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Breaking Down the Numbers

By 250 News

Just how much money does the City of Prince George (and therefore you as a taxpayer) owe?  After all,  whether you own a business or have a residential home, it is the taxpayer who is on the hook for the debt. 

The City published some figures Tuesday which said it has a further credit limit of $9 million dollars to service debt. In other words , according to the report we could finance a further $100,000,000 dollars at 6% over 25 years. That should leave the taxpayer more confused then ever, here are some figures extrapolated out of those numbers.

The City says it is paying $13.9 million dollars to service the debt this year. The British Columbia Municipal Finance Authority (as of this mornin)g was offering money at 4.9% over 25 years. Using the City's figures that would mean we could borrow another $200 million. 

But wait, the important issue here (and is being quietly swept under the carpet) is … HOW MUCH MONEY DOES THE CITY OWE?. 

If we are paying $13.9 million dollars in finance charges this year, then at 4.9 % we owe around $190,000,000 dollars in this city for whatever reason. 

Let's take a closer look at what that means to you.  If there are 72,406 people who live in the city (according to census in 2001 although on the city web site the population is listed as 77,000 while at the intersection of highway 97 and 16 says 81,000) and  assuming business and other services make up 40% of our tax base, it means  each man woman and child in Prince George owes around $1600.00 debt accrued on his on her behalf by the city. A family of four has an outstanding bill run up by the city on their behalf of around $6,400.00.

 Now during an election, that figure might not be the one you want trotted around the city , but unless the city can come up with a more accurate figure, without a spin, it will remain based on the interest that we are paying this year. 

That also however raises yet other issues. 

What is the City's contribution to the track facility at UNBC, $5 Million? We have joist approved a by law to borrow $27.5 million for various projects (including $ 9.4 million to start our own heating facility down town). The city says it won’t undertake the heating project without senior government participation but the by law refers only to the city borrowing $9.4 million no reference to any other level of government. 

Then there is the Cameron St. Bridge. 

Those who are pushing the project say our share of the bill  will be $7.5 million in municipal taxpayers money. The bridge total cost is just over $21 million, and if no senior government grants are handed out, we might have to "go it alone" were the words used by Mayor Colin Kinsley. 

Those three items alone total $40. million and that is assuming the federal and provincial government come forward with some very hefty grants. 

That would put our borrowing at around $230 million in a city where we have just climbed out of a recession and are being forewarned that within the next five to seven years we will hit the wall again.
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