FIVE YEAR FINANCIAL PLAN BYLAW, 2015 BYLAW NO. 15-025 This consolidation is a copy of a bylaw consolidated under the authority of section 139 of the Community Charter. (Consolidated on September 1, 2015 up to Bylaw No. 15-063) This bylaw is printed under and by authority of the Corporate Administrator of the Corporation of the City of Victoria.
NO. 15-025 FIVE YEAR FINANCIAL PLAN BYLAW, 2015 A BYLAW OF THE CITY OF VICTORIA (Consolidated to include Bylaw No. 15-063) The purpose of this bylaw is to adopt the annual financial plan for the year 2015. Under its statutory powers, including section 165 of the Community Charter, the Council of The Corporation of the City of Victoria, in an open meeting assembled, enacts the following provisions: 1. This Bylaw may be cited as the "FIVE YEAR FINANCIAL PLAN BYLAW, 2015." 2. Schedules 1 to 5 attached hereto and forming part of this Bylaw are adopted as the five year Financial Plan of the Corporation of the City of Victoria. 3. The Director of Finance is authorized to pay out in accordance with the Bylaws of the City, the sums of money shown in Schedule 2 and Schedule 4 for the year 2015, for the purpose described in each category. 4. All cheques drawn on the bank for payment of funds belonging to the City must be signed by the Director of Finance and countersigned by the Mayor before being issued. 5. All payments already made from municipal revenues for the current year are ratified and confirmed. 6. The Five Year Financial Plan Bylaw No. 14-037 is repealed. READ A FIRST TIME on the 26 th day of February 2015 AMENDED on the 23 rd day of April 2015 READ A SECOND TIME on the 23 rd day of April 2015 READ A THIRD TIME on the 23 rd day of April 2015 ADOPTED on the 30 th day of April 2015 ROBERT G. WOODLAND CORPORATE ADMINISTRATOR LISA HELPS MAYOR
Bylaw No.15-025 Schedule 1 - April 23, 2015 City of Victoria 2015-2019 Operating Financial Plan 2015 2016 2017 2018 2019 REVENUES Property Value Taxes 118,764,023 121,717,153 126,849,788 132,350,163 135,504,138 Property Value Taxes from New Assessments 2,871,000 500,000 500,000 500,000 500,000 Parcel Taxes 1,466,269 1,431,828 1,466,696 1,502,496 1,539,256 Special Assessments 3,171,685 3,186,238 3,201,082 3,216,224 3,231,668 Grants in Lieu of Taxes 5,576,000 5,687,020 5,800,260 5,915,766 6,033,581 User Fees and Charges 4,283,410 4,381,704 3,143,497 3,193,233 3,241,489 Permits and Licences 4,079,850 4,079,850 4,079,850 4,079,850 4,079,850 Parking Fees and Enforcement 15,677,800 15,903,040 16,132,785 16,367,124 16,606,151 Water Utility Fees and Charges 18,556,750 18,858,219 19,437,570 19,730,562 20,187,719 Sewer Utility Fees and Charges 7,870,230 7,870,230 9,413,438 9,676,924 9,950,341 Stormwater Utility Fees and Charges 10,333 5,141,332 5,636,613 6,132,801 6,505,182 Other Sources 31,673,531 33,322,234 35,143,719 35,535,598 36,040,428 214,000,881 222,078,849 230,805,299 238,200,740 243,419,803 TRANSFERS FROM Accumulated Surplus 2,898,482 - - - - Reserves Art in Public Places 145,000 135,000 135,000 135,000 135,000 Financial Stability 345,000 152,000 105,000 - - Strategic Plan Initiatives 143,532 - - - - 3,532,014 287,000 240,000 135,000 135,000 Sub-total 217,532,895 222,365,849 231,045,299 238,335,740 243,554,803 COLLECTED ON BEHALF OF OTHER GOVERNMENTS Taxes and Fees 87,449,872 89,198,177 90,982,847 92,802,504 94,658,554 304,982,767 311,564,026 322,028,146 331,138,244 338,213,357
Bylaw No.15-025 Schedule 2 - April 23, 2015 City of Victoria 2015-2019 Operating Financial Plan 2015 2016 2017 2018 2019 EXPENDITURES General Government 26,444,617 26,824,576 27,243,797 27,931,139 28,088,868 Police 48,245,183 49,665,396 51,100,465 52,576,558 54,094,882 Fire and Victoria Emergency Management Agency 15,523,423 15,903,249 16,290,484 16,687,203 17,093,629 Engineering and Public Works 27,656,107 28,277,358 28,861,326 29,440,237 30,046,970 Sustainable Planning and Community Development 5,004,218 4,831,425 4,821,031 4,825,652 4,922,165 Parks, Recreation and Culture 14,897,071 15,228,038 15,530,213 15,838,842 16,153,844 Greater Victoria Public Library 4,562,523 4,731,042 4,879,695 5,024,896 5,177,110 Victoria Conference Centre 8,099,170 8,185,080 8,270,304 8,357,592 8,446,976 Water Utility 13,375,532 13,639,483 13,900,551 14,166,847 14,438,479 Sewer Utility 3,421,842 3,484,259 3,543,945 3,604,824 3,666,920 Stormwater Utility 3,238,105 3,312,298 3,378,629 3,446,288 3,515,303 170,467,790 174,082,203 177,820,440 181,900,077 185,645,146 DEBT SERVICING Principal and Interest - General 3,918,396 7,827,583 7,827,583 7,827,583 7,827,583 Principal and Interest - Parking Services 845,382 845,382 845,382 845,382 845,382 Principal and Interest - Victoria Conference Centre 340,359 340,359 340,359 340,359 340,359 5,104,137 9,013,324 9,013,324 9,013,324 9,013,324 TRANSFERS TO Capital Funds General 13,034,242 11,730,208 13,542,208 15,429,208 15,429,208 Water Utility 3,331,218 3,368,736 3,687,020 3,713,715 3,899,241 Sewer Utility 2,767,852 2,571,522 5,469,493 5,672,101 5,883,421 Stormwater Utility - 3,029,034 3,381,984 3,734,993 4,063,329 Reserves Equipment and Infrastructure City Equipment 1,602,500 1,602,500 1,602,500 1,602,500 1,602,500 City Vehicles and Heavy Equipment 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 City Buildings and Infrastructure 6,263,393 5,889,911 6,391,460 6,893,040 7,394,651 Parking Services Equipment and Infrastructure 807,540 909,212 1,019,825 1,132,397 1,247,210 Multipurpose Facility Equipment and Infrastructure 112,500 114,750 117,045 119,386 121,774 Gas Tax 3,200,000 3,200,000 3,400,000 3,400,000 3,500,000 Police Vehicles, Equipment and Infrastructure 1,000,000 1,065,000 1,125,000 1,150,000 1,180,000 Water Utility Equipment and Infrastructure 1,850,000 1,850,000 1,850,000 1,850,000 1,850,000 Sewer Utility Equipment and Infrastructure 1,680,536 1,814,449 400,000 400,000 400,000 Stormwater Utility Equipment and Infrastructure - - 100,000 200,000 200,000 Financial Stability 3,536,187 100,000 100,000 100,000 100,000 Tax Sale Lands 50,000 50,000 50,000 50,000 50,000 Victoria Housing 1,000,000 250,000 250,000 250,000 250,000 Art in Public Places 135,000 135,000 135,000 135,000 135,000 Climate Action 90,000 90,000 90,000 90,000 90,000 41,960,968 39,270,322 44,211,535 47,422,340 48,896,334 Sub-total 217,532,895 222,365,849 231,045,299 238,335,740 243,554,803 TRANSFERS TO OTHER GOVERNMENTS Taxes and Fees 87,449,872 89,198,177 90,982,847 92,802,504 94,658,554 304,982,767 311,564,026 322,028,146 331,138,244 338,213,357 Bylaw current to January 1, 2015. To obtain latest amendments, if any, contact Legislative Services at 250-361-0571.
Schedule A Bylaw No.15-063 Schedule 3-July 16, 2015 City of Victoria 2015-2019 Capital Plan 2015 July 16/15 Budget Amendments Revised 2015 2016 2017 2018 2019 REVENUES Utility Connection Fees 1,050,000 1,050,000 1,100,000 1,100,000 1,100,000 1,100,000 Grants and Partnerships 13,333,812 13,333,812 4,987,303 4,522,241 - - TRANSFERS FROM Operating Funds General 13,034,242 13,034,242 11,730,208 13,542,208 15,429,208 15,429,208 Water Utility 3,331,218 3,331,218 3,368,736 3,687,020 3,713,715 3,899,241 Sewer Utility 2,767,852 2,767,852 2,571,522 5,469,493 5,672,101 5,883,421 Stormwater Utility - - 3,029,034 3,381,984 3,734,993 4,063,329 Reserves Equipment and Infrastructure City Equipment 1,654,820 1,654,820 1,113,780 989,255 1,121,932 1,247,309 City Vehicles and Heavy Equipment 2,965,000 2,965,000 - - - - City Buildings and Infrastructure 14,316,349 2,554,000 16,870,349 430,200 4,010,404 10,612 10,824 Victoria Conference Centre Equipment and Infrastructure 250,000 250,000 173,000 51,000 30,000 40,000 Parking Services Equipment and Infrastructure 1,737,000 1,737,000 231,540 736,171 240,894 245,712 Gas Tax 3,992,200 3,992,200 5,374,700 3,946,950 1,313,500 2,333,818 Police Vehicles, Equipment and Infrastructure 1,566,000 1,566,000 1,188,664 1,141,012 1,333,740 1,557,531 Water Utility Reserve - - 1,000,000 1,000,000 1,000,000 1,000,000 Tax Sale Lands 3,036,900 3,036,900 - - - - Parks and Greenways Acquisition 500,000 500,000 - - - - Development Cost Charges 53,000 53,000 54,060 55,141 56,244 57,369 DEBT PROCEEDS 18,741,489 18,741,489 11,451,922 1,155,644 - - 82,329,882 2,554,000 84,883,882 47,804,669 44,788,522 34,756,939 36,867,762
Schedule B Bylaw No. 15-063 Schedule 4- July 16, 2015 City of Victoria 2015-2019 Capital Plan 2015 July 16/15 Budget Amendments Revised 2015 2016 2017 2018 2019 EXPENDITURES Capital Equipment 6,525,320 6,525,320 2,345,693 2,607,586 2,072,821 2,146,611 Capital Programs and Projects Active Transportation 5,086,500 5,086,500 4,810,670 3,118,085 1,395,745 2,958,660 Complete Streets 4,481,200 4,481,200 4,083,360 3,896,882 3,638,577 3,957,848 Downtown Beautification 303,000 303,000 309,056 315,237 321,542 327,973 Parks 2,720,920 2,720,920 75,000 25,000 - - Street Infrastructure 122,000 122,000 72,824 20,000 20,400 20,808 Retaining Walls and Railings 2,305,555 2,305,555 420,000 - - - Bridges 32,059,381 2,554,000 34,613,381 15,217,225 9,677,884 - - Facilities 6,135,500 6,135,500 867,743 867,500 466,399 431,327 Land Purchase 8,000,000 8,000,000 - - - - Environmental Remediation 1,942,000 1,942,000 - - - - Sanitary Sewers 3,067,852 3,067,852 2,871,522 5,769,493 5,972,101 6,183,421 Stormwater 4,183,436 4,183,436 6,096,534 4,626,734 4,548,493 5,347,147 Waterworks 3,831,218 3,831,218 4,918,736 5,237,020 5,263,715 5,449,241 Police 1,566,000 1,566,000 1,188,664 1,141,012 1,333,740 1,557,531 Projects to be determined (Facilities, Active Transportation, Parks etc.) - - 4,527,642 7,486,089 9,723,406 8,487,195 i, 554,060 64,663,662 47,664,665 44,766,33* 36,$6?,76*
Bylaw No. 15-025 Schedule 5 April 23, 2015 Financial Plan Objectives and Policies Revenue and Tax Policy Purpose The purpose of the Revenue and Tax Policy is to outline the proportions of revenue sources, the distribution of property taxes among property classes and the use of permissive property tax exemptions. Primary Objectives To provide tax payers with stable, equitable and affordable property taxation while at the same time providing high quality services. To support the OCP and other City plans as well as complement the Regional Context Statement. Policies 1. Revenue Proportions by Funding Sources Property taxes are the main source of revenue for the City and pay for services such as police and fire protection, bylaw enforcement, and infrastructure maintenance. Property taxes provide a stable and consistent source of revenue for services that are difficult or undesirable to fund on a user pay basis. Therefore, property taxes will continue to be the City s major source of revenue. However, it is the City s desire to charge user fees where feasible. Some programs, such as recreation, are partially funded by user fees. The City also has several self-financed programs that are fully funded by user fees. These include Water Utility, Sewer Utility, Garbage Utility, and the Victoria Conference Centre. In addition, the City has reviewed and updated its DCC bylaw to ensure that developers are paying their fair share of infrastructure required as a result of new development. Policy 1.0 User pay funding will be used for such services that are practical and desirable to fund on a user pay basis. Services that are undesirable or impractical to fund on a user pay basis will be funded by property taxes. Policy 1.1 The City will continue to explore alternative revenue sources to diversify its revenue base.
2015 Revenue Proportions by Funding Source Revenue Source % Total Revenue Property Value Taxes 121,635,023 55.92% Parcel Taxes 1,466,269 0.67% Special Assessments 3,171,685 1.46% Grants in Lieu Taxes 5,576,000 2.56% User Fees and Charges 4,283,410 1.96% Permits and Licences 4,079,850 1.87% Parking Fees & Enforcement 15,677,800 7.21% Water and Sewer Utility Fees and Charges 26,426,980 12.15% Stormwater Utility Fees and Charges 10,333 0.00% Other Sources 35,205,545 16.20% TOTAL 217,532,895 100.00% 2. Distribution of Property Taxes Among Property Classes Market value changes that result in uneven assessment changes between property classes result in a tax burden shift to the class experiencing greater market value increases unless tax ratios are modified to mitigate the shift. Until 2007, it was Council s practice to modify tax ratios to avoid such shifts. This equalization practice provided an effective tax increase that was equal for all classes. It is important to be aware that this practice only avoids shifts between property classes. There is still a potential for shifts within a property class where one property has experienced a market value change that is greater than the average for that class. However, starting in 2007, business and industrial tax ratios have been held constant in recognition of the larger tax burden that has been placed on those classes. This resulted in higher tax increases being passed on to the residential class compared to business and industrial. The pressure continues across the country to reduce the tax burden on the business and industrial classes. In recognition of this, and the desire to support a healthy business environment, Council s goal is to have a business class tax burden that is equitable. In 2012, a comprehensive review of the Revenue and Tax Policy was conducted to determine if Council s objective of reducing the tax burden on the business class was appropriate and if so, that the mechanism of achieving the objective (reduction of tax ratio) was the most effective mechanism to achieve the goal. The review concluded that additional relief for the business tax class was warranted. However, the tax ratio was not the best mechanism of achieving that goal. As a result, Council approved the following policy objective: To reduce the business property tax class share of the total property tax levy to 48% over three years (2012-2014). The redistribution excludes impact of new assessment revenue. The total redistribution of the tax levy was $1.51 million. In 2015, an update review was completed and based on the findings, policy 2.0 was amended to maintain the current share of taxes among tax classes.
Policy 2.0 Maintain the current share of distribution of property taxes among property classes, excluding the impact of new assessment revenue, by allocating tax increases equally. Business and industrial classes will be grouped as outlined in Policy 2.1. Policy 2.1 Tax rates for the light and major industrial tax classes will be equal to the business tax rate to support the City s desire to retain industrial businesses. Policy 2.2 Farm Tax Rates will be set at a rate so taxes paid by properties achieving farm status will be comparable to what the property would have paid if it were assessed as residential. 2015 Distribution of Property Taxes Among Property Classes Property Class % Property Value Tax Residential (1) 61,173,297 50.29% Utilities (2) 549,628 0.45% Supportive Housing (3) 0 0.00% Major Industry (4) 127,482 0.10% Light Industry (5) 817,096 0.67% Business (6) 58,779,882 48.32% Recreational (8) 187,638 0.17% TOTAL 121,635,023 100.00%
3. Use of Permissive Property Tax Exemptions The City continues to support local non-profit organizations through permissive tax exemptions. Each year, a list of these exemptions is included in the City s Annual Report. In addition, the City offers a Tax Incentive Program to eligible owners of downtown heritage designated buildings to offset seismic upgrading costs for the purposes of residential conversion of existing upper storeys. The exemptions are for a period up to ten years. The City encourages redevelopment of lands within the City and the use of environmentally sustainable energy systems for those developments through revitalization property tax exemptions. Policy 3.0 Permissive property tax exemptions are governed by the City s Permissive Property Tax Exemption Policy, which outlines the criteria for which property tax exemptions may be granted. Policy 3.1 Heritage property tax exemptions are governed by the City s Heritage Tax Incentive Program. Policy 3.2 Revitalization property tax exemptions are governed by the City s Revitalization Tax Exemption (Green Power Facilities) bylaw.