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| The City's Chief Financial Officer Corinne Bomben delivered the City's Financial plan for 2019 on Monday night |
Growing confidence that the city has turned a corner was the over riding theme to the Monday night budget presentation for City Council on Monday night, as Corinne Bomben the City's CFO offered up a mix of a tax cut and an increase in spending on services to go along with the announcement of a Budget Surplus for 2019.
Her Presentation provided a review of the Service and Revenue Challenges, Budget requirements, Recommendations for Council, Impact to Property Tax Payers and a review of the Public consultation process ahead.
On the Service and Revenue Challenges, Ms. Bomben made note of such areas as the Digby Island ferry and the required 1 million dollar subsidy required from the city taxpayer to operate it, with Ms. Bomben once again noting that neighbouring communities benefit from the airport but pay only a user fee.
She also reviewed the impact of some of the Provincial Incentive programs which provide for some reduced revenues on local operations from a number of properties. She did acknowledge that some new industries recently in place have not fallen into those provisions and have delivered some revenue to the city.
The impact of that is a taxation burden that falls to the residents and businesses of the community to make up for. The CFO stressed that the current situation is as a result the tax cap that the province has legislated and how the City Council continues to advocate for a change to the regimen from the Province.
When it comes to the spending plan for the year ahead the big projects include: Phase Two of the water project, completion of the expansion of the west berm at the landfill, heating and system replacement at the recreation complex, completion of the scheduled airport ferry refit, replacement of the large garbage truck and additional paving around the community.
While they have no plans for a significant expansion of services this year, when it comes to Budget requirements cost increases will be found in a number or areas: including contractual wage increases, an RCMP contract increase, the recommendations if adopted from the Blue Ribbon Committee on Council Salary recommendations as well as increased payments to Port Edward through the Ridley Island Tax Agreement, total she noted was now at one and quarter million dollars.
Those costs however have been offset by new tax revenue form expansions and new builds which fall under a municipal controlled tax rate, a financial injection which means there are no plans for a tax increase this year and in fact will deliver both a budget surplus and a tax reduction of of two percent for tax payers.
As well with a Budget Surplus in hand, the City will be putting half of the surplus towards future debt repayment for a new RCMP detachment, as well as to make for a return for 2 RCMP officers to the force as well as an additional staff officer for the Bylaw department.
The City's Chief Financial Officer then provided her annual tutorial no how the city's tax rate is delivered as part of the assessed value of homes as provided by BC assessments, with the mill rate adjusted according to need in the community, as well as to highlight how the city collects taxes for other agencies and where to find those elements on the tax bill.
Her notes included how a homeowner with the same average assessment as last year, could be looking at a 28 dollar tax saving from last year's taxation rate, as well as to some of the home owner grant and tax deferral programs that are available to residents.
Ms Bomben also reviewed the process of the upcoming community consultation period of the budget, with March 11th and 25th Council sessions available to the public to make comments or raise concerns.
Council's observations focused on the tax cut, with Councillor Niesh calling it the best budget that he has seen since taking office, as well as to make note of the the consultation period where the public can express where Council should direct its attention.
He also made note of some of the commentary that Council may hear of from the public and how Council still has a lot of work to do and this budget is just one of a shift to bring the city in line with the rest of the province.
Mr. Niesh called attention to the ability of the city to generate revenue, noting how investments in staff allowed for the city to begin the process of a recovery, using Watson Island as a symbol of that progress.
Councillor Mirau also hailed the ability to provide for more services while assessing less taxes, noting how this was the first time that the words tax reduction and increase in services had been used in the same sentence.
Councillor Adey noted how he couldn't claim any credit for this years financial plan, but was thankful to be on council as it was delivered. He did note that there was a need to strike a balance between what they have to do and some of the initiatives that effect the livability in the community.
Councillor Cunningham observed as to how he has been on council for five years and this was the first time he has seen a decrease in taxation, he also was pleased to see the additional body for the bylaw office. He did offer up some cautionary notes that he hoped that the outside jurisdictions that the city collects taxes on behalf of don't take advantage of the city's approach.
He also observed how the process the city uses of working behind the scenes over the last four years has paid off, and that while people think they are hiding something, this is how it all comes together and how those closed meetings were really about getting to the point of where the city is at now.
Mr. Cunningham also hailed the way the city has approached Watson Island and how it is beginning to deliver results for the community.
Councillor Skelton-Reid spoke to how one of the reasons that he ran for council was to reduce the burden on residents and small business and how he believes the next four years will be even brighter ones for the community.
Councillor Randhawa also noted how the last four years have contributed to the tax decrease and how council needs to continue their work ahead.
Mayor Brain also offered his thanks to staff for their work on the budget, noting how its hard for the public to fully appreciate how hard staff works, and how the city is in a special time in its history with a really motivated, team oriented staff that are happy and excited about their jobs, showing up each day motivated and invested in Prince Rupert now.
He noted how many of them are from Prince Rupert and have returned to the community with plans to stay and how they will be the city's next thirty year plus employees. He observed how it's the work of council to ensure that the city is a place where they enjoy working and that the results are showing as to what happens when the staff is motivated.
Mr. Brain paid tribute to the work of the city's management team and that the message is that this is they year where the city turns the corner and how it's time to change the narrative of Prince Rupert and how we perceive ourselves in the community and to bring the pride back.
He observed how while it is only a two percent tax increase it has been decades since a City Council has been able to deliver one and that is no small thing to be considered.
The Mayor reinforced the upcoming consultation period in March and how the budget will be made available for further review on line and at the library.
The Consultation period for the public will take place at the two City Council sessions in March, where members of the public will be able to offer up their thoughts on both Ms. Bomben's financial plan, as well as the findings of the Mayor's Select Standing Committee on Council salaries.
Those two Regular Council sessions are scheduled for March 11 and March 25.
Council will then make their final determinations on the 2019 Budget sometime in April or May.
You can review Ms. Bomben's presentation to Council from the City's Video Archive, starting at the 53 minute mark.
As we go through the Budget process over the next three months, you can find the latest notes on the Budget planning on our Budget Archive page here.
More notes related to Monday's Council session can be found on our Council Timeline and Council Archive page.
While a wider overview of Council Discussion themes can be found on our Council Discussion page here.
Cross posted from the North Coast Review.
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