The city of Dawson Creek will amend the latest draft of its five-year budget plan to reflect a decrease in provincial funding.
The Peace River Agreement (PRA) grant allocation has been reduced by 2.5% in 2025, or more than $400,000, with the city receiving just over $16 million.
The money is part of a 20-year deal between the province and governments within the Peace River Regional District in recognition of industries such as oil and gas, energy, and mining that “are central to provincial economic prosperity.”
It allows for funding for capital projects, including the improvement of infrastructure, support of local industry, and community services.
The fund constitutes 60 percent of the city’s capital budget, leading to a decrease of more than $250,000 in capital expenditures. However, higher year-end carryover funds covered $50,447 in reductions.
To make up for the shortfall, city council is proposing cutting or eliminating two projects, including the carry-over of an outdoor security camera project and rolling out solar energy panels at three city facilities.
The other 40 percent goes toward the operating fund, which will be decreased by $166,965.
The allocation formula is influenced by municipal industrial assessments and population data. A decrease in population and assessments led to a reduced allocation.
This year’s budget also includes a 6.5 per cent property tax increase for homeowners in Dawson Creek.
In comparison, Fort St. John will receive just shy of $27 million from the agreement. They are projecting the funds to be under budget for 66 of 109 projects that required PRA funding this year. The city anticipates fluctuations in the allocated dollars from the agreement over the next five years.
PRA payments are also made to the District of Hudson’s Hope, Village of Pouce Coupe, District of Taylor, District of Tumbler Ridge, and Peace River Regional District as part of the deal signed in 2015.