Town of Sidney Financial Plan 2016 – 2020 Feb. 23, 2016
Tonight’s Agenda: 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.
Legislative Overview 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.
Budget Process Timing January 18 th – 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 1 st – 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 23 rd – 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.
Review Process Following opening summary: 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.
What has been Approved? 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.
What has Changed since Introduction? 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.
So What’s the Tax Increase? 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.
Impact on Tax Bill Example: financial impact of 0.84% property tax increase for “average” home assessed at $441,167 (2015: $425,861). 2015 2016 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%
Who Gets Your Tax Dollars? Residential Commercial Other Taxes 22% Municipal 53% School 25%
Who Gets Your Tax Dollars? 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 - 0.0% 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 - 0.0% Municipal Finance Authority 0.09 0.09 - 0.0% Regional Transit Levy 110.51 110.51 - 0.0% 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%
Total Expenditures by Object
Tax Funded Expenditures
Policing Costs – 2009 to 2016 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
Community Support Funding 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 Econ. Dev. 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
Community Support Funding At just under $700K in 2016, 6.3% of Net Operating Budget
General Operating Fund Net Change from Previous Year 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
What is our starting point in budgeting? Maintain Existing Service Levels 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 on extensive experience 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.
Surplus Funding Town is required to have an ongoing Surplus from prior years’ operations 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.
Additional Reductions? 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.
Supplemental Items Two largest projects funded from Gas Tax revenues Downtown Streetscape/Urban Design Standards West Side LAP 3 rd 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.
Supplemental Items 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?
Capital Budget 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.
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