Fortis BC has purchased the natural gas distribution system in Prince George on which it originally had a lease, which means that a good part of the change is heading to the city.
After expenses, $28,285,863 was deposited in the Fortis Reserve Fund, and The city council will have several options on what to do with the funds at the meeting tomorrow (Monday).
The report, submitted by Chief Financial Officer Kris Dalio, offers five options.
The first option sees the money remain in the Fortis reserve fund, to be used for any future general capital projects.
Dalio wrote in the report that the advantage is that the money is easily traceable from there.
The second option would see the money go to the endowment reserve.
This would also see the money used for future general capital projects, but would be seen more as a loan that must be repaid over time through the tax levy.
A third option would be to use the money to reduce the City’s future debt related to capital projects.
Dalio wrote that this would have an effect on future tax drawdowns, adding that removing $25 million of debt would have an approximate 1.53% impact on future tax drawdowns.
The fourth option could see the money used immediately for future projects, Dalio noting the Prince George Playhouse, the Rolling Mix Concrete Arena or reinvestment in leisure facilities like the CN Centre, Civic Centre, Elksentre and the Kins were possible undertakings.
The latter option would see the money offset the challenges of tax levies, Dalio adding that the funds really have no restrictions on their use.
He wrote that it would be a temporary funding solution, but the administration does not recommend it, noting that it does not comply with the Council’s financial policy of benefiting long-term residents.