Our 2015 property tax notice states that city council kept tax increases to 2.5 per cent per year for the last two years. The amount the city actually charged increased by an average of 6.92 per cent per year over the last three years. This increase represents reality, not the fairy tale amount stated by city council. The average increase of 2.5 per cent per year espoused by city council took a lot of financial engineering.
The total increase in the utilities bill for the years 2012-2014 was 105 per cent. Adding the property and utilities bills together, the increase was 32.28 per cent or an average of 10.76 per cent per year for the last three years.
This rate of increase will drive people out of their homes if it hasn't already.
Why is city council doing this? City council is leading us down the bankruptcy path, postponed only by bilking the home owners with higher taxes.
Did the citizens of this city get more and better services for this 32 per cent increase in tax? Not in my opinion.
In fact, the year before last, our residential street was plowed twice, each time two weeks after a heavy snowfall.
Where does this money go?
One area of incredible waste is our bus system. P.G. transit operates with 17 buses for about 16 hours per day transporting 0-4 passengers/bus. What a colossal waste of money!
This is tens of millions of dollars spent for an underused service that could be provided at a greatly reduced cost. The $5.5 million allocated to city transit in the 2015 budget is just as big a fairy tale as the 2.5 per cent tax increase discussed above. I would suggest hiring a scheduling person to determine where transportation is needed with the driving done by private contractors to save millions of dollars per year.
City council still needs more money.
Just recently, they borrowed another $7 million for items that should have been included in the budget. The only way homeowners can have the borrowing put to referendum is if a substantial number of them vote against the borrowing by filling out a form available only at city hall (only 15-17 voted against it). The result is that city council can borrow whatever funds they need to cover whatever expenses they incur.
The bylaw allowing this should be deleted.
They state that the tax increases are needed to maintain services and honour prior commitments. They are maintaining many services that are not necessary or not being used. I suspect there is a surplus of employees in every department. The defined benefit pension plan for employees is too expensive.
It should be changed to a defined contribution plan as most corporations have done. A large number of services should be provided by contractors. This would greatly reduce future pension and fringe benefit obligations. General accepted accounting principles should be adopted to accurately track spending. Results should be easily accessible to the public.
Prince George is not obligated to follow cities, provinces, states and countries into bankruptcy. That is where we are headed.
City council has to get our finances on a sound and sustainable basis. Start managing for the benefit of homeowners, the unfortunate ones who have to pay for all the mismanagement and excesses.
Aaron White
Prince George
