Capital borrowing plan
Details obtained from the City of Powell River through a freedom of information request revealed that the city’s debt at December 31, 2005, was $5,926,000 and that by October 12, 2011, the debt had increased to $10,569,846 [“Proposed 2012 budget reduces services and staff,” April 25].
This doubling of the city’s indebtedness can be primarily attributed to the city council’s authorization of short-term borrowing for various capital projects without providing the city’s residents the opportunity to vote on the questions.
Council also chose to significantly reduce the tax burden of Catalyst Paper Corporation and transferred that tax load to the city’s residents.
This action by council has, between the years 2005 to 2010, reduced the industrial taxes paid by Catalyst, as a percentage of the total tax paid by all classes, 57 per cent while increasing the residential property tax, as a percentage of total tax paid by all classes, a whopping 41 per cent.
Not surprisingly, the city has determined that it is projecting a budget shortfall of approximately $620,000 and is planning to cover this shortfall through another residential tax increase, reduction of services and cost cutting.
While the industrial property taxes paid by Catalyst to the city have been reduced significantly, closure of the mill could result in an annual income loss to the city of $2,250,000. Many residents would be unable to shoulder the inevitable increased tax burden.
It is important that the residents of Powell River are involved in decision making at this difficult and unpredictable financial time.
It is time for council to stop authorizing borrowing for projects of a capital nature without first obtaining permission from the residents.
The Community Charter permits council to authorize short-term borrowing for any purpose of a capital nature without seeking the blessing of the residents, as long as the loan is for less than a five-year term. However, there is nothing preventing the city from choosing to seek permission from the residents for any capital borrowing.
To facilitate this, I propose that the city adopt a bylaw requiring residents’ assent for all future capital borrowing.
Gordon Crawford
Duncan Street
Library budget
It’s unbelievable that while City of Powell River council is taking measures to save money through cuts to services and staff, they increased the budget for the existing Powell River Public Library [“Proposed 2012 budget reduces services and staff,” April 25]. The budget for 2012 is now at $1,035,914.
In 2006, operating costs were $672,222. The budget shows another increase this year. The city’s share of capital expenses in 2012 is $17,455. The total for capital expenses in 2012 is $95,433, which includes $25,000 for book replacement and $70,433 for new library design, which is coming from a transfer from reserve.
The 2012 total expense was kept to an overall increase of 4.8 per cent by slashing a number of small accounts while increasing wages, benefits, utilities and supplies by 9.1 per cent.
Why are our operational expenses so high? As the proposed new library is over three times larger than the existing library, can we expect the operating budget for the new library to be, say, one to two times larger at $2 million?
Even if the new building costs are covered by grants and donations, we, the taxpayers, will be paying for a huge budget and operating expenses.
Over 4,500 residents are protesting. Keep pressure on the councillors. We must have a say when it comes to our tax dollars.
Gaye Culos
Marine Avenue
Setting facts straight
Celebrating 100 years of papermaking marks a great achievement for BC’s oldest existing paper mill [“Lasting legacy,” April 11]. However, the title for the first paper mill in BC belongs to Port Alberni as its first paper mill was built in 1894. However, it only survived until 1896. This fact can be checked online.
Geoff Gowans
Fernwood Avenue
