Nanaimo Mayor John Ruttan sinks back into his leather office chair and ponders the question 'How would you sum up 2011?'
After a year of strong resistance to low-barrier housing projects across the city, criticism over capital expenditures like the new city annex and widening of Bowen Road, and the ever-present increase in residential tax rates, Ruttan called 2011 "challenging, but productive."
He sees 2012 as equally challenging, but in a different vein. With issues like water supply, several expensive capital projects looming, and an urgent need to develop a plan to maintain current infrastructure, Nanaimo's new city council will have its hands full stretching the taxpayers' dollar as far as it can go.
Despite a tumultuous 2011, Ruttan was solidly re-elected in November for his second term as mayor, earning 52 per cent of the vote (his closest competitor was 32 per cent), and all six incumbent councillors that ran were voted back in.
For the past four years, the News Bulletin has sat down with Ruttan between Christmas and New Year's to learn his views on the upcoming year. The following is an excerpt from a 90-minute discussion.
News Bulletin: Did your strong showing in the November election confirm to you that you're moving in the right direction?
John Ruttan: I'm optimistic the new council will see the merits in the course that we're taking and we'll continue on with it. I don't know of any large projects that we won't have council support on, recognizing that council support means five votes or more. But yes, I think voters agree with the direction I want to move in and as a result I have the privilege of serving a second term.
NB: What are the top priorities for 2012?
JR: I'm not sure I have the answer to that right now as we as a council have only met once. But we will sit down and develop a strategy and see what council as a whole sees. There are a number of major projects that are ongoing at this point like the Quarterway Bridge and several coming up shortly like the Boxwood connector project, and we're just starting the 2012 budget and five year financial plan, so there is plenty to consider as a group.
NB: Will council continue with the 24-per cent pay raise (over three years) approved by the previous council?
JR: I would expect that they would, recognizing that six of the nine councillors are back and the majority of the council supported it. There is no indication that any of the new councillors have a different point of view but they certainly have the opportunity to raise it if they feel it's an issue.
NB: Residential and commercial tax rates are increasing, water user rates are going up, as are garbage and sewer rates. Are these increases sustainable for Nanaimo taxpayers?
JR: We have to remember that council to a person isn't desirous of any increase in taxes. I think every one of us would like a zero increase, but the reality is that's very close to impossible. I cite the recent negotiations with CUPE. We have 750 staff who are CUPE members and will vote on a new contract in January, as early as February we're going to sit down with the firefighters' union and begin a discussion on contract renewals there. Most of these contracts are retroactive to Jan. 1, 2011 so some of the adjustments will be quite large. These contracts have a huge impact on the bottom line, as does the $60 million water treatment plant, the reason for the five per cent increase in water user rates. Wherever we can mitigate tax rate increases we really do try but there are a lot of external variables beyond our control.
NB: Lots of expensive capital projects coming up. An $8.5-million expansion of the RCMP building, $2.7 million for a new fire hall, $10.7 million city hall annex, Boxwood connector for $5.4 million. Can we afford these?
JR: We have budgeted for these so yes, we can afford them, but whether we can do it and keep the tax rate increases in line with an amount that is fair to the taxpayer is another question. We understand people don't want to pay more taxes, but then there is demand, as an example, for added emergency services like police and fire. Police are asking for 24 new members and each officer costs $145,000 annually (total costs). Well, the math is there, and we all agree we need protective services. People say they want a zero increase and our response is always, 'OK, what are you prepared to give up first?'
NB: Is this an accurate equation? Internal auditor+strategic consultant=core review?
JR: That's a fair question and in many cases, yes. Some of us want the core review done in different ways and some want a true core review. From what I've seen, not all core reviews in other cities have been all that successful. In Penticton, for example, which spent a lot of money on a core review, something like $150,000, and ended up putting the results on a shelf. But I think you can do productive things with an internal auditor and other mechanisms to ensure the work of the city is being done and taxpayers' money is being used correctly.
NB: Nanaimo has $2 billion in infrastructure assets. Does council feel an urgency to put a plan in place to pay for future maintenance?
JR: Yes, for sure. Obviously some of the older buildings have a limited life on them and some of the newer ones we're fine with, though some already require some work, including the Nanaimo Ice Centre. The biggest issue, however, is sub-surface work like wiring and piping. Some of our water and sewer pipes are getting very old and will need replacing, and roads always need repairs. Maintaining our 1,000 kilometres or so of roads and all the piping is a huge undertaking and we're trying to do it on a scheduled basis.
NB: When will the new Economic Development Corporation start showing results?
JR: The sooner the better, keeping in mind it is only in its first few weeks of operation. Susan Cudahy, the chief executive officer, has a very good grasp of what the job entails and how to go about it. One of the first things I see them wanting and needing to do is to get out and see what other entities outside the City of Nanaimo are interested. We see it expanding beyond the borders of the city which will eventually reduce the burden off taxpayers, who currently subsidize it for $1.3 million. It's still very early but I'm optimistic.
NB: Low-barrier housing was a battle. Will there be a tangible result in fixing the homelessness issue in Nanaimo?
JR: I sure hope so. We've gone through a lot to get this program working. But again, it will take some time, there are people on the street who don't want to be helped. The biggest thing to remember that in helping people with addictions of some form, is that until you can provide suitable housing for people, you can't help them. Once they have a place to live, they can be introduced to help. I believe it will work and if it doesn't, we will know we did the very best we could. The option was to do nothing, which to me was not acceptable.
NB: Urban deer are a growing problem. Has the city been watching how other B.C. municipalities address the issue?
JR: We're taking a wait and see attitude. We've had some difficulty trying to convince residents not to feed the deer, and made it illegal in April by providing a $100 fine. I think people now realize they've got to stop doing it. Personally, I'm not in favour of a cull. We're hoping by not allowing residents to feed the deer it will reduce populations in certain areas but time will tell.
NB: Can areas like Linley Valley be protected or are they destined for development?
JR: I really don't know. There was a parcel that residents wanted protected and I believe the price was anywhere from $6 million to $10 million. We're just not in a position to pay that much, recognizing that every $800,000 spent is one per cent of property taxes. We recognize the value of green spaces, we'd like to buy it and protect it but I don't see how we can.
NB: How significant will the issue of water be in the next 10 years?
JR: Our engineers have indicated we could arrive at our first supply crunch within a 10 year window. That's why, because of all the cost and infrastructure, we're starting now to try and find future sources of water. Our engineers tell us that given the rate of demand we're now going through, it's estimated in about 10 years time demand will exceed supply. There is the likelihood we'll need to build another dam at great expense, so we're working on that now to address the needs of the community.
NB: Is it time to set a foot passenger ferry to Vancouver and a conference centre hotel on the backburner?
JR: Both of those projects are too important to Nanaimo, and, in my opinion, the passenger ferry service is a huge opportunity for Nanaimo and certainly for the downtown core. Nanaimo's average three-bedroom home is about $360,000. In Vancouver it's about $800,000 or $900,000. With a reliable and affordable ferry I can see more and more people wanting to move here and live here and enjoy the lifestyle while commuting to Vancouver. I don't want to give up on it because I don't want anyone who's a proponent for the service or a potential investor to say they city's not interested in pursuing it so neither are we. Same for the conference centre hotel.
NB: Is it getting tougher for small business owners to succeed in Nanaimo?
JR: I would agree with that, but the economy is very cyclic and I don't think any economist is suggesting what we're experiencing today is the way it will be forever. I may be a little bullish on the subject but I really do see some great sustained growth in Nanaimo over the next 10 years. When you look at some of the major projects that are out there, like Cable Bay resort which is going through a bit of a revival, Sandstone project, a huge multimillion dollar 15-year build out, is still progressing albeit slowly. These are major, major projects and when they all come online I think we'll see some good times again and small businesses will benefit from these projects.
NB: Twenty-six per cent voter turn out at the polls in November's elections. Is it the responsibility of the city to get residents participating more in city business considering the average homeowner pays about $3,000 yearly in taxes?
JR: Twenty-six per cent is pathetic. The Catch-22 is how much of taxpayers' money do we want to spend to get people to come out and vote? It's a sad testament to all of us and those who serve in public office in any capacity, be it federal, provincial or municipal. I don't know why voters aren't interested. Whether its apathy, disinterest, or the mindset a vote won't change anything, I wish I had the answer. But we're not unique here in Nanaimo, a huge number of municipalities across B.C. are going through the same thing. It's disappointing and if anyone can come up with a suggestion that would work we'd be all ears.
NB: You hinted before your first term you had your sights set on two terms. Are you still of that mindset?
JR: Well, we're only one month in with 35 months more to go, but a lot of it depends on the successes we can earn in the next three years. There are a lot of projects we want to see started and a number we must see started, water facilities certainly being one of them. And I'd like to see the economic picture strengthen a little bit, and I like to think that will happen in 2012, and people in Nanaimo seem to be a little more optimistic than they have been. 2012 will be interesting, but 2013 and 2014 will be even better.
reporter2@nanaimobulletin.com