Citing personal differences with Mayor Sam Katz, transit boss Rick Borland stepped down yesterday just as council was voting in favour of Katz's plan to shelve rapid transit.

News of the Winnipeg Transit director's unexpected retirement filtered out during yesterday's council debate on Katz's motion to spend money earmarked for rapid transit on community clubs instead.

As expected, council approved Katz's motion 11 to five after a meeting so noisy that council's speaker threatened to clear the public galleries if order was not maintained.

Yesterday's vote means a $43-million cash infusion for recreation and community centres next year, assuming Katz can reach an agreement with the other levels of government to divert funding meant for rapid transit. The money will be spent fixing crumbling clubs, arenas and pools and possibly building new mega-centres.

With looming infrastructure repair bils and a publii confused and unsure about rapid transit, Katz said the city "can't in good conscience move ahead."

"Some councillors want to have everything, and I wish that were possible," said Katz. "We need the foundation fixed before we buy a new car."

Hope still exists for rapid transit. Council agreed to set up a task force to study the types, costs and funding options for a future rapid-transit system. That could include light rail transit, a system Katz said may make better sense for Winnipeg than the planned high-speed bus corridors.

Yesterday's six-hour debate was somewhat overshadowed by Borland's retirement announcement.

His decision comes less than a week after a leaked memo written for Katz by his senior policy expert questioned the integrity of transit staff and the accuracy of a rapid-transit study Borland had commissioned. In a blistering letter of reply, Borland demanded an apology, but never received one.

Reached by phone yesterday, Borland did not want to comment directly on the reasons for his retirement, though he made it clear that council's decision to delay the project did not prompt his resignation.

In a carefully worded letter written to transit employees, Borland pinned his decision on deteriorating relations with the mayor's office.

"It has become apparent to e that I have a fundamentally different value system than that of the mayor and his staff," wrote Borland.

"As a result, I have determined that continuing in my position as director of transit has become counterproductive to the effectiveness of the transit department."

In a brief interview yesterday, Borland said his last day will be tomorrow, after which he joked that he plans to "a lot of squash."

After 37 years with the city, Borland has been eligible for retirement for seven years. He planned to retire sometime in the next year.

Katz offered Borland best wishes, but said the mayor's office bears no responsibility for his departure.

"I think Rick Borland has served this city well and I wish him well in all his future endeavours," said Katz. "I don't believe anyone is responsible for his resignation and that's the end of that. Rick Borland was very passionate about BRT (bus rapid transit). It was his baby. There was no doubt that he was going to be disappointed."

Some councillors directly linked Borland's resignation to the rapid-transit conflict.

"I think he's sending a clear message about how he's been treated around the issue of rapid transit," said Coun. Jenny Gerbasi, who has squared off against Katz in recent weeks.

Coun. Donald Benham, also a rapid-transit booster, said Borland had been the victim of "a drive-by slagging."

City chief administrative officer Annitta Stenning rejected the suggestion that Borland's retirement is evidence of a growing gulf between the mayor's office and city staff, who feel they have not been consulted on major shifts in policy.

"Any change requires an adjustment period," said Stenning. "I really believe this will all work out and that city staff are respected by city council."

At yesterday's meeting, most politicians sided with Katz, saying they were never given all the details on the rapid-transit project because it was rolled into a federal funding deal that included the Kenaston underpass and a sewage-system upgrade. Some, such as St. Charles Coun. Peter DeSmedt, said there is value in studying rapid transit further.

Coun. Mark Lubosh noted that the city has a $1-billion infrastructure deficit and is facing a $600-million bill too overhaul community centres. The city could pursue environmentally friendly policies many other ways, such as improving the existing transit system or ending sewage overflows in to the Red River, he said.

"What we need is a reality check," said Lubosch. "I'm not committed to any new toys no matter how backward it makes us look."

Other councillors who voted with the mayor are Bill Clement, Jae Eadie, Harry Lazarenko, Mike O'Shaughnessy, Mike Pagtakhan, Gord Steeves, Franco Magnifico, and Russ Wyatt. Those who voted to save rapid transit were Gerbasi, Benham, Harvey Smith, Lillian Thomas and John Angus.

The debate was among the loudest and most crowded in recent years. The galleries were nearly full, mostly with young people who cheered and clapped when supporters of rapid transit spoke and hwne pro-transit activists submitted their 3,763-signature petition.

More than 30 people registered to speak, far more than council's rules allow, so Katz asked that the rules be tweaked to give podium time to at least the first 10 people on the speaker's list.

Pro-transit activists said rapid transit is key to a dynamic, economically viable city with a healthy downtown. They said it would be silly to hand back transit funding to the federal government when it took 30 years to get it.

But some councillors and opponents of rapid transit argued that the project doesn't benefit the whole city and doesn't enjoy the support of the public, who would rather see more cash spent on community clubs, roads and the existing transit system.

The most memorable mement came when 17-year old Lee Harber made a passionate plea for rapid transit, earning him a stadium-style whoop from the gallery.

"Rapid transit is the symbol of a more dynamic, more livable city," said Harber. "It's a candle lighting the way to a better city. Please councillors, don't extinguish the flame."

Harber lives on Katz's street in Tuxedo, and gathered 167 petition signatures from his neighbour and schoolmates.

A poll conducted earlier this week by Probe Research for the Free Press suggested Winnipeggers are deeply divided on rapid transit, with 48 per cent in favour of the idea and 50 per cent opposed.