Prince George City Council made the decision to lower the tax levy from 3.44 percent down to 1.75 percent in a special budget meeting tonight (Thursday).
Originally, the levy was to be lowered from 3.44 down to 2.22 at a special Finance and Audit meeting last week, however many councilors prefer that number to be lower.
The administration was also asked to draw out what a zero percent increase would look like.
It turned out that a zero percent increase would result in 37 full-time staff losing their jobs, in addition to the approximate 1oo unfilled positions due to the closure of civic facilities.
“It preserves services in the community, that was important for today so that we are not too far behind the eight ball when the pandemic restrictions loosen,” said Mayor Lyn Hall. “We are looking at somewhere around 30 dollars a household.”
Council floated the idea of bringing the levy lower, however, there was concern over what it would mean for next year’s budget.
In the end, they were able to settle upon the 1.75 percent increase, but the decision was not unanimous.
Councillor Terri McConnachie challenged city staff to find a way to bring the levy down to one percent without laying off staff and maintaining the same level of service.
Meanwhile, Councilors Kyle Samson and Brian Skakun wanted the levy to be lower, voting against the motion.
“I’m a little disappointed,” said Councilor Skakun.
“Myself and Councilor Sampson wanted it to be a maximum of a .88 percent increase. We knew that there was no way a zero percent increase would fly.”
Council also voted to scrap their cost of living raise (totaling $6,111) and to waive late penalties for utility payments for the second half of the year.
“Right now, it’s tough times. The city, according to a report tonight has laid off 78 people so far. If this keeps going the way it’s going we are losing about $900,000 a month,” Skakun added.
Council says they will continue to monitor the situation, and adjust the budget as necessary further down the line.
“It was tough. We’ve been at this now for two or three months, and have seen quite a few variations of the budget and tax levy because of the pandemic. We know we are going to have to work on this budget over the next three or four months, depending on the situation we are in,” added Hall.
However, the fate of the Four Seasons Pool will be put off until provincial restrictions start to lift.
The city has a deadline of May 15th to submit a balanced budget.
Here is a video link from last night’s meeting.
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