An 11% staff vacancy rate at Coquitlam city hall will help with this year's projected $5-million deficit, the city manager said this week.

At Monday's strategic priorities committee meeting, Peter Steblin told city councillors the human resources division isn't in a rush to permanently fill 82 empty jobs during the recession (the vacancies are as of April 30).

Typically, he said, a 5% vacancy rate is normal for the municipality, which serves 120,000 residents. "It's one of the items that's helping us address the revenue shortfall," Steblin said of the large number of job openings.

Sheena MacLeod, manager of financial services, agreed the city is seeing some savings but 32 of the 82 staff positions, or 40%, have been temporarily back-filled with external employees to keep services in line. MacLeod said labour this year represents about 60% — or $68 million — of the city's $150-million operational budget.

The unfilled vacancies will save the city between $1 million and $2 million this year, Steblin said.

According to the 2009 First Trimester report by deputy city manager John DuMont, staff turnover has been slightly lower this year than in the same period last year but absentee totals are up for employees on sick or medical leave.

Besides the vacancy savings, Steblin said management is also taking a hard look at its bottom line for city departments: cyclical audits will find efficiencies by cutting discretionary spending, he said. The first line-by-line review shaved 5%, or $50,000, from the communications division, as recommended by a consultant. Next up are audits for environmental services and land management.

DuMont said the anticipated $5-million shortfall is due to a decline in interest rates and development cost charges, which are paid by developers for infrastructure-related work. Casino revenues from the Boulevard Casino have remained steady, though.

The city has already taken out a short-term, $12-million loan from the Municipal Finance Authority of B.C. to speed up payment on the $57.6-million ice renewal project for the Coquitlam Sports Centre.

And, last month, Steblin warned residential property taxes could rise another 6.98% next year (this year's increase was 7.4%) if council doesn't cut back on spending.

Cost drivers for the 2010 budget include contractual and committed increases, totalling $6.6 million, like for labour ($3.1 million); more Mounties ($740,000); and the facility capital program ($950,000).

DuMont said despite the economic crunch, the city is in good financial shape, although "it may be necessary to postpone completion of some non-critical initiatives," he wrote in his report.

jwarren@tricitynews.com