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Budget Falls Short

By 250 News

Thursday, February 19, 2009 04:07 AM

Prince George, B.C.- The real budget struggle revealed itself  last night as  Council was advised that even with  a 3.4% tax increase, there would be a  budget shortfall of  $834 thousand.
Part of that  could be covered by using internal debt interest ($500 thousand) leaving  a shortfall of  $352 thousand. Administration  would then have to go back and find a further $352 thousand dollars in savings either by increasing revenues or  making cuts.
Then, Administration will have to  find another $834 thousand  in savings for 2010.
Development Services has  presented a road rehabilitation  budget  of $3.6 million.  The levy  for roads won't cover it "It's very simple" says Councilor Cameron Stolz "If you think our roads need repair then  you will go for option B."
Council has deferred this issue to  Monday the  23rd.
The Director of Corporate Services, Kathleen Soltis, presented a report on the proposed tax increase as compared to other communities.
Here are the planned tax increases in other communities:
Local Government
Proposed Tax Levy Increase in 2009
Township of Langley
0.00 *requested by Council to be achieved in part through withdrawals from reserves
Kamloops
2.00 * achieved through deferral of capital projects and reduced fuel costs
Quesnel
3.30
Kelowna
3.35
Prince George
3.40
Chilliwack
3.95
Maple Ridge
4.00
Nanaimo
4.10
District of NorthVancouver
4.25
Victoria
5.36
Saanich
7.00
 
Keep in mind, Prince George Council has not yet considered all of the requested enhancements, which, if approved would increase taxes in Prince George by 5.02%
Expect  major  increases on garbage pick up , sewer and water services,  the initial report  indicates the hikes should be  11% - 16%.  Those  hikes will be  finalized later this year, before the utility bills are issued for midyear.
 

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Comments

Every year, either in good times or bad. they keep wanting to bump it up 3%. I don't think my wages go up 3% every year.
I know I don't get a 3% wage hike every year
I wonder just how much more the Canadian tax payers are going to be able to handle. It is not just the governments but utilities, cost of food, gas of course and all the hidden taxes. IMO all these things are adding up to TO MUCH!! BC Hydro wants a total of 26% increases in 2009, Natural Gas wants 11%, the City wants up to 5.5% and the groceries stores are gauging as usual. There is whispers of the gas prices will sky rocket again by summer as well. On the side of US though companies are cutting back and laying off or at the very least NOT giving out raises. And through all of this we have to sit and watch those who we pay the wages to that are in charge live high on the hog. The way I see it is this economic catastrophe is not going to end soon like the propaganda dictates but will fall even further. Many more people will lose their jobs and the middle class (raped tax payers) will shrink. And at the end of it all those in charge will stupidly say OOOOOPS!
Who gives a crap what other towns pay...WE DON'T LIVE THERE!
I wonder if it possible to contract out some of the services like they do with snow removal? ie garbage pickup, street sweeping, boulevard care, etc.. I find it somewhat disturbing that EVERY year we get tax hikes. Yet wages don't increase, pot holes don't get fixed until the sometime in the summer if we're lucky, the snow removal services keep getting worse each year. Why the rate hikes? If the services are worse, or declining? I would like council to get together and instead of using the same excuses of cost of infrastructure each year, actually come up with a plan, like most families are battling with, "theres no more money, make it work with what you've got".
I do feel for our newly appointed city council, they have been forced to deal with issues and ignorance of a terrible previous mayor and council. It will take a strong team and a good business sence to turn this city around. Let's hope they have the sence to look at things through the eyes of tax payers and not for there own gain of power like the previous. If we are trying to cut and save money all the way around lets spend money on good not bad. Enough with the Cameron Street Bridge projects.
Thank you Highlanderpg! That is the best thing I have read anyone say here to date. :}
"Internal debt interest". What is that? Does the City charge itself for borrowing its own money?
The previous Council and Mayor were out of control, and nobody did anything about it.

City staff has increased in the last five years,and so have the Police force, even though the population is declining, and crime is down. We have wasted millions of dollars on such stupid things as building a new Cameron St. Bridge when we could have repaired the old one for less than a million dollars. Five years later the job is still not done and costs are still rising. The Citys ;portion will be in excess of $8 Million dollars.

We brought in a new garbage system that was to save us $75,000.00 per year, however we have increased the cost of garbage collection ever since. Where are the savings???. Our recreation facilities budget costs us in excess of $12 Million dollars per year, but we cant pay for road upgrades. The list goes on.

A lot of the money being spent is because of matching grants from other levels of Government, so the City finds goofy projects to build just to get this money. Some examples are the underpass at the bottom of Highway 16 by Carrie Jane Grey Park, $200,000.00 after it was completed they put in traffic lights two blocks North. The Kin Connector between the CN Centre and Kin 1 and 2, which cost the City over a Million dollars, and is rarely if ever used. The replay board at the CN Centre, cost us $1 Million, plus expenses to run it, and was never needed. Problem is we have to pick up the slack for years.

An example is the Charles Jago Sports Centre. Built by Provincial Government money to the tune of $25 Million, plus another $6 Million thrown in by the University and the City. The City is now on the hook for in excess of $300,000.00 per year to keep this facility open. Everybody loves the building, however very few people use it, and therefore it is a direct cost to taxpayers.

The same applies to the CN Centre $600,000.00 per year to keep this building running. The Cougers cannot pay a fair rent for this building because they cannot attract enough fans to make any money, so the City (Taxpayers) are subsidizing a private business. Whats with that.

The simple answer is that the City must reduce workers, and staff and get back to living in the real world. Thats where the money is being spent, and that is where the money can be saved.
Bravo, Palopu! Very well put.
Is'nt this just unbeleivable,for there to be tax hikes anywhere?...Its about time these clowns (all levels of Government) tried living on welfare or E.I.
We dont' get the 3% pay hikes, but the city employees do (or is it 2% - either way it's pretty darn close)
Dirt

EI wasn't meant for anyone to "live" on.
palopu, the walkway underpass on highway 16 by Carrie Jane Grey Park, was at a cost of over $900,000.00. Other than that, you are bang on! Another example of wasteful spending is, when they send 2 city employees out in a pickup truck, to shovel snow away from the fire hydrants. Seems reasonable, right? Not, one sits in the truck, while the other one does the shovelling. Could this task not be done by one person? And it goes on and on and on!
What if someone steals their truck? I guess they would call a taxi to get back to city hall. Money in the bank fer you, eh? Ha ha ha .
A very nice chart of the proposed tax increases of other cities as compared to PG
The key word here being proposed. If Ms. Soltis could do a chart comparing actual tax increase for these communities as compared to PG over a 3 or 5 year period, the figures might mean something. I'm getting very tired of various levels of government trying to blow smoke up my butt in order to justify tax increases and user fees. We are either very stupid or a bunch of sheep if we accept this drivel. End of rant.