Quesnel City Council met for the third time to discuss the 2011 budget.
The purpose of the meeting was for Council to:
•finalize the operating budget in principle; and
•review the Capital project lists in detail.
Dollar figures or percentages referred to in Budget 2011 are subject to change and should not be considered final until the budget process is complete.
Budget 2011 pressures
As was the case last year, the City continues to face challenges with assessment. The City saw significant loss of its industrial assessment base, resulting in more than $325,000 in lost taxation revenue for 2011. There was also very little in the way of growth or new construction in 2010.
Operating
budget approved
Following the addition of some supplemental items, the operating budget was approved in principle by Council. A few items were added to the budget, such as new radios for Emergency Services and an increase to the asphalt patching budget of $25,000. Council also opted to add an utility employee to work in the water and sewer division. The costs for this employee are not paid for through taxation; they are funded through utility fees, so have no effect on property taxes.
Finally, Council opted to transfer $50,000 from the transit surplus to the operating budget to help offset some of the tax increase for 2011. As of Monday night, the average tax increase sits at between 5 per cent and 5.5 per cent, pending any final changes to the assessment role and any future Council decisions.
For details on debate, motions and voting where the operating budget is concerned, visit www.city.quesnsel.bc.ca and click on the minutes and agendas link. This information will be posted as soon as it can be made available.
Capital budget reviewed
Council reviewed the capital projects list for 2011, with department managers providing descriptions of each project.
The proposed general capital budget is $865,000. This does not include projects covered by reserve funds (such as major equipment or the Quesnel Works: Capital Reinvestment Program).
The projects deal with a wide range of City services, from improving City buildings such as the RCMP detachment, City Hall and the museum, to computer software, landfill and park improvements.
Staff rank each project to help Council evaluate them. Each project must be approved by Council, who will vote on capital items and spending at the March 7 budget meeting.
Quesnel Works
The Quesnel Works: Capital Reinvestment Program will again fund various infrastructure replacement projects in Quesnel. The program was launched in 2007 and was set as a separate levy on tax notices. Funding collected for Quesnel Works projects is spent only on infrastructure reinvestment.
Currently there is approximately $1.9 million in the reserve fund. Staff has presented $1.068 million in projects for Council to consider. These include projects like rehabilitating the 200 and 300 blocks of St. Laurent Avenue. (This $890,000 project was approved in 2010 but was delayed until this year.) Council will also review a list of various paving jobs throughout Quesnel. Council determines which jobs are completed with that $350,000 budget.
Council will also discuss the level of funding to be invested this year. About $900,000 on average is placed in the reserve each year.
Points of
interest
The average home assessment in Quesnel is $164,429 (up 4.4 per cent from 2010).
If your assessment increased by more than 4.4 per cent, you’d see a greater tax increase than the average number referred to throughout the City’s budget process. If your assessment increase was less than 4.4 per cent you’d see an increase less than the average.
A 5.5 per cent tax increase means the average house, whose assessment increased by the average of 4.4 per cent, would be charged $33.52 more for municipal taxes in 2011 than 2010.
Each 1 per cent tax increase equals approximately $125,000.
Next Budget meeting March 7, 7 p.m. Council Chambers.