2016 FINANCIAL PLAN District of Central Saanich February 2016

Transcription

1 2016 FINANCIAL PLAN District of Central Saanich February 2016

2 Cover and Contents Photo ~ Brentwood Bay Photo Credit ~ Josh McCulloch

3 CONTENTS PART I: INTRODUCTION AND OVERVIEW About this Document 1 Message from Chief Administrative Officer 2 Community Overview 4 Strategic Plans Budget and Five Year Financial Plan Highlights 6 PART II: FINANCIAL MANAGEMENT Organization Profile 8 Budgeting for Results - Linking Budget to Strategy 9 Basis of Accounting/Budgeting 9 Policies and Principles 10 Financial Planning Issues Considered 13 Budget Process 16 PART III: FINANCIAL PLAN SUMMARIES Consolidated Budget 17 Consolidated Summary 19 PART IV: SERVICE PLANS Administration 21 Finance 25 Technology 28 Police Service 31 Fire 34 Planning and Building Services 37 Community Services 40 Engineering 43 Public Works 46 Water Utility 50 Sewer Utility 53 PART V: BACKGROUND Projects and Initiatives Summary 57 Capital Program Summary 60

4 About This Document Our goal with this document is to provide a clear explanation of our fiscal plans and how this helps deliver the right level of programs and services at the right cost for the community. 1

5 PART I INTRODUCTION AND OVERVIEW Introduction Message from the Chief Administrative Officer On behalf of Central Saanich staff, I m pleased to present the District s proposed 2016 Financial Plan. The 2016 Budget will enable the municipality to continue to make progress toward strategic priorities and delivering value for money. Despite rising costs for existing services, the 2016 Budget is based on a property tax increase of 2.9%, which is competitive with other local municipalities. This planned increase will begin to gradually move the municipality toward reasonable levels of capital infrastructure replacement funding and this long term approach will be refined when Long Term Financial Planning is completed later in the year. An Early Debt Retirement Reserve Strategy is introduced in 2016 which, if approved, will allow for the gradual accumulation of reserve funds to enable the early retirement of Fire Station 1 debt in For 2016, all municipal departments will be able to absorb the impact of rising costs with modest impact on the tax revenue requirements. Operating costs continue to be managed within reasonable levels and include contingencies for wages and benefits contracts. Through careful management of costs, and thoughtful evaluation of services and staffing across all departments, the budget sustains core services while continuing to invest in key priorities by leveraging technology and updating service models to the public and within departments. These changes require investment, take time, and will impact the organization and the public. Without these and future improvements, it will be difficult to maintain competitive property tax increases over the next four years. This plan provides a good first step toward the goal of a sustainable approach to financial planning and we look forward to refining it again when we begin work on a Long Term Financial Planning exercise later in Patrick Robins Chief Administrative Officer 2

6 3

7 Community Overview The Corporation of the District of Central Saanich was incorporated on December 12, Population of 15,817 Median Age 49.1 years Total Area 5,007 ha Parkland 201 ha Storm Sewer 76 km Sanitary Sewer 103 km Water 123 km Paved Roads 136 km Total Private Dwellings 6,934 The District of Central Saanich is located on the Saanich Peninsula of Southern Vancouver Island, in the Capital Regional District, and is part of the Greater Victoria area. Central Saanich is largely rural in nature, with small pockets of urbanization that have sprung up over the years. It is sometimes referred to as the breadbasket of Vancouver Island, because of its large agricultural industry. Nearly 70% of the district is classified as farm land, with more than 60% held in the Agricultural Reserve. Agriculture is the most extensive land use activity in Central Saanich, with pockets of housing ranging from hobby farms to townhouses dispersed throughout. The necessary services are provided through two core commercial areas in Brentwood Bay and Saanichton, supported nicely by the Keating X Road industrial/commercial area. The overriding philosophy of the community is to retain the current rural character, agricultural land base and as much as possible provide for slow, long-term growth where it will have the least impact on the agricultural lands and the environment. The District is bounded on both the east and west by ocean, and many beach access points have been built for the enjoyment and use of all. Perhaps the largest recreational area is Centennial Park, situated along Wallace Drive in Saanichton. It is an area that is enjoyed year-round by residents and visitors alike, and provides a beautiful green space in the Saanichton area. But there are many other parks, many of them nature parks that have been left in their natural state, where park users can enjoy nature away from the intrusion of urban hustle and bustle. We acknowledge that the Municipality is located and operates within the traditional territories of the WSÁNEĆ peoples. 4

8 Strategic Plans The Corporate Strategic Plan was originally completed in The Plan is based on themes and strategic directions, which include statements of ongoing priorities for each Strategic Direction, Goal and Action. The Strategic Plan directs and unifies all other corporate planning documents. It serves as a guide to decision-making for Staff, Council, and various Committees and Task Forces. While some of the day-to-day core services are referenced to, the document focuses more on areas of change and improvement in four theme areas: Infrastructure Integrity Organizational Capacity Sustainable Community Good Governance And 11 Strategic Directions: Organizational Capacity Long Term Financial Plan Keating Strategy Walkability Plan Energy Plan Community Climate Action Regional Sustainability Strategy Community Engagement Website Integrated Services Official Community Plan 5

9 2016 Budget and Five Year Financial Plan Highlights 6

10 7

11 PART II FINANCIAL MANAGEMENT Organization Profile The District of Central Saanich provides a wide range of municipal services to the community including Legislative and Administrative Services, Finance, Policing, Fire Protection, Planning, Building Inspections, Bylaw Enforcement, Community Services, Civil Engineering and Public Services including Water, Sewer, and Parks. The Central Saanich Municipal Council represents the citizens of the community and provide leadership as the legislative and policy making body for the organization. Council is comprised of a Mayor and six Councilors who are elected on a four year term: Mayor Ryan Windsor Councillors: Alicia Holman, Christopher Graham, Carl Jensen, Zeb King, Niall Paltiel, and Bob Thompson The Chief Administrative Officer leads a small team of dedicated employees responsible for providing recommendations and policy advice to Council and coordinating the day to day operations of the municipality. Approximately 98 staff operate the municipality. In 2016, additional staff are projected in Administration and Planning in order to provide capacity to meet service demands in those areas. 8

12 Budgeting for Results Linking Budget to Strategy The Municipality plays an essential role to ensure the right level of programs and services are provided at the right cost for the community. Achieving important goals within an affordable budget requires that each dollar is carefully managed and wisely invested. This proposed budget advances key priorities from the strategic plan. Service plans will be developed during the year and form a more significant part of the 2017 budget process and to achieving the District s long-term goals. The allocation of fiscal resources is aligned with Council and Community priorities and is designed to drive results as measured through service performance metrics. Service metrics will begin to be developed in 2016 and the majority included in the 2017 Financial Plan forward. This work is integrated with the Organizational Capacity Review planned for The document is a work in process and will continue to evolve as metrics are developed and the municipality continues to assess capacity and service through the organizational review process. Basis of Accounting and Budgeting The accounting policies of the District conform to Canadian generally accepted accounting principles for local governments and the Consolidated Financial Statements are prepared as prescribed by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Professional Accountants. The District uses various funds to account for its revenues and expenditures. The revenue in each fund may be spent only for the purpose specified in the fund. Each fund belongs to one of three categories: operating, capital or reserve. Operating funds are used for day to day operations. Capital funds pay for physical assets with a life of more than two years. Reserve funds accumulate revenue and interest that will be used to pay for major capital expenses in future years. All funds (general, water utility, sewer utility and reserves) are accounted for on the accrual basis. Sources of revenue are recognized when earned. Revenue unearned in the current period is reported on the balance sheet as deferred revenue. All funds are appropriated for specific purposes as follows: GENERAL OPERATING FUND used to account for all general operating revenues and expenses of the municipality other than water and sewer operations. WATER UTILITY FUND provides for all revenues and expenses related to the operation of the municipal water system. Revenues are collected through water billing based on volume of water consumed. SEWER UTILITY FUND community sewage disposal system revenues and expenses are accounted for separately in this fund. Revenues are primarily recovered from consumption based utility billings. GENERAL CAPITAL FUND (CAPITAL PROGRAMS) used to account for all capital expenditures. STATUTORY RESERVE FUND used to account for all statutory reserve revenues and transfers. 9

13 Policies and Principles 1. FISCALLY RESPONSIBLE, BALANCED, AND FOCUSED ON THE LONG-TERM Central Saanich, like other municipalities, offers a broad range of services but has limited revenue sources. By legislation, the municipality is prohibited from running a deficit in its operating budget, or using debt to finance day-to-day operations. Prudent fiscal stewardship and careful financial planning is used to balance the budget each year. The budget is built with a long-term view in mind. This ensures long-term priorities are pursued in a financially sustainable and resilient manner and considering external economic conditions that could impact citizens and businesses. 2. FINANCIAL SUSTAINABILITY GUIDING PRINCIPLES These principles guide the development of service plans, annual budgets, and medium- to long-term financial and capital plans. In support of these Financial Sustainability Guiding Principles, a number of key financial health indicators are monitored to ensure continued sustainability. These guiding principles and indicators will continue to be developed in 2016 and refined over the next three years. 3. FISCAL PRUDENCE Live within our means Consider long-term implications in all decisions Maintain a stable and predictable revenue stream Keep debt at a manageable level Build in flexibility through adequate reserves and contingencies for emerging priorities and opportunities 4. AFFORDABILITY AND COST EFFECTIVENESS Deliver services that are relevant and result in desired public outcomes Ensure value for money through productivity and innovation Keep property tax and fees affordable. 5. ASSET MANAGEMENT Maintain assets in an appropriate state of repair Optimize capital investments to meet public and economic needs while achieving value for the investment. 10

14 Policies and Principles...continued 6. KEEP DEBT AT A MANAGEABLE LEVEL Like other municipalities and senior levels of government, the District uses debt in its mix of payment methods to fund capital investments. This allows payment to be made over a longer timeframe to align with the useful life of the underlying capital assets, and ensures that more residents and businesses benefit from them. The municipality takes a very careful and strategic approach to its use of debt, ensuring a balanced operating budget and keeping property tax and fees at an affordable level. As part of the district s long-term debt management strategy, the water utility continues to finance its infrastructure replacement programs from a balance of debt financing and pay-as-you-go. This will help maintain modest overall debt and save interest costs over the long term. Looking ahead, the general capital program and the sewer utility will also focus on maintaining a large proportion of pay-as-you-go to maintain the positive longterm debt profile. 7. KEEP PROPERTY TAX AND USER FEES AFFORDABLE Property taxes in recent years have seen moderate increases, ranging from 2.84% to 5.22 %, for a five year average of 3.88%. During this period, the Municipality has invested in public safety such as Fire Station 1; has invested in core infrastructure, such as sewer and water supply system upgrades; and upgraded transportation infrastructure for pedestrians, bikes and vehicles. Looking ahead, the need to replace ageing infrastructure will continue to put increasing pressure on the budget. Understanding the long-term impacts on tax and fee payers arising from capital investment decisions, including debt servicing, ongoing operating costs, and asset lifecycle costs, will be a key consideration in developing the Districts Long Term Financial Plan in the fall of

15 8. BALANCED TAXATION PRINCIPLE The practice of the municipality has been to set tax rates in order to maintain tax stability. This is consistent with many municipalities across the province and is accomplished by maintaining the proportionate relationship provided between the property classes, while taking into account for new construction values, deletions from the tax roll and changes in property classes, and assessment changes that are considered to be significant. This practice allows taxpayers in the municipality to be confident that in any year, their property tax bill will increase proportionately to the increase in tax revenue required year over year, taking into account assessment increases of their property to the assessment class average. This is particularly important in a rural agricultural municipality with a significant proportion of ALR farmland that is both assessed and taxed at proportionally low levels of taxation. For 2016 the municipality is fortunate to have reasonable levels of new construction to assist in moving forward. Approximately 2.6 % non-market growth in assessment is expected and this will be confirmed once the BC Assessment Authority has completed its Assessment approval process in April. This revenue means that the planned 5.11% property taxation increase identified in last year s Five Year Financial Plan has been revised down to the proposed 2.90%. Note that a 1% property tax increase in municipal taxes generates approximately $145,000 annually. 9. MAINTAIN ASSETS IN AN APPROPRIATE STATE OF REPAIR Maintaining core infrastructure and amenities in an appropriate state of repair is critical to the long-term financial health and resilience of the community, and helps ensure asset management obligations are not deferred and infrastructure deficits do not accumulate to unacceptable levels. An Infrastructure Report Card will be introduced in the fall of 2016 to enable the annual assessment and reporting of infrastructure condition. 10. OPTIMIZE CAPITAL INVESTMENTS Before adding new facilities, the municipality will consider repurposing and right-sizing existing facilities, and continue to advance the principles of colocation and functional integration of services to enhance operational efficiency and customer service. All new facilities will be designed with flexible, adaptable, and expandable spaces to accommodate changing demographics and future growth. 12

16 Financial Planning Issues Considered: Preparation of the Financial Plan has taken into account the following financial planning issues; 1. ECONOMIC IMPACTS: Additional to these cost pressures are inflationary pressures. The inflationary pressures faced by local government are much different than the Consumer Price Index that reviews a basket of goods for a household (including things like: food; shelter; household operations and furnishings; clothing and footwear; transportation; health and personal care; recreation and education; and alcohol and tobacco products). 2. DEBT SERVICING: Current debt servicing levels are modest. Interest rates are historically low and the strategic use of moderate levels of debt can assist in maintaining generational equity and move larger projects forward that otherwise could not be afforded on a pay as you go basis. Recently debt was authorized to fund construction of Fire Station 1. That new debt servicing cost of $447,000 per year is factored into this five year plan and is a competing pressure for scarce financial resources. Council has also asked that a plan to provide for early debt retirement of Fire Station 1 debt in ten years time be developed. Achieving the ability to pay out this $6 million obligation in 2026 has been included in this five year plan proposal. In short, an additional $400,000 per year in funding is needed to accumulate reserves needed to pay out the debt at that time. It is likely that some of this may be achieved through the allocation of surplus funds each year, which will cause pressure on the allocation of funding for projects and initiatives normally funded from the same source. 3. NEWLY MANDATED OR LEGISLATED OBLIGATIONS: An example of this is the recently mandated Provincial Firefighters Standards Playbook which requires the Fire Department to meet minimum standards of training and response capability. The District may be subject to significant policing cost pressures if the proposed integration of Police Dispatch services occurs in 2017/2018. Central Saanich has substantially benefited from a favourable dispatch contract with the RCMP which is unlikely to continue under an integrated model. 4. SUSTAINABLE INFRASTRUCTURE INVESTMENT: A significant infrastructure deficit continues to place pressure on the financial resources of the community. In addition to these cost pressures, the municipality faces a growing facilities repair and maintenance challenge. Working towards gradually achieving sustainable infrastructure replacement levels is a challenge given that contributions to reserves have remained flat in previous years; that is, the current contributions to reserves do not contribute sufficiently to the sustainable replacement of infrastructure that the District already owns. 13

17 Completion of a long term financial planning approach, in conjunction with using the recently approved reserves policy to plan a gradual increase in capital program spending over a number of years is necessary. Deferring contributions to this deficit will simply increase the gap and transfer this significant financial risk to the next generation. The positive to this is the municipality has relatively young infrastructure, thus there is an opportunity to apply fiscal discipline and gradually increase capital spending over say a ten or fifteen-year period to reach sustainable levels. This will be a key deliverable of the Long Term Financial Planning Process later in the year. 5. WAGE AND BENEFIT COSTS: Municipal employees will see a 2% wage increase over this budget cycle; police and fire contract negotiations will influence public safety costs over the next five years. Accompanying employee benefit costs are also projected to increase accordingly based on information from the Federal Government and benefit providers. Contingency estimates have been included for contracts currently under renegotiation. 6. NEW SERVICE LEVEL IMPROVEMENTS: Increasing demand for improved communication and public engagement continue to require the organization to focus on developing those new skill sets, invest in communications and engagement technology and allocate the capacity to effectively connect and communicate with an increasingly high level of community desire for information and involvement. 7. CAPACITY: In a small organization workforce planning is especially important to ensure that the organization is using its human resource capacity to effectively provide the services expected by the community. This is a continuous process used to ensure that both appropriate levels of work life balance are maintained by the workforce and high levels of productivity are achieved. 8. USER FEES AND UTILITY CHARGES: User fees and charges form a significant portion of planned revenue. Many specific municipal services such as water, sewer and development services can be measured and charged for on a user pay basis. This approach attempts to fairly apportion the value of municipal service to those who make use of it. User fees accounted for 26 % in the 2015 municipal budget. Within the strategic priorities of council, staff will be undertaking a review of fees and charges later in 2016 and plan to build in a regular fee review in the fall of each year to help keep fees current and inform the budget process cycle. 14

18 15

19 Budget Process 1. PROCESS AND TIMELINES June - Establish financial framework (This is based on guiding principles for financial sustainability and targets for financial health that guide the allocation of funds.) July to October - Develop Budget Outlook Report (This provides Council with the context and factors that will influence the fiscal capacity of the District. October - Q3 Financial results Presented December - Council Reviews the Budget Outlook November to January - Engagement with the public (This helps inform staff and Council on how the public would like resources allocated.) January - Previous Year Financial Results Presented December to February - Develop Proposed Budget Report March - Utility Budgets Approved. Rates Set. February to April - Council approves capital and operating budgets (This includes the consolidated proposed capital and operating budgets accompanied by service plan metrics for the coming year.) May - Official Budget Adoption and Tax Rates Approved June - Annual Financial and Progress Reports Presented 2. PROVIDING RELEVANT BUDGET INFORMATION Align performance metrics to strategic goals Align operating and capital budget information with strategic and annual reports Budget for all funds and entities Align budget and financial statements in an understandable way Tailor user-friendly information to the needs of each audience 3. STREAMLINING THE BUDGET PROCESS Minimize budget versions and reviews Integrate operating and capital budget processes Integrate the budget process with the other corporate planning and performance management processes 4. ENHANCING PUBLIC CONSULTATION Providing easy access to relevant information with a variety of opportunities to be involved in the process is very important. Provide budget backgrounders and financial plan information in advance on the municipal website each year. Consultation informs strategic goals which then inform the budget 16

20 PART III FINANCIAL PLAN SUMMARIES Consolidated Budget The Community Charter requires that local governments in British Columbia approve a Five Year Financial Plan (in bylaw format) and Property Taxation Bylaw on or before May 15 of each year. Each year the District of Central Saanich updates its Five Year Financial Plan. This includes Operating budgets, Water and Sewer Utilities and Capital Programs. Each year the municipality is faced with the challenge of balancing the budget as mandated by the Community Charter legislation. While a municipality can incur a debt to pay large capital projects it cannot borrow or mortgage to fund day to day operations the same way that other levels of government can. This is a key difference as it means that the municipality must rely on revenue sources to cover off all expenses for the year. Water and Sewer Utilities must also operate on a balanced budget basis as well. The proposed Financial Plan continues to focus on infrastructure replacement. This requires striking a balance between the need to continue increasing capital spending, maintaining service levels and keeping operating costs in check. Sound fiscal choices must be made that reflect community priorities and the ability to pay in a moderate economic climate. The Central Saanich Consolidated Financial Plan for 2016 balances $25,367,053 in revenues and with $25,371,0901 in expenditures from all funds. General Fund: After the new growth (non-market change) is taken into account, the 2016 budget is based on a combined Municipal, Debt, Police and Library property tax increase of $52 or 2.90% to the average family home as follows: $16.50 or 0.92% for operations, to maintain current service levels and improve capacity, $21.00 or 1.17% for increased debt servicing $13.10 or 0.73% for increased Policing $ 1.44 or 0.08% for Library 17

21 General Capital Program The next five years of the General Capital Program are expected to be focused on the construction of significant drainage works at Maber Flats and Martindale, reinvestment in major vehicles and equipment, and road improvements in accordance with the Pavement Management Plan, and continuation of major safety related upgrades to the Municipal Hall / Police Station. Most of the major capital works are funded from a combination of reserves and transfers from senior levels of government such as the Federal Gas Tax Capital Spending 1,786,125 3,162,900 3,130,400 2,154,200 2,963,700 Water Utility Fund: The 2016 Water Utility Budget is based on a water rate of $1.513 per cubic metre and a fixed charge of $ For an average single family this would be a combined total of $ or an increase of $16.48 (3.32%) over 2015 based on average consumption levels. The next five years of the Water Capital Program is focused in the Brentwood service area. Fire Protection supply improvements are planned in the Moodyville, Brentview Drive and Oldfield Road areas at an estimated cost of $3.95 million. The Capital Program plans to build the costliest components of this work with $1,067,000 assistance from senior levels of government with the balance from $533,000 in reserve funds. The strategy to increase annual funding for both the replacement of infrastructure and capacity improvements will reduce reliance on reserves and help continue our focus on the pay as you go approach, supplemented with long term borrowing if necessary. Sewer Utility Fund: The 2016 Sewer Utility Budget is based on a sewer rate of $1.217 per cubic meter. This is an increase of 5% and for an average single family this would be $ or an increase of $14.27 (5.00%) over The next five years of the Sewer Capital Program includes a new Brentwood lift station and force main, gravity sewers along Sluggett from Hagan Station to the new Brentwood Station, Upsizing of sewers along Brentwood Drive and a new Stelly s Pump Station. For an estimated cost of $5.3 million. The Capital Program plans to build the costliest components of this work with $2,687,000 assistance from senior levels of government with the balance from $1,343,000 in reserve funds. The use of this level of current reserve funds is not sustainable in the long run and a strategy to increase annual funding for both the replacement of infrastructure and capacity improvements is needed, supplemented with long term borrowing if necessary. For the first five years a significant portion of annual Federal Gas Tax funding will also be used to supplement reserve so they are not depleted. 18

22 Consolidated Summary Reserves Summary: Reserves are expected to increase over the term of this plan from $11.4 million to $15 million. This is primarily due to increased contributions toward early debt retirement reserve for Fire Station 1 and increased Federal Gas Tax contributions. Other reserve contributions are maintained and expected to be gradually increased as resources allow. Debt Summary: Overall debt levels will drop over the five year term of this plan from $11.3 million to $8.4 million. The last payment on Tennis Court short term borrowing is in 2016 and the Senanus Water Line debt will be paid off in Budget room created by completion of debt payments is expected to continue to be transferred to early debt retirement reserve for Fire Station 1 for the balance of the plan. Taxation: An average single family home in the municipality could be expected to pay a total of $82 or 3.18% more in combined taxes and utility charges in 2016: Increase Municipal Taxes $1,090 $1, % Police Taxes % Debt % Library Taxes % Water Utility Charge % Sewer Utility Charge % Total $2,576 $2,658 The 2016 Financial Plan provides for the continuation of services expected by the community. In addition, funding is provided for key projects and initiatives to move strategic priorities of Council forward such as membership in the South Vancouver Island Economic Alliance, mobile webcasting of Public Meetings, moving forward on Agriculture Plan Action Items and Residential Densification Study. Flexible capacity is added in planning, fire, police and administration to ensure that the organization can meet service expectations while an Organizational Capacity Review is under way. An early debt reserve contribution strategy is included that will help achieve Councils goal of eliminating Fire Station 1 debt in ten years rather than twenty-five. Lastly, a modest start is made on moving toward sustainable infrastructure replacement funding levels, subject to completion of the Long Term Financial Planning work in the fall of

23 Within the operating cost increase, funding has been proposed in Administration to continue provision of administrative assistance identified in 2015, for Human Resources consulting assistance and production of the Council newsletter; in Police to return Administrative Support to 2013 levels and a Community Policing Officer; in Fire to maintain adequate firefighting coverage and adjust to the new Provincial Fire Commissioners Playbook standards and in Planning to temporarily provide capacity to maintain key service levels to the public while our organizational capacity review continues. New debt is funded, a strategy to increase reserve contributions for early debt retirement is included and capital reserve fund transfers are increased. Absorbing most of this increase within a competitive tax environment has taken a focused effort by all areas of the municipal organization. Similar approaches have been employed to produce the Water and Sewer Utility Financial Plans. Costs to replace infrastructure are the predominant factor in developing the Utility budgets along with cost of CRD bulk water and cost of CRD sanitary sewer treatment. 20

24 PART IV SERVICE PLANS Administration The role of Administration is to assist in carrying out Council s key objectives, direct business operations and enable an open, inclusive and participatory municipal government. The department facilitates the delivery of services to the public, supports the business operation of Council and Committees as well as providing counsel, support, strategic planning and other resources to departments and the public. The Chief Administrative Officer oversees the overall conduct of the municipality in pursuing the District s strategic goals; reviews departmental programs, budgets and policy initiatives; makes recommendations to Council, ensures Council s directives are carried out, manages significant corporate initiatives, establishes standards and priorities for civic administration, motivates and monitors performance to ensure standards are met, priorities are pursued and high-quality services are consistently delivered. Corporate management Council Support Communications Legislative Services Council and Committee agendas and minutes; Elections and Public Assent processes. Corporate Records Management. Freedom of Information and Protection of Privacy Key Services Delivered - Service Metrics: Service metrics will begin to be introduced in the 2016 budget year and gradually incorporated into the annual management and reporting cycle. This is a work in progress and will continue to evolve over the next three years Accomplishments New Council Procedure Bylaw Implement ICompass Meeting Management Software Recruitment and selection of a new Director of Financial Services Corporate wellness program session for employees Marketing and sale of two residential lots Collective bargaining with the firefighter union Maber Flats conditional land purchase agreement 2016 Budget Challenges Provision of continuous funding for legal and litigation services Capacity to provide committee support services at level desired Capacity to provide communication support at desired levels. 21

25 Plans for 2016 Organization Capacity Review Keating Corridor Analysis Corporate Records Management - Centralized Contract Management System Founding Membership in SVIEA Updated Performance Appraisal system Improved committee support service Mobile meeting webcast system Social Media presence introduced Looking Ahead to Organization Service Review continues Communication support service improved Refined annual reporting introduced Improved Insurance management (Claims management and risk assessment) system Records Management System Review/Implementation Freedom of Information and Protection of Privacy Program Council Policies Review Budget The 2016 budget proposal is an increase of 12.5% or $128,000. This is made up of : an operating cost increase including Council remuneration and employee wage and benefits of $19,000 or 1.8% The addition of a committee clerk position ($77,000) to ensure service levels are provided as expected, this is partially offset by the elimination of relief wage budget ($11,500) for a net increase of $65,000 or 6.4%; the addition of a new membership in South Vancouver Island Economic Alliance of $15,000 or 1.4% Increase in newsletter and HR support contracts of $27,000 or 2.6% A new Volunteer Appreciation Event of $3,000 or 0.3% 22

26 23

27 ADMINISTRATION Projects and Initiatives Operating For 2016 the Keating Corridor Analysis ($100,000) together with the Organizational Capacity review ($52,000) will continue as priorities with introduction of corporate contract management ($10,000) continuation of the records management system update ($10,000) and a Parliamentary procedures training event (1,800). For the balance of the five year plan small records management update project budgets have been place marked. These projects are funded from surplus and reserves. Capital Program There are no capital programs in this area. 24

28 Finance The Finance Department provides financial support services and is responsible for the overall financial management of the municipality, payroll and benefits support and the purchase of all goods and services. A full range of accounting and payroll services are provided including: accounting audit and budgeting of over $25 million in annual expenses and revenues; cash management of up to $35 million in investments on a daily basis to maximize returns; accounts payable processing of over 6,000 invoices and 3,600 cheque and electronic fund transfer payments; payroll coordination of four different payroll groups paid on a biweekly basis and the maintenance of benefit programs for approximately 94 full time and 65 seasonal staff. The daily billing and collection of all revenues including property taxes, utility bills, dog licences, business licences and a variety of other fees and charges. Over 13,800 utility bills, 7,000 tax notices, 700 Dog licences and 1,400 business licences are produced annually. A pre-approved installment tax and utility payment system is also managed. A range of purchasing support services is provided as well as the provision of printing and mail services. The Department also manages the provision of fiscal services including debt servicing costs, interest charges, transfers to reserves and contingency. As of December 2015, outstanding debt in the general operating fund is $11.3 million. Much of this debt was recently authorized to enable construction of Fire Station 1. No additional debt issues are projected in the financial plan. This remains well below the average municipal debt load for Municipalities in British Columbia. The average family home is projected to pay $123 in 2016 property taxes to support debt servicing costs. Long term financial planning, asset management, equipment replacement planning, insurance support and policy development are just some of the many other services provided. 25

29 Key Services Delivered - Service Metrics: Service metrics will begin to be introduced in the 2016 budget year and gradually incorporated into the annual management and reporting cycle. This is a work in progress and will continue to evolve over the next three years Accomplishments Government Finance Officers Association Financial Reporting Award Maintained financial support services during period of significant staff turnover 2016 Budget Challenges Budgeting for various contingencies such as contractual wage and benefit increases for Fire, Police and Management. Plans for 2016 Develop new Budget Presentation Approach Develop Long Term Financial Plan User Fee and Amenity Review Water and Sewer Utility Rate reviews Implement Contaminated Sites Liability Disclosure Policy Development Cost Charge Update Purchase Policy Review Develop Infrastructure (Asset Management) Report Card Looking Ahead to Continue refinement of Long Term Financial Planning and Asset Management Develop internal capacity to provide broader range of support services Increase Debt Reserve Transfers as existing debt is retired Senanus Water Debt repaid in 2019 Budget The 2016 operating budget is projected to reduce by 2.37% over The cost to restructure the Manager of Finance position has been offset by reductions in other budgets including the reliance on financial consulting resources. Further reductions in consulting will occur in 2017 as the department returns to full staff capacity. The Fiscal Services budget is planned to increase due to new debt charges from the Fire Hall borrowing and transfers to reserves as debt reserve fund contributions are increased to support early retirement. 26

30 FINANCE Operating Projects and Initiatives Review of Development Cost Charges is planned for 2016 at a cost of $20,000 with funding from Development Cost Charge Reserves. Capital Program There are no capital projects identified for this Department. 27

31 Technology The Information Technology Division manages a wide variety of computer and technology services for the Municipality. A geographically dispersed voice and data network system is maintained included specialized support for the Police and Fire Services. Computer workstations, mobile computers, a networked phone system and smart phones are managed and a helpdesk service is provided for staff assistance. Core software products are maintained and upgraded as needed, secure internet access is provided and a Geographic Information System is supported. The Central Saanich Website is also coordinated by the Division. Key Services Delivered - Service Metrics: Service metrics will begin to be introduced in the 2016 budget year and gradually incorporated into the annual management and reporting cycle. This is a work in progress and will continue to evolve over the next three years Accomplishments GIS Internal Web map Project Implementation of the Building Inspection Mobile application Implementation of the Mobile Calls for Service application for staff Microsoft Office Training for District Staff Upgrade of our Virtual Server environment 2016 Budget Challenges Managing impact of exchange rate fluctuations in cost of software support and licensing Managing cost of maintaining appropriate network security testing and controls 28

32 Plans for 2016 Replacement of desktop workstations for all staff Five Year Network Security Audit Website refresh GIS system improvements Renewed focus on corporate technology training Looking Ahead to Implementation of security audit recommendations Financial System software upgrades Continuation of GIS system improvements Budget The current budget proposal reflects a status quo approach and includes a contingency for contract negotiations. Overall budget is expected to increase by 2.1% or $12,600 over 2015 budget. 29

33 TECHNOLOGY Projects and Initiatives For 2016 a VADIM (Financial System) Software Update is planned ($17,000), a Website Update ($40,000) a Network Security Audit ($27,500) and introduction of mobile webcasting capability for public meetings ($20,000). Operating For the balance of the five year plan small improvement projects in a variety of core software products have been place marked. Capital Program The capital program is focused primarily on the replacement of all desktop workstations in 2016 and the ongoing replacement of network server hardware on a regular basis. Projects and Initiatives Capital 30

34 Police Service The Central Saanich Police Service, through its governing Municipal Police Board, consists of 23 sworn members supported by four civilian staff, four volunteer reserve constable officers and several volunteers. They provide a professional level of Police Service with a strong commitment to community policing, integrated policing and multi-agency cooperation. The Police Board is chaired by Mayor Ryan Windsor and includes Mr. Thomas Kouk, Mr. Del Elgersma and Mr. Chris Tupper. The Police Service is organized into the following sections; Uniformed Patrol, General Investigative Services, Community Policing, Traffic Safety and Administration. Key Services Delivered - Service Metrics: Service metrics will begin to be introduced in the 2016 budget year and gradually incorporated into the annual management and reporting cycle. This is a work in progress and will continue to evolve over the next three years Accomplishments With the retirement of Chief Paul Hames, the Service s senior executive underwent a transition with the appointment of former Deputy Chief Les Sylven as the new Chief Constable, and former RCMP Chief Superintendent Derren Lench as the new Deputy Chief. CSPS continued to play an active role in the region s crime prevention service by participating in 9 integrated policing units including: Integrated Road Safety Unit (IRSU), Combined Forces Special Enforcement Unit (CFSEU), Vancouver Island Integrated Major Crime Unit (VIIMCU), Greater Victoria Emergency Response Team (GVERT), Regional Domestic Violence Unit (RDVU), Mobile Youth Services Team (MYST), Integrated Mobile Crisis Response Team (IMCRT), Greater Victoria Crowd Management Unit (GVCMU) and the Greater Victoria Police Diversity Advisory Committee (GVPDAC). 31

35 2016 Budget Challenges Wage and benefit costs make up a significant proportion of the Police Service budget. The current Collective Agreement expired December 31st, Upcoming contract negotiations will impact 2016 and future budgets. Returning to the previous staffing model from 2013 included a full time administrative support position and a community policing position, increased some areas of the budget. Retirements decreased other areas as junior members were hired to replace them. The potential integration of dispatch services will also likely significantly increase costs in 2017 and Plans for 2016 Under the direction of the Central Saanich Police Board, the Service will embark on a revised Strategic Plan. A new Central Saanich Crime Reduction Strategy has been implemented including the creation of a new Crime Reduction Unit which will be activated when faced with emerging threats to the public safety of the community. Formalization of a District of Central Saanich Emergency Services health and wellness program including a Critical Incident Stress Management Team, Peer to Peer Counseling and the new province-wide Road to Mental Readiness program. Looking Ahead to Service wide review of staffing and administration to increase effectiveness and efficiencies will be ongoing including the potential to leverage even more relationships within the community and the Greater Victoria area. Retirements of many senior and long serving Central Saanich police officers will add additional pressure as the CSPD competes with other police agencies who face the same demographic and will compete for the same candidates. While no decisions have yet been made, integration of Greater Victoria 911 dispatch services is expected to occur in the near term. Central Saanich has benefited from a very advantageous contract with the RCMP which is not expected to continue. Should this occur the Police Service will need to plan for an expected annual cost increase of $200,000 in 2017/18. Budget The current budget proposal reflects a planned reduction in the secondment program, a return to the previous staffing model from 2013 which includes full time administrative support, a full time community police officer in the Youth and Community Section and a contingency for contract negotiations. While expense budgets have been reduced over 2015, the net budget will in fact increase by 4.38% when reduced secondment revenues are also factored in. This equates to a 0.73% or $13 increase in property taxes to the average family home. 32

36 POLICE SERVICE Projects and Initiatives A strategic planning exercise is scheduled for 2016 at a cost of $5,000 Operating Capital Program The capital program consists of regular vehicle replacement averaging about $80,000 per year over the five years of the financial plan and a small furniture and equipment recurring budget of $21,000 per year. Capital 33

37 Fire The Central Saanich Volunteer Fire Department provides the community with Fire and Life Safety Education, Fire Prevention Programs, Hazardous Material Response, First Responder Medical Aid and Emergency Fire and Rescue Response along with: Structural firefighting for residential, commercial and industrial properties Medical 1st Responder coverage supplementing the BC Ambulance Service Confined Space Rescue Service Hazardous Material Spill Response High Angle Rope Rescue Fire Prevention, Inspection, Education and Fire Code Enforcement Emergency Preparedness Planning and Response Community CPR Training Fire and Life Safety Education and Fire Prevention Programs. These services are also provided under a servicing agreement to both Tsawout and Tsartlip First Nations Lands. The Department consists of the Fire Chief, an Administrative Assistant, Four Career Firefighters and 45 Volunteer Firefighters. The Fire Department is responsible for managing the Central Saanich Emergency Program. The program provides for the continuity in government and preservation of life and property through a coordinated response by elected officials, municipal departments, volunteer services and outside agencies that are able to assist during a major emergency or disaster. The Fire Chief is the Emergency Program Coordinator and responsible for maintaining the Emergency Plan, training and response capability. Key Services Delivered - Service Metrics: Service metrics will begin to be introduced in the 2016 budget year and gradually incorporated into the annual management and reporting cycle. This is a work in progress and will continue to evolve over the next three years. 34

38 2015 Accomplishments Completion of the Royal Roads Capstone Project to review the District Emergency Program Development of Individual firefighter s Training Plan New recruit class has completed the training requirement to NFPA 1001 standards CSVFD responded to 875 emergency calls within the 10 minute response time 96% of the time 2016 Budget Challenges Training requirements to meet the BC Fire Commissioners new Play Book Standards Cost of responding to increased call Volumes for Fire & MVI calls Weekend Response and Duty Officer Coverage to meet the Play Book Standards Long term planning to develop Fire Department succession plan in anticipation of senior member retirements Plans for 2016 Emergency Exercise to test the District Emergency Plan involving all District Staff Fire Service and Burning Bylaw update Long term planning to develop Fire Department succession plan in anticipation of senior member retirements All Hazard Risk Assessment update Looking Ahead to Design and build the fire training area at Station 1 New CREST radio and fire paging system Implementation of succession plan to replace retired staff members Provide a staffed station for daytime response (seven day coverage) Increased Emergency Operation exercises for municipal staff Budget The Operating budget is projected to increase by 3.46% or $48,840 in This is primarily due to the increased cost of providing response coverage, especially during the summer season and the introduction of the Fire Commissioners Play Book Standards. Paid on Call costs have increased as a result of the agreement approved in

39 FIRE Capital Operating Projects and Initiatives No Projects or Initiatives have been identified. Capital Program The capital program is primarily focused on equipment with the next replacement planned for 2018 when Engine 2 will be replaced at a cost of $650,000 and in 2020 when the Chiefs vehicle and Unit 85 are both due for replacement totaling $90,000. All equipment replacement is funded through equipment replacement reserves. 36