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Staff to look at levy link

Council has set the bar for administration to limbo under when they prepare next year's budget. Stemming from a motion by Coun. Albert Koehler to tie the 2014 tax levy increase to inflation, council agreed to direct staff to work within a 2.

Council has set the bar for administration to limbo under when they prepare next year's budget.

Stemming from a motion by Coun. Albert Koehler to tie the 2014 tax levy increase to inflation, council agreed to direct staff to work within a 2.5 per cent frame in the coming months.

The 2014 budget will be finalized before the end of this year.

Koehler wanted to link the city's tax increase to the Consumer Price Index, but while his colleagues supported the philosophy behind the idea they were less comfortable with the number.

Currently, the CPI sits at 1.5 per cent but could change in the coming months. It fluctuates based on a variety of factors coming from across the country.

"In Prince George, we may not be able to live with an average like that," said Coun. Frank Everitt. "I want us to be prudent, but the process needs to be developed here."

While Coun. Cameron Stolz's idea to fix it at 1.5 per cent initially had some support, others worried it would be too constricting.

According to corporate services director Kathleen Soltis, very early budget figures suggest that a five per cent tax levy increase is necessary for next year to keep the current level of services.

Coun. Lyn Hall said he worried a 1.5 per cent cap would hamstring staff and would cause them to have to make drastic cuts. He offered a 2.5 per cent limit for more flexibility.

The motion passed without the support of Koehler and Stolz as well as Mayor Shari Green, who also wanted a lower number.