A 2.5 per cent budget increase isn't looking too likely for Initiatives Prince George, based on the response the request received from a council committee.
IPG CEO Heather Oland and board member Ken Kilcullen made the request at Monday afternoon's finance and audit committee meeting.
IPG hasn't had a budget increase for the last three years, explained Oland. Last year, the city allocated $1,024,904 to its economic development arm, which amounts to roughly 70 per cent of its revenue. Those funds are then leveraged for additional public and private sector money.
With council already having given staff the direction of keeping to a 2.5 per cent tax levy increase, the ask was "poor timing" on IPG's part, said Coun. Cameron Stolz.
"If we were to add in an enhancement for IPG, that would take our budget increase for next year beyond 2.5 per cent," he said.
The additional funds - roughly $28,000 - are requested for two reasons. The first, said Oland, was to cover the normal increase in the cost of doing business, despite having cut operating expenses.
According to information presented to the committee, 47 per cent of IPG's 2013 budget went to salaries, benefits and consulting fees in comparison with 66 per cent in 2012 and 57 per cent in 2011. Program delivery expenses increased to 38 per cent in 2013 and are projected to rise further to 44 per cent next year.
Initiatives Prince George reported a $67,000 surplus in 2012, but a policy - developed in conjunction with the city - keeps them from using it for operating costs, said Oland. "So we're not permitted by that policy to put surplus dollars forward into program delivery the following year," she said. "We're only allowed to use that to manage our assets."
The second and main focus of the extra funding is to put it into the organization's new focus on local business expansion and retention.
Initiatives Prince George has reorganized and created a new role of business development officer, which Oland said is a first for the city as the organization has traditionally been more outwardly focused.
"But this is a new program area that we are developing as a result of our new strategic plan and a lot of the input that we've received from our shareholder in terms of working with the existing Prince George business community," she said. "Because we know that's where economic growth comes from - people who are already invested here."
The other members of the committee expressed their appreciation for the work IPG has done, but shared Stolz's concern over the increase.
"For me, it's about equity. Other organizations have been told come back with a zero per cent increase," said Coun. Murry Krause. "And if those other organizations could be afforded this same opportunity, I would be supportive."
In terms of equity, Mayor Shari Green said she would be most concerned with IPG and the Prince George Public Library, as they are the groups tasked with providing services for the city.
Coun. Albert Koehler wondered if there couldn't be some wiggle room found in the city's budget, given the request amounted to less than half a per cent of the city's overall tax levy.
Stolz suggested providing IPG with a one-time boost of $15,000 from council's economic development budget.
But what IPG was looking for is a permanent increase to their budget, said Green.
Coun. Lyn Hall also said he wasn't comfortable going down that road.
"For me it's a slippery slope when we start picking from different pots," said Hall.
IPG will make a full presentation of its budget and strategic plan before all of council at the Nov. 27 budget meeting.
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