Proponents for the purchase of Millennium Park’s trees have avoided going out on a limb to finance the agreement because the funds are now in place.
At the City of Powell River Council meeting, Thursday, November 20, Shehzad Somji, city chief financial officer, outlined the financial formula for the purchase, with payments to be spread over two years.
Somji recounted that the purchase agreement for the trees in Millennium Park from Island Timberlands amounts to $1.125 million, plus GST. He told council a report that he’d prepared for them speaks to financing the purchase.
“We haven’t actually come to finalize the agreement yet with Island Timberlands,” he said. “Right now we are waiting for them to review. I was hoping to get it back for today’s meeting, but at the December 18 council meeting, the agreement will come back with the financing in place and knowing where the money is going to come from.”
Somji said Powell River Community Forest Society held a board meeting on Tuesday, November 18, and the board resolved to fund the whole purchase amount.
“However, there is not enough money in the account today,” Somji said. “They need 50 per cent of the purchase, which will be part of the requirement.”
Somji said the community forest reserve fund has about $298,000 in it. He added that the city has $160,000 in the parkland reserve account, which is money that can only be used for the preservation of parkland.
“The preservation of the trees in the park qualifies for these funds to be used for purchase,” he said.
The balance of $131,000 would come from the city’s general operating fund surplus until spring of 2015, at which point the city will receive funding from the community forest dividend. The general surplus account would be repaid at that time.
“We are also suggesting that the $160,000 that comes from parkland reserve not be paid back, which would allow the community forest to use their dividend toward other community or city projects,” Somji said.
Council passed Somji’s recommendation that $298,086 be allocated from the Powell River Community Forest Reserve, $160,608 from the parkland reserve and $131,931 from the general operation fund surplus to complete the first payment of $590,625, representing 50 per cent of the Millennium Park tree purchase from Island Timberlands.
