qathet Regional District (qRD) directors were brought up to date on the regional district’s financial status at the September 6 finance committee meeting.
Manager of financial services Linda Greenan told directors she did not have any concern with the interim financial statements, year-to-date.
Electoral Area E director and finance committee chair Andrew Fall pointed out that a report from Greenan to the regional board indicated that finances were in the range anticipated.
Electoral Area D director Sandy McCormick said the financial statements showed a $40,000 expenditure for Shelter Point Regional Park, with the statements showing a transfer from reserves. She asked about the expenditure.
Greenan said the $40,000 was for a new well for the Shelter Point park facility.
McCormick then asked about the Texada Island Marine Facilities.
“I see from this that we collect $77,384 from Texada taxpayers, but I also see in the expenditure column that we put $41,000 into reserves,” said McCormick. “$41,000 is more than half of the tax dollars collected, so I’m questioning whether that amount, going into the future, why we would need to put more than 50 per cent of the service’s budget into reserves, rather than bringing down the cost or the service.”
Greenan said money is put into reserves because expenses for repairs and maintenance are costly, so this way, it allows the regional district to have the money in reserve funds available for when it needs to make those repairs on an ongoing basis.
McCormick said more than 50 per cent of the overall budget seems excessive and she would like to know if the regional district could bring down the amount of that contribution, percentage-wise, to a more reasonable figure.
“That is really unnecessary,” said McCormick.
Chief administrative officer Al Radke said staff had taken note of McCormick’s question and going through the next budget deliberations, she will be provided the policies and procedures that have been used in the past.
“If there is a change needed, you can certainly do that at budget deliberations,” said Radke. “As a quick anecdote, I think we put that amount in based on trying to keep the requisition of the taxpayers consistent.”
McCormick said the facility had just undergone a major renovation, so hopefully, nothing major will happen.
Fall said for the coming budget, more clarity could come about why the level is where it is and it can then be adjusted or left where it is.
Electoral Area B director Mark Gisborne said his understanding of docks is that they have low operational costs but have very high capital costs for maintenance and repairs.
“That’s why such a large portion of the budget goes into reserves,” said Gisborne. “It might be every three or four years that you have to put a big expense in.”
Greenan said the regional district expects to have major repairs on the dock facilities every few years. She said in 2022, there was $259,000 in reserves and almost $200,000 of that was spent for repairs. She added that in 2024, there will be a major inspection and the regional district will find out if more repairs are needed. At that point, there will be $129,000 in the reserve, and $200,000 saved up by 2027.
“If we have a major repair between now and 2027, we wouldn’t have enough money to fund it,” said Greenan. “The regional district cannot borrow for repairs and maintenance. It can only borrow for capital purposes or for revenue anticipation. It could put us in a bind if we don’t have the funding available to make those repairs.”
The finance committee carried a motion to recommend the regional board accept, for information, the regional district’s interim financial statements to July 31.
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