City of Powell River’s finance committee is recommending spending less than $500 to assist with legal proceedings that have more than $17,000 worth of city taxation in the balance.
At the June 25 finance committee meeting, council reviewed a request from the District of North Saanich to contribute toward legal costs pertaining to airport control towers.
Shehzad Somji, the city’s chief financial officer, said the letter from North Saanich indicated that NAV Canada had appealed the property assessments of four of its control towers in BC, including the one in Powell River. Somji said North Saanich is asking for a contribution toward its legal costs. The district has spent more than $100,000 in legal costs defending the taxation case.
Somji said there is one NAV Canada property in Powell River and the total potential risk to the city if NAV Canada wins its appeal is about $17,000 in property taxes for the tax years of 2011 to 2015.
He said that as a percentage of NAV Canada’s total assessment of $35 million in BC, the assessment for NAV Canada’s Powell River property this year is roughly half a per cent, at $172,000. If Powell River based its contribution on that percentage, it would be a $500-contribution to North Saanich’s $100,000-legal cost so far.
Mayor Dave Formosa asked if North Saanich was asking for a contribution based on a percentage.
Somji said North Saanich indicated that if Powell River wanted to participate the city could do so. He was unsure what the all-up legal cost to North Saanich would be after the NAV Canada appeal.
“I feel bad not helping [North Saanich] so I would like to send them a letter saying based on assessment, here’s a cheque for $500 on behalf of the City of Powell River,” said Formosa. “I know it’s a small amount but I would like to recommend that.”
The committee passed a motion to send a recommendation to council to make the expenditure.
