Draft Operating Budget Committee of the Whole January 7, 2019 - PowerPoint PPT Presentation

Draft Operating Budget Committee of the Whole January 7, 2019

Operating Budget 2019-2023 Presenting a balanced draft budget. Factors Affecting the Operating Budget: • Tax Rate stability (2019) vs. Tax Revenue held the same (2018) • Tax rates for Residential is in the mid-to-lower range of comparable communities • Assessment Values increased by 0.031% for 2019 (2018 3.982% decrease) • Inflation: CPI at 2.6% yet “discretionary” spending has decreased • Allocation of Peace River Agreement funds • Continued rationalization of budget costs based on actual recent trends • Interest rate favourable adjustment on debt

Operating Budget 2019-2023 2019 2020 2021 2022 2023 Budget Budget Budget Budget Budget Revenue Municipal Taxes 32,390,951 32,459,995 32,974,405 33,379,749 33,592,310 Grants in lieu of taxes 381,540 385,355 397,624 400,234 400,500 Services provided to other governments 537,802 543,607 549,649 556,063 563,500 Sale of services 11,519,500 11,677,400 11,698,500 11,820,500 11,844,500 Other revenue from own sources 7,569,120 7,727,668 7,759,438 7,818,588 7,895,046 Government transfers (operating only) 3,136,540 3,228,525 3,376,759 3,470,861 3,525,000 Return on investment 1,744,817 1,684,057 1,577,706 1,573,075 1,574,735 Transfers in (operating only) 1,363,364 1,380,964 1,461,964 1,480,964 1,561,464 Collection for other Governments 18,169,100 18,269,100 18,375,100 18,671,100 18,921,100 Government Transfers (Grants) 26,883,252 26,505,314 26,545,894 26,588,732 26,062,381 Accumulated Surplus to cover Amortization 10,505,900 10,555,950 10,622,000 10,672,050 10,698,100 114,201,886 114,417,935 115,339,039 116,431,916 116,638,636 Expenditures by Services Environmental Development 1,726,918 1,758,266 1,774,455 1,791,376 1,810,571 General Government Services 54,657,298 53,696,269 53,526,030 53,613,352 52,902,368 North Peace Leisure Pool 3,590,013 3,732,003 3,748,096 3,790,890 3,848,639 Protective Services 16,039,077 16,667,994 17,312,470 17,841,451 18,340,935 Public Health and Welfare 1,014,382 1,019,559 1,023,204 1,027,794 1,034,813 Recreation and Culture 9,405,280 9,392,574 9,525,694 9,595,081 9,748,451 Sewer Utilities 6,453,268 6,513,000 6,523,000 6,578,000 6,588,000 Transit Services 2,802,000 2,987,000 3,103,000 3,218,000 3,295,000 Transportation Services 11,301,665 11,349,270 11,481,090 11,588,972 11,662,859 Water Utilities 7,211,985 7,302,000 7,322,000 7,387,000 7,407,000 114,201,886 114,417,935 115,339,039 116,431,916 116,638,636 Cash Surplus (Deficit) - - - - -

Operating Budget 2019-2023 2019 2020 2021 2022 2023 Budget Budget Budget Budget Budget Revenue Municipal Taxes 32,390,951 32,459,995 32,974,405 33,379,749 33,592,310 Grants in lieu of taxes 381,540 385,355 397,624 400,234 400,500 Services provided to other governments 537,802 543,607 549,649 556,063 563,500 Sale of services 11,519,500 11,677,400 11,698,500 11,820,500 11,844,500 Other revenue from own sources 7,569,120 7,727,668 7,759,438 7,818,588 7,895,046 Government transfers (operating only) 3,136,540 3,228,525 3,376,759 3,470,861 3,525,000 Return on investment 1,744,817 1,684,057 1,577,706 1,573,075 1,574,735 Transfers in 1,363,364 1,380,964 1,461,964 1,480,964 1,561,464 58,643,634 59,087,571 59,796,045 60,500,034 60,957,055 Expenses Salaries, wages and employee benefits 24,529,911 25,073,224 25,608,074 26,034,453 26,433,096 Contracted and general services 15,813,299 16,298,004 17,001,334 17,489,455 18,018,663 Materials, goods and supplies 4,089,342 4,033,049 3,979,437 4,037,087 3,962,739 Utilities 2,032,200 2,045,500 2,053,065 2,064,515 2,079,180 Other expenses 1,983,257 1,952,989 1,888,676 1,894,226 1,927,219 Interest and bank charges 1,429,302 1,395,702 1,395,702 1,395,702 1,395,702 Principal on Long-Term Debt & Actuarial Adj. 2,097,054 2,054,965 2,135,988 2,220,230 2,307,820 Transfers out (to operating reserves only) 7,312,718 7,587,872 7,446,438 7,422,532 7,417,269 59,287,083 60,441,305 61,508,714 62,558,200 63,541,688 (643,449) (1,353,734) (1,712,669) (2,058,166) (2,584,633) Requisitions: Collection for other governments revenue 18,169,100 18,269,100 18,375,100 18,671,100 18,921,100 Other tax requisitions - Expenditures 18,169,100 18,269,100 18,375,100 18,671,100 18,921,100 0 0 0 0 0 Grant Revenue Received and Transferred: Government transfers Revenue (capital only) 26,883,252 26,505,314 26,545,894 26,588,732 26,062,381 Transfers out (capital expenditures only) 26,239,803 25,151,580 24,833,225 24,530,566 23,477,748 643,449 1,353,734 1,712,669 2,058,166 2,584,633 Balanced Cash Budget Net Surplus (Deficit) 0 0 0 0 0 Depreciation (xfr from Accumulated Surplus) 10,505,900 10,555,950 10,622,000 10,672,050 10,698,100 Operating & Capital Revenues Operating Revenue 58,643,634 59,087,571 59,796,045 60,500,034 60,957,055 Collection for other governments revenue 18,169,100 18,269,100 18,375,100 18,671,100 18,921,100 Transfer from Accumulated Surplus (Amortization) 10,505,900 10,555,950 10,622,000 10,672,050 10,698,100 Government transfers Revenue (capital only) 26,883,252 26,505,314 26,545,894 26,588,732 26,062,381 Balanced to the 2019-2023 Financial Plan 114,201,886 114,417,935 115,339,039 116,431,916 116,638,636 Operating & Capital Expenditures Operating Expenses 59,287,083 60,441,305 61,508,714 62,558,200 63,541,688 Amortization of Tangible Capital Assets 10,505,900 10,555,950 10,622,000 10,672,050 10,698,100 Other tax requisitions - Expenditures 18,169,100 18,269,100 18,375,100 18,671,100 18,921,100 Transfers out (capital expenditures only) 26,239,803 25,151,580 24,833,225 24,530,566 23,477,748 Balanced to the 2019-2023 Financial Plan 114,201,886 114,417,935 115,339,039 116,431,916 116,638,636

Operating Budget 2019 2018 2019 Favourable Tax base and assessment values Budget Budget (Unfavourable) Percentage increased for commercial businesses Revenue Municipal Taxes 31,765,421 32,390,951 625,530 1.97% Grants in lieu of taxes 377,762 381,540 3,778 1.00% 911 dispatch service discontinued Services provided to other governments 764,409 537,802 (226,607) (29.64%) Sale of services 11,494,900 11,519,500 24,600 0.21% Other revenue from own sources 7,679,134 7,569,120 (110,014) (1.43%) Pool subsidy and recreational Government transfers (operating only) 3,064,800 3,136,540 71,740 2.34% fees & rentals decreased Return on investment 1,764,436 1,744,817 (19,619) (1.11%) Transfers in 1,241,925 1,363,364 121,439 9.78% 58,152,787 58,643,634 490,847 0.84% 2% collective agreement + salary grid Expenses Salaries, wages and employee benefits 23,781,177 24,529,911 (748,734) (3.15%) progression Contracted and general services 15,836,827 15,813,299 23,528 0.15% Materials, goods and supplies 4,361,437 4,089,342 272,095 6.24% Discretionary spending $226k Fav Utilities 2,114,200 2,032,200 82,000 3.88% decrease (+in 2018=$754k fav) Other expenses 1,832,100 1,983,257 (151,157) (8.25%) Interest and bank charges 2,244,048 1,429,302 814,746 36.31% Principal on Long-Term Debt & Actuarial Adj. 2,019,279 2,097,054 (77,775) (3.85%) Interest expense decrease offset HR Transfers out (to operating reserves only) 7,042,311 7,312,718 (270,407) (3.84%) 59,231,379 59,287,083 (55,704) (0.09%) cost increase (1,078,592) (643,449) 435,143 40.34% Note: some thought towards an Requisitions: Collection for other governments revenue 17,904,140 18,169,100 264,960 increase in tax rate might be prudent Other tax requisitions - Expenditures 17,904,140 18,169,100 (264,960) to offset future HR cost increases 0 0 0 Government transfers Revenue (capital only) 27,273,975 26,883,252 Transfers out (capital expenditures only) 26,195,383 26,239,803 1,078,592 643,449 Balanced Cash Budget Net Surplus (Deficit) 0 0

Grant Revenue Received & Realized as Income Government Transfers Revenue (In) 2018 2019 Capital Grant Revenue Recognized Budget Budget Provincial - Other Grants (Peace River Agreement) 01-10-133-615 (25,347,911) (24,500,000) Conditional Provincial (BC Hydro Community Measures Agreement01-10-133-605 (1,087,449) (1,125,882) Federal - Conditional Grants (Gas Tax) 01-10-133-625 (838,615) (839,745) Unconditional Provincial Other (PRRD Economic Development) 01-10-133-640 - (417,625) Capital Revenue Received (27,273,975) (26,883,252) Operating Grant Revenue Recognized Provincial Gov't Subsidy - Transit 01-10-380-315 (785,500) (785,000) Provincial Gov't Subsidy - Handy Dart Transit 01-10-381-315 (455,000) (485,000) Provincial Gaming Grant 01-10-760-600 (750,000) (750,000) Traffic Fines - Revenue Sharing 01-10-211-605 (270,000) (300,000) Unconditional - Federal 01-10-712-630 (5,000) (5,000) Unconditional - Regional & Other Grants 01-10-620-635 (50,000) (50,000) Regional & Other - Unconditional Grants - Fire Suppression 01-10-242-640 (724,300) (736,540) Regional & Other - Conditional Grants 01-10-712-640 (25,000) (25,000) (3,064,800) (3,136,540) Grant Revenue Recognized (30,338,775) (30,019,792)