Budget Briefs - Preliminary Budget Meeting Monday January 28, 2013 Quesnel

CITY OF

Budget 2013

Budget 2013 underway

Quesnel City Council met for the first time to formally discuss the 2013 budget. The purpose of the meeting was for Council to: Review the Preliminary Budget Overview, including the proposed operating budget of each department (available at www.quesnel.ca/Budget2013.html) Review the supplementary budget items list. These are new spending items that are operational in nature and requested by Council, staff or Committees of Council. Dollar figures or percentages referred to in Budget 2013 news are subject to change and should not be considered final until the budget process is complete.

Budget 2012 key dates

November 2012 - Department staff prepare a draft budget. December 2012 - Finance staff and senior management review the draft budget. January - Council receives preliminary briefings. January 28 - Preliminary operating budget review. February 18 - Capital Budget review (capital projects include items such as equipment, paving projects and infrastructure improvements). February 25 - Public input session. Council will deal with a number of other budget items in March and April, including: Reviewing the five-year financial plan. Setting tax rates for the various classes. Reviewing early approval lists. Determining appropriate reserve allocations. May 6 - Final budget bylaws adopted

Meeting snapshot
Council had previously directed staff to prepare a status quo budget with the options for tax shifting from the heavy industrial class to the other classes included. The status quo budget would require a 3.4% tax increase. This budget does not include any personnel or service reductions. It also doesnt consider any supplemental (new spending) items, or increases to reserves, such as the Quesnel Works: Capital Reinvestment Program. During the operating budget review, Council opted not to make any tax shift from the major industrial class to other classes, such as residential or business. This keeps the percentage of taxation revenues that class provides at 62%. Council also reviewed a number of other budget items, including the supplemental list, Council expenses, and community support items (funding provided to other organizations to run programming). This information will return to future budget meetings for discussion and formal adoption. Council also reviewed how the City stands in comparison with other communities across B.C. thanks to statistics provided by the Ministry of Community, Sport and Cultural Development. For the average residential property, Quesnel ranked 120th out of 161 (the higher the number, the lower the taxes, utility fees and other charges). For major industry, Quesnel sits at fifth of 78; for light industry, 20th of 134, and for business, 56th of 161.

Budget 2013 quick facts

The draft budget shows the City collecting about $13.25 million in taxation, up from 2012, when it collected $12.8 million. A 3.4% tax increase would be required to meet this budget. The average home assessment in Quesnel is $162,494 ($162,137 in 2012, an increase of 0.2%). A 3.4% tax increase means the average house, whose assessment increased by the average of 0.2%, would be charged $22.62 more for municipal taxes in 2013 than 2012. Each 1% tax increase equals approximately $125,000. Major industry provides 62% of the Citys general taxes. All dollar values in the budget are subject to change.

Next Budget meetings Monday February 18, 7 p.m. - Capital Budget Monday February 25, 7 p.m. - Public Input
Budget Briefs provides a summary of some of the business conducted by Council at budget meetings. For more specific details, please visit www.quesnel.ca, click on the Council link and visit the Agendas and Minutes section.

For further information, please contact: Matt Wood, Communications Supervisor, at 250-992-2111

City of Quesnel 410 Kinchant Street Quesnel, British Columbia V2J 7J5 250-992-2111 www.quesnel.ca