Islands Trust Financial Planning Committee regular meeting, January 20, 2021

[0:00:00] Trustee Grove: and particularly in light of what we've been seeing to the south of us I'm so thrilled and

[0:00:05] Trustee Grove: honored and to be a part of this land and the land that we on the islands trust

[0:00:11] Trustee Grove: are inhabiting and sharing with the coast Salish peoples whose traditional territories

[0:00:22] Trustee Grove: this is we are fortunate indeed and let us never forget that so let us turn to

[0:00:29] Trustee Grove: to the agenda, and I think there might be a couple of matters to add. I believe that

[0:00:36] Trustee Grove: our CAO has been doing exciting work in terms of insurance and has some options, so I would

[0:00:43] Trustee Grove: like him to have an opportunity to tell us about that. Where, Julia, do you think we

[0:00:49] Trustee Grove: should slot that in? I

[0:00:53] Voice 2: think it might make the most sense either

[0:00:56] Voice 2: at the start of the meeting or the end of the meeting um well

[0:00:59] Trustee Grove: let's do it at the start because

[0:01:00] Trustee Grove: it's too it's too good to uh to miss so so um right after follow-up action list so 3.4

[0:01:11] Voice 8: you know mr chair i'd probably put it in business okay somewhere in your business

[0:01:17] Voice 8: part of your agenda

[0:01:19] Voice 6: 5.1 a yeah

[0:01:21] Trustee Grove: let's do 5.1 a thank you um and uh then julia you may have some

[0:01:28] Trustee Grove: some news from the Salt String Island Local Trust Committee with regard to a $50,000 payment

[0:01:35] Trustee Grove: out of surplus. How do you wish to deal with that, or how should we deal with that?

[0:01:41] Voice 2: So I did receive some information, that's true. I can speak to that at 5.2.1, changes

[0:01:47] Voice 2: to the draft budget.

[0:01:48] Trustee Grove: Good. I won't make a note of that. You'll just bring it up automatically.

[0:01:52] Voice 2: Will do.

[0:01:52] Voice 2: Good.

[0:01:53] Trustee Grove: So may I take it then by general consent that we approve the agenda?

[0:01:59] Voice 2: There is one other small change, Mr. Chair. You may

[0:02:03] Voice 2: have noticed for those with an astute eye

[0:02:06] Voice 2: that agenda item 5.2.3 listed on the cover page contains no attachment. Somehow that item was

[0:02:14] Voice 2: attached at 5.5. But with the committee's approval, I'd like to speak to agenda item 5.5

[0:02:21] Voice 2: when we arrive at 5.2.3. It relates to the budget.

[0:02:25] Trustee Grove: Sounds good. That would be excellent. Any other

[0:02:29] Trustee Grove: thoughts, changes, additions? Hearing none, I will take it that we are approving the agenda.

[0:02:37] Trustee Grove: So can we please turn to the minutes of our last meeting on pages 3 to 11. Any adds, changes,

[0:02:47] Trustee Grove: deletes, concerns? I will take it then that by general consent, those minutes are adopted and

[0:02:54] Trustee Grove: approved thank you no resolution without minutes no follow-up action list um so we now turn to 5.1a

[0:03:04] Trustee Grove: which is our business agenda there

[0:03:08] Voice 2: is a follow-up list mr chair

[0:03:10] Trustee Grove: i beg your pardon yeah 12 to 15

[0:03:12] Trustee Grove: thank you so much and julia will you take us through that uh

[0:03:16] Voice 2: certainly so as usual mainly

[0:03:18] Voice 2: speak to the items in progress um from the april 14th meeting um there is direction for fpc to

[0:03:24] Voice 2: continue working with RPC on the application fee structure, so that work is still underway.

[0:03:29] Voice 2: From the August 19th meeting, FPC asked staff to explore our accumulated surplus, its history,

[0:03:35] Voice 2: and its use. So there is a motion that was deferred from the last meeting that's being

[0:03:39] Voice 2: carried forward to this meeting, so we'll tackle that today. From the November 12th meeting,

[0:03:44] Voice 2: item number six, that's direction to update the budget and assumptions principles document to

[0:03:49] Voice 2: include a note regarding how grants are dealt with in the budget. So I actually missed that

[0:03:54] Voice 2: that on the last Trust Council package.

[0:03:56] Voice 2: So it's still listed as in progress

[0:03:58] Voice 2: and I will update it for the next Trust Council meeting.

[0:04:02] Voice 2: And from the November 12th meeting item number 13,

[0:04:05] Voice 2: the cost-effectiveness of satellite offices

[0:04:07] Voice 2: is a report that I've started.

[0:04:09] Voice 2: However, I have not completed that work.

[0:04:10] Voice 2: So it will be coming to the next FPC meeting.

[0:04:13] Voice 2: And that's it, but I'm happy to take questions.

[0:04:17] Trustee Grove: Any questions of Julia Mobs?

[0:04:22] Trustee Grove: Hearing none, we will move on if I may please to 5.1A,

[0:04:27] Trustee Grove: which is a report from our CAO. Over to you, Russ.

[0:04:32] Voice 8: Thank you very much, Mr. Chair, and thank you for giving me a few moments here at the start of your important FPC meeting.

[0:04:40] Voice 8: Julie and I, over the last couple of months, have been working on insurance matters.

[0:04:45] Voice 8: You know that she brought to you some stark information as we developed the budget around the increase in our premiums

[0:04:53] Voice 8: and our deductibles and so forth who went to the open market and as we have in the past and she

[0:05:00] Voice 8: did a lot of work getting the best analysis we possibly could but nevertheless we saw some

[0:05:06] Voice 8: very significant increases and at your last meeting you collectively shared that shock and

[0:05:13] Voice 8: said well what are some options and you directed us to do two things and I'm just paraphrasing here

[0:05:18] Voice 8: I'm not reading your resolution. One of them was to look at whether we could self-insure

[0:05:23] Voice 8: and the viability of that. And the other was to reach out to the municipal insurance agency

[0:05:28] Voice 8: and determine whether we might be a fit there. And I'd like to report that the MIA piece,

[0:05:37] Voice 8: I'd just like to spend three or four minutes discussing this with you. Normally, we would

[0:05:41] Voice 8: have a report in front of you, but this has unraveled or developed, maybe a better word,

[0:05:46] Voice 8: a little quite quickly, and I just got some positive news two days ago. So at the end of my

[0:05:52] Voice 8: quick review, I'm going to ask for your support for an initiative, and at that point, we'll see

[0:05:59] Voice 8: which way you take it. So that being said, I phoned the CEO, Tom Barnes of the MIA. It was a

[0:06:07] Voice 8: a well-received call. He indicated that the MIA is trying to expand its suite of institutions it

[0:06:17] Voice 8: insures. And there is a push to have both First Nations communities and institutions like the

[0:06:25] Voice 8: Islands Trust have some analysis to see whether they would be fit inside that umbrella. The MIA

[0:06:32] Voice 8: takes a slightly different approach. For lack of a better word, they dollar cost average over a

[0:06:37] Voice 8: a longer time period. So they have what they would consider lower, less fluctuations and overall a

[0:06:46] Voice 8: lower cost insurance. That's at least what he was saying to me. They have 90% of the municipalities

[0:06:52] Voice 8: in the province and about 50% of the population. So some of the larger actors out there, the

[0:06:57] Voice 8: Vancouver's and the Victoria's either have some form of self-insurance or they're working with

[0:07:02] Voice 8: some of the big um the big firms to get that done so uh i've had two or three conversations with him

[0:07:07] Voice 8: um a couple pre christmas and now a follow-up and he said in order for us to uh he he couldn't

[0:07:16] Voice 8: guess at what our rates would be some work would need to be done we are a different entity um we

[0:07:22] Voice 8: had a brief joking moment where he said the two worst insurable items in local governments are

[0:07:29] Voice 8: are big fire departments and small town land use planning.

[0:07:32] Voice 8: Those are the two things that land everybody in the most trouble.

[0:07:36] Voice 8: So that being said, he said, if we were going to advance our conversations,

[0:07:40] Voice 8: we would need a way to figure out how to underwrite the island's trust.

[0:07:44] Voice 8: So using population and a per capita premium, undertaking an actuarial analysis,

[0:07:50] Voice 8: undertaking a review of our claims history, and doing some of their risk management analysis.

[0:07:55] Voice 8: That's what would need to happen.

[0:07:59] Voice 8: He said he's willing to take this to the Board of Governors on March 4th, if the numbers prove reasonable, for a discussion with the Board of Governors to outreach the Allen's Trust.

[0:08:12] Voice 8: If we don't get it by March 4th, I think March is the time that they set their year.

[0:08:21] Voice 8: year so either if we don't make the March 2021 version it will either be six months or a year

[0:08:28] Voice 8: later before that consideration could be had again so to that end I got an email that said

[0:08:33] Voice 8: hello you know here's an email that he asked his consulting actuary for the information she'd need

[0:08:42] Voice 8: to analyze and we've gotten a fee quote here and what would happen is we would provide Julia

[0:08:49] Voice 8: Julia primarily, would provide information around insurance premiums on our behalf for the last five years, our conditions of coverage, census data on population, and a confirmation that claims are consistent with those reported by the Islands Trust in some sort of data field.

[0:09:06] Voice 8: and then we prepare an analysis centering on the following reviewing that data proposing

[0:09:11] Voice 8: underwriting criteria for non-municipalities which we are estimating the premium for the

[0:09:16] Voice 8: island's trust outlying dividend eligibility criteria and outlining impacts on subscribers

[0:09:22] Voice 8: accounts so they're offering to do that work through them and using their staff it would

[0:09:29] Voice 8: take approximately four weeks and it would cost in the order of seven to nine thousand dollars

[0:09:35] Voice 8: uh mr barnes offered uh this saying um if we if if this ends up being successful and the numbers

[0:09:46] Voice 8: work that that fee um he would um build into um uh that our actuarial costs would be reimbursed

[0:09:59] Voice 8: over the first three years of our membership if that's the case for for that study so i'm here i

[0:10:05] Voice 8: I know this is quick. Normally, you'd get a report in front of you, but I got that a couple of days

[0:10:08] Voice 8: ago. It takes three to four weeks worth of work to get this, to get this actuarial study done.

[0:10:15] Voice 8: And if we're going to dig ourselves out of this hole, the question in front of you and the trust

[0:10:20] Voice 8: as a whole is, you know, what work do we have to do to do that? I think we should undertake this.

[0:10:25] Voice 8: I think there should be some good information coming from it. I've talked with Julia. I think

[0:10:29] Voice 8: she's in of the same belief. We can't guarantee that we'd end up being members of the MIA.

[0:10:35] Voice 8: But it would certainly move us to it. We would be doing our due diligence. I think that we do have the funds that we could use out of our current surplus. And maybe Julia could confirm that. And if this body said, yes, let's do this work and get that report and we'll and we'll move forward, then we'll do so right away.

[0:10:57] Voice 8: if you want to get um some more um full reporting as we normally would because that isn't time

[0:11:04] Voice 8: compressed um we would do that certainly i think we might miss the the march board of governors

[0:11:10] Voice 8: window um so i hate to be pressuring but i do think this is an opportunity and certainly worthy

[0:11:15] Voice 8: of your conversations now as you you're going to come up with questions for me and i'm not an

[0:11:21] Voice 8: an insurance expert. So I'll do my best. But anyway, that's the that's the question in front

[0:11:27] Voice 8: of the FPC today. Thank you. Chair Grove.

[0:11:30] Trustee Grove: Thank you. CAO, that's pretty exciting stuff. And I see

[0:11:36] Trustee Grove: Peter Lackham and then trustee Brent have both had their hands up. So Peter, to you.

[0:11:41] Trustee Luckham: Thank you, Mr. Chair. And I'm just going to cut to the chase. And we can certainly answer

[0:11:47] Trustee Luckham: to posit some questions with respect to I would like to make a motion. I would move

[0:11:54] Trustee Luckham: that the FPC ask staff to enter into an arrangement, an agreement to provide an actual actuaries

[0:12:04] Trustee Luckham: study for the MIA to secure insurance for the Island Trust.

[0:12:12] Trustee Luckham: us i'll

[0:12:13] Trustee Grove: second sorry if i may just a friend you might want to say you know between seven and nine

[0:12:18] Trustee Grove: thousand dollars i would think

[0:12:19] Trustee Luckham: oh yeah up to up to ten thousand dollars actually was what i was

[0:12:22] Trustee Luckham: going to say sorry okay i'll

[0:12:23] Voice 12: second that chair growth thank you very much um and uh

[0:12:28] Voice 10: chair if i

[0:12:29] Voice 10: may peter yes you either uh um chair luck could you either either provide that to me by email or

[0:12:38] Voice 10: chat, or perhaps you could repeat it to me slowly.

[0:12:41] Trustee Luckham: I will put it into the chat right now.

[0:12:43] Voice 10: Thank

[0:12:43] Trustee Grove: you. Thank you. And Sue Ellen, I believe you had something to say. And then Julia Moves.

[0:12:50] Voice 6: Yeah, thank you. I'm just delighted to see this come before the Financial Planning Committee. It

[0:12:55] Voice 6: was at least a year and a half ago that I attended, I believe it was Tom Barnes presenting at

[0:13:03] Voice 6: at Unionist BC Municipalities, and he presented that he wanted to, or that the organization MIA

[0:13:12] Voice 6: was moving towards ensuring First Nations communities, and he was extending an invitation

[0:13:19] Voice 6: to various other kinds of, that they were going in new directions. Thank you, and I support this.

[0:13:26] Voice 6: Oh, by the way, can

[0:13:28] Voice 6: I just say, I just looked it up, and for a $7,000 to $10,000 cost,

[0:13:33] Voice 6: we could potentially save quite a bit of money.

[0:13:37] Voice 6: It looks like our costs would be estimated

[0:13:39] Voice 6: to go up 22% for insurance this year.

[0:13:42] Voice 6: Thank you.

[0:13:43] Trustee Grove: Thank you.

[0:13:44] Trustee Grove: We've got Julia and then Dan Rogers on the list.

[0:13:46] Voice 2: Thanks, Mr. Chair.

[0:13:47] Voice 2: I just wanted to remind the committee

[0:13:50] Voice 2: that FPC also gave direction to staff

[0:13:52] Voice 2: to engage in a self-insurance study

[0:13:54] Voice 2: with our current insurance brokers.

[0:13:57] Voice 2: We can absolutely pursue both of these options

[0:14:00] Voice 2: at the same time,

[0:14:01] Voice 2: but if the committee would like to would like staff to stop pursuing that avenue in favor of

[0:14:07] Voice 2: insurance with MIA then direction for that would be required. Thank

[0:14:12] Trustee Rogers: you. Dan Rogers.

[0:14:15] Trustee Rogers: Thanks. I have three things. I was going to make that point from Julia Moms and I think we

[0:14:19] Trustee Rogers: probably pause the the self-insurance study while we get the results of this. I'm very supportive

[0:14:26] Trustee Rogers: about this, but just two questions I have.

[0:14:29] Trustee Rogers: Well, one point and one question,

[0:14:31] Trustee Rogers: or maybe they're both questions.

[0:14:33] Trustee Rogers: First is, can the FPC actually authorize

[0:14:36] Trustee Rogers: the expenditure of money?

[0:14:37] Trustee Rogers: And if not, do we need the EC to do an RWM

[0:14:42] Trustee Rogers: to follow up on this?

[0:14:44] Trustee Rogers: So that's a question, it's not a statement

[0:14:45] Trustee Rogers: because I am supportive of the motion.

[0:14:47] Trustee Rogers: The second question I have is just in terms

[0:14:51] Trustee Rogers: of our current insurance that we had to enter into,

[0:14:56] Trustee Rogers: do i if they offer us insurance are we able to cancel our other insurance or or will that just

[0:15:02] Trustee Rogers: i guess that'll become clearer as we explore this um as i think um so if either if you can answer

[0:15:10] Trustee Rogers: either of those questions it'll be awesome if julia answered both of those yeah okay yeah i can

[0:15:15] Voice 2: so your first question about whether or not fpc can authorize spending of these funds um our policy

[0:15:20] Voice 2: currently only gives guidance to go to executive committee or council if we're going planning to

[0:15:26] Voice 2: overspend against budget to a certain magnitude. This study does not reach that magnitude. It's

[0:15:30] Voice 2: $20,000 in our policy. Also, you know, another guideline for assessing this is whether or not

[0:15:37] Voice 2: we have a line item in the existing budget against which we could apply these costs.

[0:15:42] Voice 2: The Islands Trust has contracted services as a line item in the budget. This essentially is

[0:15:47] Voice 2: kind of a slush fund that you can use for any activity that is being undertaken by a contractor.

[0:15:52] Voice 2: A bit of a loophole in our budget there. So we can certainly apply it to that and be in a good space. I always suggest just for good purposes, you know, best practices for transparency to let other governing bodies know what's going on. So certainly executive committee would be apprised.

[0:16:11] Voice 2: so

[0:16:12] Trustee Rogers: if i could just before you move off that topic so effectively what we're doing is supporting staff

[0:16:19] Trustee Rogers: and doing what they're doing because this this is actually within the realm of what staff could do

[0:16:25] Trustee Rogers: and our senior staff could approve in any that's which is fine i'm fine with that i just wanted to

[0:16:30] Trustee Rogers: make sure we covered off our bell no

[0:16:32] Trustee Grove: correct and if i may interrupt just for a moment and julia we

[0:16:35] Trustee Grove: have a line item it's called insurance i mean there's no reason at all it wouldn't couldn't

[0:16:39] Trustee Grove: be charged the insurance account yeah

[0:16:42] Voice 2: i don't think uh a line item is a problem in this situation

[0:16:45] Voice 2: we're just fine right

[0:16:46] Trustee Rogers: so what was the second point um just our current insurance and how we get out

[0:16:51] Trustee Rogers: of it if we decide to do this but that it's again that's a longer term problem yeah and certainly

[0:16:56] Voice 2: we'd be able to cancel our existing insurance policy there would be a penalty um which is not

[0:17:01] Voice 2: unusual when you cancel policies early um but it would be possible and the the amount of the

[0:17:06] Voice 2: the penalty, I believe, would just depend on when we cancel and how much is remaining in the

[0:17:10] Voice 2: insurance term.

[0:17:11] Voice 8: And I think we have an annual policy, right? We go through this every year. So

[0:17:15] Voice 8: by the time everything's done and dusted, it might be a year out anyway, even, you know,

[0:17:19] Voice 8: even if things go well. I mean, we're hopeful things go well, but we're studying the issue

[0:17:24] Voice 8: to see if it could go well. Right. Okay.

[0:17:27] Trustee Grove: Thank you. Those are my questions.

[0:17:29] Trustee Grove: Thank you. Any other concerns or questions? We have a motion before us, which I hope everyone's

[0:17:39] Trustee Grove: received. FPC requests staff to enter into an agreement of up to $10,000 to provide an

[0:17:46] Trustee Grove: actuaries study by the Municipal Insurance Association to secure the provision of insurance

[0:17:54] Trustee Grove: to the Islands Trust. Does that cover it? I will call the question then. All those in favor?

[0:18:03] Trustee Grove: I contrary that carries thank you so much and thank you Russ for doing that this I think

[0:18:11] Trustee Grove: I'd

[0:18:11] Trustee Rogers: like to make another motion and just for the direction of staff I'd like to move that

[0:18:17] Trustee Rogers: the FPC request staff to put on hold the the investigation of self-insurance until the

[0:18:26] Trustee Rogers: the conclusion of the work related to the MIA.

[0:18:31] Voice 12: I'll second.

[0:18:34] Trustee Grove: And Robert, do you have that?

[0:18:39] Trustee Grove: Robert?

[0:18:40] Voice 10: I was typing it, yes.

[0:18:42] Voice 10: I've got most of it, I believe,

[0:18:45] Voice 10: to the conclusion of.

[0:18:48] Trustee Grove: Tell us when you're happy.

[0:18:54] Voice 10: I, that's what I have at the moment on the screen.

[0:18:57] Voice 10: I may have missed the last part.

[0:19:01] Trustee Rogers: No, I think that's fine.

[0:19:03] Trustee Rogers: I'm happy to have some words to my thing,

[0:19:05] Trustee Rogers: but that's what I intended.

[0:19:07] Trustee Rogers: So

[0:19:08] Trustee Grove: that's moved and seconded. Any discussion? All those in favor? Contrary?

[0:19:22] Voice 4: Sorry,

[0:19:22] Trustee Grove: somebody's unmuted. So we've called it. I think that carries unanimously. Thank you very much.

[0:19:30] Trustee Grove: Thank you, Chair Groff.

[0:19:31] Trustee Grove: Thank you. That's excellent. Excellent news. So we have a briefing before us at 5.1.b,

[0:19:42] Trustee Grove: possible changes to accumulated surplus briefing. So Julia, would you like to take us through that,

[0:19:48] Trustee Grove: please?

[0:19:50] Voice 2: Sure. So at the last FPC meeting in November, there was a motion put on the table

[0:19:56] Voice 2: that reads that financial planning committee request staff provide a recommendation in regards

[0:20:00] Voice 2: to the minimum balance of the general surplus of 15% to 20%

[0:20:05] Voice 2: and the ramifications thereof.

[0:20:07] Voice 2: The committee at the time decided there wasn't enough,

[0:20:10] Voice 2: there hadn't been enough time to review the report

[0:20:13] Voice 2: that staff provided in order to decide on that motion.

[0:20:16] Voice 2: And so it was tabled and it's being brought back

[0:20:18] Voice 2: to this meeting.

[0:20:19] Voice 2: I did speak to the surplus policy analysis

[0:20:23] Voice 2: at the previous meeting.

[0:20:24] Voice 2: So I don't intend to speak to it again here

[0:20:26] Voice 2: unless there's direction to do so.

[0:20:28] Voice 2: But based on the number of questions I got

[0:20:30] Voice 2: from the committee it seems as if everyone has read it so I'm happy to just take questions at

[0:20:34] Voice 2: this point

[0:20:36] Trustee Grove: questions Paul

[0:20:38] Voice 12: Brent um hi thank you uh Miss Mont why is there no recommendation on this

[0:20:47] Voice 12: I would have thought that um there'd be at least some form of a of a recommendation after

[0:20:56] Voice 12: the length of time we've been looking at this I know you've provided a lot of options

[0:21:00] Voice 12: and I have no doubt that you are the consummate expert, at least you are in my view. Can you

[0:21:07] Voice 12: advise why there was some reluctance to provide recommendations? Thank you, Paul. I had the same

[0:21:14] Voice 12: question.

[0:21:15] Voice 2: Yeah, so the motion that was passed or the direction that was given to staff was simply

[0:21:19] Voice 2: to provide options such that FPC could make some decisions. Certainly, I can bring forward

[0:21:26] Voice 2: recommendations, if there's direction to do that. I would suggest that most of the items I have put

[0:21:31] Voice 2: in the options briefing are there because I think they're good recommendations for the most part.

[0:21:38] Voice 2: But certainly, you know, I can bring back recommendations in a more solid format,

[0:21:42] Voice 2: but that's why it's options and not recommendations is simply the way that the

[0:21:46] Voice 2: resolution was phrased.

[0:21:48] Voice 12: Okay. Well, I just, I'd note one thing is in your excellent report,

[0:21:53] Voice 12: You've said, in short, the balance of funds held at the trust during the time frame covered five to 5.8 months of cash needed as compared to the minimum recommended balance of three months.

[0:22:04] Voice 12: This analysis shows the trust is very unlikely to experience lack of cash resources to fund operations in the first quarter.

[0:22:11] Voice 12: And so you speak to a number of those things, but I think it would be very helpful if we were to actually pursue a reduction in the fund to reflect the fact that we don't really need a five to 5.8 months of cash when the target is three months.

[0:22:31] Voice 12: And we really don't need the Islands Trust to become the bank for property taxes.

[0:22:38] Voice 12: Paul, what

[0:22:38] Voice 12: page were you on?

[0:22:41] Voice 12: Sorry, it would be page 19 of our agenda package and in the very first paragraph.

[0:22:57] Trustee Grove: Are you asking for a comment

[0:23:00] Voice 12: on that or?

[0:23:01] Voice 12: This isn't, but one thing I will note is this is not a criticism whatsoever of staff.

[0:23:07] Voice 12: up i want to be very clear there um but it is kind of a me pining for uh movement in this area

[0:23:16] Voice 12: of one way one way or another we've been uh i've been uh discussing this particular topic for i

[0:23:23] Voice 12: think close to five years now i'm delighted um with the amount of progress we've made over the

[0:23:29] Voice 12: last uh year and a half under ms mob's tutelage and i just i'm sort of anxious to kind of get

[0:23:35] Voice 12: get going with a recommendation that we can start to discuss

[0:23:38] Voice 12: in terms of the requisite amount of surplus

[0:23:45] Voice 12: that we really truly require, thanks.

[0:23:48] Voice 12: Dan Rogers.

[0:23:51] Trustee Rogers: I have some comments, but a couple of questions first.

[0:23:54] Trustee Rogers: On that same place that Trustee Brent was talking about,

[0:23:57] Trustee Rogers: and I didn't quite understand how you went from balances

[0:24:02] Trustee Rogers: range from 1.6 to 2.3, which represents an additional

[0:24:06] Trustee Rogers: two to 2.8 of spending based on cash flow, but then it goes on to say covered five to 5.8 months

[0:24:14] Trustee Rogers: of cash needed as compared to minimum recommended. Can you, can you explain that? That seemed to me

[0:24:20] Trustee Rogers: to be a bit of a contradiction, although maybe I'm misreading it. Julia.

[0:24:28] Voice 2: Yeah. So in the first

[0:24:29] Voice 2: sentence where I give the dollar value and I say it represents an additional two to two and a half

[0:24:36] Voice 2: months um so and then i move on to talk about five to 5.8 are you looking at those two different

[0:24:41] Voice 2: numbers and asking for

[0:24:43] Voice 2: the distinction okay so the the five to 5.8 is the um dollars that we

[0:24:48] Voice 2: have in totality the policy requires three months so if you take five months less the three months

[0:24:54] Voice 2: requirements you get to the two months so it's the the total five to 5.8 minus the minimum policy

[0:25:00] Voice 2: gets you to the other number.

[0:25:04] Trustee Grove: I have a follow up on that, if I may.

[0:25:06] Voice 2: Certainly. I'm not following.

[0:25:09] Trustee Grove: So, sorry, wait till Trustee Rogers is happy

[0:25:12] Trustee Grove: and then I have a follow up.

[0:25:13] Trustee Rogers: What you're saying is that our surplus cover,

[0:25:16] Trustee Rogers: what we had in our surplus balance or our reserve surplus,

[0:25:20] Trustee Rogers: whatever we call it, was 2.2.8,

[0:25:23] Trustee Rogers: but we had actual other cash that made 5.5

[0:25:26] Trustee Rogers: that totaled up to another three months.

[0:25:28] Trustee Rogers: Is that what you're saying?

[0:25:29] Trustee Rogers: Right.

[0:25:29] Voice 2: We had five to five point eight months of cash.

[0:25:33] Voice 2: And based on the policy, we only need three. Therefore, it's an excess of two to two point eight months.

[0:25:42] Trustee Grove: So just for clarification, one month of expenses is what?

[0:25:47] Voice 2: I don't know if I noted that in here in particular. I'd have to pull up.

[0:25:51] Voice 2: I saw it

[0:25:51] Trustee Rogers: somewhere. It was like $800,000, $600,000 to $800,000.

[0:25:56] Trustee Grove: That makes sense to me. And if that is the case, if we turn to page 30, which has the approved budget history, and we look at the surplus funds, I don't see that surplus funds exceeding the three months requirement over the years.

[0:26:19] Voice 2: So the numbers there are going to be reflective of March 31st. The analysis that I performed is as at July, which is the point in time when our cash balances are at their lowest point, because we've expended the prior year tax receipt money and are still waiting on the next years.

[0:26:37] Trustee Grove: Well, if I may respond to that, cash balances, of course, are going to fluctuate as we know they do. So there needs to be a point in time as to when we measure this balance. Seems to me that the logical times for that measurement would be at our year end, March the 31st. So I look at that history and I think to myself, you know, we're right on the target, on the mark.

[0:27:03] Trustee Grove: um

[0:27:05] Voice 2: so march 31st of each year is not going to be the time of year when our cash resources are at

[0:27:11] Voice 2: their lowest so for the

[0:27:13] Voice 2: purposes of determining whether or not we're in a position of risk

[0:27:15] Voice 2: um it's best to look at the time of year when your cash balances are at their lowest when you're

[0:27:21] Voice 2: bound to be the most stretched and that is typically right before we receive our property

[0:27:26] Voice 2: tax dollars which tends to be uh late july uh early august at the latest and so that's the

[0:27:32] Voice 2: a point in time where I did my analysis to see what is our lowest cash balance at that point

[0:27:39] Voice 2: in time for a number of years. And is that lowest point of cash balance putting us in a place of

[0:27:45] Voice 2: risk? Are we actually in a place where, you know, and do we have too much potentially? Do we have

[0:27:51] Voice 2: more than we need at that point? And so that's why I chose that time of year is because that's

[0:27:56] Voice 2: where we would be in the most risk if we were in a place of risk at all.

[0:27:59] Trustee Grove: If I may continue and

[0:28:01] Trustee Grove: And respectfully, as they say, I hate it when people say respectfully, because then the next

[0:28:05] Trustee Grove: thing that's going to sound, it's not respectful at all. But anyway, so, so I don't quite follow

[0:28:13] Trustee Grove: that maybe I'm being a bit dense. But if we take the year end figure of, you know, let's say 1.92

[0:28:18] Trustee Grove: million dollars that we've got at the end of March, if we were going to reduce our cash requirement

[0:28:25] Trustee Grove: from from by a couple of months of spending um to reflect march that is then going to be reflected

[0:28:33] Trustee Grove: at the year end so we're going to say we don't actually need 2.1 million we thought um uh we'll

[0:28:38] Trustee Grove: have um whatever is going to be suggested here maybe two months of expenses so you can't ignore

[0:28:45] Trustee Grove: the the year-end figure and if i'm being dense i apologize but that's my nature um yes certainly

[0:28:53] Voice 2: at that point you would want to have enough money to carry you through the next three months

[0:28:59] Voice 2: and so in doing you know the analysis I was looking to see did we have enough money to

[0:29:03] Voice 2: carry us through the next three months and in doing that I looked at where we landed after

[0:29:07] Voice 2: those three months before we got the next year's property tax assessment and whether or not we had

[0:29:13] Voice 2: enough had too much had too little so certainly you know it that's the starting balance is the

[0:29:20] Voice 2: the year end. But it's the three months after year end where we may run short of cash. And so that's

[0:29:26] Voice 2: the time I was looking at.

[0:29:28] Trustee Grove: And where we may have excess cash, as it appears we do. But I would be,

[0:29:35] Trustee Grove: I mean, unless you are going to, unless our policy is going to say we must never have less

[0:29:40] Trustee Grove: than three months at the lowest point, that's not going to add up. It's going to have to be

[0:29:49] Trustee Grove: be a fluctuating target, I think. I would not, just to be clear, I would not be comfortable

[0:29:57] Trustee Grove: with less than three months of expenses at all.

[0:30:00] Trustee Grove: year end and i feel that what might be proposed here would reduce our year-end balance um below

[0:30:08] Trustee Grove: what it is now and i am okay with how it is now oh sorry but i got uh russ and then paul

[0:30:19] Voice 8: um mr chair i you know that the direction of the committee was to provide um financial expertise

[0:30:26] Voice 8: t's associated with the surplus and that's what julia's provided what she hasn't worked into

[0:30:32] Voice 8: this reporting um is things that are external to that and that is um what monies do you want to

[0:30:40] Voice 8: have to whatever degree fpc or trust council feels is appropriate for unexpected things which

[0:30:48] Voice 8: which are governance or political considerations like pandemics or building a

[0:30:55] Voice 8: new building or renovating buildings here.

[0:30:59] Voice 8: So the other non-accountancy considerations of having extra money on hand,

[0:31:05] Voice 8: I can't really say what that should be. We have where it is right now.

[0:31:09] Voice 8: It's really for you to feel where you're more comfortable,

[0:31:11] Voice 8: but I think it's more than simply how much money we have at the end of July.

[0:31:16] Voice 8: at least that conversation should occur that other things that governments use some surplus or they

[0:31:24] Voice 8: go borrow as they consider some of these other things so I just offer that and this was a

[0:31:32] Voice 8: briefing I would have said if this was an RFD with a particular recommendation I would have

[0:31:36] Voice 8: written in some of those things in the CAO comments but as the committee substantially

[0:31:41] Voice 8: wanted to discuss this and see where the grain of thought was, Julia's briefing was provided.

[0:31:47] Voice 8: Thank you very much.

[0:31:48] Trustee Grove: Thank you. We've got Trustee Brent on the line.

[0:31:51] Voice 12: So, yeah, I'm just thinking, you know, the purpose of this back in 2006 was to provide

[0:31:59] Voice 12: a necessary bridge from the time we start our fiscal year to receipt of tax funds. So

[0:32:09] Voice 12: So we start our fiscal year, as we all know, April 1st, but we don't receive tax funding until late July and we receive our full year's tax funding in late July.

[0:32:22] Voice 12: July. So if you look at the simple math, at the point in time of the next year, March of the next

[0:32:33] Voice 12: year, we will have had nine months of expenses and we will have had 12 months of tax requisition

[0:32:44] Voice 12: to fund it. So the fact that Julia chose July as the period we should be looking at is

[0:32:52] Voice 12: is absolutely correct. Now, it is true that we may want to build an Islands Trust building,

[0:33:02] Voice 12: but it's unlikely. And we've already spent, I think it was $300,000 in taxpayers' money on

[0:33:09] Voice 12: renovating an office. And that lease comes up for renewal, I guess, in a little over three years.

[0:33:16] Voice 12: years, I can't see us spending any more money on renovations. And we've just gone through a

[0:33:23] Voice 12: pandemic and we're not through it yet. But I really don't think we've ended up spending a lot

[0:33:31] Voice 12: more money. In fact, I think we've spent less money because we've been fully funded by tax

[0:33:39] Voice 12: tax dollars. So I think we have to, at some point in time, get to the basics on this and actually

[0:33:45] Voice 12: make a decision based on a recommendation from someone that has expertise. Thank you.

[0:33:54] Voice 12: Thank you. Tahira?

[0:33:57] Voice 7: Thanks. I was just wondering, is the general surplus not only to get us through

[0:34:01] Voice 7: the three months between tax requisitions, but also for rainy day funds or emergencies or

[0:34:09] Voice 7: or any unforeseen expenses?

[0:34:14] Trustee Grove: May I speak?

[0:34:17] Trustee Grove: CAO Russ, you might like to talk to us

[0:34:21] Trustee Grove: about what's happening in some municipalities

[0:34:23] Trustee Grove: around the country and the province.

[0:34:26] Trustee Grove: It's my understanding, and I know we're not a municipality,

[0:34:28] Trustee Grove: but nevertheless, there are municipalities

[0:34:30] Trustee Grove: who are in dire straits because they are not collecting

[0:34:33] Trustee Grove: the kind of property taxes they had anticipated

[0:34:36] Trustee Grove: because so many people are not able to afford

[0:34:38] Trustee Grove: to pay those taxes.

[0:34:39] Trustee Grove: So they, I understand, I don't know if this is true, that some municipalities have basically handed themselves back to the province.

[0:34:49] Trustee Grove: Now, we are in the fortunate situation that it's the province that pays our property taxes.

[0:34:54] Trustee Grove: We send them a bill and they send us a check.

[0:34:57] Trustee Grove: But governments being governments, I mean, that sort of thing can change at the flick of a wrist.

[0:35:04] Trustee Grove: and personally i would rather be self-sustaining um rather than rely on that goodwill but those

[0:35:11] Trustee Grove: are just some thoughts russ could you speak to that um

[0:35:15] Voice 8: i i can i mean we do have starkly

[0:35:20] Voice 8: different i wouldn't draw too linear a line between you know local municipalities and us

[0:35:25] Voice 8: they have a significant revenue streams from people that actually use their facilities and

[0:35:29] Voice 8: so forth so they have to maintain those facilities structures and engineering but have less income to

[0:35:39] Voice 8: address those things so we have a significant difference there and indeed you can see the

[0:35:47] Voice 8: effects of that because I forget the exact name of the program but there's a federal program that

[0:35:52] Voice 8: provided funds to municipalities of which they've taken those funds and dispersed them across the

[0:35:58] Voice 8: province and the islands trust um didn't qualify for those because we simply just don't have the

[0:36:02] Voice 8: hard services that um that are applicable so really that's um i think you're going to have to

[0:36:09] Voice 8: just look at your current situation um and you know the the extent that we have you know capital

[0:36:18] Voice 8: and how much we have to uh you know maintain that capital which is minimal frankly um you know the

[0:36:24] Voice 8: the buildings and so forth at the Allen's Trust.

[0:36:28] Voice 8: Those are your key considerations.

[0:36:33] Trustee Grove: I'll fill in that blank since no one's got their hands up.

[0:36:36] Trustee Grove: I suppose what would be helpful is an actual recommendation.

[0:36:40] Trustee Grove: I mean, I'd like to see what the number looked like

[0:36:42] Trustee Grove: and what that would translate to, particularly at year end,

[0:36:46] Trustee Grove: because I do think the year end number is important.

[0:36:49] Trustee Grove: Over to you, Peter Luckerman.

[0:36:50] Trustee Grove: Actually,

[0:36:51] Trustee Luckham: Dan Rogers had his hand up.

[0:36:53] Trustee Luckham: Okay,

[0:36:53] Trustee Grove: Dan, Peter, then Laura.

[0:36:57] Trustee Rogers: Thanks. And I'm sorry, I am a second-time speaker, so I'll try and be brief.

[0:37:03] Trustee Rogers: But I tend to agree with Trustee Grove that three months is a good number to have,

[0:37:10] Trustee Rogers: because I think there are, if you look at the reports, particularly on page 21,

[0:37:15] Trustee Rogers: there were six reasons given. And while I agree with Trustee Brent, it doesn't look like we're

[0:37:20] Trustee Rogers: any danger of running out of money in the interim. And I think the reports make that clear. So I

[0:37:26] Trustee Rogers: I agree with that point that one of those dangers it doesn't appear to be

[0:37:29] Trustee Rogers: present or hasn't arisen

[0:37:30] Trustee Rogers: yet. There are a number of other reasons there to continue to have a substantial amount of money in

[0:37:38] Trustee Rogers: our reserve fund or our surplus funds. I do believe that we need to really strongly consider

[0:37:44] Trustee Rogers: reconsider how we use our surplus funds because I noted from our current budget that

[0:37:54] Trustee Rogers: At the end of the year, if we actually drive through it all down, we're probably down to about 85% or somewhere in that range of the surplus, because we've been using it as a piggy bank.

[0:38:05] Trustee Rogers: And I think we need to start to reconsider using it in that way without making account for the fact that we're creating ongoing spending opportunities that we've funded out of surplus.

[0:38:22] Trustee Rogers: and then they come up in the next year

[0:38:24] Trustee Rogers: and then all of a sudden we got to figure out a way

[0:38:26] Trustee Rogers: to pay for those ongoing spending.

[0:38:28] Trustee Rogers: And so I would be much more inclined to take some time

[0:38:32] Trustee Rogers: to look at how we use the surplus fund

[0:38:35] Trustee Rogers: rather than amending how much money is in there

[0:38:37] Trustee Rogers: because how much is proposed to be held in it.

[0:38:42] Trustee Rogers: Because the trust in a time that I wasn't a trustee,

[0:38:46] Trustee Rogers: the residents of the trust went to great,

[0:38:50] Trustee Rogers: made a great sacrifice in the middle part of the two decades ago, the 2005 to 2008, I think,

[0:38:58] Trustee Rogers: with substantial tax increases in order to build that surplus up, in order to create a buffer for

[0:39:06] Trustee Rogers: us. But I think we've had a tendency to use it as a bit of a slush fund. So that's my concern on

[0:39:13] Trustee Rogers: on this issue so um

[0:39:15] Trustee Grove: so peter luckham and then laura bushekin um

[0:39:19] Trustee Luckham: thank you chair and i think

[0:39:21] Trustee Luckham: well two things um i i agree with dan and i agree with uh trustee brent um trustee brent you might

[0:39:26] Trustee Luckham: want to make a note of that um i think that um indeed we need to think about as dan has just said

[0:39:33] Trustee Luckham: about how we spend this money and and why this money exists even um and if we call this a

[0:39:41] Trustee Luckham: contingency fund, that's fine. But I think again, we need to determine what it is that we,

[0:39:47] Trustee Luckham: how much money is in that and what it is that we use it for. Because I think that what,

[0:39:55] Trustee Luckham: I'm more than sympathetic with Trustee Brent's proposition that we should be reducing this,

[0:40:02] Trustee Luckham: because indeed every single family in British Columbia, in Canada, manages a family

[0:40:10] Trustee Luckham: budget. If you want to build a house, you budget in advance for it. If we want to build a new

[0:40:14] Trustee Luckham: building or do something else that needs to be in the strategic plan, that needs to be budgeted,

[0:40:19] Trustee Luckham: and we need to have a purposeful intent to accumulate a surplus specifically for whatever

[0:40:24] Trustee Luckham: those tasks are. It's convenient, as Trustee Rogers just said, to have a piggy bank in order

[0:40:32] Trustee Luckham: to be able to do these things, but the truth is that isn't necessarily realistic, and maybe we

[0:40:38] Trustee Luckham: We just need to be, as a public agency, using taxpayers' funds, need to be a bit more methodical and planning with respect to that.

[0:40:48] Trustee Luckham: So I think there's a lot of things here to consider.

[0:40:53] Trustee Luckham: But that said, you know, I have a little difficulty with suggesting, Trustee Brent, that this has been talked about for six years to change this.

[0:41:03] Trustee Luckham: Well, really, nobody has really come forward until recently to say, do this.

[0:41:08] Trustee Luckham: And now here we are at the do this, and it's been very quick to get to our table.

[0:41:13] Trustee Luckham: Anybody at any point in time could have recommended a new number to reduce the budget, the surplus.

[0:41:20] Trustee Luckham: And so I think it is timely for us to really consider what that new number needs to be.

[0:41:25] Trustee Luckham: I do think it needs to be smaller than it presently is.

[0:41:28] Trustee Luckham: But there is the accumulated surplus that happens during a year because we simply don't

[0:41:34] Trustee Luckham: expend it.

[0:41:34] Trustee Luckham: And I'm worried about how we expend that at the end of the year.

[0:41:38] Trustee Luckham: when we're offsetting the budget with that surplus.

[0:41:42] Trustee Luckham: I don't think that was not the intent of the budgeting process,

[0:41:46] Trustee Luckham: to create a surplus to offset the next year,

[0:41:50] Trustee Luckham: and we've got ourselves trapped into that.

[0:41:52] Trustee Luckham: So I'm not sure what the answers are here,

[0:41:54] Trustee Luckham: but I would be thrilled if we can actually conclude this conversation,

[0:41:58] Trustee Luckham: reduce the number, and move on,

[0:42:00] Trustee Luckham: because there's lots of things to talk about here.

[0:42:03] Trustee Grove: Laura Bushekin and, oh, sorry, well, Julia, you go first.

[0:42:08] Trustee Grove: then Laura Bushekin and then Tahira.

[0:42:11] Voice 2: I do just want to point out, and I think this committee

[0:42:14] Voice 2: is well aware, we have not hit that minimum balance target for a number of years now

[0:42:20] Voice 2: at budget time. We've fallen short by a few percentage points fairly consistently, I think,

[0:42:26] Voice 2: for the last three years. The current year, the surplus balance expectation is sitting at around

[0:42:32] Voice 2: 85% of the minimum recommended. So if that number in the policy is not amended and we choose to

[0:42:42] Voice 2: actually more rigidly comply with policy, we will be seeing a tax increase or a reduction in spending

[0:42:48] Voice 2: somewhere. I think also another point to make, part of what muddies this conversation is that

[0:42:55] Voice 2: surplus balance is not a cash balance. And our policy talks about how our surplus balance will

[0:43:01] Voice 2: cover cash needs. So it's not really congruent, which can muddy the waters a little bit. So when

[0:43:11] Voice 2: I do the calculation, the expectation of where our surplus balance will be, I try as much as

[0:43:15] Voice 2: possible to kind of align the things up a little better. It's not a perfect exercise, but I think

[0:43:21] Voice 2: that does muddy the waters a little bit. But my main point here is that if we are going to stick

[0:43:26] Voice 2: with the three months of surplus, we're going to have to reduce the draws on surplus, increase

[0:43:32] Voice 2: taxation, or reduce spending.

[0:43:35] Trustee Grove: Thank you, Julia. Laura, and followed by Tahira. Laura Boucherkin,

[0:43:41] Trustee Grove: that is.

[0:43:42] Trustee Busheikin: Hi. The conversation's kind of moved quite a bit since I put my hand up, but just

[0:43:50] Trustee Busheikin: in Tahira raised a point about, you know, what she called a rainy day fund or a contingency fund,

[0:43:55] Trustee Busheikin: And maybe that's, yeah, I don't think that we have any sort of shared consensus about how much that should be or what it should be for if it's to one day build a building or if it's if there's a fire in our office and we have to relocate.

[0:44:13] Trustee Busheikin: Like, is it a sort of emergency fund? Is it a unanticipated spending need fund? Is it a, you know, pandemic? But I think that it's good financial planning, I think, to have that. And I don't know how much that should be. So that would be something, you know, I think I'd like us to look at.

[0:44:35] Trustee Busheikin: and um indeed the amount in the surplus is one thing and the way we spend it is another thing

[0:44:43] Trustee Busheikin: and i think if yeah ultimately i'd like to look at both and and and just to throw out a question

[0:44:51] Trustee Busheikin: on the other hand in some ways i'm still not clear on what is the problem we're solving

[0:44:58] Trustee Busheikin: it isn't like it's muddy around our surplus but i don't actually necessarily see any solution

[0:45:04] Trustee Busheikin: making it less money and because it just is complicated.

[0:45:11] Trustee Busheikin: So I'm actually still not entirely sure

[0:45:14] Trustee Busheikin: what is the problem we're solving

[0:45:16] Trustee Busheikin: like a real problem that is holding back us being effective.

[0:45:20] Trustee Busheikin: And maybe we want to put this on a hold

[0:45:22] Trustee Busheikin: and have it be part of the management and operations review

[0:45:28] Trustee Busheikin: because it does tie into other things.

[0:45:31] Trustee Busheikin: Thanks.

[0:45:32] Trustee Busheikin: Thank you.

[0:45:34] Trustee Grove: I got a note from Deb Morrison. Deb, I'm sorry I haven't seen you. I have not seen

[0:45:40] Trustee Grove: your hand up. So if you want attention, butt in or send me a note as you have. So I've got

[0:45:49] Trustee Grove: Tahira and then followed by Deb Morrison. There she is.

[0:45:58] Voice 7: Do you want me to go then?

[0:45:59] Trustee Grove: Yes, please. But I've just seen

[0:46:01] Trustee Grove: Deb Morrison arrive.

[0:46:03] Voice 7: So I think part of the, I read a lot about the report and I think part of it, I was understanding

[0:46:09] Voice 7: that there's been a lot of updates and how we account for capital assets and the policy,

[0:46:15] Voice 7: this policy in particular. So I was thinking that maybe to better understand surplus and how to

[0:46:20] Voice 7: approach it, we first need to update the surplus policy to reflect our current practices. So I was

[0:46:26] Voice 7: thinking of making a motion to that effect.

[0:46:28] Trustee Grove: Please do if you would like to.

[0:46:29] Voice 7: That FPC request staff to recommend changes to policy 6.5.1 for review by FPC.

[0:46:38] Trustee Grove: Is there a seconder? Peter Luckham. So, would you like to speak to your motion,

[0:46:47] Trustee Grove: Trustee Rockefeller?

[0:46:48] Voice 7: No, I think I captured it just before. Thanks.

[0:46:51] Voice 10: Trustee Rockefeller, could you please repeat that?

[0:46:53] Voice 10: sure

[0:46:54] Voice 7: um that fpc requests staff to recommend changes to policy 6.5.1 for review by fpc

[0:47:03] Voice 7: sorry

[0:47:04] Voice 10: um my brain's not working could you just repeat that slowly

[0:47:07] Voice 10: yes

[0:47:08] Voice 7: um that fpc

[0:47:11] Voice 7: requests staff to recommend changes to policy 6.5.1 for review by fpc thank you

[0:47:34] Trustee Grove: Thank you. Now, I did have Deb Morrison on the line, but I noticed, Deb, did you want to discuss this particular motion? Yes, then, Deb, please, followed by Laura Bushekin.

[0:47:46] Voice 14: Yeah, so I'll come back afterwards as well because I have something not related to the motion, but related to the motion, I totally support this because I think bringing in the current policy in line with what we're actually using the surplus for or should be using the surplus for,

[0:47:59] Voice 14: or really having that conversation a little bit more clearly

[0:48:02] Voice 14: would be helpful.

[0:48:03] Voice 14: So recommendations on how we have used the surplus

[0:48:06] Voice 14: and how we may want to adjust the policy

[0:48:09] Voice 14: to limit that or define it.

[0:48:11] Voice 14: One of the things I would like to suggest in that work

[0:48:15] Voice 14: would be that from the briefing,

[0:48:18] Voice 14: and thanks very much, Director Mops for the briefing,

[0:48:21] Voice 14: but the briefing suggests

[0:48:23] Voice 14: that there are two different categories of use,

[0:48:26] Voice 14: two big bins of use.

[0:48:27] Voice 14: one is the actual legal requirement to have funds to cover this period this three month period and

[0:48:34] Voice 14: one is the sort of slush fund the kitty and the the policy governing that sort of kitty portion

[0:48:42] Voice 14: i think is different than the policy governing just having that three month period so having

[0:48:46] Voice 14: sort of two broken up sections would be helpful thank

[0:48:51] Trustee Grove: you i got laura boucher and then peter

[0:48:52] Trustee Grove: You're welcome.

[0:48:54] Trustee Busheikin: Thank you.

[0:48:56] Trustee Busheikin: This, I support this, it just seems sensible.

[0:49:00] Trustee Busheikin: I just wonder just to make it the direction clear to staff

[0:49:05] Trustee Busheikin: if it's a friendly amendment to add the words

[0:49:07] Trustee Busheikin: and trustee Rockefeller, these are,

[0:49:10] Trustee Busheikin: I think the words are used to reflect current practices.

[0:49:16] Trustee Busheikin: So that would come after policy 6.5.1

[0:49:21] Trustee Busheikin: in the proposed motion.

[0:49:23] Trustee Busheikin: motion. So yes, to reflect current policy. So if that's a friendly amendment, that's what I'm

[0:49:30] Trustee Busheikin: suggesting just for clarity.

[0:49:32] Trustee Grove: Anybody have a problem with that? I

[0:49:35] Trustee Rogers: do. Because I think one of

[0:49:39] Trustee Rogers: the things we want to look at is I don't think we're necessarily using it properly. And I would

[0:49:44] Trustee Rogers: have, I would like staff to make recommendations, including how we're using it. Sorry, I don't mean

[0:49:51] Trustee Rogers: or jacked i know there's no people with their hands up point

[0:49:54] Trustee Busheikin: of order yes point

[0:49:55] Trustee Busheikin: of order if i

[0:49:58] Trustee Busheikin: may um i think that a friendly amendment is is up to the mover and seconder to reply to you are

[0:50:06] Voice 4: correct and

[0:50:07] Trustee Busheikin: i just would say too that i i'm just trying to be true to what i believe was trustee

[0:50:12] Trustee Busheikin: rockefeller's rockefeller's intention here and perhaps what uh trustee rogers is suggesting

[0:50:18] Trustee Busheikin: I'm suggesting could be a separate motion, but I'm not strongly wedded to any of that I'm just, I don't want to move things where they didn't start out to be.

[0:50:28] Trustee Grove: Thank you trustee Rockefeller.

[0:50:31] Voice 7: Um, I think I'd probably stick with my original motion just for clarity and.

[0:50:37] Trustee Grove: So let's leave that and then Dan you can make another motion later if you wish to do so.

[0:50:42] Trustee Grove: Is that all right.

[0:50:43] Trustee Grove: Right. So I'm going to call the question.

[0:50:49] Trustee Grove: No, Peter Luck. I'm sorry. I thought you were saying I thought that was giving me the thumbs up.

[0:50:55] Trustee Luckham: Well, yes and no. I'm pleased that we're sticking with the motion.

[0:51:02] Trustee Luckham: I think there's a I seem to recall that there was an email message that went out to all of us recently with respect to friendly amendments.

[0:51:12] Trustee Luckham: And that a motion that is moved in second is owned by the committee, and the interpretation of friendly is, you know, there's a mythology around that and a practice that has been conducted at the Islands Trust, which I don't think is right.

[0:51:33] Trustee Luckham: And so a friendly amendment at an absolute or at the absolute maximum doesn't change the intent of the motion.

[0:51:41] Trustee Luckham: motion. But of course, there's interpretation with that. So I think we just need to be careful

[0:51:44] Trustee Luckham: about that. And we should err on the side of caution with respect to that. So I just wanted

[0:51:49] Trustee Luckham: to mention that. And so I'm glad we're sticking with it. Because I think Dan was correct in his

[0:51:55] Trustee Luckham: comments with respect to the Friendly Amendment, in that I think that there's a question around

[0:51:59] Trustee Luckham: actually current practices, which is causing us to end up in this situation.

[0:52:04] Trustee Luckham: Thank you very much.

[0:52:06] Trustee Luckham: Just before you call it, as the seconder of the motion even, I'm not going to make any amendment, but I'm hoping that in the report on the recommendations with respect to changing the policy, that also what we take into consideration from what I'm hearing is some kind of clarity around contingency.

[0:52:30] Trustee Luckham: And, you know, I wouldn't be afraid of putting a number on that to say that there's a $100,000 contingency fund for those unexpected, unanticipated things, which is surprisingly, you know, close to or more than 1% already.

[0:52:46] Trustee Luckham: But whatever that magic number happens to be. And then I think that there does need to be some policy or strategy around anticipated work in the future, and building a building is a great example, then we need to plan for that.

[0:53:02] Trustee Luckham: And so then annually we need to set funding aside specifically for that, as they would do in any municipality. And then indeed, some policy around expenditures associated with that. I'm hoping that that could be incorporated.

[0:53:16] Trustee Luckham: And then I just wanted to remind the FPC, that's really significant in all of this. Every year we make a motion to borrow money in case we run out of money. That always exists, and will always continue to exist. And admittedly, we don't want to borrow money, but I think at the same time, Trustee Brennan is saying, we don't want to bank money either. So we need

[0:53:38] Trustee Luckham: to figure out where the balance is there.

[0:53:41] Trustee Grove: Okay, I want to get back to the original motion. Robert, could we have the original motion up on the board, please?

[0:53:48] Voice 10: There. I believe it is up. Can you not see it?

[0:53:51] Trustee Grove: I beg your pardon. It's up at the top there.

[0:53:54] Trustee Grove: Yes.

[0:53:54] Voice 10: And if you could clarify for me, please, there was an amendment to it that started,

[0:54:01] Voice 10: but I wasn't clear if the amendments, there's a motion to amend or not.

[0:54:07] Trustee Grove: No, I think that motion that we're going to vote on now is as is as spelt out that the financial

[0:54:13] Trustee Grove: planning committee request staff to recommend changes to policy 6.5.1 for review by financial

[0:54:19] Trustee Grove: planning committee that is the motion okay so all those in favor aye contrary Laura are you contrary

[0:54:38] Trustee Grove: Laura Bushekin are you contrary

[0:54:39] Trustee Busheikin: no I was in favor okay

[0:54:42] Trustee Grove: your hand just with

[0:54:43] Trustee Busheikin: physical hands right

[0:54:44] Trustee Busheikin: there's no

[0:54:45] Trustee Grove: physical hands and a smile and so the only uh I think um Paul you were the only contrary

[0:54:51] Trustee Grove: correct negative negative I was in favor isn't that weird so I'm getting slow um response here

[0:54:58] Trustee Grove: not only does uh trustee Morrison disappear from my screen every so often but but the response to

[0:55:04] Trustee Grove: the voting just as an observation is is delayed but I think we need to be pretty damn bloody

[0:55:10] Trustee Grove: careful of of how we vote so that carries it's unanimous thank you very much now um trustee

[0:55:17] Trustee Grove: Rogers did you wish to make another motion no I did I do chair Paul

[0:55:23] Voice 12: Brent so I posted it in the

[0:55:26] Voice 12: chat and it's really in addition to what Trustee Rockefeller is suggesting I'd like to move that

[0:55:33] Voice 12: staff provide a sensitivity analysis to show the impact of revising the surplus percentage to 15

[0:55:41] Voice 12: and 20 percent of annual expenses and this would just two two purposes for this one i've heard uh

[0:55:49] Voice 12: from um julia mobs that were currently running about 85 percent of the uh surplus value right

[0:56:00] Voice 12: now so it would seem um rather uh smart to take a look at what would happen if we if we revised our

[0:56:08] Voice 12: our surplus to a lower number than 25%.

[0:56:12] Voice 12: So we don't have to cut spending or increase taxes necessarily.

[0:56:17] Voice 12: And I would like just to, you know,

[0:56:20] Voice 12: have us look at what would happen if it was 15 or 20%.

[0:56:23] Voice 12: I think it would be illuminating. And one last thing when,

[0:56:28] Voice 12: and I agree with Peter Luckham that we should have a contingency.

[0:56:32] Voice 12: We should have a rainy day fund,

[0:56:35] Voice 12: But right now, if we look at the numbers strictly, and we are, you know, sort of somewhere in the neighborhood of two months to 2.8 months above our needs, we're talking about a contingency or rainy day fund of $1.6 to $2.2 million.

[0:56:54] Voice 12: And that is my concern.

[0:56:56] Voice 12: and since i've got the floor one last thing uh comment uh that peter lucka made that we haven't

[0:57:03] Voice 12: really been dealing with this um for a very long time i brought this up over five years ago at

[0:57:08] Voice 12: financial planning committee uh and i've continued to bring it up each and every year so that's just

[0:57:15] Voice 12: the point i wanted to make it's not that this it's just that this hasn't moved forward until

[0:57:19] Voice 12: the last year and a half and that's the point i wanted to make so does somebody want to second

[0:57:24] Voice 12: My motion is

[0:57:28] Trustee Grove: there a seconder Laura Patrick

[0:57:30] Trustee Patrick: is second discussion, so thank you, the motion

[0:57:32] Trustee Grove: yeah so we see you see the motion before you.

[0:57:38] Trustee Grove: check that if you have any questions, let me know we've got trustee rocket Rockefeller wishing to speak.

[0:57:44] Trustee Grove: um

[0:57:46] Voice 7: i would be hesitant to put a percentage amount on what we're going for just because

[0:57:52] Voice 7: it would seem like the surplus balance there's a lot of variables so many that none of us probably

[0:57:58] Voice 7: have a handle on it except for the senior staff and it would probably be a more if we were to go

[0:58:04] Voice 7: forward with it a more valuable analysis to give the staff freedom to actually explore without

[0:58:09] Voice 7: out of ceiling level there. Yeah, anyway, that's all. Thanks.

[0:58:17] Trustee Grove: If I may put myself on the list, I would actually like to see a recommendation from staff rather

[0:58:23] Trustee Grove: than talking about actual amounts. I would find that very interesting if anybody else thinks so

[0:58:29] Trustee Grove: too. Sue Ellen and then Peter Luckham.

[0:58:36] Voice 6: Thank you. I haven't spoken yet, but I just wanted to say

[0:58:40] Voice 6: What I gather is that Islands Trust has been spending more of the surplus over the past few years, and I'm looking on page 22 where I can see the cash balances over several years, and it went up to a high, and we're now coming back down again.

[0:59:09] Voice 6: so I would like to just stick with the original motion that we just passed and see what

[0:59:16] Voice 6: recommendations come to us from staff because it's also a shifting situation and we're in the

[0:59:22] Voice 6: midst of a big planning review like a sort of reorganization and there's a bunch of moving

[0:59:28] Voice 6: parts and I would just like to see as a first step the recommendations that come from staff

[0:59:33] Voice 6: staff, and then consider next recommendations, so I'm, I'm not in favor.

[0:59:39] Trustee Grove: Thank you.

[0:59:40] Trustee Grove: So am I missing something or is the recommendation we just passed actually asking for, for, sorry,

[0:59:46] Trustee Grove: the motion we just passed is it actually asking for a recommendation.

[0:59:50] Trustee Grove: Yes.

[0:59:51] Voice 6: Yes.

[0:59:52] Trustee Grove: It

[0:59:52] Voice 6: says to recommend changes to the policy for review.

[0:59:56] Trustee Grove: Okay, that

[0:59:57] Voice 6: seems to be like phase one, and then

[0:59:59] Voice 6: And.

[1:00:00] Voice 6: after that thank

[1:00:01] Trustee Grove: you peter luckham um

[1:00:04] Trustee Luckham: well you know i kind of had the same kind of question

[1:00:07] Trustee Luckham: that's lingering there is whether or not we've already recommended a request for a number

[1:00:11] Trustee Luckham: there in the changes and now in this motion we're making a recommendation of a number but i think

[1:00:18] Trustee Luckham: the key here is and i had a little trouble with it and i want to make sure that everybody

[1:00:21] Trustee Luckham: that we have a common understanding here about sensitivity analysis and so what my understanding

[1:00:27] Trustee Luckham: of a sensitivity analysis, it's a what-if scenario, it's a modeling exercise, a simulation

[1:00:32] Trustee Luckham: of if it was a 15% surplus, how would it roll out if it's 20 or 30? And so I'm presuming that

[1:00:42] Trustee Luckham: in a recommendation that staff might be already including that. And so I don't know that we need

[1:00:52] Trustee Luckham: to be so prescriptive but i would be interested to hear from the director um as to what she

[1:00:58] Trustee Luckham: anticipates with respect to the first motion but i am in support of this kind of analysis and i

[1:01:05] Trustee Luckham: expect that we might get that anyway um

[1:01:09] Trustee Grove: julia mobs um

[1:01:13] Voice 2: yes so that's a very good point when we look at

[1:01:16] Voice 2: the first um carried motion that staff bring forward recommendations one of the toughest

[1:01:22] Voice 2: things to bring forward a recommendation on is in relation to the minimum balance to be held in

[1:01:27] Voice 2: surplus. You know, part of that is dependent on the risk appetite of council. You know, if there

[1:01:35] Voice 2: is a very low risk appetite, you would want a higher surplus balance. If there is tolerance for

[1:01:40] Voice 2: risk or tolerance for borrowing under a borrowing bylaw, if needed, then you can have that number

[1:01:47] Voice 2: be lower but certainly as part of coming up with even a variety of recommendations based on various

[1:01:54] Voice 2: risk levels I would have to include some sort of sensitivity analysis to get to those

[1:01:59] Voice 2: recommendations anyway so I'm not opposed to trustee Brent's motion if it's helpful to have

[1:02:06] Voice 2: that sensitivity analysis actually presented in a separate report for FPC to review if it's you know

[1:02:12] Voice 2: not a separate motion I would have to be doing some of that work under the first motion anyway

[1:02:17] Voice 2: if the committee is looking for surplus balance recommendations under that first motion thank you

[1:02:23] Trustee Grove: um julia um paul brent does that give you any comfort i've lost paul there he is um does that

[1:02:29] Trustee Grove: give you any comfort that that kind of sensitivity analysis is forthcoming in any event from what

[1:02:33] Trustee Grove: julia said um no it doesn't

[1:02:36] Voice 12: because i'm not sure

[1:02:37] Voice 12: that uh we were asking that in the in the first

[1:02:40] Voice 12: motion i really don't think this is uh a a problem motion really it's just the sensitivity analysis

[1:02:47] Voice 12: Good.

[1:02:47] Trustee Grove: I'd like to call the question then and move on, if that's all right with everybody.

[1:02:53] Trustee Grove: So all those in favor? Contrary? I see none. Thank you very much. That carries unanimously.

[1:03:04] Trustee Grove: I'm sorry, it's not instant. So Tracey Rockefeller, you're contrary?

[1:03:12] Trustee Grove: and Sue Ellen, I could only see the top of your little finger there, your pinky, just when you

[1:03:21] Trustee Luckham: trustee Grove. Yes.

[1:03:23] Trustee Luckham: Um, there was a recommendation in the chat that I'm, I know that you're probably

[1:03:27] Trustee Luckham: not able to keep up with the chat because I'm

[1:03:29] Trustee Grove: not looking at the chat just

[1:03:32] Trustee Luckham: for the record.

[1:03:32] Trustee Luckham: I'm running a meeting. I don't watch the chat either. Just let everybody be aware of that

[1:03:37] Trustee Luckham: because it's too much to conduct the meeting.

[1:03:40] Trustee Luckham: But there is a suggestion that one of two things

[1:03:43] Trustee Luckham: is that the voting be conducted

[1:03:44] Trustee Luckham: because you've got a slow connection there,

[1:03:47] Trustee Luckham: that the meeting be conducted either in the chat

[1:03:50] Trustee Luckham: or with a raised hand,

[1:03:52] Trustee Luckham: which you can pull up the participants list on the side.

[1:03:55] Trustee Luckham: And I don't think that'd be too difficult.

[1:03:56] Trustee Luckham: And then you will be able to see people's hands going up

[1:03:59] Trustee Luckham: and then pause sufficiently for hands to go up.

[1:04:03] Trustee Luckham: I'll

[1:04:03] Trustee Grove: just be careful.

[1:04:06] Trustee Grove: I find that if I have the participants and the voting hands going up, it removes so much of my screen space, and I have greater value in being able to look at each and every one of you to see what you're doing and how you're reacting.

[1:04:21] Trustee Grove: I find that more useful.

[1:04:22] Trustee Grove: But I will just be more cautious when it comes to the voting.

[1:04:28] Trustee Grove: So that carries, that motion.

[1:04:30] Trustee Grove: Thank you very much.

[1:04:31] Trustee Grove: and thank you for your patience with my lack of ability

[1:04:36] Trustee Grove: at the chairing.

[1:04:38] Trustee Grove: I am doing my best, is all I can say.

[1:04:41] Trustee Grove: And Russ, CAO.

[1:04:43] Voice 8: Well, Mr. Chair, I'm just wondering,

[1:04:45] Voice 8: is this the end of the motions associated with this,

[1:04:48] Voice 8: the surplus matter?

[1:04:51] Voice 8: Or are there further motions coming from trustees?

[1:04:54] Trustee Grove: I see shakings of heads from those

[1:04:57] Trustee Grove: who are most likely to issue motions.

[1:05:00] Trustee Grove: So I think that's the end, I think.

[1:05:02] Voice 8: So all I'd like to say, Mr. Chair, is that this is now, and I get boring here, this is now a project, a financial management analysis project that Julia and the rest of the staff will be undertaking and providing back to you.

[1:05:21] Voice 8: I think that it's going to be a significant piece of work.

[1:05:25] Voice 8: I note that this, for five or six years, this has been a question.

[1:05:29] Voice 8: it looks like you're getting on the cusp of you know dealing with surplus um but it also includes

[1:05:35] Voice 8: these policy questions like how do we manage the surplus and other things um and also the caveat

[1:05:43] Voice 8: that much of that are policy governance questions um just like julia's describing around risk so

[1:05:51] Voice 8: this this will not be just simply accountancy um you know it'll um julia's going to have to do

[1:05:57] Voice 8: with the help of other staff, look at some of those extraneous factors. So it's a fairly big

[1:06:02] Voice 8: project is what I'm pointing out. And you are deciding to increase the work of Julia for this

[1:06:09] Voice 8: good reason. I just want that noted.

[1:06:12] Trustee Grove: Thank you. I appreciate that. And hopefully Julia can tackle

[1:06:16] Trustee Grove: it when she can. There's no immediate urgency at this point, I don't think. But I think it's

[1:06:22] Trustee Grove: a useful exercise. And I would hope that we can see it sometime in the not too far distant future.

[1:06:26] Trustee Grove: and Julia's smiling so that's a good sign but but your point is well taken CAO thank you

[1:06:33] Trustee Grove: can I turn our attention to 5.2 the 2022 budget draft 2 version 1 on page 30 pages 32 to 40 in

[1:06:45] Trustee Grove: your agenda package anyway I do

[1:06:49] Trustee Grove: think that was a useful conversation thank you um over to you

[1:06:54] Trustee Grove: Julia, if you'd like to take us through this.

[1:06:57] Voice 2: I do. All right. So as noted, this briefing begins

[1:07:02] Voice 2: on page 32. It's a briefing that outlines the changes that have taken place to the budget

[1:07:07] Voice 2: since it was last reviewed by Trust Council in December. So in December, a lot of new information

[1:07:14] Voice 2: becomes available from third parties such as BC Assessment. And so that data is incorporated in

[1:07:19] Voice 2: here as well as many other changes that are coming from within the organization. So some of the

[1:07:23] Voice 2: the biggest changes relate to um motions that were passed at trust council there were three of them

[1:07:28] Voice 2: the first of course was uh to enter into a contract with a management consultant firm to review

[1:07:33] Voice 2: islands trust governance management and operations uh that project has a 75 000 price tag and the

[1:07:40] Voice 2: motion gives direction to fund that from surplus money um and so in the budget we see an increase

[1:07:44] Voice 2: of 75 000 to the draw from surplus to fund this work there was a conversation around whether or

[1:07:51] Voice 2: or not trustees who are part of the select committee

[1:07:53] Voice 2: for this project would be remunerated

[1:07:55] Voice 2: for their meeting time.

[1:07:56] Voice 2: In consultation with the manager of legislative services,

[1:07:59] Voice 2: it was determined that no remuneration is appropriate

[1:08:02] Voice 2: under policy 7.2.1 as that is intended

[1:08:04] Voice 2: for only standing committees of council.

[1:08:06] Voice 2: So there's been no budget adjustments

[1:08:08] Voice 2: for select committee remuneration.

[1:08:11] Voice 2: The second resolution of council was to include

[1:08:14] Voice 2: a part-time communication specialist

[1:08:16] Voice 2: for bylaw infraction prevention.

[1:08:19] Voice 2: So that is a part-time position.

[1:08:20] Voice 2: has a price tag of about $34,000 for salaries and wages.

[1:08:24] Voice 2: It's been determined that salaries for this role

[1:08:26] Voice 2: could be funded from already existing budgets.

[1:08:28] Voice 2: So no changes to training budgets

[1:08:29] Voice 2: has been made for this role.

[1:08:30] Voice 2: And we're still in the process of assessing the hardware

[1:08:33] Voice 2: and software needs for this new position.

[1:08:35] Voice 2: As you know, Islands Trust management team

[1:08:38] Voice 2: is taking a look at how work is performed

[1:08:40] Voice 2: at the Islands Trust.

[1:08:41] Voice 2: And part of that exercise is seeing whether or not

[1:08:44] Voice 2: we will embrace remote working more deeply,

[1:08:47] Voice 2: even post-pandemic and that could result in a lowered need for computer hardware

[1:08:53] Voice 2: as staff would share a desk space so we're still assessing that need. The third resolution passed

[1:08:59] Voice 2: at council was to decide on their meeting locations for 2021 so two of those meetings

[1:09:06] Voice 2: were determined to be in person and the previous version of the budget only had funding for one

[1:09:12] Voice 2: meeting to be in person so these meetings are costly when they're held in person so we've had

[1:09:16] Voice 2: to increase the budget for that additional in-person meeting. The location information

[1:09:22] Voice 2: was also helpful and the current draft of the budget has $27,000 for the meeting that's planned

[1:09:27] Voice 2: to be held in Victoria and $25,000 for the meeting that's to be held in Nanaimo. Previously there was

[1:09:32] Voice 2: only one meeting at $22,500. As I mentioned lots of new data came to us from third parties so BC

[1:09:40] Voice 2: Assessment has provided new non-market change reports. So we saw a very slight change in the

[1:09:45] Voice 2: the non-market percentage for local trust areas.

[1:09:48] Voice 2: It was previously at 0.93% in the budget.

[1:09:51] Voice 2: It's now at 0.87%.

[1:09:53] Voice 2: So what this does is simply shift the tax dollars

[1:09:56] Voice 2: from tax that comes to us from non-market change factors

[1:09:59] Voice 2: and bumps it into the increase from base.

[1:10:03] Voice 2: For Bowen Island, there's also non-market change

[1:10:05] Voice 2: information that's become available,

[1:10:08] Voice 2: but there's been no change for that percentage

[1:10:10] Voice 2: from the previous budget.

[1:10:11] Voice 2: So no impact from non-market change factors.

[1:10:13] Voice 2: BC assessment also provided information on the converted net taxable values.

[1:10:19] Voice 2: So this information is required to be used in the Islands Trust Budget under the Islands Trust Act.

[1:10:25] Voice 2: It is how we apportion out various revenues and expenditures between the different local trust areas.

[1:10:31] Voice 2: And also it plays into the Bowen Islands calculation.

[1:10:36] Voice 2: And so Bowen Islands, the portion of the property tax value that they hold within the trust has increased.

[1:10:42] Voice 2: East. It is sitting at 18.3%. The previous draft of the budget had 17.6%. And so that does mean

[1:10:49] Voice 2: that there's an increase to the Bowen Island tax levy. And I'll get into the nitty gritty details

[1:10:53] Voice 2: of that further on. Trustee remuneration is based on a number of factors in policy. One of those

[1:10:59] Voice 2: factors is the number of folios in each local trust area. So we do have new folios information

[1:11:03] Voice 2: from BC assessment, and we've updated the remuneration calculation for that. CPI information

[1:11:10] Voice 2: information has not changed from what was in the previous budget. It's still reading 1.2%.

[1:11:14] Voice 2: I'm expecting there will be a change in the December figures, however, and they will be

[1:11:18] Voice 2: updated once I've got that information. So grant funding revenues. We are seeing a lot of grants

[1:11:25] Voice 2: come in for the Conservancy this year. So in addition to the $205,000 for Species at Risk,

[1:11:31] Voice 2: they have also now been awarded $25,000 in grant funding under a stimulus initiative for

[1:11:36] Voice 2: for conservation work.

[1:11:38] Voice 2: So in chatting with the manager of ITC,

[1:11:40] Voice 2: the expectation is that 2000 of that will be spent

[1:11:44] Voice 2: in the current fiscal and the remaining 23,000

[1:11:46] Voice 2: will be in next fiscal year.

[1:11:49] Voice 2: And so we've updated revenues to include this amount

[1:11:51] Voice 2: and also updated conservancy expenditures

[1:11:53] Voice 2: for the same amount.

[1:11:55] Voice 2: Also related to the conservancy is a board resolution

[1:11:58] Voice 2: that was passed in November.

[1:12:00] Voice 2: And so they've reduced some of their operating budget

[1:12:03] Voice 2: by $3,600 and that's been reflected in this draft as well.

[1:12:06] Voice 2: well. So SWPA has met quite recently, I believe, to discuss their budget. They are seeking

[1:12:13] Voice 2: $75,500 in special property tax funds to continue the work of SWPA. I understand the LTC passed

[1:12:20] Voice 2: a resolution just yesterday to recommend that same amount be included in the budget. That

[1:12:26] Voice 2: was already in the budget in the previous draft, so no change there. There is also a

[1:12:30] Voice 2: desire from SWPA however to draw on the SWPA surplus funds and use it for some project work

[1:12:37] Voice 2: so any project work needs to be undertaken by the Salt Spring Island Local Trust Committee

[1:12:41] Voice 2: because it's not under the jurisdiction of SWPA and so SWPA did take this conversation to the

[1:12:48] Voice 2: Salt Spring Island Local Trust Committee yesterday as I understand and there's a couple of motions

[1:12:52] Voice 2: that were passed in totality there is a recommendation from the Salt Spring Island

[1:12:58] Voice 2: and local trust committee to include up to $80,000 draw from the SWPA reserve fund in next

[1:13:05] Voice 2: year's budget to be spent on freshwater work. So that is not yet included in this draft of the

[1:13:11] Voice 2: budget. It will be added in future drafts. There will be no impact to taxation as of course that

[1:13:17] Voice 2: would be funded out of surplus funds to offset the spending there. And I can certainly take

[1:13:23] Voice 2: questions on that piece as we wrap up this report. So the Bowen Island tax levy was formerly seeing

[1:13:30] Voice 2: a reduction in the previous version of the budget unfortunately that has changed with some of the

[1:13:36] Voice 2: budget changes in this version and so we have an increase in overall spending in this version

[1:13:41] Voice 2: of the budget which of course then flows into the Bowen Island municipal tax calculation

[1:13:47] Voice 2: and contributes to the increase that we're seeing for the Bowen Island tax levy.

[1:13:50] Voice 2: the allocation of expenses between different departments

[1:13:53] Voice 2: has shifted with the changes in the budget.

[1:13:56] Voice 2: And so the municipal pool allocation rate has increased

[1:13:59] Voice 2: from 26.8% to 27.7,

[1:14:02] Voice 2: which drives the Bowen Levy further up as well.

[1:14:05] Voice 2: The biggest contributing factor to the change

[1:14:07] Voice 2: in the Bowen Levy resides

[1:14:08] Voice 2: in the net converted assessment value.

[1:14:12] Voice 2: So when that number changes,

[1:14:14] Voice 2: there's a significant increase or a significant change

[1:14:16] Voice 2: to Bowen Island tax levy.

[1:14:17] Voice 2: and that number has gone up by a full percentage point and so that accounts for about $12,000 of

[1:14:23] Voice 2: the increase to Bowen. So Bowen's levy is now calculated at about $318,000 which is $26,000

[1:14:29] Voice 2: higher than the previous year or sorry than the previous draft and it represents about a 5.1%

[1:14:35] Voice 2: increase over last year. So the changes in our budget have changed our draw from surplus.

[1:14:43] Voice 2: surplus. Of course, we've got the $75,000 coming out of surplus for the operations and governance

[1:14:48] Voice 2: review. And so that change is pushing the draw from surplus up to $522,000. I have a typo in

[1:14:56] Voice 2: this report. It reads $597,000. That's incorrect. It should be $522,000. So my apologies for that

[1:15:03] Voice 2: error there. We'll be talking about the consultation package later on today, so I won't speak to that.

[1:15:08] Voice 2: And then the end of the report on page 35 is just a simple summary of the changes that

[1:15:13] Voice 2: that have happened, it sort of gives a snapshot

[1:15:16] Voice 2: of where the changes are taking place

[1:15:18] Voice 2: just for ease of understanding.

[1:15:20] Voice 2: So overall, the current draft of the budget

[1:15:22] Voice 2: is showing a 3.25% tax increase for local trust areas

[1:15:26] Voice 2: with an additional 0.87% of new taxation revenue

[1:15:30] Voice 2: coming from non-market change factors.

[1:15:32] Voice 2: And as mentioned, the Bowen Island levy

[1:15:34] Voice 2: has an increase of 5.1%.

[1:15:37] Voice 2: And 1.1% of that would be expected to come

[1:15:41] Voice 2: come from new construction and non-market change factors

[1:15:43] Voice 2: in Bowen Island Municipality.

[1:15:46] Voice 2: I don't have noted in this report,

[1:15:48] Voice 2: but I did do the math that our surplus balance

[1:15:49] Voice 2: is projected to be quite low at the end of this budget year

[1:15:54] Voice 2: or the draft budget year at about 85%.

[1:15:57] Voice 2: We've already talked about that.

[1:15:58] Voice 2: And of course I will update that surplus balance

[1:16:01] Voice 2: as we move through different drafts of the budget.

[1:16:04] Voice 2: If there's a desire from the committee

[1:16:06] Voice 2: to comply more rigidly with our existing policy,

[1:16:09] Voice 2: policy, we would need to see an increase in our revenue base in the draft budget in order

[1:16:13] Voice 2: to bolster the surplus fund.

[1:16:16] Voice 2: And at this point, that increase would likely come from an increase in taxation.

[1:16:22] Voice 2: So there's a number of other items that are still to be updated in the budget that will

[1:16:26] Voice 2: be coming in future versions.

[1:16:28] Voice 2: One Director Marler will be speaking to today, it's a substantial grant fund or grant monies

[1:16:34] Voice 2: that might be coming to us.

[1:16:35] Voice 2: and as we do our third quarter forecast we'll be updating for any projects that carry over into

[1:16:40] Voice 2: next year so the attachments to this briefing include the budget detail so that's on page 37

[1:16:48] Voice 2: there is a fair amount of detail in there again I've included the changes to the budget year over

[1:16:55] Voice 2: year so that information is readily available as well as changes from budget to actual comparisons

[1:17:00] Voice 2: since. So, you know, the items that were significant changes from last year's budget

[1:17:07] Voice 2: remain the same items that are significant changes in this current budget. The biggest item

[1:17:12] Voice 2: of change relates to salaries and benefits. So the overall increase over last year's budget for

[1:17:17] Voice 2: operations is $516,000. Approximately $400,000 of that relates to an increase in salaries

[1:17:24] Voice 2: and benefits. And that's due to the four new staff positions we have coming on board,

[1:17:29] Voice 2: the mandated BCGEU increases that we have, some mat leave top up that we have coming up next year

[1:17:36] Voice 2: and a number of other changes. I have performed a reconciliation to sort of outline the various

[1:17:41] Voice 2: components that are contributing to that $400,000 increase in salaries and wages. If it's of

[1:17:45] Voice 2: interest to the committee, I can certainly circulate that by email. It just provides a

[1:17:49] Voice 2: bit of a better understanding of why we're seeing a significant change in that area this year.

[1:17:55] Voice 2: also attached to the briefing at 5.2.2 is the allocation of our surplus funds so you can see

[1:18:03] Voice 2: where the surplus draw is being allocated and i think that's all i will say but i will happily

[1:18:09] Voice 2: take questions thank

[1:18:12] Trustee Grove: you julia that's one heck of a mouthful um i suggest we um take uh julia's

[1:18:18] Trustee Grove: is memo her report to us as she has just done

[1:18:23] Trustee Grove: and take questions from the floor

[1:18:29] Trustee Grove: based upon that memo to start with.

[1:18:33] Trustee Grove: And then we can move into other issues

[1:18:35] Trustee Grove: if that works for everybody.

[1:18:40] Trustee Luckham: Which memo are you talking about?

[1:18:42] Trustee Luckham: I'm

[1:18:43] Trustee Grove: talking about the one that Julia

[1:18:45] Trustee Grove: has just been reviewing, which starts on page 32.

[1:18:48] Trustee Luckham: Okay, the briefing, yeah.

[1:18:49] Trustee Grove: Yeah. And Peter Lackham's got a question.

[1:18:55] Trustee Luckham: Well, a couple of questions and primarily reflecting on the increase for Bowen.

[1:19:02] Trustee Luckham: And I have other questions that I'll ask when we get to the surplus fund application.

[1:19:06] Trustee Luckham: The additional expenditure is not accounted for that you've mentioned to do with SWEPA.

[1:19:12] Trustee Luckham: I don't believe that they will be affecting the Bowen contribution. Is that so?

[1:19:17] Trustee Luckham: Yeah, that's correct.

[1:19:18] Trustee Luckham: Correct. And then the salary portion that you've just mentioned, $400,000 increase,

[1:19:26] Trustee Luckham: obviously a major portion of that is local planning services. A smaller portion is the

[1:19:31] Trustee Luckham: trust programs services. But I guess what I'm looking at is that as we evolve the budget and

[1:19:40] Trustee Luckham: we make changes, it's quite surprising to me that we see this change in the Bowen surplus. And,

[1:19:47] Trustee Luckham: And, you know, I've made a commitment to Bowen mayor and council to be constantly aware of this.

[1:19:55] Trustee Luckham: And just so I'm wondering that as part of an explanation for the most recent Bowen increase of another percentage point, is the salaries the major contributing factor there?

[1:20:09] Trustee Luckham: Or what is the contributing factor to that one percent or whatever it is increase?

[1:20:13] Trustee Luckham: increase?

[1:20:14] Voice 2: So the largest contributing factor is the change in net converted assessment value.

[1:20:21] Voice 2: So when Bowen Island holds a larger percentage of the total property value in the trust area,

[1:20:27] Voice 2: they pay a larger percentage towards our budget. That's the way the calculation is laid out.

[1:20:33] Voice 2: And so we've seen an increase there, and that is the largest contributing factor to the change.

[1:20:39] Voice 2: change. Of course, there are some other changes to the budget that have impacted the Bowen

[1:20:44] Voice 2: Island calculation. You know, any changes that happen to the Conservancy and any changes

[1:20:49] Voice 2: that happen to Council services will have an impact on the Bowen levy and the allocation

[1:20:56] Voice 2: rate as well. So the portion of the total budget that the Conservancy and Council services

[1:21:01] Voice 2: make up overall, if that portion rises, then the allocation rate for Bowen Island will

[1:21:07] Voice 2: also rise and so that is the case in this draft of the budget that's also happened so

[1:21:13] Trustee Luckham: just for

[1:21:15] Trustee Luckham: clarity um are you my can i take it by implication that the the increases in the budget that we are

[1:21:24] Trustee Luckham: responsible for is is small by comparison to the assessed property values

[1:21:31] Trustee Grove: smaller

[1:21:32] Trustee Grove: smaller

[1:21:32] Voice 4: not

[1:21:34] Trustee Grove: not small it's smaller I mean it's the it's the it's the relevance or the ratio between

[1:21:39] Trustee Grove: expenses and the property values and what we're hearing I gather is that Bowen Island generally

[1:21:45] Trustee Grove: speaking their property values are higher than the rest of the island's trust area correct Julia

[1:21:51] Trustee Grove: that

[1:21:52] Voice 2: is correct one of the other significant additions to the budget of course was another

[1:21:56] Voice 2: trust council meeting in person Bowen Island contributes to council meetings because it's

[1:22:02] Voice 2: the work of council um so you know those are the biggest contributing factors um the governance

[1:22:08] Voice 2: review is funded out of surplus bowen island actually gets a credit for monies that are

[1:22:12] Voice 2: coming out of surplus um so it's it's really the other items that are driving this okay dan rogers

[1:22:18] Trustee Grove: and then laura patrick

[1:22:22] Voice 4: that's

[1:22:23] Trustee Rogers: sort of answers been my question because i'm assuming the

[1:22:26] Trustee Rogers: the other addition to the budget the communication specialist would not would not uh affect bowen

[1:22:32] Trustee Rogers: But the extra meeting expenses were, and I gather that if the rest of the islands trust property values have gone up 15%, Bowen might have gone up 20 or whatever. And that's what's driving this.

[1:22:46] Trustee Rogers: I can tell you that on my island, which is in the same general area as Bowen, property assessments have gone up anywhere from 20% to 40%.

[1:22:57] Trustee Rogers: So that may be what's happening on Bowen as well.

[1:23:03] Trustee Luckham: 30% on Thetis.

[1:23:05] Trustee Grove: Yeah.

[1:23:07] Trustee Grove: That's only if you're considered waterfront.

[1:23:09] Trustee Grove: But Laura Patrick had her hand up.

[1:23:12] Trustee Patrick: I just wanted to be clear on the SWPA, the draw from surplus for SWPA is from the surplus tax

[1:23:19] Trustee Patrick: money that was collected from the special tax requisition of Salt Spring Island residents only.

[1:23:27] Trustee Grove: May I ask a question on that one? I'm not sure about that, certainly the 75,000 is, but we have

[1:23:36] Trustee Grove: We have a $50,000 amount that SWPA has requested to be held as a line item, really.

[1:23:48] Trustee Grove: At this point, SWPA hasn't made a decision as to whether they want to spend the money on a particular consultant to do a new study.

[1:23:58] Trustee Grove: There's also Western Lake.

[1:24:02] Trustee Grove: We had agreed in the previous budget to respond to a request from our CRD director for $14,000, but that's been upped from $14,000 to $30,000.

[1:24:15] Trustee Grove: So those amounts are additional, Laura.

[1:24:22] Trustee Grove: They're not out of the $75,000.

[1:24:23] Trustee Grove: Oh,

[1:24:24] Trustee Luckham: they come out of the special tax requisition funds surplus over the number of years.

[1:24:30] Trustee Grove: Okay, so but from, thank you, but from, so, but that money, Julia, where have you gone?

[1:24:39] Trustee Grove: But that money, Julia, is all part of the overall Islands Trust surplus. It's not a separate surplus account for SWPA, correct?

[1:24:48] Trustee Grove: actually

[1:24:48] Voice 2: it is a separate SWPA reserve fund so any of the special property tax monies that were

[1:24:55] Voice 2: not spent in previous years are housed in the special property tax requisition surplus fund

[1:25:00] Voice 2: and so that is separate from the general revenue surplus fund it's separate from the LTC project

[1:25:05] Voice 2: specific reserve fund and that is where these projects will be funded from so there's a policy

[1:25:11] Voice 2: that dictates that special requisition surplus monies

[1:25:15] Voice 2: can be used by the local trust committee

[1:25:18] Voice 2: of that local trust area for specific projects.

[1:25:21] Voice 2: And so the resolutions that I received were one,

[1:25:25] Voice 2: that to fund a $30,000 study,

[1:25:28] Voice 2: watershed study at Weston Lake

[1:25:29] Voice 2: that would be funded from the SWPA Reserve Fund

[1:25:33] Voice 2: and an additional up to $50,000

[1:25:36] Voice 2: for other watershed strategic planning work.

[1:25:39] Voice 2: So that's a total of $80,000 being requested as a drawdown from the SWPA surplus funds.

[1:25:47] Trustee Grove: And SWPA has those surplus funds, you're saying?

[1:25:50] Voice 2: There is enough in the SWPA surplus funds, that's correct.

[1:25:54] Trustee Grove: So I'm sorry, I'm repeating myself, but just to be pedantic.

[1:25:57] Trustee Grove: So that does not reflect, affect the overall Islands Trust surplus funds?

[1:26:05] Voice 2: So, I mean, the SWPA surplus money does belong to the Islands Trust.

[1:26:08] Voice 2: trust. So it's part of the accumulated surplus balance. It is

[1:26:14] Voice 2: separate from the other islands

[1:26:16] Voice 2: trust surplus monies. Okay.

[1:26:17] Trustee Grove: Thank you. I'm sorry. Who's got their hand up? Deb Morrison.

[1:26:24] Voice 14: Thank you. I just want to make sure I'm crystal clear because I think this SWIFO money is

[1:26:29] Voice 14: confusing for folks and I just want to make sure we're really clear about it. So, and maybe even

[1:26:34] Voice 14: just make a statement. So like the SWIFO money that's in the SWIFO reserve fund and the request

[1:26:39] Voice 14: for that. I feel that those things are really at the discretion of the Salt Spring Island folks,

[1:26:45] Voice 14: because they are Salt Spring Island taxpayer funds. So I'm a little unclear why the Trust

[1:26:51] Voice 14: Council is asking that. And I know there's some kind of historical trajectory there. I'm not sure

[1:26:57] Voice 14: I need an entire history lesson. But I do want to caution the rest of us as trustees about making

[1:27:04] Voice 14: decisions that really are in the Salt Spring Island house, I would say. So I'm a little

[1:27:10] Voice 14: confused about why we're making decisions about that fund generally. And then second, related to

[1:27:16] Voice 14: that, I would love to have some clarity about where does the money that was requested, is this

[1:27:23] Voice 14: the money that we're talking about that was requested for the Ganges Village? Because it's

[1:27:28] Voice 14: a similar amount of money, right? Okay, so it's different. I'm getting that it's a different

[1:27:33] Voice 14: amount. Okay. So that's really helpful to understand for me because I'm, I'm struggling

[1:27:38] Voice 14: with the $75 village fund and trying to understand like how that's a trust level issue. I feel like

[1:27:43] Voice 14: the SWIFO request of funds is none of my business and we should just go, okay, if the, if the Salt

[1:27:48] Voice 14: Spring Island trustees say that that's something needed. And so I'm just struggling with why we're

[1:27:52] Voice 14: making these decisions as a whole.

[1:27:56] Voice 2: Maybe I'll just speak to that briefly, try to clarify,

[1:27:59] Voice 2: it may not help um but the the special requisition policy that trust council has um is a little bit

[1:28:07] Voice 2: unclear about when special requisition surplus funds can or should be used by the local trust

[1:28:15] Voice 2: committee or the local trust area so you know in essence you know it indicates that um or when

[1:28:22] Voice 2: that policy was put in place the intention was that once the the work of the special requisition

[1:28:28] Voice 2: had wrapped up, if there was money left over in surplus that had been collected under a special

[1:28:33] Voice 2: requisition, that the LTC could then turn around and use that money for other projects in that

[1:28:38] Voice 2: same local trust area. There was a request that came forward to Trust Council to say, you know,

[1:28:45] Voice 2: given that the policy, that might have been the intent of the policy, but the way that it's

[1:28:48] Voice 2: written is a little bit unclear. There was a request made of Council to say, would you permit

[1:28:53] Voice 2: the salt spring island local trust committee to use these surplus funds um right now even while

[1:28:59] Voice 2: swipa is not a completed project and that was that was passed and so i think just because the

[1:29:04] Voice 2: policy is a little unclear that might be why it's phrased as a as a request but you know absolutely

[1:29:09] Voice 2: it is um salt spring island money

[1:29:12] Voice 8: thank you cao russ yeah just in support of my colleague i think

[1:29:17] Voice 8: the question is is quite fundamental um the islands trust is organized differently than say

[1:29:22] Voice 8: say, a regional district, where you have all these separate service areas, and that service area

[1:29:28] Voice 8: controls those funds. So that is not our system. So just at that fundamental level,

[1:29:36] Voice 8: we collect money as a totality, and Trust Council, you know, determines where those funds go.

[1:29:45] Voice 8: The corollary to that, which my colleagues sort of outlined, is that we can have these special,

[1:29:50] Voice 8: We can recruit monies from a specific area using this function like Swipa, but still control of those.

[1:30:00] Voice 8: funds um keep coming back to the islands trust so that that is a a bread in the bone um financial

[1:30:07] Voice 8: reality associated with the islands with how things start the islands trust when you speak

[1:30:11] Voice 8: about the ganges effort um all all monies at the islands trust are determined collectively by trust

[1:30:18] Voice 8: council and so whether it's a a small item where we've said well you know we don't you know um

[1:30:25] Voice 8: FPC can determine certain funds and the LTCs have a certain amount of budget that they can

[1:30:32] Voice 8: discretionarily use. Trust Council has said that's the approach we're going to take. They're still

[1:30:36] Voice 8: responsible for all of those dollars. And if you have a big project, certainly you have to get,

[1:30:42] Voice 8: like a Ganges or a large OCP amendment, you would need to come to Trust Council to get it. So it's

[1:30:49] Voice 8: It's a federal financial responsibility, if that's helpful.

[1:30:55] Voice 8: It is.

[1:30:58] Trustee Grove: That's really helpful.

[1:30:59] Voice 14: Could I ask one follow-up to that?

[1:31:01] Trustee Grove: Yes.

[1:31:02] Voice 14: So thank you.

[1:31:03] Voice 14: That was really helpful.

[1:31:05] Voice 14: And as soon as you started speaking, I'm like, oh, yeah, right.

[1:31:07] Voice 14: We're a federation.

[1:31:10] Voice 14: But I think one of my sort of maybe it's a request.

[1:31:15] Voice 14: I don't know if it's a motion.

[1:31:16] Voice 14: And I think I'd defer to the South Spring Island trustees on this one.

[1:31:19] Voice 14: But it seems to me that a special requisition, the surplus funds in that space after the SWFA effort is finished or as it's completed, that we should think about having that money being allocated into the Salt Spring Island LTC budget line or in some way.

[1:31:36] Voice 14: Because I worry that money that was specifically collected from a local population is used more broadly in the federation, even knowing we are a federation.

[1:31:45] Voice 14: I have a

[1:31:46] Voice 14: concern about that.

[1:31:48] Trustee Grove: Laura Patrick sorry Julia go ahead then Laura that

[1:31:53] Voice 2: is what our policy dictates any special

[1:31:56] Voice 2: requisitions from a single local trust area will be used by that particular LTC when the project

[1:32:02] Voice 2: is done Laura Patrick I

[1:32:04] Trustee Patrick: was just going to add and our local trust committee has a passed a

[1:32:08] Trustee Patrick: resolution saying that that because SWPA is ongoing that those surplus funds are directed

[1:32:13] Trustee Patrick: towards SWPA activity. So we've protected it.

[1:32:18] Trustee Grove: Good. Thank you, Laura, for clarification.

[1:32:25] Trustee Grove: Okay. Where are we? That was a particular matter brought up. We're going through

[1:32:35] Trustee Grove: Julia's report, I believe. And any other questions or comments? We've got to,

[1:32:43] Trustee Grove: that was page 34, the Swipper. Any other questions or comments with regard to that report? I see no

[1:32:55] Trustee Grove: hands up. So I'm clicking through here. Is that the end of Peter Luckham? Yeah.

[1:33:11] Trustee Luckham: What point through the chair, what point do we forward this to council?

[1:33:20] Voice 2: So FPC will review the draft budget one more time in February.

[1:33:24] Voice 2: forward it on to Trust Council in March.

[1:33:27] Trustee Luckham: Okay thank you.

[1:33:30] Trustee Grove: So that was the

[1:33:31] Trustee Grove: briefing at 5.2.1. Have we concluded on that? We have the surplus

[1:33:43] Trustee Grove: report on page 41. Do we feel we've heard enough from Julia on that? Peter Luckin's

[1:33:57] Trustee Grove: got one finger up.

[1:33:58] Trustee Luckham: Yeah, well, I'm puzzling. I just had, this is a good report. I'm pleased to

[1:34:04] Trustee Luckham: see this. How is that the number determined, the $25,000, $15,000, $17,000? What factors that

[1:34:17] Trustee Luckham: credit?

[1:34:19] Voice 2: Are you referring to the Bowen Island credit that's afforded in the surplus? So that

[1:34:25] Voice 2: That is something that's also dictated by the Municipal Tax Requisition Calculation

[1:34:30] Voice 2: Policy.

[1:34:32] Voice 2: So depending on what area of the Islands Trust the project work fits into, if it is a project

[1:34:39] Voice 2: that relates to departments that Bowen Island normally contributes money to, then they are

[1:34:44] Voice 2: afforded a credit for any projects that are being funded by surplus.

[1:34:48] Voice 2: And that's, you know, to recognize that the general taxation is going to be receiving

[1:34:54] Voice 2: some relief when monies are drawn from surplus they don't have to pay for that by a taxation

[1:35:00] Voice 2: and so that same principle is applied to the Bowen Island calculation.

[1:35:07] Voice 2: How is that

[1:35:08] Trustee Luckham: determination made like who's deciding which projects are and are not

[1:35:15] Trustee Luckham: creditable I'll say?

[1:35:17] Voice 2: So typically that is senior staff in conjunction with myself

[1:35:21] Voice 2: So where a project relates purely to local planning services and will benefit local planning services only, Bowen Island does not contribute to local planning services, therefore they don't get a credit for that work.

[1:35:32] Voice 2: If the work is going to be impacting the Conservancy or Trust Area Services, for example, then they would receive a credit there.

[1:35:41] Voice 2: So, you know, typically it's myself in conjunction with the rest of senior staff to understand what the project is intended to do.

[1:35:50] Voice 2: okay thank

[1:35:52] Trustee Luckham: you yes

[1:35:55] Trustee Grove: uh trustee morrison um

[1:35:58] Voice 14: and i just want to verify page 41 is still within this

[1:36:02] Voice 14: item right yes okay so i just had a couple quick questions on on page 41 um so and and i think this

[1:36:11] Voice 14: might be a little bit of my own confusion honestly between what is surplus versus what is the project

[1:36:17] Voice 14: project budget line item budget overall so there may be a little bit of confusion for me on that

[1:36:22] Voice 14: issue but it seems to me that the item around broadcast to public meetings first of all actually

[1:36:29] Voice 14: I want to say that I really appreciate the mapping of this to strategic plan items like that's super

[1:36:34] Voice 14: helpful to understand how this maps to strategic planning and I think all of us need to keep that

[1:36:39] Voice 14: clear so that like we understand we're moving along on various items so awesome in terms of

[1:36:45] Voice 14: the broadcast public meetings item um it seems like that is a much lower number than what we've

[1:36:51] Voice 14: heard before is that just because of what we've learned in the time of covid or is that not

[1:36:56] Voice 14: reflecting the full amount of the broadcast public meetings item because some's coming out of surplus

[1:37:01] Voice 14: and some's coming out of elsewhere um

[1:37:04] Voice 2: so the original number which was larger um was looking

[1:37:08] Voice 2: at the project overall so of course a lot of that work is actually happening in the current budget

[1:37:13] Voice 2: and so we already have you know subscriptions to streaming software and things like that that are

[1:37:19] Voice 2: now sort of in our general operating budget it's the additional pieces that are going to be required

[1:37:24] Voice 2: for that project when we move back to in-person meetings so a lot of it is hardware you know once

[1:37:30] Voice 2: we're in physical locations again we need cameras we need different feeds laptops things like that

[1:37:36] Voice 2: so you know that's why it's smaller than what you've seen is a lot of it's done that's super

[1:37:42] Voice 2: helpful and

[1:37:43] Voice 14: um in in line with that sort of idea too i think it's a similar issue is to develop

[1:37:48] Voice 14: heritage overlay mapping item that seems lower than i thought it might cost to do that is that

[1:37:54] Voice 14: because some is also some is also going on right now or do we do we have some money elsewhere for

[1:38:00] Voice 14: that uh

[1:38:02] Voice 2: no so that is all the money um that's been approved um to put into the budget um i think

[1:38:08] Voice 2: there is conversation underway right now as it's been identified that that amount may not be enough

[1:38:13] Voice 2: money to actually do the work we want to do so there there hasn't been a direction to change

[1:38:19] Voice 2: that amount though and I think part of that relates to the fact that we're seeking grant funding

[1:38:23] Voice 2: that would partially fund some of this work and potentially change the amount of money that's

[1:38:27] Voice 2: allocated to it we don't yet have approved grant funding yet which is why the updates for that have

[1:38:33] Voice 2: not been included there is a full briefing on that later on in the meeting which we'll touch on

[1:38:37] Voice 2: but you're right that number is still being looked at and will likely change

[1:38:47] Trustee Grove: Okay. Trustee Rogers.

[1:38:50] Trustee Rogers: Just one last question. So when we look at this sheet and we see the amounts that

[1:38:55] Trustee Rogers: are included in the BOAN, it gives $100,000 and I assume then you apply the percentage,

[1:39:01] Trustee Rogers: the 18-whatever percent to that and that reduces their contribution to the trust. Is that the way

[1:39:09] Trustee Rogers: that ended up working?

[1:39:11] Voice 2: Yes. So all of the factors

[1:39:13] Voice 2: that influence the Bowen Island tax levy are worked out,

[1:39:17] Voice 2: including that credit from surplus.

[1:39:19] Voice 2: And then the very final step is to apply

[1:39:21] Voice 2: their net converted assessment value percentage.

[1:39:24] Trustee Rogers: Right, okay.

[1:39:25] Trustee Rogers: Well, they approximately get about an $18,000 credit

[1:39:29] Trustee Rogers: from the fact we're pulling money out.

[1:39:31] Voice 2: That's correct.

[1:39:32] Trustee Rogers: Right, thanks.

[1:39:38] Trustee Grove: Okay, thank you all.

[1:39:41] Trustee Grove: And thank you, Laura, Julia, very much.

[1:39:45] Trustee Grove: But I'll thank Laura also.

[1:39:46] Trustee Grove: So the, are we done with 5.2.2, 5.2.3?

[1:39:57] Trustee Grove: Can we go to the briefing on page 42 to 57, which is 5.3?

[1:40:05] Trustee Rogers: Mr. Chair, I had understood, if I might point of order,

[1:40:08] Trustee Rogers: I understood the director had wanted to deal with the,

[1:40:11] Trustee Rogers: what the item on 5.5 in this section.

[1:40:16] Trustee Rogers: Am I, did I miss that?

[1:40:18] Trustee Rogers: Yes,

[1:40:18] Trustee Grove: you are correct.

[1:40:20] Trustee Grove: And I can't read my own notes.

[1:40:22] Trustee Grove: So, Julia, do you want to talk about 5.5 at this point?

[1:40:26] Voice 2: I actually don't. I would like Director Marler to do that.

[1:40:30] Voice 1: And I'm here to do that. So thank you.

[1:40:33] Voice 1: OK, so through the chair, it's on page 61 of the agenda package.

[1:40:37] Voice 1: package. So back in 2020, at the time of Trust Council, we got noticed that we would likely

[1:40:48] Voice 1: be eligible for about $180,000 in grant funding for the Freshwater Sustainability Strategy.

[1:40:56] Voice 1: It fits nicely with the Healthy Watersheds Initiative, which the province has put together.

[1:41:02] Voice 1: The rollout of that was delayed because of the provincial election, so they've kind of compressed everything.

[1:41:09] Voice 1: We had to get a proposal to them by the 15th of December and they said they would indicate to us by the 15th of January

[1:41:21] Voice 1: on the approval and would like to have an agreement signed with us by mid-January, which has passed.

[1:41:29] Voice 1: past we're still waiting for them to get back to us it is a priority Nerissa who did a lot of work

[1:41:38] Voice 1: on this has been in contact with them so getting it to us is a priority they realize that they

[1:41:44] Voice 1: would like to see it signed by the end of this month so we can continue to meet their their

[1:41:49] Voice 1: deadlines which is to have the work completed by December 15th of 2021 and a final report back

[1:41:57] Voice 1: to the grantor by January 15th of 2022 so what you see here is a briefing

[1:42:06] Voice 1: because we don't actually we haven't got the grant yet so we can't put any

[1:42:11] Voice 1: recommended dollars in but this briefing is telling you what the Regional

[1:42:16] Voice 1: Planning Committee agreed to before that December 15th deadline to get a

[1:42:21] Voice 1: submission to the grantor so these series of resolutions deal with the dollars the report

[1:42:29] Voice 1: attached to this briefing is the one that went to the regional planning committee and that details

[1:42:35] Voice 1: each of the different aspects of it one of the things with this particular grant is it is looking

[1:42:42] Voice 1: at projects that are ready to go they call shovel ready projects they're on the ground and also that

[1:42:51] Voice 1: there's the ability to hire people, to get people back to work, which is obviously not what we do,

[1:42:57] Voice 1: but there's certain projects on the islands that could certainly do that,

[1:43:02] Voice 1: that can be funded through this program. And the other aspect of it was First Nations

[1:43:09] Voice 1: consultation, engagement, and working with them. So a series of projects were put together

[1:43:17] Voice 1: with about $90,000 going towards speeding up

[1:43:22] Voice 1: the freshwater sustainability strategy.

[1:43:26] Voice 1: And that is using our existing contract

[1:43:29] Voice 1: to doing phase one to do into phase two.

[1:43:32] Voice 1: And we can have something to cancel by September

[1:43:34] Voice 1: with $90,000 of the grant.

[1:43:39] Voice 1: And that adds on to 20,000

[1:43:42] Voice 1: that we already have for this fiscal year.

[1:43:44] Voice 1: The remainder, the other 90,000, would be split between the various projects that would be like the flow-through.

[1:43:52] Voice 1: And those are detailed in the RFD to the Regional Planning Committee.

[1:43:59] Voice 1: But those are things like Hoi Mbi, watershed protection.

[1:44:04] Voice 1: I think Laskiti was the other one.

[1:44:07] Voice 1: Some work on Salt Spring to do with rehabilitation with the Islands Trust Conservancy.

[1:44:13] Voice 1: and some of the money would go towards the heritage conservation mapping because there

[1:44:20] Voice 1: would be a big First Nations component and water is very important and it fits nicely with that

[1:44:26] Voice 1: so there'll be about $25,000 towards that as well. So that's what the proposal is. The last item

[1:44:34] Voice 1: on page 63 at the top, resolution number 086, is the Regional Planning Committee

[1:44:42] Voice 1: the community recognized that there's a lot of work involved for this sustainable fresh

[1:44:48] Voice 1: water specialist in managing these projects and contracts.

[1:44:58] Voice 1: So the concept here is to add a budget line of 18,000 to cover a watershed ecosystem technologist

[1:45:08] Voice 1: co-op that would do a lot of the work in the background that will then free up the

[1:45:15] Voice 1: freshwater specialist a little bit more to make sure that we deliver this by December 15th of

[1:45:23] Voice 1: 2021. Now, obviously, if we don't get the grant, then we're not going to ask for the $18,000 for

[1:45:32] Voice 1: their watershed ecosystems co-op. And then finally, there was a $30,000 ask to continue

[1:45:40] Voice 1: the freshwater strategy into next year. That $30,000 would be replaced by the grant money.

[1:45:47] Voice 1: So that $30,000 would be removed as an ask. So that's really it. Like I said, we don't actually

[1:45:55] Voice 1: have the money yet we don't have confirmation we're you know 95 99 confident that um it's a

[1:46:05] Voice 1: goal but until we get the paperwork uh we don't know that for sure so that's really all i have

[1:46:12] Voice 1: it's a briefing so i'm not looking for direction just looking for provide you information and i'll

[1:46:17] Voice 1: ask answer try and answer questions through the chair um

[1:46:20] Trustee Grove: if i make i'm a bit confused i'm looking

[1:46:23] Trustee Grove: at page 63 which you referred us to and there are four recommendations there oh

[1:46:29] Voice 1: maybe my agenda is

[1:46:31] Voice 1: uh out of line with yours but i'm just looking at the briefing um which is regional planning

[1:46:38] Voice 1: committee 2021 22 budget amendments pending receipt of grant yeah so is that page 61 yeah

[1:46:48] Trustee Grove: 61 okay yeah

[1:46:49] Voice 1: yeah so it's just a briefing the recommendations that you see in the next

[1:46:54] Voice 1: document those were to the regional planning committee and that resulted in the resolutions

[1:46:58] Voice 1: that you see in this briefing see

[1:47:05] Trustee Grove: it was a bigger pardon but the what i'm seeing on 61

[1:47:08] Trustee Grove: is the recommendation from stefan sermon uh

[1:47:15] Voice 1: just a minute am i missing something i'm not seeing a

[1:47:20] Voice 1: recommendation but

[1:47:23] Trustee Grove: not it's uh anyway it's from stefan simon we're talking about yes yes it is

[1:47:27] Voice 8: from stefan sermac oh

[1:47:28] Trustee Grove: yeah on

[1:47:29] Voice 8: david's behalf and there isn't a recommendation this is informing to

[1:47:33] Voice 8: the committee

[1:47:33] Trustee Grove: thank you very much thank you very much and uh julian mobs has got a hand up sorry

[1:47:37] Trustee Grove: thank you uh

[1:47:38] Voice 2: yeah i'll just clarify that page 61 is um just informing fpc of the motions that were

[1:47:45] Voice 2: passed by rpc um and the recommendations that you see on page 63 were the recommendations that went

[1:47:52] Voice 2: to rpc that resulted in those four motions on page 61. so no recommendations to fpc at this point just

[1:47:58] Voice 2: just information. I did just want to add to what Director Marler said. The $18,000 proposed funding

[1:48:05] Voice 2: for a co-op student would not come from the $180,000 grant funding. Director Marler's nodding

[1:48:12] Voice 2: his head, so I'm correct saying that. Yes,

[1:48:13] Voice 2: correct. So that would need to be funded by

[1:48:16] Voice 2: Islands Trust money. That would result in an additional tax increase. So that would be about

[1:48:23] Voice 2: another 0.25 percent increase in taxation it would probably move us from 3.25 percent tax

[1:48:29] Voice 2: increase to a 3.5 the $30,000 reduction for the heritage mapping project that would come out of

[1:48:38] Voice 2: the budget because it would be funded by grant funding would not have an impact in taxation

[1:48:42] Voice 2: because it's currently funded by surplus money so it's not impacting taxation anyway so even if we

[1:48:47] Voice 2: take it out it might reduce the amount that we need from surplus and that could help us you

[1:48:53] Voice 2: you know, offset the tax increase, but we don't know yet

[1:48:57] Voice 2: if we're going to get approved for that.

[1:49:01] Trustee Rogers: Dan Rogers.

[1:49:03] Trustee Rogers: Sorry, just thank you for that, Director Mops.

[1:49:06] Trustee Rogers: Just one question though, one of the things I,

[1:49:08] Trustee Rogers: in addition to the heritage monies,

[1:49:10] Trustee Rogers: the third motion down, number 84,

[1:49:14] Trustee Rogers: seems to remove a request for $30,000 out of the budget

[1:49:21] Trustee Rogers: for the for the watershed initiative and replace it with $180,000. So aren't we also reducing the

[1:49:32] Trustee Rogers: budget by $30,000? And then increasing it by 80 180 from the grant money isn't isn't that so there

[1:49:39] Trustee Rogers: still is a sort of although there's a net increase, because one's an in and out isn't isn't

[1:49:45] Trustee Rogers: the budget shouldn't that offset the 18,000 am I missing something?

[1:49:51] Voice 2: So I believe that $30,000

[1:49:53] Voice 2: refers to the mapping of heritage? No

[1:49:57] Voice 1: no sorry it there's there was a $30,000 ask to continue

[1:50:03] Voice 1: the freshwater strategy remember we had $20,000 the bid came in at $50,000 there was a discussion

[1:50:10] Voice 1: around that and the decision was made to just do $20,000 worth this year and ask council for

[1:50:16] Voice 1: $30,000 to finish it off next year. So there's a separate $30,000 ask currently in the budget

[1:50:23] Voice 1: for the freshwater strategy.

[1:50:28] Voice 2: Thank you. Yes, I had that. I had misunderstood that.

[1:50:32] Voice 2: It's the same concept, however, that $30,000 for the rest of the freshwater work right now is being

[1:50:37] Voice 2: funded by surplus money. So if

[1:50:39] Voice 2: we reduce the 30,000 from surplus, our draw from surplus would

[1:50:42] Voice 2: be reduced, but our taxation would stay the same. So unless there was some other project we decided

[1:50:48] Voice 2: to fund from surplus, taxation would be shifted.

[1:50:52] Trustee Rogers: Got it. Thank you.

[1:50:56] Trustee Grove: Thank you. It is now five minutes to 12. What is your pleasure as to where and how we move forward

[1:51:06] Trustee Grove: from here. We have, we've got, we're at 5.3, the budget consultation. We've also got the briefing

[1:51:15] Trustee Grove: on the property tax notice, and so there may be some discussion around those issues. So we can

[1:51:22] Trustee Grove: stop.

[1:51:23] Trustee Luckham: Is this an opportunity for lunch, Mr. Chair?

[1:51:26] Trustee Grove: Well, I'm thinking we could break for half an hour

[1:51:28] Trustee Grove: if you wish, or longer or shorter. My half an hour would be my recommendation. Okay. So it's

[1:51:37] Trustee Grove: five to 12. Let's make it one half hour plus five minutes. So let's be back here at 1230.

[1:51:44] Trustee Grove: Thank you very much.

[1:51:51] Trustee Luckham: Thank you, Chair.

[1:51:53] Voice 4: Thank you, staff.

[2:26:17] Trustee Grove: I thought that was, I'd have a clock ticking down, but it didn't work.

[2:26:24] Trustee Grove: We're almost there, as in 1229, 1230, and there's still no disastrous news from the United States, thank the good Lord.

[2:26:46] Voice 14: There wasn't, I know, I watched

[2:26:49] Trustee Grove: it this morning.

[2:26:52] Trustee Grove: I must say, as I was saying.

[2:26:55] Trustee Luckham: Except that you keep interrupting the inauguration.

[2:26:59] Trustee Grove: when it's done the inauguration was finished well before we sat down

[2:27:04] Trustee Luckham: oh yeah but

[2:27:05] Trustee Luckham: there's all the pomp and circumstance surrounding it

[2:27:07] Trustee Grove: and i i guess we're on a public

[2:27:10] Trustee Grove: streaming but i don't care i mean i was really impressed by joe biden um speech i thought it

[2:27:15] Trustee Grove: was terrific i really i thought the last time we would get a speech like that was with barack

[2:27:20] Trustee Grove: Obama, but this guy did a good job. Anyway, so here we are, joyously back together.

[2:27:35] Trustee Grove: Sorry, bear with me, everybody. So we are at, I believe, 5.3, the budget consultation, a briefing

[2:28:03] Trustee Grove: from Julia. Is that correct? Is that a nod, Julia? I'm sure you nodded.

[2:28:11] Voice 2: Actually, Director Freyder will be speaking to this.

[2:28:13] Trustee Grove: Aha, Director Freyder, there she is. Claire, nice to see you. Thank you for coming to tell us what

[2:28:19] Trustee Grove: we need to know. Over to you.

[2:28:22] Voice 15: Thank you, Chair, and good afternoon, Committee. I'm here to present

[2:28:25] Voice 15: to you the changes to the public consultation survey, and just wanted to open by letting you

[2:28:31] Voice 15: know that we are on track to launch the budget consultation by Friday with all the usual

[2:28:36] Voice 15: promotional techniques that we have. And in addition, this time at the request of some

[2:28:41] Voice 15: trustees, we are doing paper flyers to promote the surveys on Galliano and Saterna Islands.

[2:28:46] Voice 15: And in addition, you will see that some of the advertising that's gone out in order to save cost,

[2:28:51] Voice 15: we've combined advertising with the policy statement engagement that's happening somewhat

[2:28:55] Voice 15: concurrently. And you will know from contact you've likely had from our program coordinator

[2:29:00] Voice 15: that we are building audience lists for each of the islands. And so that will be another new method

[2:29:04] Voice 15: of reaching out trying to draw awareness to the surveys and encouraging participation.

[2:29:09] Voice 15: We have amended the survey as per your request at the last meeting and we're bringing it back to

[2:29:14] Voice 15: you now to see if those changes address your feedback and if there's any additional changes

[2:29:19] Voice 15: you'd like to see before we put it out on Friday. So with that I would put it back to the chair to

[2:29:24] Voice 15: seek any feedback and then we will make those changes before it leaves.

[2:29:28] Trustee Grove: Thank you very much

[2:29:29] Trustee Grove: and it's looking good. I'm wondering how people would like to deal with that just generally

[2:29:36] Trustee Grove: overall, or should we have a look at it page by page? Okay, that's any specific questions

[2:29:46] Trustee Grove: or comments then. Paul Brent has sent us a, Saturna's mail outs were put into post office

[2:29:55] Trustee Grove: boxes today. Is that code or does it mean something?

[2:30:00] Trustee Grove: to us that

[2:30:01] Voice 15: would be the flyers going out to promote the survey um landed mailboxes today

[2:30:05] Voice 15: i'll let you know it was

[2:30:07] Voice 15: lovely it was a last minute change and we had a community volunteer

[2:30:10] Voice 15: who offered to pick them up in sydney and bring them back to saturn so i love that community

[2:30:15] Voice 15: participation even in delivery of promotion of the surveys and

[2:30:19] Voice 12: and a community trustee went and

[2:30:20] Voice 12: picked them up at the general store took them to the post office and paid for them to be put into

[2:30:25] Voice 12: to the Dropboxes.

[2:30:27] Trustee Grove: They're so lucky to have that community trustee. It's impressive.

[2:30:31] Voice 15: Thank you, Trustee Brent.

[2:30:35] Trustee Grove: Laura Patrick.

[2:30:36] Trustee Patrick: I sent to Robert Barlow a suggestion for

[2:30:40] Trustee Patrick: question three on page 49 under SWPA. I thought it was a little too, you know,

[2:30:46] Trustee Patrick: preserve and protect fresh water on Salt Spring. So I did suggest, and the fact that it's a

[2:30:50] Trustee Patrick: continued, the way that whole section read was like the first time ever if a new person was

[2:30:55] Trustee Patrick: was completing that, taking that survey

[2:30:59] Trustee Patrick: that it could be misunderstood.

[2:31:01] Trustee Patrick: So I did send some suggested language

[2:31:04] Trustee Patrick: for that question number three.

[2:31:05] Trustee Patrick: I can read it out loud, but I did send it to Robert.

[2:31:08] Trustee Patrick: That the special property tax requisition

[2:31:10] Trustee Patrick: to fund the continued coordination of a framework

[2:31:16] Trustee Patrick: and strategy to protect water sheds

[2:31:18] Trustee Patrick: and preserve drinking water sources

[2:31:20] Trustee Patrick: with the community government

[2:31:21] Trustee Patrick: and non-government organizations on Salt Spring.

[2:31:23] Trustee Patrick: so just to it makes it a little longer but and I'm open to word suggestions to

[2:31:30] Trustee Patrick: wordsmith it but I think it's would help I

[2:31:39] Voice 15: see no problem with that wording I'm

[2:31:41] Voice 15: just hearing it now so I think a staff are happy to make that change if that's

[2:31:44] Voice 15: the committee's desire any

[2:31:49] Trustee Grove: problems without anybody I'm hearing none I have

[2:31:53] Trustee Grove: a couple of questions on page 46 if that's okay and Julia I'll need your

[2:31:59] Trustee Grove: help here. The 7.3 increase in total expenditures, I mean that seems very high and we know in that

[2:32:10] Trustee Grove: total expenditures are items such as the 227,000 which you've identified which are not really

[2:32:19] Trustee Grove: operating expenditures. It also includes amounts such as the 75,000 I think that we've setting

[2:32:28] Trustee Grove: setting aside for the governance review, which is coming out of surplus. So those total expenditures

[2:32:38] Trustee Grove: include amounts which have been paid for out of surplus. Is that not correct, Julia?

[2:32:44] Voice 2: That's correct.

[2:32:46] Trustee Grove: See, I don't think that's fair, and I don't want to do any window dress just to accommodate us,

[2:32:55] Trustee Grove: us. But I do think that 7.3% is not really reflective on our operations on how on what

[2:33:03] Trustee Grove: we're doing.

[2:33:06] Voice 2: So I think it is reflective of planned spending for sure. And some of that

[2:33:13] Voice 2: planned spending will have specific sources of revenues. We've identified the one, as you

[2:33:20] Voice 2: mentioned, there are $227,000 for new grant funds. We don't specifically identify how much of our

[2:33:26] Voice 2: spending is being funded by surplus in that particular line. Would you be suggesting that

[2:33:32] Voice 2: we tag on to the end of that first sentence, including $522,000 of spending, which will be

[2:33:39] Voice 2: funded by surplus monies? Is that what you're suggesting?

[2:33:42] Trustee Grove: No, I would do it the other way

[2:33:43] Trustee Grove: around. It would be an X percent increase in operating expenses, period. Then you could have,

[2:33:52] Trustee Grove: in addition to that we will be the following expenses will be incurred which will be funded

[2:33:58] Trustee Grove: from from surplus. I mean I also have you know when when one has a grant money for specific as

[2:34:08] Trustee Grove: we do say for for the 180,000 we were talking about earlier you're including the grant as a

[2:34:17] Trustee Grove: of revenue which is correct and then the the relative expenses relating to that as an expense

[2:34:22] Trustee Grove: and that goes into the 7.3 percent increase but actually they net each other out and one wouldn't

[2:34:28] Trustee Grove: be incurring those expenses probably if one didn't have the grant money i mean what is what i'm trying

[2:34:34] Trustee Grove: to get to is what is truly reflective of um the islands trust um expenses if i see 7.3 percent

[2:34:41] Trustee Grove: i'm going to stop reading and you know say this organization is out of control peter luck i'm

[2:34:47] Trustee Grove: You

[2:34:49] Trustee Luckham: know, I think that this is a reflection of the operational expenses.

[2:35:00] Trustee Luckham: And sure, we can candy coat it any way we want.

[2:35:04] Trustee Luckham: Those that want to drill into it will drill into it and find those things.

[2:35:10] Trustee Luckham: it perhaps wouldn't hurt that if that 7.3 percent had a bulleted list which said something

[2:35:17] Trustee Luckham: that said something like including 233,000 x salary increases including x and the 500,000

[2:35:25] Trustee Luckham: for whatever those percentages are but you know there's a double-edged sword here if you draw

[2:35:32] Trustee Luckham: people's attention to the fact that the 7.3 percent increase in operations maybe that will

[2:35:37] Trustee Luckham: attract people to look a little closer. And I think there's a big benefit in having people

[2:35:43] Trustee Luckham: analyze this closely. And hopefully we get a continued increase in interest through our

[2:35:51] Trustee Luckham: survey process to help inform us. So it is what it is. And I don't know that we should shy away

[2:35:59] Trustee Luckham: from that. The work we do is, it costs money.

[2:36:03] Trustee Grove: Sorry, Laura, I'm coming to you. Of course,

[2:36:05] Trustee Grove: we can we need to reflect what's actually happening but as in everything else as in

[2:36:10] Trustee Grove: marketing it's a question of how you present information the numbers uh can be adjusted to um

[2:36:17] Trustee Grove: to as as may be appropriate and to uh make them more understandable i'm sorry laura you had your

[2:36:25] Trustee Grove: hands up and then i think uh suelen did okay

[2:36:28] Trustee Busheikin: um yes and thank you um uh well a couple things about

[2:36:34] Trustee Busheikin: about this. First of all, I'm thinking for someone reading this, there's two numbers here. One is

[2:36:39] Trustee Busheikin: expressed as a percentage and one is expressed as an actual number. So it makes it really

[2:36:45] Trustee Busheikin: impossible to figure out where $227,000 fits into the 7.3. Is that a lot of it or just a tiny bit

[2:36:57] Trustee Busheikin: bit of it. So I think at the very least, we should have maybe a dollar amount in brackets after 7.3%

[2:37:04] Trustee Busheikin: increase, how much that is, so that people can see how much of that is the new grant funds.

[2:37:11] Trustee Busheikin: And I don't think we should be, you know, asking leaning questions, or if that's not the right

[2:37:20] Trustee Busheikin: term, but a little more information is good. So people can give us thought out answers. So

[2:37:28] Trustee Busheikin: So maybe some bullet points, you know, we're talking about factual information.

[2:37:32] Trustee Busheikin: We're not talking about explaining what we're doing or justifying, but I'm not sure exactly

[2:37:38] Trustee Busheikin: what they'd be, but I think that maybe Peter Grove, you identified a few.

[2:37:43] Trustee Busheikin: The other thing, and this is a bit of maybe a bigger comment.

[2:37:47] Trustee Busheikin: So Chair Grove, let me know if I should hold off, but I'll just tell you what I want to,

[2:37:52] Trustee Busheikin: what the comment is, and maybe we'll hold off on discussion is like, and maybe I'm missing

[2:37:58] Trustee Busheikin: something but people don't necessarily have access to the budget which i think is is quite a lot for

[2:38:05] Trustee Busheikin: a person to have a look at um who doesn't have some background but they i feel like we're asking

[2:38:12] Trustee Busheikin: people to comment on the budget by asking general questions but i would think most people who want

[2:38:16] Trustee Busheikin: to uh comment on the budget will want to see what is the budget what is in the budget and i know as

[2:38:21] Trustee Busheikin: as a member of FPC and Trust Council,

[2:38:24] Trustee Busheikin: I wanna hear from Islanders

[2:38:27] Trustee Busheikin: what they think about the budget.

[2:38:29] Trustee Busheikin: Are there items in there that they're concerned about

[2:38:33] Trustee Busheikin: that they think are too high or too low specifically?

[2:38:37] Trustee Busheikin: And I worry that this is more a consultation

[2:38:41] Trustee Busheikin: on general principles about the budget, but not the budget.

[2:38:46] Trustee Busheikin: And I just wonder if that's going to A, frustrate people

[2:38:49] Trustee Busheikin: and B, give us feedback that's just so general, and I'm not sure what I'm proposing,

[2:38:59] Trustee Busheikin: but just bringing up this issue to see where it goes. And I'm done, thanks.

[2:39:08] Trustee Grove: Thank you. Any other comments? Yes, Sue Ellen.

[2:39:17] Voice 6: Thank you. Yes, I just, I appreciate the grant being mentioned in the very first

[2:39:25] Voice 6: bit there I like Laura's suggestion that the dollar figure be included or

[2:39:30] Voice 6: something so people can see the significance of that grant amount and I

[2:39:38] Voice 6: like the way Russ put it one time this is the largest grant that I think it was

[2:39:46] Voice 6: Russ that the Islands Trust has ever received and it's more than we received

[2:39:49] Voice 6: from the province but on the other hand I think it's fine the way it is just

[2:39:55] Voice 6: just putting the dollar figure there, I'm not going to wordsmith this document. I've given you

[2:40:02] Voice 6: lots of input over the past few years and happy to see some of it reflected here. I was wondering

[2:40:08] Voice 6: about the property tax notice insert. Is a lot of this information in the tax notice insert,

[2:40:16] Voice 6: will that also be, it looks like it overlaps quite a bit. Can you comment on that?

[2:40:20] Voice 6: uh

[2:40:25] Voice 15: yes so we will um hopefully is overlapping information um they'll be delivered in different

[2:40:31] Voice 15: ways but of course the property tax insert will actually won't land in mailboxes until june and

[2:40:36] Voice 15: it will contain the information as per the adopted budget whereas this is information about the

[2:40:40] Voice 15: proposed budget so that we can talk about that when we get to the next item but that would be

[2:40:45] Voice 15: the distinction there okay all the point i wanted to make is

[2:40:49] Voice 6: that those uh circles like i'm looking

[2:40:51] Voice 6: at page 60 um just the circle diagram with the approximate amounts um i think those are really

[2:40:59] Voice 6: helpful for people to add a add a glimpse get a grip on what the money is being spent on and um

[2:41:08] Voice 6: so if that circle diagram on page 60 and the those two in particular could be included that would be

[2:41:17] Voice 6: be my suggestion thank you yeah

[2:41:19] Voice 15: i think we can achieve that i'll um look at trustee mobs but i

[2:41:22] Voice 15: think we can do that by friday if

[2:41:26] Trustee Grove: i may um i noticed on back to page 46 um under under trustee

[2:41:32] Trustee Grove: remuneration you've got a blue line that says learn more and you can link on to learn more

[2:41:38] Trustee Grove: maybe that would be helpful with the 7.3 percent increase in total expenditures you know click on

[2:41:43] Trustee Grove: learn more and then that'll take you to uh to the more detail about the budget um similarly at the

[2:41:50] Trustee Grove: 522 000 draw from accumulated surplus funds that i believe includes as we learned today the swipper

[2:41:56] Trustee Grove: um uh request from funds is that right julia uh

[2:42:03] Voice 2: so it does not yet include um the drawn

[2:42:07] Voice 2: swipper reserve monies that has not yet incorporated in the budget

[2:42:10] Trustee Grove: whatever number

[2:42:12] Trustee Grove: but whatever number is in there replaces that 522 will include the sweepers um draws um

[2:42:22] Voice 2: so yeah

[2:42:23] Voice 2: it's a bit of a debate if we want to include that as an adjustment or just put the um the budget out

[2:42:28] Voice 2: for consultation as it is um typically what happens is it's the budget that trust council

[2:42:34] Voice 2: reviewed in december that is rolled out for consultation um with amendments simply for you

[2:42:40] Voice 2: you know, new data that comes in, because those are not really debatable topics at the council

[2:42:44] Voice 2: table. So we may or may not include this number. I don't know what historical practice has been

[2:42:51] Voice 2: with this kind of thing, but typically we wouldn't adjust for it.

[2:42:54] Trustee Grove: Well, you know, I'm not trying to

[2:42:57] Trustee Grove: hide anything, but I just think it's difficult to put the, we're wanting feedback, right? I mean,

[2:43:03] Trustee Grove: this is very difficult for people to feed back on that sort of information, because they know

[2:43:10] Trustee Grove: know nothing about it unless you're going to have a learn more button um that's uh it's it's not

[2:43:18] Trustee Grove: going to provide or get responses uh from in an intelligent way that could be helpful to us i don't

[2:43:26] Trustee Grove: think um

[2:43:35] Voice 2: i can just comment i don't have a problem with providing additional information um as i

[2:43:39] Voice 2: understood it there is intended to be a link in this consultation document that will take

[2:43:43] Voice 2: readers to a summary of the budget it won't necessarily have a lot of

[2:43:49] Voice 2: breakdown as far as what the draw from surplus is funding specifically so if we

[2:43:53] Voice 2: want to include those additional details I mean I would have no problem

[2:43:57] Voice 2: providing them they're basically already ready to go so if there was a few more

[2:44:01] Voice 2: learn more buttons in there it wouldn't be a problem from my perspective and

[2:44:05] Voice 2: certainly we can provide more information on this for surplus funds as

[2:44:09] Voice 2: well I'm seeing no I'm afraid

[2:44:12] Voice 2: or hopefully I'm not stepping out of line

[2:44:14] Voice 2: with what she envisions no I just

[2:44:16] Trustee Grove: don't I just don't want to shut people down because we're

[2:44:19] Trustee Grove: giving them almost too much information um but otherwise if we're going to do this there needs

[2:44:25] Trustee Grove: to be a link so that people who want to know more and there probably won't be many um are able to

[2:44:31] Trustee Grove: understand what that is uh

[2:44:34] Voice 15: chair grove if I could note um in the last sentence above the introduction

[2:44:38] Voice 15: to the highlights um page 36 it says if you break down a budget draft numbers here and our intention

[2:44:44] Voice 15: we should have added a comment for you,

[2:44:45] Voice 15: but our intention is that word here

[2:44:46] Voice 15: would then be hyperlinked to the budget breakdown document.

[2:44:49] Trustee Grove: Okay, I guess that'll be helpful, thank you.

[2:44:51] Trustee Grove: Yeah.

[2:44:56] Trustee Grove: So any other concerns?

[2:45:00] Trustee Grove: This has gone past all of our marketing gurus on staff,

[2:45:05] Trustee Grove: I'm sure.

[2:45:08] Voice 15: I would note in response to Trustee Fass' comment

[2:45:11] Voice 15: that we do indeed already have on pages 48 and 50,

[2:45:16] Voice 15: pie charts that are similar to those

[2:45:17] Voice 15: in the property tax survey.

[2:45:19] Voice 15: So if those are sufficient, we might just leave them as is.

[2:45:21] Voice 6: It depends on your timing. Maybe then you would think about for the property tax notice

[2:45:26] Voice 6: using a pie chart. I just want people to be able to compare and recognize it and go,

[2:45:30] Voice 6: oh, this is what I was consulted on. I see, you know, just to recognize between the two.

[2:45:40] Trustee Grove: Okay. Don't want to rush anybody. So should we go to the property tax notice on pages 58 to 60?

[2:45:56] Trustee Grove: I do think it's a good idea.

[2:45:59] Voice 15: I'm happy to introduce this item if you'd like, Chair.

[2:46:01] Trustee Grove: Yes, please.

[2:46:03] Voice 15: So this is coming to you sort of as an early consultation.

[2:46:05] Voice 15: We have not yet done any work on this this year.

[2:46:10] Voice 15: But essentially, we want to remind you of what we had been planning to release last year that we ultimately didn't send out.

[2:46:16] Voice 15: To seek early input as to what you might like for this year, looking at what you thought last year.

[2:46:21] Voice 15: Have things changed? Is there a different type of information?

[2:46:24] Voice 15: Is the format, you know, what you have in mind still?

[2:46:26] Voice 15: Before we begin work on amendments, we just thought we'd seek your early input.

[2:46:29] Voice 15: but and then our intention is to amend it and bring it back to you for your next meeting for

[2:46:33] Voice 15: final approval of the revised notice. I would let you know we plan to speak with Bowen Island

[2:46:39] Voice 15: Municipality staff about the possibility of doing like a custom property tax notice for Bowen

[2:46:43] Voice 15: to include in their tax mailing. We have not yet initiated that conversation but certainly we're

[2:46:49] Voice 15: exploring that and if that is a possibility we will strive to get you a draft of that as well

[2:46:54] Voice 15: for your next meeting. I'm happy for feedback and comments and we'll bring you back a final notice

[2:47:01] Voice 15: at your next meeting wonderful

[2:47:04] Trustee Grove: um trustee morrison thank

[2:47:09] Voice 14: you for this i think it's going to be

[2:47:10] Voice 14: helpful this is the first time right that we've had this insert in the in the property tax notice

[2:47:15] Voice 14: yeah so thanks

[2:47:16] Voice 14: very much for for working this out i think it's going to be helpful um i feel like a

[2:47:22] Voice 14: little bit of a broken record but this is where the concern is going to hit our community around

[2:47:26] Voice 14: local planning services and the amount on the graphic on the second page that local planning

[2:47:32] Voice 14: services occupy. So as much of a description as we can have, and I did see sort of the local planning

[2:47:43] Voice 14: component underneath the first page, but I think my only question there would be able to sort of

[2:47:50] Voice 14: name both the sort of planning and rezoning and application work, which I think is named there,

[2:47:55] Voice 14: but also some of the um work that is now being done by people in the local planning services

[2:48:03] Voice 14: bin that is like because isn't like william shilbo's in the local planning services bin i

[2:48:09] Voice 14: think isn't he right and so like folks like that and that kind of work is not reflected in the

[2:48:14] Voice 14: description and i'm going to have like a ton of people on the phone right if that isn't also

[2:48:20] Voice 14: reflected in somehow in the description or partitioned out somehow just they want this

[2:48:25] Voice 14: this is the chunk for applications and this is the rest,

[2:48:27] Voice 14: which I know is how much harder to do right now.

[2:48:29] Voice 14: So like maybe the better move right now is just to add to the description

[2:48:33] Voice 14: about like local planning services is working with islands and communities

[2:48:36] Voice 14: to address climate change and reconciliation efforts or the other way

[2:48:40] Voice 14: around something like that.

[2:48:43] Voice 14: Cause my concern is going to be amplified by however many people are not

[2:48:47] Voice 14: that happy about, you know, that kind of balance sheet.

[2:48:57] Voice 12: Sarah, I'd like to speak. It's Paul Brent.

[2:48:59] Voice 12: please paul so i agree with um trustee morrison i think it would be beneficial actually i don't

[2:49:06] Voice 12: know if we can carve it out but for people to understand sort of the advocacy role or maybe

[2:49:12] Voice 12: trust programs role versus local planning so maybe lps versus um claire's group uh

[2:49:21] Voice 12: breakdown there would be very helpful for people here to understand you know

[2:49:25] Voice 12: know there's Claire's group that's spending money on on communications and and I know there's some

[2:49:31] Voice 12: overlap and reconciliation of course there's overlap but just to define that a little bit

[2:49:37] Voice 12: because I think there's that that will help reduce some of the confusion because when it just comes

[2:49:41] Voice 12: to local planning services I don't think people really totally understand that they confuse it

[2:49:46] Voice 12: with just dealing with applications thanks thank

[2:49:54] Voice 15: you we do have a summary at the bottom of page

[2:49:56] Voice 15: or mid of page 59 of the agenda.

[2:49:59] Voice 15: Certainly that does need a little bit of an update

[2:50:01] Voice 15: and I'll take some of the feedback we're receiving today

[2:50:02] Voice 15: as we redraft around the,

[2:50:06] Voice 15: oh, perhaps it's a page down,

[2:50:09] Voice 15: around the different three service areas.

[2:50:13] Voice 15: But yes, we'll try and make sure

[2:50:14] Voice 15: that we make that distinction for people.

[2:50:17] Trustee Grove: Good.

[2:50:20] Trustee Grove: Thank you.

[2:50:22] Trustee Grove: Laura Bushekin.

[2:50:25] Trustee Busheikin: Yeah, I agree with what Trustee Morrison

[2:50:31] Trustee Busheikin: Morrison had suggested around filling in a little bit some of what falls into land use planning and

[2:50:38] Trustee Busheikin: even the overlap and I you know would consider suggesting even further that we you know highlight

[2:50:45] Trustee Busheikin: that we actually have now full-time specialists both in fresh water protection and indigenous

[2:50:57] Trustee Busheikin: indigenous or what first nations relations or whatever we want to say um and not because i

[2:51:04] Trustee Busheikin: think that's important increasingly important um in terms of what we do and then also this is more

[2:51:14] Trustee Busheikin: of a detail but the box about nap tip is great but i feel like it needs like a short one sentence or

[2:51:21] Trustee Busheikin: half sentence plain language explanation of what nap tip is i think if you're reading that and you

[2:51:27] Trustee Busheikin: you don't really know it's not it takes a moment or two to figure out and that you know the name

[2:51:33] Trustee Busheikin: is not um super uh engaging um so and i'm sure that somewhere in the conservancy communications

[2:51:44] Trustee Busheikin: work there's a nice little very short sort of marketing type explanation about what nap tap is

[2:51:50] Trustee Busheikin: reduce your taxes and and preserve the environment something like that

[2:51:59] Trustee Busheikin: okay

[2:52:05] Trustee Grove: any other thoughts or comments or input for staff so that all went more quickly than i thought

[2:52:18] Trustee Grove: that it would and uh but that's all good so i think we're at new business at uh item six is

[2:52:25] Trustee Grove: there anything else that anybody wants to talk about um yes i would agree with trustee boucher

[2:52:32] Trustee Grove: shaken about a one-line explanation for NAPTA, who says?

[2:52:37] Voice 6: Kate Louise.

[2:52:39] Trustee Grove: Thank you, Kate Louise.

[2:52:41] Trustee Grove: Good.

[2:52:45] Trustee Grove: Town hall and delegations, are people lining up to talk to us?

[2:52:51] Trustee Grove: I don't think so.

[2:52:53] Trustee Grove: So we can move on and talk about our next meeting,

[2:52:56] Trustee Grove: which we will all look forward to, February the 17th,

[2:53:00] Trustee Grove: from 10.30 to 3 o'clock.

[2:53:02] Trustee Grove: Why from 10.30 rather than 10 o'clock, as it was today, I wonder?

[2:53:07] Trustee Busheikin: I think audit committee.

[2:53:10] Trustee Grove: That's right.

[2:53:11] Trustee Grove: Audit committee is at 10.

[2:53:13] Voice 2: That's correct.

[2:53:14] Voice 2: So we'll have the auditors in for an audit planning report,

[2:53:18] Voice 2: and then we'll move into the full financial planning committee as usual.

[2:53:21] Trustee Grove: Okay.

[2:53:22] Trustee Grove: And the audit committee members are all aware of that, I hope?

[2:53:27] Voice 2: I hope so too.

[2:53:28] Trustee Grove: Good.

[2:53:30] Trustee Grove: So may I have a motion to end this lovely meeting?

[2:53:38] Trustee Grove: So moved.

[2:53:39] Trustee Grove: wow i second well thank you so much one and all um it was um very useful work

[2:53:46] Trustee Grove: and thank you as always to russ and julia and david and claire and nancy and robert

[2:53:51] Trustee Grove: and thank you to all one and all thank

[2:53:55] Trustee Busheikin: you to chair grove it's

[2:53:58] Trustee Grove: always a joy and a pleasure

[2:53:59] Trustee Grove: and we can uh look forward to four excellent years working a lot collaboratively with our

[2:54:05] Trustee Grove: me but provided they don't shut down all our pipelines um but thanks a lot i don't know

[2:54:12] Trustee Grove: where you're counting

[2:54:13] Trustee Rogers: on them so

[2:54:18] Voice 14: i know

[2:54:19] Voice 14: we're still live streaming here but i have to share with you because it came yesterday

[2:54:25] Voice 14: so um they will uh definitely be doing something with those pipelines if i have anything to do

[2:54:30] Voice 14: with it. This is my new book.

[2:54:32] Voice 4: Your book? Wow. Congratulations.

ADOPTED 
 
Financial Planning Committee 
Minutes of a Regular Meeting 
January 20, 2021 ADOPTED Page 1 of 5 
 
Financial Planning Committee 
Minutes of Regular Meeting 
 
Date of Meeting: 
Location: 
January 20, 2021 
Electronic Meeting 
  
Members Present:  Peter Grove, Chair  
Paul Brent, Vice Chair 
Laura Busheikin, Regional Planning Committee Representative 
Sue Ellen Fast, Executive Committee Representative 
Peter Luckham, Executive Committee Representative 
Deb Morrison, Trust Programs Committee Representative 
Laura Patrick, Executive Committee Representative 
Tahirih Rockafella, Local Trustee 
Dan Rogers, Executive Committee Representative 
Kate-Louise Stamford, Islands Trust Conservancy Board Representative 
  
Staff Present: Russ Hotsenpiller, Chief Administrative Officer 
Julia Mobbs, Director, Administrative Services 
David Marlor, Director, Local Planning Services 
Clare Frater, Director, Trust Area Services 
Robert Barlow, Legislative Services Clerk/Recorder 
  
1. CALL TO ORDER 
 
The meeting was called to order at 10:03 a.m. Chair Grove offered gratitude for being able to 
work and meet on the traditional and treaty territories of the Coast Salish First Nations. 
 
2. APPROVAL OF AGENDA 
 
2.1 New Items and Re-ordering of the Agenda 
The following addition was presented for consideration: 
 Item 6.1 – Verbal update on Insurance Options 
 
The following re-ordering of the agenda was presented for consideration: 
 Agenda item 6.1, Verbal update on Insurance Options, to be addressed before item 
5.1;  
 Agenda item 5.5 to be addressed immediately following agenda item 5.2.2. Staff 
noted that the briefing in agenda item 5.5, ‘Regional Planning Committee 2021/22 
Budget Amendments Pending Receipt of Grant’, was meant to be agenda item 5.2.3, 
Potential Fiscal 2021-22 Grant Funding, and will be addressed at that time. 
 
2.2 Approval of Agenda 
By general consent the Committee approved the agenda as amended. 

 ADOPTED 
 
Financial Planning Committee 
Minutes of a Regular Meeting 
January 20, 2021 ADOPTED Page 2 of 5 
 
3. ADOPTION OF MINUTES / COORDINATION 
 
3.1 Minutes of Meetings 
3.1.1 Financial Planning Committee Minutes of November 12, 2020 
By general consent the Committee approved the minutes as presented. 
 
3.2 Resolutions Without Meeting 
None. 
 
3.3 Follow up Action List 
Director Mobbs provided a status update to all items that are currently in progress. 
 
4. TRUST COUNCIL BUSINESS 
None. 
 
6. NEW BUSINESS 
 
 6.1  Insurance Options 
CAO Hotsenpiller reminded the Committee of significant increases in insurance 
premiums and deductibles for Islands Trust.  He indicated that he has been working with 
Director Mobbs to analyze the viability of Islands Trust self-insuring and to determine if 
Islands Trust could be insured through the Municipal Insurance Association of British 
Columbia (MIABC).  He stated that the MIABC would need to do an analysis to 
determine if they would provide insurance to the Trust, and if so, at what cost. This 
analysis would take approximately four weeks and would cost $7,000 to $9,000.  If 
Islands Trust is offered insurance with MIABC and accepts, this fee may be returned to 
Islands Trust by way of reduced insurance costs over the first three years of coverage.  
CAO Hotsenpiller recommended that this analysis be undertaken. 
 
FPC-2021-001 
It was MOVED and SECONDED, 
that Financial Planning Committee request staff to enter into an agreement up 
to $10,000 to provide an actuaries study for the Municipal Insurance Association 
of British Columbia to secure the provision of insurance to Islands Trust. 
CARRIED 
 
FPC-2021-002 
It was MOVED and SECONDED, 
that Financial Planning Committee request staff to put on hold the investigation 
of self-insurance until the conclusion of the work related to the Municipal 
Insurance Association study. 
CARRIED 
 
5. BUSINESS 
 

 ADOPTED 
 
Financial Planning Committee 
Minutes of a Regular Meeting 
January 20, 2021 ADOPTED Page 3 of 5 
5.1 Possible Policy Changes Re: Accumulated Surplus 
 
Director Mobbs presented the briefing, stating that the purpose was to return to a topic 
of discussion that the Financial Planning Committee (FPC) deferred from the November 
12, 2020 meeting.  Trustees were directed to the previous briefing ‘Possible Policy 
Changes Regarding Accumulated Surplus’, which was presented at their November 
meeting, for discussion.  The briefing describes the use of accumulated surplus funds at 
Islands Trust and discusses alternatives for possible policy changes regarding these 
funds but did not make any recommendations.   
 
The FPC passed the following resolution at the November 12, 2020 meeting: 
 
FPC-2020-056 
It was MOVED and SECONDED, 
that the motion ‘that Financial Planning Committee request staff provide a 
recommendation in regards to the minimum balance of the general surplus of 
15% - 20% and the ramifications thereof’ be postponed for consideration to the 
January 2021, Financial Planning Committee meeting. 
 
Topics discussed included: 
 The time of year that is most appropriate to measure surplus and liquid 
resources for purposes of determining the adequacy of Policy regarding 
minimum surplus balance. 
 The current use of surplus funds for Islands Trust budgeting, and how using 
surplus funds to cover ongoing operations could create the need for significant 
tax increases in future years. 
 Whether or not the current surplus balances put Islands Trust at risk of running 
out of liquid resources to cover operations. Staff indicated this is currently not a 
risk.  
 The risk tolerance level of Trust Council is largely unknown to staff, which would 
inform any recommendations on changes to minimum surplus balances in 
Policy. 
 
FPC-2021-003 
It was MOVED and SECONDED, 
that Financial Planning Committee request staff to recommend changes to 
policy 6.5.1 for review by Financial Planning Committee. 
CARRIED 
 
FPC-2021-004 
It was MOVED and SECONDED, 
that staff provide a sensitivity analysis to show the impact of revising the 
minimum balance of the general surplus percentage to 15% and 20% of annual 
expenses. 
CARRIED 
 
5.2 2021/22 Budget: Draft 2, Version 1 

 ADOPTED 
 
Financial Planning Committee 
Minutes of a Regular Meeting 
January 20, 2021 ADOPTED Page 4 of 5 
 
5.2.1 Changes to the Draft 2021/2022 Budget 
Director Mobbs presented the Briefing, indicating that it was to inform the FPC 
of changes made to the draft 2021/22 budget since it was last reviewed by Trust 
Council in December 2020. Major changes included updates for resolutions 
passed by Trust Council in December, resolutions passed by the Salt Spring 
Island Local Trust Committee, and updates for new data provided by BC 
Assessment. Further revisions will be incorporated based on upcoming third 
quarter forecast figures and the draft 2021/22 budget will be brought forward 
again to the next FPC meeting in February. 
 
  5.2.2 Surplus Funds Allocation 
Director Mobbs presented the document for information.   
 
  5.2.3 Potential Fiscal 2021/22 Grant Funding 
Director Marlor presented the briefing, indicating that the Regional Planning 
Committee is requesting amendments to the draft 2021/22 budget subject to 
approval of grant funding from the provincial Healthy Watersheds Initiative.  
This potential grant could provide funding for a number of Islands Trust projects 
already identified as top priorities for Trust Council and/or Local Trust 
Committees that relate to the Freshwater Sustainability Strategy and to 
Reconciliation.  Director Marlor indicated that given the grant funding approval 
has not been confirmed at the time of the meeting, the briefing is presented for 
information only, but could result in budget changes in the event that the grant 
approval is received. 
 
The Committee recessed at 11:55 a.m and reconvened at 12:30 p.m. 
 
5.3 2021/22 Budget Consultation 
Director Frater introduced the 2021/22 Budget Public Consultation Briefing, indicating 
that staff are seeking endorsement from FPC for the draft survey for the 2021/22 
budget consultation program.  Trustees requested edits for clarity and to add additional 
information. 
 
5.4 Property Tax Notice Insert 
Director Frater presented the briefing, indicating that staff were requesting feedback 
from the Committee on the draft Islands Trust tax notice insert for 2021/22.  It was 
noted that this will be the first time that Islands Trust will provide a Rural Tax Notice 
insert in the mailing of Rural Property Tax Notices by the Ministry of Finance. Trustees 
expressed a desire for clarity in the insert to indicate that Local Planning Services 
provides more than just application processing as it includes work in relation to climate 
change, freshwater, and First Nations reconciliation and noted that the information 
regarding Natural Area Protection Tax Exemption Program (NAPTEP) could be more 
appealing.  
 
5.5 Regional Planning Committee 2021/22 Budget Amendments Pending Receipt of Grant 
This item was addressed as 5.2.3. 

 ADOPTED 
 
Financial Planning Committee 
Minutes of a Regular Meeting 
January 20, 2021 ADOPTED Page 5 of 5 
 
7. TOWN HALL & DELEGATIONS 
  
None. 
 
8. NEXT MEETING 
 
Wednesday, February 17, 2021, from 10:30 a.m. to 3:00 p.m. 
 
9. ADJOURNMENT 
 
By general consent the meeting adjourned at 12:57 p.m. 
 
 
 
_________________________ 
Peter Grove, Chair 
 
 
Certified Correct: 
 
_________________________ 
Robert Barlow, Legislative Services Clerk/Recorder