Quesnel's Initial Budget Talks Suggest Tax Hike of 2.7 Percent

Tuesday, February 02, 2010 11:25 AM

Quesnel, B.C.- The Council for the City of Quesnel has had its first 2010 budget session which presents a possible tax hike of2.7%.

At first look, Quesnel has several challenges:

· In 2009, Northstar Lumber applied for a partial shutdown allowance, resulting in lost municipal taxes of approximately $335,000.

· Another industrial site has appealed its assessment. To be fiscally prudent, Quesnel is placing extra funds into the Tax Stabilization Reserve based upon the estimated effect of this appeal.

· Due to frozen property assessments last year, Quesnel must account for two years worth of depreciation on its industrial assessment base (about $500,000 in lost revenues based on ‘09 rates).

· The West Quesnel Land Stability program requires about $250,000 per year for five years. This is the City's contribution to match a $3.14 million grant received.

Council directed staff to prepare a budget targeting an average tax increase of between 2.4% and 3%. The City has cut close to $1 million from its initial "status-quo" operating and capital budgets to
achieve that target.

With no tax increase, the tax levy would total $11,933,000. The budgeted tax levy is $12,258,000, which represents an increase of $325,000, a real tax increase of 2.7%.

This is a preliminary number that may change once Quesnel Council has had an opportunity to fully examine all options.

It is anticipated the budget process will be complete in April, with bylaws and tax rates approved prior to May 15 . The next budget meeting for the City of Quesnel is scheduled for Monday, February 15 at 3 p.m. in the Quesnel Council Chambers

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