PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN Information Meetings - - PowerPoint PPT Presentation

Information Meetings

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

January 29-31, 2019

Presentation Outline

2

1. Assessment changes 2. Asset management 3. Operational issues 4. Capital/asset issues 5. Provincial taxes 6. 2019 Budget process

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Presentation Outline

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Assessment Changes

1

Assessment Shifts in West Vancouver

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Assessment Change = -15%

Average

Assessment Change = -9.4% Assessment Change = -5%

Above Average

This chart references the arithmetic mean average, as this is the point of 0% tax shift.

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2018 Heat Map

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Heat Map

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Asset Management

2

20 Year Lifecycle Replacement & Maintenance

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Asset Management – Next Steps

• 1. Increase asset levy funding to maintenance level
• 2. Develop “catch up” strategies
• 3. Take action on options for “high use, poor condition”

assets

• 4. Apply framework for evaluating new assets in 2019

budget decision-making process

• 5. Incorporate risk information into asset management

modelling to manage risk

Asset Management – Next Steps

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Operational Issues

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PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Factors affecting the 2019 operating budget:

 Employer Health Tax  revenue reductions in Parks, Culture & Community Services  Ice Arena season extension  interest revenue

2019 Operating Budget

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

In 2019, 1% equals $700,000 of revenue to the District. The impact of a 1% property tax rate increase on three typical properties:

1% Property Tax Rate Increase

Assessed Value of Property Proposed Tax Impact $1 million $12 $2.5 million* $31 $5.0 million $62

*2019 median assessed property value in West Vancouver is $2.5 million.

2019 Preliminary Operating Budget

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Operational increases Labour: contract, reclass, fringe, etc. $ 1,455,839 2.08% Labour: employer health tax $ 1,238,890 1.77% Critical operating items $ 249,747 0.36% Increased NSEM budget $ 17,000 0.02% Ice arena - season extension $ 40,000 0.06% Change in PCCS revenue $ 414,130 0.59% Impact of mitigation measures $ (51,610)

• 0.07%

$ 3,363,996 4.81% Operational savings Fees and charges $ (28,714)

• 0.04%

Incremental investment income $ (1,295,282)

• 1.85%

Savings on bank fees $ (10,000)

• 0.01%

$ (1,333,996)

• 1.91%

Value of new construction TBC 0.00% TOTAL $ 2,030,000 2.90%

2019 Preliminary Operating Budget

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Critical Items: Total items identified as critical $921,099 Currently funded items $346,126 Unfunded items (still under consideration) $574,973

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Capital/Asset Issues

4

2019 Preliminary Capital Budget

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Requirement for: Investment in Existing Assets $25,222,905 Investment in New Assets $1,433,190 Investment in Non-District Assets $250,000 $26,906,095

2019 Preliminary Capital Budget

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Critical Items - Preliminary Listing $26,906,095 Available Funding 2019 Asset Levy Funds Available $15,972,000 2019 Land, Amenity and External Funds $5,582,000 $21,554,000 Funding Shortfall for Required Maintenance $5,352,095

2019 Preliminary Capital Budget

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Critical Items - Preliminary Listing $26,906,095 Available Funding 2019 Asset Levy Available $15,972,000 2019 Additional Asset Levy Requested $1,500,000 2019 Land, Amenity and External Funds $5,582,000 $23,054,000 Funding Shortfall for Required Maintenance $3,852,095

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Five Year Projection – Requirements for Funds

Asset Management – a financial priority

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Provincial Taxes

5

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

• Beginning in 2019, the Employer Health Tax (EHT) applies to:

– salary and wages – all payments (including OT), benefits or allowances that must be included in an employee’s income – payments for casual labour (in addition to the amount paid in lieu of benefits)

• EHT does not apply to contributions to private health services plans

(i.e. extended health)

• EHT will cost the District of West Vancouver approximately $1.2M
• annually. This is more than 4 times as much as was being paid for

MSP premiums in 2018.

Employer Health Tax Summary

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

• The Additional School Tax (AST) was introduced as an amendment to the BC School

Act

• The funding will go to Provincial general revenue to support education
• Beginning in 2019, the AST applies to most residential properties valued >$3M,

including:

– detached homes

– stratified condominium or townhouse units – most vacant land

• AST rates

– 0.2% on the residential portion assessed between $3 million and $4 million – 0.4% tax rate on the residential portion assessed over $4 million

• AST does not apply to non-stratified rental buildings with four or more units
• For mixed-use properties, AST applies only to the residential portion of the

property’s assessed value > $3M

Additional School Tax Summary

Based on BC Government data and E&Y Tax Alert (20 February 2018)

Speculation and Vacancy Tax Summary

• EACH OWNER on title for properties in designated taxable areas MUST

FILE A DECLARATION

• BC residents (other than ‘satellite families’ as defined) will be entitled to

claim a principal residence exemption

• SVT will be from 0.5% to 2% of the assessed value of the property
• Funding will go to a special account for supportive housing IN THE

REGION (not in the specific municipality it came from)

BC taxable areas

(may be altered by the Province)

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Based on BC Government data and E&Y Tax Alert (25 October 2018)

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Budget Process

6

Preliminary Proposed Increase

Median Value Property

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

*Asset levy based on a 1 year period to close the asset maintenance funding gap (2.16% rate increase)

Property with the median assessment value = $2.5M 2018 Taxes & Fees Proposed 2019 Taxes & Fees Y:Y Change Proposed Rate Increase Operational Levy $3,083 $3,173 $90 2.90% (tax %) Asset Levy* $49 $67 $18 2.16% (tax %) Water $632 $695 $63 10% Sanitary/Storm Sewers $939 $1,042 $103 10% Solid Waste $200 $198 $(2)

• 1%

Total Impact to Median Household $4,903 $5,175 $272 5.55% Total Impact to Median Household % 5.55%

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Projects proposed for CAC funding:

Capital Amenity Survey

2019 Budget Information Meetings

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

• Tuesday, January 29, 2019

6:00 p.m. West Vancouver Memorial Library, Welsh Hall West

• Wednesday, January 30, 2019

12:45 p.m. Seniors’ Activity Centre, Learning Studio

• Thursday, January 31, 2019

6:30 p.m. West Vancouver Community Centre, Cedar Room

2019 Budget Schedule

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

October 2018 Requests for FTEs November 2018 Divisional operating and capital budgets AMTG completes asset condition reports December 11, 2018 Presentation to Finance Committee January 28, 2019 Initial presentation to Council January 29, 30, 31, 2019 Budget information meetings Jan 21-Feb 22, 2019 WestVancouverite online survey March 4, 2019 Final review by Council March 11, 2019 2019-2023 Five-Year Financial Plan Bylaw

Questions?

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN