Another Financial Crisis

7% - 10% Stolen From Bank Accounts

Couldn't Happen Here?

International finance and the ongoing fiscal fires our fearless world leaders have been dealing with since 2008 are well beyond the scope of this little blog. However, it is noteworthy that when our financial houses get so out of order, no remedy is off the table.

Recently residents of Cyprus awoke to find that anywhere from 7% - 10% of their bank balances were being 'taxed' to help salvage otherwise insolvent banks. There have even been threats of complete collapse of their banks without this remedy.

Could never happen in Canada? We have the deposit insurance guarantee up to $100,000 that means our money is safe and sound. Right?

Well, just who exactly do you think backs that deposit insurance program anyway?

Now, back to Nanaimo, where hopefully our leaders at city hall are acting in a responsible manner with OUR tax dollars so that our local fiscal house is being kept in order in an affordable and sustainable fashion.

 City Staff Raises Keep Up With Tax Increases ..... Do Yours?

Of course you have no trouble keeping up with local tax increases providing you work for the city in some capacity, where your wages and benefits have been going up year after year after year.

Our own city manager Mr. Kenning has seen his pay packet increase from a reported $188,550 in 2007 to a measley $223,269 in 2011, I presume another increase will have happened in 2012. From 2007 to 2012 Mr. Kenning's wage increased 18.4% or $34,719.00 per year. No wonder, he is always smiling, considering his increase in four years is nearly the equivalent of the average Nanaimo residents annual total income.

Of course you can't hold a candle to the wage demands being gained and demanded by our local firefighters. In 2007 - 2009 they managed a whopping 14% increase and are currently refusing another 5.5% increase, forcing the city to arbitration. You have to begin to wonder if Nanaimo is not just getting hosed by our local firefighters union.

Sometimes you have to really wonder just who is watching YOUR tax dollar at city hall, it would appear that council has no appetite for bringing wage increases in line with the current economic reality the rest of Nanaimo is facing. Considering wages and benefits take up nearly 80% of every tax dollar collected, you have to wonder why council never addresses this major component of our annual budget.

Come to think of it, you have to wonder if this Council and Mayor Ruttan actually address the city budget in any way more meaningful than asking Mr. Kenning what he thinks?