Taxpayers were provided with a graphic overview and an opportunity to speak to City of Powell River councillors and senior staff about the components and effects of the five-year financial plan.
During the first of two open houses, held Wednesday, April 8, at Cranberry Seniors’ Centre, a number of charts and other information were displayed to provide taxpayers with a snapshot of the city’s major budgetary components.
Shehzad Somji, the city’s chief financial officer (CFO), said the charts make it easier to see financial plan details in pictures and numbers to help prompt questions.
“This is an information session where citizens can have a discussion with mayor and council, figuring out where their processes were, and where the budget processes have gone,” Somji said.
The city is getting close to finalizing the budget, he added.
While the city has previously held budget open houses, Somji said he believes the former sessions were presentations, rather than the more loosely scheduled session where taxpayers can sit down with council, as is the case this year.
“One thing council wanted when we had the discussion about the open house was they don’t want someone up front presenting anything,” Somji said. “Let’s just have information and conversations.”
The biggest challenge in preparing this financial plan was getting all of the operating costs in line with the revenues.
“Council set a mandate of no increases to tax rates for the next four years, so that’s a challenge,” Somji said.
The $500,000 increase in tax assessment this year for Catalyst Paper Corporation has helped defray some of the expenses and moving forward, it will be helpful for the three years of the increase, Somji said.
In terms of distribution of Powell River’s property tax revenue, residential tax collection in the proposed budget amounts to $9.7 million, or 60 per cent of the $16 million collected in taxes within the city. Major industry, which is Catalyst, amounts to $2.75 million, or 17 per cent of the budget. A similar amount comes from businesses within the city.
“It’s a big number for residents to have,” Somji said. “We are at the higher end of the municipal tax rate compared to other communities in our population range.”
Council has until May 14 to finalize the five-year financial plan.
“The schedule is to have the open house tonight, another open house on April 15, we are going to tally all of the feedback results and take it to the April 30 finance committee meeting,” Somji said. He added that the committee will provide a recommendation for the Thursday, May 7 council meeting. He anticipates there will be a special council meeting on May 11 or 12 for final adoption of the budget.
“I think the financial plan is pretty well done.” Somji said. “I don’t see a lot of changes there.”
Having a five-year financial plan is useful for the budgetary process because there is a foundation for the city’s finances, Somji said. Going forward, a significant portion of the work is a matter of fine-tuning the strategic direction.
Dr. Andy Davis, a citizen who attended the open house, said he has paid taxes his entire life but has never really understood them. “There has always been the question of where does the money actually go?”
Davis said he was pleased to see the participation of council members at the open house.
Davis had the opportunity to review some of the charts with councillors Russell Brewer and Karen Skadsheim and had a lengthy discussion about city flat taxes.
“I didn’t have a clue what the scenarios were,” he said. “I gained an understanding of the effect of this tax on expensive housing and the less-expensive housing.”
Davis said he can see the effect on seniors, who bought houses when they were 30 years old. The residences have significantly appreciated in value over a 50-year period and, in retirement, the seniors no longer have the financial resources they once had to pay the high level of taxation they now face.
There will be another open house from 6 to 8 pm on Wednesday, April 15at Powell River Recreation Complex lower foyer. Information regarding the financial plan is available at city hall on Duncan Street during working hours and online.
