Financial Plan 2014-2018

&Property Tax

Policy

Erin AndersonDirector of Financial Services

April 7, 2014

Community Charter Requirements Section 165(1)

“A municipality must have a financial plan that is adopted, by bylaw, before the annual property tax bylaw is adopted.”

2014-2018 Financial Plan Updated as information becomes

available

Capital Project List – General

Administration ProjectsAudio/Visual Equipment - Council Chambers

Citizen Surveys

City Hall

City Hall Reserve

DCC Review

DCC Review - indepth

Electronic agendas

Electronic records management system

Telephone System

Waterfront Property

Development ProjectsBoundary Expansion

Directional Signage

Directional Signage implementation (Consultant)

Downtown Parking Signage

Downtown Wayfinding Signs

First Nations Protocol

Waterfront Area Plan

Zoning Bylaw

Emergency ServicesFire Services & PoliceEmergency Services

Back up generator - FJCC

Storage container - FJCC

Fire

Fire Hall Reserve

Firefighters Turn-out Gear

Fire Hall Upgrade

Police

Close Circuit Video Equipment (Mandatory 2015)

RCMP building generator

General & ITGeneral

Infrastructure Deficit allocation

Information Technology

Active Network Software (Class) start-up

VMHOST3

Mobile Version of Website

Sharepoint Server

Vadim - upgrades to platform support & Vadim Open

ParksBleachers for Base Ball fields

Dog park

Dugouts & storage roofs

Dugouts & storage roofs Aggie

Holland creek Ball Field Washrooms

Holland Creek Bridge Replacement

Holland Creek Trail assessment/improvements

Holland Creek Trail improvements

Holland Creek Trail washrooms

Information Boards - Holland Cr 6th & Methuen

LMS Walkway

Lot 108 Phase 2

Soccer nets

Trans Canada Trail feasibility study (grant dependent)

Transfer beach foreshore improvements

Transfer Beach Picnic tables

Tree replacement Program

PlaygroundsRecreationPlaygrounds

Aggie Field playground

Playground - Transfer Beach

Root Street playground

Transfer Beach Playground (Rotary)

Recreation

Expand fitness centre - FJCC

Fitness Equipment - FJCC

Weight Machines

Building MaintenanceLower parking lot paving -FJCC

2nd Floor Air Handling Unit- FJCC Machine Shop Building Condition Assessment

Admin office roof Air Handling Unit - FJCC Main pool sand filter – FJCC

Air Handling Unit - City Hall Oasis Pool - Boilers – FJCC

Boiler Retrofit - PW Oasis Swimming Pool filter – FJCC

Change room floor replace - FJCC Pool vacuum – FJCC

Charging Station - FJCC Reception Area safety upgrades- FJCC

Direct Digital Control System - FJCC Remote Lighting software - Aggie & FF

Domestic Hot Water Boiler Shower - FJCC Rooftop Air Handling Unit-Aquatics - FJCC

Energy upgrades - FJCC Shower Flooring - Forrest Field

Floor scrubber - FJCC Sportsman shelter Roof TB

Heater washroom - Transfer Beach Swimming Pool Boilers - FJCC

Kinsmen Shelter Roof - TB Washroom upgrades- Aggie

Lighting upgrades - Aggie Water fountain Forrest Field

Lighting Upgrades - FJCC Water hydration stations - FJCC

Locker replacement - FJCC Whirlpool Boiler - FJCC

Public Works ProjectsAnnual sidewalk repairs Master Transportation Plan

Communications System Upgrade Ornamental Streetlights - inspection

Dogwood Drive Bridge Capacity Assessment Parking at aggie

Equipment - Bobcat Pavement Management Strategy

Equipment - Sander Pavement Reconstruction

Equipment replacement Pavement replacement

Equipment Replacement - 3 pickups Paving: 4th Ave, Methuen to Belaire

Geotechnical Investigation 2nd Avenue Public Works Wash Station and Liquid Collection

GIS implementation Safety Upgrades to 1st Avenue

Golf course culvert replacement Second Road Egress to MarinaGourlay Janes park retaining wall replacement Sidewalk repairsHigh St sidewalk & gateway - only if High St development Subdivision Bylaw

Industrial Access Road - South Ladysmith - (split) Symonds reconstruction

Work order/asset software Walking Path

Storm main Replacement

Storm Water Asset Replacement

Symonds storm sewer replacement

Property TaxationPolicy direction

Requirements of the Community Charter S.165

Objectives and Policies for the planning period

Portion of revenue from: Property Taxes Parcel Taxes Fees Other Borrowing

2013-2017 Policy The Town will review all user fee levels

to ensure they are adequately meeting both the capital and delivery costs of the service.

Sources of Revenue

 Revenue 2013 % total2014

DRAFT% total

Property Taxes$6,781,99

929.99

%$7,035,34

028.11%

Grants in Lieu 158,250 0.70% 165,163 0.66%Parcel Taxes 1,349,850 5.97% 1,389,814 5.55%User fees & Charges

3,059,32713.53

%3,049,666 12.19%

Other Sources 454,921 2.01% 484,422 1.94%

Borrowing 4,729,00020.91

%4,060,000 16.22%

Government Grants

1,313,051 5.81% 5,336,777 21.32%

DCC's & Reserves 381,625 1.69% 331,625 1.33%

Own Funds 4,085,43918.06

%2,850,845 11.39%

Library 303,456 1.34% 328,018 1.31%

Distribution of Property Tax The residential property class provides

the largest proportion of property tax revenue. This is appropriate as this class also forms the largest portion of the assessment base and consumes the majority of Town services.

2013 Property Tax Objective In 2013, maintain the Major Industry (Class 4) tax

dollar levy. Over 2014-2017, reduce the share of property tax paid by Class 4 by at least 2 percent.

In 2013, Council directed the Residential Class (Class 1) tax increase to be no more than 5% after new construction figures and that the Business/Other Class (Class 6) increase be no more than half of the Residential (Class 1) increase. Over 2014-2017, maintain the Class 6 tax levy increase to be no more than half of the Class 1 tax levy increase.

2013 Property Tax Distribution Policy Supplement, where possible, revenues from user fees and charges to

help to offset the burden on the entire property tax base as a result of the reduction in the tax share paid by major industry (Class 4).

If a tax shift to other property classes is required as a result of the reduction in the tax rate to major industry (Class 4), Residential (Class 1) should be the first to absorb any such shifts.

Continue to maintain and encourage economic development initiatives designed to attract more light industry, retail and commercial businesses to invest in the community. New investment from these areas will help offset the reduction to major industry (Class 4) while providing more revenue for the Town.

Align the distribution of tax rates among the property classes with the social and economic goals of the community, particularly to encourage economic and environmental sustainability opportunities.

Regularly review and compare the Town’s distributions of tax burden relative to other municipalities in British Columbia.

2009 – 2013 Distribution of Property Tax

How does Ladysmith compare?Difficult to compare…

Ranking of Class 1 Provincially

115/161 for rate (4.8096) 95/161 for percentage of taxes (69%) 118/161 for per capita ($588)

Residential Class% of Total Assessment

Ranking of Class 4 Only ranking municipalities with Class 4 104/105* for rate (97.3893) 44/77 for percentage (13%)

Major Industry Class% of Total Assessment

Class 4 Properties - $945,952

Owner2013

Assessment2014

Assessment

Western Forest Products Inc 4,019,000 3,479,000

Western Forest Products Inc 5,244,000 5,507,000

Doman-Western Lumber Ltd 424,000 423,000

Oak Bay Marina Ltd 11,200 11,200

Western Forest Products Inc 14,900 14,900

Total (Class 4)Assessment 9,713,100 9,435,100

Does Council wish to continue with the policy of levying the Class 4 properties at a total dollar value of $945,952?

Ranking of Class 6 129/161 for rate (14.7969) 64/161 for percentage of taxes (16%)

Business/ Other Class% of Total Assessment

Does Council wish to maintain the current policy:

Over 2014-2017, maintain the Class 6 tax levy increase to be no more than half of the Class 1 tax levy increase.

Recreation Non-profit Class% of Total Assessment

Ranking of Class 8 33/161 for rate (2.7162) 51/161 for percentage of taxes (0%)

Only 4 Properties: Ladysmith 2101 Home Society Oak Bay Marina (2 properties) Ladysmith Maritime Society (non-exempt

portion)

Recommendation:

Increase the tax reliance on Class 8 to reflect the assessment changes to this Class.

Questions?

Provincial Multiples Class 1 Residential 1.0 : 1 Class 2 Utilities 3.5 : 1 Class 4 Major Industry 3.4 : 1 Class 5 Light Industry 3.4 : 1 Class 6 Business/Other 2.45 : 1 Class 7 Managed Forest3.0 : 1 Class 8 Recreation 1.0 : 1 Class 9 Farm 1.0 : 1