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

PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN Information Meetings January 29-31, 2019

Presentation Outline Presentation Outline 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 2

1 Assessment Changes PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Assessment Shifts in West Vancouver Average Above Average Assessment Change = -15% Assessment Change = -9.4% Assessment Change = -5% 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

2 Asset Management PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

20 Year Lifecycle Replacement & Maintenance 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 PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Asset Management – Next Steps PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

3 Operational Issues PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Operating Budget Factors affecting the 2019 operating budget:  Employer Health Tax  revenue reductions in Parks, Culture & Community Services  Ice Arena season extension  interest revenue PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

1% Property Tax Rate Increase In 2019, 1% equals $700,000 of revenue to the District. The impact of a 1% property tax rate increase on three typical properties: Assessed Value of Proposed Tax Impact Property $1 million $12 $2.5 million* $31 $5.0 million $62 *2019 median assessed property value in West Vancouver is $2.5 million. PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Preliminary Operating Budget 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% PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Preliminary Operating Budget 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

4 Capital/Asset Issues PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Preliminary Capital Budget 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 PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Preliminary Capital Budget 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 PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Preliminary Capital Budget 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 PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Asset Management – a financial priority PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

5 Provincial Taxes PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Employer Health Tax Summary  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. PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Additional School Tax Summary  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 Based on BC Government data and E&Y Tax Alert (20 February 2018) PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

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) Based on BC Government data and E&Y Tax Alert (25 October 2018) PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

6 2019 Budget Process PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Preliminary Proposed Increase Median Value Property Proposed Property with the median 2018 Taxes Proposed 2019 Taxes & Y:Y Change assessment value = $2.5M & Fees Rate Increase Fees Operational Levy $3,083 $3,173 $90 2.90% (tax %) 2.16% (tax %) Asset Levy* $49 $67 $18 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% *Asset levy based on a 1 year period to close the asset maintenance funding gap (2.16% rate increase) PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Capital Amenity Survey Projects proposed for CAC funding: PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Budget Information Meetings  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 PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

2019 Budget Schedule 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 PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN

Questions? PROPOSED 2019-2023 FIVE-YEAR FINANCIAL PLAN