Ken Veldman's Port Revenue tutorial highlights funds from a range of Port operations directed to City of Prince Rupert

The Atlin Terminal home for the Port of Prince Rupert
Last Wednesday's Annual Public Meeting offered up some notes
on revenues directed to the City of Prince Rupert

Later this month Prince Rupert City Council will hear a presentation from the City's Chief Financial Officer Corinne Bomben, who will relay the talking points for the City from 2019 as part of the release of the Annual Report.

That document delivered each spring. provides a glimpse at a range of themes that the city likes to present each Spring and will at some point, make mention of the revenues and expenses that make for the day to day operations for the City.

In past years, the at times controversial issue of revenues from the Port of Prince Rupert have made for some comment from civic officials who have noted many of their frustrations over how they see the return to the City from the Port on financial issues.

Of particular concern for the City had been what they perceived as a low amount from the Payment in lieu of Taxes process.

Some success on that discussion was found back in 2016 with an announcement at the time of that years Annual Public meeting hailing the collaboration between the two parties.

The topic of revenues once again provided for some of the narrative to last week's Annual Public Meeting from the Port of Prince Rupert, with the Port's VP of Finances Joe Rektor making note that this year the Port itself will be delivering 2.4 million in payments in lieu of municipal taxes, down slightly by two percent from last year. 

The conversation on revenue derived from Port operations also came up by way of a question at last weeks meeting, with one participant making note of the past complaints from the City officials and seeking some background on the steps taken since.

That offered the opportunity for a larger overview of all of the Port related financials, with Ken Veldman the VP of Communications and Sustainability providing for a tutorial of sorts for the community.

He offered up a wide ranging  overview as to how the Port's range of operations and partners deliver a stream of revenue from many sources beyond just the controversial Payment in lieu of taxes.

Port of Prince Rupert VP Ken Veldman speaking on revenues 
delivered to the City of Prince Rupert

"Obviously the City of Prince Rupert in particular, has had some financial challenges over the last decade and we can appreciate that. In terms of port activity and how it impacts city revenues. While we haven't done the research based on their last annual report, the Port Authority actually returns about 10 million dollars per year in revenue towards the City of Prince Rupert. 

And that comes in the form of payments in lieu of taxes, so essentially when we have vacant land that's a form of taxation that moves back to the city. When we lease different properties to terminals for example, or other tenants they are subject to taxation as well. And last but not least, as a compensation for the cap on property taxation mill rates that can apply to terminals, the province actually returns a port competitiveness tax transfer back to the municipality as well

And in total that equals about 10 million dollars which is a significant tax base for this community.

And notwithstanding the challenges that the municipality may have, that is a very strong return. And I think where we are aligned with the City and with the community is that, as we continue to grow and diversify that tax base, whether it be directly through the port or ancillary businesses that are continuing to expand with the port's expansion. 

Ultimately in the long term that is going to be the way that we can build the most robust tax base for this community and whether it's through direct taxation, or whether it's through our investments into the community through vehicles such as the Community Investment Fund we'll continue to ensure that we're doing out part, to invest back into this community and ensure that it remains its vibrancy"

The Financial Coles Notes on directing revenues to the City can be found as part of the video presentation, it comes up in the last five minutes of Wednesday's meeting.




The City's Chief Financial Officer will deliver the City of Prince Rupert Annual Report at the June 22nd City Council session.

For more items of interest on the Port's 2020 Annual Public Meeting see our archive page here.

Further background on Port related themes can be explored here.

A look at past Discussion topics for the City of Prince Rupert can be reviewed from our Council Discussion archive page here.

Cross posted from the North Coast Review.