Status Quo Operating Budget For 2011

By 250 News

Pie chart shows where city spent its operating budget last year

Prince George - While City staff were directed to prepare a general operating budget for the coming year that maintained 2010 services levels, Council also directed them not to exceed a 2.5-percent increase in the general tax levy...

They did it, but it was not without challenges.  The proposed general operating budget for 2011 is $102.9-million dollars ($40-million of which is collected for other levels of government and taxing authorities).  The city pays for the majority of its services from this fund, services like: police and fire protection, bylaw enforcement, city management, development planning, transportation, and leisure programs and services.

In her presentation to councillors at yesterday's first budget meeting, Manager of Financial Services, Sandy Stribany, said there were a number of financial hurdles to maintaining a status quo budget -- the biggest was a $5.4-million dollar increase in general operating expenses due to contracts, collective agreements, debt repayment and internal funding repayments.  Others included: a $142-thousand dollar decrease in investment earnings, a $107-thousand dollar Hydro increase, and pension and benefit increases of $275-thousand dollars (although this was partially offset by a WorkSafe premium rebate of $60K).

To claw back to the 2.5 ceiling, staff have recommended:

• cutting $1.72-million dollars from expenditures, including funding the RCMP contract at 121 staff rather than 128 (that's the authorized member strength in the contract, but 121 is consistent with 2010 levels), reductions for fire services recruitment and training costs, energy savings, consulting service cost reductions, saff vacancies, reorganizations and staff reductions
• foregoing an internal debt repayment of $300-thousand dollars
• increasing general operating revenues by $1.68-million dollars by raising a number of city fees and charges, transit fares, and traffic fines
• new construction revenue is expected to bring in an additional $100-thousand dollars
• grants-in-lieu of taxes are expected to increase $300-thousand dollars

Councillors have further budget meetings set for February 16th, 23rd, and 28th, where it's expected they'll vote on the 2011 budget.  The final budget bylaw must be passed by May 15th.

Email | Print | Facebook | Twitter | Digg | Del.icio.us