REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE FINANCE DEPARTMENT

Transcription

1 December 4, 2014 REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE FINANCE DEPARTMENT ON INTRODUCTION OF THE FIVE-YEAR FINANCIAL PLAN AND AMENDMENT TO THE FIVE-YEAR FINANCIAL PLAN BYLAW PURPOSE To provide an introduction and background information for the Five-year Financial Plan and to recommend that the Five-year Financial Plan be amended as presented. SUMMARY The Five-year Financial Plan is being introduced on December 9, The plan indicates preliminary estimates for the 2015 tax rate and includes the water, sewer, and solid waste rates for The 2015 General Operating Fund is preliminary as it is subject to public consultation and Council review in the first quarter of City revenue will not be confirmed until March 2015, after which Council will set the tax rate for The amended Five-year Financial Plan Bylaw changes the approved revenue and expenditure amounts for the years RECOMMENDATION: That Council authorize Financial Plan Amendment Bylaw No (amending the Five-year Financial Plan ) be introduced and read a first, second, and third time. COUNCIL POLICY There is no applicable Council policy. T:\FIN\ADM\REP\2014\Five-year Financial Plan Report.docx 38

2 INTRODUCTION OF THE FIVE-YEAR FINANCIAL PLAN December 4, 2014 AND AMENDMENT TO THE FIVE-YEAR FINANCIAL PLAN BYLAW Page 2 DISCUSSION The amended plan indicates a preliminary tax requirement of 1.91% for the General Fund and $15 increase in solid waste collection fees for the average single-family residence. Explanation Tax Increase (Decrease) Wage and benefit increases (CUPE, IAFF, exempt staff, and management) $1,430,862 Transit contract Increase (includes service hours increase effective September 1, 2015) 623,103 Capital funding increase 259,792 RCMP contract 351,685 Annualization of RCMP member increase approved in ,060 Vehicle costs 266,500 Expenses for new parks 155,728 Annualization of staff increases approved in ,820 Increased hydro costs 125,325 Building Permit revenue decrease 100,000 Other expense budget changes 531, municipal election (123,148) Budget reduction from review of three-year average (219,978) Other revenue budget changes (235,066) Solid waste tax requirement decrease (702,842) % Increase Total property tax change $2,779, % Anticipated revenue from growth $(1,000,000) -1.07% 2015 property tax increase required for base budget $1,779, % T:\FIN\ADM\REP\2014\Five-year Financial Plan Report.docx 39

3 INTRODUCTION OF THE FIVE-YEAR FINANCIAL PLAN December 4, 2014 AND AMENDMENT TO THE FIVE-YEAR FINANCIAL PLAN BYLAW Page 3 Analysis of Budget Changes from 2014 to Solid Waste Explanation Tax Increase (Decrease) Reduced subsidy from property taxes $702,842 Administration costs 259,968 Wage and benefit increases 38,705 Other revenue budget changes 10,000 Review of prior year actual results (14,540) Other expense budget changes (125,857) Vehicle charges (182,565) Increased landfill tipping fees (600,000) Increased transfer to solid waste reserve 571,447 Increased solid waste collection fees $660,000 Analysis of Budget Changes from 2014 to Water Explanation Water Levy Increase (Decrease) Administration costs $180,034 Increased hydro costs 83,790 Wage and benefit increases 32,766 Other expense budget changes 33,336 Debt costs (252,128) Capital funding decrease (1,683,330) Surplus from operations 1,605,532 Water levy increase - Analysis of Budget Changes from 2014 to Sewer Explanation Sewer Levy Increase (Decrease) Debt costs $1,342,365 Wastewater treatment plant 136,000 Administration costs 122,950 Increased hydro costs 36,720 Wage and benefit increases 27,901 Budget reduction from review of three-year average (58,320) Contractual hauling services (104,230) Other expense budget changes (147,429) Capital funding decrease (1,272,323) Increase transfer from surplus to balance operations (83,634) Sewer levy increase - T:\FIN\ADM\REP\2014\Five-year Financial Plan Report.docx 40

4 INTRODUCTION OF THE FIVE-YEAR FINANCIAL PLAN December 4, 2014 AND AMENDMENT TO THE FIVE-YEAR FINANCIAL PLAN BYLAW Page 4 The indicated 1.91% General Fund tax increase translates to approximately $34.60 for the average home and a $15 increase in solid waste collection fees for the average single-family residence. The total increase estimate, at this time, is $49.60 for the average residential home ($343,000). Council will go through a detailed review of the Five-year Financial Plan with Administration and the public in the first quarter of The plan will be adopted and the 2015 tax rate will be set before May 15, S. E. Edwards, BBA, CMA Finance Director Approved for Council Consideration: SEE/kjm Attachment T:\FIN\ADM\REP\2014\Five-year Financial Plan Report.docx 41

5 CITY OF KAMLOOPS BYLAW NO A BYLAW OF THE CITY OF KAMLOOPS RESPECTING THE FINANCIAL PLAN FOR THE YEARS , INCLUSIVE The Municipal Council of the City of Kamloops, in open meeting assembled, enacts as follows: 1. This bylaw may be cited as "Financial Plan Bylaw Amendment Bylaw No , 2014". 2. City of Kamloops Financial Plan Amendment Bylaw No , 2014, as amended, is hereby further amended as follows: a) Schedules "A", "B", "C", and "D" are hereby repealed in their entirety and re-enacted as Schedules "A", "B", "C", and "D" as shown on Appendix "1" attached to and forming part of this bylaw. READ A FIRST TIME the day of, READ A SECOND TIME the day of, READ A THIRD TIME the day of, ADOPTED this day of, MAYOR CORPORATE OFFICER 42

6 BYLAW NO Appendix "1" PAGE 2 SCHEDULE "A" Five-year Financial Plan General Operating Fund Revenue: Real property taxes 93,144,000 94,923,592 99,280, ,286, ,352,267 Taxes - new assessments 1,000,000 1,000,000 1,000,000 1,000,000 Special assessments 4,350,931 4,378,848 4,404,639 4,479,639 4,555,639 Fees, rates and sales of service 27,093,622 28,110,256 28,566,247 29,006,250 29,790,726 Grants 16,623,293 17,508,634 18,013,024 18,264,102 18,696,107 Investment income 3,498,071 3,628,873 3,822,685 3,987,241 4,204,028 Sale of capital assets 125, , , , ,000 Private contributions 88,254 84,000 84,000 84,000 84,000 Total Revenue 144,923, ,759, ,296, ,232, ,807,767 Expenditures: Cemetery 487, , , , ,555 Community development 4,824,598 4,868,496 4,991,061 5,058,257 5,184,617 Corporate administration 12,530,781 12,751,620 11,303,631 11,637,416 12,006,899 Environmental services 254, , , , ,551 Fire services 16,811,605 15,919,725 16,206,612 16,601,663 17,006,490 Infrastructure maintenance 7,868,556 8,399,331 8,740,830 8,994,781 9,348,189 Legislative and enforcement 5,207,708 5,295,107 5,382,194 5,437,264 5,665,681 Parks, recreation and leisure services 26,074,885 26,494,104 26,866,070 27,195,484 27,673,974 Police services 25,368,647 25,803,369 26,256,157 26,692,667 27,119,134 Public transit 16,021,456 17,077,259 17,744,313 18,203,634 19,098,232 Solid waste 7,694,619 7,670,330 8,114,464 8,363,536 8,633,595 Debt servicing costs 3,260,906 3,190,871 3,822,543 3,862,050 3,948,138 Capital funded from operations 9,504,888 8,552,980 9,588,405 9,169,563 10,318,780 Total General Expenditures 135,910, ,753, ,710, ,916, ,715,835 Net operating activity 9,012,448 13,005,396 15,586,469 17,315,865 17,091,932 Transfers from (to) reserves -2,870,716-5,296,677-6,847,151-7,307,516-7,520,915 Transfers from (to) other funds -4,186,194-4,252,343-4,325,008-4,584,419-4,765,922 Debt principal repayment -3,335,538-3,456,376-4,271,050-4,733,009-4,875,720 Transfer to (from) accum. surplus -1,380, , ,921-70,625 Estimated surplus balance 7,006,135 7,006,135 7,149,395 7,840,316 7,769,691 Tax rate increase indicated 2% 1.91% 3.5% 2% 2% 43

7 BYLAW NO Appendix "1" PAGE 3 SCHEDULE "B" Five-year Financial Plan Water Operating Fund Revenue: Water levies 17,508,271 17,508,271 17,508,271 17,683,371 17,860,171 Water levies from growth , , ,600 Fees, rates and service charges 67,120 67,120 67,120 67,120 67,120 Investment income 1,084,130 1,194, , , ,046 Total Revenue 18,659,521 18,770,212 18,554,300 18,737,902 18,856,937 Expenditures: Water utility operations 8,914,304 9,011,578 9,310,046 9,583,956 9,894,061 Debt servicing costs 1,825,103 1,594,713 1,408,255 1,543,416 1,340,073 Capital funded from operations 3,842,204 2,158,874 1,979,374 3,788,574 4,760,394 Total Water Expenditures 14,581,611 12,765,165 12,697,675 14,915,946 15,994,528 Net operating activity 4,077,910 6,005,047 5,856,625 3,821,956 2,862,409 Transfers from (to) reserves 600, ,000 58, ,279 0 Transfers from (to) other funds -810, , , , ,000 Debt principal repayment -3,841,535-3,930,488-2,517,800-2,629,605-2,831,197 Transfer to (from) accum. surplus 26,608 1,624,687 2,547, , ,788 Estimated surplus balance 4,034,876 5,659,563 8,206,744 8,689,374 7,870,586 Water rate increase indicated 0% 0% 0% 0% 0% 44

8 BYLAW NO Appendix "1" PAGE 4 SCHEDULE "C" Five-year Financial Plan Sewer Operating Fund Revenue: Sewer levies 9,820,921 9,820,921 10,017,339 10,342,942 10,653,229 Sewer levies from growth , , ,400 Fees, rates and service charges 170, , , , ,000 Investment income 328, , , , ,918 Total Revenue 10,319,796 10,321,181 10,645,212 11,005,593 11,360,547 Expenditures: Sewer utility operations 6,753,540 6,717,132 6,942,926 7,149,439 7,384,018 Debt servicing costs 245, , , , ,799 Capital funded from operations 2,856,357 1,584,034 1,524,692 1,485,118 1,498,524 Total sewer expenditures 9,855,362 9,154,713 9,411,528 9,568,463 9,796,341 Net operating activity 464,434 1,166,468 1,233,684 1,437,130 1,564,206 Transfers from (to) reserves 50, , Transfers from (to) other funds , , ,276 Debt principal repayment -554,952-2,021,074-2,140,190-2,165,967-2,163,261 Transfer to (from) accum. surplus -39, ,376 31, , ,221 Estimated surplus balance 6,289,040 6,165,664 6,197,434 6,406,873 6,746,094 Sewer rate increase indicated 5% 0% 2% 2% 2% 45

9 BYLAW NO Appendix "1" PAGE 5 SCHEDULE "D" CAPITAL PLAN General Fund Property Taxes 9,504,888 8,552,980 9,588,405 9,169,563 10,318,780 Water Levies , Sewer Levies , Community Works Fund 2,603,000 3,742,947 1,383,000 1,383,000 1,383,000 Field User Fees 30,000 30,000 30,000 30,000 30,000 Future Capital Reserve 8,419,757 2,842, ,000 36,979 35,000 Gaming Reserve 5,687,827 4,398,204 1,227,565 1,011, ,565 Working Capital 287,919 70, Equipment Reserve 7,595,191 7,457,395 6,132,083 4,057,731 4,635,470 Land Sales 1,477,500 79,500 69,500 69,500 69,500 Local Improvement 75,000 76,500 76,500 76,500 76,500 Parking Reserve 1,589, ,592 90, ,000 - Tax Sale Reserve 2,490, , Parkland Acquisition Reserve 82, DCC Drainage 549, ,446 73, , ,613 DCC Parks 1,416,042 1,020,375 99,990 1,021,202 99,990 DCC Roads 1,728,387 2,880,710 1,636, ,211 8,993,700 Grants 442, , , , ,000 Contractors and Others 1,317, ,281 50,000 30,000 30,000 Five Year Borrowing 1,061, , Solid Waste Reserve 1,579,193 2,417,937 2,300,000 1,800,000 1,200,000 Debt 18,993,362 12,319,238-1,600,000 - Total General Fund 66,931,639 47,951,238 23,397,731 21,654,369 27,797,118 46

10 BYLAW NO Appendix "1" PAGE 6 SCHEDULE "D" (CONTINUED) CAPITAL PLAN Water Fund Water Levies 3,842,204 2,158,874 1,979,374 3,788,574 4,760,394 Community Works Fund 1,799, , Future Capital Reserve 4,521,668 3,331, , , ,306 Local Improvement 40,000 40,000 40,000 40,000 40,000 DCC Water 276, , , , ,156 Contractors and Others 287, Debt 1,411, ,167 8,015, ,000 3,000,000 Total Water Fund 12,178,608 6,566,880 11,360,040 4,669,949 8,610,856 47

11 BYLAW NO Appendix "1" PAGE 7 SCHEDULE "D" (CONTINUED) CAPITAL PLAN Sewer Fund Sewer Levies 2,856,357 1,584,034 1,524,692 1,485,118 1,498,524 Future Capital Reserve 3,057,554 3,587, , Local Improvement 50,000 50,000 50,000 50,000 50,000 DCC Sewer 5,140,470 4,454,075 68, , ,476 Grants 2,878, , Debt 5,779,311 1,106, Total Sewer Fund 19,762,098 11,296,822 1,792,500 1,732,500 2,244,000 48