Draft one of the qathet Regional District (qRD) 2024 to 2028 financial plan outlines some substantial tax increases.
At the December 6 finance committee meeting, manager of financial services Linda Greenan led directors through the first draft of the budget.
In terms of residential tax rates, the proposal is for a 34.7 per cent increase for City of Powell River taxpayers. In the electoral areas, the proposed increases are: Area A, 16.93 per cent; Savary Island, 16.14 per cent; Area B, 19.87 per cent; Area C, 19.14 per cent; Area D, 15.31 per cent and Area E, 24.11 per cent.
For city residents in 2024, the tax rate per $100,000 of assessed value is $83.10, which is a tax change of $21.41 per $100,000 from 2023.
In electoral areas, the tax rates per $100,000 range from a high of $305.36 in Electoral Area A, to a low of $194.34 on Savary Island.
Using the 2023 average home value of $607,465.81, because the 2024 assessments have not yet been published, the cost per average home in Powell River for qRD taxes is $504.82, which is an increase of $130.05 from 2023. In the electoral areas, the costs per average home are as follows: Area A, $1,854.97; Savary Island, $1,183.59; Area B, $1,226.35; Area C, $1,272.23; Area D, $1,272,93 and Area E, $1,742.97.
The 2023 tax requisition was $10,070,003, compared to a proposed requisition of $12,367,949 in 2024. This represents a change of $2.297,945, or 22.82 per cent.
Regarding the capital plan, the regional capital budget is $3.82 million, including the resource-recovery centre, the waste-transfer station, the replacement of a dump truck, renewal of the Shelter Point Park shower and washroom, and expenses at the cemetery.
The capital plan in the electoral areas indicates $4.7 million, including the Northside Recreation Centre upgrade and expansion, Savary Island Volunteer Fire Department fire engine replacement, plus a fire engine, rescue truck and fire training centre for the Northside Volunteer Fire Department. Also outlined are a water line upgrade for Myrtle Point water, upgrades to Lund Sewer and tennis court resurfacing in Gillies Bay.
City director George Doubt said he was wondering about the difference in assessment between the city and electoral areas. He said he has been paying attention to other local governments in the province and saw Osoyoos come up with an original 39 per cent tax increase, City of Surrey is somewhere around 17 per cent and quite a few other municipalities are in double digits.
“There aren’t many that are up to 34.7 per cent, which is what the city’s requisition would be for this year,” said Doubt. “The city is up to 34.7 per cent and the electoral districts are somewhere between 15 and 19 per cent. When we get to approving the budget, I’m going to have a few more things to say and I’ll be deciding on how I’ll vote on that.”
Greenan said a number of the increases this year are in the regional services, with the biggest being the waste management service.
“We’re totally changing the level of service,” said Greenan. “That has necessitated a major requisition increase.”
Resource recovery
Manager of asset management and strategic initiatives Arnold Schwabe said one of the changes with the resource-recovery centre in 2024 will be that it is operational halfway through the year.
“Based on that, there is a significant number of staffing, as well as an operational contractor,” said Schwabe. “We expect those numbers to be somewhere in the million-dollar range. Starting next year, we will start payment on the debt principal and interest and that is going to add some money as well. We are expecting that to be in the $500,000 to $600,000 range.”
Electoral Area D director Sandy McCormick said when she read the budget draft, taxpayers were hit with huge assessment increases.
“I really hope we can get requisitions down,” said McCormick.
“The resource-recovery centre is like an endless money pit. I hope that will experience a turnaround once it is up and running and the one-time cost will be dealt with.”
Electoral Area E director and finance committee chair Andrew Fall said he believes all directors share concerns about the amounts. He said directors should think about what is in the plan and bring about direction for staff.
A motion was made that the finance committee accept the proposed 2024 to 2028 financial plan draft.
Doubt put forward an amendment to remove the $183,000 contribution to the parkland acquisition fund for 2024. The motion, however, failed.
The finance committee then passed acceptance of draft one of the proposed 2024 to 2028 financial plan.
Greenan said draft two of the five-year financial plan will be coming forward for the proposed January 10 finance committee meeting. The final budget is scheduled to be presented to the finance committee on February 7, with final adoption on February 28.
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