The first phase of Tim Commisso’s two-pronged core business review recommends the city close and sell Municipal Golf Course before the start of the 2013 golfing season.
Also up for discussion, albeit in April, is the Centennial Conservatory, which loses an estimated $600,000 annually. The three municipal golf courses lost slightly more than $400,000 in 2010.
Commisso, the city manager, said it’s time the municipality take a long, hard look at the businesses it’s in to determine what the city should offer its residents, what can be better handled by the private sector and what can be scrapped.
The core business review, which will be presented Monday to city council as a first report, would cost the city five full-time jobs should council ultimately vote in favour of phase one and divest itself of Municipal Golf Course.
Commisso said he didn’t want to tip his hat too far in advance what future recommendations might be.
“We are looking at other areas that really involve (things) where facilities are reaching the end of its useful life, technology is getting to the end of its life or market demand is perhaps decreasing,” Commisso told tbnewswatch.com on Friday afternoon.
“I’ll be bringing back another report, Phase 2, probably in about a month or so. This is going to be part of the process here, looking at how we’re going to find dollars. We’re committed to putting more money into infrastructure, and that means we’ve got to look at our services more.”
Although the report says the city is not focusing on arbitrary, across-the-board cuts to departments, Commisso said he’s looking to use the core business review to slash at least $500,000 a year from the city budget, part of $1.5 million he’s been mandated by council to cut each year for the next three years. The remainder would come from cost containment and the recently approved City Lean program.
Selling Municipal would net city coffers $100,000 in savings, at the expense of five full-time jobs.
“We can’t leave any stones unturned when we’re looking at running an efficient organization,” Mayor Keith Hobbs said, noting most of this year’s tax increase, which amounts to an average of $67 a household, will be used to cover infrastructure improvements.
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Hobbs, one of at least six voters expected to side with Commisso in February, when the sale of Municipal comes before council, on Friday said it’s time for the city to chart a new course.
“I just personally think that golf is one of those areas I don’t think we should be subsidizing. There are others that are in my mind, but I won’t talk about them now,” he said.
The report outlines guidelines to council for the rationale behind direct deliver and when it’s appropriate, purchase of service and public-versus-private sector provision.
Direct delivery includes things the city is mandated to provide under legislation, when there is no supply and when impartiality and equity is essential.
The city should not provide services when there is already a well-developed supply.
The Thunder Bay area is home to 10 golf courses, including Municipal, Strathcona and Chapples, the three courses it owns and operates.
Among the reasons for the city to allow the private sector to take charge is when there is little or no interest by residents for the city to continue in the business or when costs outweigh the benefits.
CORRECTION: The core busiess review will only look at golf courses and the conservatory, not other city facilities and services as stated in an earlier version of this story.
Follow Leith Dunick on Twitter: @LeithDunick
