect in September, but there is also a goal of selling 5,981 membership units, up from 5,500 units in budget 2008. (A family of four equals four members, but one paid membership unit.)
Don't pass out the gold stars yet. The mayor continues to assert administration is too conservative with the numbers.
The mayor's motions highlight the delicate balancing act that is the Servus Place budget.
On one hand, the public demands improved fiscal performance and accountability, rightfully so.
But on the other hand, if the budget aims higher than Servus Place can deliver, the city risks the possibility of having to go back to taxpayers (again) to make up the difference. That likely would re-ignite the public backlash that erupted last spring (which some have argued was a carryover from the 2004 plebiscite results).
Another poor showing would be disastrous, indeed.
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