Municipal Budget Time Posing Special Challenges for Interior Communities
By 250 News
Wednesday, January 07, 2009 04:00 AM
Prince George, B.C. - It won’t be long before the City of Prince George and communities throughout the province, start budget deliberations.
This may be one of the most difficult budget years for many communities as the downturn in the economy leaves them with trying to balance spending and taxes with the reduced pay cheques for many residents because of cuts by their employers who are trying to balance their own books.
In Prince George, Lakeland Mills has already sent a letter to the City of Prince George requesting the City sharpen its pencils and make some cuts. According to the letter from Lakeland’s President, Keith Anderson, his company paid nearly half a million dollars in property taxes last year. The company, says Anderson, has taken measures to reduce costs in all areas under its control and that it is continuing operations only because they are losing less money by staying open than they would if they shut it down altogether.
That mill employs 165 people.
Manager of Financial Services, Kathleen Soltis, says Anderson will be invited to state his case to Council during the budget meetings that get underway in February “At the beginning of each meeting there’s 15 minutes where the public can come and make comments so in our letter of response to Lakeland we would invite them to make a presentation at the beginning of one of those meetings.”
Anderson is calling for significant cuts on the part of City hall, his letter requests an overall reduction of about 20%. Soltis says cuts of that depth are possible, “Possible yes, but likely not practical.”
Mackenzie has suffered greatly over the past year with the loss of jobs in the forestry sector, but it has something going for it that Prince George does not, Mackenzie has no debt. “We have always had a reserve and right now there is about $1.4 million in that reserve” says Mayor Stephanie Killam. “We have been very fortunate in landing grants and being able to leverage those grants for more dollars.”
While the mills may be idle, they have not applied for any changes to their status, so their tax base remains the same.
There is still an outstanding tax bill from the former Pope and Talbot mill which is now owned by Worthington Properties. That bill is for $2 million dollars and Mackenzie’s lawyers are watching the situation closely.
Administrative staff in Mackenzie took a 5% pay rollback a couple of years ago. “That was really important” says Killam, “it shows they believe in this community .” The unionized employees head into negotiations for a new contract soon.
Still, Killam says budget time won’t be easy, “We will be looking at our operations and for efficiencies that can be made.”
Quesnel is also facing an interesting budget year. The people in that community voted in favour of a new 2,000 seat arena that will require the community to raise about $15 million dollars. The owners of the mills in Quesnel had sent out a strong signal last fall, urging voters to veto the arena because of the tax implications during the difficult economic times facing the companies.
The owners had taken out an ad just before the municipal election and the referendum on the rec centre. The ad warned increases to property taxes because of the new facility could have repercussions "Every dollar of additional expense our companies face in taxes further jeopardizes the jobs we have been able to retain during these difficult times."
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The clearing on Highway 16 between PG and Bednesti is pathetic. I realize it has been snowing continuously for some time now, but the clearing past the district line is much better on the Vanderhoof side near the bottom of the Cluculz hill.
This is not a new issue. The clearing is continuously better on the Vanderhoof side, while the highway is regularly much worse on the PG side.
Is there anything that can be done? Is there anywhere we can call to complain? Who is responsible for clearing the highways?
Whoever it is, they are not doing a very good job.