St. John's needs to reduce employee numbers, says Charlie Oliver

A well-known property management specialist in St. John's says the city is overstaffed, especially when it comes to inspection services.

But city officials say measures have been taken in response to the economic downturn, and more efficiencies are being explored.

• Property taxes rise with new St. John's budget
• St. John's building permits down by 37% so far this year

Charlie Oliver,the owner ofMartek Morgan Finch Inc., the largest manager of commercial real estate in the province, hasbeen an outspoken critic of the city's 2016 budget, most notably a plan to increase taxation on vacant commercial properties by 2018.

He was among some 40 members of the St. John's Board of Trade who gathered on Thursday to voice their concerns about the tax implications in this year's budget.

The board is describing the budget as anti-development and anti-growth, with some members saying the tax increases may threaten the very viability of their operations.

Economic slowdown affecting city

Speaking later with the media, Oliver took aim at the city's staffing levels, and what he says is a spending problem by city leaders.

He highlighted the inspection services division, saying it's one area where efficiencies can be achieved.

He believes building permits have plummeted by about one-third over the past year as a result of a general slowdown in the provincial economy.

He said the city beefedup this division during the building boom of the last decade, and should now take corrective action in the face of a slowdown.

"Sad to say, the city should be laying off its staff," said Oliver.

"They should be reducing expenses, and they should beseeking efficiencies which, though they pay lip service to the factthatthey are, the city is not doing it."

Oliver also drew attention to the steep upward trajectory of the city's annual operating budget, which now stands at more than $300 million, and is poised to reach $316 million by 2018.

"[The city]is nolonger aware of its spending habits," Oliver charged.

City looking for more efficiencies

According to the city's website, the inspection division of the Department of Planning, Development and Engineeringis responsible for the processing of applications for permits as it relates to construction, renovation and occupancy changes for new and existing commercial and residential properties.

Among other things, employees ensure properties meet proper building, electrical, plumbing and fire and life safety codes.

In a statement to CBC News, a city spokesperson said measures have been taken in response to the decline in development.

The statement said the director, senior manager, planner and two inspector positions have been eliminated and "we continue to evaluate our operation to look for efficiencies."