When Powell River mayor Ron Woznow advocated the termination of the Zunga Bus service (as reported by the Peak on August 7), he characterized the service as “a program with limited benefits to members of the community” and went on to say that “it has a substantial negative impact on taxes.” He also said that “it’s not an unrealistic expectation that the worst-case scenario would have tax increases in 20 or more per cent for next year.”
In raising the spectre of staggering tax increases, the mayor shines a bright light on the structural fiscal problem caused by the closure of the mill and imminent disappearance of the only significant major industry tax payer in the municipality.
The mill property provides approximately 15 per cent of the city’s revenue and surely Paper Excellence will stop paying taxes on the mill site as soon as legally possible.
While there has been some important discussion of repurposing the mill site for a variety of different enterprises, none of them have materialized yet and it is entirely possible that the site will never again provide the scale of revenue it did when the mill was operational.
A tax increase of 20 percent or more would be an enormous blow to local taxpayers, especially in light of the so-called affordability crisis spiralling ever onward.
A small deindustrialized town with a bitterly divided local council does not have a lot of choices for how to deal with the scope and scale of what we face. Happily, there is an obvious – and sustainable – solution to the city’s revenue problem: Powell River Community Forest (PRCF).
As stated on the PRCF website, “Powell River Community Forest is an independent corporation set up by City of Powell River. It holds the CFA on behalf of the entire community. We are a for-profit forest company, however, what sets us apart is that 100 per cent of profits are returned to community.”
In recent years, PRCF has earned between $2.5 million and $3 million. Serendipitously, that is almost exactly what Paper Excellence has been paying in property taxes.
As the sole owner of PRCF, the city could rewrite PRCF’s bylaws and direct some or all of the revenue it earns to the critical dual priority of limiting tax increases to less than 10 per cent per year while maintaining services for local citizens.
Many of PRCF’s current grant recipients serve very few people and while it would be difficult for those organizations to replace PRCF funding, they would certainly find a way if their members and supporters wish for them to continue serving the community.
Governing, at all levels, is about making hard choices and that is certainly the case in Powell River. Kicking the can down the road on the city’s grave revenue challenges or massively increasing taxes on an already stressed local populace would reflect a lack of leadership and wisdom.
We are a bit more than two years away from the next municipal election in October 2026. Members of council considering running for re-election should clearly state their views on the best use – for the whole community – of PRCF revenue in light of the fiscal crisis precipitated by the mill closure. And all those considering running for council in the upcoming election should also make their views known.
PRCF offers the best path forward for holding the line on taxes and maintaining city services. As you think about the challenges we collectively face and the potential for PRCF to resolve some of them – don’t be shy: share your thoughts with the mayor and council.
John Young is a resident of Wildwood.
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