City of Port Coquitlam Financial Plan

Transcription

1 Financial Plan

2 Table of Contents Introduction City Profile 1 Reader s Guide 6 Financial Plan Overview 2015 Message 8 Plan Background 9 Future Outlook 10 Expenditure Levels 11 Tax Impact 12 Restricted Reserves 14 Consolidated Financial Plan 15 Revenues 2014 Revenues 18 Property Tax 18 User Fees 20 Interest Income 21 Grants in Lieu of Taxes 22 Enhancements, Savings and Service Level Changes Overview 24 Enhancements 25 Savings and Efficiencies 26 Department Business Plans Introduc on 28 Office of the Chief Administra ve Officer 31 Corporate Support 37 Development Services 54 Engineering & Opera ons 70 Finance 95 Fire & Emergency Services 100 Human Resources 109 Parks & Recrea on 114 Policing Capital Program Introduc on 136 Financial Summaries 137 Infrastructure Categories 140 Funding 142 Opera ng Impacts of the Capital Program 143 Project Details by Category 144 Appendices Appendix A Business Planning and Guidelines 188 Appendix B Financial Plan Development and Timetable 189 Appendix C Financial Management Policy 190 Appendix D Corporate Strategic Plan 196 Appendix E Organiza on and Commi ee Structure 199 Appendix F Organiza on Chart and Staffing Levels 200 Appendix G Municipal Funds 201 Appendix H General Sta s cs 202 Appendix I Glossary 203

3 City Profile Port Coquitlam is a community of 58,000 with a strategic loca on in Metro Vancouver, a healthy base of businesses, new commercial and industrial areas, 271 hectares of parkland including the 25-km Traboulay PoCo Trail, wellestablished neighbourhoods, and a strong sense of community spirit known as PoCo Pride. It also has a growing reputa on for progressive governance and for its innova ve approaches to managing waste, sustainable development and using technology to engage the community. Since it was incorporated on March 7, 1913, Port Coquitlam has experienced significant growth and has strived to remain relevant to the changing mes. At the same me, the City has retained its small-town charm, its authen c historic downtown core, and a tradi on of community involvement. The City strives to balance social, environmental and economic values while fulfilling the priori es set by our ci zens. Our annual budget public consulta on is an example of how we engage the community in our City s governance. A Livable City It came as li le surprise to Port Coquitlam residents when their community earned na onal recogni on in 2013 for being a livable city. Family-friendly Port Coquitlam was named B.C. s third most livable city, and 33rd out of 200 in Canada, in Moneysense magazine s annual Best Places to Live ranking. Those who call Port Coquitlam home are well aware of its special quali es, including affordability, an accessible loca on, parks and trails, family-oriented services, a quaint historic downtown core, and a strong sense of community spirit. These are just some of the reasons 63% of the City s residents have lived in Port Coquitlam for more than five years, and why families and investors from elsewhere have started taking a closer look at this hidden gem. Con nued on next page Financial Plan 1

4 City Profile Con nued from previous page Affordability Housing and land in Port Coquitlam are among the most affordable in the region north of the Fraser River. At the same me, property owners benefit from some of the lowest tax rates in Metro Vancouver. Loca on Port Coquitlam s central loca on means Vancouver is only 35 minutes away by car or commuter rail. Access is be er than ever, thanks to regional projects such as the Port Mann, Pi River and Golden Ears bridges, and the upcoming Evergreen Line extension. These complement local improvements such the Coast Meridian Overpass and upgraded Broadway Street. It s also easy to get around on bike or foot using the extensive network of trails and bike lanes. Healthy and ac ve Port Coquitlam promotes a healthy and ac ve lifestyle with many indoor and outdoor opportuni es. Op ons include recrea on centres with pools and arenas, sports fields, outdoor pools, the 25-km Traboulay PoCo Trail and free trailside gym sta ons. Thriving The heart of the community is the historic and authen c downtown, which is bustling these days with new business and residen al growth, a vibrant cultural scene and a Farmers Market. We re also seeing significant growth in the up-and-coming Dominion Triangle area bringing an exci ng mix of retail, residen al, ins tu onal and light industrial developments. Community Spirit Port Coquitlam s old-fashioned community spirit is unique in an urban se ng. Residents love to celebrate their PoCo Pride at numerous fes vals and civic events throughout the year, and volunteer their me to make their community be er. A large propor on of residents took part in the City s 100th year birthday celebra ons throughout Port Coquitlam is one of the few B.C. communi es that has retained its volunteer Spirit Commi ee following the 2010 Olympics. 2

5 City Profile City Services City Council represents the ci zens of Port Coquitlam, provides leadership, establishes City policies and priori es, and reviews and establishes budget levels. Repor ng directly to Council is the Chief Administra ve Officer (CAO). Seven City departments report to the CAO: Corporate Support Development Services Engineering & Opera ons Finance Fire & Emergency Services Human Resources Parks & Recrea on Policing Services are provided by the Coquitlam RCMP. The is strategically located in the heart of Metro Vancouver, B.C Financial Plan 3

6 City Profile Community Priorities The City had a high level of public par cipa on in its 2015 budget consulta on process. In February, budget details were mailed to every home and provided online to encourage public feedback on the dra budget. In total, 867 people filled out surveys or provided other forms of feedback. Residents were asked whether they feel they are ge ng good value for their dollar for City services, as well as targeted ques ons related to budget decisions for Strong themes emerged from the results: Support for a new Community Recrea on Complex Desire for improved recrea on and cultural services Desire for road and traffic improvements Support for comprehensive budget informa on provided by the City High level of sa sfac on with City services, in par cular fire, parks and trails, policing and waste services Based on the results, 77% of residents up 1% from 2014 believe they receive good value for their tax dollars. Selected Results from 2015 Survey Ques on: Do you feel that you get good value for your tax dollars in Port Coquitlam? Ques on: Are you sa sfied with the budget informa on available to you this year? 4

7 City Profile Ques on: If you had to pick three infrastructure projects for the City, what would they be? Pedestrian, 15% Transit, 2% Visual, 3% Ligh ng, 3% Parks, 12% Recrea on, 14% Paving Intersec ons Traffic calming Widen roads Fremont route Rail crossings Bike lanes Wave (coordinated) signals Downtown Lines Lanes Coast Meridian Overpass Bridges Breakdown: Roads & Traffic Breakdown: Recrea on Projects PoCo Rec Complex Ice Library Swimming Hyde Creek Outdoor pools Other Seniors Youth Financial Plan 5

8 Reader s Guide The Reader s Guide is intended to provide the reader with a brief descrip on of the contents of each major sec on of the document. The Financial Plan provides detailed funding requirements over the next five years and also serves as: A Policy Document, that outlines the financial policies (Appendix C) that guides the development of the plan; An Opera ons Guide, that helps staff manage dayto-day opera ons by providing financial and policy informa on and by iden fying financial and staffing resources available to provide services; and A Communica ons Device, that gives all readers a comprehensive look at the services provided by the City and the costs and revenues related to those services. The financial summaries within this document detail the City s total budget for the fiscal year of This includes the addi on of one- me expenses and decision packages endorsed by Council. However, the subsequent years of include only a base. The base budget reflects revenue and expense required to maintain the same levels of service (including infla onary costs) as provided in 2015, as well as any known changes due to growth and/or service level changes approved by Council. Document Organization The document is separated into six major sec ons. Explana ons of each of these sec ons are as follows: 1. Overview This sec on is intended to provide the reader with an understanding of the City s overall financial posi on and highlights cost drivers and issues with the proposed Financial Plan. 2. Revenue This sec on provides an overview of the sources of revenue for the City and policies around how the City acquires the funds needed to pay for the numerous services it provides. 3. Departmental Business Plans This sec on includes Business Plans for each City department and the RCMP Detachment. The Business Plans contain informa on about the department its fiveyear financial plan and related strategies and goals for Financial informa on for major non-department budgets is also listed here. 4. Capital Program This sec on contains a summary of all of the capital expenditures budgeted for the period. Also included are individual project descrip ons. Departments were asked to iden fy funding sources for these projects as well as include the ongoing opera ng costs. 5. Savings and Service Level Changes This sec on contains a summary of all of the opera ng savings and service level changes which were adopted by Council for the 2015 fiscal year in order to balance rising costs with community priori es. Departments were asked to propose efficiencies that could be sustained over me. 6. Appendices This sec on includes a variety of informa on that may be useful to Council or the public in assessing the financial plan proposal and/or understanding the City s financial situa on, policy and prac ces. 6

9 Financial Plan Overview FINANCIAL PLAN 7

10 Financial Plan Overview 2015 Message The Financial Plan is based on the Business Planning and Guidelines, adopted in 2014 by the Finance and Intergovernmental Commi ee, which includes all members of City Council. The guidelines reflect Council s desire for the City to run as efficiently as possible, in order to both meet community needs and address the public s decreasing appe te for higher municipal taxes. Direc on provided by the guidelines included the following: An addi onal 1% tax increase was to be included for long-term infrastructure replacement (see page 14 under Long-term Infrastructure). Department business plans must show how budgets and work plans address Council s priori es (see below). Departments were asked to iden fy poten al budget reduc ons of 1%, 2% and 3% and explain their impacts. The City s Department Heads were to iden fy two key areas or processes to undergo a Con nuous Improvement Assessment in (CIAs scru nize current ac vi es and seek opportuni es for improvement.) decision packages were to include a ra onale to support requests for new programs, projects and staff. All vacant full- me posi ons would be subject to a detailed review by a Corporate Management Team subcommi ee prior to being filled. The complete guidelines can be viewed in Appendix A. Council Priori es Since 2013, Council has directed staff to focus on three priori es that grew from the Corporate Strategic Plan. The Strategic Plan has a large number of direc ons and desired outcomes; targe ng a few priori es at a me enable the City to meet its goals more effec vely. These priori es will change as the needs of the community evolve. The current three priori es are: Develop the organiza on, increase employee engagement and improve customer service, Maximize the life of infrastructure assets (e.g. roads and buildings) and save for their replacement, and Plan for the new Community Recrea on Complex to replace aging recrea on facili es in the downtown area. Other Factors Affec ng the Plan In addi on to Council priori es, a variety of other factors affect each year s plan, both posi vely and nega vely. For 2015, the City is seeing addi onal revenue from development in the community as well as an ini a ve from BC Assessment to capture previously unrecorded construc on. At the same me, expenses have increased due to labour contract obliga ons, and a rise in library and RCMP costs. The City also con nued to dedicate an addi onal 1% of tax revenue for future infrastructure replacement. This is in accordance with the Guidelines. Priori es for the Coming Year In 2015, the City will plan, design and set aside funds for the new Community Recrea on Complex, one of Council s priori es. Council s decisions regarding scope and phasing of this project will have a significant impact on the City s long term financial picture. Determining the short-term and longterm implica ons of Council s decision was a key staff priority for 2014 and con nues into 2015 and beyond. Another priority for 2015 is conduc ng Con nuous Improvement Assessments on City func ons, as directed by the Guidelines. As we move through the CIA process, it is cri cal that staff monitor the financial implica ons of any recommended changes. 8

11 Financial Plan Overview Strategic Plan Port Coquitlam adopted the Vision 2020 Corporate Strategic Plan in The plan outlines the community s vision for the future and will guide the City s policy, opera ons and financial decisions through to Vision 2020 is as follows: Port Coquitlam is a happy, vibrant, safe community of healthy, engaged residents and thriving businesses supported by sustainable resources and services. Sustainability of the City s finances will ensure the services enjoyed by the residents today will be there for future genera ons. Sustainability requires difficult decisions to balance current affordability with long-term pressures. These decisions occur annually during the financial plan prepara on process, budget delibera ons, public consulta on and final approval. Regulatory Requirements In accordance with the laws of Bri sh Columbia through the Community Charter, municipali es must prepare a five-year financial plan each year. These plans must be adopted by municipal Councils before May 15 and they are required to iden fy the proposed expenditures, funding sources, and transfers to or between funds. The Community Charter also directs City Council to engage the public in a consulta on process prior to adop on of the proposed financial plan. For more details on the Financial Planning Process please consult Appendices A, B and C. Best Practices The Government Finance Officers Associa on of the United States and Canada (GFOA) has established the Dis nguished Presenta on Award to encourage governments to prepare budget documents of the highest quality to meet the needs of decision-makers and residents. Each budget document submi ed is evaluated using a comprehensive evalua on checklist and those which are judged proficient receive the award ( The City received the Dis nguished Presenta on Award for the Financial Plan for the 17th year. This award is valid for one year only. The City believes our current budget process con nues to conform to program requirements, and it is being submi ed to GFOA to determine its eligibility for another award. Corporate Financial Goal That the City work towards full annual funding of opera ons, maintenance, growth and asset deple on applying the following measures: Limit addi on of new services or programs for the next five years. Apply only sustainable service and program cuts to reduce annual tax rate increases. Set funds aside for long term financial needs including the infrastructure gap, growth and opportuni es. Pursue revenues to offset funding needs. Apply new revenues to reduce tax rates only if assured, sustainable, stable and incremental. Maintain transparency and accountability to the community by communica ng developments with the strategy at each Commi ee and Council session on the budget. That once the service levels are set, the budget contains the necessary infla onary increases to maintain the remaining services Financial Plan 9

12 Financial Plan Overview Future Outlook The City will con nue to face a number of challenges in the future, the most significant of which is to provide sufficient funding for maintaining and replacing the City s infrastructure and major assets. The infrastructure gap is the difference between the reserves set aside to fund maintenance and replacement and the current replacement cost of the depreciated por on of City assets. City Financial Health The Corporate Strategic Plan s vision for the future is only possible if we leverage our strengths and address our challenges. The City s major financial challenge is the infrastructure gap. This gap is not unique to our City, as many ci es around the world have not set aside sufficient funds for replacement of infrastructure assets as they deplete. Recent news reports have highlighted ci es that have seen failures of their bridges, tunnels, roads, facili es and water and sewer systems. The has adopted a proac ve and financially prudent strategy of funding long-term asset replacement to avoid the much higher costs of repairs, maintenance and replacement should funding be delayed and assets be replaced past the point of op mum renewal. City funds are also required to support today s needs for our mul -faceted municipal services. Pressures from the community highlight the need for upgrades to exis ng facili es and expansion of services for growth. The Corporate Financial Goal sets the City s financial direc on of long-term financial sustainability. The City has begun to set aside funds for long-term needs and our reserves are building. Port Coquitlam has adopted a proac ve and financially prudent strategy of saving for the future replacement of infrastructure assets including roads, buildings and equipment while establishing plans and prac ces to maximize their lifespan.(e.g. preventa ve maintenance). Council created a and Infrastructure subcommi ee to the Finance and Intergovernmental Commi ee in 2014 to review our budge ng process and to develop a more sustainable model for planning and funding infrastructure. The Financial Plan will start to reflect the outcomes of these ac vi es. City funds are also required to provide mul -faceted municipal services to support today s needs, and to plan for upgrades to facili es and expansion of services to accommodate future needs. Debt and Debt Limits The maximum amount of debt that may be held by a municipality is restricted by its ability to repay that debt (both interest and principle). This is represented as a Liability Servicing Limit and is set by the Provincial Government in the Community Charter. The current limit for 2015 is $22.5 million (of which the City is servicing $1.48 million). The Financial Plan includes an annual cost of interest and principal payments of $1,478,300. For 2015, debt payments represented approximately 2.4% of the City s net budget. The City s debt is minimally affected by changes in borrowing interest rates. Therefore any risk to a rising Prime interest rate is low. Outstanding Debt Project Annual Payment (inc. Interest) Expira on Lender $22,788,200 Coast Meridian Overpass (2009) $1,478,300 ($1,032,500 interest) October, 2039 MFA of BC 10

13 Financial Plan Overview 2015 Base Plan Expenditure Levels 2015 Services Provided to the Community The graph shows the City s ongoing expenditures for opera ng which are funded from ongoing revenue sources. Ongoing Expenditures 2015 % of Total Parks & Recrea on $16,448,700 22% Policing 14,010,100 18% Fire and Emergency 9,633,100 13% Water 9,146,300 12% Engineering 7,901,800 10% Sewer 6,507,700 9% Corporate Support 3,847,500 5% Finance 3,394,000 4% Development Services 3,089,400 4% Human Resources 888,200 1% Fiscal Services 837,100 1% Office of the CAO 495,000 1% TOTAL $76,198, % Financial Plan 11

14 Financial Plan Overview Tax Impact Port Coquitlam property owners pay separate property tax and u lity bills. The amounts for both bills are combined in the charts below to show the full impact on a household. Property Taxes The City s residen al property tax rates in 2015 increased by 1.46%. The impact on an average single-family home, townhouse and apartment are shown in the charts below. These calcula ons use the value of a representa ve house in 2014 as defined by the Ministry of Community, Sport and Cultural Development. The proposed property tax rate will be applied equally on a percentage basis to all property classifica ons. See the Enhancements, Savings & Efficiencies sec on for decisions that affected these figures. U lity User Fees Water, sewer and solid waste (garbage/green cart) levies are flat annual user fees, and are the same for each single-family dwelling. Townhouse and apartments have lower water and sewer rates, and do not pay a garbage levy because they are not required to use City collec on services. The levies are approved by Council prior to the approval of the Financial Plan to meet billing deadlines in early There was no increase to the sewer or water levies. The 3.4% garbage levy increase was due to increased service delivery costs and disposal fees. The City s Cost Recovery Policy states that user fees are to be set to recover the full cost of services, unless Council determines a subsidy is in the general public interest. The policy is detailed in Appendix C. Average Single-family Dwelling Assessed at $527, $ Change Property Taxes $1, $2, $29.02 Water Levy Sewer Levy Garbage Levy Total $2, $2, $35.02 Average Townhouse Assessed at $383, $ Change Property Taxes $1, $1, $22.85 Water Levy Sewer Levy Total $2, $2, $22.85 Average Apartment Assessed at $258, $ Change Property Taxes Water Levy Sewer Levy Total $1, $1, $

15 Financial Plan Overview Fund Structure General Fund The General Fund is the primary opera ng fund used to manage a majority of the City s financial resources and obliga ons. Some of the services that are provided from this fund include policing; fire services; recrea on programs and facili es; and solid waste. Water Fund The Water U lity is a user pay u lity that supplies water services to the proper es in the City and is funded from user fees. Sewer Fund This is also a user pay u lity that provides sanitary sewer services to proper es and is funded from user fees. The City s Financial Plan and Financial Statements are consolidated and include the accounts of all funds in the City. Inter-fund transac ons and balances are eliminated from the financial statements but are included as internal recoveries between departments for budge ng purposes. A fund is a fiscal en ty of balanced accounts used by governments to control common financial ac vi es. Financial Position (Reserves and Surplus) The City has Reserve Funds (Statutory Reserves) that are authorized by the Community Charter and/or City bylaw. The purpose of se ng aside reserves is to provide funding for various an cipated future expenditures to ensure sufficient funds are available when required and where possible to avoid the need to incur debt. Statutory Reserves may only be used as authorized by the Community Charter and the related Council Bylaw. City reserves are further detailed on the next page. Surplus funds are the result of past budget surpluses (i.e. where actual revenues have been in excess of actual expenditures) and may be used for any municipal capital or opera ng purpose as authorized by Council. Currently, the City uses its surplus to finance opera ons prior to tax and u lity collec ons and, based on availability, to fund one- me opera ng and capital items. The financial content in this document was prepared based on informa on available at the me of Financial Plan development and supported by management es mates. The Financial Plan is not audited. Certain prior year figures have been re-classified to conform with the presenta on adopted for the current year. These amounts are presented for compara ve purposes. The City prepares its Financial Plan in accordance with Part 6 of Bri sh Columbia s Community Charter. The City uses an accrual basis of accoun ng for its financial repor ng except where this basis differs from provincial legisla on Financial Plan 13

16 Financial Plan Overview Restricted Reserves A breakdown of the various City reserves and a brief descrip on of their uses are contained in the following table: Actual ed ed Balance at 12/31/2014 To (from) Reserve 2015 Balance at 12/31/2015 Uses & Funding Source Equipment $10,168,988 $(1,496,600) $8,672,388 Subsidiary accounts maintained for Public Works, Parks, Fire equipment and Informa on Systems. Funds are used primarily for the purchase of replacement equipment with the excep on of the IS por on, which is available for new equipment and so ware. Roads / Drainage 7,155,970 (947,600) 6,208,370 City por on of all Roads and Drainage projects. Funding source primarily property taxa on, also includes funding from TransLink for Major Road Network maintenance. Land Sale 8,056, ,900 8,955,212 Funding for new capital works that exceed the limits prescribed in the City's Financial Policy for use of capital funding envelopes. Funding source land sales and voluntary internal repayments. Sewer 3,272,443 (512,200) 2,760,243 City por on of all Sewer projects. Funding source u lity fees. Water 346,989 (90,300) 256,689 City por on of all Water projects. Funding source u lity fees. Parking 2,587,153 72,400 2,659,553 Funding collected in the development process to provide for future parking. Public Works Special 2,256,483 40,400 2,296,883 Interest earned on $2 million principal allocated for minor public works projects. Principal not available for use as per establishing bylaw. Opera ng 1,524,608 6,400 1,531,008 Funding for self-insurance; snow and ice removal; arts, heritage & culture; and elec on. Parks & Recrea on 1,278,148 (369,000) 909,148 City por on of all Parks & Recrea on projects. Funding source property taxes and developers (in lieu of parkland). Public Safety Buildings 602,531 (435,600) 166,931 City por on for capital improvements to public safety buildings. Building Maintenance 2,896,320 (254,000) 2,642,320 Major maintenance type projects (such as roof replacement, HVAC systems) on all civic buildings. Solid Waste 150, ,479 For Solid Waste projects. Funding source is property taxes. Special Needs Housing/ Community Ameni es Reserves 390,625 (19,000) 371,625 Funding collected in the development process to provide for social housing needs. Cemetery Expansion 98,327 (100,400) (2,073) Funding collected from cemetery sales to fund future cemetery expansion. Unallocated Capital Reserves Community Recrea on Complex Reserve Long-term Infrastructure Replacement 1,672,003 3,021,200 4,693,203 Funding for as yet undetermined capital projects/programs. This also includes the contribu ons from the Federal Gas Tax program , ,600 Funding for replacement of the exis ng Port Coquitlam Recrea on Complex. Funding source is property taxes. 10,243,634 3,868,200 14,111,834 Funding for replacement of capital assets including, but not limited to, buildings, transporta on infrastructure, water infrastructure, sewer infrastructure. This reserve is expected to help to address the significant infrastructure gap. Total $52,701,013 $4,385,400 $57,086,413 14

17 Financial Plan Overview Consolidated Financial Plan The Financial Plan is summarized below. This chart iden fies all major revenues and expenses by opera ng department Revenues Taxa on $(56,124,500) $(58,445,300) $(61,121,100) $(62,952,100) $(64,773,000) $(66,583,100) Corporate Support (1,157,000) (1,086,300) (1,097,300) (1,108,300) (1,119,600) (1,130,800) Development Services (950,800) (1,100,000) (1,103,200) (1,106,500) (1,109,900) (1,113,300) Engineering (6,239,400) (4,508,800) (4,548,800) (4,589,300) (4,630,000) (4,671,000) Finance (326,500) (1,418,000) (1,440,900) (1,464,100) (1,487,700) (1,511,900) Fire and Emergency (36,500) (21,600) (36,800) (22,100) (22,300) (37,500) Parks & Recrea on (4,441,100) (3,958,500) (3,997,700) (4,037,900) (4,078,600) (4,118,400) Policing (463,700) (680,600) (680,900) (681,200) (681,500) (681,800) Water (10,658,200) (10,983,300) (11,336,300) (12,097,900) (13,120,300) (13,793,800) Sewer (7,497,600) (7,638,900) (8,003,800) (8,445,500) (8,963,600) (9,543,800) Tax Penal es & Interest (325,000) (325,000) (325,000) (325,000) (325,000) (325,000) Interest (760,000) (1,600,000) (1,600,000) (1,600,000) (1,600,000) (1,600,000) Land Sales Provincial Opera ng Grants (45,000) (255,000) (266,000) (266,000) (277,000) (277,000) Misc. Revenues (44,500) (44,500) (44,500) (44,500) (44,500) (44,500) Special Opera ng One- me Special Opera ng Projects CIP Funding - Grants, DCC etc. (1,122,900) (3,806,900) (12,500) (12,500) (12,500) (12,500) SP Funding - Grants, DCC etc Developers Contribu ons (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) Total Revenues $(91,192,700) $(96,872,700) $(96,614,800) $(99,752,900) $(103,245,500) $(106,444,400) Expenditures Office of the CAO $422,500 $462,000 $442,000 $450,700 $459,500 $468,700 Corporate Support 3,674,100 3,847,500 3,907,800 3,982,800 4,132,900 4,137,200 Development Services 2,288,300 3,089,400 3,082,000 3,143,100 3,205,900 3,269,000 Engineering 11,019,700 7,701,800 8,053,200 8,207,700 8,364,700 8,525,200 Finance 2,168,300 3,427,000 3,443,200 3,509,000 3,576,200 3,645,000 Fire & Emergency 9,434,200 9,633,100 9,654,000 9,669,100 9,684,100 9,699,300 Human Resources 872, , , , , ,000 Parks & Recrea on 15,664,200 16,648,700 16,170,700 16,550,500 16,941,600 17,344,100 Policing 13,531,200 14,010,100 14,229,300 14,455,700 14,645,700 14,814,800 Water 8,821,100 9,146,300 9,730,800 10,354,300 11,080,300 11,546,600 Sewer 6,445,100 6,507,700 6,782,400 7,129,200 7,547,800 8,023,000 Fiscal Services 426, ,100 1,064,400 1,297,300 1,536,100 1,780,900 Amor za on 12,300,000 12,900,000 13,500,000 14,100,000 14,800,000 15,500,000 Total Expenditures $87,067,800 $89,098,900 $90,990,800 $93,798,500 $96,942,200 $99,739,800 Net Revenue (Expenditure) $4,124,900 $7,773,800 $5,624,000 $5,954,400 $6,303,300 $6,704,600 Alloca ons (From) To Financial Equity Surplus $(50,000) $(2,882,500) $- $- $- $- Reserves 1,425,000 9,458,800 7,498,300 8,283,200 9,183,800 10,134,300 Capital expenditures 12,571,600 11,619,200 9,147,400 9,292,900 9,441,200 9,592,000 Capital Contributed by Developers 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Debt Repayment 1,478,300 1,478,300 1,478,300 1,478,300 1,478,300 1,478,300 Amor za on (12,300,000) (12,900,000) (13,500,000) (14,100,000) (14,800,000) (15,500,000) Financial Plan Balance Financial Plan 15

18 Financial Plan Overview Best Practices The Government Finance Officers Associa on of the United States and Canada (GFOA) presented a Dis nguished Presenta on Award to, Bri sh Columbia for its annual budget for the fiscal year beginning January 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an opera ons guide, as a financial plan, and as a communica ons device. This award is valid for a period of one year only. We believe our current budget con nues to conform to program requirements, and we are submi ng it to GFOA to determine its eligibility for another award. This is the s 17th Dis nguished Presenta on Award. 16

19 Revenues FINANCIAL PLAN 17

20 Revenues The City receives revenue from several sources with the main contribu on from property taxes and u lity rates as shown below: 2015 Ongoing Revenue Taxes and U li es $79,146,400 Developer Cost Charges 4,806,900 Other Revenue 4,722,400 Sales of Services 3,775,200 Interest 1,675,500 Grants in Lieu 1,605,900 Total Ongoing Revenue $95,732,300 The Community Charter regulates property taxes. City policies guide how fees and charges are determined. City bylaws set the rates. The total of the ongoing revenues includes staff-recommended decision packages. Property Tax Property taxes are the City s main source of revenue, financing a majority of the services provided by the City. Every property owner in the province must pay property taxes based on the value of their property, unless the property is specifically exempted by provincial statute. Statutory exemp ons are listed in the Community Charter. These proper es include, but are not limited to: schools and universi es places of public worship hospitals The valua on of property within the City is determined by BC Assessment, a provincial Crown Corpora on that classifies and assesses the value of all real property in Bri sh Columbia. In Bri sh Columbia, there are eight property classes: Residen al U li es Major Industrial Light Industrial Business Other Managed Forest Land Recrea onal Property, Non-profit Organiza ons Farm Land Under the Community Charter, the City may grant permissive tax exemp ons which exempt certain proper es from taxa on for a specified period of me. In Port Coquitlam, only non-profit organiza ons occupying municipal or school district property have been exempted by City Council policy. The exemp on is included in Schedule C of the City s Financial Plan Bylaw. City policy requires property taxes be compe ve within the Metro Vancouver municipali es. When se ng tax rates, Council considers: The amount of property taxes levied per capita, Tax and u lity levies on a representa ve home, and The property classifica on s total assessed value and the amount of property taxes borne by that property classifica on. 18

21 Revenues Port Coquitlam property taxes per capita are lower than average ($546) in Metro Vancouver ($660) by 21%, a further increase over the 2013 difference of 9%. Property Tax Distribution 2014 Municipal Residential Property Taxes Per Capita Metro Vancouver average $660 The City may set different tax rates for each property classifica on to a ain a reasonable tax distribu on. In Port Coquitlam, the 2015 tax distribu on policy will result in residen al property contribu ng 58% of the property taxes, and non-residen al contribu ng 42% of the property taxes. The 2014 average for Metro Vancouver municipali es was residen al proper es contribu ng approximately 64% of property taxes. Port Coquitlam $546 Source: Ministry of Community, Sport and Cultural Development 2015 Property Tax Distribution Rates Property Class Mill Rate Residen al U lity Suppor ve Housing Light Industrial Business Seasonal Farm Land Source: Tax Rates Bylaw, 2015, No dollars of tax per $1,000 taxable value Financial Plan 19

22 Revenues User Fees In accordance with the Community Charter, municipal governments set fees and charges by bylaw to cover reasonable costs of providing services to the public. The fees charged must be for the services delivered with no inten on of genera ng a surplus. The City s Cost Recovery Policy states that user fees will be set to recover the full cost of services except where City Council determines that a subsidy is in the general public interest. Council will consider the following factors when determining whether a subsidy is in the general public interest: Who benefits from the service? Services that benefit individuals will generally be subject to a high cost recovery while services that have a large public benefit will have a lower cost recovery. Will the level of demand for a service support full cost recovery? What prices are others charging for the services? How will the City collect fees charged for a service? In some cases it may be imprac cal for the City to implement fees, for example charging a fee for the use of the Traboulay PoCo Trail. Will the fee established influence behaviour in the desired fashion? Is the client able to pay for the service? The full cost of services delivered includes all direct costs (labour, materials, transporta on, facili es and services) and a 15% administra ve surcharge. The City s user fees are supported by bylaws including the Sewer Rates Bylaw, Waterworks Regula on Bylaw, Solid Waste Bylaw, Fees and Charges Bylaw, Animal Control Bylaw, and False Alarm Bylaw. Summary of Fees ( 000s) Engineering $860 $1,382 $1,394 $1,406 $1,419 $1,431 Water Rates 10,658 10,965 11,317 12,077 13,098 13,770 Sewer Rates 7,498 7,639 8,004 8,446 8,964 9,544 Solid Waste Collec on 2,325 3,127 3,155 3,183 3,212 3,240 Parks & Recrea on 4,441 3,959 3,998 4,038 4,079 4,118 Development Services 951 1,100 1,103 1,107 1,110 1,113 Corporate Support 1,157 1,071 1,082 1,092 1,103 1,114 Police Fire Divisions Total: $28,389 $29,944 $30,770 $32,052 $33,687 $35,050 Single Family Home Utility Fees Water and sewer fees for mul family units have grown at the same rate as single family. Garbage collec on is only provided to single-family and duplex proper es, with business and townhouse/apartments receiving service from private contractors. Recycling and green waste service is available to most residen al proper es. 20

23 Revenues Total City Revenues From a Representative House (2014) Residen al property taxes and u li es in Port Coquitlam are less than the average within Metro Vancouver Municipal Residential Property Taxes* for Average Single Family Dwelling Interest Income The City pools its available cash from various funds and invests in financial instruments in accordance with the City s investment policy included in the City s Financial Management Policy (Appendix C). Interest income con nues to remain steady, however is at lower than desired levels due to low market rates and lower reserve balances due to infrastructure spending (Coast Meridian Overpass). It is an cipated that as reserves are replenished, interest revenue will increase. However, future infrastructure spending (Community Recrea on Complex) is an cipated to decrease reserve levels and reduce interest income in coming years. Metro Vancouver average $2,198 Port Coquitlam $2,048 * Based on an average single-family dwelling valued at $527,408 in Source for chart: Ministry of Community, Sport and Cultural Development Financial Plan 21

24 Revenues Grants in Lieu of Taxes The City receives grants in lieu of property taxes from: Proper es owned by the Federal or Provincial Governments or their agencies. Private u li es opera ng within Port Coquitlam at the rate of 1% of the u li es revenue from within the City. Es mates are based on expecta ons of the variables used to calculate the amount to be charged to these bodies. There is an expected increase in grants in lieu from Provincial bodies as they are calculated using the tax rate changes for the general rates. In addi on, there is an expected decline in private u li es company grants as they are based on reported revenue which has been declining in recent years due to increased compe on in the private sector. Overall, the changes are expected to offset resul ng in a sta c amount of grants in lieu for the next five-year period. Grants in Lieu of Taxes 22

25 Enhancements, Savings & Efficiencies FINANCIAL PLAN 23

26 Overview The 2015 budget was built around three main priori es and a variety of other factors (described on pages 8-9). The three priori es are: to develop the organiza on in order to improve customer service, to maximize the life of infrastructure assets (e.g. roads and buildings) and save for their replacement, and to plan for the Community Recrea on Complex on 15 acres of City land in the downtown that include the Port Coquitlam Recrea on Complex and former works yard increase/decrease $ cost /SFD* increase/decrease % cost/sfd* increase/decrease Base tax rate (with commitments, incl. 1% infrastructure levy) $710,700 $ % Enhancements 762, % Savings and efficiencies (675,900) (24.50) (1.24%) Adjusted tax rate $797,700 $ % * SFD = single-family dwelling 24

27 Enhancements Ongoing Enhancements Financing the Community Recrea on Complex Transporta on / public works small community ini a ves e.g. signage, line pain ng Development and mail-out of budget info to residents Grass cu ng at Citadel and Robert Hope Parks, modified cu ng at Castle Park Northside decora ve Christmas light display Total (funded through surplus/reserves) * SFD = single-family dwelling One-time Enhancements 2015 cost $ cost / SFD* These enhancements were funded by surplus and reserve accounts and have no impact on 2015 taxes. % cost/ SFD* $690,000 $ % 35, % 16, % 17, % 4, % $762,900 $ % Community Recrea on Complex: Project planning, design and consulta on $1,500,000 Demolish former public health building $200,000 Building Reserve contribu on for future projects $180,000 Waste cart lock program addi onal costs $141,000 Addi onal waste carts and kitchen pails $104,700 Chafer Beetle control on City proper es $104,200 Decora ve ligh ng for City Hall exterior $75,000 Fire Hall #2 renova on addi onal costs $70,000 May Day float purchase $55,000 Asbestos management program $46,700 Power system upgrade at Public Safety Building $40,900 Review/update of Development Cost Charge Bylaws (Water, Highways & Park) $40,000 Review/update of Subdivision and Services Bylaw $40,000 Northside decora ve Christmas ligh ng display $40,000 Personnel to pursue adver sing revenue $33,000 Reloca ng Purchasing offices to improve service $30,000 New posi on (0.4 FTE) to market City waste services and generate an cipated revenue $28,600 Business directory start-up costs $20,000 Development of a mobile app for City services $15,000 Total (funded through surplus accounts) $2,764,100 Community Recrea on Complex The City is planning a new Community Recrea on Complex. Exis ng recrea on facili es in this 15- acre space in the downtown are old and need to be replaced. The new complex (rendering at right) will be a vibrant community hub where residents can connect, play and use a variety of services and ameni es. Ac vi es in 2015 will include planning, design, consulta on, and se ng aside funds. May Day Float The current float is rented and decorated by a private company for $6,000 per year. A City-owned float will allow more decor op ons and allow the City to par cipate in other parades, thereby encouraging other ci es to join in May Day. Chafer Beetle Control A vigorous turf maintenance program will be implemented to address the European Chafer Beetle infesta on on City land, parks and the cemetery. Biz Directory This searchable lis ng of the 3,200 licensed Port Coquitlam businesses will help promote local goods and services Financial Plan 25

28 Savings & Efficiencies The 2015 budget includes $675,900 in savings and efficiencies in order to balance rising costs with community priori es. Departments were asked to look closely at their opera ons and budgets for opportuni es to reduce costs savings $ cost / SFD* % cost/ SFD* Modify funding source of RCMP contract to include prior-year surplus from vacancies. ($400,000) ($14.49) (0.73%) Reduce funds set aside for base infla on increases, absorbing those costs in exis ng budgets. ($164,700) ($5.97) (0.30%) Adjust sports field maintenance in the following areas due to low community use: Terry Fox Secondary oval field (remove from the City s inventory), Central Elementary and Minnekhada Middle School joint-use fields (reduce maintenance), and Aggie Park sports field (reduce maintenance). ($40,700) ($1.47) (0.08%) Reduc on in library materials budget ($36,700) ($1.35) (0.07%) Reduce the Human Resources legal budget to reflect the average spent each year, and make more use of in-house staff, online resources and Metro Vancouver Labour ($23,800) ($0.86) (0.04%) Rela ons resources. Reduce Development Services consul ng budget ($10,000) ($0.36) (0.02%) Total ($675,900) ($24.50) (1.24%) * SFD = single-family dwelling Reducing maintenance at several local sports fields due to low community use will save $40,700 in

29 Department Business Plans FINANCIAL PLAN 27

30 Department Business Plans Introduction City departments engage in the business planning process in order to clearly define their services and goals as related to corporate priori es such as the Corporate Strategic Plan and Council s stated priori es. Each major service area produces a document describing its unique challenges, accomplishments and goals for the coming year. Business plans are updated and approved by Council on an annual basis as part of the budget process. Business Plans: Office of the Chief Administra ve Officer 31 Corporate Support 37 Bylaw Services 39 Communica ons and Administra ve Services 43 Corporate Office 47 Informa on Services 50 Development Services 54 Administra on 56 Building 57 Development Engineering 61 Economic Development Ac vi es 65 Planning 66 Engineering & Opera ons 70 Administra on 72 Engineering Projects, Mapping & s 73 Opera ons 78 Fleet, Trades and Solid Waste 79 Public Works 82 U li es 85 Transporta on 91 Finance 95 Fire & Emergency Services 100 Administra on 105 Fire Opera ons 106 Fire Preven on 107 Emergency Programs 108 Human Resources 109 Parks & Recrea on 114 Centralized Services 116 Parks & Facili es 120 Recrea on 125 Policing Services (RCMP) 130 Business Plan Contents Division/Sec on Focus Business Perspec ve/environmental Scan Highlights of 2014 Accomplishments Efficiency and Effec veness in 2014 New Revenue Workplan Highlights 2015 Deliverables Indicators and Measures Opera ng Corporate Priorities The business plans are oriented around the following corporate priori es: Council priori es for 2015 (described on page 8) Infrastructure Community Recrea on Complex planning Organiza onal Development (including Customer Service) Corporate Strategic Plan (described in Appendix D) Sustainable Future Sense of Community Economic Strength Community Wellbeing Strategic Service Delivery 28

31 Department Business Plan Summary The following summary is based on informa on compiled from the various 2014 department business plans. Summary of Business Perspective / Environmental Scan The various City service areas commented on the challenges and pressures of their current business landscapes in rela on to what customers and data are telling them. Challenges that are common to many of the City s service areas include: Efficiency in an increasingly complex environment Commitment to improvement Social issues Changing needs in the community Day-to-day volume Highlights of 2014 Accomplishments Select key accomplishments from each department are summarized, below. Complete lists of 2014 accomplishments are provided in the business plans. Office of the CAO Launched and par cipated in Con nuous Improvement Assessments for fleet and purchasing func ons. Oversaw and par cipated in the planning and implementa on of the Community Rec Complex project. Restructured the Opera ons division, Corporate Support department and Development Engineering division. Nego ated a fibre-to-the-premises deal with TELUS. Corporate Support Redeployed staff to improve service to businesses. Improved dog licence contract and parking enforcement system. Updated the corporate website in key areas, including a new business hub and revamped Parks & Recrea on sec on. Developed/implemented a communica ons campaign that increased voter turnout at 2014 civic elec on. Completed Agresso Phase 2 financial system install and framework for Key Performance Indicators dashboards. Development Services Ini ated mobile technology and online schedule for inspec ons. Completed process mapping for monitoring wells. Implemented Mul Material BC (recycling services) administra ve requirements. Managed the Community Recrea on Complex planning process and developed a concept plan. Completed a commercial and industrial land use review. Engineering and Opera ons Completed 2014 Capital and Road Rehabilita on projects. Developed a standalone PoCoMAP to support the Emergency Opera ons Centre. Nego ated a favourable agreement with Mul Material BC for recycling services. Completed annual inspec ons of City infrastructure. Formalized a water meter tes ng/replacement program. Developed a traffic circle program for considera on. Finance Department Completed a Con nuous Improvement Assessment of the City s purchasing func ons. Implemented electronic tax and u lity billing. Received the 2014 GFOA Dis nguished Presenta on Award and 2013 Financial Repor ng Award. Fire and Emergency Services Department Completed Phase 2 of the Opera onal Response Plan, including ensuring ongoing effec veness of the Plan and providing the most effec ve/efficient opera ons to meet current and future needs. Completed training and development of plans for rail and wildfire emergencies. Human Resources Department Supported two Con nuous Improvement Assessments. Implemented a centralized training and development program. Developed a succession planning/knowledge transfer program for fire and engineering posi ons and built a framework for 2015 ac vi es. Achieved a Cer ficate of Recogni on and rebate from WorkSafe BC for OHS and return-to-work programs. Parks and Recrea on Department Finalized a joint-use agreement with School District #43 for field and school facili es. Simplified the tree-cu ng permit process. Substan ally completed the renova on of the Lions Park washroom, pathway and playground. Launched a new, user friendly online registra on system. Ensured all playgrounds meet current safety standards. Began review and update of the Cultural Policy and Plan. Policing Services Strengthened community engagement by deploying one regular member to work in the Community Police Sta on as community liaison officer. Reduced fatal/injury collisions by 3% from Provided a police presence at Port Coquitlam events such as the May Day Fes val, Canada Day and Downtown Car Show Financial Plan 29