Fortis BC bought the natural gas distribution system in Prince George that it originally had a lease on, and this means a good chunk of change is heading towards the City.
After expenses, $28,285,863 was deposited into the Fortis Reserve Fund, and City Council will have multiple options on what to do with the funds in tomorrow’s (Monday) meeting.
The report, submitted by the Director of Finance Kris Dalio has five options to choose from.
Option one sees the money stay in the Fortis Reserve Fund, to be used for any future general capital project.
Dalio wrote in the report that the advantage to this is the money is easily trackable from there.
Option two would see the money go to the Endowment Reserve.
This would also see the money be used for future general capital projects, but would be seen more as a loan that needs to be paid back over time through the tax levy.
A third option would see the money be used to reduce the City’s future debt from capital projects.
Dalio wrote that this would have an effect on future tax levies, adding that the removal of $25 million of debt would have a rough impact to future tax levies by 1.53%.
Option four could see the money be used right away for future projects, with Dalio noting that the Prince George Playhouse, Rolling Mix Concrete Arena, or reinvestment into recreation facilities like the CN Centre, Civic Centre, Elksentre and the Kins were possible undertakings.
The final option would see the money offset tax levy challenges, with Dalio adding that the funds really don’t have any restrictions on their use.
He wrote that this would be a temporary funding solution, but Administration doesn’t recommend it, noting that it doesn’t meet Council’s finance policy of benefitting residents in the long term.
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