CITY OF TRAIL City of Trail 2015 - 2019 Financial Plan 1 General - - PowerPoint PPT Presentation

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CITY OF TRAIL City of Trail 2015 - 2019 Financial Plan 1 General - - PowerPoint PPT Presentation

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January 2019 CITY OF TRAIL City of Trail 2015 - 2019 Financial Plan 1 General Overview Legislation, process Summary Tab 1 of Budget Manual, assessment update, high level overview, impacts Expenditures Tab 3 of Budget

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CITY OF TRAIL

City of Trail 2015 - 2019 Financial Plan 1

January 2019

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SLIDE 2
  • General Overview

– Legislation, process

  • Summary

– Tab 1 of Budget Manual, assessment update, high level overview, impacts

  • Expenditures

– Tab 3 of Budget Manual, review and approval of individual departmental budgets

City of Trail 2015 - 2019 Financial Plan 2

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City of Trail 2015 - 2019 Financial Plan 3

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City of Trail 2015 - 2019 Financial Plan 4

THE MUNICIPAL BUDGET/FINANCIAL PLAN

  • Section 165 of the Community Charter indicates that a municipality

MUST annually adopt a Financial Plan by Bylaw.

  • The planning period for the Financial Plan is 5 years, that period

being the year which the plan is specified to come into force and the following four years.

  • The Financial Plan must set out the objectives and policies of the

municipality for the planning period in relation to:

  • Each funding source and the proportion of revenue to come

from each source.

  • The distribution of property taxes among the classes that are

subject to taxes.

  • The use of permissive tax exemption
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City of Trail 2015 - 2019 Financial Plan 5

THE MUNICIPAL BUDGET/FINANCIAL PLAN

  • The Financial Plan must set out the following for each planning period:
  • Proposed expenditures by the municipality
  • The proposed funding sources
  • The proposed transfers to or between funds.
  • The total of the proposed expenditures and transfers for a year must

NOT exceed the total of the proposed funding sources.

  • The proposed expenditures must set out separate amounts for each of

the following as applicable:

  • The amount to pay interest and principal on municipal debt.
  • The amount required for capital purposes.
  • The amount required for other municipal purposes.
  • Any deficiency with respect to revenue less expenditures must form

part of municipal expenses in the following year.

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City of Trail 2015 - 2019 Financial Plan 6

THE MUNICIPAL BUDGET Budgets are calculated considering historical spending patterns as well as information that is available that will impact the budget in the current year. Following 2018 that involved the addition of new services and associated costs, the 2019 Budget is viewed as a “status quo” budget with adjustments made to budgets that reflect the current level of service and the associated estimated cost to provide the current services. Council should review the budget and make adjustments as deemed necessary.

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City of Trail 2015 - 2019 Financial Plan 7

2019 BUDGET REVIEW The review and approval process of the 2019 Budget includes the following components. The budget must be formally approved by May 15th: Overview / Presentation Expenditure review/approval Revenue review/approval Budget changes / amendments Property tax options / implications Capital Budget review and approval Public consultation (as determined by Council) Finalize all budgets and tax rates Adopt Financial Plan and Property Tax Rate Bylaws

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City of Trail 2015 - 2019 Financial Plan 8

2019 BUDGET – REVIEW OBJECTIVE Primary Budget Objective: Determine the “equilibrium” property tax requirement. TOTAL Municipal Expenditures subtracted from TOTAL Other Municipal Revenues equals EQUILIBRIUM Property Tax Requirement Equilibrium is reflective of the fact that the budget cannot include a deficit and therefore municipal expenses must be fully funded and

  • ffset by Other Revenue or Property Taxes.
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City of Trail 2015 - 2019 Financial Plan 9

BUDGET MANUAL The Budget Manual is organized as follows and has six main sections:

  • Tab 1 – High level summary and explanation of the 2019 Budget.
  • Tab 2 – Revenues
  • Tab 3 – Expenditures
  • Tab 4 – Supporting information and analysis
  • Tab 5 – Five year Financial Plans (General, Water, Sewer) – This forms the

basis for the Financial Plan Bylaw that must be adopted by Council.

  • Tab 6 – Detailed listing of General Ledger accounts for the General

Revenue Fund.

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City of Trail 2015 - 2019 Financial Plan 10

Reviews focus on the high level summaries and associated service levels and summarized cost analysis. Tab 6 provides specific account information as required but the Budget will not be reviewed on an account by account basis. BUDGET MANUAL (continued)

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City of Trail 2015 - 2019 Financial Plan 11

  • Council should consider the longer-range impact of decisions and

how they will impact the financial position of the City, including future property tax revenue requirements.

  • Decisions made or not made can impact future years (i.e. capital

funding, transfers to reserves) and have a compounding impact.

  • This is especially important when considering the Five Year Plan.

The Five Year plan suggests ongoing increase in property taxes to fund anticipated ongoing inflationary increases in operating expenses.

2019 BUDGET – REVIEW OBJECTIVE

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City of Trail 2015 - 2019 Financial Plan 12

2019 BUDGET – PROPERTY TAX RATES

  • Final step in the process once expenditures and revenues are finalized, is

to review property tax options (distribution and tax rates) and impacts.

  • 2016 resulted in the flat tax for residential properties being increased

from $130 to $260 to offset the impacts that resulted from disproportionate variances in assessments. The flat tax was not adjusted in 2017 or 2018.

  • Initial example property tax calculations can be found in Tab 4 of the

Budget Manual.

  • The initial calculation assumes no changes to the flat tax or variances to

major industrial or the business ratio from last year. This includes apportioning the tax increase to major industrial taxes at 61.33% (as

  • pposed to 50% which was the previously policy in accordance with the Job

Protection Commission Agreement).

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City of Trail 2015 - 2019 Financial Plan 13

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City of Trail 2015 - 2019 Financial Plan 14

2019 ASSESSMENT ROLL BM

  • 1. ROLL REVIEW - COMPLETED ROLL ROLL AT DECEMBER 31, 2018

Class 2018 Total Assess 2019 Assessments Change Assessments $ % CL1 - Residential 656,717,300 78,183,000 734,900,300 78,183,000 11.91% CL2 - Utilities 16,445,815 176,540 16,622,355 176,540 1.07% CL4 - Major Industry 205,318,700 7,751,600 213,070,300 7,751,600 3.78% CL5 - Light Industry 2,689,700 (47,700) 2,642,000 (47,700)

  • 1.77%

CL6 - Business 120,685,000 4,795,600 125,480,600 4,795,600 3.97% CL7 - Managed Forest 522,000 (11,000) 511,000 (11,000)

  • 2.11%

CL8 - Rec/Non-profit 1,243,000 234,000 1,477,000 234,000 18.83% 1,003,621,515 91,082,040 1,094,703,555 91,082,040 9.08% Average single family residence: 2019 assessed value 217,689 2018 assessed value 193,543 $ Change 24,146 % Change 12.48% Change

The changes are almost entirely market driven. There is very little new development being added to the assessment roll.

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ASSESSMENT TREND – 2003 TO 2019 BM Page 112

200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Class 8 Class 7 Class 6 Class 5 Class 4 Class 2 Class 1

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City of Trail 2015 - 2019 Financial Plan 16

PRELIMINARY TAX CALCULATION 2019

2019 TAXES

$260

Residential Flat Tax MUNICIPAL RATE CALCULATION Class 2019 RATIO DEBT DEBT GENERAL GENERAL FLAT TOTAL TOTAL % Assessed RATE TAX RATE TAX TAX TAX RATE Total Value

Cl 1 - Residential

734,900,300 1.00 0.2281 167,630.76 3.7787 2,776,967.76 873,600 3,818,198.52 4.0068 26.23%

CL2 - Utilities

16,622,335 9.98 2.2772 37,852.38 37.7228 627,041.02 664,893.40 40.0000 4.57%

CL4 - Heavy Industry

213,070,300 10.46 2.3830 507,746.52 39.5101 8,418,428.86 8,926,175.38 41.8931 61.34%

CL5 - Light Industry

2,642,000 0.70 0.1595 421.40 2.6564 7,018.21 7,439.61 2.8159 0.05%

CL6 - Business

125,480,600 2.24 0.5096 63,944.91 8.4492 1,060,210.69 1,124,155.60 8.9588 7.72%

CL7 - Managed Forest

511,000 2.27 0.5177 264.54 8.5625 4,375.44 4,639.98 9.0802 0.03%

CL8 - Rec/Non-profit

1,477,000 1.48 0.3370 497.75 5.5736 8,232.21 8,729.96 5.9106 0.06% 1,094,703,535 778,358.26 12,902,274.19 873,600.00 14,554,232.45 100.00%

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City of Trail 2015 - 2019 Financial Plan 17

PRELIMINARY TAX CALCULATION 2019 vs 2018

TAX COMPARISON - BY PROPERTY TAX CLASS CITY OF TRAIL TAX LEVY - 2019 BUDGET

Class Change 2018 v 2019 Total Taxes % Total Total Taxes % Total Total Taxes % Change

Cl 1 - Residential

3,688,684 26.13% 3,818,199 26.23% 129,515 3.51%

CL2 - Utilities

657,832 4.66% 664,893 4.57% 7,061 1.07%

CL4 - Heavy Industry

8,656,729 61.33% 8,926,175 61.33% 269,446 3.11%

CL5 - Light Industry

7,220 0.05% 7,440 0.05% 220 3.04%

CL6 - Business

1,091,415 7.73% 1,124,156 7.72% 32,741 3.00%

CL7 - Managed Forest

4,500 0.03% 4,640 0.03% 140 3.11%

CL8 - Rec/Non-profit

8,480 0.06% 8,730 0.06% 250 2.95% TOTAL 14,114,860 100.00% 14,554,232 100.00% 439,372 3.11% 2019 2018

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City of Trail 2015 - 2019 Financial Plan 18

BM Page 8

2019 2018

VAR OVER 2018 BUDGET

Budget Budget Actual

$ %

Expenditure: General government 2,664,800 2,592,050 2,582,282

72,750 2.81%

Protective services 2,369,350 2,310,650 1,953,541

58,700 2.54%

Transportation services 3,729,900 3,547,900 3,408,963

182,000 5.13%

Environmental health services 384,900 381,800 380,239

3,100 0.81%

Public Health and Welfare 296,250 289,850 319,904

6,400 2.21%

Environmental development 177,400 175,300 153,350

2,100 1.20%

Recreation 3,734,150 3,653,000 3,750,097

81,150 2.22%

Library and cultural services 1,122,950 1,107,550 1,042,747

15,400 1.39%

Debt charges 1,158,700 1,150,450 1,174,181

8,250 0.72%

Transfers own reserves and funds 999,550 999,550 999,550

0.00%

General capital fund 2,579,900 2,529,900 2,529,900

50,000 1.98%

Municipal Airport 576,450 478,750 507,800

97,700 20.41%

Unconditional transfers 45,100 36,900 44,028

8,200 22.22%

Transmission of taxes levied for other governments 8,075,350 7,910,350 7,996,634

165,000 2.09%

TOTAL EXPENDITURES 27,914,750 27,164,000 26,843,216

750,750 2.76%

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City of Trail 2015 - 2019 Financial Plan 19 2019 2018

VAR OVER 2018 BUDGET

Budget Budget Actual

$ %

Revenue: Taxation: General municipal taxation 13,775,800 13,344,700 13,344,176

431,100 3.23%

Debt taxes 778,400 770,150 770,165

8,250 1.07%

Special assessments - Sec 407 169,250 156,300 156,236

12,950 8.29%

Water Parcel Tax 503,000 503,000 502,650

0.00%

15,226,450 14,774,150 14,773,227

452,300 3.06%

Grants in lieu of taxes 74,100 63,900 65,065

10,200 15.96%

Services provided to other governments 12,000 14,500 11,961

(2,500)

  • 17.24%

Sales of services 1,802,200 1,732,550 1,821,924

69,650 4.02%

Other revenue from own sources 1,069,650 1,046,400 997,764

23,250 2.22%

Unconditional transfers 540,200 520,600 599,985

19,600 3.76%

Conditional transfers 301,550 299,050 307,372

2,500 0.84%

Conditional transfer - Regional District 473,250 462,500 462,500

10,750 2.32%

Transfers from own reserves/funds: Funding for operations 340,000 340,000

0.00%

Funding for capital expenses Collections for other governments 8,075,350 7,910,350 7,996,885

165,000 2.09%

TOTAL REVENUE 27,914,750 27,164,000 27,036,683

750,750 2.76%

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City of Trail 2015 - 2019 Financial Plan 20

MUNICIPAL CHARGE SUMMARY 2019 Budget 2018 % CHANGE $ Change MUNICIPAL PROPERTY TAXES $1,132.24 $1,089.64 3.91% $42.60

Average Assessment 217,689 193,543

12.48%

24,146.00

WATER (gross) USER FEE 376.50 376.50 0.00% $0.00 PARCEL TAX 150.00 150.00 0.00% $0.00 SEWER (gross) USER FEE 264.00 261.00 1.15% $3.00 GARBAGE USER FEE 132.00 130.00 1.54% $2.00 TOTAL MUNICIPAL CHARGES 2,054.74 2,007.14 2.37% $47.60 Table provides an approximation of taxes and charges levied by the City. 2019 vs 2018

Refer to the Budget Manual for further information and detail.

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City of Trail 2015 - 2019 Financial Plan 21

Tab 3 Budget Manual – Page 23

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City of Trail 2015 - 2019 Financial Plan 22 GENERAL EXPENSES $ Change % of Total Service Budget % Total Budget % Total Change

General Government 2,664,800 $

13.83%

2,592,050 $

13.88% 72,750 $ 12.42%

Protective Services 2,369,350

12.30%

2,310,650

12.37% 58,700 10.02%

Transportation Services 3,729,900

19.36%

3,547,900

19.00% 182,000 31.07%

Environmental Health Service 384,900

2.00%

381,800

2.04% 3,100 0.53%

Cemetery 296,250

1.54%

289,850

1.55% 6,400 1.09%

Parks and Recreation 3,734,150

19.40%

3,653,000

19.57% 81,150 13.84%

Library and Cultural Services 1,122,950

5.83%

1,107,550

5.93% 15,400 2.63%

  • Env. Development Services

177,400

0.92%

175,300

0.94% 2,100 0.36%

Other Fiscal Services 147,000

0.76%

138,750

0.74% 8,250 1.41%

Municipal Airport 576,450

2.99%

478,750

2.56% 97,700 16.68%

Debt Charges 1,158,700

6.02%

1,150,450

6.16% 8,250 1.41%

General Capital Fund 2,579,900

13.39%

2,529,900

13.55% 50,000 8.54%

Statutory Reserves 320,000

1.66%

320,000

1.71%

  • 0.00%

Total 19,261,750 $ 100.00% 18,675,950 $ 100.00%

585,800 $ 100.00% % Increase over 2018 3.14% % Change Total expenses per capita 2,408 $ 2,334 $ 74 $ 3.17% Total taxes per capita 1,819 $ 1,764 $ 55 $ 3.10% Difference 589 $ 570 $ 19 $ 3.40% 2018 2019

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City of Trail 2015 - 2019 Financial Plan 23

General Government 13.83% Protective Services 12.30% Municipal Airport 2.99% Transportation Services 19.36% Environmental Health Services 2.00% Cemetery 1.54% Rec & Culture 25.22%

  • Env. Dev

0.92% Other Fiscal Services 0.76% Debt Charges 6.02% General Capital Fund 13.39% Statutory Reserves 1.66%

Expenditure Distribution 2019 BUDGET

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City of Trail 2015 - 2019 Financial Plan 24

2019 2018 $ % Budget Budget Diff

  • f total

increase TAX LEVY: General Municipal 13,775,800 13,344,700

431,100

98.12% Debt 778,400 770,150

8,250

1.88% Total Levy (difference) 14,554,200 14,114,850

439,350

3.11%

Net Property Tax Levy Increase 14,554,200 14,114,850 439,350

Net Tax increase - % >>>>>>>>> 3.11%

General Revenue Fund

A 1% increase the municipal property tax levy generates additional revenue

  • f $141,150.
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City of Trail 2015 - 2019 Financial Plan 25 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 Expenditure amount Year Expenditure Trend Analysis

(not adjusted for inflation) General Government Protective Services Transportation Services Environmental Health Services Public Health and Welfare Services Recreation and Cultural Services Environmental Development Services Other Fiscal Services Capital Airport

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City of Trail 2015 - 2019 Financial Plan 26

Page 23– Budget Manual

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City of Trail 2015 - 2019 Financial Plan 27

2019 Budget – General Government

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City of Trail 2015 - 2019 Financial Plan 28

2019 Budget – General Government

BUDGET SUMMARY

1 ENHANCEMENTS/INCREASES

Description Improvement/rationale Expense category $ Amount Salaries Wage and benefit increases for salaried and union personnel - at 2%. 24,850 $ Includes reclassification of one management position. Legal To provide sufficient moneys to deal with ongoing costs incurred for legal fees. 5,000 $ Council Indemnity adjustment to deal with loss in 1/3 tax free expense allowance. 20,250 $ Insurance Increase in property premiums to address ongoing increases in replacement 15,000 $ cost values. Miscellaneous minor adjustments (balance to net increase) 25,650 $

% of total Gen Gov budget 0.96%

Total Enhancements ( These are extra funds required and have been included within the Budget Proposal.) 90,750 $

2 REDUCTIONS

Description Impact - Immediate/Long Term Expense category $ Amount Eliminate election/referendum cost Local government elections held every 4 years. (18,000) $ Total Reductions ( These are funds which can be considered for reduction from the proposed 2019 Budget. ) (18,000) $ Net Change in Budget 72,750 $

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CITY COUNCIL CAO/CFO Communication and Events Coordinator Deputy Corporate Administrator CORPORATE ADMINISTRATOR INFORMATION SYSTEMS DEPUTY DIRECTOR OF FINANCE Secretary IT/GIS Payroll Clerk Kim Brooks (U) Brian Gary (U) Alisa Kennedy (U) Accounts Payable Deanna Ingram (U) Taxes/Utilities/Reception Hailey Maclean The structure shown emphasizes positions that are covered under General Government Operations only. Casual position (.35) (U) Diane Semeniuk Summary relects salaries plus estimated benefits costs. 2019 2018 Change Council indemnity $156,450 $136,200 14.87% Salaries under the function total $1,275,750 $1,244,850 2.48% Total general government budget 2,664,800 2,592,050 2.81% Wages as % of total 53.75% 53.28% 0.88% FTE count - General Government 11.55 11.55

(E) - Exempt Position (U) - Union CUPE Local 2087

CITY OF TRAIL

Organizational Structure - General Government Operations - 2019

6 Councillors David Perehudoff (E) Michelle McIsaac (E) Duane Birnie (E) Rino Merlo (E) 1 Mayor Andrea Jolly (E) Sandy Lucchini (E)

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City of Trail 2015 - 2019 Financial Plan 30

2019 Budget – General Government

Detail: Legislative Services: Budget $537,5500 4.58% (+ $23,550 over last year)

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Legislative Council indemnity 156,450 14.87% 136,200 Mayor's office (conf. sec) 114,800 2.04% 112,500 Council expenses 44,000 0.00% 44,000 Grants 173,200 0.58% 172,200 Council - general (events) 49,100 0.00% 49,100 Total Legislative Services 537,550 4.58% 514,000

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City of Trail 2015 - 2019 Financial Plan 31

Council Indemnities - 2019 2019 2018

$ %

Mayor 35,550 30,936 4,614

14.91%

Councillor 17,775 15,468 2,307

14.91% * Indemnities adjusted to reflect the loss of the 1/3rd income tax free allowance plus 2% cost of living.

Change

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City of Trail 2015 - 2019 Financial Plan 32

Expense Explanation of Change from 2017 $ Change Council Adjustment for loss in 1/3rd tax free allowance +2% indemnity increase. $20,250 Salaries 2% salary adjustment $2,300 Other Other adjustments in category $1,000 Total Change Legislative Services – 2019 vs. 2018 $23,550

2019 Budget – Legislative Services

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City of Trail 2015 - 2019 Financial Plan 33

2019 Budget – General Government

Detail: Administration: Budget $384,300 -1.99% (-$7,800 over last year)

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Administration Clerk's office 234,700 2.00% 230,100 Other admin. expenses 149,600

  • 7.65%

162,000 Total Administration 384,300

  • 1.99%

392,100 Change from 2018 (7,800)

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City of Trail 2015 - 2019 Financial Plan 34

2019 Budget - Administration

Expense Explanation of Change from 2018 $ Change Salaries 2% salary adjustment $4,600 Legal Fees Expense trend adjustment based on anticipated

  • ngoing legal issues.

$5,000 Elections 2018 Local Government Election expense eliminated $(19,000) Other adjustments Adjustments in other expense accounts $1,600 Total Increase Administrative Expenses – 2019 vs. 2018 $(7,800)

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City of Trail 2015 - 2019 Financial Plan 35

2019 Budget - Administration

  • Council met to discuss its Strategic Priorities for 2019 going forward.
  • One strategy that is identified as a “high priority” is the completion of a

Human Resources Assessment.

  • It was agreed that the CAO would develop terms of reference.
  • Funding will be required to proceed with this work in 2019.
  • The Technical Services budget would fund such work but the current funding

allocation is thought to be low based on the nature and scope of work to be undertaken.

Proposed Budget Amendment $ Change 2019 Budget – Technical Services $15,000 Additional funding to complete a Human Resources assessment by utilizing a third part consultant. $30,000 Other Technical Services Work $7,500 Proposed Amended Budget $37,500 Increase – Technical Services Budget $22,500 % increase in property tax levy (where 1% = $141,150) 0.16%

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City of Trail 2015 - 2019 Financial Plan 36

2019 Budget – General Government

Detail: Financial Management: Budget $1,211,800 +2.46% (+$29,100 over last year)

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Financial Management Financial salaries 708,900 2.00% 695,000 External audit 39,000 5.41% 37,000 Data processing 463,900 2.93% 450,700 Total Financial Management 1,211,800 2.46% 1,182,700 Change from 2018 29,100

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City of Trail 2015 - 2019 Financial Plan 37

Expense Explanation of Change from 2018 $ Change Salaries 2% salary adjustment – Finance $13,900 Data Processing 2% salary adjustment – Data Processing $4,050 Data Processing Software and equipment $9,150 Audit Audit of Financial Statements $2,000 Total Increase Financial Management – 2018 vs. 2017 $29,100

2019 Budget – Financial Management

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City of Trail 2015 - 2019 Financial Plan 38

2019 Budget – General Government

Detail: General Government Operations: Budget $531,150 +5.54% (+27,900 over last year)

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 General Government Operations Insurance 117,500 14.63% 102,500 Office expenses 67,500 1.28% 66,650 Utilities - City Hall 113,700 1.47% 112,050 Advertising and promotion 216,800 4.96% 206,550 Memberships in organizations 12,650 1.20% 12,500 Miscellaneous/other 3,000 0.00% 3,000 Total General Gov't Services 531,150 5.54% 503,250 Change from 2018 27,900

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City of Trail 2015 - 2019 Financial Plan 39

Expense Explanation of Change from 2018 $ Change Insurance Asset value increases $15,000 Office expenses City Hall Office $850 Utilities City Hall Utilities $1,650 Advertising & Promotion Salaries – New 5 year employment agreement $8,350 Advertising & Promotion Advertising costs (primarily employment advertising) $1,900 Other Other changes $150 Total Increase Gen Gov’t Ops. – 2019 vs. 2018 $27,900

2019 Budget – General Government Operations

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City of Trail 2015 - 2019 Financial Plan 40

Page 29 – Budget Manual

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City of Trail 2015 - 2019 Financial Plan 41

2019 Budget - Protective Services

. The level of service remains unchanged. The City pays directly for 14 regular members and 4 municipal employees who work out

  • f the Trail Detachment.
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City of Trail 2015 - 2019 Financial Plan 42

Contract renewed in 2012. Expenditure trend has previously shown “stalls”

2019 Budget - Protective Services

Summary function/ 2019

% change

2018 Expenditure category BUDGET

vs 2018 Budget

BUDGET Expenditures: Police Services RCMP Contract 1,697,700 3.05% 1,647,450 Auxiliary - Crime Prevention 6,500 11.11% 5,850 Support services 355,350 1.18% 351,200 Building maintenance 114,650

  • 0.74%

115,500 Correctional services 148,100 2.46% 144,550 Total Police Services 2,322,300 2.55% 2,264,550

Change over 2018 57,750

Other Protective Services Building/License 45,950 2.11% 45,000 Emergency services 1,100 0.00% 1,100 Total Other Protective Services 47,050 2.06% 46,100

Change over 2018

950 TOTAL PROTECTIVE SERVICES 2,369,350 2.54% 2,310,650 Total Change 58,700

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City of Trail 2015 - 2019 Financial Plan 43

2018 Budget - Protective Services Year Cost / Member (70%) Total Budget Adjusted 93% * 2018/19 $122,400 $1,713,600 $1,598,350 2019/20 $126,525 $1,771,350 $1,647,350 Change $200 $57,750 $49,000

  • City pays for 14 regular members
  • The RCMP Contract Budget also includes a provision for
  • vertime and DNA services.

* Adjustment factor allows for vacancies when there is less than a full compliment of members.

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City of Trail 2015 - 2019 Financial Plan 44

2019 Budget - Protective Services

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

RCMP cost/member

cost/member

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City of Trail 2015 - 2019 Financial Plan 45

BM Page 39

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City of Trail 2015 - 2019 Financial Plan 46

2019 Budget – Environmental Health

  • Costs are recovered directly from the residential garbage levy –

resulting in no property tax subsidy associated with the service.

  • 2019 residential garbage rate approved - $132.

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2019 Expenditures: Refuse Collection Services Residential contract 204,300 0.25% 203,800 Tipping Fees 149,600 1.77% 147,000 Discount on early payment 31,000 0.00% 31,000 Total Refuse Collection 384,900 0.81% 381,800 Regional Landfill Regional disposal site maint. n/a Total Regional Landfill n/a TOTAL Environmental Health 384,900 0.81% 381,800 Change 3,100

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City of Trail 2015 - 2019 Financial Plan 47

BM Page 48

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City of Trail 2015 - 2019 Financial Plan 48

2019 Budget – Environmental Development

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Expenditures: Planning and zoning Advertising 3,500 16.67% 3,000 Total Planning and zoning 3,500 16.67% 3,000 Community development Community plans 92,500 0.00% 92,500 Total Community Development 92,500 0.00% 92,500 Economic develoment Economic development 81,400 2.01% 79,800 Total Economic development 81,400 79,800 TOTAL 177,400 1.20% 175,300 Change 2,100

  • The City contracts directly with the LCCDT/LCIC for Economic Development Services –

contract expires December 2020.

  • Community planning budget provides moneys for ongoing studies, surveys and plan

development (OCP), Downtown Plan update.

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SLIDE 49

City of Trail 2015 - 2019 Financial Plan 49

Budget Manual Page 80

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SLIDE 50

City of Trail 2015 - 2019 Financial Plan 50

2019 Budget – Library and Culture

Riverfront Centre opened in 2018.

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Expenditures: General Hall of memories 500 0.00% 500 Historical society 10,000 0.00% 10,000 Community events 1,500 0.00% 1,500 Float 10,500 0.00% 10,500 Downtown amenities 21,000 0.00% 21,000 Community in Bloom 100,000 0.00% 100,000 Special community events 7,500 0.00% 7,500 Riverfront Centre - Building Ops 181,450

  • 1.36%

183,950 RC - Museum, Archives, VIC 221,500 2.90% 215,250 Total 553,950 0.68% 550,200 RV Park RV Park operating & maint. 48,600 3.08% 47,150 Total RV Park 48,600 3.08% 47,150 Library Net Tax Subsidy 520,400 2.00% 510,200 TOTAL 1,122,950 1.39% 1,107,550 Change 15,400

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SLIDE 51

51

TRAIL RIVERFRONT CENTRE 2019 2018 2018

VAR OVER 2018 BUDGET

Budget Budget

Actual

$ % Revenue - Museum, Archives and VIC Sales of Services 1,500 2,500 233 (1,000)

  • 40.00%

Programs 1,250 1,250 1,156 0.00% Merchandise 6,000 5,000 7,728 1,000 20.00% Grants and Donations 19,900 14,900 21,330 5,000 33.56% Total Revenue 28,650 23,650 30,447 5,000 21.14% Cultural Services Administration Salaries 173,100 170,150 165,584 2,950 1.73% Training and Development 5,000 5,000 4,716 0.00% Administration 27,350 24,600 20,080 2,750 11.18% Exhibits and Programming 16,000 15,000 12,152 1,000 6.67% Miscellaneous 50 500 221 (450)

  • 90.00%

Total Cultural Services 221,500 215,250 202,753 6,250 2.90% Building Operations Utilities 37,600 34,000 34,552 3,600 10.59% Supplies and Materials 20,700 25,000 14,453 (4,300)

  • 17.20%

Wages and salaries 41,450 39,750 24,799 1,700 4.28% Contract Services 79,200 82,200 55,696 (3,000)

  • 3.65%

Miscellaneous 2,500 3,000 291 (500)

  • 16.67%

Total Building Operations 181,450 183,950 129,791 (2,500)

  • 1.36%

Library City of Trail - Requisition 520,400 510,200 510,200 10,200 2.00% TOTAL Operating Expenses 923,350 909,400 842,744 13,950 3.54% Capital Debt Financing Charges (net debt) 348,500 348,500 348,500 0.00% Net Operating Deficit 1,243,200 1,234,250 1,160,797 8,950 0.73% Difference 8,950 % Difference 0.73%

Statement of Revenue and Expenditure - RIVERFRONT CENTRE

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City of Trail 2015 - 2019 Financial Plan 52

2019 Budget – Library and Culture

  • The Budget reflects a 2% increase in library funding for 2019.

Expenses in this area represent 66% of the gross expenditure increase (before revenue offset).

  • The Riverfront Centre expenses increase by $3,750 but are offset by an

increase in revenue. The net budget after revenue is reduced by $1,250.

  • The CiB Budget remains unchanged at $100,000.
  • Previous Councils have expressed concern regarding the lack of

regional funding where residents from outside of Trail and Warfield do not pay directly to use the library service.

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SLIDE 53

City of Trail 2015 - 2019 Financial Plan 53

2019 Budget – Library and Culture

  • The Budget includes a grant to the Trail Historical Society in the

amount of 10,000. There is a Memorandum of Understanding between the City and THS and the City has agreed to support and recognize the THS further to the structural changes that were implemented in 2018.

  • The City now manages the RV Park Operations. A resident caretaker

contract is in place for 2019.

  • Other expenses in this functional area are not significantly changed.
  • Council should determine if they want the Library Board and/or CiB

representatives to attend a future meeting to speak directly to the budget submissions presented.

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City of Trail 2015 - 2019 Financial Plan 54

BM Page 91

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City of Trail 2015 - 2019 Financial Plan 55

2019 Budget – Debt Services

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Expenditures: Long term debt interest 477,450 0.00% 477,450 Long term debt principal 534,250 0.00% 534,250 Lease - fitness equipment 30,600 0.00% 30,600 Other fiscal services 116,400 7.63% 108,150 Total 1,158,700 0.72% 1,150,450 TOTAL 1,158,700 0.72% 1,150,450 Change 8,250

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City of Trail 2015 - 2019 Financial Plan 56

2019 Budget – Debt Services

Bylaw Purpose MFA Maturity Payment Opening Principal New Actuarial Closing Interest Issue No. Date Date Balance Issues Addition Balance 2467 RCMP Building 77 2027 1-Jun-19 1,361,657 56,572 66,917 23,625 1-Dec-19 1,238,168 23,625 2716 Aquatic Centre 126 2033 26-Mar-19 2,030,713 47,782 26-Sep-19 83,357 18,059 1,929,297 47,782 2775

  • Pedes. Bridge

137 2042 19-Apr-19 4,659,155 126,214 8,989 63,908 19-Oct-19 4,523,952 63,908 2781 Riverfront Centre 141 2042 7-Apr-19 6,115,534 172,466 5,174 88,032 7-Oct-19 5,937,894 88,032 2809 Riverfront Centre 141 2027 7-Apr-19 1,000,122 95,578 2,868 15,340 7-Oct-19 901,676 15,340 TOTAL DEBT - GENERAL FUND 15,167,181 534,187 102,007 14,530,987 477,374 Budgeted net change in total outstanding 636,194

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SLIDE 57

City of Trail 2015 - 2019 Financial Plan 57 CONSOLIDATED DEBT BY FUND 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 General 4,378,499 4,198,385 4,010,100 8,729,266 15,780,980 15,167,180 Water 1,890,661 1,792,984 1,691,115 1,584,877 1,474,077 1,358,520 Sewer 1,483,345 1,384,625 1,281,956 1,175,180 1,059,580 942,521 CONSOLIDATED 7,752,505 7,375,994 6,983,171 11,489,323 18,314,637 17,468,221 Municipal population 8,000 8,000 8,000 8,000 8,000 8,000 PER CAPITA 969 922 873 1436 2289 2184 BORROWING POWER Under the Community Charter , borrowing power is calculated based on revenue, reflecting more accurately the ability to service debt. Unused borrowing power for the City of Trail based on assessed value and current debt outstanding. Total City Liability Servicing Costs - current 1,250,000 Estimated Liability Servicing Capacity 3,286,000 Estimated borrowing power based on liability servicing capacity 45,920,459

2019 Budget – Debt Services

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City of Trail 2015 - 2019 Financial Plan 58

BM Page 95

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City of Trail 2015 - 2019 Financial Plan 59

2019 Budget – Transfers Own Reserves and Funds

Summary function/ 2019

% change

BUDGET Est Reserve Expenditure category BUDGET

vs 2018 Budget

2018 Balance 2018 Expenditures: Transfers to reserves Equipment replacement reserve 290,000 0.00% 290,000 (17,400) Climate Action / Local Improv. na 91,500 Water capital (parcel tax) 503,000 0.00% 503,000

  • Sewer - tax transfer

176,550 0.00% 176,550

  • Water - tax transfer (Waneta)

30,000 0.00% 30,000

  • Total

999,550 0.00% 999,550 74,100 TOTAL 999,550 0.00% 999,550 74,100

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SLIDE 60

City of Trail 2015 - 2019 Financial Plan 60

Items to note: Equipment Replacement Reserve - Currently the reserve transfer still falls short of matching the depreciated expense of the

  • fleet. This is important as the reserve is used to fund all new

equipment purchases. Annual depreciation is estimated at $387,705 and transfer is $290,000.

2019 Budget – Transfers Own Reserves and Funds

Climate Action Reserve – Funding was eliminated in 2015. Fund was originally established to represent the cost of carbon credits with funding to be used for carbon reduction projects. Bridge Demolition- The City received an estimate to demolish the Old Bridge in 2016 of $3 million if the piers are not removed. Establishment of a reserve may be the only way to practically fund the project in the future.

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City of Trail 2015 - 2019 Financial Plan 61

Transfer to Capital Fund – Funding is increased by $50,000. The incremental funding increase addresses inflation and provides

  • ngoing funding certainty for capital projects that greatly exceed

annual moneys available.

2019 Budget – Transfers Own Reserves and Funds

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City of Trail 2015 - 2019 Financial Plan 62

BM Page 100

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City of Trail 2015 - 2019 Financial Plan 63

2019 Budget – Airport

Summary function/ 2019

% change

BUDGET Expenditure category BUDGET

vs 2018 Budget

2018 Expenditures: Airport operations Salaries and wages 70,000 5.82% 66,150 Wages and stipends 204,400 2.00% 200,400 Consulting/Admin 31,000

  • 13.89%

36,000 Utilities 17,000

  • 9.33%

18,750 Equipment Maintenance 31,000 0.00% 31,000 Ground Operations 32,500 116.67% 15,000 Building Operations 17,500

  • 12.50%

20,000 Insurance 7,500

  • 25.00%

10,000 Aviation Fuel 68,500 95.71% 35,000 Other Expenses 47,050 1.29% 46,450 TOTAL expenses 526,450 9.96% 478,750 Revenues: Passenger fees 230,000

  • 4.17%

240,000 Parking lot revenue 35,000 16.67% 30,000 Fuel 78,000 122.86% 35,000 Leases 42,000 0.00% 42,000 Advertising and other 20,000 73.91% 11,500 TOTAL revenues 405,000 12.97% 358,500 NET Revenue over Expense (121,450) 1.00% (120,250) Change - Expenses 47,700 Net budget increase 1,200

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City of Trail 2015 - 2019 Financial Plan 64

2019 Budget – Airport

  • A new operating plan was incorporated into the 2018 Budget that was

driven by the opening of the airport terminal.

  • The budget advanced is consistent with the approved structure and

represents the same service level as last year.

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City of Trail 2015 - 2019 Financial Plan 65

Outstanding Items

  • Presentation from Department Heads: Transportation Services,

Cemetery, Parks and Recreation

  • Other Revenues
  • Five Year Financial Plan
  • 2019 – 2023 Capital Plan (March per Strategic Objectives)
  • Finalization of Budget and Property Tax Rates – Apportionment.
  • Financial Plan Bylaw and Property Tax Rates Bylaw to be adopted

by May 15th.