answers to David Ham's questions to PRRD

Please find below responses to your questions raised.  I want to first share with you a few factors to inform you of that affect our budgeting process. 

·         First, by statute the regional district must have a financial plan that is adopted annually, by bylaw, by March 31.  We must also adhere to a five (5) year financial planning period.  That period being the year in which the plan is specified to come into force and the following 4 years.  Therefore, we must input visions, concepts, etc. to keep them on the radar and on the horizon.  This is not only for best practices but also for public awareness and provincial audit control.  It is sound to do this so that if an opportune grant comes along, we can demonstrate that a concept was in our financial plan and not just pie in the sky at the time.  This is due diligence and appeases the province and any grant adjudicators.  So, although you may see projects in the extended plan, that does not necessarily imply that they will come to fruition.  Because if a concept is heavily weighted and dependent on receiving a grant or external financial assistance, it may never develop.

·         Secondly, by statute the regional district must use separate, discrete funds for different regional district services.  Because the funds are discrete, revenues and costs specific to one service cannot be arbitrarily shifted to or spread among other services.  Each regional district service has its own group of participating jurisdictions.  Participants in one service are not expected to subsidize, and are not permitted to be subsidized by, participants of other services.  Due to this complexity, staff are significantly tasked with arriving at the optimum crystal ball for budget spending.  Short funding a service can have serious negative consequences.  It could mean that a project gets halted in its tracks or that no more human resources can be invested in a service because the well has run dry.  Therefore, we do our utmost to budget practically and reasonably so that this does not occur.

·         Lastly, there is a list of typical records that can be produced by a local government.  Draft budgets fall under the category of Freedom of Information Request required.  Do not ask me why.  I can only surmise that it is because the draft budget is exactly that, a draft. 

I will now delve into your questions.  My responses are in red font. [in italics]

1/  The architectural blueprints,drawings, plans, site layouts and other information used to determine costs for:

     a/ Washing/hygiene facilities North Hall / $65,000 – still in a conceptual phase, we have not gone out for engineered design or estimates yet.

     b / Washroom and running water Free Store / $21,000 – this item was taken out of the budget as it would only have been a temporary remedy until the long-term plan for the free store is determined.

     c /Recycling center extension     Free Store? / $210,000 - there are no engineered designs yet, these numbers are for budgetary purposes only and to represent potential initiatives.  Further information will eventually be sourced from the Lasqueti Island Solid Waste Management Advisory Committee and the current numbers will then be adjusted up or down.  

  2/  Has the District informed the Owner of the Free Store/North Hall property in writing of all proposed plans involving development and use of the property? Such development shall be subject to prior approval as stated in Article 6.01(f) of the Lease between the Owner and the District. Article 6.01(g) is relevant in that the District must obtain the prior written approval before making any alterations. repairs, installations or improvements to the Land. 6.01(h) states the District shall not cut trees without written approval. Does the District have written approval?  - this is an area that the Lasqueti Island Solid Waste Management Advisory Committee will be addressing.  We will have to wait to see what evolves. 

  3/  Will there be consultation with Area E property tax payers and residents as to whether there is a want or a need for the expensive proposed facilities and extension? - the Lasqueti Island Solid Waste Management Advisory Committee was formed for that purpose.  They will perform the initial ground sourcing.  Depending on what their outcome or recommendation is will determine what additional public engagement, if any, is required.

  4/  What is the reasoning for proposing to construct a $65,000 washroom facility at North Hall in 2016 then a new $1.2 million fire hall in 2018? – to perform due diligence and be compliant with WorkSafe BC and Occupational Health & Safety.  Remember though, and I refer you to the first bullet above, one or both may never come to fruition.  One for sure requires a substantial grant to be sourced that we can apply for and get awarded. 

  5/  Were the soon to become ready JF Health Center facilities taken into account when the proposed new washrooms were considered? – yes, they have been considered.  We are exploring all options.

  6/  When the Board members and staff were on Lasqueti Is. last summer there was discussion about a new $1.2 mil.fire hall. There was overwhelming opposition expressed. Why is a new hall still being proposed for 2018? – once again, I refer you to the first bullet.  I believe it is quite evident that this concept and potential project is heavily dependent upon obtaining a grant.  Therefore, it may never reach fruition.  But we are prepared if a grant becomes available and we can display to the province our due diligence in proactive capital asset management. 

  7/ Other new expenses that contribute to the punitive %58 or $96.72/100k property tax increase proposed for 2016

   Linda Greenan wrote in an email to Director Leishman, then it was forwarded to me on Feb. 4, "some items can be moved forward to 2017 and financed rather than paid for all in one year". Since there has been no consultation on the washrooms and the extension, I propose that these projects be postponed to 2017 to allow for full consultation. I feel that the need and want of the community for these expensive projects need to be fully examined. My understanding is that projects that require the District to borrow for Area E require a referendum. If so.what is the cost to hold a referendum? – staff are doing everything feasible within their responsibility to mitigate taxing impacts.  Staff have proposed to delete the washroom at the recycling facility since it would only be a potential temporary fix.  Staff have proposed to borrow money for the 2016 generator purchase and delay the principal payments to start in 2018.  Staff have proposed to move the costs associated with assessing the costs to close or extend the landfill or to turn it into a transfer site to 2018.  Again, a lot more of this will become known as the Lasqueti Island Solid Waste Management Advisory Committee advances.

Thank you,

Al Radke, BSBA, CLGM
Chief Administrative Officer

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