AGENDA Special Council Tuesday, January 31, 2017 at 3:30 P.M. Council Chambers, Avenue South Cranbrook, BC

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1 Page AGENDA Special Council Tuesday, January 31, 2017 at 3:30 P.M. Council Chambers, Avenue South Cranbrook, BC Corporate Officer 1. CLOSED MEETING Nil 2. ADOPTION OF AGENDA 2.1 Agenda of the Special Council Meeting of Tuesday, January 31, ADOPTION OF MINUTES Nil 4. DELEGATIONS Nil 5. BYLAWS Nil 6. BUSINESS ARISING Nil 7. NEW BUSINESS Memo to Mayor and Council from C. Osborne, Director of Finance and Computer Services re: Update of Five Year Financial Plan New Business - Memo Updated 5Yr. Plan Memo to Mayor and Council from C. Osborne, Director of Finance and Computer Services re: Public Input following January 18, 2017 Special Meeting 7.2 New Business - Public Comment Report Recommendation from the Finance and Computer Services Department re: Proposed Five Year Financial Plan Summary ( )

2 7.3 New Business - Proposed 5 Yr Plan Summary 7.3 Attachment - Proposed 5 Yr. Fin Plan Summary COMMITTEE RECOMMENDATIONS Nil 9. ADMINISTRATION UPDATES Nil 10. PETITIONS Nil 11. CORRESPONDENCE ACTION ITEMS Nil INFORMATIONAL ITEMS Nil 12. MAYOR AND COUNCILLORS REPORTS & INQUIRIES 13. ADJOURNMENT Page 2 of 27

3 (7.1) (7-1 Memorandum Page 3 of 27

4 (7.1) NTS AN NS ,000 Page 4 of 27

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7 Public Public (7.2) 2 CRANBROO FINANCE Memorandum To: Mayor & Council Date: January 26, 2017 Department: File Number: From: Charlotte Osborne, Director Finance & Computer Services File No Cross Ref Department: Finance & Computer Services Phone: 219 [ib URGENT D PLEASE REVIEW I) <} AND REPLY _ 4 RE: Five Year Financial Plan ( ) Input Following January 18, 2017 Special Meeting (Budget) FOR YOUR INFORMATION At the January 18, 2017 Special Meeting (Budget), the public was invited to submit their comments, in writing, on the material covered at the meeting. Administrationasked that comments be submitted by Monday, January 23 at 4:00 pm. The City received 1 submission. Attachments: Paul Cohen Street South, Cranbrook Summary of Points including comments from Administration :\O Counci 2017\SPEC AL MEET NGS\#2 January Special Meeting\#4 Mayor & Council Input - Following January 18, 2017 Special Meeting (Budget).Docx THE CITYOF CRANBROOK Phone: (250) Avenue South T011Free? (800) 728'2726 Cranbrook, BC v1c 2M8 Facsimile: (250) Page 7 of 27

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9 Page 9 of 27 (7.2)

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13 Report 4.14 Page 13 of 27

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15 PROPOSED FIVE YEAR FINANCIAL PLAN SUMMARY ( ) k MOUNTAINS OF OPPORTUNITY CRAN \\;/...x.\m. L-.1. BROOK 4:1 :. \:& $4-~..\; ( INCLUDED SCHEDULES Page 15 of 27

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20 City of Cranbrook Proposed Five Year Financial Plan Summary Increase in GeneralMunici al Pro ert Taxes The 2017 average general municipal property tax increase (excluding school and other non-city taxes) for residential taxpayers is projected to be 1.98% or about $14.69 per $100,000 of assessed value, unless City Council chooses to change the distribution of property taxes. In 2017, the 1% Dedicated Road Improvement Tax equates to about $7.42 per $100,000 of assessed value. The combined 2017 general municipal property tax increase for a residential property owner is 2.98% or $22.11 per $100,000 of assessed value. The average assessed value for a residential property in Cranbrook is $270,000 ($269,000 in 2016). The projected municipal taxes for an average home will be about $2,063, or $5.65 per day for all municipal services, before the Provincial Home Owner Grant. CITYTAXES: $5.65 per Day (for an average residential property assessed at $270,000) 8.8% 4.1% 2.8% Page 20 of 27

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23 City of Cranbrook Proposed Five Year Financial Plan Summary Western Financial Place The City took over operation of the recreation complex in March, In 2012, the building was renamed Western Financial Place (WFP), after a naming rights agreement was reached with Western Financial Group. Projected revenues in 2017 from WFP, including pool operations, are $906,000. Operating expenses, including the curling rink, are estimated to be $3,070,039 before debt payments of $1,619,441. Several capital projects, including the pool dehumidification and conversion of the parking lot and aquatic lights to LED, were undertaken in In 2017 and 2018 the roof willbe replaced, a new Direct Digital Control (DDC) system will be installed, and the arena lights will be converted to LED. \/' Re ional Landfill The annual payment to the RDEK for the regional landfill fee.is budgeted to be $1,650,000 years 2017 through in the Financial Su ort The City provides funding to non-profit organizations and agencies that provide services to the community including the Cranbrook Public Library, Key City Theatre, Chamber of Commerce, Cranbrook History Centre, and Cranbrook Curling Club. In 2017, the funding is budgeted to be $1,000,468. In addition, City Council has approved permissive tax exemptions to not-for-pro?t organizations in 2017 in the estimated amount of $240,763. Page 23 of 27

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25 City of Cranbrook Proposed Five Year Financial Plan Summary Amortization of Ca ital Assets Effective in 2009, the Public Sector accounting rules required all local governments to begin amortizing (depreciating) tangible assets over their useful life. The City s amortization charge for 2017 has been budgeted at $7,000,000 and has been included in the Financial Plan. Borrowin Over the five-year period 2017 to 2021, the City plans to borrow approximately $25,034,000 for various capital projects as follows: Capital Road Program (incl. underlying water and sewer i"? asti'uctu 'e) ,000, years 695,497 Fire Engine ,000 5 years 138,753 Transfer Pipeline - Phase II ,750, years 123, ,400,000 5 years 289, ,000 5 years 44,180 Water Treatment Plant & Distribution ,000, years 739,373 MFA Fees of 1% willbe applied to each debt issue. Assumed Interest rate of 3.35% reviewedwith MFA Salaries and Wa es A Collective Agreement with CUPE 2090 is currently in effect for the period of March 1, 2012 to February 28, Ifthe current Collective Agreement expires before renewal, the terms of the current Collective Agreement continue to apply until a re-negotiated Collective Agreement is in place. Negotiations began on December 15, 2016 to renew the Collective Agreement with CUPE. Exempt staff salaries willbe reviewed once the negotiations are complete. The City's Collective Agreement with Cranbrook Fire Fighters Local 1253 has been renewed and is in effect from January 1, 2015 to December 31, Annual increases for the Fire Fighters are tied to the Vancouver Fire Fighters Collective Agreement which expired December 31, 2015 and is in the process of renegotiation. Any increases for 2016 and 2017 will be retroactive. 11 Page 25 of 27

26 City of Cranbrook Proposed Five Year Financial Plan Summary REVENUE. Municipal Property Taxes Parcel 8. Local Area Service Tax -2,334,892-2,514,794-2,517, , 735 sl5.l Page 26 of 27

27 -.A.;1u:r.-....~ -a.-._~..=1 City of Cranbrook Proposed Five Year Financial Plan Summary TRANSFERSFROM TRANSFERSFROM OTHERGOV'TS RESERVES % WATER/ SEWER/SOLID WASTEFEES 13% -1...u. FAIRPD FEES 4% TRANSFERS FRO SURPLUS M 9% SALEOFSERVICES8: FEES L»-...z9..- OTHERTAXES 596 GENERALMUNICIP /" PROPERTYTAXES AL 43% DEBTPAYMENTS 9% AIRPORT 496 RECREATION81 CULTURALSERVICES 9% TRANSFERST0 TRANSFERSTO RESERVES AIRPORTCAPITALFUND 996 1% WVATER/ wnsre SEWER/ 159:... [PnoTEcTIv 21% PUBLICWOR KS SERVICFS 12% INFRASTRUCTURE PLANNING&DELIVE Page 27 of 27