City of Prince George spending increased 48 per cent between 2000 and 2008 - 3.87 times faster than inflation and population growth, according to a report by the Independent Contractors and Business Association of B.C.
Association president Philip Hochstein said the association is concerned about rising municipal costs being passed onto taxpayers and developers. Across the province municipal spending increased 57.7 per cent between 2000 and 2008, while population growth and inflation combined to 28.5 per cent .
"Prince George was the highest we could find of all municipalities over 25,000 [people]. Almost four times the rate of population growth and inflation," Hochstein said. "What we would like is a commitment from the municipal councillors... that are running for office to control these costs."
Higher taxes and fees translates into higher costs for business operators, which then have to be passed onto their consumers, he said.
Higher taxes are a disincentive for developers to invest in renovation and new construction in the province, Hochstein added.
"Wage costs are a big thing. The difference is the private sector manages it, and the public sector is passing the cost on to taxpayers," he said. "2009 was a bad year - zero per cent inflation. My members weren't giving out raises. The CUPE workers in Prince George got three per cent more on their wages."
City employees with CUPE locals 399 and 1,048 received three per cent wage increases in 2009, 2010 and 2011, according to the report.
B.C. municipal employees earn an average of 10 per cent higher wages than comparable private-sector workers, Hochstein said. With benefits, municipal workers receive a total of 35 per cent more than equivalent private-sector positions.
For example, in Prince George workers can bank up to 172 sick days and get paid out for half of them on retirement or 25 per cent if they leave the city, the report said.
The full report is available online at icba.ca. The Independent Contractors and Business Association of B.C. represents 1,200 businesses and contractors in the province.
Mayor Dan Rogers said the association's report doesn't reflect the budget cuts made by the current city council in 2009 and beyond.
"If you look at 2009 and 2010 our expenditures were less than in 2008," Rogers said. "We do our best to try and make sure we are competitive. In regards to fees and charges, we know that when we compare ourselves to our peers... our development cost charges and fees are substantially lower."
Recent investments by Fortis B.C. and Telus in the city's downtown, along with reports by international accounting firm KPGM and the Canadian Federation of Independent Business have validated the city's approach, Roger said.
Over 40 per cent of the city's budget is allocated to providing police and fire services, he added.
"Those are the people that are prepared to put their lives on the line every day," Rogers said. "I'm not going to say they are overpaid. We work fairly and respectfully through our collective bargaining process with our employees."
