Hold onto your wallets Podunkians

The city is looking to generate some revenue for their strapped coffers and if there isn’t too much of a backlash it would seem that Prince Rupert residents will be in line for yet another tax increase.

Not inclined it seems to cut services or sell off such assets as CityWest, the city in need of a bit of a financial cushion to "maintain a healthy range of amenities" is once again looking towards the city’s taxpaying population.

City council examined options to increase taxation by between 3.5 and 5 per cent, but mindful that perhaps the tax burden is getting a little too onerous on the heavily taxed Rupert taxpayer, they will test the waters first next week.

Interestingly enough the city just last week announced a labour settlement with CUPE, providing for pay increases of 18.25 per cent over five years, an unusual financial move for a city apparently still struggling with its finances.

City residents can investigate things further at the public meeting on Monday April 21, council will then begin the decision process to determine how much if any of an increased tax burden that Rupertites can bear in a still sluggish local economy.

The budget documentation can be found on the city website, while we have found a few past thoughts on our elected official’s and taxation from the Podunkian archives...

April 25, 2007-- A favourite ATM

April 27, 2007-- When the sheep begin to grumble

September 22, 2007-- Accounting error not in your favour, do not pass go

November 30, 2007-- Onward, upward and into your pocket again!

December 13, 2007-- 45 minutes of talk, but still the rates will go up

December 20, 2007-- It’s not the Boston Tea Party, but some things have to start someplace

January 9, 2000-- Clip and keep handy for election time!
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The issue was given a review on the front page of the Thursday Daily News.


COUNCIL MULLING TAX HIKE TO SUPPORT CRUCIAL SERVICES

Councillors say tax hike may be needed to maintain healthy range of amenities

By Leanne Ritchie
The Daily News
Wednesday, April 16, 2008
Pages one and two

City council is examining the option of increasing the amount of revenue it seeks from its taxpayers this year in the range of 3.5 to five per cent. However, councillors want to hear opinions from the public before they firm up their decision.

According to Dan Rodin, the city's Chief Financial Officer, a five per cent increase would generate $500,000 for the city's coffers and work out to be an increase of $66 per year for a house valued $147,000 in the 2007 assessment year.

Prince Rupert Mayor Herb Pond described this year's budget as "holding the line" while the city waits for the growth in development that will increase the tax base and in turn help provide more funding for the city coffers.

He noted the city underwent a serious budget review in 2004, cutting everywhere it could, even going so far as to close down city operations one day a month. He did not feel there was anyone in the community left who wanted to take out the axe when it came to services.

Coun. Tony Briglio and Sheila Gordon-Payne agreed there is a fine line that needs to be balanced between retaining those services that will attract people to the community while remaining fiscally prudent.

"We are building a community ... that's what is going to take us back towards where we need to be," said Briglio.

In 2008, the city needs to generate an additional $300,000 in order to cover the raise it gave to CUPE Local 105 employees. In addition, RCMP costs are rising this year by $700,000. This includes the cost of hiring and outfitting one new RCMP officer, about $120,000.

In addition, there were cost savings attained by the RCMP in 2006 from using new recruits that were still on the training payroll. These cost savings resulted in a rebate for the city in 2007. However, that will not be repeated in 2008. And finally, the city, which covers 70 per cent of its policing costs, needs to cover the federally mandated increase to the RCMP pension plan.

This budget also does little to address the $8.9 million the city owes itself after borrowing from its reserves.

This money was spent from city coffers and reserves during the years the city believed it would ultimately receive tax payments from New Skeena Forest Products. Nor does it do much to address the $9 million the city owes other financial institutions.

Rodin also noted inflation is driving the price of services upwards, with the inflation of energy costs expected at 10 per cent, general inflation two per cent and non-residential construction at 14 per cent. With a hold-the-line budget, this means staff will be asked to do more with less because their dollars will not stretch as far.

And finally, this year's budget does very little to address the $70 million infrastructure deficit facing the city as the roads, sewers and facilities in town continue to age - and in some cases, fail.
The city is planning to spend about $1.8 million on capital projects in 2008, including $600,000 on the Hays Creek Bridge and sewer design and $300,000 on the landfill expansion.

"If we cobbled together another $1 million it would only be a finger in the dike," said Pond. "A municipality our size should probably be spending $3 million a year on maintenance alone."

It is the city's aging infrastructure that made both Coun. Joy Thorkelson and Ken Cote nervous.
When the Fulton Street water line broke last year, it cost the city half a million in repairs.
Thorkelson proposed the city look at ways to raise more money by borrowing, in order to start dealing with its aging roads and sewers.

"We keep asking everyone to do more, with less money to do it with," she said. "My biggest worry is not that we are spending too much but that we are not spending enough."
Meanwhile, Cote suggested the city needs to start looking at serious cuts, if not this year, then next.

"We can't have another hold-the-line budget. If we lose any other sources of revenue, we will have to make these big changes," he said.

The city agreed it will hold a public meeting on the budget prepared by staff on Mon., April 21, at 7 p.m. in city council chambers. Then, on April 28, it will review additional options presented by staff for either a 3.5 per cent, 4.5 per cent or five per cent increase and decide which rate increase to pursue. Councillors expect to have the budget adopted and in place by the May 15 provincial deadline.

For those interested, the budget documents are available on the city's web site and at city hall.