Derek Kilbourn
Sounder News
As part of the plans for 2026, the Gabriola Fire Protection Improvement District Board have approved borrowing $100,000 against the 2026 Levy, to cover operational costs until the Levy is paid by the Province to the District.
This comes are part of the Board’s 2026 budget and levy decision, that story available here.
Chair Wayne Mercier explained that if the loan were to be $50,000, the cost of such an advance would be $1,500. The reason for doing this though is that the Department often has to cut back on expenditures in the first half of the year, until the Province pays out the Levy in July.
The borrowed monies will be provided by the province in January 2026.
Trustee Diana Moher cautioned that the borrowed money comes out of the other half of 2026.
“It’s like taking an advance on your monthly salary.”
Carol Waldo, finance assistant in the department, said the borrowing was needed to allow the department to operate. She pointed out that the department ends up having to cut costs to make it through to July.
“We….don’t pay salaries in June like we should. We put it to July. It’s a much bigger problem. We need that funding to keep going.”
Mercier asked if she was advocating that borrowing would be a good idea.
Waldo said yes.
Trustee Erik Johnson said borrowing was a better solution that not paying suppliers and staff wages for two months.
“But it’s not a solution.”
He said he wanted to see the board find a way to solve the issue going forward.
Trustee David Chorneyko said the Finance Committee is looking at how to have better long range budgeting, pointing out there hasn’t been the metrics to let them do that so far.
“This has been an ongoing issue for a decade or two. We started the liquidity guidance as a control. Now we need metrics…we don’t even know what the shortfall will be.
“I’m going to speak against it, having our head in the vice is a good way to come up with those controls.
“We need to get a path away from running out of money. It’s a struggle every year. That’s been my rationale for why it always happens. You raise the budget, and for the first half of the year you don’t have the money, and you have to tide you over.”
Mercier said the borrowing mechanism is – according to the Province – typical.
“This is how they expect Districts to operate.”
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