IPG Budget Sparks Some Council Debate

Thursday, February 10, 2011 04:10 AM

Prince George, B.C. - Initiatives Prince George representatives appeared before Prince George City Council last night to present the agency's 2011 budget...and while the agency was not seeking an increase in its annual allotment from the city, its budget sparked debate, nonetheless...

IPG is the city-owned agency tasked with enhancing economic opportunities for Prince George. And, as such, it receives city funds through a service agreement. The 2011 investment remains the same as the past two years - $1.024-million dollars.

Councillor Cameron Stolz questioned IPG's role in promoting not only the city, but the northern region, as well. He said he recognizes that what's 'good for the north, is good for Prince George', but said with as many as 20 other regional organizations out there promoting the north, "My challenge is: should we be the ones spending that money to fund it at a time when we've had two consecutive years of significant fiscal challenges and we're heading into a third one now."

"When I'm looking at the budget, I also note that IPG currently has $800-thousand dollars available in their reserve fund that they've currently been able to squirrel away, all told," said Stolz. And he pointed out the agency has seen a $90-thousand dollar reduction in its expenses - through the Terasen Gas deal, IPG has been able to pay out its mortgage. "I'm just wondering why the cost savings wasn't passed on to the shareholder, and the City of Prince George is the shareholder."

Councillor Stolz wanted to defer IPG's budget to the city's final budget meeting on February 28th, to give councillors time to examine whether there could be some cost-savings to the city within it.

A visibly angry Councillor Don Bassermann said he was flabbergasted by Stolz's rhetorical question about whether it was Initiatives Prince George or Initiatives Northern BC. "I'm embarassed by that," said Bassermann. "This community has identified some of its distinguished and key leaders to be on the board, and on Progress Prince George, to guide and to advice." In addition to that, the councillor pointed to a community survey done prior to budget preparations, which found respondents were in favour of raising the amount of money the city spends on economic investment from 1.68 to 2-percent of our budget.

"I appreciate that there's a $90-thousand dollar difference because of some rent savings, or some mortgage savings," said Bassermann. "But they did not come back to us and ask for the two-and-a-half percent that we're dealing with across the board." He says he likens IPG to a train, fully loaded and sent out to do good work. "I'm not prepared to ask the train to shed any of its load at this time, I'm not asking the train to slow down either at this time, we are at a time of economic resurgence and recovery."

In response, Councillor Stolz said he wasn't questioning the good work IPG does, he just felt it was a valid discussion point. His motion to defer IPG's budget failed, due to lack of a seconder.

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Posted on Thursday, February 10, 2011 04:10 AM in News by 250 News

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Comments

Posted by: Eagleone on February 10 2011 4:26 AM

Bassermann has no respect for the home owners tax dollars IMO. I don't think he ever has. Comparing the IPG budget to the operating cost increases of the city is a lame excuse for fiscal responsibility.

Stolz was correct in questions the mandate of the IPG office to be working on regional issues on the city tax payers dollar. I would go further than that and question why we even have it at all. Why not just get the big spenders like Bassermann under control and have a lean city with competitive infrastructure and low property taxes. I think the train would get a lot further down the road with a lighter load and more passengers paying their fare.

Posted by: Eagleone on February 10 2011 4:32 AM

If we are at a time of economic resurgence and recovery... then I ask what are the major private sector drivers of this recovery in PG that will replace Clear Lake, Rustads, Winton Global, and NCP? Is it the housing sector maybe he has a crystal ball for? More gambling maybe? All I see is a resurgence and recovery of big government spending is all.

The facts are IPG wastes huge amounts of city dollars... Horizon Air being a prime example of that. They are a political organ for propaganda to direct government funding for the rich and connected paid for by the city home owners.

Posted by: gus on February 10 2011 7:20 AM

From the IPG web site, under Progress PG 2009 are written the words:

"Progress Prince George, established in January 2003, benchmarks Prince George’s performance in economic, social and environmental performance indicators and provides strategic advice on the ways to improve the performance of Prince George AND THE SURROUNDING REGION."

Without the surrounding region, Prince George would not exist. The argument is that the North provides "riches" for the South. Well, it also provides "riches" for PG.

Remove or reduce the service industries which benefit from business that is brought in from those communities to service them, and we would lose how many jobs? For those businesses that could not survive with a lower volume, how much business would go to service providers in larger communities to the south.

Let us say 10%. Take a conservative 5%, remove the population that conducts that business from PG and the property taxes which go to pay for the portion of business conducted by IPG to support outside communities, and any reasonable person should agree that you have just shot yourself in the foot.

Okay, that's my argument for the role this City needs to play in city and regional development. Whether it could improve in doing that job is a totally different matter. However, one does not use budget time to address that. As I see it, that is the role of the Board and probably Progress PG as well. If the City wants to take over direct control of IPG, then get rid of the Board and have the manager report to the City. Again, there are other times to raise that issue, not at budget time.

Posted by: He spoke on February 10 2011 7:42 AM

I think IPG does their job well, and it is a well oiled machine which operates efficiently.

This time, I think Cameron Stolz is out of line in his commentary. Sure, IPG has set asside some resources, IPG may be a part of the city, but it was the prudent action of the board of director and Tim, Gerry that squirreled away the money. They had a long term plan and stuck to it.

I hate to admit it in the public arena, But yes, the ole f@rt, Don Basserman was correct to stand up and reinform council.
Didn't we use to be the main funder for Initiative programs for the north, that got disbanded to deal with just Prince George.

I believe that what is good for the north is good for Prince George. So if the Peace, Bulkley Valley and Skeena wants to throw in $150 k a piece, sure we can also focus for the north.

Posted by: He spoke on February 10 2011 7:47 AM

Of course Fraser Fort George needs to throw in extra monies as well.

Posted by: nu2PG on February 10 2011 9:04 AM

Here is the link to the City's webcast of the Budget meeting. Item 6B Is the presentation by IPG and the action is about a 27min. into the 41min.video clip. click on the little arrow by 6B to view.

http://princegeorgebc.swagit.com/player.php?refid=02092011-130

If the link doesn't work you can go here and click on the budget tab then click Video to open window for the meeting.

Posted by: nu2PG on February 10 2011 9:05 AM

oops forgot second link

http://city2.princegeorge.ca/CityHall/MayorCouncil/pages/webcast.aspx

Posted by: Denaljo on February 10 2011 10:13 AM

What recovery? BC lost over 9000 jobs last month!

Posted by: gus on February 10 2011 10:31 AM

It's the HST ..... if it had not been for the HST there would have been 15,000 job losses ..... LOL ...

You know, someone should actually take a bunch of the big business people who support the HST to task and force them to drop prices and hire people or not lay off anyone.

No one takes the BSers to task, do they? We need to devise methods of doing that. The time has come to fight back against such utter stupidity.

Posted by: Retired 02 on February 10 2011 12:14 PM

"When I'm looking at the budget, I also note that IPG currently has $800-thousand dollars available in their reserve fund that they've currently been able to squirrel away,

An 800 thousand dollar slush fund thats a nice nest egg of taxpayer dollars and it needs to be questioned.

Basserman is a jeck of the first water. Hes a hang over from the great Kinley eara and its time he hung up his spurs.
Cheers

Posted by: jakeadoo on February 10 2011 12:19 PM

Can anyone tell me what projects,other than those funded with taxpayers(government money),that IPG has brought to the north or Prince George?I am not saying they have not brought in business,I truly don't know what they have actually accomplished.If the only thing they have done is advocated for government funds,we are really wasting alot of taxpayers money for useless duplication of what others,such as MLA's,should be doing.

Posted by: PrinceGeorge on February 10 2011 5:08 PM

"This time, I think Cameron Stolz is out of line in his commentary."

He was in my opinion way out of line when recently commenting on a poison in our otherwise pristine drinking water: the intentionally added industrial waste fluoride.

In Calgary the citizens will now have a choice as their mass medication is about to be discontinued.

Posted by: Palopu on February 10 2011 7:33 PM

IPG mines other sites for information and then publishes the statistics on their site.

They put on seminars on how to export or import from the Prince George area, even though industry has been doing this for the last 70 years, and you can get any information you need on importing or exporting from any Customs Broker, or off the web.

They travel around the world with other Politicians and pretend that they actually have some say in what goes on in Prince George.

In actual fact, neither IPG or the City have a clue as to how the various business's in Prince George and surrounding areas ie; Pulp Mills, Paper Mill, Lumber Companies, Ingot Producers, Container Terminals, Railways, Trucking Companies,Warehouses, Molebdenum, Coal, etc; gets shipped out of the Country. These firms have been exporting since the late 1940's onward. Long before any of these dudes were even born. So to suggest that they have some imput into what is happening in Industry in ludicrous.

They might give some information to some smaller business's, but somehow I doubt it.

Dont people realize that business, especially large Corporations do not have anything to do with IPG or City Hall, other that what they must do through legislation. They hire people for expertise.

You might as well say that IPG could help all these busines's with their taxes. Of course they cant, thats what accountants are for.

Other than a few broken down call centres coming and going I have not seen anything positive in this town that could be attributed to IPG.

In my opinion, any business that has to rely on IPG to be a success, is doomed to failure.

These people sit in their ivory tower on 1st Avenue, Monday thru Friday, and go through the process of pretending to work, and pretending that their work is important. Unfortunately it isnt, and they should be shut down.

If they were dependent of money from business's to keep them going, they would have been shut down years ago.

Posted by: dirtcheap on February 10 2011 10:25 PM

I guess the same people that believe IPG is very important to the city of P.G. are the same ones that believe financial advisors are needed, to teach you how to spend your own money. Dumb and Dumber!

Posted by: Palopu on February 11 2011 10:53 AM

You got that right dirtcheap. I know of one person who told a financial adviser that he could invest his money, but first he wanted to see his latest income tax return, so he could see how much money the **advisor** earned himself. Needless to say he never saw it.