[0:21] That was
[0:23] I'll keep it.
[0:59] 8:00.
[1:00] So, I to order this special council
[1:03] meeting of Thursday, May 17th.
[1:07] And we will start with the adoption of
[1:09] our agenda. I don't know if there's
[1:11] don't think there's any
[1:12] changes from the agenda.
[1:14] Nope, not seeing anything from staff.
[1:16] Councillor Wyatt.
[1:16] >> I'll move the agenda.
[1:19] » I'll move the agenda.
[1:19] >> Seconded by Councillor Southcott. Not
[1:21] » Seconded by Councillor Southcott. Not
[1:21] seeing any discussion, all in favor?
[1:24] That is unanimous.
[1:27] And I can get someone to do number three
[1:29] minutes.
[1:32] >> I move
[1:33] » I move
[1:33] I move that council move into a closed
[1:36] meeting to discuss matters covered by
[1:37] the community charter under Section 90
[1:40] 1A, personal information about an
[1:42] identifiable individual who holds or is
[1:44] being considered for a position as an
[1:46] officer, employee, or agent of the
[1:48] municipality or another position
[1:50] appointed by the municipality.
[1:53] Um
[1:54] Is that I or L?
[1:59] L.
[2:00] Discussions with municipal officers and
[2:03] employees respecting municipal
[2:04] objectives, measures, and progress
[2:06] reports for the purposes of preparing an
[2:09] annual report under section 98, annual
[2:11] municipal report.
[2:14] >> Moved by Councillor Southcott.
[2:16] » Moved by Councillor Southcott.
[2:16] All in favor.
[2:17] That is unanimous. We
[2:20] reconvene at 3:30 for the rest of the
[2:22] open agenda.
[5:49] » Mhm.
[30:49] » Good to go, Carson?
[30:51] Yep.
[30:52] All right, we will resume our special
[30:55] council meeting for Monday, sorry
[30:58] Monday, Thursday May the 14th.
[31:01] Uh the mayor is away with leave today.
[31:03] Councillor Isaacson is tuning in
[31:05] remotely. I'd like to acknowledge that
[31:07] we're holding these meetings on the
[31:08] traditional territory of the Tla'amin
[31:10] people.
[31:11] Who have stewarded this land for
[31:12] thousands of years.
[31:14] And we already had our agenda cleared
[31:16] up, so that moves us to our public input
[31:19] period.
[31:20] Um there's nobody in the gallery. Mr.
[31:22] Sercia, do we have anyone online for
[31:24] public input?
[31:26] All right, wonderful.
[31:27] That moves us to 7.1, the draft 2025
[31:31] financial statements and related
[31:32] results. We'll turn it over to the
[31:35] uh interim chief financial officer, Mr.
[31:37] Beauregard.
[31:39] >> Thank you, uh Acting Mayor. Um
[31:42] » Thank you, uh Acting Mayor. Um
[31:42] in terms of sequence, uh
[31:45] our auditor, Brian Zabor, is going to
[31:47] present us audit finding report first.
[31:50] And then, [snorts] um
[31:52] Ryan will give a brief uh PowerPoint
[31:54] presentation on the statements and the
[31:56] highlights of those statements.
[31:59] And then, we'll ask uh
[32:01] entertain questions and then ask council
[32:03] to consider the motion to approve the
[32:05] draft financial statements. So, I'll
[32:07] turn things over to Brian first.
[32:10] >> Uh thank you very much. I appreciate the
[32:12] » Uh thank you very much. I appreciate the
[32:12] opportunity to be here,
[32:15] kind of here, with you today, uh
[32:17] presenting the financial or the audit
[32:19] report on the financial statements.
[32:22] Um so, if you are following along in in
[32:25] your package, uh and if there's a
[32:27] presentation up on the uh the board,
[32:29] it's uh I'm starting on page four of our
[32:31] report.
[32:33] And uh on page four, it's uh starts with
[32:36] uh at a glance and it describes
[32:39] uh the materiality levels that were
[32:41] applied uh to the city's audit.
[32:44] Um the overall materiality level that's
[32:46] applied to capital activities remained
[32:49] at 4.3 million. The uh consolidated
[32:52] materiality with respect to operating
[32:54] activities remained at 1.3 million. And
[32:58] then the specific component materiality
[33:00] that applies to the individual entities
[33:03] um the city as an individual entity, the
[33:06] Powell River Forest Limited, and the
[33:08] Powell River Public Library was 1.251
[33:11] million. Now, those specific materiality
[33:14] levels that were applied to those audits
[33:17] specifically may and well and and may
[33:19] well have been and in fact for the
[33:21] library was definitely lower than that,
[33:23] but we set that as kind of the highest
[33:25] um amount that can be set for
[33:28] materiality level at the component
[33:30] level.
[33:32] Um for on page five, we provide a
[33:35] snapshot of the status of the audit. Uh
[33:37] the audit was uh complete uh the
[33:40] fieldwork was completed a couple of
[33:41] weeks ago. We finished off getting some
[33:43] questions answered and going through
[33:45] some uh some final matters with uh
[33:48] management, but we are complete now and
[33:51] uh subject to approval of the financial
[33:53] statements by council, we will be ready
[33:56] to issue the auditor's report. We have
[33:58] received the signed management
[34:00] representation letter and we did perform
[34:03] our subsequent events questions up to
[34:05] today's date, so we are ready to issue
[34:07] upon council's approval of the financial
[34:09] statements.
[34:12] Uh on page six
[34:14] we describe uh what we call group
[34:16] matters because uh there are two
[34:18] entities that are consolidated into the
[34:21] financial statements being the forestry
[34:23] company
[34:24] and uh the library. We do consider this
[34:26] to be a group audit. Um we do audit the
[34:29] library as well, so that part of it is
[34:31] uh fairly straightforward. But, because
[34:33] there's another firm of auditors that
[34:36] audits the Powell River Community Forest
[34:38] Company,
[34:39] we do have to communicate with them and
[34:41] ensure that their procedures are being
[34:43] undertaken as though we are doing the
[34:45] audit. So, we really oversee their audit
[34:48] work. And we are in communication with
[34:50] them. We do confirm with them that they
[34:52] are adhering to the same standards that
[34:54] we do. And then we do use their audit
[34:56] opinion in in the incorporation of of
[35:00] the results of operations of the
[35:03] forestry company into the cities.
[35:05] And so, based on the above,
[35:08] an unmodified audit opinion was issued
[35:10] by MNP. And we do use that as audit
[35:14] evidence for the cities' financial
[35:16] statements.
[35:20] The next several pages, 7, 8, and 9
[35:24] cover our audit findings. And this
[35:26] should be read in conjunction
[35:28] with
[35:29] the planning report that was presented
[35:32] in January.
[35:34] The first page covers management
[35:36] override of internal controls. We do
[35:39] perform procedures to address that risk
[35:41] and did not note any instances of
[35:44] override of internal controls, including
[35:47] in journal entries,
[35:49] risk of fraudulent revenue recognition.
[35:51] We have rebutted that risk just due to
[35:54] the nature of the revenue streams at the
[35:56] city. However, there is still a
[35:59] complexity to the revenue recognition at
[36:01] the city. So, we do
[36:03] confirm grant funding and we do ensure
[36:06] that any funding received and other
[36:09] transactions that are recorded for
[36:11] revenue are recorded properly in
[36:13] accordance with the standards.
[36:16] Page 8 covers employee future benefits
[36:20] and development cost charges. Again, two
[36:22] areas that that entail some complexity.
[36:25] And so, we do spend a fair amount of
[36:27] time
[36:28] examining these areas and all the
[36:30] procedures that were performed were done
[36:32] so without any issues noted.
[36:36] And then finally on page nine we address
[36:38] the contingent liability with respect to
[36:41] the wastewater treatment plant. This is
[36:43] an item that carries over from the prior
[36:45] year and the litigation is ongoing
[36:48] remains unresolved. At this time there
[36:51] have been no amounts recorded in the
[36:52] financial statements in respect of this
[36:55] item
[36:56] simply because the ability to predict
[36:59] the outcome is not there and any amounts
[37:02] if any that might be payable in respect
[37:05] of this cannot be estimated at this
[37:07] time.
[37:08] And at the time that this becomes more
[37:11] clear in terms of its resolution and the
[37:13] amount payable if any
[37:16] it will be recorded in the financial
[37:17] statements.
[37:21] The next page 10 covers internal control
[37:23] matters. We did not note any
[37:25] deficiencies in internal controls.
[37:28] If we did we would be required to
[37:31] communicate those to you
[37:33] but the fact that we are not
[37:34] communicating any significant
[37:36] deficiencies doesn't mean there are no
[37:38] deficiencies. We do not test all
[37:40] internal controls nor all instances of
[37:43] internal controls.
[37:44] We test the the controls that we deem
[37:47] relevant to the audit so those are the
[37:49] significant controls that management
[37:52] performs that impact our audit work.
[37:56] The next page 11 adjusted and unadjusted
[38:00] differences. There were no adjustments
[38:02] made during the course of the audit as a
[38:04] result of the audit procedures and there
[38:06] are no
[38:08] misstatements that we detected that
[38:10] remain uncorrected in the financial
[38:12] statements.
[38:15] The next two pages 12 and 13 cover a
[38:18] number of matters that if they were to
[38:20] occur or noted by us, we would be
[38:23] required to report them to you. The
[38:25] first three items are responsibilities
[38:27] under auditing standards, our audit
[38:29] strategy and scope, and fraud risk
[38:32] factors applicable to the city were
[38:35] included in our planning report. And uh
[38:37] there were no other matters that were
[38:39] required to be reported to you other
[38:41] than the fact that we do use uh Georgian
[38:44] Bell, the uh firm of actuaries in
[38:47] determining the uh amount of the
[38:50] employee future benefits, and of course
[38:52] our reliance on MNP's report on the
[38:55] forestry company.
[38:57] Um the next page outlines a number of
[38:59] recommended resources for you. The red
[39:02] boxes are all links to our website and
[39:06] uh include a num- a bunch of uh really
[39:08] very interesting information, and the
[39:10] one on the right there is probably
[39:13] something that uh I think uh management
[39:15] and uh council might want to to uh
[39:18] explore is uh the prevention of
[39:20] procurement fraud risks.
[39:22] Um this is something that we we do see
[39:25] now and then on the increase, and and
[39:27] just with uh today's kind of economic
[39:29] environment, um probably warrants
[39:32] another look just to ensure that uh all
[39:34] your controls are in place.
[39:37] Uh the next page covers a a new
[39:40] accounting standard that will be
[39:42] effective for your fiscal 2027 year.
[39:45] Uh it's really a a revision to the
[39:48] presentation of the financial
[39:50] statements, particularly the statement
[39:52] of financial position. Um for those of
[39:54] you who are are used to private company
[39:57] financial statements that usually have a
[39:59] balance sheet rather than the uh city's
[40:02] uh statement of financial position, uh
[40:05] this will be more familiar to you. It is
[40:07] going back more to a a balance sheet
[40:09] format, and uh introduces the concept of
[40:12] financial liabilities as well. So, there
[40:14] will be some changes, and and there will
[40:16] be a fair bit of work
[40:18] involved in in getting to that place and
[40:21] we'll be communicating with management
[40:22] over the course of the next year and a
[40:25] half or so to to ensure that
[40:28] they're on track and and if they have
[40:30] any questions on application we're happy
[40:33] to to help with those.
[40:37] And then finally in the appendices the
[40:39] representation letter I mentioned that
[40:41] we have received this already signed
[40:43] from management. We are required to
[40:45] obtain this in writing a number of
[40:48] matters that we ask about during the
[40:50] course of our audit and just telling us
[40:52] that they've provided us with all the
[40:55] material that we've asked for anything
[40:57] relevant to the financial statements and
[40:59] to the city's operation that they're not
[41:01] aware of any additional fraud risk
[41:04] factors or specific fraud
[41:07] and just a number of other general
[41:09] representations
[41:10] that that we request and there's nothing
[41:14] in in particular in this year's letter
[41:15] that is a standout that would not be
[41:18] included in other years letters or other
[41:21] local government letters so it's all
[41:23] it's all fairly standard.
[41:25] And then finally our independence letter
[41:27] which provides you with confirmation
[41:31] that we are independent from the city
[41:34] there is
[41:35] five criteria there that that we note in
[41:38] terms of what we look to to ensure that
[41:41] we are
[41:42] with the last bullet point really being
[41:43] the the one that's most
[41:46] common in in the public sector
[41:48] the provision of services that are
[41:51] incompatible with with our role as
[41:53] auditors that might put us into a
[41:55] position of auditing our own work or if
[41:57] there's
[41:59] things that we are doing services that
[42:01] we are providing that that might be
[42:04] multiples of our our audit fee and I can
[42:06] assure you that there's no such
[42:09] activities like that. So we do confirm
[42:11] that that we are independent from the
[42:14] city.
[42:15] So, I'm happy to respond to any
[42:17] questions.
[42:20] » Questions, Council?
[42:25] Wow, you have Oh, I thought you were
[42:28] going to set a record, Mr. Zabel.
[42:29] Counselor Dought.
[42:32] >> I don't want to be accused of coming to
[42:34] » I don't want to be accused of coming to
[42:34] a 3-minute meeting, so
[42:37] >> [laughter]
[42:37] » [laughter]
[42:37] >> going to maybe stretch it out a little
[42:39] » going to maybe stretch it out a little
[42:39] bit here. But, I just you know, I got an
[42:41] email this week from a from a taxpayer
[42:44] who was telling me that the city is
[42:46] bankrupt. And since the auditors are
[42:49] here, I thought that might be a good
[42:51] question to ask the auditors. Do you
[42:53] think we're the city's anywhere close to
[42:55] being bankrupt?
[42:58] >> Well, I I think that's probably a
[43:00] » Well, I I think that's probably a
[43:00] question that should be answered during
[43:02] the presentation of the financial
[43:04] statements. I'm not I'm not sure what
[43:06] you know, bankrupt can mean a lot of
[43:08] different things. Um I don't certainly
[43:11] don't see the city as as being
[43:14] bankrupt,
[43:15] but I think what you'll you'll find is
[43:17] when the financial statements are
[43:19] presented that the city has adequate
[43:22] resources to continue operations.
[43:26] >> Thank you. I thought that was what you
[43:28] » Thank you. I thought that was what you
[43:28] would say.
[43:31] » Thank you, Counselor Dought. Anyone
[43:32] else?
[43:34] Seeing none, thank you, Mr. Zabel for
[43:36] your presentation.
[43:38] >> Thank you. I will just I'll hang on the
[43:40] » Thank you. I will just I'll hang on the
[43:40] meeting until Council has an opportunity
[43:43] to approve the statements.
[43:45] >> Sounds good.
[43:46] » Sounds good.
[43:46] >> Thank you.
[43:46] » Thank you.
[43:46] >> Um Mr. Youngman, I believe you're next.
[43:51] » Thank you.
[43:53] I always have to adjust this microphone
[43:54] here.
[43:56] So, the purpose of this report is to
[43:58] summarize the city's financial results
[44:00] and to present the draft 2025 financial
[44:03] statements for Council's approval, which
[44:05] is required for the auditors to sign off
[44:07] on the audit.
[44:09] >> [clears throat]
[44:10] » [clears throat]
[44:10] >> So, the report goes into quite a bit of
[44:11] » So, the report goes into quite a bit of
[44:11] detail, so I'm just going to focus on
[44:12] the key points, but if there's any
[44:14] questions on the presentation, the
[44:16] report, or any part of the financial
[44:17] statements, I'll be happy to answer them
[44:18] at the end of the presentation.
[44:21] So, starting with some background
[44:22] information, the financial statements
[44:24] and the audit are being big undertaking
[44:26] by staff, um
[44:27] but uh ultimately the financial
[44:29] statements are prepared by management in
[44:30] accordance with public sector accounting
[44:32] standards.
[44:33] As we've heard from the city's external
[44:35] auditor, BDO, the auditors have
[44:37] substantially completed their audit and
[44:39] have scrutinized the city's accounts,
[44:41] processes, and financial statements and
[44:43] have a draft clean audit opinion, which
[44:45] is called an unmodified opinion, so
[44:47] we're pleased about that.
[44:50] >> [clears throat and cough]
[44:51] » [clears throat and cough]
[44:51] >> So, the first statement that I'd like to
[44:53] » So, the first statement that I'd like to
[44:53] bring to your attention is the
[44:54] consolidated statement of financial
[44:55] position, which provides a snapshot of
[44:58] the city's finances at a point in time.
[45:01] So, we're looking at December 31st of
[45:03] 2025 compared to the previous year.
[45:06] So, the first line item I'd like to
[45:08] bring to your attention is cash and cash
[45:10] equivalents, which increased by 5.2
[45:12] million to 69.1 million, primarily due
[45:15] to the 2024 dividend from the Powell
[45:17] River Community Forest of 3.7 million
[45:19] that was deposited during the year.
[45:22] Dividends receivable from the Powell
[45:23] River Community Forest fluctuate
[45:25] depending on the activity in the
[45:26] corporation, and the dividend receivable
[45:29] increased decreased by 2 million to 1.7
[45:32] million, which is larger than the
[45:33] budgeted dividend of $1 million.
[45:36] The investment in Powell River Community
[45:38] Forest, which is the equity the city
[45:40] owns of the entity, increased by $2
[45:42] million to $3 million, primarily due to
[45:44] higher net income in the company.
[45:47] So, overall, the net financial assets
[45:49] came in at 23.9 million.
[45:53] Looking at the non-financial assets, um
[45:56] the tangible capital assets decreased by
[45:58] $1 million, primarily due to
[46:01] amortization, but uh is pretty
[46:03] consistent with the prior year.
[46:05] Resulting in accumulated surplus of 240
[46:08] million.
[46:12] The next statement I'd like to bring to
[46:13] your attention is the consolidated
[46:14] statement of operations. So, this
[46:17] provides a summary of the financial
[46:19] results from uh the year ended December
[46:21] 31st of 2025 as compared to the prior
[46:24] year.
[46:26] So, taxation came in pretty much as
[46:28] expected at 30.2 million. The minor
[46:31] variance is due to the
[46:32] you know, to the budget is due to the
[46:34] supplementary assessment from BC
[46:36] Assessment that it that are issued.
[46:41] Government transfers was 3.3 million,
[46:44] which was 5.2 million below budget
[46:46] primarily due to actual grant revenue
[46:48] recognized being lower as there are
[46:50] projects that did not progress as
[46:51] planned for various reasons.
[46:54] Uh the most significant was the complex
[46:55] thermal ice heat plant recovery project
[46:58] that had a grant budget of 1.8 million,
[47:00] but didn't proceed during the year.
[47:03] And then also, when we look at the prior
[47:04] year, there was a large portion of grant
[47:06] funding that was recognized due to the
[47:08] airport rehabilitation project.
[47:11] So, overall revenue came in at 54.2
[47:13] million, which is lower due to the
[47:15] government transfers from the prior
[47:16] year.
[47:20] So, looking at the expenses, uh one
[47:22] thing to note is we're required on the
[47:25] financial statements to report the
[47:27] original budget that was adopted. So,
[47:29] any budget amendments that were made
[47:30] during the year are not in the budget
[47:32] column here.
[47:35] So, [clears throat] uh budget amendments
[47:36] like the CUPE collective agreement, for
[47:38] example, which was signed in 2025 is not
[47:41] in here.
[47:43] Um so, protective [clears throat]
[47:44] services increased by 1.2 million to 9.4
[47:47] million primarily due to police costs
[47:49] increasing almost 1 million as RCMP
[47:52] contract costs increased and there were
[47:53] more members year over year.
[47:56] The protective services overall was over
[47:58] budget by 429,000
[48:00] due to the fire department incurring
[48:02] overtime to cover long-term injury and
[48:04] illness for a significant portion of the
[48:06] year.
[48:08] Recreation parks and cultural services
[48:10] increased to 7.4 million and was 239,000
[48:14] over the original budget primarily due
[48:16] to higher wages driven by the new KIP
[48:18] wage agreement or the collective
[48:20] agreement. But having said that, if we
[48:22] look at the budget amendments that were
[48:24] um
[48:25] uh approved during the year, that they
[48:27] were actually under budget.
[48:30] So, there was a loss on disposal on
[48:32] disposal of tangible capital assets of
[48:34] 723,000
[48:36] which was primarily related to the
[48:37] disposal of old asphalt pavement that
[48:40] was replaced during the airport paving
[48:42] project.
[48:43] And overall, the annual surplus was 4.5
[48:47] million which was lower than the prior
[48:48] year and budget primarily due to lower
[48:51] government transfers.
[48:53] Thank you. If there's any questions or
[48:55] comments, I'd be happy to answer them.
[48:59] » I just noticed you didn't highlight it
[49:00] there, but the development planning and
[49:02] building services was higher than 24 but
[49:05] a million lower than what the budget
[49:07] was. Are those just development and
[49:09] permit fees and things?
[49:12] >> Uh so, for the uh environmental and
[49:14] » Uh so, for the uh environmental and
[49:14] public health, which sorry, which one
[49:15] were you looking at there?
[49:16] >> The development planning and building
[49:17] » The development planning and building
[49:17] services right under the recs and parks.
[49:20] >> Yeah, so that's 1.9 million that it came
[49:22] » Yeah, so that's 1.9 million that it came
[49:22] in at versus uh
[49:24] 2.9 million and um it's primarily
[49:27] related to
[49:28] uh lower staff levels than than
[49:30] budgeted. So,
[49:31] makes sense.
[49:33] Does that really help?
[49:34] >> So, we're talking about government
[49:35] » So, we're talking about government
[49:35] transfers and and projects we didn't
[49:37] start. So, does that mean we didn't
[49:39] receive grants we expected to receive
[49:41] and they're gone now or we will receive
[49:43] them in a different year or did I
[49:45] misunderstand you?
[49:46] >> Yeah, I know, it's a good question. So,
[49:47] » Yeah, I know, it's a good question. So,
[49:47] basically um
[49:49] how how it works is as projects proceed,
[49:52] that's when we recognize grant revenue
[49:54] cuz as we spend eligible grant money,
[49:57] that's when we recognize the grant
[49:58] revenue. So, uh it doesn't mean that
[50:00] we've um releasing grants. In some
[50:03] cases, we might have grants, but we have
[50:05] to record them as deferred revenue until
[50:06] the project starts. Uh in some cases, we
[50:09] put um
[50:11] you know, government transfers grant
[50:12] revenue or not grant revenue, but we
[50:14] budget for that grant revenue. Um and we
[50:17] haven't even actually been approved for
[50:18] the grant yet, but we're just putting in
[50:20] the budget hoping that it's going to get
[50:21] approved. So, yeah, there's it doesn't
[50:23] mean that we're losing out on grant
[50:25] opportunities. It's just projects are
[50:26] not proceeding as planned.
[50:28] >> So, we haven't turned back grants.
[50:31] » So, we haven't turned back grants.
[50:31] It's not grants that we turned back cuz
[50:33] we couldn't do the project in time or
[50:35] something.
[50:36] >> Um I mean, I can think of one situation
[50:40] » Um I mean, I can think of one situation
[50:40] where that's that's happened um where
[50:42] basically the project couldn't
[50:45] uh couldn't proceed. So, um the it just
[50:47] didn't happen and then the grant the
[50:49] grant money uh will be returned to the
[50:51] granter. Yeah.
[50:54] Mr. Shelton?
[50:58] » Just two more questions.
[51:00] I'm specifically curious about the
[51:03] Rec Complex [clears throat]
[51:04] uh thermal facilities uh grant federal
[51:06] grant. Was that the one that was
[51:08] returned
[51:09] or expired?
[51:11] >> Yeah, so my understanding with that
[51:12] » Yeah, so my understanding with that
[51:13] project is uh there are some funding
[51:15] challenges with that project and so um
[51:18] it's in the budget for 2027. So, it's
[51:20] still you know, hope to proceed, but
[51:23] it's just uh yeah, there there's been a
[51:25] bit of delay on it. So,
[51:26] >> So, that money that federal money is
[51:27] » So, that money that federal money is
[51:27] still waiting to
[51:29] be applied. Is it?
[51:31] >> Um
[51:33] » Um
[51:33] to be honest, I can't remember the exact
[51:35] status of it, but I just know yeah, it's
[51:36] in the 2027 budget and it was the
[51:38] project was going to cost more than was
[51:40] uh anticipated.
[51:42] >> Right.
[51:43] » Right.
[51:43] Okay, thank you.
[51:45] >> Mr. Palm.
[51:46] » Mr. Palm.
[51:46] >> Mr. Chair, just for further
[51:48] » Mr. Chair, just for further
[51:48] clarification, you were talking about
[51:49] the the roof replacement.
[51:52] Which fund Which funding were you to uh
[51:58] The the
[51:59] That wasn't Community Forest funds in
[52:01] old was it?
[52:03] >> No.
[52:04] » No.
[52:04] It's a
[52:05] federal grant.
[52:06] >> For the uh the heat exchanger projects,
[52:08] » For the uh the heat exchanger projects,
[52:08] I I can't remember what the funding
[52:10] source was uh for that. I'm not sure if
[52:12] uh CFO Bajergaard remembers, um but I I
[52:15] can speak to the uh the
[52:17] uh complex the pool roof. I I remember
[52:19] that one. So, that's uh
[52:21] that's partially Community Forest funded
[52:23] and uh we're waiting on that one for um
[52:25] to determine whether or not uh the grant
[52:28] application was successful for the
[52:29] Strategic Priorities Fund, which I
[52:31] believe we're uh supposed to expect in a
[52:34] couple months.
[52:36] >> Yep.
[52:36] » Yep.
[52:36] >> Councillor Isaacson.
[52:40] » Thank you, Chair. Um I'm wondering if
[52:41] you can speak to I think it's always a
[52:43] curiosity different organizations treat
[52:46] um annual surpluses. And so, when I look
[52:49] at our statement of operations, the
[52:50] annual surplus this year was um
[52:54] um over $4 million. And so, that feels
[52:58] like a lot of money that was taxed for
[53:00] that wasn't put to use. And so, can you
[53:03] speak to how how we
[53:07] um what we do with those funds and ways
[53:10] to tax to the levels that we expect to
[53:14] to spend operationally annually.
[53:18] » Yeah, through the chair. So, there
[53:20] actually will be a report coming forward
[53:21] in the near future um discussing
[53:23] surplus. So, it'll go into more detail,
[53:26] but uh yeah, surplus is used to put into
[53:29] reserves to save for the future, um and
[53:32] it's also used to you know, fund
[53:34] tangible capital assets as well. So, um
[53:37] you know, you see a $4 million
[53:39] surplus there, but uh it you know, it's
[53:41] it's being allocated and saved for the
[53:43] future, right?
[53:45] >> Through the chair, maybe I could just
[53:47] » Through the chair, maybe I could just
[53:47] address that question in part.
[53:50] We have to be careful to distinguish
[53:53] between the accrued surplus versus cash
[53:55] surplus.
[53:57] So, that figure that you're noting is
[53:59] based on an accrual and it includes
[54:02] non-cash items such as amortization,
[54:06] things like that. So, a truer picture is
[54:09] when you look at the cash surplus, which
[54:11] is identified in the financial
[54:13] statements.
[54:14] And there's a surplus related to the
[54:17] water fund,
[54:18] the sewer fund, and the general fund.
[54:21] And the overall cash surplus went down
[54:23] by $400,000.
[54:28] » Thank you for the clarification, Mr.
[54:30] Berglund.
[54:31] Any further questions from council?
[54:36] Being none, anything else on the
[54:38] presentation, Mr. Youngren?
[54:43] » That's it for me.
[54:46] Actually, one thing I'll just mention
[54:47] just about the question about
[54:49] bankruptcy. I mean, one of the things
[54:51] that we have to answer every year is
[54:53] going concern, right? So, is the city
[54:55] operating on a going concern basis,
[54:56] which means that we believe that it's
[54:58] going to continue operating into the
[54:59] future, and the auditors have to assess
[55:01] that as well. So, there's no concern on
[55:04] my end about the city's ability to
[55:05] continue operating as a going concern.
[55:08] >> Through the chair, maybe I could address
[55:10] » Through the chair, maybe I could address
[55:10] that question as well.
[55:12] Um
[55:13] >> Go ahead.
[55:14] » Go ahead.
[55:14] >> You know, the
[55:16] » You know, the
[55:16] the city has
[55:18] fairly healthy reserves that went up by
[55:20] 3 million during the year.
[55:22] You know, a good percentage of those
[55:23] reserves, of course, are the community
[55:25] forest money says well.
[55:27] And as we know, you know, they are
[55:29] designated more for capital
[55:32] and cannot be used for operations, but
[55:34] overall, I think the city's financial
[55:37] picture from a reserve point of view is
[55:40] has improved from 2024 to 2025.
[55:44] And um
[55:46] you know, at the end of the day um
[55:50] you know, a surplus and reserves will
[55:53] grow over time if we have a disciplined
[55:56] approach
[55:57] to saving money.
[55:59] Um
[55:59] and I think that's what long-term
[56:01] financial planning does for you. It
[56:03] allows you to set aside money is on a
[56:06] disciplined basis to get into a better
[56:08] financial position over time.
[56:13] » Thank you, Mr. Mayor. You're good.
[56:14] Counselor Doep.
[56:16] >> Now, I'm going to move the motion that
[56:18] » Now, I'm going to move the motion that
[56:18] council approve
[56:20] the City of Powell River's draft 2025
[56:23] financial statements as presented. And
[56:25] if there's a second here, I'll speak on
[56:27] it momentarily.
[56:28] >> Okay, Counselor Doep. Go ahead,
[56:29] » Okay, Counselor Doep. Go ahead,
[56:29] Counselor Doep.
[56:30] >> Well, I'm I appreciate the presentation
[56:32] » Well, I'm I appreciate the presentation
[56:32] of staff and the auditors today. I'm
[56:34] glad uh that we're in a a reasonably
[56:37] strong financial position as a city to
[56:39] go forward. I appreciate that. And it's
[56:42] the work of a lot of people on staff and
[56:45] council to try to make sure that we have
[56:47] a plan going forward in the future to
[56:49] take care
[56:51] of the services that council hopes to
[56:53] provide. So, I'm in favor of accepting
[56:56] this and I think it's a good report.
[57:00] >> Counselor Elliott.
[57:01] » Counselor Elliott.
[57:01] >> Thank you. I'm in favor of the motion. I
[57:03] » Thank you. I'm in favor of the motion. I
[57:03] just wanted to comment on um
[57:06] the financial position that the city is
[57:08] um if if someone is worried about taxes
[57:12] continuing to increase, a disciplined
[57:14] model of savings has, you know, a
[57:17] certain percentage of increase each
[57:18] year. So, we're not looking at decreases
[57:21] in any time soon in order to get our
[57:23] reserves to where they're meant to be to
[57:26] support a city with the infrastructure
[57:28] of the size that we have. And so, that
[57:30] is um the reality of having a city such
[57:34] as ours with lots of
[57:36] infrastructure that's aging. So um I I
[57:40] am in favor of the motion. I don't
[57:43] believe our city is going bankrupt, but
[57:45] I do believe it is um requiring extra
[57:48] savings to deal with the assets that we
[57:50] have. Thanks.
[57:53] >> It's a problem.
[57:54] » It's a problem.
[57:54] >> Yeah, thank you, Mr. Chair. I appreciate
[57:56] » Yeah, thank you, Mr. Chair. I appreciate
[57:56] all the information that has been uh
[57:58] discussed
[57:59] uh
[58:00] today and the work by staff and our
[58:03] auditor.
[58:04] I guess the one major concern on a
[58:06] go-forward basis in terms of the uh
[58:08] comment that Councillor Doughty received
[58:10] is
[58:12] um
[58:13] the condition of our roads and what's
[58:14] underneath uh the pavement in terms of
[58:17] uh
[58:18] our infrastructure.
[58:20] That is going to be something that uh
[58:23] is has to be dealt with sooner or later
[58:25] and it's uh long overdue.
[58:28] I don't think our reserves are anywhere
[58:30] near the where they should be in that
[58:31] regard and uh
[58:33] that's something that we have to keep in
[58:35] in mind uh as the city goes forward.
[58:38] Thank you, Chair.
[58:41] >> Okay. Well, before I call the vote,
[58:43] » Okay. Well, before I call the vote,
[58:43] because I might forget if I don't do
[58:44] this now, I want to thank staff and
[58:47] especially thank uh Mr. Beauregard who's
[58:50] uh served as our interim CFO for the
[58:51] last uh 6 7 months. Today is his uh
[58:54] final day and his final duty here. So,
[58:56] thank you for uh your service to our
[58:58] city for this brief period of time in
[59:00] this transition. We welcome our new CFO
[59:02] and uh we wish you the best in your
[59:04] future endeavors.
[59:06] >> Thank you.
[59:08] » Thank you.
[59:08] >> And I'll call the question. All in
[59:09] » And I'll call the question. All in
[59:09] favor.
[59:11] That is unanimous.
[59:13] >> Through the chair, could I just provide
[59:15] » Through the chair, could I just provide
[59:15] a few remarks?
[59:16] >> Sounds good.
[59:18] » Sounds good.
[59:18] >> I just like to acknowledge uh the work
[59:20] » I just like to acknowledge uh the work
[59:20] of staff in completing year end and the
[59:23] financial statements. Um
[59:26] throughout the year um
[59:28] there were staff shortages in finance,
[59:30] but they persevered and produced the
[59:33] financial statements
[59:35] in a fairly timely manner.
[59:38] And under Ryan's leadership, they
[59:41] gelled together to produce the
[59:43] statements and to provide a clean audit
[59:46] opinion, which I think is to be
[59:47] commended.
[59:51] » Good to hear.
[59:52] We have a great team.
[59:54] So.
[59:55] >> Uh, moving into public clarification,
[59:57] » Uh, moving into public clarification,
[59:57] Mr. Glinsky.
[1:00:10] » Uh, good afternoon, Chair. Thank you for
[1:00:12] the opportunity. Um, I was watching Mr.
[1:00:15] Youngman's presentation and
[1:00:17] with great interest and I was looking in
[1:00:20] the agenda package and I did not see it
[1:00:22] there. Am I missing something?
[1:00:26] >> Well, the presentation, yeah, the slides
[1:00:27] » Well, the presentation, yeah, the slides
[1:00:27] weren't part of the package, so.
[1:00:31] » Uh, that would be wonderful, Chair. I'll
[1:00:33] make arrangements with Mr. Youngman.
[1:00:34] Yes.
[1:00:35] >> Councillor Elliott has some comments.
[1:00:36] » Councillor Elliott has some comments.
[1:00:36] >> Thank you. So, I was following along in
[1:00:39] » Thank you. So, I was following along in
[1:00:39] um, slides that were a part of appendix
[1:00:41] B
[1:00:43] of the BDO presentation. And so, maybe
[1:00:48] that's where it's at.
[1:00:49] >> He's referring to Mr. Youngman's
[1:00:51] » He's referring to Mr. Youngman's
[1:00:51] presentation.
[1:00:51] >> Oh, okay.
[1:00:52] » Oh, okay.
[1:00:52] >> I believe most of the data was in
[1:00:53] » I believe most of the data was in
[1:00:54] appendix A, but not in the slide format,
[1:00:56] so.
[1:00:57] >> Right. Okay, yeah, they're part of the
[1:00:58] » Right. Okay, yeah, they're part of the
[1:00:58] finance, yeah.
[1:01:03] » That's awesome. Thank you, Chair. I
[1:01:05] appreciate the opportunity.
[1:01:06] >> Okay, Mr. Glinsky.
[1:01:09] » Okay, Mr. Glinsky.
[1:01:09] Uh, any callers online, Mr. Sian?
[1:01:14] There's no one online and seeing that, I
[1:01:15] believe I can just adjourn.
[1:01:18] Yeah, meeting is adjourned. Thank you,
[1:01:19] everyone.