Town of Sidney Financial Plan 2016 2020 Feb. 23, 2016 Tonights - - PowerPoint PPT Presentation
Town of Sidney Financial Plan 2016 2020 Feb. 23, 2016 Tonights Agenda: Brief overview of process and timing What has been approved? Changes to Budget since first presentation Where do we stand: Tax Impacts? Overview,
Brief overview of process and timing What has been approved? Changes to Budget since first presentation Where do we stand: Tax Impacts? Overview, Questions and Approvals by budget area.
The Community Charter requires that municipalities adopt
a five year financial plan each year.
Each Financial Plan covers a rolling 5-year period, and
provides authority to spend money and collect revenues to support our operations.
Until new Fin. Plan is adopted, old one remains in effect.
The Financial Plan establishes the basis upon which
Property Tax and Utility rates are calculated.
January 18th – Committee of the Whole – Budget Introduction
Presentation of summary budget information.
Outlined the starting point for deliberations.
Budget package distributed to Council, and available to public. February 1st – Committee of the Whole
Opportunity to discuss and clarify various parts of the budget.
Opportunity for in-depth discussion prior to final deliberations.
Opportunity for public input.
Additional staff reports part of agenda. February 23rd – Special Council Meeting – Budget Deliberations
Updated presentation for benefit of Council and the public
Direction from the previous meetings incorporated
Goal is for Council to approve the Financial Plan
If additional meeting(s) required, will be scheduled.
Council to approve changes to budget by resolution Subject to tonight’s review, the following resolutions are
anticipated:
Any additions, deletions, changes or deferrals to budget Approval of the general capital budget, as amended Approval of the general operating budget, as amended.
Water & Sewer Budgets
Largely status quo; no change to rates. 1 Supplemental Request
Term Planning Technician.
Access Awareness Grant to BCS ($1,500)
Added as annual line item Corresponding reduction in Grants budget.
Additional use of Gas Tax funding
$164,500 approved for 8 projects Previously tax funded.
Reduction in new funding for Economic Development
Reduced from $100K to $67.5K Total budget with amount carried forward: $132.5K Amount committed to date: $57,685 Remaining: $74,815
Plus $10,000 Open for Business award.
The Draft Financial Plan started out with a 2.72%
general tax increase for 2016.
The above changes reduced this to 0.84%. This means $11 to the average residential property
Means $26 to a Commercial property of the same value.
Example: financial impact of 0.84% property tax increase for “average” home assessed at $441,167 (2015: $425,861).
Annual Monthly Daily Annual Monthly Daily Municipal Taxes 1,357 113 3.72 Municipal Taxes 1,368 114 3.75 Water Parcel Tax 60 5 0.16 Water Parcel Tax 60 5 0.16 Sewer Parcel Tax 120 10 0.33 Sewer Parcel Tax 120 10 0.33 Total 1,537 128 4.21 Total 1,548 129 4.24 Increase 11 0.92 0.03 Actual % increase on municipal charges 0.72% 2015 2016
Residential Commercial
Municipal 53% School 25% Other Taxes 22%
Average Residential Assessment $ % 2016 2015 Increase Increase ASSESSED VALUE 441,167 425,861 15,306 3.59% MUNICIPAL TAXES 1,368.44 1,357.04 11.40 0.84% OTHER GOVERNMENTS School Taxes 734.57 734.57
Regional District 293.75 283.81 9.93 3.5% Regional Hospital 129.77 128.10 1.67 1.3% B.C. Assessment 25.38 25.38
Municipal Finance Authority 0.09 0.09
Regional Transit Levy 110.51 110.51
Regional Library 87.14 85.04 2.11 2.5% Total Other Governments 1,381.21 1,367.50 13.71 1.00% TOTAL $ 2,749.65 $ 2,724.54 $ 25.11 0.92%
Year Per Member 70% Total Cost Members 2009 120,600 84,420 1,181,880 14 2010 129,100 90,370 1,265,180 14 2011 135,400 94,780 1,326,920 14 2012 140,000 98,000 1,372,000 14 2013 150,670 105,469 1,476,566 14 2014 156,000 109,200 1,583,400 14.5 2015 159,130 111,391 1,670,865 15 2016 167,300 117,100 1,756,200 15
Amounts budgeted for community support have increased over the past several years:
2012 2013 2014 2015 2016 MWC 185,123 191,132 197,852 255,527 263,838 Museum 98,655 103,300 100,941 99,175 110,567 Chamber 60,000 60,000 60,000 60,000 60,000 SODC 50,996 51,336 55,751 78,736 78,669
60,000 60,000 63,962 100,000 67,500 Other 69,930 70,900 91,503 79,400 79,245 Total 524,704 536,668 570,009 672,838 659,819
At just under $700K in 2016, 6.3% of Net Operating Budget
2015 2016 General Government (86,000) $ 110,700 Policing (RCMP) 111,700 71,000 Fire Department 61,300 18,200 Other Protective 12,900 25,600 Engineering & Works (9,600) 32,300 Planning 7,500 38,400 Parks (115,600) 53,700 Other Cultural 8,800 8,400 Fiscal Services 206,500 (55,860) Current Capital 134,900 (88,600) 332,400 $ 213,840 $ Tax Base Growth (75,000) (125,000) Net Tax Impact 257,400 $ 88,840 $
Net Change from Previous Year
The “Base Budget” is developed to maintain existing levels of service to taxpayers
i.e. what does it cost to provide the services that have been previously approved by Council, and expected by the public?
Staff use collective experience, along with the latest external information, to determine cost of delivering services
We don’t budget for “worst case”, only “most likely case” based
Various departmental budgets are developed on this basis
We look at “bottom line” for each function
Individual line items are only a best guess as to the mix of labour, contract and materials required to get the job done for the year
Not always an increase; we look for efficiencies where available.
Town is required to have an ongoing Surplus from prior years’
Does not mean that we can’t have a deficit in a given year.
We have a long-standing policy that outlines what our minimum balances should be:
Based on percentage of previous year’s revenues
25% for Taxes, 15% for Utilities
We use a certain amount of Surplus to balance the budget each year (currently $200K)
This prevents “over-taxing” for current operations
Expectation is that departments given sufficient funds to carry out mandate, but that some savings will occur.
One-time increase to $250K for 2016 only.
Most likely sources for additional reductions:
Capital projects funded from Taxation Supplementals
Why not the Operating budget?
Mainly due to use of Surplus funding The $200K ($250K in 2016) we use to minimize tax impact
mainly covers expected savings in Operating budget
If we reduce Ops. budget, we reduce the comfort level with
generating expected savings
Therefore, if Ops. budget reduced, first step would be to also
reduce amount of Surplus funding; hence no tax impact.
Two largest projects funded from Gas Tax revenues
Downtown Streetscape/Urban Design Standards West Side LAP
3rd highest item: $40,000 for Term Planning Tech
This was pre-approved by Council.
Remaining 11 items all under $10K; total $47K. Net impact after one-time 2015: $60,840.
Tsehum Harbour Authority Public Washroom
adding $2,500 per year to assist with maintenance
Beacon Wharf Condition Assessment - $9,000 Various Parks & Library maintenance items - $35,600. Any questions about any Supplemental items?
Total Capital for 2016: $7.3M
$3.1M in Replacement Plan projects
Infrastructure Plans - $1.84M Other replacement plans - $1.24M
$182K in Recurring Programs
e.g. Street Lighting, Underground Wiring, Small equipment
$182K in projects carried forward from 2015 $3.85M in new projects – see document for full listing
Community Safety Building – initial construction phase Employee Parking Lot – initial phase Fishing Pier rehabilitation (may be postponed a year) Skateboard Park – spans 2 years First St. Waterfront Walkway.
Property Fees/ Total Budget Tax RFFC Reserves Grants Debt Other Funding Computer Replacement Plan 50,000 50,000 50,000 Ferry Terminal Marine Structures 145,000 145,000 145,000 Ferry Terminal Building Improvements 200,000 200,000 200,000 Ferry Terminal Dock Metal Painting 100,000 100,000 100,000 Tulista Boat Launch Ramp Repairs 15,000 15,000 15,000 Infra Plan Ardwell Ave Storm 307,900 307,900 307,900 White Birch Road Storm Drain Repair 20,000 10,000 10,000 20,000 Infra Plan-Allbay Rd Drainage, Bowden Rd to End 33,000 33,000 33,000 Infra Plan-Calvin Ave Storm 9,300 9,300 9,300 Infra Plan-Resthaven Dr Storm 252,500 252,500 252,500 Infra Plan-Stirling Way Storm 18,600 18,600 18,600 Infra Plan-Frost Right-of-Way 17,000 17,000 17,000 Fire Vehicle Replacement Plan 493,000 493,000 493,000 Transportation Vehicles 150,000 150,000 150,000 Infra Plan-Bessredge Curb-James White North 24,800 24,800 24,800 Infra Plan-Eastbrook Curbs-Northbrook-Frost 111,400 111,400 111,400 Infra Plan-Resthaven-Malaview-Ardwell 397,700 397,700 397,700 Infra Plan-Mills Paving-Resthaven to Fifth 32,800 32,800 32,800 Shoal Centre Kitchen Dishwasher Replacement 10,000 10,000 10,000 Water Vehicles 70,000 70,000 70,000 Infra Plan-Allbay Rd Water, Bowden Rd to End 15,000 15,000 15,000 Infra Plan-Colinwood-Bowerbank-end of both Cul de Sacs 163,200 163,200 163,200 Infra Plan-Gail Pl-Frost to End 119,700 119,700 119,700 Infra Plan-Seventh & Bevan Watermain Relocation 50,000 50,000 50,000 Infra Plan Sewer-Resthaven Dr,Abandon Ameila 282,400 282,400 282,400 Replacement Plans 3,088,300
3,088,300 Funding Sources
Property Fees/ Total Budget Tax RFFC Reserves Grants Debt Other Funding Workplace Efficiency Upgrades 5,000 5,000 5,000 Computer Equipment Fund 5,000 5,000 5,000 Engineering Equipment 4,500 4,500 4,500 Fire Dept. Small Equipment 17,500 17,500 17,500 RCMP Furnishings/Equipment 7,500 4,875 2,625 7,500 Parks Equipment 10,000 10,000 10,000 Underground Wiring 20,000 4,300 15,700 20,000 Green Technology Applications 10,000 10,000 10,000 Public Works Equipment 10,000 10,000 10,000 Decorative Street Lighting 30,000 1,500 28,500 30,000 Bus Stop Improvements 12,500 12,500 12,500 Water Equipment 10,000 10,000 10,000 Hydrant Upgrades 10,000 10,000 10,000 Sewer Equipment 10,000 10,000 10,000 Access Hatches-Pump Stations 20,000 20,000 20,000 Recurring Programs 182,000 120,675 58,700
182,000 Asset Management Software 30,000 30,000 30,000 Reay Creek Dam Assessment & Remediation 34,000 34,000 34,000 Gateway Signage 42,000 23,500 13,500 5,000 42,000 Wayfinding Signage 29,000 29,000 29,000 Backflow Preventers 37,000 37,000 37,000 Pump Station Spare Pump 10,000 10,000 10,000 Projects Carried Forward 182,000
30,000 13,500
182,000 Funding Sources
Property Fees/ Total Budget Tax RFFC Reserves Grants Debt Other Funding Tempest - Tax Notice eBilling 11,850 11,850 11,850 Planning File Room Reorganization 12,000 12,000 12,000 Tempest - Licencing Module Upgrades 20,000 20,000 20,000 Tempest - Prospero Mobile Inspections 10,000 10,000 10,000 Fishing Pier Metal Painting 500,000 500,000 500,000 DCC Bylaw 10,000 10,000 10,000 Community Safety Building 2,000,000 2,000,000 2,000,000 Lochside Park Upper Walkway Upgrade 40,000 40,000 40,000 Waterfront Walkway Upgrade (Eastview to First St Access) 120,000 60,000 60,000 120,000 Skateboard Park 150,000 100,000 50,000 150,000 Rotary Park Irrigation Replacement 30,000 15,000 15,000 30,000 Lochside Walkway Irrigation 8,000 8,000 8,000 Seaside Walk Irrigation 9,000 9,000 9,000 Tulista Park Bike Station 10,000 10,000 10,000 Tulista Park Extension Swing 3,000 3,000 3,000 Water Fountain Stations Downtown 15,000 15,000 15,000 Public Works Administration Building Design 25,000 20,000 5,000 25,000 Building Exposure Analysis 50,000 50,000 50,000 Public Works Compound Extension and Fencing 50,000 50,000 50,000 Seventh /Bevan Traffic Island and Lane Adjustment 28,000 28,000 28,000 Henry Avenue Sidewalk - 4th St to 3rd St 30,000 30,000 30,000 Beacon Ave Curb & Sidewalk 23,000 23,000 23,000 Beacon Ave Curb Returns - Third St & Fourth St 45,000 25,000 20,000 45,000 Beacon Ave Crosswalks 9,000 9,000 9,000 Resthaven Driveway Drops 10,000 10,000 10,000 Decorative Lighting Upgrades 60,000 60,000 60,000 Traffic Signal Light Upgrade 25,000 25,000 25,000 Bowerbank/Amelia Traffic Improvements 15,000 15,000 15,000 Downtown Employee Parking Lot 500,000 500,000 500,000 Shoal Centre Kitchen Refrigeration Unit 10,000 10,000 10,000 Shoal Centre Dining Room Flooring 10,000 10,000 10,000 Shoal Centre Reception Windows 2,000 2,000 2,000 Town Hall Service Connections 10,000 10,000 10,000 New Projects 3,850,850 296,000 37,000 151,850 1,301,000 2,050,000 15,000 3,850,850 Funding Sources
2016 2017 2018 2019 2020 Workplace Efficiency Upgrades 5,000 5,000 5,000 5,000 5,000 Computer Equipment Fund 5,000 5,000 5,000 5,000 5,000 Town Hall Foundation Drainage 100,000 Engineering Equipment 4,500 4,500 4,500 4,500 Fire Dept. Small Equipment 17,500 17,500 17,500 17,500 17,500 RCMP Furnishings/Equipment 4,875 4,875 4,875 4,875 4,875 Parks Equipment 10,000 10,000 10,000 10,000 10,000 Totem Park Shelter and Trees 20,000 Rotary Park Irrigation Replacement 15,000 15,000 15,000 15,000 Lochside Walkway Irrigation 8,000 Seaside Walk Irrigation 9,000 Fifth Street Medians Landscaping 16,500 Resthaven Park-Propeller 10,000 Underground Wiring 4,300 20,000 20,000 20,000 20,000 Public Works Equipment 10,000 10,000 10,000 10,000 10,000 Water Fountain Stations Downtown 15,000 15,000 15,000 Public Works Administration Building Design 20,000 Scissor Lift 20,000 Small Packer-Garbage Truck 100,000 Building Exposure Analysis 50,000 Public Works Compound Extension and Fencing 50,000 Pipe Rack Storage Shed 7,500 Parks Building-Upper Mezzanine Crane Pulley System 10,000 Public Works Wash Bay 15,000 Parks Building Washroom/Shower -Lower Level 10,000 Parks Building Storage Mezzanine 12,500 12,500 Decorative Street Lighting 1,500 30,000 30,000 30,000 30,000 Seventh /Bevan Traffic Island and Lane Adjustment 28,000 Beacon Ave Curb Returns - Third St & Fourth St 25,000 Beacon Ave Crosswalks 9,000 Resthaven Driveway Drops 10,000 Traffic Signal Light Upgrade 25,000 McDonald Park Rd Pave Van Kam Shoulders 3,000 Resthaven Curb Returns - Allbay Rd & Harbour Rd 10,000 Shoal Centre Kitchen Refrigeration Unit 10,000 Shoal Centre Dining Room Flooring 10,000 Shoal Centre Reception Windows 2,000 Bus Stop Improvements 12,500 12,500 12,500 12,500 12,500 Subtotal 356,675 351,375 171,875 156,875 219,375
Construction budget of $10M included over 2 years Funding indicated in budget is preliminary
Full funding would also include Gas Tax and potential sale of
existing site
Expect to bring forward Borrowing Bylaw soon
Final borrowing amount still expected to be $5M to $8M
Impact to average residential taxpayer for that range is
2.3% to 3.8% ($32 to $52).
Unless…growth in tax base can offset some of the costs.
2016 2017 2018 2019 2020 Total Property Taxes 10,767,343 11,095,231 11,096,780 11,402,515 11,753,017 Increase in Tax Requirement 213,840 327,888 1,549 305,735 350,502 Less: Non-market Change (125,000) (124,999) (124,998) (124,997) (124,996) General Increase $ 88,840 202,889 (123,449) 180,738 225,506 General Increase % 0.84% 1.88%
1.63% 1.98% Potential CSB Borrowing
212,000 212,000 212,000 Revised Impact 0.84% 2.87% 0.80% 3.54% 3.84%
Once all other funding sources considered, budget must be
balanced through sufficient property tax funding
Tax “increase” is partially mitigated by “new” revenues through
growth
General increase is then applied (evenly).
General changes in Assessments are factored out when setting rates
This keeps our revenues predictable.
Different rates paid by various classes of property
More detail to come through upcoming budget process.
Council may consider change in tax allocation policy
If so, examples provided here could change.
The following table compares (one measure of) inflation over the last
5 years to the annual tax increases:
The inflation factor used in the above table is not the most relevant
to capture the Town’s expenditure types.
Price of oil and construction materials, for example, has greater impact on
Town budget than on typical basket of goods that makes up CPI.
More importantly, CPI does not allow for additions to the “basket”
i.e. New services.
2012 2013 2014 2015 2016 Cumul. Victoria CPI* 2.1% 1.0%
0.9% 1.1% 4.9% Tax Increase 2.77% 2.93% 2.61% 2.52% 0.84% 12.2%
In comparing CPI to tax increases, must also consider:
Changes in service level from one year to the next
e.g.. Firefighter Hiring Plan, additional Policing.
Non-discretionary increases over which the Town has no control
e.g. Large increases to RCMP contract.
Increases deferred from (or accumulating in) previous years
e.g. Setting aside more funds to deal with Infrastructure Deficit Incurring debt to pay for building replacements or parks expansion Hiring a Parks staff member to assist with increased maintenance volumes
due to addition of park spaces.
Delete: Seventh & Bevan Lane Adjustment
$28K from Capital budget
Add: Communications Consulting
$25K to Admin Operating budget
Other?
Any additions, deletions, deferrals, other changes. That the general capital budget be approved (as
That the general operating budget be approved (as
Financial Plan bylaw will be brought forward for
Tax Rates bylaw will be brought forward for