P.G. Tops List of Communities Overspending
By 250 News
Friday, November 06, 2009 03:59 AM
Prince George, B.C.- According to the Canadian Federation of Independent Business, when it comes to growth in operations spending, the city of Prince George was at the top of the list of B.C. cities with a population of more than 25,000. The good news is it is not at the top of the list of worst growth in operations spending among central interior and northern communities.
The report is based on information from 2007, and indicates municipal operating spending in BC continues to increase at an unsustainably high rate. “This overspending comes at the expense of families, small businesses and other commercial ratepayers through property tax increases, user fee hikes, and higher transfer payments from senior levels of government” reads the report.
This latest study from CFIB found that between 2000 and 2007 (the last year data is available) municipal operating spending across BC grew by 43 per cent, while population and inflation grew by only 25 per cent. Of 153 municipalities, 129 were unable to keep operating spending growth to population and inflation.
In Prince George per capita spending in 2007 was $1,360, the highest among all communities with a population of more than 25,000 and well above the average of $1,142 within that group.
But when it comes to communities in the central interior and the north, Prince George is well down the list:
- Dawson Creek, per capita spending $2,019
- Prince Rupert per capita spending $1,846
- Kitimat per capita spending $1,831
- Quesnel per capita spending $1,681
- Williams Lake per capita spending $1,462
- Prince George per capita spending $1,142
- Terrace per capita spending $1,104
The CFIB offers several recommendations to correct the problem:
Provincial Government
• Create a provincially-appointed Municipal Auditor General to undergo value-for-money audits.
Municipal Governments
• Introduce taxation and expenditure limitation laws to constrain the growth in government operating spending to no more than population and inflation growth.
• Introduce zero-based budgeting with meaningful performance targets.
• Focus on core municipal services.
• Restrict full-time-equivalent employment and wage growth by limiting the growth in employees to the growth in population.
• Ensure that capital projects are fully financed up front by including lifetime operating and maintenance expenses in the initial cost estimates.
• Restore the municipal election vote for businesses.
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