a. Mayor McKee called the meeting to order at 2:00 pm

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1 City of Revelstoke Special Committee of the Whole Meeting AGENDA March 21, Commencing at 2:00 PM Council Chambers Page 1 CALL TO ORDER a. Mayor McKee called the meeting to order at 2:00 pm 2 ADOPTION OF AGENDA 3 ADOPTION OF MINUTES 3-5 a. Committee of the Whole Minutes - March 9, BUSINESS ARISING FROM THE MINUTES a. Committee of the Whole Minutes - March 9, ANNOUNCEMENTS FROM THE MAYOR 6 DELEGATIONS & PRESENTATIONS - Nil 7 BYLAWS - Nil 8 UNFINISHED BUSINESS 7-21 a. Finance - Budget 9 STAFF REPORTS a. Finance - Draft 5 Year ( ) Financial Plan - Public Consultation Document THAT the draft 2017 Annual Budget ( Five Year Financial Plan) Public Consultation and Information Package be reviewed and that it be considered for publication and the solicitation of comments from the community in conjunction with Five Year Financial Plan Bylaw at the Regular Council meeting to be held on March 28, b. Finance - Roads Paving and Related Long-Term Financial Plan 1. THAT the 2017 budget and related financial plan be adopted without additional roads funding. 2. THAT staff develop a comprehensive and integrated long-term (10 to 15 years) financial plan which takes into account Council s overall strategic Page 1 of 51

2 Page goals and priorities, related departmental work plans, growth, all capital initiatives (renewal and replacement of all of the City s existing assets and infrastructure as well as new capital) and the link between operations and capital. 3. THAT the long-term financial plan be completed over the next few months with staff providing interim progress reports to Council. 4. THAT additional 2017 funding for roads paving be considered once the broader, long-term financial plan picture is clearer c. Engineering-Sani Dump Location Report THAT the report prepared by the Director of Engineering and Development Services, dated March 16, 2017, in respect to the location of the sani-dump be received as information. 10 DEPARTMENTAL UPDATES - verbal 11 CORRESPONDENCE - Nil 12 COMMUNICATIONS - Nil 13 IN CAMERA - Nil 14 CONSIDERATION - Business items to report from In Camera 15 TERMINATION OF MEETING Page 2 of 51

3 AGENDA ITEM #3a. CITY OF REVELSTOKE MINUTES OF THE COMMITTEE OF THE WHOLE MEETING HELD ON THURSDAY, MARCH 9, 2017 IN COUNCIL CHAMBERS COMMENCING AT 2:00 PM Councillors: PRESENT: Mayor M. McKee C. Brothers, T. English, L. Nixon, & A. Orlando ABSENT: S. Duke & G. Sulz Staff: A. Chabot, Chief Administrative Officer C. Floyd, Administrative Assistant T. LeRose, Manager of Legislative Services T. McCabe, Acting Director of Finance M. Thomas, Director of Engineering & Development Services D. Komonoski*, Operations Manager L. Donato, Director of Parks, Recreation & Culture R. Girard, Fire Chief S/Sgt. K. Grabinsk*, RCMP Revelstoke Detachment Others: P. Worden, Reved Quarterly *Attended a portion of the meeting only 1 CALL TO ORDER Mayor McKee called the meeting to order at 2:00 pm. 2 ADOPTION OF AGENDA Moved by Councillor Nixon Seconded by Councillor English THAT the agenda be adopted as presented. CARRIED 3 ADOPTION OF MINUTES a) Special Committee of the Whole Minutes - February 23, 2017 Moved by Councillor Brothers Seconded by Councillor English THAT the Special Committee of the Whole minutes dated February 23, 2017 be Adopted. CARRIED 4 BUSINESS ARISING FROM THE MINUTES Nil 5 ANNOUNCEMENTS FROM THE MAYOR Mayor McKee advised that an exciting day for the Fire hall with the view of the new Engine 2 fire truck at 10:00 am on Friday. He also advised that the Discovery Channel had a production crew in town to film a documentary on CP Rail over the next few weeks. Committee of the Whole Minutes - March 9, 2017 Page 3 of 51

4 AGENDA ITEM #3a. Committee of the Whole Minutes Thursday, March 09, 2017 Page 2 6 DELEGATIONS & PRESENTATIONS - Nil 7 BYLAWS- Nil 8 UNFINISHED BUSINESS a) Finance - Budget Acting Director of Finance, T. McCabe gave a brief update on changes to the budget documents to date. The Committee discussed the increase in employment costs. T. McCabe explained that the rise was related to increases in the CUPE and IAFF contracts as well as adjustments to fringe benefits. T. McCabe explained that the increase in contracted services was mainly due to the addition of one RCMP Officer in 2016 and the addition of another RCMP member for part of Council requested that notations be included in the public document to explain what is included in each of these sections. The Committee reviewed and discussed Appendix E - Capital Initiatives. Ms. McCabe advised that these items were not included in the base budget and adding any of the items would mean adjusting other areas or increasing taxes. NOTE: Councillor Orlando recused himself at 2:22 pm due to a conflict with his position as a board member of the Columbia Valley Skateboard Association. Moved by L. Nixon Seconded by C. Brothers THAT $100,000 over two years be allocated to the Skateboard Park and that the electrical upgrades proceed this year. CARRIED NOTE: Councillor Orlando returned to the meeting at 2:27 pm. Moved by L. Nixon Seconded by Orlando THAT staff prepare a report on best practice tax options with respect to pavement maintenance including a communication plan. CARRIED Moved by Brothers Seconded by Nixon THAT the curb and gutter replacement amount be set at $30,000. CARRIED 9 STAFF REPORTS a) Administration - Indemnification Bylaw 2139 Moved by Councillor Brothers Seconded by Councillor Nixon THAT the Committee of the Whole recommend to Council that Indemnification Bylaw No be read a first, second and third time. CARRIED 10 DEPARTMENTAL UPDATES - Nil 11 CORRESPONDENCE - Nil Committee of the Whole Minutes - March 9, 2017 Page 4 of 51

5 AGENDA ITEM #3a. Committee of the Whole Minutes Thursday, March 09, 2017 Page 3 12 COMMUNICATIONS - Nil 13 IN CAMERA Moved by Councillor Nixon Seconded by Councillor Brothers THAT the meeting resolve to In Camera at 3:31 pm pursuant to Sections 90.1 (f) & (k) and 90.2 (b) of the Community Charter. 90 (1) A part of a council meeting may be closed to the public if the subject matter being considered relates to or is one or more of the following: (f) law enforcement, if the council considers that disclosure could reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; and (k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public. 90 (2) A part of a council meeting must be closed to the public if the subject matter being considered relates to one or more of the following: (b) the consideration of information received and held in confidence relating to negotiations between the municipality and a provincial government or the federal government or both, or between a provincial government or the federal government or both and a third party, CARRIED 14 CONSIDERATION - Business items to report from In Camera - Nil 15 TERMINATION OF MEETING Moved by Councillor Nixon Seconded by Councillor English THAT the meeting end at 4:42 pm. CARRIED Director of Corporate Administration Mayor Certified a true copy this day of,. Committee of the Whole Minutes - March 9, 2017 Page 5 of 51

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7 Finance - Budget Page 7 of 51 CITY OF REVELSTOKE FINANCIAL PLAN GENERAL OPERATING FUND BY COST TYPE Appendix A - Summary of Variances Between 2017 Draft Budget and the 2016 Budget Variance between & 2017 Budgets Explanation of Major Variances Budget Budget $ % REVENUES: Property taxes $ 10,249,698 $ 10,849, , % includes $144,419 in additional property taxes from the non market changes for 2017 PILTs, GILTs & 1% utility tax 3,278,450 3,271,000 (7,450) 0.23% Cost sharing 603, ,693 8, % Sale of services 2,502,310 2,615, , % Increased to more accurately reflect revenues realized at the aquatic centre Permits & fees 232, ,300 (2,500) 1.07% Investment revenue 566, ,000 (60,000) 10.60% Reduction in RCMP rent (no longer collecting a payment in lieu of taxes) Unconditional grants 600, ,000 (50,000) 8.33% Reduction reflects the actual amounts received in recent years Conditional grants 2,165,000 2,150,000 (15,000) 0.69% Other revenue 138, ,000 2, % 20,335,483 20,923, , % EXPENSES: 1 Employment costs 6,942,400 7,635, , % Increases to reflect actual benefit costs and correct wage increases per the union contracts 2 Travel and meeting expenses 33,500 38,054 4, % 3 Telephone 52,200 54,550 2, % 4 Advertising 69,450 70, % 5 Licences and insurance 218, ,496 22, % Reflects a reallocation of budgeted costs from the miscellaneous category 6 Memberships & conferences 140, ,500 27, % Increased training requirements for WorkSafeBC and other required certifications 7 Contracted services 3,296,845 3,434, , % Increases reflect committed increases to contracted amounts 8 Office supplies 47,900 47,700 (200) 0.42% 9 Utilities 807, ,650 16, % 10 Miscellaneous 2,013,220 2,062,720 49, % Reflects reallocation of Street Fest budget 11 Freight, courier & postage 29,300 29, % 12 Legal & professional 128, ,000 20, % 13 Maintenance of buildings & equipment 407, ,900 61, % Increases in janitorial contracts 14 Materials & supplies 420, ,600 13, % 15 Equipment rental (internal & external) 737, ,600 3, % 16 Grants in aid 81,500 82,500 1, % 17 Vehicle maintenance & fuel 452, ,750 20, % 30 Non TCA expenditures 1,484,660 1,194,649 (290,011) 19.53% Amortization of capital assets 1,200,000 1,200, % 18 Debt interest payment 440, ,564 2, % 19,004,464 19,791, , % SURPLUS/(DEFICIT) FOR THE YEAR 1,331,019 1,131,772 (199,248) 1.3% Transfer from equity 1,200,000 1,200, % Transfer from capital reserves 855, ,649 (161,011) 18.8% These transfers are for non TCA expenditures funded out of reserves, which have decreased Debt principal repayment (357,493) (357,493) 0.0% Capital out of revenue (300,000) (358,500) Transfer to reserves (2,403,000) (2,199,500) 203, % Adjustments to transfers to reserves for projected future capital expenditures NET SURPLUS/(DEFICIT) $ 326,186 $ 110,927 $ (114,270) 66.0% ASSUMPTIONS 1 Overall inflation at 2.5% annually 2 CUPE wage increases at 1.7% annually 3 IAFF wage increases at 2.5% annually 4 Growth in property taxes from new construction at 3% annually, starting in 2018 AGENDA ITEM #8a.

8 Finance - Budget Page 8 of 51 CITY OF REVELSTOKE FINANCIAL PLAN GENERAL OPERATING FUND BY DEPARTMENT Appendix A - Summary of Variances Between 2017 Draft Budget and the 2016 Budget Variance between & 2017 Budgets Explanation of Major Variances Budget Budget $ % REVENUES: Property taxes $ 10,249,698 $ 10,849,386 $ 599, % includes $144,419 in additional property taxes from the non market changes for 2017 PILTs, GILTs & 1% utility tax 3,278,450 3,271,000 (7,450) 0.23% Cost sharing 603, ,693 8, % Sale of services 2,502,310 2,615, , % increased visitation and revenues at the aquatic centre Permits & fees 232, ,300 (2,500) 1.07% Investment revenue 566, ,000 (60,000) 10.60% Decrease in RCMP rent (PILT removal) Unconditional grants 600, ,000 (50,000) 8.33% This reduction in the budget reflects the actual amounts received over the last few years Conditional grants 2,165,000 2,150,000 (15,000) 0.69% Other revenue 138, ,000 2, % 20,335,483 20,923, , % EXPENSES: General government 2,327,060 2,307,299 (19,761) 0.85% Adjustment to reflect approved increase in staff hours Fire protection 1,395,545 1,727, , % IAFF wage increase now reflected in the budget Provincial Emergency Program 92,000 92, % Development services 714, ,200 (70,000) 9.80% reduction in non TCA capital projects as well as shift of wage costs to other departments Bylaw and animal control 150, ,300 24, % Adjustment to budget to reflect actual contract costs RCMP 2,164,350 2,297, , % Adjustment to wage costs to reflect costs per "E" Division & 13th member (3mths in 2017) Public Works 4,525,360 4,821, , % Adjustments to fringe benefit costs, some shift of wage costs from other depts & line painting Transit 369, ,300 6, % Janitorial costs for bus shelters reallocated to here Garbage 397, ,000 (10,500) 2.64% Cemetery 138, ,250 (20,950) 15.16% Adjustment reflects a shift of wage costs to other departments Community economic development 2,005,250 1,975,000 (30,250) 1.51% Parks, recreation & culture 3,085,885 3,230, , % Amortization 1,200,000 1,200, % Debt interest payment 440, ,564 2, % 19,004,464 19,791, , % SURPLUS/(DEFICIT) FOR THE YEAR 1,331,019 1,131,772 (199,248) #REF! Transfer from equity 1,200,000 1,200, % Transfer from capital reserves 855, ,649 (161,011) 18.8% These transfers are for non TCA expenditures funded out of reserves, which have decreased Debt principal repayment (357,493) (357,493) 0.0% Capital out of revenue (300,000) (358,500) (58,500) 19.5% This is for non TCA expenditures funded out of revenue, which have decreased Transfer to reserves (2,403,000) (2,199,500) 203, % Adjustments to transfers to reserves for projected future capital expenditures NET SURPLUS/(DEFICIT) $ 26,186 $ 110,927 $ (215,259) 323.6% ASSUMPTIONS 1 Overall inflation at 2.5% annually 2 CUPE wage increases at 1.7% annually 3 IAFF wage increases at 2.5% annually 4 Growth in property taxes from new construction at 3% annually, starting in 2018 AGENDA ITEM #8a.

9 Appendix B Draft Operating Budget AGENDA ITEM #8a. CITY OF REVELSTOKE FINANCIAL PLAN GENERAL OPERATING FUND BY COST TYPE Budget Budget Budget Budget Budget REVENUES: Property taxes $ 10,849,386 $ 11,717,337 $ 12,654,724 $ 13,667,102 $ 14,760,470 PILTs, GILTs & 1% utility tax 3,271,000 3,271,000 3,271,000 3,271,000 3,271,000 Cost sharing 611, , , , ,214 Sale of services 2,615,275 2,630,219 2,643,800 2,663,024 2,670,892 Permits & fees 230, , , , ,300 Investment revenue 506, , , , ,000 Unconditional grants 550, , , , ,000 Conditional grants 2,150,000 1,506,000 1,506,500 1,507,000 1,507,500 Other revenue 140, , , , ,000 20,923,654 21,129,667 22,054,496 23,154,471 24,160,376 EXPENSES: 1 Employment costs 7,635,400 7,772,450 7,904,150 8,062,750 8,225,550 2 Travel and meeting expenses 38,054 39,554 37,500 40,000 40,000 3 Telephone 54,550 55,750 56,825 58,275 59,350 4 Advertising 70,050 74,150 68,500 68,650 69,200 5 Licences and insurance 241, , , , ,492 6 Memberships & conferences 167, , , , ,000 7 Contracted services 3,434,300 3,615,800 3,612,900 3,625,567 3,669,567 8 Office supplies 47,700 48,550 49,000 49,900 50,150 9 Utilities 824, , , , , Miscellaneous 2,062,720 1,466,320 1,494,420 1,484,520 1,489, Freight, courier & postage 29,900 30,500 31,200 32,800 32, Legal & professional 149, , , , , Maintenance of buildings & equipment 468, , , , , Materials & supplies 434, , , , , Equipment rental (internal & external) 740, , , , , Grants in aid 82,500 82,875 83,269 83,682 84, Vehicle maintenance & fuel 472, , , , , Non TCA expenditures 1,194,649 1,276, , , ,349 Amortization of capital assets 1,200,000 1,200,000 1,200,000 1,200,000 1,200, Debt interest payment 442, , , , ,563 19,791,883 19,629,833 19,314,873 19,577,912 19,732,632 SURPLUS/(DEFICIT) FOR THE YEAR 1,131,772 1,499,834 2,739,623 3,576,558 4,427,743 Transfer from equity 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Transfer from capital reserves 694, , , , ,849 Debt principal repayment (357,493) (357,493) (357,493) (357,493) (333,460) Capital out of revenue (358,500) (685,000) (1,595,000) (1,805,000) (2,015,000) Transfer to reserves (2,199,500) (2,024,500) (2,014,500) (2,299,500) (2,509,500) NET SURPLUS/(DEFICIT) $ 110,927 $ 378,514 $ 262,445 $ 671,746 $ 929,633 ASSUMPTIONS 1 Overall inflation at 2.5% annually 2 CUPE wage increases at 1.7% annually 3 IAFF wage increases at 2.5% annually 4 Growth in property taxes from new construction at 3% annually, starting in 2018 Finance - Budget Page 9 of 51

10 Appendix B Draft Operating Budget AGENDA ITEM #8a. CITY OF REVELSTOKE FINANCIAL PLAN GENERAL OPERATING FUND BY DEPARTMENT Budget Budget Budget Budget Budget REVENUES: Property taxes $ 10,849,386 $ 11,717,337 $ 12,654,724 $ 13,667,102 $ 14,760,470 PILTs, GILTs & 1% utility tax 3,271,000 3,271,000 3,271,000 3,271,000 3,271,000 Cost sharing 611, , , , ,214 Sale of services 2,615,275 2,630,219 2,643,800 2,663,024 2,670,892 Permits & fees 230, , , , ,300 Investment revenue 506, , , , ,000 Unconditional grants 550, , , , ,000 Conditional grants 2,150,000 1,506,000 1,506,500 1,507,000 1,507,500 Other revenue 140, , , , ,000 20,923,654 21,129,667 22,054,496 23,154,471 24,160,376 EXPENSES: General government 2,307,299 2,204,774 2,207,348 2,270,230 2,273,251 Fire protection 1,727,400 1,780,825 1,734,821 1,760,992 1,797,642 Provincial Emergency Program 92,000 92,000 92,000 92,000 92,000 Development services 644, , , , ,640 Bylaw and animal control 174, , , , ,408 RCMP 2,297,800 2,446,425 2,468,311 2,520,828 2,531,247 Public Works 4,821,760 4,812,010 4,850,773 4,984,861 5,062,938 Transit 375, , , , ,608 Garbage 387, , , , ,517 Cemetery 117, , , , ,389 Community economic development 1,975,000 1,377,975 1,354,974 1,331,497 1,334,547 Parks, recreation & culture 3,230,010 3,456,185 3,206,791 3,245,488 3,181,884 Amortization 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Debt interest payment 442, , , , ,563 19,791,883 19,629,833 19,314,873 19,577,912 19,732,632 SURPLUS/(DEFICIT) FOR THE YEAR 1,131,772 1,499,834 2,739,623 3,576,558 4,427,743 Transfer from equity 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Transfer from capital reserves 694, , , , ,849 Debt principal repayment (357,493) (357,493) (357,493) (357,493) (333,460) Capital out of revenue (358,500) (685,000) (1,595,000) (1,805,000) (2,015,000) Transfer to reserves (2,199,500) (2,024,500) (2,014,500) (2,299,500) (2,509,500) NET SURPLUS/(DEFICIT) $ 110,927 $ 378,514 $ 262,445 $ 671,746 $ 929,633 ASSUMPTIONS 1 Overall inflation at 2.5% annually 2 CUPE wage increases at 1.7% annually 3 IAFF wage increases at 2.5% annually 4 Growth in property taxes from new construction at 3% annually, starting in 2018 Finance - Budget Page 10 of 51

11 Finance - Budget Page 11 of 51 Appendix C Capital Budget CITY OF REVELSTOKE FINANCIAL PLAN CAPITAL SUMMARY TANGIBLE CAPITAL ASSETS NON TANGIBLE CAPITAL ASSETS GENERAL FUND Expenditures: General Government 64,000 8,000 15,000 56, , , , , ,349 Fire 223, , , , ,600 79,100 75,000 10,000 PEP 20,000 20,000 20,000 20,000 20,000 Development Services 75,000 21, ,000 58,000 6,000 Bylaw & Animal Control 7,500 RCMP & Court House 58,000 49,500 7,000 6,000 60,500 66,900 17,000 37,000 Land 150, , , , ,000 Public Works 1,774,200 1,143,700 2,013,700 4,193,500 2,398, , , , , ,000 Cemetery 4,500 15,000 12,500 CED 28,000 28,000 2,500 Recreation 841, , , ,000 7,445, , , , ,500 31,000 3,162,700 2,022,700 2,946,300 4,774,600 10,167,100 1,194,649 1,276, , , ,349 Funding: Revenue 358, ,000 1,595,000 1,805,000 2,015, , , , , ,000 Building reserve 25,000 65,000 70,500 33,000 17,000 52,000 18,500 Fire reserve 223, , , , ,600 79,100 75,000 10,000 Equipment reserve 454, , , , , , , , , ,349 Land reserve 150, , , , ,000 Cemetery reserve 4,500 15,000 12,500 RCMP reserve 38,000 49,500 7,000 6,000 34,000 46,400 20,000 Recreation reserve 371, , , , , , , , ,500 31,000 Grants 870,000 20,000 20,000 20,000 20,000 35,000 Gas tax 28,000 28,000 2,500 90,000 81,000 81,500 82,000 82,500 DCC's 640,000 40,000 2,000,000 Debt 7,000,000 3,162,700 2,022,700 2,946,300 4,774,600 10,167,100 1,194,649 1,276, , , ,349 UTILITY FUNDS Expenditures: Water 2,264,000 1,168,121 2,307, ,500 2,734, , ,000 51, , ,000 BEWW 1,950,000 1,950,000 1,950,000 Sewer 1,690, ,000 11,470,000 12,540,000 1,070, ,000 92,000 94,750 94,500 95,000 5,904,000 3,328,121 15,727,250 13,413,500 3,804, , , , , ,000 Funding: Water reserve 844, , , , , , ,500 25, ,000 86,000 BEWW reserve Sewer reserve 1,090, , ,000 1,040,000 1,070,000 91,000 66,500 69,250 68,500 69,000 Grants 2,224,000 1,986,621 3,920,250 Gas tax 20,000 20,000 20,000 20,000 20,000 DCC's 116,000 10,000,000 10,500,000 2,000,000 50,000 51,000 51,000 52,000 52,000 Debt 1,610, , ,000 1,500,000 5,904,000 3,328,121 15,727,250 13,413,500 3,804, , , , , ,000 AGENDA ITEM #8a.

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13 AGENDA ITEM #8a. Appendix F - Estimated Increases in Property Taxes and Utility Charges RESIDENTIAL CLASS PROPERTY Estimated 2017 Tax Rates Estimated 2017 Tax Notice 2016 Tax Rates 2016 Tax Notice Increase (Decrease) in Dollars Increase (Decrease) Percentage Average Property Assessment in 2017 $271,591 Average Property Assessment in 2016 $250,818 For Residential Properties Connected to Water & Sewer Municipal Property Taxes General , , % Debt % Municipal Property Taxes 1, , % Municipal Utilities Water % Sewer % Garbage % Municipal Utilities % Total Property Taxes & Utility Charges $2, $1, $ % Finance - Budget Page 13 of 51 N:\Users\Tania\Budgets\2017\2017 Tax Explanation 2/6/2017 9:42 AM

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15 Finance - Budget Page 15 of 51 Appendix G - Projected Reserve Levels CITY OF REVELSTOKE FINANCIAL PLAN RESERVE FUNDS Electric Building Cemetery Fire Recreation Equipment Parkland RCMP Land Sale Community Liability Snow Taxation Public Gas Water BEWW Sewer Total Utility Building Ctr Operating Removal Equalization Art Tax 2016 Balance fwd projected 1,100, , ,925 87, , , ,695 53,174 1,421, , , , , ,244, ,733 7,304, From general operating 110,000 25, , , ,000 75,000 50, ,000 1,992,000 To general operating (50,000) (95,500) (19,500) (302,100) (582,500) (739,249) (72,000) (150,000) (5,000) (231,000) (2,246,849) From garbage collection 0 Interfund transfer (25,923) 25,923 0 Interfund transfer 0 Land sales 100, ,000 From water operating 50, , ,000 From sewer operating 50, , ,000 Risk to roll transfer 200, ,000 To water capital (957,500) (957,500) To sewer capital (1,181,000) (1,181,000) Other transfers to reserve 7,500 7,500 Interest earnings 50,000 1,395 2, ,935 2,426 7, ,877 5,000 4,985 8,293 18,099 23, , , Balance forward 1,100, , ,984 86, , , ,012 57,075 1,433, , , , ,059 7, , , ,476 6,645, From general operating 200,000 25, , , ,000 50,000 25, ,000 2,017,000 To general operating (50,000) (98,000) (12,500) (399,500) (698,000) (541,474) (95,900) (150,000) (5,000) (222,000) (2,272,374) Interfund transfer (25,923) 25,923 0 Land sales 100, ,000 From water operating 50, ,000 50, ,000 From sewer operating 50, , ,000 To water operating (603,000) (603,000) To sewer operating (276,500) (276,500) Other transfers to reserve 7,500 7,500 Interest earnings 50,000 6,954 3,206 1,232 2,351 4,700 7, ,543 5,000 5,109 9,438 20,601 20, , , Balance forward 1,100, , ,690 13,278 9, , ,513 12,029 1,445, , , , ,660 15, , ,925 50, ,957 7,005, From general operating 200,000 25, , , ,000 40, ,000 2,007,000 To general operating (50,000) (17,000) 0 (213,600) (575,500) (655,515) (7,000) (150,000) (5,000) (197,000) (1,870,615) Land sales 100, ,000 From water operating 50, ,000 50, ,000 From sewer operating 50, , ,000 To water operating (942,500) (942,500) To sewer operating (289,250) (289,250) Other transfers to reserve 7,500 7,500 Interest earnings 50,000 10,691 3,755 1, ,855 7, ,506 5,000 5,237 9,986 21,117 16,417 1,891 19, , Balance forward 1,100, , , ,090 34, , ,201 45,742 1,430, , , , ,777 22, , , , ,690 7,562, From general operating 200, , , ,000 50, ,000 2,292,000 To general operating (50,000) (52,000) 0 (168,600) (292,500) (617,681) (26,000) (150,000) (5,000) (195,000) (1,556,781) Land sales 100, ,000 From water operating 50, ,000 50, ,000 From sewer operating 50, , ,000 To water operating (479,500) (479,500) To sewer operating (1,108,500) (1,108,500) Other transfers to reserve 7,500 7,500 Interest earnings 50,000 15,095 4,161 4,795 5,330 6,562 7,880 1,444 35,144 5,000 5,368 10,236 21,644 15,302 3,188 18, , Balance forward 1,100, , , , , , ,081 71,185 1,415, , , , ,421 30, , , , ,826 8,526, From general operating 200, , , ,000 60, ,000 2,502,000 To general operating (50,000) (18,500) 0 (153,600) (456,000) (513,849) 0 (150,000) (5,000) (195,500) (1,542,449) Land sales 100, ,000 From water operating 50, ,000 50, ,000 From sewer operating 50, , ,000 To water operating (800,000) (800,000) To sewer operating (1,139,000) (1,139,000) Other transfers to reserve 7,500 7,500 Interest earnings 50,000 19,592 4,265 9,637 13,607 13,832 8,077 2,530 34,772 5,000 5,502 10,492 22,186 17,191 4,518 7, , Balance forward 1,100, , , , , , , ,715 1,400, , , , ,607 37, , , ,221 53,084 9,383,317 AGENDA ITEM #8a.

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17 Appendix H - Projected Long Term Debt AGENDA ITEM #8a. CITY OF REVELSTOKE FINANCIAL PLAN LONG TERM DEBT SCHEDULE General Balance b/fwd 9,541,723 8,994,089 8,422,546 7,826,038 7,203,463 Debt contracted 7,000,000 Arena roof Principal repayment (357,493) (357,493) (357,493) (357,493) (333,460) Actuarial adjustment (190,140) (214,050) (239,014) (265,082) (259,676) Balance c/fwd 8,994,089 8,422,546 7,826,038 7,203,463 13,610,327 Water Balance b/fwd 2,346,943 2,562,358 2,252,795 1,929,187 1,590,892 Debt contracted 500,000 Thomas Brook Principal repayment (152,085) (164,091) (164,091) (164,091) (164,091) Actuarial adjustment (132,499) (145,472) (159,517) (174,203) (41,056) Balance c/fwd 2,562,358 2,252,795 1,929,187 1,590,892 1,385,744 BEWW Balance b/fwd 1,950,000 1,884,516 1,816,412 1,745,584 Debt contracted 1,950,000 BEWW Principal repayment (65,484) (65,484) (65,484) (65,484) Actuarial adjustment (2,619) (5,344) (8,177) Balance c/fwd 1,950,000 1,884,516 1,816,412 1,745,584 1,671,923 Sewer Balance b/fwd 3,366,248 3,685,932 3,528,959 3,365,706 4,695,923 Debt contracted 460,000 1,500,000 Thomas Brook, Downie Principal repayment (111,246) (122,291) (122,291) (122,291) (122,291) Actuarial adjustment (29,070) (34,683) (40,962) (47,492) (54,283) Balance c/fwd 3,685,932 3,528,959 3,365,706 4,695,923 4,519,349 Total 17,192,380 16,088,816 14,937,342 15,235,862 21,187,343 Finance - Budget Page 17 of 51

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19 Finance - Budget Page 19 of 51 General Operating yr Avg Contracted Services Budget Actual Budget Budget Budget Budget Budget Budget Blue #'s are offset by equivalent revenues Mayor and Council 26,000 21,698 19,276 26,000 27,000 27,000 27,000 27,000 27,000 City property City Hall maintenance 5,250 5,957 5,742 5,250 5,750 5,750 5,750 5,750 5,750 Elections & Referendums 4,488 15,000 28,000 Labour management 2,500 5,800 5,120 2,500 2,500 2,500 2,500 2,500 2,500 Fire Department Administration Fire Fighting force 30,000 32,007 28,978 38,695 37,000 62,000 37,000 37,000 37,000 Fire station 3,135 2,121 Fire training centre 10,000 10,000 10,000 10,000 10,000 PEP 3,600 5,122 13,281 3,600 3,600 3,600 3,600 3,600 3,600 Emergency Programme Coordinator 65,000 20,000 21,638 65,000 24,000 24,000 24,000 24,000 24,000 Planning 15, ,297 20,000 25,000 25,000 25,000 25,000 25,000 Animal & Pest control 110, , , , , , , , ,000 Police station 32,000 1,741 18,771 32,000 4,000 4,000 4,000 4,000 4,000 RCMP 1,405,000 1,066,149 1,244,431 1,520,000 1,639,500 1,775,000 1,840,000 1,866,000 1,905,000 Victim Services 55,000 44,689 51,813 56,000 65,000 65,000 65,000 65,000 65,000 Court House 42,800 34,998 35,661 43,800 43,800 44,800 44,800 45,467 45,467 Public Works administration Engineering services 7,000 23,439 20,341 7,000 7,500 7,500 7,500 8,000 8,000 Equipment maintenance 12,750 21,779 15,890 28,250 28,250 28,250 28,250 28,250 28,250 Municipal yards & buildings 27,000 35,524 32,048 27,000 27,500 27,500 27,500 28,500 28,500 Street maintenance 86,000 79,532 72,781 86, , , , , ,000 Sidewalk maintenance 5,000 3,556 3,823 5,000 5,000 5,000 5,000 5,000 5,000 Storm Sewer maintenance 4,000 5,089 3,400 4,000 4,000 4,000 4,000 4,000 4,000 Snow removal 335, , , , , , , , ,000 Custom work 1,050 3,226 16,871 1,050 1,100 1,100 1,100 1,100 1,100 Street lighting 16,000 18,855 14,639 16,000 16,000 16,000 16,000 16,000 16,000 Traffic services 3,500 5,525 3,731 3,500 3,500 3,500 3,500 3,500 3,500 Railway Crossing maintenance 12,000 7,710 9,479 12,000 12,000 12,000 12,000 12,000 12,000 Bridge maintenance 15,000 6,856 4,103 15,000 15,000 15,000 15,000 15,000 15,000 Transit 366, , , , , , , , ,500 AGENDA ITEM #8a.

20 Finance - Budget Page 20 of 51 General Operating yr Avg Contracted Services Budget Actual Budget Budget Budget Budget Budget Budget Blue #'s are offset by equivalent revenues Garbage collection 2,750 5,854 79,069 2,750 3,000 3,000 3,000 3,000 3,000 Garbage bins 15,000 8,993 7,647 15,000 15,000 15,000 15,000 15,000 15,000 Cemetery 1, ,000 1,000 1,000 1,000 1,000 1,000 Tourism & Public Relations 142, , , ,000 92,000 92,000 92,000 92,000 92,000 Ski Hill 25,000 1,601 25,000 25,000 25,000 25,000 25,000 25,000 Revit/Cemetery benches Economic Development 32,000 24,660 25,914 32,000 32,000 32,000 34,000 34,000 34,000 Social Development 53,000 56,199 52,357 53,000 60,000 60,000 60,000 60,000 60,000 Youth Programs 42,000 42,000 22,000 Recreation administration 2, ,500 2,500 2,000 2,000 2,500 2,500 Community centre 11,000 9,825 9,579 11,500 11,500 11,500 11,500 11,500 11,500 Community Centre snow removal 15,000 2,304 6,217 15,000 17,000 17,000 17,000 17,000 17,000 Aquatic centre 1,800 1,374 1,857 1,800 11,800 11,800 12,400 12,400 12,400 Arena 17,000 18,811 14,676 17,000 18,000 18,000 18,000 18,000 18,000 Arena snow removal 40,000 18,450 22,464 40,000 40,000 40,000 40,000 40,000 40,000 Williamson's Lake 2,750 1,394 1,343 2,750 5,000 5,000 5,000 5,000 5,000 Boulevard maintenance 4,000 2,593 2,158 4,000 4,000 4,000 4,000 4,000 4,000 Revit maintenance 11,000 11,676 8,719 11,500 Parks general 29,000 19,660 22,625 29,000 23,000 23,000 23,000 23,000 23,000 Columbia View Park 1, Museum 6,000 7,394 6,266 8,000 8,000 8,000 8,000 8,000 8,000 Trails & Walkways 7,500 1,948 2,712 7,500 9,000 9,000 9,000 9,000 9,000 TOTAL 3,102,250 2,579,208 2,832,598 3,296,845 3,434,300 3,615,800 3,612,900 3,625,567 3,669,567 AGENDA ITEM #8a.

21 Finance - Budget Page 21 of 51 General Operating Miscellaneous Expenses yr Avg Blue #'s are offset by equivalent revenues Budget Actual Budget Budget Budget Budget Budget Budget Administration Charges 61,500 61,500 60,767 61,500 61,500 61,500 61,500 61,500 61,500 Air Monitoring Equipment 5,000 1,434 Auxiliary police 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Bad Debt expense 100 4,697 1, Carbon offset purchase 29,410 29,410 29,410 29,410 29,410 29,410 29,410 29,410 29,410 Cash over short Columbia Basin Trust 10,000 6,768 7, , , , , , ,500 Contingency 20,000 17,337 6,092 20,000 20,000 20,000 20,000 20,000 20,000 Crimestoppers 1, ,000 1,000 1,000 1,000 1,000 1,000 EDC Tourism Marketing Funded 410, , , , , , , , ,000 Grants in aid 25,000 18,044 15,811 25,000 25,000 25,000 25,000 25,000 25,000 Internet 18,000 16,050 9,630 19,500 18,000 18,000 18,000 18,000 18,000 Leadership & Comm. Dev. 2, ,000 2,000 2,000 2,000 2,000 2,000 Leases 9,000 5,624 4,848 5,000 5,000 5,000 5,000 5,000 5,000 Program Costs 633, , , , , , , , ,000 Program supplies and equipment 12,000 4,267 6,307 10,000 12,000 12,000 12,000 12,000 12,000 Programming services 3,500 2,408 6,082 3,500 3,500 3,500 3,500 3,500 3,500 Received from SD19 for election costs (17,500) (23,000) Rental of buildings 2,000 SOCAN 1, ,224 1,500 1,500 1,500 1,500 1,500 1,500 Software support 97,000 82,281 72, , , , , , ,000 Special Events 7,000 5,548 5,610 7,000 15,000 7,000 7,000 7,000 7,000 Special Presentations 10,000 8,394 9,379 10,000 10,000 10,000 10,000 10,000 10,000 Summer Programs 10,000 6,854 3,716 10,000 10,000 10,000 10,000 10,000 10,000 Taxes city property 3,063 4,171 3,200 3,300 3,400 3,500 3,600 Tipping Fees 85,000 78,351 77,318 85,000 85,000 85,000 85,000 85,000 85,000 Training Supplies 8,000 3,577 6,050 13,200 9,500 9,500 9,500 9,500 9,500 Uniform Maintenance 28,000 17,353 20,058 28,000 28,000 28,000 30,000 30,000 30,000 TOTAL 1,490,020 1,789,288 1,723,381 2,013,220 2,062,720 1,466,320 1,494,420 1,484,520 1,489,620 AGENDA ITEM #8a.

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23 City of Revelstoke Committee of the Whole Report AGENDA ITEM #9a. File No.: To: Members of the Committee of the Whole From: Tania McCabe, CPA, CA, Director of Finance (Acting) Date: March Subject: Draft 5-Year ( ) Financial Plan Public Consultation Document RECOMMENDATION: THAT the draft 2017 Annual Budget ( Five Year Financial Plan) Public Consultation and Information Package be reviewed and that it be considered for publication and the solicitation of comments from the community in conjunction with Five Year Financial Plan Bylaw at the Regular Council meeting to be held on March 28, CAO Comments: Approved for Council consideration. AC Background: Council must adopt the Five Year Financial Plan Bylaw on or before May 15, 2017 (Section 165, Community Charter). Council must also include a process that allows for a public consultation period to receive input from the public regarding the Plan prior to its adoption. (Section 166, Community Charter). The draft public consultation document is being presented today for Council consideration and discussion and will be distributed to the public after consideration of First and Second readings of the Five Year Financial Plan Bylaw, scheduled for the Regular Council Meeting on March 28 th, Options / Discussion The Committee of the Whole has reviewed the draft financial plan during its three previous meetings. During these meetings, the Committee has provided advice and guidance to staff. Staff incorporated that guidance into the draft budget. Staff created a public consultation and information document for the financial plan that outlines the key components of the Financial Plan including: Base budget numbers; Council approved changes ; Annual tax and fee increases; Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 23 of 51

24 City of Revelstoke Committee of the Whole Report AGENDA ITEM #9a. Impacts on utility rates; Long term outlook This document is attached for Council consideration and if changes to the Financial Plan are directed by Council the draft document will be amended as required to illustrate the effect of those changes. The document will be will then be available to the public for comment online and at City Hall. Public comment respecting the Financial Plan will be solicited through advertisements in the Revelstoke Review and notice will be provided via the City s website and Facebook account. Financial / Risk Implications: Financial implications are discussed in the attached report. Others Consulted: Ken Bjorgaard, Consultant Attachments: 2017 Proposed Annual Budget ( Five Year Financial Plan) Public Consultation and Information Package Respectfully submitted, Tania McCabe, CPA, CA Director of Finance (Acting) Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 24 of 51

25 AGENDA ITEM #9a Proposed Annual Budget ( Five-Year Financial Plan) Public Consultation and Information Package We Want Your Opinion! Building the Annual Budget Impacts of the Proposed 2017 Budget The Numbers What Is Planned for 2017 The Longer Term Outlook ( ) Proposed Bylaw Number XXXX: Five Year Financial Plan Community Charter s.166: A council must undertake a process of public consultation regarding the proposed financial plan before it is adopted. Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 25 of 51

26 AGENDA ITEM #9a. We Want Your Opinion! We would like to inform you about our proposed 2017 annual budget and related five-year financial plan. The rest of this package provides a summary of both, along with more detail about what is involved in building the budget and five-year financial plan. It is important information for you to consider and understand as it has a direct impact on you, as a resident of Revelstoke. Council gave first and second readings to the Annual Budget (Five Year Financial Plan Bylaw) on March 28 th, Now is your opportunity to give us feedback before Council finalizes the budget and related financial plan.. The deadline for public input on the budget is 4:00pm, April 13 th, This deadline allows time for Council to consider and discuss all comments prior to adopting the final budget. Getting the Information This Budget Book is available: In print at City Hall On our website at On our Facebook page City of Revelstoke How to Give Us Your Opinion us at finance@revelstoke.ca. Please put 2017 Budget in the subject line of your . Come to the Committee of the Whole meeting at 2:00pm, on Thursday, April 13 th, 2017, where time will be set aside for any member of the public wishing to speak to Council on the proposed budget and financial plan. Write to us at City Hall, Box 170, Revelstoke, BC V0E 2S0 We look forward to hearing from you! Sincerely yours, Mayor Mark McKee Councillor Constance Brothers Councillor Scott Duke Councillor Trevor English Councillor Linda Nixon Councillor Aaron Orlando Councillor Gary Sulz Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 26 of 51 2 P a g e

27 AGENDA ITEM #9a. About the 5 Year Financial Plan Every year, as per the Community Charter, local governments in BC must prepare and adopt a 5 Year Financial Plan (Plan) in the form of a bylaw (a legally binding document) which covers the current year and the next 4 successive years. The Plan must be adopted before May 15th of each year. The Plan contains both operating and capital expenditures, including where we intend to get the money to pay for important community services and programs. Each year, approximately half of the money needed, to provide and maintain services, comes from property taxes. There are also several other revenue sources which we depend upon, including government grants and transfers, sale of services (such as permits, licenses, recreation facility admissions), developer contributions, and earnings on investments. The Plan identifies proposed spending, funding sources and transfers from and to City reserves. It also establishes the City s revenue and tax policies and objectives. Before adopting the Plan, Council must undertake a public consultation process. The Plan s focus is on 2017 (Annual Budget), however it also outlines the City s longer term financial direction to The budget and five year financial plan provides for two types of expenditures: Operating- costs associated with the delivery of programs and services (e.g. recreation, garbage, snow removal, water & sewer) and annual maintenance and upkeep costs related to of the City s infrastructure and facilities Capital costs to replace and rehabilitate existing infrastructure (e.g. roads & sidewalks, water, sewer and equipment fleet) and the cost to build new infrastructure and facilities Building the Annual Budget The Budget Steps: 1. Council and staff assess the needs of the City and the community against current corporate Strategic Priorities and other expectations. This sets an overall direction for projects, levels of service, and staff resources. 2. Based on the above, managers provide operational service levels and capital projects for their respective departments to the Director of Finance (DoF). 3. The Chief Administrative Officer (CAO), DoF and the managers review and prioritize the service levels and projects. The Committee of the Whole, made up of all Council members, considers the requests and service levels and determines what will be included in the draft budget/financial plan. 4. The draft Five-Year Financial Plan package and related draft bylaw are prepared for Council. Council then gives the bylaw first, second and third readings. Before final adoption, the Plan (included in the bylaw) is released to the public for comment or feedback. The Bylaw/Plan passed first and second readings on March 25 th, A consultation period occurs (now) in which public input is encouraged and welcomed. See the back page of this package for your opportunities to provide feedback. A summary of public input will be presented to the Committee of the Whole after the consultation period and revisions to the Bylaw/Plan could be made prior to final adoption. Final adoption must take place before May 15 th, P a g e Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 27 of 51

28 AGENDA ITEM #9a. Impacts of the 2017 Proposed Annual Budget The proposed annual budget for this year includes a 5% general taxation increase as well as a 2.5% increase in water rates, a 5.9% increase in sewer rates and a 1.8% increase in the rates for garbage service. The water, sewer & garbage rates were included in the Fees & Charges Bylaw approved by Council on December 6, Council has been sensitive to property tax increases for many years, by keeping them as low as possible. Council has also been working to reduce the tax burden on the non-residential classes since The average annual tax increase since 2010 has been 3% for residential properties and 0.65% for non-residential properties (excludes Class 2 Utilities increases which are regulated by the Province). We have also made great steps in reducing energy consumption, improving our services and consolidating our staff resources. At the same time, the City has to deal with the increased inflationary costs required to maintain services, with which we are all familiar. Because the cost of living increases over time, our annual budget needs to increase as well, in order to maintain the same level of service. The charts on the following pages are a simple way of showing several important points as they relate to the proposed annual budget and its impacts on you and the community. Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 28 of 51 4 P a g e

29 AGENDA ITEM #9a. Annual Tax and Fee Increases The Numbers The graph below shows the impact of these increases on the average valued home in Revelstoke. An average home has an assessed value of approximately $270,000. The total tax and utility rate impact is approximately $88 which is 4.44% over $2,500 Annual Taxes & Fees $2,000 $88 $1,500 $1,000 $1,986 $500 $0 Property Taxes Water Fees Sewer Fees Garbage Fees Total Taxes & Fees Prior Year Amount Proposed/Approved Increase 5 P a g e Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 29 of 51

30 AGENDA ITEM #9a. What is included in the Property Tax Increase Break-Down of Proposed Property Tax Increase ('000s) $'s % Explanation COST OF MAINTAINING EXISTING SERVICES Revenues Increase Aquatic Centre revenues (100) -0.83% To reflect actual amounts collected Decrease RCMP rent revenue % Removal of payment in lieu of taxes from lease agreement Decrease Unconditional grant revenues % To reflect actual amount received Decrease Other revenues % Net change in revenues % Expenses Increase Employment costs % Note 1 Increase Contracted services/miscellaneous costs % Note 2 Net change in expenses % Decrease Reduction in Surplus/Reserve Contributions (148) -1.23% Reduction in contributions SUBTOTAL COST OF MAINTAINING EXISTING SERVICES % COST OF NEW SERVICES Increase Emergency Operations Coordinator/Training Officer % Cost offset by savings in contracted services. See below Increase Additional RCMP member % 0.25 FTE for Annual amount = $120,000 Increase Additional approved hours for Parks, Recreation & Culture % Increase Additional approved hours for the Joint Occupational Health & Safety Committee % SUBTOTAL COST OF NEW SERVICES % Subtotal before New Construction % Increase Additional revenues from new construction (144) -1.20% From new residential and industrial construction Increase Total Proposed Property tax Increase % Note 1 Note 2 Employment costs CUPE contract Increase 131 Exempt staff increases 32 IAFF increases 120 Benefit cost adjustment to reflect actual costs 220 Classification changes per collective agreement 35 Other 29 Cost to maintain existing services 567 Emergency Operations Coordinator/Training Officer 100 Other aproved staffing increases 26 Costs for new services 126 Overall increase in budgeted employment costs 693 Contracted services/miscellaneous Contracted services increases 100 Elections (recoverable from School District) 15 RCMP contract increases 90 Emergency Operations Cordinator - contracted position moved in-house (40) Other savings (8) Cost to maintain existing services 157 Additional RCMP member (cost of.25 FTE in 2017) 30 Costs for new services 30 Overall increase in budgeted contracted services/ miscelleneous costs P a g e Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 30 of 51

31 AGENDA ITEM #9a. Consolidated Revenue Sources The pie chart below shows where the City s revenues come from. As you can see, nearly one half comes from municipal taxation. There has been a lot of hard work done, and there is currently a lot of hard work being undertaken, to prepare grant applications with the goal of relieving our local taxpayers and further minimizing debt CONSOLIDATED REVENUES Total = $27 million Other contributions & donations, $174,782, 1% Transfers from reserves & surpluses, $2,678,796, 10% Fees, permits, penalties & interest, $876,300, 3% Grants, $2,700,000, 10% Sale of services, $5,723,171, 21% Taxation (inc PILTs & 1% utility tax), $15,025,937, 55% Explanation of Major Revenues Taxation - includes municipal property taxes, payments & grants in lieu of taxes paid to the municipality by higher levels of government and the 1% utility tax. Sale of Services includes recreational user fees, garbage fees, transit fares, cemetery revenues, water & sewer fees Fees, permits, penalties & interest - includes development & building permit fees, rental revenue, penalties & interest on property taxes and interest earned on investments. Grants includes unconditional grants such as the Province s Small Community Grant, Traffic Fine Revenue Sharing and the Climate Action Revenue Incentive programmes, as well as conditional grants such as the New Building Canada Fund, Resort Municipalities Initiative, Gas Tax Community Works, and the Canada 150 Community Infrastructure Program. Transfers from reserves & surpluses includes transfers from capital reserves and surpluses to fund current year expenditures Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 31 of 51 7 P a g e

32 AGENDA ITEM #9a. Consolidated Operating Expenses The City s revenues are spent on a number of important public services and programs (see the pie chart below). Each slice of the pie includes many service and program expenditures needed to meet the City s commitments to the public. Debt principal, 620,824, 2% Debt interest payments, 867,098, 3% Amortization, 1,725,000, 6% Sewer, 783,700, 3% BEWW, 70,171, 0% Water, 1,009,118, 4% Recreation and Culture, 3,230,010, 12% CONSOLIDATED EXPENDITURES Total = $27 million Transfers to reserves,surplus & capital out of revenue, 3,966,757, 15% General Government, 2,294,299, 9% Community Economic Development, 1,975,000, 7% Fire Protection, 1,819,400, 7% Development Services, 644,200, 2% Police and Bylaw Services, 2,472,100, 9% Public Works & Engineering, 5,701,310, 21% Explanation of Major Expenditures General Government includes administration and finance delivery as well as Council expenditures Fire Protection includes fire suppression, highway rescue, first responders and fire prevention education. Development Services includes enforcement of the building code, maintenance and enforcement of the zoning bylaw and the official community plan (OCP), as well as the review and processing of property development applications. Police & Bylaw Services - includes police protection, community policing and the maintenance of the Court House Public Works & Engineering includes the maintenance of the roads and storm sewers, city buildings, transit, garbage collection and fleet maintenance. Community Economic Development includes community economic and tourism development programs Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 32 of 51 8 P a g e

33 AGENDA ITEM #9a. Recreation & Culture includes the costs of maintaining recreational facilities, parks and playgrounds as well as running recreational and cultural programming. Water includes the cost of providing drinking water to the city. Sewer includes the costs associated with the collection, treatment and disposal of sewage. Transfers to reserve, surpluses & capital out of revenue includes transfers to capital reserves and accumulated surpluses to fund expenditures in the future, as well as the use of current year taxation to fund capital expenditures not funded out of a capital reserve. Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 33 of 51 9 P a g e

34 What Is Planned for 2017 Key Expenditures and Initiatives There are a number of key expenditures and initiatives planned for 2017, as follows: Operating Initiatives: Council has approved one additional RCMP member. This member will fill the specialized position of General Investigation Services (GIS) to efficiently seek judicial authorizations, manage drug trafficking intelligence, address serial property thefts (e.g. snowmobiles), as well as undertake complex and long term investigations (e.g. sexual assaults, child pornography and child abuse). This member will not respond to regular calls for service. Instead, they will conduct and coordinate surveillance efforts, identify crime reduction strategies, monitor prolific offenders, and plan and coordinate deployment for special projects. Additional tasks will include serving as the Missing Person Coordinator, the Domestic Violence Coordinator and organizing the Street Team. ANNUAL COST = $120,000 AGENDA ITEM #9a. Council approved the combination of the Emergency Program Coordinator (EPC) position with the Training Officer/Assistant Chief (TO/AC) position at their June 14, 2016 in camera council meeting. Historically, an outside contractor has filled the EPC position. This has meant that city staff spent their time managing the contract, processing payments and dealing with contract issues, rather than managing actual emergencies, education and exercises. The combination of the EPC position with the TO/EC position has resulted in a better managed emergency management program by having staff that are qualified and have the necessary resources to execute the program effectively. The combination of these two positions resulted in the need for an additional flex firefighter. That position was filled in September 2016 ANNUAL COST = $100,000 CONTRACTOR COST SAVINGS = $40,000 NET COST = $60, P a g e Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 34 of 51

35 AGENDA ITEM #9a. Capital Initiatives: General Fund The roundabout constructed in 2016 was phase one of the intersection project. Phase two will start in early 2017 and mostly involves roadworks between Tim Hortons/Shell and Starbucks/Petro Canada. These roadworks will improve the flow of traffic from the highway and Columbia Park area and through the highway commercial area on Victoria Road. This project has been tendered, and the City has received grant funding from the Province and ICBC for design work, but has requested further funding from the Province as the project improves the operation of the Trans-Canada Highway and Victoria Road Intersection (costs of approximately $1 million in 2017, to be funded from development cost charges (DCCs) and grants) COST = $1,000,000 Sewer Fund Council has given early budget approval to the project to replace the Front & Wales Streets lift station, to allow for the issuance of the tender to ensure that the work can be completed in This project will see a new submersiblepump lift station, complete with generator for backup power located on the same parcel as the existing station. A portion of the funds were secured through an agreement with a developer of lands on the Trans-Canada Highway. The City has also applied for grant funding through the provincial Clean Water and Wastewater Fund. Any grant funds received will reduce the net cost for sewer users COST = $840,000 Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 35 of P a g e

36 AGENDA ITEM #9a. Water Fund There is a need to replace the Illecillewaet water main. A section of the main, installed in the bed of the river, is exposed to river flows. Using directional drilling to install a replacement water main, far below the bed of the river, will make the water main less susceptible to damage. A submission of a grant application for this project, under the provincial Clean Water and Wastewater Fund, has been made. Deferring this project would increase the risk of water main failure. Consequences of the failure would include severe water restrictions for Arrow Heights and Revelstoke Mountain Resort COST = $1,150,000 Big Eddy Water The City will begin upgrades to the Big Eddy water system in The City received grant funding for two-thirds of the cost of these upgrades. The Big Eddy residents will pay for the other one third through a local area service parcel tax. These upgrade works will span over several years, with the 2017 works including trunk and distribution works on the western side of Highway 23S, distribution main works down Big Eddy Road, the construction of a second reservoir, and drilling of a third well. This project is a massive upgrade for the Big Eddy water system, with the goal of bringing it into compliance with fire protection and water quality standard requirements as well as providing cost-effective upgrades to an aging system. TOTAL COST = $5,850,000 GRANT FUNDING = $3,900,000 NET COST = $1,950,000 Thomas Brook Water & Sewer In 2016, the residents of the Thomas Brook neighborhood agreed to join the City and fund a replacement of the aging independent water system they operated. With this extension of the system, the residents also requested sanitary sewer service. The City will tender this work for construction in 2017, with funding coming, in part from the Regional District and the rest from a local area service parcel tax on the benefiting properties WATER COST = $460,000 SEWER COST = $500,000 TOTAL COST = $960, P a g e Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 36 of 51

37 Thousands Thousands General Operations The Longer Term Outlook AGENDA ITEM #9a. The 5-year outlook in the general operating fund shows an improving trend with an excess of revenues over expenditures increasing each year, with the exception of This plan includes a 5% tax increase for all years. The accumulated surplus in general operations is budgeted to increase over the 5 years of the plan. Accumulated surplus funds operational expenses before taxes and other revenues are collected, each year. It also funds emergency expenditures. Increasing the accumulated surplus each year is important as the City strives to meet the optimum levels set in Policy F- 14 Reserve Funds and Surpluses. More detailed budgeting will need to take place for these latter years as better information becomes available. Accumulated Surplus $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $ Optimum Water Operations The 5-year outlook in the water operating fund includes user rate increases of, 5% in 2018, 5% in 2019, 5% in 2020 and 5% in 2021, as a number of large projects need to be funded in the coming years,. Among these projects are the relocation of the water lines on Third St West near the old Mountain View Elementary Long Term Water Debt $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- $2,562 $2,253 $1,929 $1,591 $1, School, the Illecillewaet crossing and the replacement of the filter at the Greeley Creek water treatment plant. Because of this, there are $25 $20 $15 $10 $5 $0 Water Rate Increases % 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Rate increase in $ Rate increase in % increases in water user fees projected in the plan. These projected rate increases will be reviewed annually. Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 37 of P a g e

38 Thousands AGENDA ITEM #9a. Sewer Operations The 5-year outlook in the sewer fund is similar to the water fund. There are projected user rate increases of 5% in 2018, 5% Sewer Rate Increases in 2019, 5% in $16 6.0% 2020 and 5% $16 5.8% Long Term Sewer Debt in These are to $15 5.6% $5,000 $4,696 $4,519 fund several $15 5.4% $4,500 projects with $14 5.2% $4,000 $3,686 $3,529 minimal debt. $3,366 $3,500 Among these $14 5.0% $3,000 are $13 4.8% $2,500 replacement $13 4.6% $2,000 of the Downie force main, $12 4.4% $1,500 the Wales $1,000 Street lift $500 Rate increase in $ Rate increase in % station, and $- relocation of the sewer along Third St West. The proposed increases in sewer user fees, over the five years of the plan, reflect the impact of these projects. The projected rate increases will be reviewed annually. Big Eddy Water Operations The Big Eddy water fund is new for the City and is the result of the amalgamation of the Big Eddy Waterworks District into the City. A 5-year financial plan for this utility has been included in the overall financial plan. There will be updates to this plan, in future years, as the costs of operating the system are determined. User fees have been set the same as the water fund, for These rates are the same as the total amount paid (water toll and land tax) in 2016 to the Big Eddy Waterworks District. Going forward, the plan shows increases of approximately 2.5% per year. There will be updates to the user fees, as the costs of operating the system become more certain. Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 38 of P a g e

39 Thousands Thousands AGENDA ITEM #9a. Reserves and Long Term Debt Below is a summary of the City s current and projected reserves and long-term debt levels, in graph form. This information is useful when discussing the various funding options for capital expenditures and one-time projects Reserves Long Term Debt $8,000 $25,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 General Water Sewer Big Eddy Water $20,000 $15,000 $10,000 $5,000 $0 General Water Sewer Big Eddy Water Total Once the City has more data on the condition and remaining life of its existing infrastructure and assets it will be in a better position to determine appropriate reserve levels including related reserve transfers. Funding for these would come from property taxes and utility user rates. Building up healthy reserve funds will allow the City to fund future capital projects out of reserves, reducing the need for long-term debt. Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 39 of P a g e

40 AGENDA ITEM #9a. Some of the Services we provide for you: Water to your taps through a complex delivery system. Wastewater collection and treatment Curbside garbage collection services. Construction, maintenance, cleaning, and enhancement of: - Streets, sidewalks, parking lots. - Boulevard, parks, trails, and playgrounds. - Sports fields and associated facilities. - Storm sewer systems - Street lighting Arena, aquatic centre, community centre and cemetery. Recreation service programming. Cultural services programming. Emergency services planning for natural disasters. Full service fire department including highway rescue. Police services Development services, such as: - Building inspection - Long term planning vision for development. - Licensing and permitting. Bylaw services to ensure: - Enforcement of bylaws. - Animal control. - Enforcement of business licensing. Economic development services that support the local business community Social development & planning services What Now? Tell us what you think! finance@revelstoke.ca, with 2017 budget in the subject line Mail: City of Revelstoke, Box 170, Revelstoke, B.C, V0E 2S0; Public Consultation Period ENDS on April 13, We look forward to your feedback Mayor McKee; Councillors Brothers, Duke, English, Nixon, Orlando & Sulz 16 P a g e Finance - Draft 5 Year ( ) Financial Plan - Public C... Page 40 of 51

41 City of Revelstoke Committee of the Whole Report AGENDA ITEM #9b. File No.: To: From: His Worship Mayor McKee and Members of Committee of the Whole Tania McCabe, Director of Finance (Acting) and Ken Bjorgaard, Local Government Consultant/Contractor Date: March 13, 2017 Subject: Roads Paving and Related Long-Term Financial Plan RECOMMENDATIONS: That the Committee of the Whole recommend to Council: 1. THAT the 2017 budget and related financial plan be adopted without additional roads funding; 2. THAT staff develop a comprehensive and integrated long-term (10 to 15 years) financial plan which takes into account Council s overall strategic goals and priorities, related departmental work plans, growth, all capital initiatives (renewal and replacement of all of the City s existing assets and infrastructure as well as new capital) and the link between operations and capital; 3. THAT the long-term financial plan be completed over the next few months with staff providing interim progress reports to Council; 4. THAT additional 2017 funding for roads paving be considered once the broader, long-term financial plan picture is clearer. CAO Comments: Approved for Committee consideration. AC Executive Summary: Additional funds for roads paving should be considered as part of a broader financial planning exercise (see diagram below) which takes into account Council s overall strategic goals and priorities, related departmental work plans, growth, all capital initiatives (renewal and replacement of all of the City s existing assets and infrastructure as well as new capital) and the link between operations and capital. Finance - Roads Paving and Related Long-Term Financial Plan Page 41 of 51

42 City of Revelstoke Committee of the Whole Report AGENDA ITEM #9b. COMPREHENSIVE AND INTEGRATED FINANCIAL PLAN STRATEGIC PLAN/PRIORITIES CAPITAL PLANS YEARS MULTI-YEAR FINANCIAL PLAN DEPARTMENT WORKPLANS OPERATING BUDGETS A comprehensive and integrated long-term (10-15 years) financial plan will assist Council in making the best investment choices and funding decisions when it comes to all of the City s assets or infrastructure, not only paving. The steps to complete this broad financial plan over the next few months have been identified. Staff would provide interim reports to Council as to their progress towards this objective. The 2017 budget can be passed without additional roads funding, as a budget amendment for more roads funding can always be adopted further into 2017, after the larger financial picture becomes clearer. This approach is recommended. Completion of a long-term financial plan meets Council s overall community goals of Planning for the Future and Safeguard Infrastructure, and would also address Council s 2017 strategic priorities for Infrastructure and Long-Term Financial Planning. Any additional project costs associated with the financial plan, which could not be covered within existing 2017 budget allocations, would be brought forward for Council s consideration and approval prior to proceeding. Background: Committee of the Whole passed the following resolution on March 9, 2017: THAT staff prepare a report on best practice tax options with respect to paving including a communication plan. CARRIED This resolution was in response to a report titled Pavement Management Plan from Tetra Tech Canada Inc., which identified the need to allocate additional budget funds for a multi-year pavement management program. While there is a need to allocate additional budget funds for road paving and maintenance in order to avoid higher repair and replacement costs in the future, a funding strategy for road paving should not be considered in isolation of a financial plan which takes into account all relevant factors including all of the City assets (see table below). Finance - Roads Paving and Related Long-Term Financial Plan Page 42 of 51