A bylaw for the City of Powell River Five-Year Financial Plan for the period 2016 to 2020 inclusive

Transcription

1 CITY OF POWELL RIVER BYLAW 2441, 2016 A bylaw for the City of Powell River Five-Year Financial Plan for the period 2016 to 2020 inclusive WHEREAS the Community Charter requires the City to have a five-year financial plan adopted annually, by bylaw; NOW THEREFORE, the Council of City of Powell River, in open meeting assembled, hereby enacts as follows: TITLE 1. This Bylaw may be cited as "Five-Year Financial Plan Bylaw 2441, 2016". FINANCIAL PLAN 2. Schedules "A", B and C attached to and forming part of this bylaw are the Five-Year Financial Plan of the City of Powell River for the years 2016 to 2020 inclusive. REPEAL 3. Five-Year Financial Plan Bylaw 2423, 2015 is repealed. PUBLIC NOTICE GIVEN the day of,. READ a first time the day of,. READ a second time the day of,. READ a third time the day of,. ADOPTED the day of,. David J. Formosa, Mayor Marie Claxton, City Clerk

2 Five-Year Financial Plan Bylaw 2441, 2016 Page 2 of 8 SCHEDULE A Consolidated Financial Plan City of Powell River Five Year Financial Plan Operating Budget Revenues Tax Levies $ 21,763,370 $ 21,763,370 $ 21,763,370 $ 21,763,370 $ 22,074,498 Payments in Lieu of Tax 723, , , , ,767 Transfers to other governments (6,206,963) (6,206,963) (6,206,963) (6,206,963) (6,206,963) Net Taxes for municipal purposes $ 16,279,801 16,287,035 16,294,341 16,301,721 16,620,302 Sale of Services 4,795,767 5,082,969 5,179,790 5,300,384 5,517,507 Other Revenue 942, , , , ,872 Utility Service Revenues 5,175,938 5,251,940 5,329,080 5,407,484 5,462,303 Government Grants 1,461,325 5,405,214 1,105,750 1,106,000 19,177,065 Interest and Investment Income 1,272, , , , ,093 13,648,049 17,569,010 13,480,086 13,646,564 32,008,840 Operating Revenues $ 29,927,850 $ 33,856,045 $ 29,774,427 $ 29,948,285 $ 48,629,142 Operating Expenses General Government 8,334,643 6,601,757 6,601,757 6,601,757 6,634,766 Transportation Services 4,573,914 4,162,021 4,168,859 4,168,859 4,189,703 Environmental and Public Health 466, , , , ,296 Protective Services 6,274,344 5,896,575 5,925,019 5,967,899 6,012,139 Utility Services 3,675,929 3,352,108 3,327,529 3,375,193 3,423,570 Parks, Recreation and Cultural 4,185,685 4,046,896 4,046,896 4,046,895 4,068,008 Fiscal Services Debt Charges 594, , , , ,740 Amortization 4,475,000 4,519,750 4,745,738 4,793,195 5,032,855 Operating Expenses $ 32,580,071 $ 29,758,909 $ 29,977,569 $ 30,097,537 $ 30,489,077 Annual Operating Surplus (Deficit) $ (2,652,221) $ 4,097,136 $ (203,142) $ (149,252) $ 18,140,065 Net Financial Position Add: Amortization included as expense 4,475,000 4,519,750 4,745,738 4,793,195 5,032,855 Less: Capital Acquisitions 17,362,349 9,919,873 2,281,230 8,385,500 25,769,500 Net Capital Transactions (12,887,349) (5,400,123) 2,464,508 (3,592,305) (20,736,645) Surplus (Deficit) after Capital Transactions (15,539,570) (1,302,987) 2,261,366 (3,741,557) (2,596,580) Funding Reserves and Surplus Add: Transfers from reserves/surplus 10,716,948 5,710,223 2,225,550 2,345,500 7,759,500 Less: Transfers to reserves/surplus 4,131,124 3,511,723 3,593,534 3,811,291 4,305,956 Net Funding to (from) Reserves/Surplus 6,585,824 2,198,500 (1,367,984) (1,465,791) 3,453,544 Surplus (Deficit) after Transfers $ (8,953,746) $ 895,513 $ 893,382 $ (5,207,348) $ 856,964 Funding Debt Add: New Borrowing 10,357,478 6,000,000 Less: Principal Payments 1,403, , , , ,964 Debt Funding Increase (decrease) 8,953,746 (895,513) (893,382) 5,207,348 (856,964) Budget Surplus (Deficit) $ $ $ $ $

3 Five-Year Financial Plan Bylaw 2441, 2016 Page 3 of 8 In accordance with Section 165(3.1) of the Community Charter, the City of Powell River is required to include in the Five-Year Financial Plan, objectives and policies regarding each of the following: 1. The proportion of total revenue that comes from each of the funding sourcess described in Section 165(7) of the Community Charter; 2. The distribution of property taxes among the property classes, and 3. The use of permissive tax exemptions. Sources of Revenue The pie chart below depicts the funding sources this fiscal year. SCHEDULE B Revenue Plan Objectives and Policies proportionate share of revenue to be received from the various Sources of Revenue Government Grants 5% Interestt and Investment Income 4% Utility Service Revenue 17% Other Revenue 3% Taxes for municipal purposes 54% Sale of Services 17% Property tax represents the greatest portion of own source revenue. Property taxation offers a number of advantages, for example, it is simple to administer and it is fairly easy to understand. It offers a stable and reliable source of revenue for services that are difficult to fund on a userbasis. pay basis and supports other services that are unable to be fully funded on a user pay These services include; general administration, fire protection, police services, bylaw enforcement, library, parks, recreation and culture and street lighting.

4 Five-Year Financial Plan Bylaw 2441, 2016 Page 4 of 8 Schedule B continued Property owners in Powell River should be treated in a fair and consistent manner. The tax calculation methodology must be consistent, transparent and understandable. Many services can be measured and charged on a user-pay basis, such as water and sewer usage, building permits, business licenses, and the sale of services. Government grants are a funding source that the City does not rely on for its normal operations. When projects meet the eligibility criteria for grant funding, the City will apply and await the outcome before proceeding. Property Tax Revenue by Class (8) Recreation/Non Profit 0% (7) Managed Forest Land 0% Property Tax Revenue % by Class (9) Farm 0% Payment in Lieu of Taxes (PILT) 4% (6) Business/Other 17% (5) Light Industry 1% (4) Major Industry 17% (1) Residential 61% (2) Utilities 0%

5 Five-Year Financial Plan Bylaw 2441, 2016 Page 5 of 8 Permissive Tax Exemptions Schedule B continued City of Powell River Permissive Tax Exemption Policy 214 guides the administration and approval of permissive tax exemptions. Some of the eligibility criteria for permissive tax exemptions that are outlined in the policy include the following: The tax exemption must demonstrate benefit to the community and residents of the City by enhancing the quality of life (economically, socially and culturally) within the community. The goals, policies and principles of the organization receiving the exemption must not be inconsistent or in conflict with those of the City. The organization receiving the exemption must be a registered non-profit society, as the support of the City will not be provided for commercial and private gain. Permissive tax exemptions will be considered in conjunction with: (a) other assistance being provided by the City; (b) the amount of revenue that the City will lose if the exemption is granted; and (c) where the operating purpose or service is regional, the City may accept a share, rather than all, of the burden of a tax exemption. The City will continue to provide permissive tax exemptions to non-profit societies. The City may expand its offering of permissive tax exemptions to include revitalization tax exemptions targeted at encouraging economic development and growth.

6 Five-Year Financial Plan Bylaw 2441, 2016 Page 6 of 8 SCHEDULE C Transfers from and to Reserves City of Powell River Five Year Financial Plan Transfer from Reserves & Surplus Budget Budget Budget Budget Budget General Fund Funds Equipment Reserve $ 532,000 $ 917,523 $ 518,000 $ 594,500 $ 594,500 Prior Year Surplus General Fund 1,880, ,000 Community Forest Reserve 1,294,700 20, , ,000 Land Sale Reserve 291,611 Gas Tax Reserve 762, , , , ,000 Building Maintenance Reserve 34, ,000 10, ,000 4,795,022 2,084,523 1,265,000 1,563,500 1,059,500 Barge and Tanker Reserve 75,000 50,000 Computer Reserve 41,000 55,350 40,350 47,000 Future Expenditures Reserve 2,886,175 Health and Safety Reserve 5,000 5,000 5,000 5,000 5,000 Insurance Claim Reserve 207,080 Legal Reserve 599 North Harbour Reserve 20,000 Smoke Alarm Reserve Theatre Equipment Reserve 8,000 Willingdon Campsite Reserve 65,000 3,308, ,700 45,550 52,000 5,000 $ 8,103,226 $ 2,195,223 $ 1,310,550 $ 1,615,500 $ 1,064,500 Sewer Fund Surplus (400,051) Future Expenditures 722,918 Treatment Plant Equipment Reserve 100,000 Infrastructure Replacement Reserve 500,000 2,825, , ,000 6,325,000 $ 922,867 $ 2,825,000 $ 425,000 $ 325,000 $ 6,325,000 Water Fund Suplus 131,750 Future Expenditures Reserve 934,105 Infrasructure Replacement Reserve 625, , , , ,000 $ 1,690,855 $ 690,000 $ 490,000 $ 405,000 $ 370,000 $ 10,716,948 $ 5,710,223 $ 2,225,550 $ 2,345,500 $ 7,759,500

7 Five-Year Financial Plan Bylaw 2441, 2016 Page 7 of 8 Schedule C continued City of Powell River Five Year Financial Plan Transfer to Reserves & Surplus Budget Budget Budget Budget Budget General Fund Funds Building Maintenance Reserve $ 94,035 $ 105,000 $ 150,000 $ 240,000 $ 170,000 Community Forest Reserve 1,000, , , , ,000 Community Works Reserve 598, , , , ,915 Equipment Replacement Reserve 733, , , , ,000 General Reserve 5,500 2,000 1, ,000 3,000 Land Sale Reserve 4,200 4,200 4,230 4,240 4,250 Park Land Reserve 1,555 1,570 1,580 1,585 2,436,284 2,231,195 2,109,582 2,336,735 2,069,750 Airport Reserve 3,091 6,400 6,500 6,700 6,900 Barge and Tanker Wharf Reserve 3,000 3,000 3,010 3,020 3,030 Computer Reserve 50,000 55,350 50,000 54,500 54,500 Cranberry Lake Sanctuary Reserve Election Reserve 7,500 7,600 7,700 7,800 7,500 Field User Fee Reserve 10,000 9,500 9,900 10,000 11,000 Fire Hall Reserve Health and Safety Reserve 18,379 18,566 14,000 14,000 14,000 Heritage Preservation Project Reserve Hwy 101 Reserve 2,140 2,200 2,210 2,220 2,230 Infrastructure Replacement Reserve 510,877 Insurance Claim Reserve 2,200 2,300 2,790 2,850 2,850 Legal Reserve North Harbour Reserve 96,766 67,000 69,950 72,500 65,000 Smoke Alarm Reserve Theatre Equipment Reserve 2,000 2,100 2,150 2,200 2,300 Transfer Site Clean Up Reserve Willingdon Campsite Reserve 5,500 5,550 2,000 2,500 3,000 $ 201,115 $ 180,109 $ 170,761 $ 178,843 $ 683,748 $ 2,637,399 $ 2,411,304 $ 2,280,343 $ 2,515,578 $ 2,753,498

8 Five-Year Financial Plan Bylaw 2441, 2016 Page 8 of 8 Schedule C continued City of Powell River Five Year Financial Plan Transfer to Reserves & Surplus Budget Budget Budget Budget Budget continued Sewer Fund Funds Equipment Replacement Reserve $ 40,000 $ 40,600 $ 40,600 $ 40,600 $ 40,600 Building Maintenance Reserve 7,500 7,613 7,613 7,613 7,613 47,500 48,213 48,213 48,213 48,213 Membranes Reserve 9,000 10,000 10,000 10,000 10,000 Treatment Plant Equipment Reserve 57,075 57,075 Wildwood L. Biosolids Removal Reserve 20,000 20,100 20,200 20,300 20,400 Infrastructure Replacement Reserve 711, , , , , , , , , ,221 $ 845,498 $ 838,949 $ 784,349 $ 737,263 $ 903,434 Water Fund Funds Equipment Replacement Reserve 30,000 30,450 30,450 30,450 30,450 Building Maintenance Reserve 5,000 5,075 5,075 5,075 5,075 35,000 35,525 35,525 35,525 35,525 Infrasructure Replacement Reserve 613, , , , , , , , , ,499 $ 648,227 $ 261,470 $ 528,842 $ 558,450 $ 649,024 Transfers to Reserves and Surplus $ 4,131,124 $ 3,511,723 $ 3,593,534 $ 3,811,291 $ 4,305,956