By Cheryl Jahn

Finance and Audit settle on two percent

Dec 7, 2020 | 2:08 PM

PRINCE GEORGE – Council’s Finance and Audit Committee met today and launched the formal budget process for the City.

It began with a report on citizen engagement for the budget, which saw significantly higher numbers than in previous years. Some of the highlights include 49% of residents wanting to see a decrease in the policing budget, 38% wanting a decrease to the fire services budget. Not surprisingly, 51% and 53% of respondents would like to see increases to the road rehab and snow clearing, respectively. A whopping 87% wanted to see the corporate services budget decreased.

Finance Director, Kris Dalio then went into the Cole’s Notes version of the City’s expenses and revenues. In a nutshell, COVID has cost the City hard but not to the extent it could have. On the expense side, staffing cuts and reductions will result in total savings of $1.9 million and the cost of providing RCMP services will increase by $480,000. Where the City saved some money was in closing facilities, which realized about a million less in Hydro and gas bills.

Looking forward, Administration laid out some increases to the areas of tax levy. It was suggested the infrastructure reinvestment funding be increased by $125,000 for the coming year. That’s the fund used to maintain above-ground Civic facilities. That increase would push that fund to $2,675,000. Administration is also suggesting Council boost the snow removal budget to $10 million from $8.5 million, citing budget overruns of $1.5 million in each of the past four years. Finally, Administration is suggesting the road rehabilitation fund be boosted by $150,000 to accommodate some restructuring of the budget.

With those increases and to maintain the status quo in services, the tax levy for 2021 would be 3.16%.

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However, there was much discussion around what Committee Chair Garth Frizzell referred to as “happy circumstance” in the form of $6.11 million from the provincial Restart Fund. Should Council opt to settle on 3.16%, that fund could be spent on other things, though are some restrictions. A two percent tax hike would see the City spend $1.3 million of that fund. A one percent tax hike would see the City use $2.4 million of that fund. With a zero percent tax hike would see the City spend $3.5 million and $2.5 million would remain of that fund. There was much concern expressed around the Committee, though, that the financial implications of COVID will be felt well beyond 2021 and that spending all of that money in one year woUld be pushing the problem to another year.

In the end, the Committee passed a motion to bring a recommendation of a two percent tax hike to Council when the budget discussions get underway next year.