The average tax increase since 2001 is approx. 4%. These increases range from a high of 6.82% in 2007 to a low of 2.46% in 2003.

The City is probably looking at a minimum of 3% in 2014. (2013 was 3.50%)

So we are facing a VERY serious financial situation in Prince George. We have for all intents and purposes come to the end of the line when it comes to taxing and spending.

The City is looking at selling off assets such as the swimming pool, civic centre, coliseum, etc; to generate some funds, however it seems incapable of dealing with the real situation which is the cost of running the City.

I am inclined to agree with the Mayors original statement during the election that we need an across the board reduction in costs of 10%. What happened to that idea??

The City isa like a drowning person. They are flailing their arms around, splashing and yelling for help, and hoping that someone, somewhere, will pull them out of the water. For the City this is not going to happen. If we don’t fix this problem very soon we are going to drown in a sea of costs and debt.

Some 2013 General Operating Fund Expenses.

1. Debt $15,401,000.00
2. General Government $17,599,000.00
3. Protective Services $38,053,000.00
4. Recreation&Culture $19,989,000.00
5. Roads $18,343,000.00
6. Other $12,175,000.00

Total for 2013, $121,560,000.00

So, try and increase these costs by 3% for the next 10 years and see where you end up.

At the very least you would be looking at an increase of 4% per year in taxes.

Not a good situation.

Maybe there is a message there that you would be better off financially to start hanging out with the above said gang of recipients. The concept of the word principle is now such a meaningless word anymore in this day and age. Nice to be noble with empty pockets? Carry on.

Yes, BCRacer, I agree… the City has done far too much pandering to every special interest group in town (most recently the Pine Valley group).

They need to show some leadership and make some hard decisions. What is the City’s debt repayment plan? You never hear about that.

People still use phone books?

Palopu,
You’ve shown the interest that is payable on the debt each year. I can only guess what the principal payment is each year. Can anyone find this?

This is the big problem, we’ve borrowed too much for special projects (district energy, RCMP, etc.) We don’t have enough money to service the debt so we’ve been robbing funds from other areas–like road repair.

JohnnyBelt. The selling off of assets is a sign of poor management as much as anything else.

Pine Valley Golf course pays its own way as far as their operating costs go. The idea that you could sell this land and generate some extra revenue and tax is a pipedream. Firstly any extra tax that they generated would go to the operating costs of the proposed Performing Arts Centre, and who knows maybe the Wood Innovation Building.

How can you have a debt repayment plan when you just borrowed $38 Million for a new Police Station, $3 Million for new offices at 18th and Ospika, taxed the Citizens $15 Million for the Winter Games, etc; etc;.

The City is bending over backwards, not to find solutions to the problem, but to find ways to generate funds to maintain the status quo.

The status quo has to go.

Is this the same councilor who supported tax breaks for big industry so we could all pay more taxes on our homes?

Is this the same one who was ready to give a big tax break to an industrial park at the airport?

Is this the same one who didn’t even ask for a financial statement when handing over $10,000 of our money to the world baseball event?

Is this the same council member who voted yes to taking a 30% increase in pay as one of his first official acts after being elected?

um.

Icicle. The Citys long term debt is approx. $104 Million that includes the Terasen Gas (Fortis) Lease in lease out arrangement.

My understanding is that the figure of debt servicing of $15,401,000.00 includes payments on principle and interest.

Im sure someone will correct me if Im wrong.

Have a nice day.

“The City is bending over backwards, not to find solutions to the problem, but to find ways to generate funds to maintain the status quo.

The status quo has to go.”

Agreed. And they need to stop pandering to special interest groups as well. The less the City has to manage, the better. There is no reason for the City to be in the golf business, amongst other things.

But as long as the City operates in a way so as not to offend anyone by making tough decisions, the status quo will continue.

“They need to show some leadership and make some hard decisions”

I agree. To me, that means making sound planning decisions that will ensure that the city is viable 5, 10, 20 and 50 years down the road and not buckling to the pressure to earn a quick buck in the short-term at the expense of developing a community that people will want to live and invest in.

Right, NMG. Right now, it’s vocal minorities and mob rule which are having the greatest say and influence… and that’s not the right way to go.

NMG: “a community that people will want to live and invest in.”

Golf courses aside, nobody will want to live in a community that is awash in debt that can’t afford to maintain its own infrastructure. And we’re just pushing that debt to the next generation, which isn’t fair.

Sustainability is the key. The old way of having the City getting involved in all sorts of different activities not core to running a City have to stop.

NMG writes: “I agree. To me, that means making sound planning decisions that will ensure that the city is viable 5, 10, 20 and 50 years down the road and not buckling to the pressure to earn a quick buck in the short-term at the expense of developing a community that people will want to live and invest in.”

It is called the OCP for starters and according to this council it is not worth the thousands it costs to put on paper….

JohnnyBelt – then get rid of the hockey, UNBC sports Centre, PG Golf and curling subsidies to name a few and see how far that will get you.

@guesswhat: How much debt do you want to pass onto the next generation? Or is that not your concern?

As an owner of property south of the border my taxes actually went down last year and my homeowners fees, HOA, have remained the same for 3 years, yet the sidewalks are clean and in good repair, curbs, gutters, and grassed areas clean. It does indicate that city services can be maintained without the need for perpetual tax increases.
If one could ever see some improvement in the general upkeep of the city of Prince George the tax increases would not be so hard to stomach.

The debt figure, as Palopu says is interest plus principal.

Therein lies the rub. At 4% interest per year, and I think the City has access to less than that, it means that for $100,000,000 there would be about $58 million in interest to be paid.

It is ridiculous to consider the principal in the cost to the City since there is an asset that the City has now, rather than tomorrow. Not only that, but if the inflationary track record over the past 20 years will continue, then we have basically gotten an asset which would be 4%/year more expensive to purchase in the future.

Finally, to include the terasen deal in the same figure is ridiculous. If it works out then it is self supporting with a legacy at the end of some as yet undetermined value.

In addition, it has prevented us from borrowing to our real capacity for those questionable purchases …. such as potholeless roads … LOL

“As an owner of property south of the border my taxes actually went down last year”

I do not know where you are south of the border.

I know that in Bellingham, the city has grown by 20% over a 10 year period. With growth like that, there are typically no tax problems, especially since developers pay enough into the city coffers so that residents do not have to carry a significant burden as they have started to do here over that same period.

In addition, for Washington in particular, the sales tax paid by Canadians as the Canadian dollar has risen adds significantly to state, county and city coffers.

Of course, that goes up and down like a yoyo with a current drop of 5% in the power of the Canuck Loonie.

Koehler is a thoughtful decent person. Let’s hope the others see the merit of what he is proposing. The longer they wait to get a handle on this situation the more difficult it will become. The only ones happy are the money lenders.

We have to many levels of Government all running their scams err I mean taxing system.

The average taxpayer does not have a hope in hell of solving these problems unless we can get a complete ch

to continue. Unless we can get a complete change in how Governments think and do things.

As an example. When we brought in the 7 cents per litre carbon tax on gasoline, which was to keep us from driving, and buying gas, which in turn would reduce green house gas emissions, the Government said that it would be revenue neutral. The extra money paid for gas, would be reimbursed by a reduction in income taxes.

Has anyone anywhere ever actually looked at this situation with a view to determine if it is in fact a success. I sincerely doubt it. In fact Provinces without this tax, have actually reduced the amount of gas they burn, while BC with the tax has increased its consumption.

I think that we can say, that the carbon tax was just another tax grab by the Liberals.

I assume that the City pays the carbon tax on all the fuel that it burns. They then tax us citizens to cover the cost of these taxes. So in essence we pay it again. The trucking companies that pay the carbon tax pass their costs along to the consumer by increasing the cost of trucking, which increases the cost of goods bought at the local stores. So we get stuck again.

Meanwhile the Government has another revenue stream to add to the ones they already have, like Hydro, ICBC, Liquor sales, BCLC, Export tax on lumber, etc; etc; etc;.

We would have been much better off without this carbon tax. It is nothing more than BS.

We need to go to a simple tax system, so that we can keep tabs on what the hell is happening.

Hey Pal, lots of valid points. I agree. When we find ourselves paying taxes on taxes, one has to conclude there is collusion going on. Carbon tax credits! Are you kidding me? It’s a shuffle game.

In the end, the consumer pays for everything.