Fund Structure. West Vancouver s financial framework is organized around several high-level functional units, called Funds.

Transcription

1 885008v1 DISTRICTof WEST VANCOUVER Fund Structure West Vancouver s financial framework is organized around several high-level functional units, called Funds. Each Fund is a stand-alone business entity that engages in specific service activities, and has its own particular revenues, expenditures, reserves and capital program. 1

2 2015 AVERAGES Average assessed home value $1,991,847 Market increase of 7.0% (over 2014) Municipal taxes $3,300 (2014 = $1,861,613) Municipal taxes (w/ 2% increase) $3,366 2

3 PROPERTY TAXES How do we calculate? l Changes to the effective tax rate? What is the mill rate? BC Assessment Authority Impact of other taxing authorities PROPERTY TAXES About BC Assessment Conducts property assessments annually for all property owners in the province Structure BC Assessment operates as an independent, provincial Crown corporation, governed by a board of directors, and is accountable to the provincial government The President and CEO of BC Assessment is supported by an executive committee. The board is appointed by the Lieutenant-Governor in Council Head office is in Victoria 15 area offices in 10 regions throughout British Columbia 3

4 PROPERTY TAXES Assessed Value x Mill Rate The mill rate is adjusted annually to eliminate the effect of changes to the average assessed value The only circumstance whereby a resident s change to property taxes, year over year, equals the change approved by Council is where the residents change in assessed value equals the average change in assessed values for the District The District collects on behalf of other taxing authorities but retains none of this revenue PROPERTY TAXES 1% property tax rate increase = $584,000 of revenue to the District 2% property tax rate increase = $66 for the average West Vancouver household 4

5 Summary of Actual Tax Rate Increases Cumulative Total (ignores compounding) Average Abbotsford Burnaby Chilliwack Coquitlam Delta Langley City Langley Township Maple Ridge Mission New Westminster North Vancouver City North Vancouver District Pitt Meadows Port Coquitlam Port Moody Richmond Surrey Vancouver West Vancouver White Rock Average 34.46% 3.45% 0.00% 1.28% 1.66% 4.30% 4.15% 5.50% 4.97% 5.00% 5.85% 1.75% 34.59% 3.46% 1.97% 2.47% 3.95% 3.95% 3.95% 4.50% 3.95% 3.95% 2.95% 2.95% 35.27% 3.53% 2.44% 3.44% 3.44% 3.45% 3.95% 3.95% 3.95% 3.95% 3.85% 2.85% 40.93% 4.09% 2.42% 2.95% 3.56% 3.49% 4.96% 7.11% 5.17% 5.42% 3.15% 2.70% 30.61% 3.06% 1.90% 1.90% 2.90% 2.99% 3.98% 3.98% 3.98% 2.98% 3.50% 2.50% 31.55% 3.16% 2.71% 2.63% 1.89% 2.99% 5.22% 6.21% 3.40% 2.74% 1.77% 1.99% 41.90% 4.19% 2.59% 2.79% 2.95% 3.95% 4.95% 5.00% 5.95% 4.92% 5.60% 3.20% 42.25% 4.23% 3.25% 2.25% 4.00% 4.00% 4.00% 4.00% 4.00% 4.75% 6.00% 6.00% 34.60% 3.46% 0.00% 1.49% 0.00% 3.10% 5.88% 5.80% 5.08% 5.12% 4.90% 3.23% 31.84% 3.18% 1.96% 2.90% 1.91% 2.98% 3.98% 4.23% 3.50% 3.90% 4.24% 2.24% 33.25% 3.33% 1.00% 3.00% 2.00% 3.10% 2.85% 3.90% 4.05% 4.95% 4.90% 3.50% 34.30% 3.43% 2.50% 2.50% 2.00% 3.00% 3.00% 4.25% 4.50% 4.50% 4.30% 3.75% 39.90% 3.99% 3.09% 1.79% 3.95% 5.95% 6.45% 2.58% 5.58% 3.88% 3.72% 2.91% 38.74% 3.87% -0.21% 2.84% 2.97% 3.87% 6.13% 6.90% 6.34% 4.00% 4.00% 1.90% 44.90% 4.49% 49% 3.07% 5.34% 5.36% 5.43% 4.75% 5.23% 3.58% 5.34% 3.90% 2.90% 31.75% 3.18% 2.96% 2.98% 2.98% 2.95% 3.45% 2.97% 3.92% 3.65% 3.90% 1.99% 33.25% 3.33% 3.90% 2.90% 2.90% 2.90% 4.10% 3.95% 3.90% 2.90% 2.90% 2.90% 27.62% 2.76% 1.62% 1.36% 2.87% 1.88% 2.08% 5.85% 1.23% 3.70% 4.04% 2.99% 18.37% 1.84% 2.92% 0.00% 0.00% 1.10% 0.00% 2.95% 3.50% 2.43% 3.52% 1.95% 29.76% 2.98% 2.36% 3.38% 2.50% 3.77% 3.25% 4.75% 3.84% 3.89% 3.11% -1.09% 34.49% 3.45% 2.12% 2.51% 2.69% 3.46% 4.05% 4.68% 4.22% 4.10% 4.01% 2.66% 2015 BUDGET PROCESS August 2014 Long-Term Fiscal Sustainability Review begins (complete 07/2015) Labour model updated September 2014 Requests for FTEs October 2014 Divisional work plans Divisional operating budgets Divisional capital budgets November 2014 Public consultation January / February 2015 March 2015 Review by Council Public consultation Five-year Financial Plan bylaw 5

6 DWV BUDGET PROCESS The 2015 budget process has been an open and transparent process. The budget submission to Council will provide a comprehensive overview of the budget. The budget schedule will allow for the adoption of the 2015 to 2019 Five-year Financial Plan in March, While staff do believe this is the best course of action, the proposed schedule provides some challenges. Most notably, BC Assessment Authority does not provide the final roll (the final list of assessed property values used to calculate property tax revenue) until sometime in January, As in 2014, the Community Strategic Plan and Council priorities will drive the budget process. DWV BUDGET PROCESS The Five Priorities of Council In addition to providing highly-valued programs and services in a fiscally sustainable manner, Mayor and Council determined five significant priorities for the District to focus on through These priorities include: The Public Safety Building Ambleside and Waterfront Development Housing and Neighbourhood Character Municipal Services and Finances Environment, Parks and Upper Lands These five priorities are in complete alignment with the Community Strategic Plan, which was developed by the District in collaboration with residents. It provides the framework that drives the District s operations and strategic initiatives, and provides the context for financial planning and budgets. These priorities will be revised in early 2015 to align with the new Council s objectives. 6

7 DWV BUDGET PROCESS The overall guiding g principles p for the budget process remain unchanged. These principles include the need for a: Safe community Healthy community Financially strong community Sustainable community Continuing commitment to deliver exceptional services DWV BUDGET PROCESS Utilities Water, Sewer and Solid Waste 2015 utility rates will be brought to Council in December Within the water and sewer utilities, the projected timing and costs of future infrastructure replacements have been integrated into long-term operating and funding models. Th d t i f t d t d The proposed rate increases for water and sewer are expected to be in keeping with previously projected funding models. 7

8 DWV BUDGET PROCESS Utilities Water, Sewer and Solid Waste Recommended annual charge for the median single family household in 2015: Water: $553*, an increase of $36, or 6.9% over 2014 Sewer: $757*, an increase of $63, or 9% over 2014 Solid Waste: no change, MultiMaterial BC (MMBC) *This rate includes the average of base charges and actual water volume rate BUDGET Average West Vancouver Single Family Home Municipal property taxes $3,366 Utilities Water $553 Sewer $757 Solid Waste $306 $1,616 $4,982 8

9 2015 BUDGET Factors Affecting the 2015 Budget Global economy New construction Inflation LONG-TERM FISCAL SUSTAINABILITY REVIEW Fiscal = government spending and investing Sustainability = last for future generations The Fiscal Sustainability Review and the resulting long-term financial plans will provide the District with more than annual reports and budgets; this work will give the District a better understanding of its overall organizational asset inventory, longterm obligations and resource allocation requirements in order to provide the community with the desired services level, now and into the future at an efficient life-cycle cost. 9

10 LONG-TERM FISCAL SUSTAINABILITY REVIEW Context Many of the District s most costly infrastructure assets will be coming due for repair and replacement within the next 50 years. Many municipalities currently lack the long-term strategies, policies, benchmarking and financial projections for incorporating this discussion in their annual reports or shortterm budget processes. LONG-TERM FISCAL SUSTAINABILITY REVIEW Project Approach 1. Environmental assessment, data collection 2. Compare best practices 3. Prepare DWV documents 4. Organization assets one fiscal picture 5. Confirm and consult directors and departments t 6. Public and strategic input 7. Prepare report and finalize (consensus) 10

11 LONG-TERM FISCAL SUSTAINABILITY REVIEW Key Deliverables 1. Long-term Financial Forecasting identification and data compilation of all DWV assets, facilities, equipment, fleet, infrastructure, utilities, roads and sports fields clarification and confirmation of the accuracy of the District s Tangible Capital Asset database 5, 10 and 20-year projections reflecting the future liabilities and obligations related to assets LONG-TERM FISCAL SUSTAINABILITY REVIEW Key Deliverables (continued) 2. Program Delivery and Service Levels identification/inventory of all District programs and services (legislated, critical, historical and other) research and analysis of comparable municipalities and relevant private sector organizations or service providers identification of options and opportunities for efficiency gains, service level adjustments or alternate service delivery identification of options and opportunities for increased revenues or other potentially non-traditional sources of revenue 3. Community Consultation 11

12 LONG-TERM FISCAL SUSTAINABILITY REVIEW Timeline 2015 BUDGET Questions? 12