City of Powell River councillors have recommended a new allocation of Powell River Community Forest (PRCF) funds in the amount of $412,015.98 as part of the community forest’s fall grant program.
At the October 22 committee of the whole meeting, council members received a briefing from community forest president Greg Hemphill and manager Chris Laing about the state of the community forest and various donations for the fall grant program.
The presentation had controversy, with Hemphill reacting to a staff report regarding financial implications that stated when PRCF reserve funds are directed externally to nonprofit organizations (NPO) rather than to eligible city projects, property taxes must increase to fund these city projects that would have otherwise received funding by the PRCF reserve.
“For example, the $1.7 million in spring grants to NPOs increased property taxes for an average-single-family dwelling (ASFD) by $180 (seven per cent),” the report stated. “The cost to an ASFD of the proposed fall grants to NPOs would be $44 (two per cent), for a 2024 total of $224 (nine per cent) in increased property taxes for an ASFD. Should council approve the fall grants as proposed, the total 2024 PRCF funding for projects would be $3.8 million, with $2.1 million (55 per cent) to NPOs and $1.7 million (45 per cent) to the city.”
Hemphill said PRCF never thought it would see something in writing where grants to community nonprofit organizations are seen as a tax liability to the city.
“It’s crazy to us,” said Hemphill. “We always were under the impression that we were relieving the city of some tax pressures. It’s an interesting spin. We have a hard time understanding that.”
City councillor Jim Palm said when he read the report on the community forest grants, he read the section on financial implications, indicating grants to nonprofits are causing increases in taxation.
“I am sitting here with my stomach churning,” said Palm. “It is very annoying to me.”
Councillor Cindy Elliott said she appreciated understanding what she termed as opportunity costs and what that looks like.
“I want to make sure everyone understands that all the information is valuable and that none of it is intended to hurt anybody,” said Elliott. “It just helps us think through the decisions that are coming up and opportunity costs are relevant. They are not meant to hurt you. They are to help inform what things we are trying to balance when making our decisions for our entire community.”
Councillor and committee chair Rob Southcott said in these times of change, councillors need to look at every possible option, regardless of how distasteful or uncomfortable they might be, from different perspectives.
“The fundamental concern for us all is to do the best for our community, and again, I have deep appreciation for the community forest,” said Southcott.
Hemphill told councillors there was a record-sized dividend in 2023 of more than $6 million. He said the community forest board held money in reserve for operations and balancing the next dividend.
“This brings the total amount to the fund since its inception to $31 million,” said Hemphill.
He said the city had not applied for fall 2024 grants, mostly to concentrate on the backlog of PRCF projects already underway. It also allows more funds to be allocated to the spring 2025 grant program, according to Hemphill.
There are 12 organizations that have been identified as grant recipients in the fall 2024 program. The two largest grants include restructured Powell River Search and Rescue building and infrastructure improvements for $111,687.81 and qathet Regional Cycling Association phase two of the Mt. Mahony mountain bike trail network for $265,269. Most of the rest of the grants are in the $10,000 to $20,000 range. These organizations include: Kelly Creek Community Church; West Coast Wind Swim Club; Townsite Actors Guild Society; St. David and St. Paul Anglican Church; qathet Museum and Archives Society; Powell River Youth Soccer Association; Powell River Kiwanis Housing Society; Texada Island Volunteer Fire Fighters Association; Tourism Powell River; and qathet Division of Family Practice.
The committee voted to send the matter to the October 24 city council meeting for approval.
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