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qathet Regional District’s (qRD) finance committee has accepted the second draft of the 2024 to 2028 financial plan, which spells out how the regional district’s finances will be collected and expended. Tax increases for 2024 are in the double digits.
At the January 10 finance committee meeting, qRD manager of financial services Linda Greenan led directors through a series of slides, outlining various components of the financial plan.
Greenan first outlined capital plans, which, she said, have changed slightly since the first draft of the budget, with some refinements having taken place.
The regional plan, which includes City of Powell River, shows an expenditure of $4.23 million, including completion of the resource-recovery centre and transfer station, the replacement of a dump truck, and projects at Shelter Point Regional Park and Powell River Regional Cemetery in Cranberry.
For electoral areas, the plan is for a $4.6 million expenditure, including the northside recreation centre upgrading and expansion, which is 73 per cent grant funded, fire engine replacements on Savary Island and for Northside Volunteer Fire Department, improvements for Lasqueti Island’s fire department, plus Myrtle Pond water line upgrades, Lund sewer upgrades and tennis court resurfacing in Gillies Bay on Texada Island.
In 2024, the biggest requisition change is for waste management, which has a $1.27 million increase, for the resource-recovery centre and transfer station. This includes debt payment of $585,000, staff wage and benefits for the new facility of $370,000, and a net increase for waste, recycling and organics of $325,000, based on estimated contracts.
Residential requisition
In terms of residential tax rates, the change in requisition for City of Powell River is $1,041,934, which is a 36.06 per cent change from 2023. The tax rate per $100,000 of property assessed value has gone from $61.69 in 2023 to $83.94 in 2024, for a tax change per $100,000 of $22.25.
Tax rate per $100,000 in Electoral Area A is forecast to be $307.03, for Area B, $201.92, Area C, $109.47, and Area D, $213,34.
Using the 2023 average home value of $607,465.81, Greenan said the regional district now has the 2024 completed roll values from BC Assessment, but she hasn’t incorporated them into the draft two financial plan calculations.
qRD tax cost per average home in the city in 2024 is forecast at $508.92, which is an increase of $135.15 from 2023. Cost per average home in Area A is $1,865.07, which is an increase of $221.15, in Area B, it is $1,182, for an increase of $200.94, in Area C it is $1,272.47, for an increase of $200.27, and in Area D, it is $1.767.06, for an increase of $192.10.
Greenan said the final draft of the budget will be presented on February 7, and plans are for adoption of the bylaw on February 28.
City director Cindy Elliott said there was a need to do a good job of explaining to the public the huge increase in waste management.
“I understand we are paying down debt and that is the bulk of why it has gone up so much,” said Elliott. “We have built a facility and now we have to pay for it.”
Elliott said wages for qRD staff who will be working at the resource-recovery centre also contributes to the increase.
Staffing situation
Regional district manager of asset management and strategic initiatives Arnold Schwabe said added positions at the centre will include a manager for the whole operation, a diversion specialist and two scale attendants.
Manager of environmental services Jason Kouwenhoven said one of the big changes is going from a program where contractors were paid to do the bulk of the work, to paying staff to do this work.
Electoral Area B director Mark Gisborne said he has been fielding a tonne of questions about solid waste management.
“It’s hard to give people a clear answer because we are going on the solid waste management plan, which I believe was adopted in 2016,” said Gisborne. “It’s a big jump in taxation. People are asking me questions about this new level of service that we’re getting, and is it worth that much?
“My answer is this is the result of a decision made years ago. When you spend money to build a car and you see the cost of the paint, it’s too late to say no at this point. There needs to be some increased communication and clarification as to what the increased level of service is for our solid waste. I’m frustrated.”
Electoral Area A director Jason Lennox said he noted the city’s increase in requisition was in the order of 36 per cent and the electoral areas were in the high teens. He asked if that was directly related to the resource-recovery centre.
Greenan said most of that was indeed the centre, with some being increased in the general administration budget.
Zero correspondence
City director George Doubt said when looking at the tax increase percentages, they are scary, because they have a way of being misinterpreted. He said when looking at a 36.6 per cent tax increase for residents of the city, who are residents of the regional district, “that’s an incredible amount.”
He said, however, he has not received a single piece of correspondence from anyone in the regional district who says it is too much and they were surprised.
“That surprises me, frankly,” said Doubt. “I look forward to having detailed information to provide to people at city council and to residents exactly what the services are going to be in the resource-recovery centre and how it is going to be operated. That is something we are going to have to talk about, such as our environmental impact and all those things.”
Schwabe said a lot of changes are the result of the province stepping in.
“It’s going to take more manpower; it’s going to take more time and resources,” said Schwabe. “Our costs are going up but they are not as a result of us wanting to increase the cost. They are the result of us responding to mandates from the province.”
Doubt put forward a motion for the committee to request that staff examine the five-year financial plan draft two with an attempt to find any possible cost savings that can reduce the overall taxation in a fair manner. The motion carried.
The committee then accepted draft two of the proposed 2024 to 2028 financial plan.
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