Ken Melamed

for your Mayor

Strong Leader, Clear Vision, Whistler Values

Category Archives: Fiscal Responsibility

How should the RMI fund be spent?

Q : How should the RMI fund be spent?
A : It is positive that we have this revenue and we can have a deeper discussion on how to invest it resort tourism. The initiative is still in its infancy and continues to evolve. The RMI provincial grant comes with conditions. The first rule is to respect the provincial interest so as to retain the funding. We are evolving the program and broader engagement is already in place and will continue. Accountability is key, and together the community will determine the best uses and delivery models.

Entrepreneurial government

Q : Should the RMOW be competing against businesses? If so, why?
A : Municipalities across Canada are being entrepreneurial in an effort to lessen the burden on the property tax base. Generally government should not be in competition with business unless there is a compelling need and the business community itself is supportive.

Financial health

Q : How will you address the financial health of the community?
A : Reduce municipal costs an keep taxes down; renew the RMI tourism stimulus funding agreement with the province and adopt a Resort Business plan in consultation with the community to identify and focus on effective next steps. Salaries at the hall seem to be a hot topic; are they? If so what are your plans? Under my leadership we have completed Phase 2 of 5 in a detailed service and organization review. We have cut $30 M in capital, $2.5 in operating and more savings will be found. We have returned staff to 2007 levels. We are not expecting any wage increases at this time.

Class 1/6

Q : Class 1/6 – do you think class 1 property owners should have to pay commercial taxes if they rent out their units on a nightly basis?

A : This has been the thinking of a number of the resort stakeholder groups. We are hearing a clear message from the Class 1 owners to consider their situation. I am keeping an open mind to possible solutions which will be the outcome of a new engagement process.

Whistler U

The proponent has been trying to gain community support for some years. They have yet to submit an application for a rezoning. When the rezoning application is submitted, it will be reviewed fairly and according to our established development approval process.

I will keep an open mind and consider the opinions of council and community members. The proposal will be reviewed in consideration of the community adopted policies set in out OCP and Whistler 2020.

FULL DISCLOSURE; I have seen several development proposals from the land owner over the last 23 years. I have questioned the development’s ability to comply with the OCP policies on increasing the Bed Cap and environmental impacts. I have also questioned the economic viability and the likelihood of delivering the promised amenities. I would support the concept of a university, at the right time and in the right place, assuming that there would be general support from the community. I completely support the current recommendations to advance opportunities for Post Secondary Education.

Municipal costs and size of government

Increasingly the size and cost of government has come under scrutiny and there is an ever greater desire for accountability and transparency over how and where tax dollars are spent.

There are sound reasons why the operating budget has increased. Staffing levels and budgets have increased due to increased service demands. We have seen growth in summer business; we have more roads, more parks, more trails, and new neighbourhoods; we have an expanded new library; new higher capacity Waste Water Treatment Plant and composter for bio-solid treatment; bigger and more buses; increased fire and police services.

Now that the Olympics are behind us it is time to reduce costs in local government to reduce the tax burden. Work began last year on a comprehensive Organizational and Service Review, and the first phase report is just out. Staffs levels are now back at 2007 levels, and $1.2 million in potential savings for 2012 have been identified, with more to come.

Whistler has a unique business model and resort structure which is difficult to benchmark and requires innovative solutions. The RMOW plays a critical role in the resort’s success and we have had great success working with our key partners. In speaking with community leaders there is shared optimism for the future. TW is forecasting a 5% increase in visits for this winter season.

Cheakamus Community Forest

I share the community’s interest about the protection of Old trees and the economics of the CCF. The Provincial government has certain expectations for local timber harvesting. Either we have some say in the process or we watch someone else do it.

We have successfully reduced the cut volume from 40,000 m3 to the current 20,000 m3. With about 15,000 hectares of working forest and a cut rate of about 40 ha/yr there is ample time to develop a responsible operating model and comply with our Ecosystem Based management objectives.

We have adopted the most environmentally responsible practices possible for the working forest, while protecting the remaining about 16,000 hectares in various age classes.

With applications going back to the mid 80’s, the province has granted the community, in partnership with our First Nation neighbours, the greatest level of control available over this critical resource.

Property Taxes

High taxes hurt business and affordability. Every effort must be made to include the community in decisions affecting the budget and to keep taxes low. In tough economic times such as these, high taxes can only be justified as a last resort and with community acceptance.

The last 4 years of above inflation tax increases were difficult yet necessary decisions to make prior to welcoming the world in 2010. They were a fiscally prudent response to 3 primary factors; 1) the 3 yr Olympic “labour peace” union contract with wage increases at 5%-5%-4% to 2011; 2) depleted municipal fund reserves 3) and the $2.2 million/yr loss when the province moved commercial tourist accommodation into residential tax class.

The Olympic Games (OG) required an intense amount of fiscal discipline, and prudence. As the smallest of the partners, Whistler had the most to risk. Strategic plans were developed to maximise success and opportunity, and minimise financial risk.

I am committed to doing everything possible to reduce or hold expenses and keep taxes as low as possible while maintaining the level of services expected by our community and the standards required for our resort economy’s success.

It is important to hold strong fiscal principles as agreed to in our long term financial plan; pay as you go, user pay, tax fairness, no tax subsidy for business, healthy reserves and low debt, among others.

Municipalities across Canada are increasingly challenged to make ends meet. Whistler recognised as a leader in developing budgets with high levels of community input and using accounting industry best practice.

Economic Viability

There is much more right than wrong about Whistler. Some businesses are flourishing while others are more concerned about the economic climate and the coming season. We are experiencing a down cycle and there is increased focus on taxation and the cost of government.

Businesses viability requires lower fixed costs and overhead. Whistler’s business to residential tax ratio is already below the provincial average at 3.5:1, and I will reduce this ratio further, streamline municipal processes, and provide greater flexibility for business.

Our fundamentals are strong. Visitor satisfaction levels are high. Given the current global circumstances our economy is healthier than most, and our profile and good will is high. We continue to receive accolades across the spectrum of the tourism industry and are justifiably regarded as one of the best mountain resorts in the world.

We have spent the last six years successfully delivering the Olympics and making sure we maximized our benefits from that opportunity. Now it is time to evolve into the next chapter, a leaner more efficient Whistler focused on the needs of our community.

Some positive signs;

  • WB skier visits back up to 2 million last winter after 3 years.
  • The busiest July and 2nd busiest August on record.
  • 5% visit increase forecast for winter and another La Niña.
  • Function Junction is in an exciting phase of entrepreneurial growth.
  • New business investments