Five months after City of Powell River’s 2018 draft budget was brought before city council, as of March 22, the 2018 financial plan is balanced.
The 2018 city budget is $26 million and has been moved forward by the finance committee for approval by council.
“We’re very confident as a finance department that 2018 is in very good order,” said interim chief financial officer Debra Oakman, who finalized the budget in two months after taking over from former CFO Kathleen Day.
Appearing before the committee, Oakman reported property taxes would increase two per cent to accomplish 2018’s balancing act.
The two per cent hike, based on cost-of-living increases, was a firm commitment finance committee chair Russell Brewer made at the beginning of budget discussions in November 2017.
The city will also be dipping into reserves to the balance the books.
After analysing and refining the numbers, an estimated shortfall of $122,000 remains.
“Our recommendation is the financial plan be amended to fund ongoing 2018 core changes by reducing harbour operations’ reserve contribution,” said Oakman.
The plan is to reduce the shortfall by taking $89,000 from the harbour reserve and the $33,000 left would come from other general reserves.
The initial draft budget had shown a funding shortfall for capital and operations of $637,000. In January 2018, that was reduced with the deletion of a capital project and further reduced in February 2018 with confirmation of eligible Union of BC Municipalities Community Works Grant capital and operations projects funding.
The 2019 financial plan has been developed based on known contract commitments and a 1.5 per cent tax increase.
“2019 is in good order but it doesn’t have the same kind of in-depth analysis that was done for 2018,” said Oakman. “2020, 2021 and 2022 are based on an estimate.”
