City of Powell River budget’s shortfall, previously announced as $1 million, is now at $1.2 million, but the city’s surplus funds should top $2 million by the end of 2015 and taxes will remain stable, according to city staff.
Shehzad Somji, outgoing chief financial officer, presented his budget update to council at a special finance committee meeting on Tuesday, November 2.
Despite the shortfall, the city will add close to $1 million to its existing surplus funds by the end of 2015. Of that, $750,000 comes from the sale of timber harvested on city-owned airport reserve lands near Black Point and the remainder from departmental surpluses, he said. That brings the total to $2.25 million in surplus, which is above the city’s reserve funds already in holding.
Mac Fraser, city chief administrative officer, told the committee he has watched the surplus grow from $300,000 three years ago when he started working for the city.
“It’s a good trend,” he said, ”though we don’t set out to increase the surplus. Things have been managed well.”
Somji presented a number of scenarios at the November 2 meeting for how council could fund the $1.2 million budget shortfall with tax increases and dipping into the city’s surplus. Council indicated at the meeting that its preference would be to not increase taxes.
Despite that, taxes will increase slightly by 1.375 per cent next year to bring in the $173,000 needed to service the library debt.
This most recent version of the operating budget includes an additional $220,000 being put to the city equipment reserves fund, bringing it from $1 million to just over $1.2 million.
In October, Somji had not included the additional funds, but in the most recent version it was brought back to its full complement, he said.
Above and beyond the shortfall, there will be higher operational costs due to increases in the city’s WorkSafeBC premium, other short- and long-term disability insurance increases for staff, and higher operating costs in the new, larger facility for the public library.
A large percentage of the $1.2 million comes from one-time costs for the city’s protective services, said Somji.
Council has also decided to increase its grants-in-aid budgeted amounts to match the reality of how much help is being provided. The grants will increase to $75,000 in the budget from $40,000.
Since the city began tracking all assistance it provides this year, it is estimated that it has provided close to $90,000 of in-kind donations in 2015, mostly through room rentals at Powell River Recreation Complex.
Open houses being organized for the end of November and early December will give residents the opportunity to take a closer look at the operational budget and ask questions.
