.jpg;w=960)
qathet Regional District (qRD) directors were presented the second draft of the 2023 to 2027 financial plan, including highlights of expected taxation.
Manager of financial services Linda Greenan highlighted the second draft of the five-year plan at the December 7 finance committee meeting. She said the process begins with work plans, which are developed in order to support the regional board’s strategic plan, and to reflect accepted service levels.
Greenan said input is received through many different areas, mainly through the official community plan development processes and engagement processes, through advisory committees, and general public engagement activities. There are also studies and plans that guide the process, she added.
“Staff estimates specific service costs to operate services,” said Greenan. “Our budgets are zero-based, so rather than just looking at what we’ve done in the past, and applying a percentage increase, we look at our work plans and what it will take to operate each service.
“We develop specific cost estimates for the work plans, and for general costs, we apply a percentage increase.”
Greenan said many assumptions go into developing the financial plan. She said in terms of future borrowing, it has been increased to six per cent because the municipal finance authority rate is currently 4.67 per cent and there was another Bank of Canada interest rate increase on the day Greenan reported.
Proposed increases
She outlined the tax requisition for the 2023 budget, compared to the 2022 requisition. The biggest increase is for City of Powell River, with a proposed 11.74 per cent increase from 2022 to 2023. The tax rate per $100,000 for net taxable value is $70.47. For an average-priced house of $516,654.95, based on 2022 assessment, a city taxpayer will be paying $364.08 to the regional district.
In qRD Electoral Area A, the proposed increase is 7.32 per cent, with the average single-family dwelling being taxed $1,519.
In Electoral Area B, the proposed increase is 5.91 per cent, with the average home being taxed $990.73.
In Electoral Area C, the proposed increase is 5.70 per cent, with the average home being taxed $1,030.78.
In Electoral Area D (Texada Island), the proposed increase is 5.49 per cent, with the average home being taxed $1,088.61.
City director Cindy Elliott said she wanted more information on the waste management increase, asking if the increases were operational or for capital.
Greenan said the majority of the increase in the waste service is because there will be debt payments for the resource-recovery centre starting in 2023.
“We are estimating about $300,000 of debt interest in 2023,” said Greenan.
Area D director Sandy McCormick said she was concerned about the increase in the waste budget.
“In many ways it seems to be sucking things out of every other aspect of the budget,” said McCormick. “When I look at the annual requisition comparison for the areas and I see a 20 per cent increase in the waste management budget, that is very concerning. I always knew this day would come with this budget, and I have to say I have not been the biggest fan, although I admit it is a good project.
“It’s way too expensive and I’m really concerned about the impact, this year, particularly, on our budget and our taxpayers.”
McCormick asked if anything could be done to bring the tax burden down for this year.
Greenan said the regional district has applied for a grant for the waste-transfer station and it is expected that the status of that grant will be known in January.
“If that grant application is successful, that will help alleviate the borrowing,” said Greenan. “Other than that, it is really difficult with waste management. We are mandated to make these improvements through the ministry of environment. We’ve chosen the least expensive and best options for this project. We’re trying to do the best we can for the least dollars.”
Chair calls for more discussion
Area E director and finance committee chair Andrew Fall said it might be worthwhile for directors to have more in-depth discussion on the resource-recovery centre and the waste management service at the next finance committee meeting, because that’s the lion’s share of the total increase in this year’s budget.
City director George Doubt said he wants a detailed update on the resource-recovery centre, hopefully, at a public meeting, where what’s happening can be celebrated.
“We can be proud of what’s been done at the site already with limited funds,” said Doubt. “It would be good for ourselves and the community to get updated. It is the most significant change in our budget this year and next year.”
Doubt made a motion to direct staff to bring forward a presentation on the resource-recovery status, which carried.
The finance committee then carried a motion to accept the second draft of the five-year financial plan.
In question period, Greenan was asked about borrowing for the resource-recovery centre in 2023. Greenan replied that the borrowing had already been approved. She said in 2017, there was $5.5 million of borrowing approved and in 2021, a further $6.4 million was approved.
“We will just be acting on that borrowing,” added Greenan. “The amount budgeted in 2023 is $11.2 million of previously approved borrowing.”
