Budget presented to qathet Regional District directors

qathet Regional District (qRD) directors were provided the first draft of the 2025 to 2029 financial plan, which forecasts tax increases of more than 10 per cent in City of Powell River and most electoral districts.

At the December 4 finance committee meeting, manager of financial services Linda Greenan outlined the financial plan, covering in all aspects detail.

In terms of forecast increases in taxation, the change for city taxpayers is 12.63 per cent, in Electoral Area A it is 13.04 per cent, in Electoral Area B it is 11.50 per cent, in Electoral Area C it is 12.44 per cent, in Electoral Area D it is 12.08 per cent, and in Electoral Area E it is 8.94 per cent.

In terms of cost for the average home in the city, the forecast figure is $571.70, which is up $64.13 from 2024. Taxation cost for the average home in Electoral Area A is $1,674.47, in Electoral Area B it is $1,310.17, in Electoral Area C it is $1,485.30, in Electoral Area D it is $922.89 and in Electoral Area E it is $1,704.02.

Greenan said budgetary assumptions include an increase of operational costs that may be specific, or may be between three to five per cent. A four per cent return on investments is expected. Future borrowing is projected to be between five and six per cent. Union payroll is to be determined.

“For this plan, we do zero-based budgeting, so the operational costs are based on specific estimates of what the cost will be in 2025,” said Greenan. “If we don’t have a specific estimate, we use a three to five per cent inflationary increase on most costs.

“On insurance, we put in a 10 to 15 per cent increase, and that is because the rates increase based on the market, but also the value of the assets increase annually. We want to make sure we are covering them adequately.”

Greenan said the draft one overview is that a 12.9 per cent tax requisition increase is forecast. This includes a five per cent inflationary increase. She added that there are increases in the budget that are more than five per cent, there is some planned debt that increases the budget, and the 2024 surplus is projected to be lower than what was brought forward from 2023.

In terms of the regional capital plan, there is $686,645 in replacements, including a new backhoe; at Palm Beach Regional Park, there is washroom and concession roof replacement and a sprinkling system; at Shelter Point Regional Park, a new upper water reservoir line; mausoleum windows at Powell River Regional Cemetery; and a new generator replacement is also on the list.

The electoral areas’ capital plan includes $4.66 million in new procurements. Biggest on the list is a Northside Recreation Centre upgrade and expansion, which is largely grant funded. There is new equipment for the four volunteer fire departments, upgrades to the Lund water system and wharf fire protection on Savary Island.

There is also $960,420 in replacements in the electoral areas, including the four fire departments, Lund sewer and Texada Island recreation.

Greenan said the second draft of the budget will be presented at the January finance committee meeting and the final budget will be presented at the February finance committee meeting, with adoption planned for February 2025.

The finance committee voted unanimously to accept draft one of the five-year financial plan.

The committee then considered recommending the board approve an amendment to the 2024 waste management budget to recognize the proposed use of $1,201,465 of the qRD community works fund and $1,298,365 from the city. Electoral Area C director and board chair Clay Brander had recommended that qRD and the city use community works funds rather than taxation to pay for the remaining $2.5 million owing on the new resource-recovery centre and transfer station. The committee passed the recommendation unanimously.

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