City of Powell River council approved an increase to the 2012 legal budget at a recent council meeting.
The motion increases the budget by $115,000, for a total budget of $315,000, with the additional funds to come from the 2012 general operating surplus.
In making the motion, Councillor Chris McNaughton said there had been a number of extraordinary costs associated with the budget. They included the agreement in principle with Catalyst Paper Corporation, the acquisition of lands and the relocation of the barge facility, which has “pushed the legal budget higher this year, which is extraordinary,” he said. “I would anticipate that next year will see a much reduced budget.”
The 2012 legal budget was originally $200,000. According to a report from Dave Douglas, director of financial services, as of the middle of September, the city had spent $214,868.
Mac Fraser, chief administrative officer, has provided a breakdown of some of the legal expenditures, totalling $104,349:
• Freda Creek, $39,052.23
• Agreement in principle and term sheet with Catalyst: $42,663.59.
• Catalyst subdivision: $15,637.80.
• Catalyst in regards to Companies’ Creditors Arrangement Act: $6,996.06.
In 2012, council made a number of service and staff level reductions in order not to increase taxes for operations. It did increase taxes by 3.8 per cent in order to realize $378,147 for asset management. The additional funds needed for the legal budget will be taken from that amount.
The Peak has requested a complete breakdown of all the legal expenditures to date, but so far, the city has not complied with that request.
