Budget conversation focuses on civic spending, concerns over driving residents away from the community

The First public budget commentary period came and went on Tuesday, with a small group in City Council chambers to take in the latest of Budget themes from the city's senior staff and elected officials.

The public engagement on the evening began with a short snapshot from the City's Chief Financial Officer, with Corinne Bomben reprising many of her themes from March 22nd. 

Though she did note of some additional pencil sharpening towards the tax hike, which now is proposed at 12.5%, that after some money from CityWest was delivered and some savings in capital planning and recreation were achieved.

As for the public commentary, only two residents came forward to speak on the evening. with Mr. Terry Sawka and Mr. Patrick Witwicki mining different areas for their observations. 

Terry Sawka led off the contribution from the public, he took note of some of the elements of Ms. Bomben's presentation and focused on approvals of purchases from last year, that were not paid in 2022 with the cost returning in 2023.

He also noted of the 1 million dollars towards road repairs and observed how that is not enough, putting forward the idea of  a gas tax or user pay concept in the community to be put towards road repairs, noting he had suggested that in previous years and was told it was not possible.

"A few years ago I came here and I suggested, because the city was talking about increasing the tax rate at that time, I made a suggestion why not have a gas tax like they do in Vancouver, two cents a litre. 

In that discussion, I could not understand why a senior and  I used  my mother as an example who has never driven a car, is paying for a guy like me driving a car, in other words user pay.

You know we have tourists come through here, they drive on our roads, we have heavy duty vehicles here they drive on the roads.  

And at that time I was told it wasn't possible,  well it is possible if you want to make it possible. You know, I don't like taxes, but user should pay."   -- City Resident Terry Sawka

He also spoke towards funding for infrastructure work and questioned the nature of the city's costing on borrowing towards that work and how they plan to spend the recent funding from the Province.

City Manager Robert Buchan explained how the city has been successful with the province for funding and continues to work to gain funding from the Federal government but that will still require civic borrowing and a contribution towards that work.

Mayor Pond followed up how the city requires operations money to address emergency line breaks, with the larger provincial funding to be used for the larger rebuild of 26 miles of pipes in dire shape.

Ms. Bomben noted that the 750,000 dollars for the repair work is already assembled through utility fees and would not be through borrowing.

Mr. Sawka also had concerns over the pilot project off Omenica towards water waste and how the city may be using land that it wished to develop in the future, noting of the decision to build the Industrial site which he believes would have bee better used for housing.

The topic of the McCarthy GM property made for some of his final topics, though he was unable to gain an update on how much the lease would be, Something the Mayor noted he did not know. The cost of renovations also made for some of his concerns, work that the Mayor observed would be making use of funding from Watson Island.

Mr. Pond observed how the current location is a health and safety issue and the McCarthy option was the best alternative. that was. theme that Mr. Sawka challenged, observing that the city should be able use the existing land on Wantage Road to build their own facility over paying a whole lot of money for renovations, towards a building that they may not end up owning.

"It doesn't cost that much to put up a steel building, I've put steel buildings, they're fairly cheap especially when they're going to be used for garages or things of that nature. Versus paying a whole lot of money, 2 million dollars to renovate a building that you may not get to own, and if you do, what's the cost of the building, there must be a number in there somewhere" -- Prince Rupert resident Terry Sawka

Mayor Pond noted that they were taking notes and would have that information and would get that for him. 

While it's perhaps understandable that the council members may not have that kind of information available at their fingertips, they did have a number of Senior Staffers on hand on the evening that surely could have provided some kind of ball park figure as to the cost of the leasing opportunity and whether the purchase option is being pursued, so perhaps an opportunity for full disclosure was missed on the night.

Mr. Sawka's final question was related to the City Contract just negotiated with the union. He was advised by the CFO that the term of the union contract was for a four year term; with Dr. Buchan adding that the terms of the deal were 4%, 4%, 4% and 2%,  

He further observed how the percentage of the budget of that cost is 7.1% which includes other labour contracts and issues.

The Mayor pointed towards the ongoing frustrations over tax capped properties which requires a larger tax request from the remaining taxpayers to address costs that the city faces.

Mr. Patrick Witwicki was the second participant on the night, first obseving of his past work as a Daily News reporter and his current duties with AFFNO.  His focus was on the impact of the proposed tax hike and how it will affect family incomes. 

He cautioned Council that tax increases such as those under consideration could lead to an out migration from the community and work against the city's desire to grow the population base.

He suggested that the City stay the course until they hear back on the court challenge against the Port on financial issues, consider not hiring some of the staffing positions that had been mentioned, as well as to consider user fees towards raising funds, suggesting a raise to the Hotel tax.

Witwicki also returned to the challenges of the pulp mill closure and how Council addressed taxation under those challenging times and called for a similar response to the current situation.

"So my message here today is just to caution, if it's 12 percent this year,  what happens if it's 12 percent next year and that kind of thing ... 

Like any taxpayer I'm never happy to pay more taxes, But I understand if it has to go up a little bit that kind of thing , I know the circumstances we're in, I know our water pipes seriously need fixing ... 

Some of you were here still in 2003 when our city was basically in survival mode, so yeah things are better, but let's keep it getting better and don't scare people away and scare people from moving here" -- Prince Rupert Resident Patrick Witwicki

Some further budget observations would come later in the session, that with the deliver or a late addition to the agenda of a verbal report from the Director of Operations, with Richard Pucci expanding on some of the items from the Budget requests list of March.

Public Works Building --- Mr. Pucci observed that the current facility has health and safety issues, was built partially on the garbage dump and is in a landslide area, with the new location considered closer to the community and more effective. Calling it the right fit for the Department. The existing site would be used for a lay down of materials area. He added the relocation plan was supported by Legacy, with no impact on taxation.

Mr. Pucci noted of the city's success at gaining grants over taxation and the use of Legacy funding for their requests and the must haves that are directed to the city by senior levels of government.

Omenica Waste  project -- The Operations Director noted how the site was basically a marsh and how the pilot project would make use of land not conducive to building, and how it reduces the visual impact of facilities on the city's waterfront.

Waterfront Development program -- He expressed pride in the moving of the airport ferry and how that is fully funded by the province.

Other areas for proposed spending addressed included, the plans for the McBride Street Court use, fleet and equipment purchases with the money rolled over into this year.

He also spoke to the various annual programs such as streetlights, sidewalks and such. 

As well he noted of replacement plans for the Third And Fulton traffic light, bridgework that is required in the community which if not done would see the bridges in the community downgraded. As well as work on the Woodworth Lake area with road remediation required. 

He also observed of work at the Landfill site, Water Treatment plans which will require borrowing, also noting of some extensive work ahead for the First Avenue waterlines and the Shawatlans Road area which once completed would see a better road in place to the Industrial park following the work on the new waterlines that are required. 

Both of those items would come out of the province's 65 million dollars in funding.

Also on his list, Hays Creek Sewer replacement,  Industrial park treatment plant and outfall repairs that are required owing to government requirements. Mr. Pucci also observed of ongoing community planning, transportation planning and the installation of EV Charging stations at the Civic Centre.

City Manager Robert Buchan followed up with a few observations of his own, noting of the significance of the plans for this year and how they will make a huge difference to the future of the community.

He featured the waste water plans in his overview and how once it is proven as a workable solution, will save the community money and the more traditional approach of facilities on the waterfront, noting of it as a staff team achievement.

"Yes, it's innovative and it is a pilot and we have some grant funding towards that. And it's going in on a piece of Prince Rupert that you can't really do much else with. But what it's also doing, is once we prove this, it will save us somewhere in the order of 100 million dollars from an alternative conventional sewage treatment approach and facilities on the waterfront. So that's one of the things that the staff team is achieving, it's not just getting grants, it's doing things smartly and cost effectively in ways that benefit the economy"    -- City Manager Robert Buchan

He also pointed to the success of the Legacy Corporation and its investments in Watson Island and how it has returned funding to the community.

"I just want to emphasize this, 5.4 million dollars is what Legacy has contributed this year. If the City of Prince Rupert had not pursued development of Legacy and Watson Island, we wouldn't have had that.  And what that contribution this year means in terms of tax increase avoidance is approximately just over 14 percent.  That's what we would have had on top of this budget,  if it weren't for Legacy. And utilities would have been up 75 percent and that's to pay respect to the good work that has gone on here" -- City Manager Robert Buchan

He also reiterated the city's focus on recent issue such as the PILT and if they lose that court challenge then there will be a significant impact to the city's finances, with the City intent on not losing that but they will have to go through the process.

Mr. Buchan further observed how the City needs to address successful outcomes for the PILT, Tax Cap and to gain a Resource Benefits agreement, with success in those areas the city won't have to find solutions through taxation on other users.

Mayor Pond then observed of the importance of the 65 million dollar grant from the province and how it has given the community a remarkable opportunity, should they  gain similar funding form the Federal government.

The Mayor noting how the waterline work would lead to better opportunities to rebuild the city's streets and renew everything underneath. The Mayor observing that residents in Prince Rupert may have to be papered to pay for some of that work through higher taxation.

Councillor Niesh used the opportunity to remind the public to access the budget program online to see how the money collected is spent and to see how they can understand the budget better by using it.

That was a theme also explored by Councillor Adey, who urged the public to take part in the engagement program to better inform council as to their concerns and wishes.

One final bit of financial accounting came out of the Council Session related to the budget and that was on the recent news of the CityWest announcement of one million dollars in funding over two years. 

The topic one raised by City Councillor Nick Adey, the councillor welcoming the funding from where he sits and relaying notes from the community found online online related to whether this was the same funding that the city annually receives from the communication company or something separate.

Dr. Buchan noted that the money is from the same source of funding as in the past, but adding an interesting twist to this years announcement. 

"It is the same source of funding, what's different here is that  they have a two year holiday because  of heavy capital expenditures,  But in the light of our fiscal situation, they revisited that and they found a way to send over a sizeable sum outside of their financial plan -- City Manager Robert Buchan

There were no follow up questions related to the revelation that the city owned communication company had revised its traditional financial distribution back to the city.

Something that should perhaps be of some significant discussion for the City Councillors reviewing the investment into the company and the loan repayments required that come with it.

The Budget themes are found throughout the Session, you can review the full review below:

There will be one more opportunity for public comment on the Budget, that comes up on Monday, April 24th at 7PM as part of the Regular Council Session. 

Some reference material is available through the City Website here.

Residents can also access more Budget Material from the City's online portal Rupert Talks.

More notes on the Budget process can be explored from our Budget Archive page.

Additional items of interest from the Tuesday Council session can be reviewed here.