City of Port Moody Financial Plan. April 08, 2008

Transcription

1 City of Port Moody Financial Plan April 08, 2008

2 Presentation Contents 1. Financial Plan Process 2. Financial Position 3. Financial Plan Drivers 4. General Revenue Fund 5. Capital & Operating Projects 6. Utilities 7. Bottom Line 2

3 3 1. Financial Plan Process

4 Financial Plans - Legislative Section Year Plan 2008 to 2012 Budget may be amended anytime during the Year Section 197 Tax Rates Adopted by Bylaw before May 15, 2008 Section 166 Public Consultation Process 4

5 Financial Plans Internal Process Budget Guidelines Drafted June, 2007 Budget Packages Distributed - June 29, 2007 Budgets drafted by Departments July/August, 2007 Budget Reviews with Finance August 29-30, 2007 Finance Committee Deliberations Sept. to Mar Public Budget Participation Jan. 24, 2008 Public Budget Input Apr. 08,

6 6 2. Financial Position

7 Reserves, Reserve Funds & Surplus - December 31, 2007 Reserves Reserves for Operating $ 3,900,000 Reserves Reserves for Capital $ 8,000,000 Statutory Reserve Funds $ 6,200,000 Development Levies $ 5,400,000 Surplus Surplus from Operation $ 4,700,000 Total $ 28,200,000 **Amounts AUDITED March 31,

8 Port Moody Debt Per Capita Dollars $ Projected Projected Projected Projected Projected

9 Industrial Stabilization Reserve 2007 $205, $155, $155, $155, $155, $155,000 * Approximately $1 Million in Reserve at the end of ** Historically, the City received an approximate $500,000 annual Generating G Capacity Grant. In 2007, the Provincial Grant was increased by approximately $375,000. 9

10 Facilities Maintenance - Life Cycle Reserve Funding $244, $352, $335, $360, $425, $550, $625, $700, $750,000

11 E-COMM Reserve 911 Drawdowns 2007 $ 105, $ 83, $ 44, $ $ $ 0 Reserve Estimated Balance 2010 $ 0 11

12 Asset Renewal Reserve PSAB Initiative January 01, 2009 Infrastructure Deficit Financing Infrastructure Investment Federal & Provincial Shortfalls Finite Reserves Land Sales Development Builds not Replaces 12

13 Asset Renewal Reserve (con t.) 2007 $ 50, $250, $260, $270, $280, $290,000 13

14 14 3. Financial Plan Drivers

15 Inflationary Issues Estimated at approximately $100,000 Fuel (10%) General inflation - materials, supplies, etc.(2%) Utilities - BC Hydro (5%), Terasen Gas (5%), Telus (3%) Port Competitiveness (PCT Terminals) - Class 4 Taxpayers subsidizing the PROVINCIAL Shortfall Provincial Grant for designated Port facilities CAPPED at 2003 level of $494,000 - Should be $ 594,000. Land Assessed value growth limited to CPI; normally at Market Value - $26,000 impact 15

16 Insurance Insurance Markets Liability down $20,000 (market softening) Property up by $15,000 new higher valued buildings (Rec. Ctr.; Police) Vehicle - $127,000 to $135,000 (Stable) additional vehicles to insure mitigated in part by Fleet Discount of 45% 16

17 17 4. General Revenue Fund

18 Growth Factors Real growth (new construction estimate) 2007 $1,320,000/yr (6.93%) 2008 $690,000/yr (3.17%) 2009 $804,000/yr (3.50%) 2010 $373,000/yr (1.50%) 2011 $133,000/yr (0.50%) 2012 $139,000/yr (0.50%) 18

19 Terasen Gas 1% Utility Revenue Tax (based on 2006 actual natural gas sales) $212, $319, $319, $319, $319, $319,000 19

20 BC Hydro Generating Capacity Grant 2008 additional grant brought into base revenues $50,000 ** Grant escalated in 2007 from $503,000 to $876,000; grant increase of $373,000 was not recognized and added to base revenues but transferred to reserve; in 2008, $50,000 of $373,000 added to base revenues 20

21 Other Revenue Sources Inlet Centre Residences 96 Units ($1.3M lease payments over a 60 year lease) $90,000 in annual lease payments and investment earnings Ongoing property tax ($24,000) & utilities ($51,000 - net of 5% discount) 21

22 Other Revenue Sources (cont d.) CPR Lease Public Safety Building $52,750 - Annual Lease Payments $30,000 - Utilities & Maintenance 22

23 Other Revenue Sources (cont d.) Boathouse Restaurant Revenues Land Lease % of Property Sales * Tax Utilities** Total 2008 $ 45,000 $ 105,000 $ 32,000 $ 12,000 $194, $ 45,000 $ 122,500 $ 33,600 $ 12,000 $213, $ 45,000 $ 140,000 $ 35,300 $ 12,000 $232, $ 45,000 $ 148,500 $ 36,900 $ 12,000 $242, $ 45,000 $ 160,100 $ 38,500 $ 12,000 $255,600 * City shares 3.5% in revenues above $3 Million ** Future Utility amounts unknown based on usage 23

24 Labour Impact (including Benefit Overhead) 2008 $ 1,676, $ 1,101, $ 1,048, $ 827, $ 1,045,000 CUPE Labour Contract renewed until March 31, 2010 Fire & Police Contracts under Negotiations (conservative amounts set aside) Management increases have been factored in for at similar levels to CUPE 24

25 Operational Changes Community Services Department Expanded Recreation Centre Increased program revenues over 2007 $311,000 Labour (workers/instructors/convenor/clerk/leaders) $229,800 Miscellaneous (On line Registration; Advertising) $ 16,200 Increased Program Revenues Kyle/Hert. Mtn. $ 19,500 Facilities Utilities (heat, light, hydro) $ 45,600 25

26 Operational Changes (cont d.) Engineering, Parks & Operations Department Fleet (maintenance, fuel, etc.) $25,000 Urban Forestry $10,000 Garage Charge-out Rate increase $11,000 Park s s Contracts reductions $41,000 26

27 Operational Changes (cont d.) Fire Department (6) Fire Fighters (2007 hires annualized) $ 134,200 (2) Fire Fighters (2008) $ 120,300 2 Deputy Fire Chief (annualize 2007 hires) $ 101,600 Promotions $ 138,500 Fire Hall # 2 (maint., supplies, equip., etc.) $ 46,800 Fleet (maint., fuel, etc.) $ 29,000 Overtime Reduction $ 50,000 Retirement Savings (hiring at lower entry levels) $ 85,700 (2) Fire Fighters (2009) $ 173,000 (3) Fire Fighters (2010) $ 259,000 Annualize 2010 hirings (2011) $ 71,000 27

28 Operational Changes (cont d.) Police Department 22 Constables/1 Office Mgr. (2007 hires annualized) $ 140, Constables (Phased) $ 127,500 Equipment upgrades $ 35,600 Fleet (maintenance, fuel, etc.) $ 54,000 Supplies (radios, uniforms, etc.) $ 70,000 Special Events Overtime $ 47,600 Revenue Increase ($90k Traffic Fines; $10k misc.) $ 100, : 2012: 7 Constables; 2 Civilian Staff $ 490,000 28

29 Operational Changes (cont d.) Library Books & Audio/Video $ 12,200 Increased Revenues BC One Card Grant $ 16,000 Memberships $ 10,000 29

30 Operational Changes (cont d.) Planning & Development Services Department Development Revenue Reduction (Permits, Fees) $ 223,000 Planning Clerk (Position Eliminated) $ 50,000 Increased Revenues (Business and Dog Licence fees) $ 17,500 30

31 Operational Changes (cont d) City Administration Department City Clerk Assistant position eliminated $ 53,000 Auxiliary Clerk position eliminated $ 15,500 31

32 Operational Changes (cont d) Strategic Planning/Culture Department Manager of Cultural Services position eliminated (less $30,000 support wages) $75,000 Tourism projects eliminated $12,000 Web Developer position eliminated ** $48,000 Transfer from Reserve to fund Web Developer position eliminated ** $48,000 ** Zero Dollar impact to budget these two items offset 32

33 Operational Changes (cont d) Finance & IT Department Phone Savings (new VOIP system) $29,000 Liability Insurance reduction $20,000 33

34 34 5. Capital & Operating Projects

35 Parks & Facilities Westhill Greenway Development (2008) $ 200,000 Pigeon Cove Boardwalk Replacement (2009) $ 540,000 Trail Development (2009/10) $ 80,000 Old Arena Roof Replacement (2010) $ 218,000 Dredge Rocky Point Park Boat Launch (2010) $ 120,000 Facility Maintenance/Upgrades (Ave./Yr.) $ 564,000 Tree Replacements (Ave./Yr.) $ 24,000 Park Amenities (Ave./Yr.) $ 20,000 35

36 Public Safety Fire Dept. Records Mgmt. System (2008) $210,000 Public Safety Building Artwork (2009) $ 87,000 Repl. / Refurb. Police Vehicles (Ave. /Yr.) $151,000 Replace Fire Equip (Ave./Yr.) $ 89,000 Replace Police Equip (Ave./Yr.) $ 20,000 36

37 Arts, Culture & Library Rocky Point Park Bandshell (2008) $ 129,000 Cultural Capitals Designation (2008/09/11) $ 145,000 Various Theatre Upgrades (Ave./ Yr.) $ 38,000 Public Art Projects (Ave./ Yr.) $ 45,000 Outdoor Stage Cover (2011/12) $ 210,000 New Library Building ( ) ** $27,034,000 ** Preliminary Estimate 37

38 Transportation Murray Clark Connector ( ) $50,000,000 Barnet Hwy/Ioco Intersect. Improve (2008) $ 215,000 Murray/Moody Intersect. Improve. (2008/09) $ 85,000 Noons Crk/Falcon Dr Intersect. (2010) $ 200,000 Noons Creek Bridge Repl. (along Ioco)(2008) $ 1,300,000 Ped./Bike Facilities (Moody Overpass)(2012) $ 790,000 Bridge Repairs/Inspect./Upgrades (Ave./Yr) $ 142,000 Traffic Calming/Safety/Improv. (Ave./Yr) $ 138,000 Traffic/Pedestrian Signals (Ave./Yr) $ 22,000 Sidewalk Upgrades (Ave./Yr) $ 25,000 38

39 Land Management & Sustainability Barnet Landfill Redevelopment (2008) $ 2,180,000 Asset Management Project (2008) $ 500,000 Land Management Project Mgmt. (2008) $ 100,000 Works Yard Land Acquisition (2009) $ 1,000,000 39

40 Equipment Upgrades Vehicles (Ave./Yr.) $ 270,000 Server Upgrades (Ave./Yr.) $ 63,000 40

41 41 6. Utilities

42 Water System Utility (Net of 5% Discount) $281 Full cost less 5% discount = $ Costs driven by GVWD (10% increase) $25,500 Annual Contribution to Technology Reserve LT infrastructure Plan - $710,000 transfer to Capital Reserve for 2008 increasing to $1,370,000 in Secondary Suites Contribute $32,000 net Revenues Annual user rate changes ($1 rate increase generates approximately $11,700) $ $ $ $ $ 25

43 Sanitary Sewer Utility (Net of 5% Discount) $247 Full cost less 5% discount = $ Bulk of costs driven by GVS&DD (55%) $25,500 Annual Contribution to Technology Reserve LT infrastructure Plan - $900,000 transfer to Capital Reserve for 2008 increasing to $1,400,000 in Secondary Suites Contribute $22,000 net Revenues Annual user rate changes ($1 rate increase generates approximately $11,700) $ $ $ $ $ 8

44 Garbage & Recycling Utility (Net of 5% Discount) $186 Full cost less 5% discount = $ Metro Vancouver tipping fees cost driver for Garbage (41%) Recycling is achieving results; no cost/revenue for recycling Garbage Contractor International Paper Industries (IPI) 4 th Year of 5 Year contract Expires July/09) (1.5% Contractual Increases for years ) 2009) Combined user rates changes ($1 increase generates $11,100) $ $ $ $ $ 4

45 Storm Drainage Utility (cont d.) ($510,000 Average Assessed Home for 2008 (Estimated) Transferred to amalgamated fund named Sewer and Storm Drainage Fund Not a User Fee costs recovered through property taxes Estimated increases per average household; $45 cost per average home 2008 $ $ $ $ $ 2 45

46 46 7. Bottom Line

47 Executive Summary 2008 Budget The General Revenue Fund 2008 expenditures increased by $2,498,000 over Following are the significant revenue and expenditure changes: Net NEW Tax Revenue (Construction Growth 3.17% plus assessment appeals) a $ -734, % Revenue Increases (e.g.( Boathouse, utility companies, traffic fines, BC Ambulance ) -599, % Recreation Centre Opening (new positions/costs less revenues) - NET revenues -46, % Eliminated Positions (Manager of Culture, Web Developer, clerical cal positions) -231, % Reserve Transfer Changes (e.g.( Asset Renewal, Industrial Stabilization) -170, % Revenue Decreases (Development Permits) 211, % Recreation Centre Levy Discontinued (approved for years ) 228, % New Services/Facilities (Public Safety Building, Fire Hall#2, Urban Forestry) 111, % ECOMM (Fire & Police workstations/radios; Fire records management t system) 55, % Approved Positions - annualize from 2007 (Fire: 6 Fire Fighters/ Deputy; Police) 375, % Proposed Positions 2008 (Fire: 2 Fire Fighters; Police: 3 Constables, 1 Crime Analyst) 269, % Labour Salaries/Wages (collective agreement, cost of living) 638, % Labour Other (OT/auxiliary hours, job re-classifications, salary scale increments) 410, % Other (inflation, equipment & supplies, fleet expenses, leases, miscellaneous) 261, % Amount needed from Property Taxes to balance $ 780, % 47

48 2008 Revenue Sources ROM RESERVES/FUNDS RE: GENERAL OPERATING 20,635 ROM RESERVES/FUNDS RE: GENERAL OPERATING Grants -13,600 Reserve ROM RESERVES/FUNDS RE: GENERAL OPERATING in Lieu -50,000 Transfers ROM RESERVES/FUNDS RE: GENERAL OPERATING -40,800 3% 2% ROM RESERVES/FUNDS RE: GENERAL OPERATING -8,000 ROM RESERVES/FUNDS RE: GENERAL OPERATING -5,000 ROM RESERVES/FUNDS Utilities RE: GENERAL OPERATING -11,560 CCUMULATED SURPLUS 18% RE: GENERAL OPERATING -23,700 CCUMULATED SURPLUS RE: GENERAL OPERATING -126,000 CCUMULATED SURPLUS RE: GENERAL OPERATING -31,600 CCUMULATED SURPLUS RE: GENERAL OPERATING -17,100 CCUMULATED SURPLUS RE: GENERAL OPERATING -2, , ,310 0 Other Sources 7% Fees & Charges 12% Taxes -23,730,824 Taxes $23,730,824 Tax Fees & Charges -5,135,651 Fees & Ch $5,135,651 Fee Utilities -7,734,932 Utilities $7,734,932 Utili Grants in Lieu -1,020,953 Grants in L $1,020,953 Gra Reserve Transfers -957,310 Reserve T $957,310 Res Other Sources -2,765,102 Other Sour $2,765,102 Othe -41,344,772 $41,344,772-41,344,772 Taxes 58% 48

49 2008 Resource Comparison Training & Development 1% Vehicles 4% Salaries & Wages 69% Contracts & Fees 15% Supplies & Equipment 8% Telephone 1% Heat & Light 2% 49

50 2008 Departmental Expenditures Police 18% Fiscal Services 3% City Admin 6% Strat. Planning 2% Culture 2% Recreation 13% Fire 12% Eng'g & Ops 10% Library 4% Planning 4% Finance & IT 6% Parks & Env'l Services 4% Utilities (incl. Drainage) 16% 50

51 2003 Budget vs Budget 2003 Protective Services 35% Protective Services 47% City Departments 65% City Departments 53%

52 Impact of Utility Charges (* net of 5% Discount) Increases Sanitary Sewer * $ 235 $ 214 $ % Water * % Garbage/Recycling * % Subtotal $ 679 $ 628 $ % Storm Drainage % Total $ 724 $ 665 $ % 52

53 Impact of Property Charges $510,000 Average Assessed Home for 2008 (Estimated) ** Changes General Taxation $1,452 $1,387 $65 4.7% Rec. Centre Levy % Total $1,452 $1,402 $50 3.6% ** Approximate Values Based on January, 2008 BCA Completed Assessment Roll 53

54 Impact of Total Property Charges $510,000 Average Assessed Home for 2008 (Estimated) ** Increases General $ 1,452 $ 1,387 $ % Recreation Centre Levy % Subtotal Tax $ 1,452 $ 1,402 $ % Storm Drainage Levy $ 45 $ 37 $ % Utilities (W/S/G) $ 679 $ 628 $ % Total Taxes/Utilities $ 2,176 $2,067 $ % ** Approximate Values Based on January, 2008 BCA Completed Assessment Roll 54

55 Percentage Impact on Property Charges Future Years (Estimated) Property Tax Storm Drainage Utilities % 21.6% 8.1% % 13.3% 10.8% % 13.7% 10.3% % 3.4% 4.0% % 3.3% 4.2% 55

56 Dollar Impact on Property Charges - Future Years (Estimated) Property Tax Storm Drainage Utilities Total 2008 $ 50 $ 8 $ 51 $ 109 ** 2009 $ 70 $ 6 $ 73 $ $ 76 $ 7 $ 77 $ $ 71 $ 2 $ 33 $ $ 70 $ 2 $ 36 $ 108 ** $109 Dollars is approximately $2 per week 56

57 TOTAL 2007 Tax Bill Comparison (Based on Average Household in Year) 57 City Taxation 71% 29% Assumes Home Owner Grant deducted For School Tax Without Home Owner Grant deduction, Other Agencies charges would be 47% of the Tax Bill Other Agencies (School Tax, GVRD, GVTA, BCA, MFA) 29%

58 58 Your Tax Notice

59 Your Tax Notice (con t.) 3.58% 59

60 Public Input Questions?? 60 Suggestions!!