AGENDA Select Finance Committee Meeting 3:00 PM, February 16, Description

Transcription

1 AGENDA Select Finance Committee Meeting 3:00 PM, February 16, Main Street, PO Box 219 Sicamous, B.C. V0E 2V0 Ph: Fax: Item Description Page 1. Call to Order: 2. Introduction of Late Items: 3. Approval of Agenda: (a) Approval of Agenda Recommendation: THAT the Select Finance Committee Meeting Agenda for February 16, 2017 be approved as circulated. 4. Adoption of Minutes: 2-4 (a) Minutes of the Select Finance Committee held on November 30, 2016 Recommendation: THAT the Minutes of the Select Finance Committee Meeting held on November 30, 2016 be adopted as circulated. 5. New Business: 5 (a) Draft Financial Plan 6-8 (b) General Operating Fund Summary 9 (c) Water and Sewer Operating Fund Summaries 10 (d) General Capital Summary 11 (e) Water and Sewer Capital Summary (f) Economic Opportunity Funding Summary (g) Library Additional Funding (h) Solsqua Bridge Replacement Cost Estimate (for information) 6. In-Camera: (a) Move In-Camera 7. Adjournment: Recommendation: THAT pursuant to Sections 90(1)(c) and (e) of the Community Charter, the Select Finance Committee move In-Camera. Page 1 of 20

2 MINUTES Select Finance Committee Meeting 446 Main Street, PO Box 219 Sicamous, B.C. V0E 2V0 Ph: Fax: Date and Time: 9:00 AM, Wednesday November 30, 2016 Place: Council Chambers, 446 Main Street, Sicamous, BC, 446 Main Street, Sicamous, BC Present: Absent: Staff: Gallery: Call to Order: Introduction of Late Items: Chair, Councillor T. Kyllo Mayor T. Rysz Councillor C. Anderson Councillor M. Makayev Councillor J. Mallmes Councillor J. Simons Councillor G. Bushell E.D. Parliament, Town Manager K. Bennett, Chief Financial Officer J. McCulloch, Operations Manager M. Malkowsky, Deputy Corporate Officer 9 people, 1 Staff The Select Finance Committee meeting was called to order at 9:00 am with Councillor Kyllo presiding. None. Approval of Agenda: APPROVAL OF AGENDA It was moved and seconded: THAT the Select Finance Committee Meeting Agenda for November 30, 2016 be approved as circulated. Carried Adoption of Minutes: MINUTES OF THE SELECT FINANCE COMMITTEE HELD ON NOVEMBER 23, It was moved and seconded: THAT the Minutes of the Select Finance Committee Meeting held on November 23, 2016 be adopted as circulated. Carried Page 2 of 20

3 November 30, 2016 Select Finance Committee Meeting Minutes Delegations: 9:06 AM Councillor Makayev joined the meeting. CHAMBER OF COMMERCE FEE FOR SERVICE PROPOSAL - NEIL MILLAR, PRESIDENT Neil Millar, President of the Chamber of Commerce delivered a presentation on the Chamber's fee for service proposal. Mr. Millar outlined the distribution of District funding allocated to the Visitor Information Centre in Mr. Millar discussed the Chamber's funding request to support the Visitor Information Centre's plans for 2017, which include increased mobile visitor centre hours, continued development of marketing, installation of way finding signage, upgrading of the website, design of a new brochure and new community events. Discussion included Chamber membership levels and fees, houseboat kiosk use, events funding, visitor numbers and funding sources. The Chair opened the floor to the gallery for comments. 9:49 AM Mr. Millar left the meeting. 9:50 AM 9:51 AM Councillor Makayev left the meeting. Councillor Makayev returned to the meeting. AMENDMENT OF AGENDA The Chair requested amendment of the agenda by moving Item 6(a) Library Funding to precede Item 5(b) FireWise Consulting Ltd. Introduction and Q&A. New Business: LIBRARY FUNDING The Town Manager discussed the potential decrease in the Library's hours of operation due to the $41,000 deficit. Discussion included possible revenue streams and a potential increase in the requisition to maintain hours of operation. 9:59 AM 10:06 AM The Chair called a recess. The Chair reconvened the meeting. Delegations Continued: 10:06 AM Mr. Sanders and Mr. Ferguson of FireWise Consulting Ltd. joined the meeting. FIREWISE CONSULTING LTD. INTRODUCTION AND Q&A - GLEN SANDERS, PRESIDENT & DAVE FERGUSON The Town Manager introduced Glen Sanders and Dave Ferguson of FireWise Consulting, hired by the District to perform a fire service operational review. Mr. Sanders and Mr. Ferguson provided information on their backgrounds in fire services. Discussion regarding items to be addressed in the review included new legislation, recommended training standards, record keeping, operational guidelines, council policies and risk management. 10:29 AM Mr. Sanders and Mr. Ferguson left the meeting. Page 3 of 20 Page 2 of 3

4 November 30, 2016 Select Finance Committee Meeting Minutes In-Camera: MOVE IN-CAMERA It was moved and seconded: THAT pursuant to Section 90(1)(a) (c) & (j) of the Community Charter, the Committee move In-Camera at 10:30 am. Carried MOVE OUT OF IN- CAMERA It was moved and seconded: THAT the Committee move out of In-Camera at 11:43 am. Carried Adjournment: ADJOURN It was moved and seconded: THAT the Select Finance Committee meeting for November 30, 2016, be adjourned at 11:43 am. Carried Certified Correct: Chair, Councillor T. Kyllo Corporate Officer Page 4 of 20 Page 3 of 3

5 DISTRICT OF SICAMOUS Financial Plan Bylaw No. XXX, REVENUE Property Taxes 4,157,700 4,199,277 4,241,270 4,283,683 4,326,520 Specified Area taxes 291, , , , ,375 Grants in lieu of taxes 77,745 78,313 78,885 79,464 80,048 Unconditional grants 395, , , , ,500 Conditional grants 3,997, , ,967 2,818,800 6,300 Contributions by developers 586, , ,800 1,000, ,832 Regional District contribution 146,486 72,200 72,922 73,650 74,386 Water and Sewer fees 1,993,607 1,966,946 1,961,677 1,965,812 1,963,449 Investment Income 25,000 25,200 25,402 25,606 25,812 Other 21,589 15,095 18,737 22,521 26,450 11,693,237 7,634,206 8,255,535 11,108,411 7,822,672 EXPENSES General government 1,170,919 1,169,713 1,137,821 1,138,751 1,157,447 Protective services 431, , , , ,605 Transportation 956, , ,370 1,000,084 1,015,047 Public health & welfare 161, , , , ,343 Development & planning 664, , , , ,851 Recreation and culture 715, , , , ,020 Economic development 167, , , , ,545 Debt interest 10,657 9,356 7,854 7,201 6,533 Sewer services 659, , , , ,848 Water services 735, , , , ,830 5,673,982 5,427,279 5,450,390 5,504,618 5,558,069 ANNUAL SURPLUS/(DEFICIT) 6,019,255 2,206,927 2,805,145 5,603,793 2,264,603 Deduct out: Debt actuarial revenue (11,589) (15,095) (18,737) (22,521) (3,807) Transfers from reserves & surplus for operations 283,000 10, , ,000 CASH AVAILABLE FOR CAPITAL & RESERVES 6,290,666 2,201,932 3,069,408 5,581,272 2,543,796 Transfers (to)/from other funds Transfers to reserves (988,967) (971,693) (1,101,169) (1,189,283) (1,171,725) Debt principal repayment (180,299) (298,239) (298,239) (298,239) (197,239) Debt proceeds Transfers from reserves for capital 3,974,449 2,306,000 1,605,500 1,080,000 3,210,768 Capital expenditures (9,095,849) (3,238,000) (3,275,500) (5,173,750) (4,385,600) DRAFT FINANCIAL PLAN BALANCE Previous years tax increases % 0.00% 1.85% 1.15% TBD Page 5 of 20

6 Budget 2017 General Operating Fund - Summary compared to 2016 budget PRELIMINARY $4,028,388 is the 2017 taxation revenue with a 0% tax increase $40,284 is a 1% tax increase ($13.65 per average residential home) Item Increase (decrease) from PY budget Funding Explaination for changes Comments SUMMARY OF CHANGES EFFECTING TAXATION REVENUE Legislative Costs (Council) - Various $4,750 Administrative - various $1,000 Finance - various $13,800 Economic Development $1,000 Fire services ($16,870) Public Works and Parks - Various $27,400 Planning and development services - various ($60,300) Community Development - various $30,000 Recreation ($10,800) Special events (net of revenue) $57,650 Debt payments $0 Attributible primarily to a $3k increase in travel and conferences and a few smaller items. Attributible to a $10k decrease in legal (from $50k to $40k) offset by increased costs related to various smaller items and allocation of salaries. Mainly attributable to increased computer maintenance costs. Other increases relate to audit fees and allocation of salaries. Total expense of $167k for 2017; of which $60k is for marketing; $30k is for Development Corp and $75,000 to Chamber for running the VIC. Attributible to decreases in various costs such as training, materials, etc. (NOTE - includes full-time fire chief for $70k) Increase is mainly attributable to increased training, equipment maintenance, signage and allocation of salaries Decrease is mainly attributible to a change in funding source for the DCC bylaw redo (changed to operating reserve in 2017) offset by an increase in staff wages Increase is a result of $30k for contract services for the development of campground. Included in this group of accounts are the following items which have not changed from PY - $20k for Parks master plan, $35k for Asset management plan (funded by grants), $5k for age/dementia friendly costs and $10k for Communities in bloom Mainly attributible to a decrease of salaries due to allocating a portion to special events. NOTE - This group of accounts includes $5.1k to Trial Alliance (PY was $5k - per Agreement) Increase mainly attributible to $41k in allocation of additional wages (50% from recreation and various public works), increase in fireworks to $30k (increase of $10k) and various other smaller items less $15k previously paid to Chamber. NOTE - includes stomp contribution of $10k and NOT the $15k that was given to the Chamber PY for events No change from PY - short term debt for Main street property loan payment ($101k). Chamber amount to be confirmed Chamber amount to be confirmed Funding of general capital items $54,050 Reserve contribution $0 Other various fixed revenue/expense items ($50,684) Increase from prior year in relation to funding general capital items (from $480k to $534k) No change from PY - $540k in total (includes amounts setup last year for campground and land reserve contributions) Net of various smaller revenue and expense items (mainly additional smaller revenues related to sale of services compared to PY) Net effect of changes related to taxation revenue $50, % Estimate of initial increase to taxes Page 6 of 20

7 Budget 2017 General Operating Fund - Summary compared to 2016 budget PRELIMINARY $4,028,388 is the 2017 taxation revenue with a 0% tax increase $40,284 is a 1% tax increase ($13.65 per average residential home) Item Increase (decrease) from PY budget Funding Explaination for changes Comments SUMMARY OF OPERATING RESERVE Legislative - Dr Recruitment $48,000 Reserves (operating) For the recruitment of two doctors ($30k) and a lifestyle incentive for two doctors ($18k) Administrative - website revamp $40,000 Engineering servicescontract services $30,000 Evironment development (dredging) - contract services $100,000 Planning and development services - contract services $65,000 Reserves (operating) Reserves (operating) Reserves (operating) Reserves (operating) Amount for website revamp (one-time cost) One-time costs for the completion of the subdivision and servicing bylaw redo Costs to pursue dedging of channel One-time costs for the review and update of the DCC and rezoning bylaws Net effect of changes to operational reserves $283,000 No direct effect on taxes Page 7 of 20

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9 Budget 2017 Water and Sewer Funds Summary of key changes from 2016 budget PRELIMINARY Increase (decrease) from Item PY budget SEWER FUND - KEY CHANGES Funding Sewer user fee revenue ($39,800) User fees Sewer operating expenses ($60,800) User fees Comments Increase in sewer revenues due to the expectation of additional connections Mainly due to decrease in contract services related to the collection system ($6.5k); lift stations ($5k); treatment plant ($6.5k); dewatering ($10k) and trucked waste ($25k) - amounts were decreased to be more reflective of actuals Sewer extension Phase II loan payments $33,092 (LAS) Increase in long term debt interest and principal from $198k to $231k as a result of flipping the last portion of the sewer extension debt to long term in PY. Increase in reserves from $262k to $364k due to reduced expenses and additional user fees. Contribution to sewer Includes contribution to sewer maintenance reserves $102,000 User fees reserve of $40k Sewer rates are in the process of being reviewed. Over the past few years there have been a significant amount of connections with no change to rates, resulting in additional revenue. Within the 5 year plan there is a 0% increase in sewer rates over the term (based on our current billing methods), with a healthy contribution to reserves (approximately $400k a year). WATER FUND - KEY CHANGES Water user fee revenue $44,500 User fees Water treatment plant operations ($21,700) User fees Decrease in revenues due to the conversion of properties from flat to metered Estimated decrease in costs of running treatment plant (from $252k to $230k). Second year of operations therefore overtime staff costs are expected to be significantly lower. Actual costs for 2016 were $246k. Water administrative costs ($19,000) User fees Water treatment plant - loan payments $0 revenue (LAS) Contribution to water reserves $0 User fees Decrease is attributable to a reduction in contract serves and various other smaller items (to be more in-line with PY actuals) No change from PY - interest only of $63k - flipping into LTD in fall From 2018 onwards loan principal and interest of $246k Reserves remain the same as PY at $160k. Includes contribution to water maintenance reserve of $30k Water rates are in the process of being review. Over the past few years there have been a significant amount of properties switching from flat to metered with no change to rates, resulting in decreasing revenue. Within the 5 year plan there is a 0% increase in water rates over the term, with contributions to reserves ranging from $160k to $140k. Page 9 of 20

10 DISTRICT OF SICAMOUS 2017 Budget - General Capital PRELIMINARY FIRE DEPARTMENT Pumper #4 replacement $ 500,000 Skid for Command Vehicle 20,000 Generator for building 35,000 Building upgrades - sewer and storm 30,000 GENERAL Computers, etc. 10,000 Exchange server upgrades 15,000 Generator for building 95,000 Equipment wraps 25,000 Webcams 20,000 RECREATION Beach park - floatation structure 150,000 Recreational trail signage 25,000 Pathways and trails 150,000 Various park upgrades 50,000 Entrance signs 225,000 Reader boards 75,000 REVISED Tennis Court resurfacing 50,000 Event equipment 25,000 Washroom facilities 35,000 REVISED BMX Bike Track 20,000 REVISED Cenotaph 40, BUDGET STAFF COMMENTS COUNCIL COMMENTS Previously $100,000 - did not receive C150 Grant Amount for work was previously not established Amount was previously $70k - see attached picture of area to be purchased for $14 per sf ROADS AND EQUIPMENT Riverside Avenue and Kappel 553,000 Shuswap Avenue - (Main to Martin) 600,000 Shuswap Ave -Utilties (Main - Temple) 350,000 REVISED Main to Martin - overlay 100,000 Previously not budgeted for REVISED Larch overlay - Forest to Conn 200,000 Reduced by $100k and reallocated above REVISED Maier -Mclean to Hwy overlay - Moved the $200k to 2018 Kappel overlay - Yew to Gillis 120,000 Old Town Bay - Landscaping 60,000 REVISED Old Town Bay - Roadworks 100,000 Reduced by $50k REVISED Center of Roundabout 269,050 Amount revised to reflect actual available for a total cost of $305k PW service bay with pit 150,000 Dump truck replacement 120,000 Kubota mower replacement 20,000 REVISED Kubota RTV replacement 25,000 Previously not budgeted for. RTV used for park and trail maintenance REVISED Truck - Operations Manager 44,000 Previously was $36k for Ford Ranger replacement (which was moved to 2018) TOTAL $ 4,356,050 Page 10 of 20

11 DISTRICT OF SICAMOUS 2017 Budget - Water and Sewer Capital PRELIMINARY 2017 BUDGET STAFF COMMENTS COUNCIL COMMENTS WATER Kappel/Riverside line upgrade $ 882,000 Shed at water treatment plant 10,000 Generators at Bayview and CPR 120,000 REVISED Solsqua Sicamous Rd extension of services 155,000 WATER TOTAL $ 1,167,000 SEWER Previously was $310k - split 50/50 between water and sewer WWTP upgrades (approved grant) $ 1,277,800 WWTP upgrades and lift stations (grant approval o/s) 1,600,000 REVISED Kappel/Cottonwood sewer works 350,000 Solsqua Sicamous Rd extension of services 155,000 Life station pump replacements 30,000 Odour control facility 100,000 REVISED Scada upgrades 60,000 SEWER TOTAL $ 3,572,800 Previously was only in water - split 50/50 between water and sewer Page 11 of 20

12 Budget 2017 Economic Opportunity Funding Amount Description currently in budget Funding Approved White Lights $ 75,000 Y Roundabout $ 150,000 Y Digital Signage $ 75,000 N Entrance signs $ 100,000 N Staff Comments This was approved previously; however was rescinded last year Total budgeted project cost of $225k (previously supported "in theory" by Rhona) Council Direction (approve project/seek funds/update dollar value) Page 12 of 20

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14 ORL Administration Office K.L.O. Road I Kelowna, B.C V1W 3P6 I p: f: e: admin@orl.bc.ca January 30, 2017 Mayor Terry Rysz CAO Evan Parliament District of Sicamous 446 Main Street PO Box 219 Sicamous, BC VOE 2VO Your Worship; Re: Cooperation to Retain ORL Hours of Opening As discussed in my recent visit to council, the library branch in the District of Sicamous is about to see the retirement of long time Community Librarian Eileen Veideman, whose commitment to literacy and learning and warm-hearted welcome of all library goers, will be missed. This change triggers a restructuring of staffing hours under a plan set forth in 2014, after an independent analysis by Grant Thornton accountants revealed that there was a gap between costs and revenues in some branches. In the case of Sicamous, changes in population and assessment values have meant the community has been paying less overall for library service, however that has served to widen the gap between the costs allocated to the local branch and the local, provincial, and regional district revenues allocated to it. At present, the annual shortfall in revenue to cover branch expenses is $41,906. To illustrate the change in levies for the District of Sicamous over time, the following chart provides a multi-year comparison: % Change Over Year Population Assessment Levy Prior Year Levy ,963 $92,174,213 $140, % ,913 $88,410,671 $141, % ,441 $80, 1 07,248 $129, % ,410 $78,708,727 $129, % ,439 $77,697,293 $128, % ,443 $76,965,067 $124, % At the council meetin g, I presented three service options, as follows: A. Reduce costs to align with existing revenue. Capture hours from recent retirement posting and reduce service hours to 21 from 25. No additional cost. B. Provide additional funding to keep existing staffing and service levels. Cost for this option in 2017 would be $21,100 for current levels. ~i~:ftn l!dllbc.ca P_ag-e Page 14 of 20 1 _ 0 2 _f 1

15 C. Provide additional funding to keep existing open hours but reduce staffing (stretching them more thinly in an already busy branch). This option would cost $6,800 in It would provide for five hours of staffing to restore four open hours. We have heard from patrons that open hours are of fundamental importance to the community, and therefore this option provides our most economical way of maintaining full open hours. Thank you for your time in considering this matter. Please let us know your decision at your earliest convenience. We are looking to finalize staff hours by the end of February. As mentioned previously, should the District of Sicamous wish to pursue a cost-sharing arrangement with the Regional District electoral area, the ORL can provide information to them and separate billing, should you be successful in negotiating one. The ORL strongly values its relationship with the District of Sicamous, and once again, I thank you for the time and commitment you have already shown in working with us on this. It is my sincere wish that we will continue in partnership for many years to come. Sincerely, Stephanie Hall Chief Executive Officer Okanagan Regional Library cc: Janna Simons, Sicamous Councillor/Board Trustee Page 2 of 2 Page 15 of 20

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