Bolin's Blog and Grill

The Finance Policy Committee of the Whole meets periodically to discuss the budget and, as the name implies, policies related to the budget.  Two items were of particular interest at the meeting on Monday, August 17:  Policies relating to the terms and conditions of city management staff and funding for a new theatre.

Councillor Bestwick brought forward a motion that the city bylaw dealing with management compensation and related employment conditions be reviewed.  This motion with amendment to include the terms and conditions of the CUPE, Fire Fighter and city contractors was passed with only Councillor McNabb dissenting.  It will be interesting to see the nature of this examination and what, if any, modifications to the bylaw will be made.  Readers should note that at this time the bylaw is not available on the city's web site.  It make for interesting reading and all can compare these terms and conditions to their own.

The Port Theatre Society made a last minute appearance with a request for a $2 million loan guarantee from the city to enable them to pursue an $8.5 million dollar grant request from the federal government.  The $2 million guarantee will only be needed if the money is forthcoming from the feds, so if that grant falls through, no harm done.  If the grant is made however, the City is responsible for the $2 million loan (which the Port Theatre Society hopes to raise and thus eliminate the debt), plus any cost overruns, plus the operating expenses of the facility forever.  To the best of my knowledge there has been no risk analysis on this project, nor any detailed market analysis.  The last I knew, it cost taxpayers about $5 for each ticket sold at the Port Theatre, i.e. 100,000 seats sold in a year and a $500,000 annual grant from city taxpayers.  Also, the city recently purchased another theatre and added it to our local stage inventory. 

This may be a good deal if all goes well, but if it does not ????  Who is holding the bag???  Nanaimo taxpayers have seen several very costly deals go sour when "partners" fail to perform.  I keep my fingers crossed for the grant and for the success of the project, but if it does succeed it will be without the appropriate examination -- a shot in the dark.  We all have to gamble all the time.  The question is whether we are playing the odds or praying for luck.

It was also revealed at Monday's meeting that the "Hay" system report which is used by the city to set pay scales has been received.  It was not provided to Council?  Why not?  What massaging goes on before the information is given to our elected representatives?