City of Powell River staff are recommending that council increase the 2011 legal budget by $50,000.
Dave Douglas, director of financial services, explained the recommendation to councillors at the August 18 committee-of-the-whole meeting. “We have expended the legal budget for 2011 at this point,” he said. “Because we can’t go back and rebudget and look to increase taxation, we must find the funds for an estimated increase through our operating funds.”
Douglas estimated that the legal budget has to be increased by $50,000. He reported that there is $10,000 in the legal reserve account. He recommended that amount be transferred to the legal budget and that all departments contribute $5,000 to the legal budget by reducing their budgets by $5,000.
Douglas recommended the following operating accounts contribute $5,000 each: administration/bylaws; mayor and council; human resources; finance; engineering/development services; public works; emergency services, fire; and parks, recreation and culture. The contributions total $40,000.
In his report, Douglas wrote that the city had budgeted $90,000 for legal expenses for 2011. As of early June, the city had spent $80,692 and currently it has over $12,000 in legal invoices that require payment.
When asked why legal expenses were more than the amount budgeted, Douglas said, “We’ve had some unexpected legal expenses.”
City council is expected to vote on the recommendation at the September 15 council meeting.
