1. Who?
The Powell River Community Forest (PRCF) Corporation is a company fully owned and controlled by the City of Powell River. In other words, the PRCF Corporation is the City’s Company.

The board of directors, appointed by City Council, run the operations of the PRCF Corporation. Decision making powers lie with City Council, including decisions regarding the use of funds produced by the PRCF Corporation.

2. What?

The PRCF Corporation earns a profit which is transferred to the City annually as a dividend. In accordance with the Bylaw established by City Council, the dividend is transferred to the PRCF Reserve Fund. City Council then decide how the dividend is distributed considering recommendations from the PRCF board of directors.

Even though PRCF Corporation money is City money, City Council cannot spend it on anything it wishes unless it changes its bylaw. The current bylaw restricts the use of this reserve fund to capital grants to not for profit organizations (NPOs) and for City capital projects that benefit the community as a whole. For example: capital projects for recreation, parks, cultural, environmental, and transportation initiatives.

3. How Much?

The PRCF Corporation was established in 2006 and has produced total dividends of $31M since inception. $12M of that amount has been granted to NPOs, and $19M has been spent, committed or saved by the City for projects that benefit the entire community. PRCF grants to NPOs are distributed at Council’s discretion and fluctuate from year to year.

How does that affect taxes? By funding City Projects from the PRCF Reserve, the City has not needed to increase property taxes to pay for those projects. To put that into context, since 2008, using the PRCF Reserve fund for City Projects saved the Average Single Family Dwelling (ASFD) $1,750 in property tax. The average business saved $6,013 in property taxes for the same period.

Aging City infrastructure, such as the Recreation Complex which is past its useful life, will require significant funding to upgrade or rebuild. The City is currently saving PRCF funding for such projects. Saving results in higher interest earned on the reserve and helps to reduce future property tax increases.

4. Why?

So, why is City Council looking at this now? Council is deliberating the 2025 five-year financial plan and setting support to NPOs is part of this budgeting process.

PRCF funding is not the only way that the City supports NPOs. Property taxes are used to support NPOs through contribution agreements, grants in aid, grants in kind and permissive tax exemptions.

For comparison purposes, a poll of ten other BC communities showed that on average 1.7% of property taxes are attributed to NPOs. By contrast in 2024 the City attributed 9% of property taxes to NPOs. In addition to this 9%, the City provided grants to the PR Public Library and through permissive tax exemptions bringing the 2024 total to $3.8M to NPOs representing 15% of property taxes.

The proposed contribution to NPOs for 2025 from the PRCF Reserve Fund represents 1.6% of property taxes. The total proposed NPO contribution for 2025 is $2.6M representing 10% of property taxes. This equates to $275 in property taxes per ASFD and $945 per average business in 2025.