City of Powell River Council will consider a recommendation to commit up to $3.5 million toward a new library.
At the city’s committee of the whole meeting Thursday, June 19, Shehzad Somji, chief financial officer, highlighted findings from a feasibility study report from 2013. The research was conducted by Pharos Fundraising Strategy + Communication and provided suggestions about how the library could be funded, Somji said.
“One of the recommendations was for local government to contribute up to $3.5 million toward this project,” he said.
Pharos’ findings indicate that support for a new library is “very robust,” with 69.1 per cent of those surveyed willing to accept some increase in taxation. Somji added that 33.3 per cent would accept a tax increase of less than $20.
With a tax increase of this magnitude to all classes except major industry, local government could provide $3.5 million, according to the report.
“Whether or not we want to do that is the final decision of council,” Somji said. “What we are looking for is whether we have the support to look at alternatives for funding for this project and whether it be through taxation or other avenues.” One of the options in the Pharos report was using funds from the Powell River Community Forest.
“Right now, all reasonable funding opportunities need to be identified and assessed before a final recommendation can be made to council,” Somji said.
Options include council agreeing to commit up to $3.5 million and directing staff to investigate various funding options. Council not agreeing to commit up to $3.5 million is another scenario.
Councillor Debbie Dee said city council has always said the project would not go ahead unless there was a cost-sharing agreement with the provincial and federal governments.
Dee said she hopes the community can understand that borrowing $3.5 million for an investment in the community is going to cost the average homeowner a little less than $19 a year. “For a facility like that has the potential to invigorate and attract, I think it’s a good price to pay.”
Mayor Dave Formosa said council was anticipating the regional district would come up with a contribution, but if it doesn’t, he’s not averse to saying the city is prepared to spend up to $3.5 million as a local government.
The issue then becomes location and what to build, so that council can begin searching for other funding, if needed, Formosa said.
His feeling is that finances are going to be “really tight” for the next 10 years.
“We are going to be looking for monies for the library, for a fire hall, for liquid waste management and for the mainline going into Haslam Lake that is crucial.”
Dee said if the four projects outlined by the mayor were $9 million apiece, with one-third funding on each of them, it would be less than $100 per year for the average home to pay for these projects through taxation.
“I think we need to start the dialogue on all these things,” she said. “I would be willing to say let’s take this to council.”
Councillor Jim Palm said taxpayers who say they cannot afford more taxation approach him regularly.
“Unless we find a way to find what we need on the economic development front to bring young families, decent-paying jobs and revitalize this community, we are up against it,” Palm said.
Matching money from other governments could be tight in the foreseeable future. Mac Fraser, chief administrative officer for the city, said at a recent conference he attended that the entire pool available for matching grants over the next five years is $142 million. This will be spread over 157 local governments in BC. He said, with a “certain amount of pragmatism,” the odds for two-thirds external funding for all four projects is “hard to say,” because access to the pool will be highly competitive.
Formosa said a library is an important part of this community. He knows the current library is a
very busy place.
“We have to deal with it,” he said. “We can’t just say we can’t afford one. If we want to be a community, a city, we need a library.”
Formosa said the proposed borrowing is “up to $3.5 million.”
“It is our job to do the very best and bring it in for the best price possible in a location that works for everyone.”
Councillor Chris McNaughton said he is loathe to commit any funding without a referendum to get the public’s opinion on whether or not they want to spend the money on a new library.
“I think we need to determine where we are going to put the library and its cost before committing any money,” he said.
Councillor Myrna Leishman said she is saddened that council is no further ahead on the library issue than when she came aboard nearly three years ago.
