Our Taxes: Comments from 1 of 9
Tuesday, March 02, 2010 03:45 AM
-by Prince George City Councilor, Cameron Stolz
As members of this community, I am certain that your City Council appreciates and understand the challenging times that face our City. We are committed to working through these economic times and will continue to move forward in the community’s best interest.
From March until October, City Council through Finance and Audit identified cost savings/new revenue of $2.5 million. During the pre-budget work over winter, further cost savings/new revenue of $2.27 million was identified resulting in a total of $4.77 million (the equivalent of an additional 6.83% tax increase).
Throughout 2010, we will continue to face challenges as our city moves toward financial sustainability. With the 2010 budget the initial challenges faced are ones of contractual increases and revenue decreases.
Cost Increases
RCMP –Contract and 2 new members 914,031
Firefighters – Contract 1,374,156
Salaries and Benefits – Contract 1,075,697
Hydro – rate increase 149,230
Total increased Costs $3,513,114
Revenue Decreases
Interest earned from investments -242,850
Traffic Fine revenue sharing - 80,000
Casino revenue sharing -300,000
On street parking -240,000
Subdivision + permit fees -178,000
Arenas revenue -120,000
911 Regional District contract - 40,000
Total decreased Revenue - $1,200,850
Making fiscal change is not as simple as demolishing an eye sore in the downtown. For example, Finance and Audit last year initiated a review of how the Mobile Equipment is replaced. Nine months later (an extensive review was required) council unanimously endorsed a policy change that will save the city between $480,000 and $750,000 each year. We look forward to the full impact of those savings in three years when the last of the current operating leases expire.
Snow Budget – This year, Council chose not to increase the snow removal by $250,000 despite an accumulated $2.1 million shortfall over the past two years. Instead, Council unanimously endorsed doing a review, with public consultation, of our Snow and Ice Control policy on local roads. Staff estimated that, for example, $500,000 and $1,000,000 could be saved if residential roads were plowed after four inches of snow instead of two inches of snow. That change could result in roads being cleared in 4 to 8 days instead of 2 to 4 days.
Rebuilding Roads – The Road Rehabilitation levy in 2008 was $2.35 million. In 2009 Council unanimously raised it to $2.73 million. For 2010, in a 5-4 vote, Council raised it to $2.94 million. We know that $4.83 million is required each year to maintain the road network. This year’s fiscal shortfall means that the city can complete 25 lane km’s of road reconstruction. To keep up with our basic road reconstruction requirements, we need to complete 35.6 lane km’s each year. Including the 2010 budget allocation, the city’s total road reconstruction will be approximately 88 lane km’s behind where it should be.
Sound System in Council Chambers – Installed in 1999. This includes both the audio and video equipment as well as all of the broadcast equipment. The new equipment may cost between $165,000 and $354,000, once details are known later this year. The scope being considered includes:
- Broadcast quality dramatically improved and in compliance with Digital Broadcast standards
- Live broadcast of meetings over the internet
o Allowing more of the community to follow Council meetings
- For the first time, Budget meetings would be broadcast (over the internet)
- Previous Council meetings would be available on the city website
o Improved archiving and accessibility
- Dramatic improvement to sound quality
- Improved video quality – especially helpful for presentations
- Ability to do video conferencing
I am confident that City Council and the Finance and Audit Committee will continue to provide services people and business want, in financially sustainable ways.
Cameron Stolz
Councillor
Member, Finance and Audit Committee
City of Prince George
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