Budget Discussions Underway

Monday, February 08, 2010 05:11 PM

Prince George, B.C.- The City of Prince George has started it’s budget discussions with an overview of where the money comes from, and where it is expected to go.

The budget has been prepared with a 3.5% increase in mind. This starting point might have been higher had staff not already trimmed about $2.4 million from the operating budget.

In addition to taxes, the starting point of 3.5% increase hinges on a couple of other revenue streams:

Gaming: estimated to be $2.485 million

Traffic Fine Revenue: $1.2 million for 2010 (which is $80,000 less than in 2009)

New construction revenue: Need at least $700 thousand

Where does the bulk of the tax money go? Here are the high ticket items:

29% pays for Police and fire protection,
19% goes to Roads
17% pays for recreation and cultural services
14% general government services
13% fiscal services and debt charges

The balance is split between planning and environmental development, public transit, Environment and public health.

Heading into this budget deliberation, there are three requests for extras:

1. $350 thousand for Downtown Initiatives which (if approved) would boost the tax hike to 4.06%

2. Protective Services, (three additional members for the Police) While that would add .22% to the tax bill this year ( for $134,826) because the increase would only be for a partial year, that enhancement would cost $404,478 for a full year in 2011.

3. Service Agreement with the Public Library for an additional $28,137.

If all three enhancements are approved, taxes would increase by 4.33%. That would make it the third highest tax hike since 2001 when taxes increased by 4.35%. The highest increase in the past decade was in 2007 when taxes increased by 6.82%. The lowest was in 2000 when the tax increase was held at .31%.

Keep in mind, the extra levy for road rehabilitation will be increased in order to collect another $150 thousand for the road rehabilitation fund. Financial Services says the boost will add about $3 dollars to the average home owner's bill.

There is also a boost to the snow control levy. For 2010 the levy will collect $5.25 million dollars, up a quarter of a million over last year, however, as we all know, last year’s fund was bled dry in early December. The increase in the snow levy is expected to add about $5 dollars to the levy for the average homeowner.

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Posted on Monday, February 08, 2010 05:11 PM in News by 250 News

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Comments

Posted by: agitprop on February 8 2010 6:09 PM

The bulk of the money goes to salaries and benefits. Where is this breakdown?

Posted by: Palopu on February 8 2010 8:23 PM

General Government Services 14% is where the Salaries and Benefits of the 700 plus Employees are covered.

You dont have to be a genius to realize that to hold the line on costs all you need to do is

a. Dont hire anymore police
b. Dont give the bloody library anymore money.
c. No money for downtown initiaves.

Then go on to actually reduce the budget.

a. Reduce City Staff by 2%.

b. Reduce the Budget for Initiative Prince George (presenlty $2.5 Million) by 10%. (These guys are doing nothing)

C. Reduce recreational and cultural services by 2%

d. Hold off on any new Capital Projects, ie: Police Station, PA Centre, Co-Generation

e. Sell off some of the City property that is sitting idle (if possible) or at the very least dont buy anymore land for a few years.

f. Revisit the contract just signed with the Cougers management that will cost us an additional $60,000.00 per year, with a view of at least getting $3000.00 per game,. Otherwise kiss the Cougers goodby. It costs us money to keep this franchise in Prince George. If they have no fan support (and they dont) then they should be terminated. This would allow us to move the Spruce Kings to the CN Centre, and utilize that ice to the maximum, and maybe shut down the Coliseum.

Im sure there are other ways to reduce the budget, however I suspect as usual they will increase the taxes. It seems that is all they are capable of doing. Increase, increase, increase. Decrease is probably not in their vocabulary.

Posted by: Old Hippy on February 8 2010 8:49 PM

Assume the position. You are about to get screwed again.

Posted by: NMG on February 8 2010 10:15 PM

Some good suggestions by Palopu. I'd also add:

- consider short-term hiring freezes (including the replacement of people who retire)
- raise user fees for the rental of ice rinks, swimming pool rates, civic center booking fees, etc.
- consider shutting down the 4 Seasons Pool. Do we really NEED two pools in town?
- decrease the frequency of garbage pickup and snow removal. I know people will have a heart attack with this suggestion, but we don't need to break the plows out for a few inches of snow.
- keep funding for the library and similar facilities constant with what they were last year and don't consider any funding increases.

Posted by: verballabel on February 8 2010 11:59 PM

Gut the 4 Seasons and Whammy!! We have a PAC!

Posted by: gus on February 9 2010 12:59 AM

Garbage pick up.

New subdivisions no longer get mail delivered to their homes. There are ganged mail boxes at key intersections.

Put a dumpster there with recycling compartments and get people to drop off their garbage and recyclables there.

Paint some nice daisies on the outside.

Posted by: gus on February 9 2010 1:08 AM

Library ..... there is an interesting one ... it is partly sized based on the number of children using it.

Schools are being closed due to a reduction in the number of students. We have a College Library tht has expanded as well as a University library that is relatively new and has just expanded. All are accessible to the community.

We have probably increased the library capacity 10-fold since I arrived here some 35 years ago. In fact, I think that is an underestimate.

I think some of these services weere poor at one time, but now they are up to standard, of not beyond.

Snow clearing is sub-standard. Snow clearing is partially a safety issue. It is also a vehicle maintenance issue.

In order to rationailze costs and where there are savings to be had, we once again need a good inventory of the facilities and services we provide and fund those which are substandard, and cut back or hold rthe line on those that are at standard or higher.

So, who is going to tell us where we stand? Who can we believe to do an objective audit?

Posted by: Municca on February 9 2010 8:22 AM

Palapu and NMG, your suggestions are amazing. Why don’t you both go down to city hall while they are blindly and stupidly trying to figure things out and suggest these things? Please?

Posted by: acopolympics on February 9 2010 10:12 AM

Like they would listen. When a person who has absolutely no knowledge of an industry, but yet has the authority to inspect work in that industry solely because they are a city inspector, that tells me they think they know everything.

Posted by: lonesome sparrow on February 9 2010 12:39 PM

It seems to me that city hall does not understand the meaning of the term budget. The dictionary defines it - "to subsist on or live within a budget." This does NOT mean to set the spending and the tax accordingly.

I'm sure that if I went to my employer and said that I have set my budget for the coming year and will require a 3.5% raise which could be 4.04% if I decide to take a trip to Maui, that I would be shown the door in short order.

There have been some good suggestion posted, if the current mayor and council do not heed, we should show them the door!

Posted by: Mr. PG on February 9 2010 7:14 PM

DAN - NO MORE TAX INCREASES!