Follow the money: New report on municipal spending has good news, bad news for Nelson
By Nelson Daily Editor
One day before Nelsonites head to the polls in the 2011 Municipal Election there is good and some bad news on how previous councils have managed taxpayer’s money in the last decade.
A recent report released from the Canadian Federation of Independent Business ranked the City in the top 15 out of 153 communities in B.C. on how City spending has increased over the last 10 years versus population growth — Nelson coming in 15 spots (at 138th) away from the best spending community in the province: Tumbler Ridge.
But in 2009, the last year for the report, Nelson was one of the highest spending communities for their size in the province.
The report, B.C. Municipal Spending Watch report for 2000-2009, ranked all B.C. communities from worst to best in spending, number one being the worst and 153 being the best.
With $2,588 in operating spending per capita in 2009, Nelson held the rank of second highest in its municipal ranking of populations between 5,000 and 9,999 — and 16th highest overall out of 153 communities.
That placed the Heritage City at $1,102 over the provincial average in capital spending in their category ($1,486), but well below the highest spending community overall in the province, Whistler, that doled out $6,306 per capita.
The other Nelson, Fort Nelson (Northern Rockies RM), was the highest spending community in Nelson’s category with $3,126 spent per capita.
Other West Kootenay communities fared better. Trail spent only $1,888 per capita (117) while Castlegar keep their per capita spending down to $1,339 (73). Creston was only $1,178 per capita for a ranking of 53.
The lowest per capita spending community was Coldstream at $541.
However, between 2000 and 2009 City Hall’s spending versus population growth showed the City was near the top of the heap, not the bottom like the 2009 figures showed.
The city grew by seven per cent between 2000 to 2009, while real operating spending growth increased by only 13 per cent. That meant a real operating spending per capita growth of five per cent in a decade.
That put Nelson in second — behind Qualicum Beach — in the 5,000 to 9,999 municipal population category. Castlegar was third behind Nelson in the same population category at 132, Trail was rated 98 and Creston was 55.
In the smaller community category (under 5,000), Kaslo was the eighth lowest in their real operating spending growth per capita over the last 10 years, spending actually dropping four per cent despite their population growing by 13 per cent. In Rossland, the ninth ranked community, population decreased four per cent while spending dropped seven percent.
For municipalities below 5,000, the West Kootenay community with the best 2009 operating spending per capita was Fruitvale at $670 (ranked fourth in the province).
Montrose was $881 per person (15), Warfield was $890 (16), Salmo came in at $968 (23), Kaslo was $1,031 (31), New Denver was $1,109 (42), Rossland $1,272 (67), Slocan was $1,476 (91), Nakusp was $1,658 (98) and Silverton proved to be the highest spender at $1,848 (113).
Operating spending in the report represents spending on ongoing programs and services for residents, excluding capital spending.
Municipal revenue in B.C. totaled $7.2 billion in 2009. According to the B.C. Ministry of Community Sport and Cultural Development, 47 per cent of aggregate revenue of B.C. municipalities came directly from taxation, while 32 per cent was from the sale of services including user fees, fines, licenses and permits.
- To view the report in its entirety, visit http://www.cfib-fcei.ca/english/research/canada/111-budgets_public_finance/3424-bc_municipal_spending_watch_2011.html
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