Committee of the Whole Agenda

Transcription

1 1 Committee of the Whole Agenda The agenda for the Freestanding Committee of the Whole (Corporate Administration & Finance Committee - Budget) meeting to be held in the Council Chambers of the Municipal Hall, 8645 Stave Lake Street, Mission, British Columbia on Wednesday, November 1, 2017, commencing at 1:00 p.m. 1. CALL TO ORDER 2. ADOPTION OF AGENDA 3. CORPORATE ADMINISTRATION & FINANCE (a) Agenda Overview Presentation (b) Municipal Comparisons of Residential Property Taxes and Charges Page 2 This report is to show the Committee how Mission s 2017 property tax levy on an average assessed home compares with the 2017 property tax levy on average assessed homes in other Lower Mainland municipalities for both the total property taxes levied on a tax notice and the levy for municipal purposes only. This report is provided for the Committee s information only, with no recommendations or action required. (c) 2018 General Operating Fund Draft Budget Status Page 6 Recommendations: Council consider and resolve: That the 2018 draft General Operating Financial Plan and the proposed tax levy increase of 3.63% for 2018 be presented for feedback at the upcoming public budget consultation meeting on November 20, (d) Projected 2018 Property Tax, Drainage Levy and Utility User Fees Impact on Average Assessed Home in Mission Page 11 This report provides information to the Committee on the approximate dollar impact the various budget recommendations will have on the average assessed home s property tax notice. This information is to assist the Committee in making 2018 budget decisions, no recommendation accompanies this report, and no action is required. (e) New Public Works Electrician Position Page 14 Recommendations: Council consider and resolve: 1. That a new electrician position be created within Public Works; 2. That staff negotiate details of the job description and salary with CUPE; and 3. That the 2018 Operating Spending Package Request list be updated to include an Electrician position at a cost of $140,000 funded by operating budget reduction within several funds equaling $140,000, and include a capital request of $160,000 for the purchase of a bucket truck funded by the General Capital Reserve Fund, and be presented with the other spending packages under consideration by Council for feedback at the upcoming public budget consultation meeting on November 20, ADJOURNMENT

2 2 Finance Department Staff Report to Council File: DATE: November 1, 2017 TO: FROM: SUBJECT: Mayor and Council Kerri Onken, Deputy Treasurer/Collector Municipal Comparisons of Residential Property Taxes and Charges This report is to show the Committee how Mission s 2017 property tax levy on an average assessed home compares with the 2017 property tax levy on average assessed homes in other Lower Mainland municipalities for both the total property taxes levied on a tax notice and the levy for municipal purposes only. This report is provided for the Committee s information only, with no recommendations or action required. PURPOSE: The purpose of this report is to show the Committee how Mission s 2017 property tax levy on an average assessed home compares with the 2017 property tax levy on average assessed homes in other Lower Mainland municipalities for both the total property taxes levied on a tax notice from all taxing authorities and the levy for municipal purpose only. This information also provides context for any 2018 tax increase being considered by Council. DISCUSSION AND ANALYSIS: Each year the Provincial government collects data from all the municipalities in the province in order to provide statistical information. One of the comparison data tables identifies property taxes levied and other charges on an average assessed home within each municipality. As services provided in each community can be unique and regional, this report will focus on those municipalities in the Lower Mainland only. Home values can vary greatly from community to community. For 2017 the average assessed value home in the Lower Mainland ranges from the lowest (Hope) at $290,216 to the highest (W. Vancouver) at $3,734,538. In Mission, the average assessed home is $560,500. For the most part, each community provides similar level of services for policing, fire, recreation, development etc. Thus, property taxes charged on the average assessed home is a fairly practical statistic to compare. While this comparison is a good tool, it should be noted that certain costs are included in the municipal budget of some municipalities while in other municipalities, those costs are charged by another taxing authority. For instance transit costs for municipalities in the Fraser Valley Regional District (FVRD) are funded as part of general municipal property taxes and thus included in Graph 1 General Municipal Taxes on Averaged Assessed Home. For communities in Metro Vancouver Regional District (Metro), transit costs are levied by Translink under Other Taxing Authorities and are thus included in Graph 2 Total Property Tax on Average Assessed Home. Page 1 of 4

3 3 The two following graphs shows Mission listed as eighth lowest out of twenty-two municipalities for the general municipal taxes on the average assessed home, and fourth lowest for the total property tax on the average assessed home, which includes the general municipal taxes and other taxing authorities taxes. Staff have indicated in each graph whether or not a municipality is located within Metro Vancouver (Metro) or the Fraser Valley (FVRD) Regional District. Graph General Municipal Taxes on Averaged Assessed Home (Source: Local Government Statistics, Taxes & Charges on a Representative House, Schedule 704) West Vancouver - Metro White Rock - Metro Port Moody - Metro Vancouver - Metro New Westminster - Metro North Vancouver - Metro N Vancouver District - Metro Richmond - Metro Burnaby - Metro Coquitlam - Metro Delta - Metro Port Coquitlam - Metro Maple Ridge - Metro Abbotsford - FVRD Mission - FVRD Langley City - Metro Pitt Meadows - Metro Langley Township - Metro Surrey - Metro Chilliwack - FVRD Hope - FVRD Kent - FVRD 3,589 3,268 3,107 3,066 2,892 2,820 2,621 2,617 2,587 2,375 2,368 2,309 2,267 2,087 2,066 2,041 2,021 1,953 1,778 1,530 1,310 4, ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Graph 1 shows the 2017 property taxes for general municipal services that are levied on the average assessed home in each community. In Mission, the average assessed home of $560,500 paid $2,087 in general municipal taxes to pay for services such as Police Services, Recreation programs, Development services, Fire/Rescue, Engineering and Public Works, etc. This graph does not include charges for Local Improvements, special area taxes or user fees for water, sewer, or curbside collection of garbage and recycling nor does it take into consideration the Provincial Home Owner Grant program where eligible home owners can apply to the Province and deduct $570 or $845 from their property tax notice. STAFF REPORT TO COUNCIL Page 2 of 4

4 4 Graph 2 Total 2017 Property Tax on Average Assessed Home (Source: Local Government Statistics, Taxes & Charges on a Representative House, Schedule 704) West Vancouver - Metro Vancouver - Metro White Rock - Metro Port Moody - Metro N Vancouver District - Metro North Vancouver - Metro Richmond - Metro Burnaby - Metro New Westminster - Metro Coquitlam - Metro Delta - Metro Port Coquitlam - Metro Surrey - Metro Maple Ridge - Metro Abbotsford - FVRD Langley Township - Metro Langley City - Metro Pitt Meadows - Metro Mission - FVRD Chilliwack - FVRD Hope - FVRD Kent - FVRD 5,207 5,149 5,016 5,013 4,934 4,904 4,412 3,995 3,717 3,562 3,534 3,443 3,395 3,298 3,240 3,142 2,920 2,574 2,262 6,198 6,060 8, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Graph 2 shows the total 2017 property taxes for municipal services and from other taxing authorities that are levied on the average assessed home in each community. This includes levies for local general municipal services, regional district services, school taxes and other taxing authorities before eligible the Provincial Home Owner grant is deducted. In Mission, the average assessed home of $560,500 paid $3,142 for property taxes on their annual property tax notice. This graph does not include charges for Local Improvements, special area tax or user fees for water, sewer, or curbside collection of garbage and recycling. COUNCIL GOALS/OBJECTIVES: This report relates to Council s Excellence in Financial Management and Planning objective by managing our finances ensuring that Mission property owners are paying property taxes comparable to other neighbouring municipalities. FINANCIAL IMPLICATIONS: There are no financial implications associated with this report. STAFF REPORT TO COUNCIL Page 3 of 4

5 5 COMMUNICATION: The graphs shown in this report will be included within the 2018 budget information provided to the public for the budget consultation meeting. SUMMARY AND CONCLUSION: This report outlines how Mission s 2017 property tax levy on an average assessed home compares with the 2017 property tax levy on average assessed homes in other Lower Mainland municipalities for both the total property taxes levied from all taxing authorities on a tax notice and the levy for municipal purposes only. This information also provides context for any 2018 tax increase being considered by Council. While this comparison is a good tool, it should be noted that certain costs are included in the municipal budget of some communities while in other municipalities, those costs are charged by another taxing authority. For instance transit costs for municipalities in the Fraser Valley Regional District are funded as part of general municipal property. For communities in Metro Vancouver Regional District, transit costs are levied by Translink. The graphs in this report indicate Mission s standing among the Metro Vancouver and the Fraser Valley Regional District municipalities. SIGN-OFFS: Kerri Onken, Deputy Treasurer/Collector Reviewed by: Kris Boland, Director of Finance Comment from Chief Administrative Officer: Reviewed STAFF REPORT TO COUNCIL Page 4 of 4

6 6 Finance Department Staff Report to Council File: DATE: November 1, 2017 TO: Mayor and Council FROM: Kerri Onken, Deputy Treasurer/Collector SUBJECT: 2018 General Operating Fund Draft Budget Status ATTACHMENTS: Appendix A General Operating Fund Budget Summary RECOMMENDATION: Council consider and resolve: That the 2018 draft General Operating Financial Plan and the proposed tax levy increase of 3.63% for 2018 be presented for feedback at the upcoming public budget consultation meeting on November 20, PURPOSE: This report provides an updated overview of the status of the 2018 draft operating budget for the general operating fund as at November 1, DISCUSSION AND ANALYSIS: At the last Freestanding Committee of the Whole meeting on September 19, 2017, staff reported to Council on the latest status of the 2018 General Operating Fund Budget. Appendix A of that report showed the net proposed changes to the budget as at September 19 th to be $1,349,529, or a 4.49% increase to property taxes. This would have an impact of approximately $85.14 for the average assessed home in Mission. This included a provision to fund nine of the 14 submitted spending packages and a proposal to postpone the hiring of an additional RCMP member to Budget Dollars Potential Tax Impact Budget Information Presented September 19, 2017 Revenue Increases $ -1,117, % Expenditure/Transfer to Reserve Changes 1,334, % Subtotal $ 217, % Other Budget Increases Approved by Council 624, % New RCMP Officer postponed by 1 year till , % Spending packages 561, % 0.82% increase in payroll overhead 82, % Proposed Changes as Presented at September 19, 2017 $ 1,349, % Page 1 of 5

7 7 Since the September 19, 2017 meeting, staff have continued to review and analyze the budget trends and the following budget impacts have been noted (increases in revenues and decreases in expenditures reduce the budget, while increases in expenditures and decreases in revenues increase the budget): An increase in revenue from updating the administrative cost recovery charged to municipal utilities and the Forestry department (includes approved wage increases from 2017 plus estimated for 2018); $242,010 Funding from reserves for Canada Day celebrations was added back to the budget; $10,000 Increase in revenue from updated lease agreements; $10,000 Increase in expenditures for insurance premiums; $5,931 Budget Dollars Potential Tax Impact Budget Information Presented September 19, 2017 $ 1,349, % New Budget Information Administrative cost recovery -242, % Funding Canada Day celebrations from Gaming -10, % Property lease extension revenue -10, % Additional increase in insurance premiums 5, % Subtotal New Information $ -256, % Net Proposed Changes to General Operating Fund Budget Presented November 1, 2017 $ 1,093, % These budget impacts total $256,079 as a budget reduction, for an accumulated total of $1,093,450 revised projected budget impact for 2018, which represents a 3.63% increase in property taxes. Appendix A summarizes the changes to the 2018 draft provisional budget starting with the financial balances included on the report from September 19, 2017 and includes the items listed above. At the bottom of Appendix A are impacts to the property tax notice of the average assessed home in Mission. It should be noted that information on two budget issues will be received by staff early this month that could impact the 2018 budget: 1. The 2018/2019 budget projections from BC Transit incorporating updated operating costs under the new Provincial Government, and 2. Updated non-market changes from BC Assessment. Early indicators are suggesting our current estimate of $300,000 of new tax revenue is in line with BC Assessment s expectations. FINANCIAL IMPLICATIONS: The following chart summarizes the changes from the 2017 final budget to the 2018 provisional budget and categorizes these changes into impacts to maintaining existing service levels and impacts to increase existing services. STAFF REPORT TO COUNCIL Page 2 of 5

8 8 Budget Dollars Potential Tax Impact Maintain Existing Services Revenue Increases on Existing Services $ -380, % Additional Development Revenue 1) -447, % Additional Revenue - Non-Market Changes 1) -300, % Additional Revenue - Administrative Fee 2) -242, % Expenditure/Transfer to Reserve Changes 1,340, % Subtotal to Maintain Existing Services $ -29, % -$1.90 4) Increase Service Levels 3) Career Firefighters - second half of providing 24 hr/day coverage 245, % Additional fire equipment costs - moving to 24 hr/day coverage 33, % Building Inspector 3 approved June 5/15 120, % Victim Services and Emergency Support Service increase 69, % Webmap Software (RC17/425) August 21, 2017 meeting 9, % Increase Fee for Service Grants 9, % Mission Sustainable Housing Committee - staff related costs 3, % Spending packages presented September 19, , % 0.82% increase in payroll overhead 82, % Property lease extension - new revenue -10, % Increase Existing Services Levels $ 1,122, % $ ) Potential Changes to General Operating Fund Budget Presented November 1, 2017 $ 1,093, % $ ) 1) These revenue increases can fluctuate immensely depending on development activity in Mission 2) Incorporates wage increase from 2017 contract negotiations and 2018 estimates. 3) Does not include the one RCMP officer, proposed to be postponed until ) Estimated $ impact on Average Tax Notice using average assessed home value of $560,500 (2017) To maintain the current level of services to the residents of Mission, a small decrease to the budget estimated at $29,075 is proposed which represents a 0.1%. This decrease will affect the property tax notice of the average assessed home in Mission with an estimated reduction of $1.90. Increasing the level of services to the residents of Mission is estimated at $1,122,525 which represents a 3.73% increase to the budget. This increase will affect the property tax notice of the average assessed home in Mission by $ The estimated accumulative budget impact of $1,093,450 represents a 3.63% increase to the budget and will increase the property tax notice of the average assessed home by approximately $ STAFF REPORT TO COUNCIL Page 3 of 5

9 9 COMMUNICATION: Highlights of the 2018 general operating budget along with the utility funds and capital budgets will be communicated to the public at the upcoming Public Budget Consultation session that is scheduled for November 20, SUMMARY AND CONCLUSION: At the last Freestanding Committee of the Whole meeting on September 19, 2017, staff informed Council on the latest status of the 2018 General Operating Fund Budget presenting the net proposed changes to the budget as at September 19 th to be $1,349,529, or a 4.49% increase to property taxes. This included a provision to fund nine of the 14 submitted spending packages and a proposal to postpone the hiring of an additional RCMP member to Since the September 19, 2017 meeting, staff have continued to review and analyze the budget trends and the revised budget impacts have an accumulated total of $1,093,450 for 2018, which represents a 3.63% increase in property taxes. Appendix A of this report summarizes the changes to the 2018 draft provisional budget including new budget information. At the bottom of Appendix A are impacts to the property tax notice of the average assessed home in Mission. To maintain the current level of services to the residents of Mission, a small decrease of $29,075 is projected. Increasing the level of services to the residents of Mission totals $1,122,525 which represents a 3.73% increase to the budget. This increase will affect the property tax notice of the average assessed home in Mission by $ It should be noted that information on two budget issues will be received by staff early this month that could impact the 2018 budget: SIGNOFFS: 1. The 2018/2019 budget projections from BC Transit incorporating updated operating costs under the new Provincial Government, and 2. Updated non-market changes from BC Assessment. Early indicators are suggesting our current estimate of $300,000 of new tax revenue is in line with BC Assessment s expectations. Kerri Onken, Deputy Treasurer/Collector Reviewed by: Kris Boland, Director of Finance Comment from Chief Administrative Officer: Reviewed G:\FINANCE\BUDGET\Budget 2018\Council Budget Meeting Agendas, etc\ Summary\C-Budget Status 2018 General Operating.docx STAFF REPORT TO COUNCIL Page 4 of 5

10 10 APPENDIX "A" General Operating Fund Budget Summary Budget Dollars Potential Tax Impact Budget Information Presented September 19, 2017 Revenue Increases $ -1,117, % Expenditure/Transfer to Reserve Changes 1,334, % Subtotal $ 217, % (A) Other Budget Increases Approved by Council 624, % New RCMP Officer postponed by 1 year till , % Proposed from September 19, 2017 budget meeting Spending packages 561, % Proposed from September 19, 2017 budget meeting 0.82% increase in payroll overhead 82, % Proposed from September 19, 2017 budget meeting Proposed Changes as Presented at September 19, 2017 $ 1,349, % (B) New Budget Information Administrative cost recovery -242, % Reported on at the Utility meeting October 23, 2017 Funding Canada Day celebrations from Gaming -10, % Accidently removed during department's review Property lease extension revenue -10, % Updated lease agreement for District property Additional increase in insurance premiums 5, % Subtotal New Information $ -256, % Net Proposed Changes to General Operating Fund Budget Presented November 1, 2017 $ 1,093, % (C) 2017 Vancouver CPI Estimate = 2.0% Estimated $ Impact on Average Tax Notice - using average home value of $560,500 (2017) To Maintain Existing Services $ 217,004 $13.65 (A) Net Proposed Changes - September 19, 2017 $ 1,349,529 $85.14 (B) Potential Changes - November 1, 2017 $ 1,093,450 $68.84 (C) STAFF REPORT TO COUNCIL Page 5 of 5

11 11 Finance Department Staff Report to Council File: DATE: November 1, 2017 TO: FROM: SUBJECT: ATTACHMENT(S): Mayor and Council Kerri Onken, Deputy Treasurer/Collector Projected 2018 Property Tax, Drainage Levy and Utility User Fees Impact on Average Assessed Home in Mission Appendix A - Projected 2018 Property Tax & Utilities Impacts on Average Home This report provides information to the Committee on the approximate dollar impact the various budget recommendations will have on the average assessed home s property tax notice. This information is to assist the Committee in making 2018 budget decisions, no recommendation accompanies this report, and no action is required. PURPOSE: The purpose of this report is to summarize the various 2018 budget recommendations and to provide information on the approximate dollar impact these recommendations will have on the average assessed home s 2018 property tax notice. BACKGROUND: Over the past seven weeks at the Freestanding Committee of the Whole (Corporate Administration & Finance Budget) meetings, staff have reported on various 2018 budget issues and recommended potential increases to three 2018 utility user fees and the 2018 property taxes. DISCUSSION AND ANALYSIS: Over the past seven weeks at the Freestanding Committee of the Whole (Corporate Administration & Finance Budget) meetings, staff have reported on the status of the 2018 general operating fund and the 2018 utility operating funds for water, sewer, drainage and waste management. During these meetings, various budget issues were discussed and several recommended potential increases to 2018 utility user fees and property taxes were presented. These include: Drainage levy increase of 4.6% Water utility user fee of 1% Sewer utility user fee of 4% General operating budget increase of up to 3.63%, (see separate report on today s agenda). Appendix A summarizes these impacts on the averaged assessed home in Mission estimated at $560,500 (2017). Page 1 of 3

12 12 FINANCIAL IMPLICATIONS: The financial implications associated with this report are the potential property tax increases to Mission residents as outlined in Appendix A. The total increase on the 2018 property tax notice of the average assessed home in Mission is estimated at $94.30 which represents an increase estimated at 2.96% for all taxes and utility user fees. Should Council choose an option for the general operating fund that is lower than 3.63%, then the impact to the average assessed home will be lower. COMMUNICATION: The dollar impacts from the 2018 budget increases on the local residences property taxes will be included in the information communicated at the upcoming public budget consultation meeting on November 20, SUMMARY AND CONCLUSION: Over the past seven weeks at the Freestanding Committee of the Whole (Corporate Administration & Finance Budget) meetings, staff have reported on the status of the 2018 general operating fund and the 2018 utility operating funds for water, sewer, drainage and waste management. Appendix A summarizes the 2018 impacts on the average assessed home in Mission estimated at $560,500 (2017). SIGN-OFFS: Kerri Onken, Deputy Treasurer/Collector Reviewed by: K. Klassen, Accounting Clerk-General Comment from Chief Administrative Officer: Reviewed STAFF REPORT TO COUNCIL Page 2 of 3

13 13 Appendix "A" Projected 2018 Property Tax & Utilities Impacts on Average Home Average Assessed Home (2017) $560,500 Estimated Average Assessed Home (2018) $560,500 1) Increase $ Increase % Municipal & Drainage Property Taxes Municipal Taxes $1, $1, $ % Drainage Levy % Subtotal 1, , % Flat Rate Municipal Utilities Water User Fees % Sewer User Fee % Refuse Collection Recycling/Compost Collection Subtotal 1, , % Total Municipal & Utility Charges: 2) $3, $3, $ % 1) Property tax calculation for 2018 subject to change when the assessment values for the 2018 Completed Roll are finalized. 2) The impacts of the Provincial Home Owner Grant is ignored in this example. Page 3 of 3

14 14 Engineering & Public Works Staff Report to Council File: DATE: November 1, 2017 TO: FROM: SUBJECT: Mayor and Council Brent Schmitt, Acting Director of Engineering & Public Works New Public Works Electrician Position RECOMMENDATIONS: Council consider and resolve: 1. That a new electrician position be created within Public Works; 2. That staff negotiate details of the job description and salary with CUPE; and 3. That the 2018 Operating Spending Package Request list be updated to include an Electrician position at a cost of $140,000 funded by operating budget reduction within several funds equaling $140,000, and include a capital request of $160,000 for the purchase of a bucket truck funded by the General Capital Reserve Fund, and be presented with the other spending packages under consideration by Council for feedback at the upcoming public budget consultation meeting on November 20, PURPOSE: The purpose of this report is to obtain Council s approval for the creation of a new Public Works electrician position and addition of the purchase of a bucket truck to the 2018 Operating Spending Package Request list. BACKGROUND: There are many day-to-day operational tasks that require the services of an electrician, such as utility station repairs, facility upgrades, and street lighting maintenance. The District does not have an inhouse electrician to complete these tasks. Currently, electrical-related tasks such as inspections, assessments, repairs, upgrades, and other projects are contracted out. In 2016, the District s electrical contractor fees approached $200,000. DISCUSSION AND ANALYSIS: As the community continues to grow, the District s operations group has seen an increase in the cost of electrical maintenance and repairs. Staff recommend that a new job position be created for a full-time in-house electrician. This position would provide electrician services to multiple departments and divisions within the District, including works related to utilities, roads, parks, facilities, and waste management. The electrician would be responsible for the design, installation, inspection, and maintenance of a variety of electrical systems, including those for pump stations, facilities, and street lighting. Additionally, they would provide support to the development process with their involvement in the review and inspection of new developments. In conjunction with the District s asset management program, an in-house electrician could provide more frequent inspections of electrical systems, and identify future upgrade requirements. While this position would be responsible for many of the day-to-day electrical projects, it would not completely remove the requirement for external electrical contracting services. Specialized electrical contracts would still be required for items such as signal timing, particular emergency situations, and any works outside the licensed allowances of the District s electrician. STAFF REPORT TO COUNCIL Page 1 of 3

15 15 A number of benefits would be recognized with the addition of an in-house electrician, including: Reduced operating cost: It is estimated that the hourly cost of an in-house electrician, including salary, basic supplies, and vehicle costs, would be about 20% less than a contracted electrician. Accessibility: The services of the electrician would be available to all of the departments within the District. The normal procurement process, along with the contractor s availability, can impact the timeliness of tasks being completed. In an emergency or high-priority situation, an in-house electrician would provide a quick response time, while avoiding costly contractor emergency rates. Prioritization of tasks: Any changes in the day-to-day priorities of work could be easily managed internally, without the need for expensive change orders. Familiarity: Over time, a District electrician would become familiar with the various facilities, stations, and processes. This will lead to improved efficiencies with inspections, maintenance, identification of priority tasks, and responding to emergency situations. Project Management: For larger or more complex projects that would require a contracted electrician, the District s electrician could serve as the Project Manager by conducting cost estimates, preparing reports, coordinating the works with other related projects, and inspecting the final works. The electrician will report to the Operations Manager, or to a supervisor within Public Works. In conjunction with this position, the purchase of a new vehicle will be required. The initial purchase of an electrician bucket truck would be funded from various capital budgets, as outlined below, with maintenance and replacement costs recovered through a fleet charge-out rate. COUNCIL GOALS/OBJECTIVES: This new position would support the following objectives from Council s Strategic Plan: Improved public safety; and Optimized planning and management of assets and infrastructure. FINANCIAL IMPLICATIONS: A market review of similar positions at other municipalities suggests that the electrician position should be at pay grade 30, which has a 2017 rate of $37.99 per hour. Annual costs for this position, including salary, training, licensing, incidental supplies, and vehicle expenses are expected to total $140,000. The impact of creating this position is anticipated to result in savings of approximately 20% for the inhouse electrical works, which equates to approximately $28,000 per year. The savings would be spread over 25 project budgets across 8 funding sources, in addition to various capital projects. These individual budgets will not be adjusted at this time, to allow for potential emergency overtime expenses associated with those budgets. The anticipated costs for an in-house electrician are as follows: Wages $94,400 Vehicle & Equipment $25,000 Assistant/Flagging $10,000 Training $2,000 Licensing & Permits $3,500 Supplies $5,100 Estimated total cost $140,000 STAFF REPORT TO COUNCIL Page 2 of 3

16 16 The cost for the in-house electrician can be funded by existing budgets in the following areas, as funds will be available due to the corresponding reduction in contractor costs in these areas: Drainage Fund $2,000 Water fund $5,000 Sewer fund $5,000 Waste Management $4,000 Equipment pool $3,000 Facilities $22,500 Public Works $56,000 Parks $22,500 Capital Projects $30,000 Total $140,000 The purchase of an electrician bucket truck would be required, and is estimated at $160,000. This purchase could be funded from the General Capital Reserve fund. COMMUNICATION: Human Resources will draft a job description and rate of pay for CUPE to review and accept. SUMMARY AND CONCLUSION: An in-house electrician would provide the District with many added benefits, including reduced cost and improved operating efficiency through easy accessibility to an electrician and increased familiarity with the District s numerous systems and facilities. Additionally, the electrician would conduct condition assessments to help prioritize required maintenance and ensure the safety of the electrical systems. No additional budget is required for this position, as funding will be provided from existing contractor budgets in the various departments and divisions that currently use an external electrician. However, capital funding, of an estimated $160,000, will be required for the initial purchase of an electrician bucket truck. SIGN-OFFS: Brent Schmitt, Acting Director of Engineering & Public Works Comment from Chief Administrative Officer: Reviewed. Reviewed by: Matt Dunham, Operations Manager STAFF REPORT TO COUNCIL Page 3 of 3