Prince George, BC – Prince George City Councillors gather for the first scheduled budget meetings to discuss the proposed 2013 budget, which includes a tax increase of 3.5-percent.

The first budget session begins at 3:30pm this afternoon and will not be available via live webcast, the evening session opens at 6pm, with the first 15-minutes set aside for public input.

In his report to Council, the City’s Manager of Financial Planning, Kris Dalio, outlines a proposed budget that maintains core services levels and meets contractual obligations with general operating expenditures of $121.6-million dollars, up from $117.9-million last year.

The only submission for a service enhancement included in this year’s budget is a proposed grant program that would restore the Permissive Tax Exemption to 100-percent for the coming year, from 97-percent.  The local organizations affected by this change (many non-profits) have argued for a restoration of the tax break, saying even paying three-percent of their tax bill would present an undue hardship.

Councillors will consider creating a grant program to cover the the one-time expense of $80-thousand dollar, a report from the Office of the City Manager says it would not become part of base funding and equates to 0.1-percent of this year’s increase in the tax levy.  The enhancement would only cover the municipal tax portion of the outstanding 3-percent in property taxes – if Council opts to also cover the tax collected on behalf of other governments (Regional District, 911, Hospital, Schools, etc) to the full amount, it would cost another $45-thousand dollars.

Both Initiatives Prince George and Tourism Prince George will present their budgets for the coming year before the dinner break, the Prince George Public Library, Aquatics, and CN Centre will be up for discussion during the evening session.