SLIDE 1
District of Sparwood 2019-2023 FINANCIAL PLAN Public Consultation - - PDF document
District of Sparwood 2019-2023 FINANCIAL PLAN Public Consultation - - PDF document
District of Sparwood 2019-2023 FINANCIAL PLAN Public Consultation Meeting March 20, 2019 Presented by: Michle Schalekamp, CPA, CMA Introduce members of Council and Senior Management team. 1 Public Consultation Meeting Agenda
SLIDE 2
SLIDE 3
Improve the efficiency, transparency and public involvement in the budget process Ensure the public understands and supports the direction of Council
Why are we here?
Community Charter – Section 166
“A Council must undertake a process of public consultation regarding the proposed financial plan before it is adopted”
We are here because Section 166 of British Columbia’s Community Charter states that we must have public consultation regarding the proposed financial plan for the year, this one formal meeting. This gives the public an
- pportunity to see what major projects are planned for the upcoming year
and what their estimated costs will be. This also gives the public an
- pportunity to provide feedback whether it be positive or negative, as both
can be useful. During the early part of the year before the current financial plan is adopted, we operate under the authority of the financial plan adopted in the previous year, which makes provision for operations in a 5 year period. This presentation will deal with operations in an overview only.
3
SLIDE 4
Sustainability is defined as:
“Meeting the needs of the present without compromising the ability
- f future generations to meet their needs”
Paraphrased from the Brundtland Commission
In order that we remain aware of future needs we review the effects of the capital and the reserve plans out to 20 years.
4
SLIDE 5
Official Community Plan (OCP)
Sparwood undertook to renew their Official Community Plan (OCP) starting in 2013 and the OCP bylaw was adopted in 2015. This plan is the formal communication from the community on where they want to be in the future.
5
SLIDE 6
Strategic Plan
With the adoption of the Official Community Plan, strategic planning is
- undertaken. During strategic planning we chart a course that is intended to
lead to the goals set by the Official Community Plan. As financial plan projects are brought forward for consideration, they will be assessed on how well they head in the direction set by the Strategic Plan. Some items will be more concerned with keeping the District operating effectively and will be neutral in relation to the Strategic Plan. However, some proposals may conflict with the Strategic Plan and should be
- reconsidered. This is especially true of capital items, which once built or
purchased may serve to frustrate the goals set by the OCP for many years. Local government operations gather a significant momentum and just like an ocean liner cannot stop or change direction very quickly. Our present course may already be heading in the general direction that the new Strategic Plan will identify, so a major change of direction might not be needed. It may take one or two budget cycles before a shift of direction is seen.
6
SLIDE 7
Council’s 2019 - 2023 Corporate Strategic Themes
Economic Diversity Community Lifestyle Mining Industry Impact
After the October 2018 election, Council completed a strategic planning session in February 2019 to determine the strategic direction for Sparwood for the next four year. Three clear corporate strategic themes emerged from the session:
- Economic diversity
- Community lifestyle
- Mining industry impact
7
SLIDE 8
2018 Tax Base
The following slides are to give you an idea of where all of the taxes that are collected get distributed and who is paying. Sparwood does not get to keep everything it collects!
8
SLIDE 9
Allocation of Sparwood Property Taxes
$12.7M taxes collected
57% available for municipal use
It should be noted that not all of the taxes that are paid to the District of Sparwood belong to the District. This chart shows that of the total 2018 taxes collected in Sparwood ($12.7M)
- nly 57% ($7,325,000) is available for the District’s use.
2018 Allocation of Sparwood Taxes EV Mine Pool - Fernie, Elkford & Area A 2,002,342 EV Mine Pool - Sparwood 3,118,869 District of Sparwood General 4,206,802 Regional Hospital District 175,130 RDEK - general 238,762 EValley Waste - closure & debt 465,348 School taxation 2,117,858 Police 329,290 BCAA & MFA 110,355 TOTAL $12,764,756
9
SLIDE 10
Sparwood Tax Share by Class
Mine Pool – 46.8% Residential – 24.6% Business – 12.4% The Mine Pool taxes will increase or decrease in future years by the lesser of CPI and the average tax increases in the Elk Valley.
10
SLIDE 11
Keeping up with the neighbours – 2018
(Selected 1200 square foot home) Fernie Crowsnest Pass Elkford Sparwood
Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42 Utilities 704.08 1,080.00 483.75 741.84 Total 4,028.11 3,967.20 3,246.45 3,117.26
To see how our taxes and utilities compare with surrounding communities we have been tracking four similar homes in these communities from year to year. Sparwood’s total taxes and fees continue to be reasonable in comparison to its neighbours. Please note that these are not always perfectly comparable numbers as each area’s taxes are used to fund different things. For example, the Crowsnest Pass taxes help fund their ambulance service. The results are affected by the assessed value. The sample home is located in lower Sparwood.
11
SLIDE 12
2019 Operating Budget
12
SLIDE 13
Executive Assistant (HR/Safety/Communications) position Conceptual design Fire Hall #2 Teck – Condition 21 consulting fees Complete flood mitigation strategy Parks and recreation master plan Update
- Zoning bylaw
- Subdivision servicing bylaw
- Cemetery master plan
Continuing to focus on
- Wildlife mitigation strategies
- Economic diversification
- Trail development
- Water leak repairs
2019 Major Operating Initiatives
These are some of the operational items that Staff and Council are working
- n to ensure that Sparwood moves forward.
13
SLIDE 14
2019 Operating Revenue $13.5M
Taxation is 57% (2018 57%) of our revenue, while user fees are 20% (2018 18%). The remaining 23% is from various other sources, such as grants.
14
SLIDE 15
2019 Operating Costs $13.5M
2019 - $13,461,366 2018 - $13,157,305 Administration includes
- office and lease building maintenance, community broadband, IT, legal,
finance, human resources, records management Protection includes
- bylaw enforcement, building inspection, animal control and emergency
planning Public Health includes
- mosquito control and Cemeteries
Community Relations includes
- visitor information centre, library, coal miner days, youth action network
and various grant programs
15
SLIDE 16
2019 Community Support
* Programs are grant funded and managed through the District.
$560K
16
SLIDE 17
How are Capital Projects Funded?
Debt funding Grants Reserves for capital projects
Replenished by:
Formal repayment with interest Yearly transfers from operations
17
SLIDE 18
When spending
Careful consideration
If reserves are diminished
Must borrow to fund new capital
Debt repayments
Not as flexible
Resource community
Reliant on industry
Must replenish reserves regularly
May lose flexibility to respond to economic downturns
Reserve Funds - Guidelines
18
SLIDE 19
Infrastructure and equipment
Upgrades & replacement
- Reasonable maintenance costs
New spending
Keep up with regulated standards
- Water protection, sewer & waste
Economic development
Grow & diversify the community
- Maintain low taxes
Reserve Funds - Guidelines
As with your house or vehicles, there comes a point where they must be replaced because they are either costing you too much money to repair or they need to be updated to keep up with current regulations. There are always new rules and regulations being set by various levels of government that the District must adhere to. We must also consider the future and develop infrastructure strategically. Often there are Government Grants available to help fund projects, but in the current economic downturn they are often coming up on short time lines and need proof that they have Council authorization and that the District’s share
- f funds are available. An example of this was the Stimulus Funding for the
CPR Overpass and Link Trail. Capital budgets in any one year may contain many more projects than actually move forward just so that we are able to take advantage of potential funding opportunities.
19
SLIDE 20
Borrowing Funds! - When & Why?
Example – major infrastructure upgrades
- Several years down road
- Too costly for reserves
- Borrowing evenly spreads out costs between current & future
taxpayers
Local Service Areas (LSA)
- Infrastructure upgrades for limited area
- Taxpayers in LSA repay debt
*Conserves reserve funds for projects that benefit ALL taxpayers
It is the future residents of the community that benefit from these larger, long term projects. Therefore, they are typically the ones that pay for them over time by paying back the borrowed funds. The District does have a Local Improvement reserve that can be used for very small projects and avoid the significant amount of administration that the borrowing process requires.
20
SLIDE 21
Proposed Capital Projects
2019 Highlights
Some projects will be reduced, some will be handled through operations, some will be deferred until funding is available. Other requests will be rethought – there may be other ways of accomplishing what we need without a capital outlay. The following capital items are still subject to change, and some may only proceed if grant funding is approved, e.g. the skate park.
21
SLIDE 22
2019 Capital Budget
Equipment Replacement
½ ton Pickups (2) $ 105,000 1 ton Crew Cab with Dump Box $ 130,000 3/4 ton Pickup with Sander/Blade $ 73,500 Single Axle Hooklift Truck $ 295,000 Single Axle Dump Truck $ 295,000 1 ton Aerial Bucket Truck $ 190,000 Vacuum Sweeper $ 300,000 Asphalt Reclaimer $ 80,000 These figures are preliminary estimates and will be fine tuned before the financial plan is final.
22
SLIDE 23
2019 Capital Budget
Equipment Replacement (continued)
Snowblower $ 115,500 Hooklift Attachments $ 63,000 IT Switches and Hardware $ 95,000 Emergency Generator (Fire Dept) $ 15,000 SCBA equipment packs $ 263,340 SCBA equipment bottles $52,164 TOTAL $ 2,072,504 These figures are preliminary estimates and will be fine tuned before the financial plan is final.
23
SLIDE 24
2019 Capital Budget
Building Upgrades
Arena Sound System $ 66,000 Outbuilding Energy Retrofit $ 60,000 Main Office Exterior $ 60,500 Public Works (roof, insulation, workshop) $ 179,450 TOTAL $ 365,950
24
SLIDE 25
2019 Capital Budget
Parks and Recreation
Sparwood Heights Multi Purpose Pad $ 80,000 Dog Park $ 60,000 TOTAL $ 140,000
25
SLIDE 26
2019 Capital Budget
Engineering Structures
Hwy 3/43 Middletown $ 330,000 Whiskey Jack - Roads, Sewer, Water* $ 5,472,300 Transfer Station Intersection $ 1,750,000 Sidewalk Repairs $ 450,000 Gravel Road Resurfacing $ 500,000 Pedestrian Bridge Lighting $ 110,000 Fiber Optic Network $ 125,000 Street Repaving $ 450,000 TOTAL $ 9,187,300
* Represents the District’s share of infrastructure required and planned for future development in Sparwood Heights and Whiskey Jack. Whiskey Jack contributes their share.
26
SLIDE 27
2019 Capital Budget
Water System
Water Infrastructure Upgrades $ 250,000 Water SCADA (Supervisory control and data acquisition) $ 180,000 Well#4 and Transmission Line $4,750,000 TOTAL $ 5,180,000
27
SLIDE 28
2019 Capital Budget
Sanitary Sewer System
Infiltration Contingency $ 180,000 Sewer SCADA (Supervisory control and data acquisition) $ 285,000 Buckthorn Lift Station Replacement $ 385,000 Ras Pump Chamber Replacement $ 308,000 TOTAL $ 1,158,000
28
SLIDE 29
2019 Capital Budget
Funding Sources for Capital Projects
TOTAL CAPITAL PROJECTS $ 19,313,754 FUNDING OF CAPITAL PROJECTS Reserves $ 11,246,354 Borrowing $ 0 Grants and Other Sources $ 8,067,400 TOTAL $ 19,313,754
29
SLIDE 30