THE CORPORATION OF THE CITY OF PORT COQUITLAM
MAR 1 1 1991
MEMO

TO B. Kirk DATE: March 08, 1991
City Administrator

FROM: Audit Committee
SUBJECT: 1991 Budget

RECOMMENDATION:
That City Council approve the following:

1) That Council defer decisions on all capital projects which are funded from tax
revenue, until such time as our budget is finalized.

2) That Council place a hiring "freeze" until our budget is finalized.

BACKGROUND & COMMENTS:

As Council is aware we will be faced with passing along a significant tax increase to our
taxpayers with the budget as it now stands. The Committee feels that passage of the two
recommendations may slightly delay some projects, but will enable Council to retain what
flexibility is available until the budget is addressed.

As it is expected that the budget will be dealt with in the next month, a lengthy delay in
any project is not expected.

Capital expenditures:

Our provisional budget includes the amount of $1.3 million to be spent from current tax
revenue on capital items. The Committee feels that this portion of the budget is somewhat
discretionary and does not want to see the funds being allocated to specifics while the total
remains subject to change.

Review staffing when vacancies occur
The Committee feels that a serious review should be given to any vacancy which occurs in

the organization and that Council should not consider any farther permanent increases in
staffing until such time as the budget review is completed. |