Skip to content

City provides long-term tourism financing

Service agreement will help keep organization operating

City of Powell River Council has revisited an expired agreement with Tourism Powell River and endorsed a fixed-cost five-year commitment.

At the Thursday, November 6, council meeting, Shehzad Somji, chief financial officer, reviewed the city’s funding for the tourism organization.

“The city has entered into service agreements with Tourism Powell River for a number of years, the most recent for a three-year term that expired December 31, 2013,” Somji said. There has been budget approval to provide Tourism Powell River $145,000 this year for operating costs, however, no agreement was put in place.

“In the past you have done three-year agreements,” Somji said. “Based on the fact that you have approved a five-year financial plan, we have taken the liberty of doing a five-year agreement with Tourism Powell River for $145,000 per year.

“We have given them $145,000 this year so we are asking you to approve the agreement after the fact, but going forward, the agreement will be in place. They will get their fixed funding and they can move on with how they maintain their operation.”

Councillor Maggie Hathaway, who has represented the city on the tourism board, said it has recently come to light that the tourism group’s bylaws state that if somebody outside the organization wants to attend a meeting, they have to make an application and outline why they are going to be there.

“To me that’s just clearly wrong,” she said. “They have agreed to change their bylaws but that is going to take some time and it will be at the next annual general meeting.

“I’m wondering if we can add into the agreement something that says the meetings shall be open to the public unless it needs to be an in camera item.”

Mac Fraser, the city’s chief administrative officer, said the condition can’t be pinned to the financial agreement.

“We can expect that organizations funded by the city are open, transparent and accountable,” he said. “I’m sure the chair and the executive director will do as you’ve said. I will make sure if they don’t, you will know.”

Mayor Dave Formosa said tourism is facing funding cutbacks from senior levels of government. He said a member of Vancouver, Coast and Mountains Tourism Region, of which Powell River is a part, came here to explain reductions in funding and ways to mitigate it. Investment is shifting toward technology, he said, such as providing online feedback about visitor experiences.

He suggested one potential future funding source for qualifying projects might be Powell River Community Forest.

Hathaway said work is still being carried out on introducing a two per cent hotel tax that would be an additional revenue source for Powell River Tourism.

“The other thing is that tourism now falls under the gas tax so they will be coming with an ask in the near future,” she said.

The motion to provide Tourism Powell River with $145,000 annual for a five-year term carried unanimously.

In a written report to council, Somji said the Tourism Powell River is dependent upon funding from the city and operations would not be able to continue without city support. Past agreements have been tied to the BC Consumer Price Index and increases in funding have been applied accordingly. For the 2014 to 2018 financial plan, council has mandated to cap city expenditures, so payment of $145,000 without increases for each of the five years is consistent with this mandate.