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qathet Regional District’s (qRD) finance committee was presented the fourth and final draft of the 2023 to 2027 financial plan that proposes a $1 million increase in requisition for taxes from residential taxpayers.
The total requisition for residential has gone up from $9,006,482 to $10,059,544. The increase in requisition amounts to an 11.8 per cent increase.
At the February 9 finance committee meeting, manager of financial services Linda Greenan outlined the plan draft, which will be presented to the regional board for adoption on February 22 at the regional district’s monthly board meeting.
Greenan quoted a consumer price index increase of 6.9 per cent and said a number of contracts were predicated upon that figure. She also said future borrowing was being calculated at six per cent, although those rates could change. She said the municipal finance authority is currently indicating 4.28 per cent for 20- to 30-year borrowing but an adjustment has been made to six per cent in case it becomes higher.
Greenan said the capital plan for the regional district indicated expenditures of $16,161,500, with the main portion going toward the resource-recovery centre and waste-transfer station. In the electoral areas, there is a $4,137,592 capital plan, with the major items including the northside recreation centre upgrade and Savary Island volunteer fire department fire truck replacement. Regarding the recreation centre, much of the funding has come from grants, said Greenan, and there is an alternative approval process in place to gauge taxpayer support for the project in the northside area.
She said she wanted to bring to the directors’ attention that the concession at Shelter Point Regional Park on Texada Island is not self-sustaining.
“We get very little revenue in and quite a lot of costs that have to go out every year to maintain that concession,” said Greenan. “I ask that the board consider having staff look at some alternatives for use of that space.”
Greenan said the waste-transfer station grant that the regional district has applied for is still pending, so the financial plan doesn’t have any of that potential grant in the budget.
“If we do get the grant, that would be great news,” added Greenan.
Residential rates
She then outlined residential tax rates. For City of Powell River, the tax rate per $100,000 of assessed value is just under $62, she said. The cost per average home, assessed at $607,465.81 for 2023, is $374.07 in the city; $1,641.93 in Electoral Area A; $1,024.28 in Electoral Area B; $1,069.82 in Electoral Area C; and $1,101.31 in Electoral Area D.
“Since this is the final draft of the five-year financial plan, if there are no further changes, then this will go forward and be presented to the February 22 board meeting,” said Greenan.
Greenan said the total qRD operating budget for 2023 is projected at $13.9 million and the capital budget is $20.2 million.
Electoral Area D director Sandy McCormick brought up the Shelter Point concession.
“Yes, it has lost money for years, but the thing that needs to be considered is that camper fees are meant to subsidize the concession,” said McCormick. “It’s a loss leader but it brings people in. If we lose money on the concession, I believe we are making it back in the camper fees. People depend on that concession.”
The finance committee is recommending the regional board approve draft four of the proposed 2023 to 2027 financial plan as presented at the finance committee meeting. The recommendation also suggested that any 2022 surpluses not scheduled to be brought forward for use in 2023 be allocated to the applicable reserves, and that the proposed financial plan be incorporated into a financial plan bylaw to be presented at the February 22 board meeting for first reading through adoption.
During question period at the end of the finance committee meeting, the Peak asked about the increase in total tax requisition going up about $1 million, and what the increase represents.
Greenan said that in 2023 general administration cost increases accounted for about $173,000, and the biggest change is solid waste management, which is an increase of about $268,000. Other big changes are in the fire departments, which account for about another $300,000, and in regional parks there is an $84,000 increase.
