City of Powell River managers will have to sharpen their pencils after city councillors voted to see if there can be significant reduction to municipal taxation levels in 2025.
At the December 3 committee of the whole meeting, city chief financial officer Mallory Denniston outlined the first draft of the 2025 five-year financial plan, which indicates an 11.4 per cent increase in the city tax levy if council wants to maintain the same level of service as in 2024. However, at the December 17 committee of the whole meeting, councillors voted to have staff examine dropping the increase in 2025 to five per cent.
Councillor Trina Isakson moved that the committee direct staff to prepare three options for reducing the proposed property tax levy increase to eight per cent for draft two of the city’s 2025 to 2029 financial plan bylaw budget deliberations.
Isakson said her motion was similar to a staff initiative last year of bringing back options for proposed cuts.
“They weren’t making recommendations but they were giving us a slate of options,” said Isakson. “I am trying to acknowledge that we are a city in economic transition. I expect that there will be implications for this community. I expect taxes will go up and I expect that services will feel a crunch. There’s no other way of going through an economic transition.
“The eight per cent is not super arbitrary. I was trying to get it below 10 per cent and maybe even below what I am comfortable with. I expect, when we get options back, that some of the options we won’t want to cut because those things are really important to us.”
Isakson said she was open to an amendment for councillors to provide staff with a bit more direction in terms of specific considerations.
“I felt this was a good starting place for us, but my intention is to give staff a bit more direction,” added Isakson.
Councillor Jim Palm said he liked Isakson’s motion, and it gives multiple options when presenting the three options. He said he would like to see the eight per cent reduced to five per cent, in light of some conversations councillors have had around land sales and economic development.
“I would like to see staff work hard to get that number down to five per cent,” added Palm, who made an amendment to Isakson’s motion for five per cent.
Councillor Rob Southcott asked how much money one per cent of city taxation represents. Denniston said one per cent of city taxation is $272,000.
Councillor Cindy Elliott said a five per cent tax increase would significantly impact services, but it might be good to see what those are so councillors could pick and choose. She said it is her understanding that the bulk of the cuts to services will have to be done in discretionary areas and will impact labour. Many of those options would have to be dealt with in camera, she added.
Denniston said when staff digs into the figures, there would likely be public and in camera reports for councillors.
Councillor and committee chair George Doubt said he was in favour of Palm’s amendment.
“I hear people saying they want significant reductions in their expected taxes,” said Doubt. “My feeling is that if we are going to reduce the tax increase to five per cent, we will be looking at significant changes in service. I’m willing to support this because we need to be upfront with the population of the community, and say if we want a five per cent increase, this is what it is going to cost in terms of services.”
Southcott said he would be more in favour of supporting the motion with the removal of the reference to three options, and rather, have it for staff to bring back options, rather than a specific number.
“This is a significantly increased challenge, going from eight to five per cent,” said Southcott. “I would like to give staff the greatest possible freedom to do that.”
Councillors unanimously carried the amendment for staff to investigate a five per cent tax increase in the 2025 five-year financial plan, with staff to present three options.
Southcott then made an amendment to remove the reference to staff bringing back three options. The amendment carried unanimously.
Isakson moved an amendment to the motion, with the addition of the words at the end: with an attempt to protect transfers to reserves, and minimize impacts to youth and low-income individuals. The amendment failed.
Council then unanimously carried the main motion, which is for staff to prepare options for reducing the proposed property tax levy increase to five per cent for draft two of the 2025 to 2029 financial plan bylaw budget deliberations.
Draft two of the 2025 five-year financial plan will be brought back early in the new year. Between now and then, there will be online engagement with a financial plan survey, and in-person engagement with an open house.
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