qathet Regional District (qRD) directors have received their first look at the first five-year financial plan draft for 2021 to 2025.
At the December 16 finance committee meeting, manager of financial services Linda Greenan outlined the plan, which provides direction for operating and capital expenses.
Greenan said financial plan development starts in August. She said input comes from delegations to the regional board and through community engagement processes. Management puts its information in, based on the asset management plans, et cetera, according to Greenan, and the regional district receives input from advisory committees.
She said assumptions in the first draft of the plan are that there is a two to three per cent increase on most costs. According to Greenan, figures in the 2022 to 2025 plan are assuming two per cent annual increases.
In developing the plan, the regional district will continue to reduce reliance on prior year surplus, said Greenan.
New capital projects will be run through business cases. Greenan said they are for the board’s benefit to make educated decisions, based on guiding documents. The business cases assess each project based on the risk of not proceeding with the project and how it aligns with strategic priorities.
Greenan highlighted the 2021 capital plan, which, for the region is $12 million.
“The biggest part of the plan is the waste management site closure and resource-recovery centre of the former incinerator site at Marine Avenue, and also the waste transfer station for that site,” said Greenan.
The site closure and resource-recovery centre amounts to $8.1 million and the waste transfer station is $3.3 million. Greenan said for the waste transfer station the regional district has applied for a grant but it’s expected that qRD won’t know if it’s successful until this summer.
“Right now, it’s planned that we will be borrowing for the waste transfer station,” said Greenan.
In terms of regional parks, $136,500 is allocated for the Shelter Point Park covered gathering station, and $70,000 for a sani-dump at Haywire Bay.
In terms of the electoral areas capital plan, the big expenditure is at Northside Volunteer Fire Department’s Lund satellite hall, at $810,234, and a fire training centre, at $150,000. The total electoral areas capital budget is $1.1 million.
According to figures provided by Greenan, the 2021 tax requisition change averages out 2.9 per cent for City of Powell River, Savary Island and the five electoral districts.
“That means as far as tax changes, for residents in municipal boundaries, there is a tax change of $2.52 per $100,000 of assessed value,” said Greenan. “The largest increase is in Electoral Area B with a $9.48 increase per $100,000.”
According to a chart provided by Greenan, if the budget is approved, in the City of Powell River, the tax increase in 2021 will be 3.4 per cent, for the $2.52 per $100,000 of net taxable value. The tax rate in the city is scheduled to be $76.62 per $100,000 if the budget passes.
In Electoral Area A, the increase will be 2.69 per cent, for an increase of $5.97 per $100,000. The rate per $100,000 is scheduled to be $359.34.
On Savary Island, the increase is 2.8 per cent, for an increase of $5.47 per $100,000. This amounts to $200.72 per $100,000.
In Electoral Area B, the increase is 4.2 per cent, for an increase of $9.48 per $100,000. This amounts to $238.88 per $100,000.
In Electoral Area C, the increase is 3.83 per cent, for an increase of $9.05 per $100,000. This amounts to $247.77 per $100,000.
In Electoral Area D (Texada Island), the increase is 1.72 per cent, for an increase of $4.11 per $100,000. This amounts to $242.83 per $100,000.
In Electoral Area E (Lasqueti Island), the increase is 2.41 per cent, for an increase of $5.89 per $100,000. This amounts to $259.11 per $100,000.
According to information supplied by Greenan, draft two of the budget will be presented in January 2021, draft three will be presented in February and the budget will be adopted in March.
