Presentation of DISTRICT OF HOUSTON TO 2014 Financial Plan

Transcription

1 Presentation of DISTRICT OF HOUSTON 2010 TO 2014 Financial Plan

2 What is a Financial Plan? Why? 1) Prudent Planning! 2) Legal Requirement, Community Charter (s165 & s166) First year of the plan is the budget or authority to expend funds. Year two is the authority to operate until the next annual 5-year Financial Plan Bylaw is adopted. Years two to five are the municipality s plans; they will / may change each year when a new plan is developed. Each year a number of factors will change the potential tax impacts in the plan. Factors such as new construction or subdivisions, grants that become available for projects, etc. PLEASE NOTE: The District s public consultation process for the Financial Plan takes place during open Finance Committee meetings and is finalized with this presentation of the plan.

3 What s new in 2010 Improved infrastructure including Buck Flats Road & Mt. Davis Way reconstruction. Start process for construction of a water treatment plant Better protection services with completion of emergency water well generator, wildfire protection Green projects including the Woodstove Exchange Program, alternate energy initiatives, creation of a solar energy demonstration site, working with the Regional District & H.O.P.E. on recycling Improved economic development & tourism an Economic Development Officer has been hired and the Community profile is being updated Improved leisure services with improved playground safety, starting a downtown circle pathway, & Four Seasons bleachers refurbishment Major planning to include asset management, official community plan update Continue development of the new Mountainview Cemetery Note: The Government sector accounting changes require a change from cash based budget to include amortization of Tangible Capital Assets is the first year which includes amortization in the Financial Plan. In the past the District has transferred to reserves in the Wastewater Fund & Equipment system sufficient to cover the annual amortization. The Water Fund and General Fund infrastructure require more funding to cover the amortization.

4 Year Base Expense Budget: decrease of $49K (less than.1%) Decreases in the base revenues combined with increases in some base costs, such as hydro and fuel costs, caused a tighter budget in projects to be completed in 2010 $2.4M funded by $1.71M in grants and $33K of 2009 municipal funding carried forward. Principal & Interest (at December 31, 2009): Fire truck capital lease to May 2010 payout, $25K Solid waste truck capital lease to July 2011, $42K Arena Geo thermal loan to 2014, $275K Leisure Facility loan to 2031, $2.2M Sewer extension loan to 2011, MFA deposit interest will likely cover the P & I after May 2010 Major Projects ($8.9M, notes on $50K): Official Community Plan Update 2009/2010 ($50K) Energy initiatives 2009/2010 ($100K with 100% grant funding) Downtown Circle pathway($536k with $442,500 grant funding-$262,500 approved to date) Arena upgrades 2009/2010 ($112K with $41,000 grant funding for 2010) Wild Fire Mitigation 2008/2010 ($533K with 100% grant funding part funding approved) CN Rail bed (dike) assessment ($76K with 100% grant funding) Dike brushing ($100K) ($50K for each of 2009 & 2010) Roads improvements ($1.042M with $1M grant funding) Water well emergency generator 2009/2010 ($224K with $192K grant funding) Replace vehicles and equipment ($125K funded from reserves) New cemetery work in progress 2010 $94K ($164K ) Water Treatment Plant 2010/2012 ($5.550M funded by $5.444M borrowing under a Community Charter assent process) Taxation: overall increase of $53K (1.5%) Third year of tax rate re-alignment, with a focus to reduce reliance on Industrial Taxation (2010 $17,700 reduction)

5 2010 REVENUES & FUNDING $14,405,695

6 2010 Taxation Grants in Lieu Farm Recreation/Non- Profit Business/Other Water Frontage Taxation Residential Sewer Frontage Taxation Light Industry Utility Major Industry

7 2010 EXPENDITURES $14,409,028 $9,000,000 $8,000,000 $7,686,905 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,058,693 $1,772,223 $1,000,000 $0 $810,050 $1,179,771 $318,571 $326,252 $19,006 $299,145 $383,529 $281,765 $273,118

8 Year Capital Funding $7,686,905 Reserves Borrowing Grants Operating $396,680 $1,721,561 $5,443,664 $125,000

9 Year Assuming base costs & revenue increase of (2%) for inflation Assuming taxation increase (2%) Major Projects ($651K, notes on $50K): Leisure Services ($89K) Fire hall roof 2010/2011 (balance of $50K) Pumper replacement (1970) by 4 year lease General road maintenance ($150K) Lights and arms at Benson Railway crossing ($150K reserve funding of $78K) Replacement of vehicles and equipment ($82K, funded from reserves) Water Treatment Plant 2010/2012 ($5.550M funded by $5.444M borrowing under a Community Charter assent process) Water upgrades wellhead protection plan ($60K) Waste Water ($nil) Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

10 Year Assuming base costs & revenue increase of (2%) for inflation Assuming taxation increase (2%) Major Projects ($576K, notes on $50K): General road maintenance ($194K) General storm and drainage maintenance ($100K) Replacement of vehicles and equipment ($194K, funded from reserves) Water Treatment Plant 2010/2012 ($5.550M funded by $5.444M borrowing under a Community Charter assent process) Wastewater ($nil) Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

11 Year Assuming base costs & revenue increase of (2%) for inflation Assuming taxation increase (2%) Major Projects ($710K, notes on $50K): General road maintenance ($173K) Sidewalk improvements ($215K) Leisure Services development ($100) Replacement of vehicles and equipment ($212K, funded from reserves) Water upgrades ($nil) Wastewater upgrades ($nil) Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

12 Year Assuming base costs & revenue increase of (2%) for inflation Assuming taxation increase (2%) Major Projects ($547K, notes on $50K): General road maintenance ($102K) Sidewalk improvements ($200K) Leisure Services development ($100) Replacement of vehicles and equipment ($85K, funded from reserves) Water upgrades ($nil) Wastewater upgrades ($nil) Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.