City of Powell River looks at utility increases

Costs for operating City of Powell River’s utilities are all on the increase in 2017, but so too is its tax base, according to city officials.

City of Powell River finance committee met for its first meeting of the year on Thursday, January 12.

City chief financial officer Kathleen Day and director of infrastructure Tor Birtig took the committee through early findings from staff developing the 2017 municipal operating budget.

City garbage collection is one area all municipal taxpayers have contributed toward, but only residential owners have been able to access, said Day.

Birtig told the committee his department is looking at a rate increase to make up for the lost tax revenue of transitioning to a true user-pay system.

Birtig said there could be another increase next year as the city looks at doing away with the current tag system for paying for trash. Trash tags brought in $182,000 to the city in 2016.

Staff is also recommending council approve increases of two per cent each for water and sewer. An increase in the utilities would hike the rate for water by $6.15, and $9.10 for sewers, per unit.

Birtig said additional operating costs are, in part, for salary increases from the city’s negotiated contract with its CUPE employees and general increases.

Mayor Dave Formosa reminded the committee that 2017 is the first year of planned two per cent salary increases for the city’s unionized workers. He said compared to other cities with CUPE workers, Powell River has fared well.

“We’ve done very well with our great CUPE workers, understanding the financial pressures of this community that has left the industrial revolution and is trying to reinvent itself,” said Formosa. “They’ve worked with us well and we’re thankful for that.”

The most recent national census of population numbers has yet to be released, but the city is looking at single-digit growth and an increase in the residential tax base.

City chief administrative officer Mac Fraser told the committee the city is looking at a 3.4 per cent increase that will result in an additional $277,000 in property taxes in 2017.

“It’s been a while since we’ve seen growth like this,” said Fraser.

Based on early estimates, if the city raises taxes by one per cent, it will result in an approximate increase of $131,000 in tax revenue.

The city will continue its budget development with the next finance committee meeting scheduled for Thursday, January 26.