The City of Prince George is facing a $3.13 million budget shortfall going into the 2012 budget year, according to city financial planning supervisor Kris Dalio.
In a public budget consultation held last week, Dalio said the city has over $4 million in rising costs while new revenue was projected at $870,000.
"The challenge that we're facing is labour," Dalio said. "There is increases that are coming up that are nonnegotiable."
Labour costs for police and fire department staff are expected to increase $1.3 million due to negotiated wage increases. The city's unionized and exempt staff have a further $1.5 million of wage increases expected in 2012.
Internal and external debt, utility costs, increased operating costs from capital projects, Initiatives Prince George, the Prince George Public Library also contributed to the rising costs.
The city is gathering public feedback to put before city council on Oct. 24, Dalio said. A report compiling the feedback will be presented to council, which will use it to set the direction for budget planning.
The city's budget will be formally debated and finalized in February.
Residents can e-mail their comments or a 30-second video detailing their budget priorities to socialmedia@city.pg.bc.ca.
Pre-budget surveys were mailed out to residents on Sept. 30 and hard copies are also available at City Hall. An online poll is also available at the city's website princegeorge.ca.
"There is still some opportunities for the public to come up and speak at the Oct. 24 meeting, as well," Dalio said.
Rising costs
RCMP and fire wages $1.3 million
Unionized and exempt staff $1.5 million
Internal reserve fund replenishment $500,000
External debt payments $200,000
Operating costs $80,000
Utility costs $70,000
Library and Initiatives Prince George $110,000
Other costs $265,000
New revenue
New tax revenue $575,000
Traffic fine revenue sharing increase $250,000
Fee increases $25,000
Dog license fees $20,000
