Budgetary preparations are creating interest for Powell River Regional District.
At its recent rural services committee meeting Linda Greenan, manager of financial services, said she was presenting directors a first draft financial plan for rural services from 2015 to 2019. She said there are many questions and the regional district will not know the actual figures until the end of 2014.
“What I’ve tried to do in this financial plan is project where we will be at at the end of 2014,” Greenan said. “Unless anything major happens, it should be close.”
Greenan said what was being assumed in the financial plan was a three per cent inflation factor. It has been added into most of the regular costs. A 1.7 per cent interest rate has been projected as a return on reserves.
Any lease rates have been budgeted at a two per cent increase.
Tax estimates are all based on the 2014 revised assessment roll values, according to Greenan. “We don’t yet have the 2015 completed,” she said. “We do that at the end of December and we’ll have the revised roll at the end of March. The actual tax rates will be based on the revised roll.”
The 2015 capital expenditure plan for rural services shows an overall outlay of $544,097 for: emergency services in Electoral Area D, $2,500; Lasqueti Island waste management, $4,410; Northside recreation, $42,000; the four volunteer fire departments, $184,187; Myrtle Point water, $42,000; Lund Sewer, $150,000; Texada Island Health Centre, $86,310; and Texada Island Recreation Commission, $3,000.
The Myrtle Pond water system generated some discussion. Greenan said this service includes an increase of an average $38 per household from 2014, which would bring the average annual residential user fee to $455 per year in 2015. She said because of the small number of users on the system, there would not be sufficient funding for a reserve fund contribution in 2015. She said this will need to be built for the next round of upgrades.
“If we wanted to adequately fund the approximately $43,000 to operate that service,” she said, “if we wanted to fund from user fees based on the number of users we have now, the annual user fee would have to increase approximately $600 per year. That would leave parcel tax available to put away for asset management and non-statutory reserves. That’s something I’d like to work toward.”
Greenan said the $455 figure would just cover operating costs this year and would provide no money for reserves. User fees for 2015 are $36,309.
Colin Palmer, Electoral Area C director, said he wanted to know how much money Community Works has put into the Myrtle Pond system. Greenan said in 2013, nearly $255,000 was invested, and more money was put in during 2014.
“I seem to remember putting in money way back,” Palmer said.
Greenan said $95,000 had been spent on metering, plus $158,000 for an upgrade. In 2014, there was also a grant, and with the amendment, it totaled nearly $194,000. “So yes, it’s getting close to $500,000,” she said.
Greenan will have more budgetary information for directors in January.
