4% Tax Levy Approved

By 250 News

In a 5-4 split, Prince George City Council has approved a 4% "road rehabilitation reserve".

That means  the "average" residential tax bill will see an extra $50 dollars.

Those in favour of the  4% levy were: Mayor Kinsley, Councillors Bassermann, Zurowski, Gratton and Krause

Those against:  Councillors Skakun, Munoz, Sethen and Scott.

Here's how the debate shaped up:

Councillor Don Zurowski is the Chair of the Finance and Audit  Committee which produced the report calling for the road rehab reserve.  He says the quality of life surveys indicated 55% of the residents surveyed said road rehabilitation is  important to them and this is a pay today issue, orpay more later  "If we adopt this now it will cost the taxpayer $2.35 million dollars, but if we continue to finance the repairs over 15 years it will end up costing the taxpayers $3.76 million dollars."

Zurowski says he knows it is painful, but thinks it is the right thing to do.

Councillor Sherry Sethen believes the full  4% is "Too much of a tax shock for the people at this time" She wanted to know if the City has considered what impact pulling the $2.35 million from taxpayers would have on the  City's economy.  

Councillor Brian Skakun says he thinks there are other options other than taxation.  He says 14.2 cents a litre goes to the Federal goverment,  those funds should be used to increase transit and other options, he noted gaming revenue as a possibility.  "We have to look as a municipality  as to where we can reduce costs to come up with the funding to pay for the road rehabilitation costs."  Skakun says there was also an issue with the perception "Most people thought this  was a one time deal, but it isn't, it is 4% every year and when people I spoke to realized that, their opinion changed"

Councillor Glenn Scott says the concept is correct, "However this is not the right time to bring it forward. "He says people tell him they know the roads need to be worked on, and ask continually "Why the City keeps going back to hammer the taxpayers."  Scott says there must be some other way "Why can't we cut costs in other areas and move those savings into road rehabilitation?"

Councillor Murry Krause says while  people say it isn't fair to the homeowner, it is the homeowner will end up paying anyway, either through this levy, or through  interest on the dollars already borrowed to  repair roads.  But he is NOT going to support  a full 4% this year,  just too much of a burden on some taxpayers says Krause.

Councillor Don Bassermann  "This community is anticipating economic restructuring, we don't know if we are going to have as strong an economic future as we have today, I would argue the timing couldn't be better for dealing with this issue.  I'm looking at it as helping pay for the cost now, instead of passing on the  burden to my kids and grandkids."  He says he wants to see the City conitnue to  lobby to get a share of the  gas tax dollars, "But in the interim, lets not burden future citizens of this community with that debt."

Councillor Shirley Gratton  said  this reserve with the snow reserve and said that was a wise thing to do. She  said was torn  between the option of 4% and option c) which calls for 2% now and 2% next year. In the end she voted for the full 4%.

Councillor Deborah Munoz  says this is one of the toughest things she has had to deal with since being elected.  She says  roads are a jurisdictional  responsibility of local government  and the proposal lacks a broader social  and economic consideration.  A 4% increase could negatively impact development and growth says Munoz.

Mayor Colin Kinsley "I don't think the timing could be better than right now, because of a booming economy that trancends Prince George, and an opportunity in the future, if we keep up the pressure, to continue the lobbying to get some of the gas tax dollars."   The Mayor  supports the full 4% levy, "I think the prudent thing to do is to go ahead and do it now, and that would save $117 thousand dollars in interest payments, and that  could go along way to  pay for the enhanced pot hole patching request ."  The Mayor finished his comments urging his Council colleagues to support the concept of pay as you go "What is right is not always popular, but on the other hand, what is popular is not always right."

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