We continue to move ahead with our budget process.
At our regular council meeting we gave some initial direction to staff regarding drafting a budget.
We have a number of external forces putting pressure on our budget.
As was the case last year, changes to industrial assessment continue to be a big concern.
For example, you may recall last year when Northstar Lumber received a partial shutdown allowance, costing us about $335,000 in lost municipal taxes.
In 2010, they were granted a complete shutdown allowance, which means another $145,000 in lost industrial taxation.
We’ve also got a major industrial property, Quesnel River Pulp, in the final stages of an assessment appeal.
While the numbers aren’t final, we expect to lose about $180,000 in lost municipal taxes in 2011. And, unfortunately, this appeal is retroactive to 2009, so we expect to have to return about $685,000.
Council was diligent, anticipated this and has set aside a reserve account.
We have about $565,000 in that reserve, so we can cover most of the retroactive payment.
We also face a loss of about $56,000 due to some changes to CN Rail’s assessment in the utilities class.
As a result of these three major items, we face a three per cent tax increase to the average homeowner to cover those lost revenues.
If we were to do a “status quo” budget, we’d be looking at about another three per cent increase.
We’ve started to discuss allocating more funds in the Quesnel Works: Capital Reinvestment Program and adding to the tax stabilization reserve.
Council has directed staff to prepare a draft budget with a tax increase to equal no greater than 5.5 per cent.
Does this mean that’s what the final number will be? No.
It’s a starting point for us as Council to really start discussing the budget.
We’ll be looking for efficiencies and savings and we’ll continue to identify new sources of revenue that aren’t based on property taxation.
We’ve got a challenging budget process ahead of us, but I’m confident council will work together towards a budget that is workable for all.
Our future budget meetings include:
February 14, 3 p.m. - Review five-year capital plan
March 7, 7 p.m. - Capital budget review
I keep repeating that I encourage residents to attend these meetings to learn more about the budget and how our city operates.
You can also visit www.city.quesnel.bc.ca/Budget2011 for more information.
Carnival
Ready to celebrate sports and the arts?
It’s that time of year when we celebrate the outstanding sporting and arts communities we have in Quesnel.
On Feb. 4, I invite you to join us at the Quesnel and District Arts and Recreation Centre for a special event.
The Quesnel Art Gallery will host the Art from the Heart February Group Show, “My Heart Sings . . .”
The art show and a reception begins at 6 p.m.
Then, at 7 p.m. in the West Fraser Timber Room, we’ll induct the 2010 class of the Quesnel Sports Hall of Fame.
This year we have seven people plus a ringette team being inducted.
It will be a special evening.
Then the next day, at the West Fraser Timber Park, we’ll host the Winter Carnival from 1 p.m. to 6 p.m.
I’ll have more on this next week, but mark your calendars now.
Fundraiser
Council received a letter from a local family working on a special fundraiser.
Tony Koett wrote about his wife Sandra and friend Amber Hartman who live with Multiple Sclerosis.
Mr. Koett is raising funds to help them with their treatment.
He has started a website – www.MSLiberationTrain.ca that challenges communities to raise funds for their residents with MS who want to seek “liberation treatment.”
If you have a moment, please visit the site.
Literacy
Upcoming literacy event
If you want to attend a fun literacy event, visit Quesnel Junior School on Feb. 3 from 4 p.m. to 5:30 p.m.
Sponsored by the Literacy Quesnel Society and in partnership with the Quesnel library, this celebration of Chinese New Year will include story time, crafts and snacks.
For more information you can contact Joey Shaw at 250-992-2989.
Do you have a question for Mayor Mary Sjostrom? E-mail it to us at newsroom@quesnelobserver.com and we’ll forward it to the Mayor so she can answer it in an upcoming column.