Taxes To Rise With Or Without Road Levy
Property taxes will rise in 2007, with or without the proposed four-percent road rehabilitation levy.
Last week, City staff held three open houses at the Civic Centre to outline the road tax proposal. (for previous story, click here) Prince George residents have until February 9th to submit their thoughts on the idea and preliminary results will be presented at City Council’s budget meeting on February 14th.
But the City’s first budget meeting goes this Wednesday evening and an increase in the general levy is already in the works.
The City’s Director of Corporate Services, Kathleen Soltis, says, "We’re anticipating that, so far, (we’ll) be looking at a tax levy increase that is about the rate of inflation...so we’re looking at about 2.4-percent right now and the road rehabilitation levy would be in addition to that." That means taxes could potentially rise 6.4-percent, if the road rehab tax were to be approved, as is.
One of the reasons the city is considering the road levy is that it would save $1.8-million dollars annually in interest, as road works are presently financed over a 15-year term. Soltis says adopting a "pay-as-you" approach to road reconstruction would have a significant impact on debt financing over time.
Soltis says right now, about $6-million dollars from the general tax levy goes to annual debt payments - principal and interest - on the city’s 100-million dollar debt.
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