qathet Regional District’s (qRD) finance committee is recommending the board of directors approve a loan authorization bylaw for the resource-recovery centre. This would call for borrowing of $5.5 million to complete the project.
At the July 15 finance committee meeting, directors were asked to consider a bylaw to borrow for a portion of the development and construction of the resource-recovery centre, to be located at the old waste transfer site near Willingdon Beach in Powell River.
Electoral Area D director Sandy McCormick said this is a significant loan and she was wondering what the tax implications are.
Manager of financial services Linda Greenan said the loan payments are included in the financial plan that has already been adopted.
Electoral Area B director Mark Gisborne said he was a little concerned about spending this kind of money on land the regional district does not own.
“It’s something we should continue to think about and possibly explore in the future,” said Gisborne.
According to a staff report authored by Greenan, the 2020 to 2024 qRD financial plan includes a capital project for the closure of the former Marine Avenue incinerator and landfill site and development of a resource-recovery centre and waste transfer station. Greenan stated that qRD has received a $6 million strategic priorities fund grant for the project.
“The balance of the project is to be funded through the waste management reserves and borrowing,” stated Greenan.
In her report, Greenan stated the cost to close the Marine Avenue former incinerator/waste transfer site and develop it into a resource-recovery centre inclusive of a waste transfer station is estimated to be in the range of $12,200,000. With the $6 million grant received, and $1,012,435 in the waste management reserves, there is a funding shortfall of $5,189,565.
“It is recommended that the bylaw provide for borrowing up to $5.5 million, which incorporates a modest three per cent contingency in case it is required,” stated Greenan.
She stated that the qRD solid waste management plan has been approved by the minister of environment and climate change strategy under the Environmental Management Act and the borrowing authority to implement the waste management plan does not require further approval of the electors. However, the bylaw will need to be approved by the inspector of municipalities before it can be adopted.
The bylaw calls for a 30-year borrowing term.
