qathet Regional District directors will consider a recommendation from the finance committee for increases for users of the Lund sewer system.
At the October 4 finance committee meeting, Electoral Area A director Jason Lennox moved that the finance committee considered what was referred to in a staff report as option two.
“We have increased asset management pressures coming at us,” said Lennox. “You can tell we have a professional asset manager, which is comforting, because we have the information in front of us.
“It’s a little disappointing with no increases over the last five years, we find ourselves where we are. We’re looking at three options. I know we can’t do nothing, but with the pressure in Lund with our water improvements, I believe option two is going to be a big hit for people, but it strikes a balance.”
Lennox said that Lund residents will be faced with increased costs moving forward.
According to a staff report, option two recommends making a moderate increase to the parcel tax and user fees starting in 2024 and working toward improving the average annual reserve contribution by 2028. The option specifies increasing the parcel tax by 10 per cent in 2024, which would generate an additional $5,250 of revenue. Parcel taxes would continue to increase by five per cent per year until the 25 per cent requisition limit is reached.
The option recommends increasing user fees by 10 per cent in 2024, which would generate an additional $9,570 of revenue. User fees would continue to increase by five per cent per year after 2024.
The parcel tax and user fee increases would provide an additional $14,820 of revenue in 2024.
City of Powell River director Cindy Elliott said the option spreads out the big spike in inflation. She asked, if there are continued large increases in inflation, would there be a harder hit in future by not keeping up.
Manager of financial services Linda Greenan said one of the goals of hiring an assistant manager of financial services was to develop long-term financial plans.
“What we need here is a long-term financial plan,” said Greenan. “That will give us a better indication of how we are going to fund all the replacements. If we have to do a big replacement, we’ll have to borrow our portion of the funds.”
Electoral Area D director Sandy McCormick said the regional district can’t lose sight of the taxpayers’ ability to pay. She said the option does provide the opportunity to put some money away. She said when major projects are required, there is the opportunity for grant funding, so she’s not quite as worried about having all the money put aside for an asset replacement, but being well on the way is preferable.
City of Powell River director George Doubt said option two is a compromise and system users ultimately could end up paying more.
“It doesn’t do everything we would like to see in a perfect world but it makes sense to me,” said Doubt.
Electoral Area Ce director and board chair Clay Brander said he isn’t in favour of putting financial burden on future generations, but he also appreciates the concerns about the current taxpayers being able to handle the burden.
“I’m willing to accept option two as the way to go,” said Brander.
The committee unanimously recommended to the regional board to increase the Lund sewer parcel tax and user fees in line with option two.
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