Budget Meeting #1 - Quesnel Council

Courtesy of the City of Quesnel:

Budget 2012 underway

Quesnel City Council met for the first time to formally discuss the 2012 budget in detail.

The purpose of the meeting was for Council to:

Review the Preliminary Budget Overview, including the proposed operating budget of each department (available at www.quesnel.ca/Budget2012.html) Review the supplementary budget items list. These are new spending items that are operational in nature and requested by Council, staff or Committees of Council.

Dollar figures or percentages referred to in Budget 2012 news are subject to change and should not be considered final until the budget process is complete.

Meeting snapshot

Council directed staff to prepare a "status quo" budget with the options for tax shifting from the heavy industrial class to the other classes included. The status quo budget would require a 2.65% tax increase and does not include any personnel or service reductions.

During the operating budget review, Council resolved to use new construction in the major industry class to reduce taxation to the major industry class only. This decision keeps the percentage of taxation revenues that class provides at 62.1% (Had the new construction been used as new tax revenue, it would have increased taxes to the major industry class by approximately $70,000 to 62.6%.) This decision was in keeping with a policy adopted by
Council as part of last year's Five Year Financial Plan Bylaw.

As for the supplemental items, Council opted to review a spreadsheet electronically, and submit votes on whether the item should be formally discussed. Council will review the results of this electronic vote at the Feb. 20 meeting, allowing for further discussion and public ratification of any items Council chooses.

Budget 2012 key dates

November 2011 - Department staff prepare a draft budget.
December 2011 - Finance staff and senior management review the draft budget January - Council receives preliminary briefings.
February 6 - Preliminary operating budget review.
February 20 - Capital Budget review (capital projects include items such as equipment, paving projects and infrastructure improvements).
February 27 - Public input session

Council will deal with a number of other budget items in February, March and April, including:

Reviewing the five-year financial plan.
Setting tax rates for the various classes.
Reviewing early approval lists.
Determining tax shifting between classes.
Determining appropriate reserve allocations.

Budget 2012 quick facts

The draft budget shows the City collecting about $12.725 million, up from 2011, when it collected $12.385 million.

A 2.65% tax increase would be required to meet this budget.

The average home assessment in Quesnel is $161,732 ($164,260 in 2011, a 1.5% decrease).
A 2.65% tax increase means the average house, whose assessment decreased by the average of -1.5%, would be charged $16.80 more for municipal taxes in 2012 than 2011.

If your assessment increased by more than -1.5%, 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 -1.5% you'd see an increase less than the average.

Each 1% tax increase equals approximately $125,000.

Major industry provides 62.1% of the City's general taxes, down from 67.5% in 2001.

The budget process is expected to be complete in April, with bylaws and tax rates approved before May 15.

All dollar values in the budget are subject to change.

Next Budget meetings

February 20, 6 p.m.- Preliminary capital budget review
February 27, 7 p.m. - Public input session

Above meetings in Quesnel Council Chambers (2nd Floor - 410 Kinchant Street)

Related Media Story:

THINGS GOT A LITTLE HEATED AT A BUDGET MEETING FOR QUESNEL CITY COUNCIL MONDAY NIGHT WHEN IT CAME TO THE TOPIC OF THE CAPITAL REINVESTMENT PROGRAM.


FINANCE CHAIR KERI BOLTON SUGGESTED THAT COUNCIL INCREASE IT'S CONTRIBUTION TO THE FUND BY 1 PERCENT OR 125 THOUSAND DOLLARS.


COUNCILLOR SHUSHIL THAPAR SUGGESTED THAT 2 PERCENT WAS NEEDED BUT THAT MOTION WAS DEFEATED 5-2 WITH ONLY COUNCILLOR MIKE CAVE AGREEING AT THIS POINT.


COUNCILLOR LAUREY-ANNE ROODENBURG FELT IT WOULD BE JUMPING THE GUN TO SET AN INCREASE TO CAPITAL REINVESTMENT RIGHT NOW BECAUSE COUNCIL STILL HASN'T DEALT WITH ALMOST 391 THOUSAND DOLLARS IN SUPPLMENTAL REQUESTS.


THAPAR DISAGREED SAYING COUNCIL TOOK A MILLION DOLLARS OUT OF CAPITAL REINVESTMENT FOR ONE DOWNTOWN PROJECT ALONE LAST YEAR WHILE ALSO MAKING REFERENCE TO IT BEING AN ELECTION YEAR.


COUNCILLOR RUDENBURG THAN CALLED FOR A POINT OF ORDER TURNING FINANCE CHAIR ED COLEMAN INTO A REFEREE.


AN ARGUMENT ENSUED AND COLEMAN FINALLY THREATENED TO SUSPEND THE MEETING IF THINGS DIDN'T COOL DOWN WHICH THEY DID.


CAPITAL REINVESTMENT WILL BE LOOKED AT AGAIN AT THE NEXT BUDGET MEETING ON THE 20TH.