After three hours of deliberation, City of Powell River councillors arrived at a recommendation for allocations from the Powell River Community Forest reserve for spring 2025 community projects.
At the June 3 committee of the whole meeting, councillors heard a delegation from community forest president Greg Hemphill, recommending $1,223,540.09 in expenditures for 17 projects throughout the community for the spring 2025 grants, to be approved by city council from the community forest reserve fund.
Hemphill said the bylaw states that before any money is used from the fund, the city will seek input from the community forest board.
He said positive news was the amount of money available in the fund. The community forest had a record 2023 dividend of more than $6 million, and held considerable money in reserve to balance a smaller dividend in 2024.
“Starting 2025, there was $2.8 million available for grants in the fund, plus money returned from projects completed, under budget,” said Hemphill. “There were large amounts of interest from available money. Interest alone will cover most of the recommended grants. That’s good news.
“There’s more than enough money for spring and fall 2025 grants. Grant money is available to cover the next couple of years of eligible grant projects. There will still be a large surplus available that will carry forward to 2026.”
Interim chief administrative officer Mark Brown said the community forest grant application list totalled a little more than $1.2 million, however, only $425,314 was budgeted to be awarded in the 2025 to 2029 financial plan. He said the grant shortfall is nearly $800,000, which is above the approved budgeted amount.
Chief financial officer Mallory Denniston, in speaking to the committee, indicated that city council had approved, in the 2025 financial plan, the $425,314 allocation to the community forest reserve fund, which would result in a zero per cent tax increase in 2026.
She said the community forest reserve has substantial funds, but the city does not have free money to give away.
“If the city wanted to increase property taxes further, it could give away more money in the community forest reserve fund,” said Denniston. “There is a tax implication.”
She said not enough has been saved for city infrastructure over the last decade. She said the community forest is 100 per cent owned by the city, and there is not enough money in the community forest reserve for the capital needs identified in the city’s asset management plan.
Council asked a number of questions and came up with four funding motions that were defeated. Finally, councillors unanimously endorsed a motion that the committee recommend to council that the grants be approved from the community forest reserve fund for up to $748,494.09.
Denniston, after the committee meeting, provided figures that indicate the $1.2 million proposed by the community forest would result in a three per cent tax increase in 2026, or an increase of $85 for an average single-family dwelling.
According to Denniston, the final figure that council arrived at would result in a 1.2 per cent tax increase in 2026, or $34 for an average single-family dwelling, if adopted by city council.
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