BUDGET Sustainable Effective Transparent Fiscally Responsible. ELECTORAL AREA "E" (Naramata Area)

Transcription

1 BUDGET 2019 Sustainable Effective Transparent Fiscally Responsible ELECTORAL AREA "E" (Naramata Area)

2 BUDGET STRUCTURE A Regional District is different than a municipality A Regional District does not have 1 Budget Legislated to create a separate budget for every service we operate RDOS has 143 separate services and therefore, 143 separate budgets Separate budgets ensure only those who participate in the service pay for the service Each service must be self sustaining With a separate budget for each service, not every home in the same Electoral Area will see the same impacts from the budget because they may not all participate in the same services

3 Regional Services Examples include: 911 Emergency Call System, Emergency Planning, Regional Trails and General Government Services where majority of Electoral Areas and Municipalities participate For Regional Services, all of the properties in the Municipalities and Electoral Areas contribute Rural Services Examples include: Building Inspection, Planning and Electoral Area Administration Services where majority of the Electoral Areas participate (no Municipalities) For Rural Services, all of the properties in the Electoral Area contribute

4 Local Services Examples include : Fire Protection and Naramata Water Services where only a defined group of properties within an Electoral Area participate For Local Services, only those properties within the defined service Area contribute

5 RDOS BUDGET DOCUMENT Complete Budget document can be seen on our website under Popular Links : Document is structured to show budgets by type: Regional, Rural and Shared and then by Electoral Area The Budget for Electoral Area "E" begins on page: 240 The Budget document reflects cost allocations based on the 2019 Completed Assessment Roll information. The following slides provide highlights of the RDOS 2019 Budget and how it relates to your Electoral Area cost allocations are based on 2019 Completed Assessment Roll information.

6 RDOS BUDGET PROCESS RDOS Staff begin to build a budget for each service in August Staff create baseline operation budgets Inflationary/contract increases to the previous year s budgets Refinements necessary to meet regulatory requirements Five Year Financial Plan 2019 Budget is prepared along with an addition 4 years forecasted Anything new or different Staff want to do must come forward as a Program Change Request Change Requests detail out the new or different items and identify the additional cost implications of the request The Board considers each Change Request and if they approve it, the item gets added into the Draft Budget This process helps ensure the Board is aware of what is new in the Budget Budgets and Change Requests are discussed with the Board during multiple Budget workshops throughout November/December

7 RDOS BUDGET PROCESS From those workshops, a Draft Budget is created and brought to the Board as a Budget Bylaw for 1 st reading (or 1 st and 2 nd reading) in early January The official title of the Draft Budget is Five Year Financial Plan The Draft Budget then goes out to the public for consultation throughout the month of January Feedback from the process is brought back to the Board with the Budget Bylaw for final reading and adoption in mid February or early March The Board can make changes to the Budget up until it is adopted By legislation, the Budget must be adopted by March 31

8 What is New in 2019? Impact of Organization Review Three Managers promoted to General Manager Four Supervisors/Coordinators Promoted to Managers. Review of Exempt Compensation Proposed Regional Grants Included Proposed Capital Requests Included Proposed Program Change Requests Included

9 PROGRAM CHANGE REQUESTS The following slides summarize ALL the Program Change Requests (new / different items) included in the 2019 Draft Budget It is important to remember that not every property is impacted by every Change Request Only those who participate in a service pay for any additional costs arising from the Change Requests Some Change Requests impact taxes; some impact user fees; some impact both taxes and fees and others impact neither as they are funded from Reserve, Debt or Grants.

10 Program Change Request Summary Shared Regionally Service Role 2019 Impact 2020 Forward Impact Solid Waste Services Admin Asst 19, ,578 Water Services Manager of Utilities 62, ,000 Pest Control/Invasive/Mosquito Project Coordinator 16, ,596 Information Services Network Technician 37, ,889 Electoral Area Planning Planner 25, ,239 Building Inspection Summer Student 7, ,000 Electoral Area Administration Accountant 9, ,704 Electoral Area Administration Clerk II 18, ,806 Parks & Facilities Services Lead Hand 57, ,830 Emergency Planning/911/Electoral Area Admin Emerg Services Coordinator 48, ,460 General Government Legislative Coordinator 40, ,000 GG/EAA/DS/PW/CS Communications 18, ,000 Total 361, ,102

11 2019 Capital Request Summary No Tax Requisition Impact On Area E Service Request Amount Funded by Development Services Internal Process Tracking Software (Building Permits and Bylaw Enforcement) 300, Reserve Parks, Facilities, Trails Truck 45, Reserve Public Works Trailer 30, User Fees Public Works Truck 40, Reserve Total 415,000

12 2019 Regional Grant Requests Shared Regionally Request Bighorn Air Cadet Academy $3,000 Kwantlen Polytechnic University Foundation $25,000 South Okanagan Community Foundation $30,000 Okanagan Film Commission $35,000 Subtotal $93,000

13 2019 RDOS DRAFT BUDGET $ % (In Millions) RDOS OPERATING EXPENSES MUNICIPAL DEBT REPAYMENT (1.5) (16.9) OSRHD (15.4) (43.4) TOTAL RDOS BUDGET (12.4) (14.7)

14 AREA "E" BUDGET ITEMS Regional Services 911 Emergency Call System - increasing $2,487 Increased CORD dispatch costs Emergency Planning increasing $2,998 Increase in equipment/education/ess General Government increasing $5,426 Lower projected 2018 surplus carried into 2019 Regional Transit increasing $1,965 New regional transit service to Kelowna Rural Services Electoral Administration increasing $28,634 Increase to 9 area directors from 8 large transfer from operating reserve in 2018 reduced requisition Building Inspection increasing $3,629 Lower transfer in of operating reserves Okanagan Regional Library increasing $9,860; Increase in requisition from ORL

15 AREA "E" BUDGET ITEMS Rural Services Building Inspection increasing $3,629 Lower transfer in of operating reserves Local Services Naramata Fire increasing $27,381 Fire Services Master Plan training, staffing and equipment requirements Naramata Water increasing $40,988 Increased operating expenditures Rural Projects increasing $10,835 Additional staff allocation due to projects in the area Naramata Parks and Rec increasing $26,681 Recovery of 2018 projected deficit, increased operating costs Naramata Museum increasing $6,785 Increased capital expenditures

16 CAPITAL BUDGET RDOS 2019 Total Capital Budget $10.3 Million Large majority of funding comes from Reserves and/ or Grants Area "E" Projects Naramata Fire Firefighting Equipment$157,000 (funded by reserves and taxation SCBA/Air Paks/Turnout Gear/Sprinkler Protection Unit) Firefighting Equipment, hoses, testing equipment, air packs Naramata Water $26,137 (funded by user fees) Purchase of utility trailer Naramata Parks and Rec $307,000 (funded through grants & parkland acquisition funds) Manitou Park washrooms, septic & pathway, Wharf Park - 1st Street Lane closure

17 2019 USER FEES Some services are funded from User Fees and not from Taxes. Garbage/Recycling No fee increase remain at $145 per household Naramata Water No Fee increase from current rates. Street Lighting Fees are increasing from $6.00/parcel to $6.85 due to less reliance on previous year s surplus that has been used in prior years in order to offset required revenue

18 The table on the following slide summarizes the Area "E" tax requisition required to support the 2019 Budget It shows the amounts needed to support Regional, Rural, Shared and Local services Overall, Area "E" residents will contribute $1.9M Million in taxes The tax requisition has increased $131,330 over 2018

19 REGIONAL DISTRICT OKANAGAN-SIMILKAMEEN 2019 Budget Comparative Requisition ELECTORAL AREA E NET % (NARAMATA) CHANGE CHANGE Participating Directors determine budget by weighted vote 911 EMERGENCY CALL SYSTEM - Improvements Only $ 37,119 $ 34,829 $ 2,290 ANIMAL CONTROL 15,731 16,381 (650) BUILDING INSPECTION 24,076 20,283 3,793 DESTRUCTION OF PESTS EMERGENCY PLANNING 11,888 8,945 2,943 ELECTORAL AREA ADMINISTRATION 207, ,959 28,634 ELECTORAL AREA PLANNING 132, , ENVIRONMENTAL CONSERVATION 21,818 22,000 (182) GENERAL GOVERNMENT 52,970 47,669 5,301 HERITAGE (Subregional) (221) ILLEGAL DUMPING 1,364 1, INVASIVE SPECIES (formerly noxious weeds) 1,983 1, NUISANCE CONTROL 1, REGIONAL ECONOMIC DEVELOPMENT (Okanagan Film Comm) 1,388 1,399 (11) REGIONAL GROWTH STRATEGY (Subregional) REGIONAL TRAILS 10,093 10,411 (318) REGIONAL TRANSIT 1,965-1,965 SOLID WASTE MANAGEMENT PLAN 7,013 5,835 1,178 SUBDIVISION SERVICING 18,738 18,836 (98) Subtotal 549, ,159 45, % Regional Director determines budget NARAMATA CEMETERY-P(715) 31,281 31,528 (247) GRANT IN AID 9,000 5,000 4,000 NARAMATA FIRE DEPARTMENT 518, ,445 27,381 NARAMATA MUSEUM 15,648 8,863 6,785 NARAMATA PARKS & REC 287, ,574 26,681 NARAMATA WATER (Parcel Tax for Debt Servicing of Capital Upgrades) 121, , NOISE CONTROL 5,660 5, RURAL PROJECTS 50,892 40,057 10,835 SEPTAGE DISPOSAL SERVICE {Areas D, E, I & F-S/A 3(715)} 3,520 3, TOURISM & COMMUNITY SERVICE CONTRIBUTION 10,000 10,000 - TRANSIT (Area E) 103, , UNTIDY AND UNSIGHTLY PREMISES 3,921 3, VICTIM SERVICES (Areas D, E, F & I) 2,238 2,597 (359) Subtotal 1,163,003 1,086,290 76, % Requisitions from Other Multi-Regional Boards OKANAGAN BASIN WATER BOARD 30,598 30, OKANAGAN REGIONAL LIBRARY 144, ,747 9,860 STERILE INSECT RELEASE PROGRAM - Land Only 16,070 16,984 (914) STERILE INSECT RELEASE PROGRAM - Parcel Tax 24,154 24,325 (171) 215, ,332 9, % TOTAL $ 1,928,111 $ 1,796,781 $ 131, % Average Res Tax Rate/$1000 $ 1.97 $ 1.96 $ 0.01 Average Taxes per Res Property $ 1, $ 1, $ 95.79

20 HOW ASSESSMENTS IMPACT TAXES Assessment Notices are sent from BC Assessment to each property owner in early January It is very important to review your property s assessed value. If you feel it is not valued appropriately, you should make an appeal. Deadline for appeals is January 31 st. You can only appeal an assessment notice. You cannot appeal a tax notice. Once the assessed value of a property is set, that is the amount used to calculate your tax bill

21 HOW ASSESSMENTS IMPACT TAXES For every service, the amount of tax needed to support the service is calculated as a mill rate The mill rate is an amount that is applied to every $1,000 of assessed value to determine the amount of tax you will pay. Mill rates are set by the Surveyor of Taxes. The mill rate is different for different classes of property (i.e. residential, major industry and business) Calculation Examples: Assessed value = $400,000; Residential Mill Rate $0.50; Major Industry Mill Rate $1.70; Business Mill Rate $1.225; Residential Tax collected = (400,000/ 1,000) = 400 x 0.50 = $200 Major Industry Tax collected = (400,000/ 1,000) = 400 x 1.70 = $680 Business Tax Collected = (400,000/ 1,000) = 400 x = $490

22 HOW ASSESSMENTS IMPACT TAXES For the majority of services, service costs are allocated based on assessed values of land and improvements Assessment Mix refers to how an Area s assessments change in relation to other Areas and Municipalities How an Electoral Area s assessed value changes from year to year in relation to other Municipalities and Electoral Areas assessed values determines how much of the cost of Regional, Rural and Shared Services are paid for by the Electoral Area If assessed values in the Electoral Area change more than the average change, the Area will be paying more of the total service costs than they did the previous year If they change less than the average, they will be paying less of the total service cost than they did in the previous year

23 HOW ASSESSMENTS IMPACT TAXES Your individual property s assessed value and how it changes from year to year also has an impact on what happens with your taxes If your assessed value is more than the average residential property, you will likely pay more for RDOS services If your assessed value is less than the average residential property, you will likely pay less for RDOS services.

24 2019 ASSESSMENTS Area E Assessments make up approximately 3.90% of the total Region s assessed value That means for a service, such as Solid Waste Management Plan, where everyone in the Region is participating, Area "E" contributes 3.90% of the total tax dollars needed to run that service For example: In 2019, the Solid Waste Management Plan requires $179,976 of tax funding. Area "E" will contribute approximately 7,019(3.90%) of that total

25 2019 ASSESSMENTS Area "E" Assessments are up 8.02% over last year Area "E" s increase is less than RDOS average increase of 9.29% That means Area "E" is contributing less to the total costs for Regional Services this year Area "E" s increase is more than the 8 Electoral Areas average increase of 9.12% That means Area "E" is contributing less to the total costs for Rural services this year

26 2019 PROPERTY TAX The graph on the following slide shows implications of the 2019 Budget for an average residential property valued at approximately 627,553 Average residential property will pay approximately $1, Mill rate approximation = $2.10 per thousand Amount differs from amount shown in full budget document as this version excludes parcel tax implications for Naramata Water and Sterile Insect Release The graph indicates how the total $1,320 is allocated to the different types of services the average residential property participates in

27 2019 PROPERTY TAX ALLOCATION Average House $627,553 Pays $1,320 Other Local Service Area Services, $49 Naramata Water, $83 Other Boards (Library, SIR, OBWB), $120 Regional and Rural Services, $378 Naramata Fire, $356 Parks and Recreation, $197 Bylaws - Noise, Untidy, $7 Rural Projects / Grant in Aid/Victim Services/Tourism, $48 Museum, $11 Transit, $71

28 YOUR TAX BILL Your tax bill is sent to you by the BC Surveyor of Taxes Your tax bill is payable to the Surveyor of Taxes and not the RDOS The Surveyor of Taxes collects the total taxes owing and then sends the RDOS the portion requisitioned for RDOS services in early August The bill includes the cost of RDOS services as well as other services not under RDOS jurisdiction such as School Tax, Provincial Tax and Police Tax To calculate the RDOS portion of your taxes: 2019 Total Assessment/1000 X mill rate (2.11) For example, if your total assessment is $400,000 the RDOS portion on your tax bill will be $1, (500,000/1000 X 2.11) Note: Homeowner grants are excluded from this calculation; These are estimates only as assessment data is subject to change due to appeals and adjustments

29 OKANAGAN SIMILKAMEEN REGIONAL HOSPITAL DISTRICT 2019 DRAFT BUDGET

30 Same Board as RDOS but separate entity with a separate budget The purpose of the RHD is to provide capital funding for health care facilities in the Region equipment facility construction/renovation Typically, RHD funds 40% of Interior Health s Capital Budget for the Region OSRHD 2019 Budget is $20,164,000

31 OSRDH DRAFT BUDGET Tax Requisition $6,447,140 $6,377,840 $6,136,460 Other Income 280, , ,000 Transfer from Reserve 4,517,860 3,030,000 19,150,000 Debenture Proceeds 8,919,000 25,992,000 22,638,000 TOTAL REVENUE $20,164,000 $35,529,840 $48,204,460 Salaries and Honorariums $70,500 $68,400 $67,000 Capital Grants 5,903,460 5,612,300 4,036,700 Patient Care Tower 8,919,000 25,992,000 41,288,000 Miscellaneous Expenses 11,100 11,000 11,000 MFA Debt Repayment 1,941,140 1,146, ,760 Transfer to Reserves 3,318,800 2,700,000 2,229,000 TOTAL EXPENSES $20,164,000 $35,529,840 $48,204,460 Estimated Tax Rate / $1,000 $ $ $ Cost per Average House valued at $428,348 $ $ $106.00

32 Penticton Patient Care Tower Project RHD contribution of $117 Million expected to be funded approximately 53% from debt and the remainder from Reserves Tower Achieved Substantial Completion in December/18 Remainder of Project will focus on renovation of existing areas of hospital Expected Project Completion 2020 Other Capital equipment and improvement projects budgeted at $5,903,460

33 AREA CONTRIBUTION TO HOSPITAL Area "E" has 3.896% of total assessed values in the Region That means Area "E" pays 3.896% of the total tax amount needed for the Hospital Budget Total tax Requisition in 2019 is approximately Area "E" contributes $251,205 of that total Area "E" s average residential property value = 627,553 Average Area "E" home will contribute $165 ( $165) Equates to mill rate of per thousand

34 Provincial program Apply through the Province Available to: People over 55 Surviving spouse Person with disability Families with children Only for principal residence For more information: BC Property Tax Website

35 We encourage you to review the Budgets in more detail. The Budgets are posted in the Popular Links Section of the RDOS website If you have questions about the information provided for your Area or wish to provide general feedback to the Board on anything related to the Budgets, please us by February 6, 2019 at John Kurvink Manager of Finance/CFO