City of Powell River Council has gone through an extensive list of recommendations to reduce city taxation, with councillors finding 1.8 per cent in savings from the first draft of the 2025 five-year financial plan.
At the February 27 special city council meeting, staff presented a series of changes that, if fully implemented, would drop the proposed 11.4 per cent tax increase in draft one of the budget down to 4.3 per cent. At draft two, after the special council meeting, the tax increase stands at 9.64 per cent, with an increase of $290 for an average single-family dwelling from the 2024 city taxation.
In introducing draft two, chief financial officer Mallory Denniston said the 11.4 per cent increase in draft one resulted from inflation and insufficient capital savings.
“Much of the city’s capital is due for replacement,” said Denniston. “Many decades of zero to minimal property tax increases resulted in insufficient savings for future capital costs. As a result, savings must be accelerated in the replacement and major upgrade requirements.”
Denniston said four buildings requiring major upgrades or replacement include Powell River Recreation Complex, city hall, the municipal works yard and the fire hall in Westview.
“These buildings are between 50 and 65 years old and have a cost to build and upgrade,” said Denniston. “There are no savings for replacing or completing major upgrades to these buildings, which are at or beyond the end of useful life.
“The capital plan does not include the cost for these projects since the buildings master plan would be required to obtain a reasonable estimate. As discussed in draft one, staff have requested a buildings master plan to be included so reasonable estimates can be forecasted. Once staff has those forecasts, those estimates can be included in the 2026 plan.”
Denniston said the majority of draft two of the plan focuses on a council motion to provide options to reduce the property tax increase in 2025 to five per cent. The first three options in the second draft included deferring the fire ladder truck purchase, for a reduction of 2.5 per cent, purchase of 6,000 automatic recycling collection carts, for an increase of 2.8 per cent, and to defer the city’s salt shed project, for a reduction of one per cent.
There were also options to amend the Powell River Community Forest fund bylaw, to decrease 2025 capital road upgrades, to eliminate the 2025 transfer to the RCMP reserve fund, to eliminate grants-in-aid and in-kind to nonprofit organizations, to increase recreation program fees, to use the BC Transit COVID-19 restart grant, to cancel the cultural master plan project, to eliminate the vacant social planner position and project, to increase community forest grants to nonprofit organizations and transfer to the property tax stabilization reserve fund. Following staff’s suggestions would result in a 4.3 per cent property tax increase for 2025.
As for the recommended changes from staff, council voted to defer the purchase of the fire ladder truck. Council also voted to defer purchase of the automated recycling collection carts. Council then voted to defer the salt shed project.
The next discussion was regarding a decrease to 2025 capital road upgrades. The staff report had the decrease from $1.7 to $1.3 million, which was a decrease of 1.9 per cent. This would mean 1,035 metres of road would be paved, rather than the budgeted 1,397 metres. The motion was amended for a one per cent tax change, with councillor George Doubt and Cindy Elliott opposed.
Elimination of the 2025 transfer to the RCMP reserve fund was the next item discussed. The recommendation was for elimination of the $400,000 transfer, resulting in a 1.6 per cent decrease in taxation. This reserve fund would cover major crime investigations and also help with the transition from paying a 70 to a 90 per cent proportion of the policing cost when Powell River’s population reaches 15,000. The elimination of the transfer was voted down.
Increases to recreation fees were recommended to be bumped by 16 per cent, which would result in a 0.5 per cent decrease in taxation. Council landed on increasing the fee revenues by 10 per cent, which would reduce taxation by 0.3 per cent.
Council then had a discussion on community forest grants to nonprofit organizations. Council voted that the grants to nonprofits be limited to 10 per cent of a three-year rolling average of the community forest’s yearly dividends, with councillors Doubt, Elliott and Jim Palm opposed.
The vacant social planner’s position will not be filled and the planned cultural master plan project will be cancelled if the budget is adopted.
Councillors voted to make a $600,000 contribution to the property tax stabilization fund, which is the reserve established in 2024 from increases in the Catalyst Paper Tis’kwat mill taxation over the amount in the tax revitalization bylaw that gave the mill a break on taxes. This year’s contribution would come from all taxpayers. The concept of the plan is to hold the money in reserve to offset significant increases in taxation resulting from lowered mill taxation.
The 2025 to 2029 financial plan is scheduled to return to city council on March 20 for the first three readings. Adoption of the plan is also scheduled for March.
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