A new standing committee and pitching Prince George as a hub for clean energy were among the conversation topics focusing on economic development during the second day of city council’s budget talks on Wednesday, Jan. 22.
The city’s budget for economic development received a small funding increase from the $710,616 in the 2024 budget to $730,790 in 2025.
Discussing the spending category, councillors talked about the need to bring in more investment and jobs amid uncertain economic times.
Coun. Garth Frizzell said that when Premier David Eby’s mandate letters to his cabinet were released on Jan. 16, there was a big focus on economic development. He asked staff where the city’s focus is on the same front.
“We can also anticipate the 25 per cent tariffs,” Frizzell said about a threat made by U.S. President Donald Trump. “We know what’s happening in wood. With all of these new factors, what do you expect for 2025? This is going to be a high-profile department.”
Director of planning and development Deanna Wasnik said the economic development is developing a plan for the next five years in accordance with council’s strategic plan. She said the factors Frizzell identified would likely be incorporated into its development.
Other things the department will look at, Wasnik said, are housing, forestry and hydrogen energy, though she noted they will be prepared to pivot to other topics if necessary.
Coun. Trudy Klassen mused that with the potential of further mill closures and Trump’s threatened 25 per cent tariffs on Canadian goods, it might have been prudent for council to direct staff to prepare a leaner, alternative budget.
“We haven’t really done any of that consideration in this entire budget,” she said, later asking staff to explain what kind of return on investment the city is getting from its spending on economic development.
That’s hard to quantify, said Kris Dalio, the city’s director of finance and IT services.
“Economic development and development planning are what drives our new construction numbers and our non-market change (to tax revenues),” Dalio said. “This 2025 budget has approximately $2.2 million in non-market change, which is the highest we’ve had, I think, ever.”
While there was a higher figure in 2015, Dalio said that was from BC Assessment doing a “desktop review” where it caught up on a backlog on new construction.
Coun. Brian Skakun said that recent events like the 2025 BC Natural Resources Forum and the city’s first-ever Future Fuels Forum show how important it is for Prince George to have a dedicated economic development office because of the opportunities they bring for networking and to connect with representatives from other governments.
“We’ve got to dig in and expand our population with infill (development) and everything, because of the cost of our services,” Skakun said. “I know I’m preaching to the choir, I’d just like to see whether we’re getting good value for our dollar.
Coun. Kyle Sampson said there’s more that council can do to support staff in their efforts to promote economic development, including meeting with the department more often.
Coun. Cori Ramsay said that while at the Natural Resources Forum, she heard a lot of praise for the work city staff and Lheidli T’enneh First Nation did for the Future Fuels Forum as well as questions about whether it would return.
She pointed to the mandate letter that Health Minister Josie Osborne received last year when she was appointed to the energy portfolio referring to the creation of a “B.C. Centre for Innovation and Clean Energy,” advancing technologies like carbon capture, storage and renewable fuels.
That centre was not mentioned in new Energy Minister Adrian Dix’s new mandate letter released Jan. 16.
However, Ramsay put forward a motion directing city staff to pitch the provincial government on hosting the centre which was approved by council.
With Amazon having recently announced the closure of all seven of its warehouses in Quebec and that it would look to third-party companies to fulfill those services, Ramsay noted that the company is served by a third-party distributor for deliveries in Prince George and there could be opportunities as a result.
Amazon’s closures came after workers at its Laval warehouse unionized last year, though the company denies that it was a factor in its decision.
Given the busyness of staff and the importance of the file, Mayor Simon Yu stressed that there needs to be closer collaboration between economic development and communications staff.
He also said he would “most likely” start a standing committee on economic development.
Under section 141 of BC’s Community Charter, mayors have the power to established standing committees “for matters the mayor considers would be better dealt with by committee and must appoint persons to those committees.”
At least half of the members of a standing committee must be members of the municipality’s council.
It was through this mechanism that Yu created the Standing Committee on Public Safety in 2024.
At another point in the meeting, suggested cutting council’s budget line for economic development advocacy
He said as it existed, there were a lack of parameters for how those funds should be spent and how that spending is report.
Yu said he’d like those funds to remain in place for the use of his desired economic development committee.
Ramsay said she though the existing $8,000 annual expense limit for councillors was quite low and hadn’t seen an inflationary increase in some time.
She put forward an amendment decreasing council’s economic development from $40,000 to $20,000, with $2,000 being added to each councillor’s annual expenditure budget and $4,000 being added to the mayor’s annual expenditure budget, arguing that this would be helpful in allowing councillors to attend more conferences held by groups like the Union of BC Municipalities and the North Central Local Government Association.
The motion carried by a margin of seven to two, with Sampson and Coun. Tim Bennett voting against.
City manager Walter Babicz said that as a result of the motion, administration would need to bring forward an amendment to the bylaw governing council remuneration at a later meeting.
After the vote on the initial motion, Sampson said he still wanted to see the remaining $20,000 cut and proposed another motion that would do so.
That motion was defeated six to three, with Ramsay, Sampson and Bennett voting in favour.
