Members of the public were invited to the Lester Centre of the Arts on March 9 for a special council meeting to provide feedback on the city’s budget.
Prior to the floor being opened to members of the public, Prince Rupert’s chief financial officer Corinne Bomben went over her report on preliminary figures in the 2015 budget, and she projects a $220,000 shortfall.
As it stands now, the city would need to increase the municipal mill rate 1.9 per cent to balance the budget.
While property assessments in Prince Rupert are expected to go up this year, the city must adjust its mill rates to a level that would achieve the same amount of tax revenue as the previous year.
Last year, the average assessed value of a house in Prince Rupert was $196,000, paying $1,652 in municipal taxes. After adjusting the residential mill rate based on 2015 assessments and boosting it by 1.9 per cent, the average homeowner will pay $1,689 in municipal taxes in 2015, or $37 more.
The idea of residential taxes going up once again was a concern highlighted by residents at the meeting.
Prince Rupert Mayor Lee Brain said the reason taxes continue to climb for homeowners and businesses each year is because of a tax cap legislated by the provincial government on designated port properties.
Each year the City of Prince Rupert receives less tax revenue from port properties, as they depreciate in value annually.
“We have zero industry that actually falls under the City of Prince Rupert’s mill rate,” he said.
Coun. Joy Thorkelson encouraged residents to rally all levels of government to limit or stop the port cap legislation, but said the city won’t reduce services to lower taxes.
“I pay our taxes and I don’t enjoy having to pay more, but I don’t know where to cut,” said Thorkelson.
“There is absolutely nothing else we can do in the city to become any leaner than we are. We literally have an engineer that’s doing four jobs in one,” Brain added.
Mayor Brain said the city is being proactive by working with the province to find a different solution.
“We are working day and night to ensure this community is going to be successful and that one day your residential taxes are not going to continue to go up. That’s why we’re trying to be a good host for LNG because that’s going to be one way to alleviate that,” Brain said.
Some other highlights of the 2015 budget include an increase of $400,000 to contractual wages and benefit rates, an additional $100,000 being needed for staff succession planning and needs, and a projected $35,000 increase in energy costs.
Prince Rupert resident and former city councillor Gina Garon asked a number of questions throughout the meeting, including what measures the city is taking to reduce its energy bill.
Bomben said energy costs continue to climb annually, with the city working to counter that.
“We are always trying to find new ways to replace some of our aging assets that are heavy energy consumers,” Bomben said, noting past projects such as the upgrading of street lights to more energy efficient LED bulbs and the replacement of the old boiler at the Earl Mah Aquatic Centre.
Garon also asked for clarification on the additional costs for staff succession planning and an increase in needs of staff.
Bomben said one of the city’s finance managers will be leaving in 2015, with their replacement needing to be trained. The city will also require a new position to maintain the new GIS database.
A second public meeting is scheduled on Monday, March 23 at 7 p.m. in council chambers.
Council will then consider feedback and provide direction for the budget to staff.