FOR IMMEDIATE RELEASE
Prince George, BC – On Monday December 5, Council’s Standing Committee on Finance and Audit will receive and review three significant reports to begin the 2023 budget process. The operating budget guidelines report indicates increased costs driven by inflation over the last two years that substantially impact the cost of municipal services, including critical ones like snow removal. Maintaining current service levels in all areas could result in a tax increase of 7.22 per cent, which is approximately $166 per average residential property. Council will receive more detailed projections and deliberate budget options over two meetings on January 30 and February 1 and will consider all options, including tax deferral scenarios and using the Safe Restart Grant to address revenue shortfalls.
Council will also receive a report on budget community engagement results, including five satisfaction surveys and a citizen budget survey. The results indicate a desire to maintain or slightly increase some municipal services. The third report that informs the 2023 budget is the draft capital plan that includes funding sources and projects for 2023.
The operating budget guidelines report outlines the effects rising prices have on the City’s ability to access critical materials – like asphalt for road construction – to maintain current service levels. In addition to providing a broad overview of municipal financial trends from previous years, Administration is seeking direction from the Committee on developing budget guidelines for 2023.
After a zero per cent tax increase in 2021 implemented as a COVID-19 economic relief measure, the City increased its 2022 levy by three per cent. The total 2021-2022 levies from nine commonly-compared B.C. municipalities averaged out to 8.2 per cent over two years. In contrast, Prince George’s average levy remained at three per cent over the same two-year period. According to the report, this places the city at risk of compromising its long-term ability to sustain the service levels required for a community of Prince George’s size.
Highly-ranked services (according to Citizen Budget feedback from residents) like snow removal and roads and sidewalk maintenance and rehabilitation are significant tax levy considerations and are directly impacted by funding levels.
For example, the increase in the City’s sidewalk rehabilitation budget from $700,000 in 2021 to $1.25 million in 2022 was enough to complete roughly two per cent of Prince George’s road path pedestrian network. Meanwhile, around 44 per cent of the road path network is in fair to poor condition.
Included in the high-level information presented to the Standing Committee on Finance and Audit is Administration’s projected expenses plus revenue adjustments for 2023 to 2025. The figures represent a full return to normal budget (the Canfor Leisure Pool being the last of the COVID-19 recreation services to be added back in) that will help the Committee make informed decisions when directing Administration on its operating budget guidelines for 2023.
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Media contact
Mike Lee, senior communications advisor
City of Prince George
Mobile: 778-349-1386
Email: media@princegeorge.ca