Five-Year Financial Plan Public Consultation and Information Package

Transcription

1 Five-Year Financial Plan Public Consultation and Information Package Community Charter s.166: A council must undertake a process of public consultation regarding the proposed financial plan before it is adopted. Contents Background Financial Plan Basics Hearing From You Our 5 Steps to Building the Financial Plan Illustrating our Priorities Identifying the Taxes Required Bringing Forward the Bylaw

2 Background Financial Plan Basics Every year by law, local governments must prepare a Five-year Financial Plan in the form of a bylaw (a legally binding document) which outlines revenues and expenses for the current year and for the 4 successive years. The Financial Plan must be adopted before May 15th of each year, but sound management practice dictates the sooner the better. The Financial Plan contains both operating and capital expenditures, including the proposed sources of funds and their application for capital projects such as road, water and sewer improvements, building construction or land, and equipment purchases. The Town of Golden Financial Plan also represents the Corporate Work Plan, which is directed by the Towns Strategic Plan. In most cases, about half of the money needed each year by municipal governments to provide and maintain services is raised through property taxes. There are also several possible other revenue sources for a municipal government s Financial Plan apart from your taxes which can include but may not be limited to: Federal and Provincial governments grants in lieu of taxes (on lands they own within the municipality) Sale of Services (water/sewer connections, garbage collection, recreation facility fees, and property leases and rentals) Developer Contributions (through Development and Building application Fees, Permits, and Development Cost Charges) Federal and Provincial Government Grants or Transfers (by application and approval for specific capital or operating projects) Earnings from Investments (from monies retained in interest bearing accounts) The Financial Plan revenue requirements needed through taxation are calculated generically based upon the tax rates set the previous year. In this package, you will find examples of projected tax amounts on residential (Class 1) and business (Class 6) properties based upon a 3.4% general tax increase to meet the needs of this year s Financial Plan. Sensitive to the recent and recurring economic climate, Town Council has not authorized any property tax increases since However, since it is forbidden for a municipal government to spend more than it raises this zero tax increase approach cannot be sustained for long, as annual inflation reduces municipal buying power, so either revenues must be increased or service levels decreased. Once the Financial Plan is approved, council must then determine the tax rates by class (i.e. business, residential, industrial, etc.) within the municipality in order to meet revenue requirements. Tax rates are determined yearly considering Council policies, recent assessment information, historical allocations between classes, provincially regulated parameters, and current local conditions. The tax rates must be confirmed by bylaw after the Financial Plan has been approved and in any case no later than May 15 th.

3 It is important to remember that the Financial Plan represents the revenues required only by your municipal government for the current year. For Golden residents, this amounts to just over half of the amount on your annual tax statement. The remainder of your tax requisition is broken out amongst other taxation authorities and is shown within this document. Hearing from You 1. Read the Package First reading of the Financial Plan Bylaw was passed by Town Council on January 18 th. This is the first step in bringing the Financial Plan forward for public review, and Council now invites the public to comment on it for a reasonable period of time before it is eventually adopted. Copies of this consultation and information package are available as follows: In HARDCOPY at: Town Hall AND Okanagan Regional Library (810 9 th Avenue South) (819 Park Avenue) ONLINE at: (click on local government) Town of Golden group page 2. Give us Feedback Come to a Council Meeting. Tell us what you think. Meetings are held in Council Chambers at Town Hall and the following meetings will have a spot on the agenda for hearing from the public in person: February 1 st at 7:00pm February 8 th at 1:15pm February 15 th at 7:00pm Write a letter or us. Address your letter to Town Council, Box 350, Golden, BC V0A 1H0. Address s to Council via clerk@golden.ca. All written correspondence must be signed or the author identifiable to be considered by council.

4 Council and Corporate Strategic Priorities: 1. Back to Basics finish projects and bylaws Step One: Choose Strategic Priorities In August 2010 Town Council met with a professional facilitator and, using the Official Community Plan and public desires as their guide, they developed Priorities for categorizing the 2011 Town operations. The result is the first four things listed to the right. The next four items are the Priorities assigned to the many other things the Town does: administration, safety and protection, financial planning, land use management, infrastructure renewal and maintenance, bylaw enforcement, etc. 2. Maintain Golden s Cultural Vibrancy 3. Enhance Recreation for residents and tourists 4. Protect our community assets 5. Statutory Absolute (things we must do, and on a fixed schedule) 6. Statutory Flexible (things we must do, but completion time is not fixed) 7. Existing Projects/Programs 8. Zingers (unplanned, surprise requirements)

5 Project Name Council Collective Weighting Step Two: Identify Strategic Goals Also in August, Council identified those things that they thought to be the Goals that should be achieved by the Town in The things listed to the right are what were identified by Council. The length of the blue bar beside each Goal shows the degree of importance assigned to each item collectively by all council members. Note: The Goals listed here are in addition to the many other things that we must do, plus the projects and programs that already exist. Community Broadband Network Civic Centre Redevelopment Council Remuneration Bylaw Zoning Bylaw Bridge to Bridge Walkway Unsightly Premises Bylaw Old Town Work Yard Revitalization Tax Exemption Downtown Revitalization (capital) RMI Visitor Sign Program Development Procedure Bylaw Emergency Program Water Smart RMI Tourism Surveys DCC Bylaw Development Permits Public Art Program Carbon Emissions - Corporate Curbside Recycling Organizational Review Fire Dept Operational Guidelines District Energy System Installation of Green Gym Sign Bylaw 2011 ICI Meter Program Asset Management Program Housing Campground Servicing Procedure Bylaw Update RMI CPR Bridge Canyon Ridge Carbon Emissions - Community Business Licence Bylaw Airport Leases Renewal

6 Full Collection of Goals (Council plus Corporate) Step Three: Convert Goals to a collection of Prioritized Projects Throughout September and October the managers then took all the Council and Corporate Goals and assigned each of them an appropriate Priority. Each prioritized goal was then developed into a unique, achievable Project. The resources needed to complete each Project were identified in great detail, and then the whole lot was rank-ordered. Assigned a Priority to every Goal Distributed all Prioritized Goals among departments Managers converted Prioritized Goals into Projects Identified Capacity needed for each Project (i.e. people, time, physical assets, funding, etc.)

7 Complete set of Prioritized Projects Step Four: Convert collection of Projects to a Corporate Workplan In November the collection of Projects were compared to the organizations Capacity our abilities and resources needed to actually do all those things. Not surprisingly, the list was longer than our ability to do everything! Council and Staff worked together, made adjustments and the final set of Projects for 2011 became the Corporate Workplan. The price for accomplishing the Workplan yielded the majority of the expenditures in the Town s 2011 Five-Year Financial Plan. Compared set of all Projects to the organizations full Capacity Adapted, deferred or cancelled lower priority Projects so the remainder would not exceed full Capacity Finalized cost plan to fund finalized list of Projects Result was a fully-funded, challenging but achievable Corporate Workplan

8 Finalized Corporate Workplan Step Five: Create Financial Plan based upon the Corporate Workplan In December Council accepted the final version of the Corporate Workplan and received for review a staff recommended financial plan to achieve the Workplan. Working together with staff during January, Council decided the best balance among funding sources and expenditures. They then directed that a Five-Year Financial Plan Bylaw be brought for First Reading and a series of public consultations be undertaken before proceeding to two further public Readings and Final Adoption. Workplan costs equal majority of 2011 expenditures Added other costs to Workplan costs (debt servicing, utilities, communications, vehicles, permissive tax exemptions, salaries & wages, grants-in-aid, etc.) Identified sources of funding to pay for the Workplan (taxation, charges & fees, borrowing, grants, etc.) Funding combined with expenditures equals content of the Five-Year Financial Plan

9 Proportion of Projects shown by Priority Priority 1: Back to Basics - complete bylaws and projects 3% 2% 10% 1% Priority 2: Maintain Golden's Cultural Vibrancy 5% Priority 3: enhance Recreation for residents and tourists 24% Priority 4: Protect our community assets 11% Priority 5: Statutory - Absolute (things we MUST do by a certain time) Priority 6: Statutory - Flexible (things we MUST do, but WHEN is flexible) Priority 7: Existing Projects/Programs that do not fit into Priority 1-4 Priority 8: Zingers - inevitable surprises 44%

10 2011 Council Strategic Priorities Prepared: January 19, 2011 Cncl Priority 1 - Finish Projects/Bylaws Duration Lead Start Finish Budget 12th Street South - Phase hrs C Cochran $1,000, ICI Meter Program 32 hrs C Cochran $30,000 Bridge to Bridge Walkway 42 hrs D Allen ,973,000 Business Licence Bylaw 56 hrs J Wilsgard Bylaw Adjudication Development 80 hrs J Wilsgard Bylaw Updates - Operations 58 hrs C Cochran Canyon Ridge 40 hrs D Allen Carbon Emissions - Community 164 hrs D Love $3,000 Carbon Emissions - Corporate 86 hrs D Love $8,000 Communications Plan 127 hrs D Love $15,000 Community Broadband Network Option hrs D Love $18,000 Community Broadband Network Option hrs D Love $120,000 Council Remuneration Bylaw 27 hrs D Allen $9,000 Curbside Recycling 64 hrs D Allen DCC Bylaw 83 hrs D Allen $65,000 Development Procedures Bylaw 37 hrs D Allen District Energy System 72 hrs D Love $8,000 Housing 55 hrs D Allen Old Town Work Yard Development 197 hrs D Allen $10,000 Organizational Review 54 hrs D Love $15,000 Rec Facilities Bylaw 96 hrs L Reinders $3,000 RMI Revitalization Tax Exemption 170 hrs D Love $78,000 Spirit Square Furnishings & Tree Boxes 22 hrs C Cochran $30,000 Subdivision and Development Bylaw Amendment 94 hrs C Cochran Town Hall Renovations 28 hrs C Cochran $65,000 Unsightly Premises Bylaw 90 hrs J Wilsgard $6,000 Zoning Bylaw 122 hrs D Allen $15,000 Cncl Priority 2 - Maintain Cultural Vibrancy Duration Lead Start Finish Budget Civic Centre Redevelopment 174 hrs D Allen $2.1 million RMI Public Art Program 20 hrs J Wilsgard Cncl Priority 3 - Residents/Tourist Recreation Duration Lead Start Finish Budget Active Communities 180 hrs L Reinders $5,000 Campground Servicing Redevelopment 106 hrs C Cochran $15,000 Canada Day 77 hrs L Reinders $3,500 Children's New Years Party 80 hrs L Reinders $1,500 Children's Programs 40 hrs L Reinders $6,850 page 1 / 2

11 2011 Council Strategic Priorities Prepared: January 19, 2011 Cncl Priority 3 - Residents/Tourist Recreation Duration Lead Start Finish Budget Family Literacy Event 10 hrs L Reinders Golden Active Transportation 44 hrs L Reinders $7,700 Golden Community Bike Share 183 hrs L Reinders , Golden Stomp Down 135 hrs L Reinders $2,000 Gusher's Spray Park 25 hrs L Reinders $10,000 Installation of Green Gym 68 hrs C Cochran $25,000 Kicking Horse Fall Faire 22 hrs L Reinders $500 Kicking Hr Canyon- Bike Lane 36 hrs D Allen $370,000 Leisure Booking Software 52 hrs L Reinders Leisure Services Marketing 274 hrs L Reinders $6,500 Not for Profit Connection / Registration Night 55 hrs L Reinders $350 Park Development 51 hrs L Reinders $35,000 RMI CPR Bridge 16 hrs J Wilsgard RMI Visitor Sign Program 42 hrs J Wilsgard Summer Camps 60 hrs L Reinders $16,560 Winter Aquatics 10 hrs L Reinders $6,980 Cncl Priority 4 - Protect Community/Assets Duration Lead Start Finish Budget 14th Street Lift Station Replacement 92 hrs C Cochran $290,000 Asset Managment Program 604 hrs D Love Cemetery Marker Levelling Initiative 24 hrs C Cochran $10,000 Emergency Program 249 hrs D Love $95,050 Interface Fire Mitigation 68 hrs D Love $39,200 La Fontaine Road Watermain & Road Upgrades 116 hrs C Cochran $230,000 Reservoir Inspection & Maintenance Program 32 hrs C Cochran $20,000 Sewermain Upgrade Program 64 hrs C Cochran $50,000 Sidewalk Maintenance/Replacement Program 44 hrs C Cochran $50,000 Spray Park Additional Works 8 hrs C Cochran $10,000 Storm Infrastructure Upgrades 28 hrs C Cochran $30,000 United Church Irrigation System 18 hrs C Cochran $5,000 Water Model Update 40 hrs C Cochran $7,000 Water Smart 96 hrs D Love $35,000 Watermain Upgrade Program 64 hrs C Cochran $50,000 Existing Project/Programme Outside Priorities Duration Lead Start Finish Budget Boundary Expansion Application 70 hrs D Allen Olympic Torch Legacy Fund 18 hrs D Love $19,000 Work Wellness 151 hrs L Reinders page 2 / 2

12 Example 2011 Tax Burden: Class 1 Residence Valued at $350,000 Total Property Tax Payable = $2,702 Town of Golden = 56.8% Hospital - CSRD = 0.3% Hospital - EKRD = 2.9% CSRD Shared Services = 7.1% BC Assessment Authority = 0.9% Municipal Finance Authority = 0.04% School District No. 6 = 28.5% Police Protection = 3.5% $94.00 $ $1.00 $1, $23.00 $ $79.00 $8.00

13 Example 2011 Tax Burden: Class 6 Business Valued at $500,000 (Total Property Tax Payable = $10,848) Town of Golden = 55.6% Hospital - CSRD = 0.25% Hospital - EKRD = 2.6% CSRD Shared Services = 6.2% BC Assessment Authority = 0.93% Municipal Finance Authority = 0.05% School District No. 6 = 31.34% Police Protection = 3.03% $ $3, $6, $4.00 $ $ $ $28.00

14 Recent Historical Municipal Property Tax Increases The Proposed 2011 Increase Totals 3.4% Overall Table 1. Residential Tax Increases by Value of Land and Improvements Value of Class 1 (Residential) 2009 MUNICIPAL TAX 2010 MUNICIPAL TAX 2010 Increase (nearly nil %) 2011 MUNICIPAL TAX 2011 Increase (4.2%) $200,000 $877 $878 $1 $915 $37 $250,000 $1,096 $1,098 $2 $1,144 $46 $300,000 $1,315 $1,317 $2 $1,373 $56 $350,000 $1,535 $1,537 $2 $1,601 $64 $400,000 $1,754 $1,756 $2 $1,830 $74 $500,000 $2,192 $2,195 $3 $2,288 $93 Table 2. Business Tax Increases by Value of Land and Improvements Value of Class 6 (Business) 2009 MUNICIPAL TAX 2010 MUNICIPAL TAX 2010 Increase (nearly nil %) 2011 MUNICIPAL TAX 2011 Increase (3.1%) $500,000 $6,029 $6,037 $8 $6,222 $185 $1,000,000 $12,058 $12,073 $16 $12,445 $372

15 STATEMENT RESPECTING REASONS FOR ADOPTING A BYLAW Town of Golden Five-Year Financial Plan Bylaw 1284, 2011 Part 6, Division 1 of the Community Charter requires that a municipality must have a five-year financial plan that is adopted annually by bylaw prior to the annual property tax bylaw. The financial plan must set out the proposed expenditures by the municipality, the proposed funding sources and the proposed transfers to or between funds. Additionally, the financial plan must set out objectives and policies for the planning period in relation to each funding source, the distribution of property value taxes among the property classes and the use of permissive tax exemptions. This bylaw, therefore, responds to and meets the requirements of the legislation.

16 TOWN OF GOLDEN BYLAW NUMBER 1284, 2011 Being a bylaw to adopt a Five-Year Financial Plan for the years The Council of the Town of Golden, in open meeting assembled, HEREBY ENACTS AS FOLLOWS: 1. CITATION This bylaw may be cited for all purposes as the Town of Golden Five-Year Financial Plan Bylaw No. 1284, FINANCIAL PLAN The Town of Golden Five-Year Financial Plan for the period January 1 st, 2011 to and including December 31 st, 2015 is set out as Schedule A attached hereto and forming a part of this Bylaw. 3. FINANCIAL OBJECTIVES AND POLICIES The Town of Golden Financial Objectives and Policies for the period January 1 st 2011 to and including December 31 st, 2015 are set out as Schedule B attached hereto and forming a part of this Bylaw. 4. SEVERABILITY The provisions of this Bylaw are severable and the invalidity of any part of this Bylaw shall not affect the validity of the remainder of this Bylaw. 5. REPEAL Bylaw 1269, 2010 Town of Golden Five-Year Financial Plan, and all amendments thereto, is hereby repealed in its entirety. 6. TERMINATION This bylaw shall have no further force or effect after December 31 st, READ A FIRST TIME THIS DAY OF, READ A SECOND TIME THIS DAY OF, READ A THIRD TIME THIS DAY OF, ADOPTED THIS DAY OF, 2011, BY A DECISION OF ALL MEMBERS OF TOWN COUNCIL PRESENT AND ELIGIBLE TO VOTE MAYOR CORPORATE OFFICER

17 TOWN OF GOLDEN - FINANCIAL PLAN BYLAW NO. 1284, 2011 SCHEDULE 'A' FOR THE 5 YEAR PERIOD 2011 TO % BUDGET BUDGET BUDGET BUDGET BUDGET OF TOTAL REVENUES Property Taxes Municipal property tax (4,023,000) (4,224,150) (4,308,633) (4,394,806) (4,482,702) 31.52% Grants in lieu and 1% utility tax (125,830) (132,122) (134,764) (137,459) (140,208) 0.99% (4,148,830) (4,356,272) (4,443,397) (4,532,265) (4,622,910) 32.50% Other government requisitions (2,985,575) (3,134,854) (3,197,551) (3,261,502) (3,326,732) 23.39% Less: other government tax transfers 2,985,325 3,134,591 3,197,283 3,261,229 3,326, % Net property taxes (4,149,080) (4,356,534) (4,443,665) (4,532,538) (4,623,189) 32.50% Water and Sewer User Fees (1,353,000) (1,516,000) (1,613,650) (1,619,860) (1,651,847) 10.60% Sales of Services (637,145) (669,597) (683,009) (696,669) (709,583) 4.99% Arena Revenues (137,200) (135,000) (135,000) (135,000) (135,000) 1.07% Other Rev.Own Sources (Licences,Penalty) (223,500) (234,675) (239,369) (244,156) (249,039) 1.75% Unconditional Government Grants (2,474,263) (2,430,000) (965,000) (705,800) (749,796) 19.38% Other Government Transfers and Grants (945,250) (680,150) (674,093) (689,155) (705,838) 7.40% Other Contributions (30,000) (631,500) (32,130) (32,773) (33,428) 0.24% Proceeds from Borrowing 0 (3,827,500) (1,700,000) % Transfers from own funds Reserve funds (1,112,490) (627,200) (666,694) (311,568) (211,923) 8.72% From other accounts or funds (1,343,400) (542,000) (552,000) (562,200) (574,104) 10.52% Development cost charges % Accumulated surplus' (367,815) (1,306,395) (239,822) (283,599) (337,271) 2.82% TOTAL REVENUES (12,773,143) (16,956,551) (11,944,432) (9,813,318) (9,981,018) % EXPENDITURES Municipal Operations General government services 1,396,442 1,476,264 1,495,589 1,525,501 1,571, % Protective services 456, , , , , % Transportation services 1,387,410 1,456,781 1,485,916 1,515,634 1,545, % Environmental health services 294, , , , , % Economic development services 436, , , , , % Planning & Development services 510, , , , , % Recreation and cultural services 568, , , , , % Shared Emergency services 95, , , , , % Airport services 84,600 55,000 56,000 57,000 60, % Cemetery services 41,500 50,000 50,000 50,000 50, % Broadband services 76,000 28,000 28,000 28,000 28,000 Waterworks services 529, , , , , % Sewerage services 535, , , , , % Total operations 6,411,833 7,034,178 6,911,131 7,077,611 7,272, % Arena expenditures 384, , , , , % Fiscal Services 6,000 6,300 6,426 6,555 6, % Debt & interest 464, , , , , % Capital expenditures 4,982,500 8,380,000 3,559,000 1,230,000 1,170, % Transfers to Own Funds Reserve funds 20,000 21,000 21,420 21,848 22, % To other accounts or funds 503, , , , , % Accumulated surplus' % TOTAL EXPENDITURES 12,773,143 16,956,551 11,944,432 9,813,318 9,981, %

18 Schedule B Town of Golden Financial Objectives and Policies Community Charter Requirement #1: Funding Sources Table 1 shows the proportion of total revenue to be raised from each funding source in % of Total Revenue Source Revenue Dollar Value Property Taxes 41.7% $4,149,080 User Fees and Charges 21.4% $2,127,345 Other Sources 2.5% $253,500 Proceeds from Borrowing 0.0% $0.0 Government Grants 34.4% $3,419,513 Total 100% $9,949,438 Table 1. Community Charter Requirement #2: Distribution among Property Classes Table 2 shows the distribution of property taxes among the property classes in Property Class % of Total Property Taxation Dollar Value Class 1 Residential 46.49% $1,870,466 Class 2 Utilities 4.62% $185,714 Class 4 Major Industry 5.37% $215,863 Class 5 Light Industry 0.82% $32,980 Class 6 Business 42.58% $1,713,061 Class 8 Recreational/nonprofit 0.12 $4,916 Total 100% $4,023,000 Table 2. Community Charter Requirement #3: Use of Permissive Tax Exemptions The Town will continue the practice of adopting an annual Permissive Tax Exemption Bylaw with total annual support not to exceed $100,000 from General Revenue, and will implement in 2011 a five-year Revitalization Tax Exemption Program to improve the physical appearance of businesses in Historical Downtown and Downtown South using revenues restricted to the Resort Municipalities Initiative Program.