2012 – 2016 financial plan overview city of pitt meadows dm #94656

2012 – 2016 FINANCIAL PLAN OVERVIEW

City of Pitt MeadowsDM #94656

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2012-2016 Financial Plan

AGENDA

Financial Planning Process

Highlights of the 2012 Proposed Budget

Non Market Growth

Budget Risk

Taxpayer Impact

Long Term Considerations

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2012-2016 Financial PlanProcess

Setting of Targets & Guidelines

Budget Preparation

Preparation of Business Plans

Review with Management

Presentations to Council All presentations are advertised and the public is

encouraged to attend

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2012-2016 Financial PlanProcess

Budget Finalization

Financial Plan Bylaw Summarizes revenue sources and expenditures for at least

five years as required by the Community Charter

Required to be adopted by May 15th each year

Rate Bylaws Utility Rate Bylaws

Tax Rate Bylaw Establishes mill rates after revised assessment roll is received from

BC Assessment Authority

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2012-2016 Financial PlanBudget Highlights

2012 WATER UTILITY HIGHLIGHTS

GVWD Levy increase – 5.9% Contributions to Reserves - $711,000 Capital Program of $1.39M

Blakely Road Main Replacement Ford Road Main Replacement Water Meter Program

Proposed water rate increase – 3.5% on flat charges, GVWD rate flowed through for metered Impact of $14 on average home

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2012 SEWER HIGHLIGHTS

GVSDD Levy increase – 3.5% Contributions to reserves $333,500 Capital Program of $875,000

114B Lift Station Replacement

Proposed sewer rate increase – 3.5% Impact of $11 for average home

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2012 SOLID WASTE HIGHLIGHTS

Increase in tipping fees of 10.3% Proposed Curbside Organics Collection

Total increased operating costs - $128,000

Would result in a rate increase of 11.3% Impact of $27 for average home

Propose Tax Rate Stabilization Offset Hold rate increase to 5%, “Status Quo” level Impact of $11 for an average home

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2012 DRAINAGE HIGHLIGHTS

Increased operating costs - $47,000 Maintenance & Cleaning

Contributions to reserves $335,200 Proposed Capital Program of $2.14M

Mckechnie Drainage Area Improvements Mckechnie Floodbox Culvert Replacements

Funded through drainage levies and separate mill rate Proposed rate increase of 3.5% Impact of $4 for average home

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GENERAL FUND- 2012 OPERATING HIGHLIGHTS

Total operating budget of $19.4 million 6.3% increase in planned expenditures Key Service Drivers:

New Library Operating Costs Increased Provisions to Asset/Infrastructure

Reserves Strategic Capital Reserve Provision Reduce Tax Rate Stabilization Subsidy Debt Service Costs for New/Upgraded Facilities

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$ Change

Tax Rate Increase Impact

Expenditures:

Library 157,731$ 1.10%Parks and Leisure 148,123 1.03%Police Services 159,431 1.11%Increase Transfer to Reserves for Asset and Infrastructure Replacement 224,500 1.56%Increase Transfer to Reserves for Strategic Capital 135,000 0.94%Debt Service 168,606 1.17%Direct City Operations 152,424 1.06%

1,145,815 7.96%Revenues:

Property Taxation - Non Market Change In Assessed Values (365,000) (2.53%)Property Taxation - Reduction in Prior Year Assessments 77,000 0.53%Adjustments to Other Revenues (103,554) (0.72%)Reduction of Tax Rate Stabilization Transfer 129,617 0.90%Other Adjustments to Fund and Reserve Transfers (199,878) (1.39%)

(461,815) (3.21%)

Proposed General Fund Tax Rate Increase: 684,000$ 4.75%

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NON-MARKET CHANGE IN ASSESSMENT

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REVENUE FROM NON-MARKET CHANGE

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TAXATION BY ASSESSMENT CLASS

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2012 GENERAL FUND CAPITAL HIGHLIGHTS General Capital Program of $4.8M

– McMyn Park Development– Caretaker House at Pitt Meadows Athletic Park– Harris Park Sports Field Reno– Kennedy Road Repave – Lougheed to Ferry Slip– Thompson Road Bridge Replacement

Funded by Reserves, Development Cost Charge’s, Third Party Contributions, Grants and Borrowing

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CAPITAL DECISION PACKAGES

Pedestrian Activated Traffic Signal - $81,000 Bikeway and Pedestrian Master Plan - $35,000 Paperless Agenda Implementation - $15,000

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WHERE THE MONEY GOES

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WHERE THE MONEY COMES FROM

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2012-2016 Financial PlanBudget Risks

Assessment appeals Vacancy allowances have been made for RCMP

staffing Allowances for potential staffing vacancies based

on past patterns Land Sale – Timing and how Council decides to

allocate proceeds Debt Servicing Rates Inflation gap Little in discretionary spending

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2012-2016 Financial PlanTaxpayer Impact

Charge Type2011 Total Charges

Rate Change

%

Rate Change

$

2012 Total Charges

Municipal Property Taxes $ 1,307 3.75% $ 49 $ 1,356 Strategic Capital 14 1.00% 14 28 Drainage Mill Rate 45 3.50% 2 47 Drainage Flat Rate 31 3.50% 2 33 Solid Waste Charge 235 5.00% 11 246 Sewer Charge 289 3.50% 11 300 Water Charge 394 3.50% 14 408

Total Municipal Charges 2,315 4.45% 103 2,418 Other Governments (estimated) 950 3.00% 28 978

Total Property Taxes 3,265 4.01% 131 3,396 Less: Home Owners Grant 570 570

Net Property Taxes Payable 2,695$ 2,826

Estimated Charges and Changes

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GROSS CHARGES ON THE BILL

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Municipal Cost CentresAnnual Cost

2012 Cost Per Day

Water 408.00$ 1.12$ Police Services 313.58 0.86 Sewer 300.00 0.82 Transfers to General Reserves 271.45 0.74 Solid Waste 246.00 0.67 General Government 231.70 0.63 Parks and Leisure Services 147.80 0.40 Transportation and Public Works 124.66 0.34 Development Services 99.52 0.27 Fire, Rescue and Emergency Services 90.50 0.25 Drainage 80.00 0.22 Library 60.92 0.17 Debt Servicing 43.87 0.12

2,418.00$ 6.62$

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2012-2016 Financial PlanLong Term Considerations

Regular increases in funding for reserves for replacing assets/infrastructure

Continued increases in provisions for Strategic Capital initiatives

Inflationary adjustments for other expenditures where not specifically known

Revenue from growth in the assessment base of approximately 2.5% per annum

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2012-2016 Financial PlanConclusion

GENERAL FUND OPTIONS

% $ Impact

General Tax Rate Increase per Proposed Budget 3.75% 49.00$

Increase in Provision for Strategic Capital 1.00% 14.00

Incremental Decision Packages:Support for the Farmers Market 0.03% 0.42

4.78% 63.42$

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2012-2016 Financial Plan

Thank You

Dean Rear, CADirector of Finance(604) 465 – 5454 or

[email protected]

2012 – 2016 financial plan overview city of pitt meadows dm #94656

Documents

financial plan process

proposed budget

drainage highlights

rate proposed rate increase

assessment slide

average home slide

water rate

gvwd rate