City of Powell River Council has turned down a request from qathet Regional District (qRD) to use community works funds to complete the new resource recovery centre.
At the February 6 city council meeting, chief financial officer Mallory Denniston said she was providing a report in response to council direction for qRD’s request for $1.3 million of city community works funds to be given to the regional district to help fund completion of the centre. Costs came in $2.5 million more than had been previously financed, and qRD was requesting that both governments use community works funds to cover the cost, rather than borrowing.
“The resource recovery centre is a qRD project and the city is one of six participating areas in the regional district,” said Denniston. “Therefore, the city contributes approximately half the project costs through qRD property taxes that the qRD requisitions each year.”
Denniston said if the city allocated the community works fund to the resource recovery centre, city property taxes would increase 4.8 per cent for capital projects that are covered in draft one of the five-year financial plan. She said if qRD allocates its community works fund toward the centre and borrows the other half, in this scenario, the city’s property taxes do not increase. She added that qRD would charge an average single-family dwelling an additional $7 per year for 20 years to pay off the $2.5 million debt. This would amount to $138 over the 20 years for an average single-family dwelling, according to Denniston.
If qRD chooses not to use its community works fund and borrows the entire amount, city property taxes do not increase and qRD taxation to Powell River residents would be $13 per year for 20 years to pay off the debt, meaning an extra $266 in qRD taxation over the 20 years for an average single-family dwelling.
In correspondence to the city, qRD board chair Clay Brander stated that the regional district was requesting support of the city to jointly fund the $2.5 million required using community works grant funding. His request was that the city provide nearly $1.3 million for the project, and qRD electoral areas provide $1.2 million.
Councillor George Doubt, who was a city director on the qRD board when the matter of using community works funds to pay off the debt was discussed, said he brought up the idea when he was there.
“If that is paid for by the debt, that will increase by $2.5 million the debt that the regional district owes for that service, and they will pay that by increasing taxes to all the people who participate in the regional district service,” said Doubt. “That would include homeowners in Powell River who will get a regional district tax notice.”
Doubt said the question is: do councillors want taxpayers to pay the $2.5 million on their taxes, or do they want to use reserves?
Council voted to direct staff to prepare and send a letter to the qRD board to decline the request, and that council proceed with allocating the city’s contribution through the established property tax requisition process. Doubt was in opposition to the motion.
According to a spreadsheet provided by Denniston, in draft one of the city’s five-year financial plan, there are community works expenditures for several different projects. The plan has yet to be passed.
Projects include: new library stucco and stone cladding replacement; the Powell River Recreation Complex theatre roof; airport upgrades; several other projects at the recreation complex; Marine Avenue curb extensions; a crosswalk at Larry Gouthro Park; the mid-level connector active transportation route between the recreation complex and Brooks Secondary School and lighting for that project.
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