Tax Rate Set

Monday, May 10, 2010 08:02 PM

Prince George, B.C. – Residential tax rate in Prince George has been set. The rate is $7.7103 per one thousand dollars of assessment. Because the rate is applied to assessed values of properties, it means some home owners will see their taxes increase, while others will see a reduction compared to what they paid last year.

Councilor Murry Krause, the Chair of the Finance and Audit Committee, says the goal was to raise enough money to fund the budget of just over $73 million dollars "There probably will be some discussion about the tax rates for major industry, but, that is something that is under review by the Provincial government and we don't know how that will end up." Krause says review of the rates Prince George charged major industry last year indicated the rates were above the Provincial average."This was not an easy task, we were looking for fairness and equity."

City staff say the rate will mean the average (mean) residential property will see their taxes increase by about $72.00 this year.

Prince George City Council approved the increase at its meeting this evening, after reviewing eleven different options that had been examined by the Finance and Audit committee.

The tax burden per property class is changing this year, as the City reduces the burden on major industry toward the provincial average over a ten year period. The utility rate has been set at the maximum amount allowed under BC Regulation 329/96. The business rate has been set to achieve a dollar value increase of 4.98% on a business property that has no assessment increase for 2010. The balance of the burden has been allocated to the light industrial class.

• The average (mean) business property tax would increase by $1,111.00 or 8.61%.

• The average (mean) tax paid would increase in the Downtown by 7.03%, in the Carter light industrial area by 8.38%, in the East end by 9.02%, and in the Central St. area by 11.84%.

• The levy amount for the utility property owners would range between –8.70% less and 11.92% more than the levy paid in 2009.

• The levy amount for the major industrial property owners would range between -25.77% less and -1.60% less than the levy paid in 2009.

For Canfor, it means an overall tax reduction of 5.15%,

FMC’s taxes will fall by 25.77%,

Husky Oil’s will be down by 4.16%,

the leased BCR properties will be reduced by 11.15%,

Lakeland’s taxes fall 3.9% and

Woodland’s will slip by 1.6%

• The levy amount for light industrial property owners would range between -8.71% less and 47.23% more than the levy paid in 2009.

Councilor Debora Muoz says there are very few ways for the City to raise money. She would like to see the City not only watch carefully it's spending, but reduce the debt load "It costs $2.1 million a year to carry the debt, so I would like the City to try to reduce its debt load." Those debt servicing charges do not include the costs of the Terasen Gas deal.

Councilor Dave Wilbur is concerned for business, saying they have already come through a very difficult year but the taxation option recommended is "an equitable solution given the circumstances". Councilor Sherri Green says on first blush she was not a very happy camper when she saw the taxation rate for small business, but having examined the material presented by staff she can see the rates are still below the average in the province. "It may be a bitter pill to swallow, but I understand the necessity so I will be supporting it."

Councilor Cameron Stolz says it is too late to make any cuts to the budget for this year as the budget and tax rate bylaw must be submitted to the Province by mid-May. "There is however, plenty of time to see how we can find savings for next year." Stolz says working with staff , savings of $4.7 million dollars have been found over the past year.

Here are the comparative taxes for specific homes in different residential areas in Prince George

*Location*	*2008 Assess*	*2009* *Assess*	*2010* *Assess*	*2008 Taxes*	*2009* *Taxes*	*2010 Taxes*	*2010 +/-* %
Norwood St.	$122,500	$115,700	$120,400	$804.69	$811.50	$928.32	+14.4%
Heritage Cres.	$321,000	$321,000	$308,000	$2,108.63	$2,251.43	$2,374.77	+ 5.5%
Pine St.	$192,500	$188,200	$187,700	$1,264.52	$1,320.00	$1,447.22	+ 9.6%
Austin Rd	$386,200	$386,200	$354,000	$2,536.92	$2,708.73	$2,729.45	+ 0.8%
Arabian Rd	$153,700	$153,700	$139,500	$1,009.64	$1,078.02	$1,075.59	- 0.2%
Leyden Cres.	$216,600	$211,600	$201,700	$1,422.83	$1,484.12	$1,555.17	+ 4.8%
Vista Ridge	$346,000	$$336,200	$344,000	$2,272.85	$2,358.04	$2,652.34	+12.5%
Carney St	$175,500	$172,900	$152,200	$1,152.85	$1,212.69	$1,173.51	- 3.2%
Ridge-view Dr.	$393,000	$361,000	$271,700	$2,581.59	$2,531.99	$2,094.89	-17.3%
Rosia Rd.	$327,300	$310,000	$287,000	$2,150.01	$2,174.2800	$2,219.80	+ 2.1%

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Posted on Monday, May 10, 2010 08:02 PM in News by 250 News

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Comments

Posted by: consideritsold on May 10 2010 8:17 PM

and we still don"t have a curb side recycling program

Posted by: He spoke on May 10 2010 9:09 PM

So it is acceptable for our city council to increase the taxes by 4.5%, which is almost double the inflation rate and average wage increase. Hmmmmm, and they think they are doing a good job.

Its not right, its just not right.

Posted by: Harbinger on May 10 2010 9:37 PM

$2.1 million dollars a year interest, eh? Maybe the city should look into banking with our local credit union bunch. You know, keep the banking local. I betcha all of city council is of the opinion good ol' PG is "too big to fail". We will see.

Posted by: Resident on May 10 2010 10:08 PM

How does a home on Ridegview Dr. drop from an assessed value of $393,000.00 to $271,700.00 from 2008 to 2010 or basically 2 years? The drop for this home out of sync with other homes listed.
Maybe Dave Wilbur should be a little more concerned with the average citizen of PG. I am sure a lot of people have lost their jobs, and homes. The recession has not just taken its toll on businesses.
It is certainly appears the members of city council just do not understand people are overwhelmed with taxes. It seems there is always money to buy another empty building and lot downtown but no money for road repairs, and general maintenance.
Just wait until Rodgers and his merry band announce the beginning of construction for a new cop shop and performing arts center. A tax 4.48% will seem a bargain once those 2 projects get off the drawing board.

Posted by: MrPG on May 10 2010 10:47 PM

"and we still don"t have a curb side recycling program"

And we don't need one. Considering how the City handles everything else, it would be another cash cow.

Posted by: bohemian on May 10 2010 11:13 PM

He spoke brings up an excellent point.

As far as I can remember, tax increases have been about 2% ABOVE inflation and contractual wage increases for the last number of years.

Compounded, this is significant; it should be looked at. Justification for tax hikes is often "to keep service levels where they are," but the major portion of service costs are wages, and these are pegged at 2% (as far as I remember based on last collective agreement).

Why can't our six-figure salaried managers control costs? Non-labour costs must be exploding, year over year over year...

Posted by: Eagleone on May 11 2010 4:32 AM

I don't even have a curb....

Posted by: interceptor on May 11 2010 9:45 AM

Actually we do have private curbside recycling available for under $10 per month. Call them up and subscribe if you are that concerned - if the city does it you can bet it will cost you alot more than $10 per month.

Posted by: MrPG on May 11 2010 11:29 AM

Bang on interceptor. I drop my recyclables off at the transfer station on my own dime. I don't need to pay someone for the convenience of having it taken from the curb, but if you want that, there are companies in town that will do it.

Posted by: maddog on May 11 2010 12:29 PM

When will PG become a 21 century city and actually begin collecting all recyclables including glass and plastics. This BS about a private company collecting it is a hollow argument.

I came from a town of 12,000 and we had curbside recycling and they actually collected all recyclables unlike PG.

To council get with the times and begin curbside recycling of all recyclables like most other areas.

Posted by: MrPG on May 11 2010 12:50 PM

If you want curbside recycling, do it on your own. Don't put it in the City's hands. It will become just another thing people complain about as the price to collect the materials go up year after year.

Speaking of which, what happens with recyclable plastics? Is any of it economically viable or does it end up in the landfill?

Posted by: interceptor on May 11 2010 1:17 PM

In talking with one of the local companies there is no money in the plastics. What they do is bundle it and ship to Calgary where there is a plant to seperate and recycle it. The plant takes it for free but they have to pay the shipping to Calgary. Supposedly one of the other companies was just taking it to the landfill to avoid the shipping charges, but that kind of defeats the purpose...

Posted by: NMG on May 11 2010 6:06 PM

"When will PG become a 21 century city"

That will occur when 30-40% of our population (a critical mass if you will) is comprised of people with a 21st century view and not a 20th century mentality.

Coincidentally, I think we've made pretty good progress in getting there with the advent of UNBC and the continued diversification of our local economy. I think we're on the right path. We also need the "21st century people" to keep leading and driving change and to not be scared off or intimidated by the "20th century people" who contributed to PG for so many years.

We can continue to evolve and change our city for the better and still be proud of our heritage. We don't need to cling onto one at the expense of the other.

Posted by: gus on May 12 2010 12:51 AM

Nicely put NMG!!!