DISTRICT OF TOFINO SPECIAL COUNCIL MEETING. Council Chamber, Municipal Office May 5, 2015 at 10:00 AM AGENDA

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1 DISTRICT OF TOFINO SPECIAL COUNCIL MEETING Council Chamber, Municipal Office May 5, 2015 at 10:00 AM AGENDA Page 1. CALL MEETING TO ORDER 2. ADOPTION OF AGENDA 3. DELEGATIONS 4. REPORTS Financial Plan (Report from Financial Services) 5. BYLAWS Public Consultation: Delegations wishing to speak to the "District of Tofino Financial Plan Bylaw No. 1206" or the District of Tofino 2015 Annual Tax Rates Bylaw No Recommendations: 1. THAT the report Financial Plan Bylaw and 2015 Annual Tax Rates Bylaw dated May 5, 2015 be received for information. 2. THAT District of Tofino Financial Plan Bylaw No be introduced and read a first, second and third time. 3. THAT District of Tofino 2015 Annual Tax Rates Bylaw No be introduced and read a first, second and third time RTC Financial Plan Bylaw and 2015 Annual Tax Rates Bylaw RTC Project Listing by Service Area - Appendix RTC Capital and Project Budgets by Service Area - Appendix RTC Financial Plan Bylaw No Appendix RTC Annual Tax Rates Bylaw No Appendix 4 6. ADJOURNMENT May 5, 2015 Special Council Agenda Page 1 of 27

2 MEETING DATE May 5, 2015 The Corporation of the District of Tofino REPORT TO COUNCIL A/T #: CR- n/a TO Mayor & Council File #: FROM SUBJECT RECOMMENDATION Nyla Attiana, Director of Financial Services Financial Plan Bylaw and 2015 Annual Tax Rates Bylaw 1. THAT the report Financial Plan Bylaw and 2015 Annual Tax Rates Bylaw dated May 5, 2015 be received for information. 2. THAT District of Tofino Financial Plan Bylaw No be introduced and read a first, second and third time. 3. THAT District of Tofino 2015 Annual Tax Rates Bylaw No be introduced and read a first, second and third time. CAO S COMMENTS I concur with the recommendation of the Director of Financial Services. PURPOSE The purpose of this report is to summarize the Financial Plan Bylaw being introduced to Council at the May 5, 2015 Special Council Meeting. STRATEGIC PRIORITY OF COUNCIL Not applicable. FINANCIAL IMPACTS The adoption of the Financial Plan Bylaw authorizes staff to expend funds in accordance with the plan. The adoption of the 2015 Annual Tax Rates Bylaw authorizes staff to levy property value taxes at the rates set out in the bylaw. BACKGROUND The first budget meeting for the Financial Plan was held on April 1, 2015 as a Special 1 Page 2 of 27

3 Meeting of Council. A follow up meeting was held on April 23, 2015 as a Special Meeting of Council. At the April 23, 2015 meeting staff was provided with the direction required to prepare a balanced and final draft of the 5 year financial plan. The draft financial plan forms the schedules in the Financial Plan Bylaw as attached in Appendix 3. Section 166 of the Community Charter states that a council must undertake a process of public consultation regarding the proposed financial plan before it is adopted. Staff was provided with direction on April 23, 2015 to host two public consultation events regarding the Financial Plan on the following dates: Special Meeting of Council: Tuesday, May 5, 2015 at 10 am in the Council Chamber Public Consultation Event: Thursday, May 7, 2015 from 4 pm to 6 pm in the Council Chamber At the Special Meeting of Council on May 5, 2015 staff will present the 2015 to 2019 Financial Plan after which time there will be an opportunity for questions and comments from the public. After this discussion the bylaws will be introduced to Council. DISCUSSION Financial Plan Bylaw The financial plan includes the following property taxation increases: % % % % % The property value tax levy (PVTL) charged for infrastructure related project is being charged as follows for the five year term: 2015 $451, $330, $480, $440, $485,000 The projects funded by the PVTL infrastructure levy in 2015 are as follows: Project Project Value 2015 PVTL Value Barrs Mountain/ Bay Street Reserve $75,000 $75,000 Bay Street Water Treatment Upgrade Engineering $144,000 $110,200 Neill Street Water Main Upgrade 3rd Street to 4th $266,000 $266,000 Street Total 2015 PVTL for Infrastructure: $451,200 2 Page 3 of 27

4 The District s Financial Plan is separated into the following segments: General Segment: Capital Segment: Water Segment: Sewer Segment: This segment summarizes the operating expenses for all services of the municipality excluding water and sewer. This segment summarizes the capital expenditures for all District services. This segment summarizes the operating expenses for the water service. This segment summarizes the operating expenses for the sewer service. The 2015 Project Listing by Service Area is attached as Appendix 1 to this report. Since the April 23, 2015 meeting there have been no further changes to this listing. The items highlighted in yellow and green have received early budget approval by way of Council resolution at the April 1 st or April 23 rd meeting. The Capital and Project Budgets by Service Area is attached as Appendix 2 to this report. The changes made to this listing since the April 23, 2015 special meeting are as follows: 1. Recreation: The budget for Bert Demeria Park upgrades was reduced in 2017 to $45,000 from $100,000 and remains unchanged at $100,000 for years 2018 and Sewer: A transfer to reserve was added for years 2016 to 2018 to plan for the 2019 expense of the sewage treatment plan. 3. Sewer: The funding source for the sewage treatment plant in 2019 changed by reducing the funding amount from grants and increasing the transfer from reserves based on item 2 above. An allocation from 2019 sewer revenue has been added as well. The following changes have been made to the 2015 to 2019 Financial Plan since the April 23, 2015 meeting: 1. The Taxation increase in 2016 increased to 8% from 2%. The taxation increase in 2017 decreased to 2% from 5%. 2. The changes to the renewed agreement between the District of Tofino and CUPE Local 118 have been reflected in the financial plan. 3. The installation of the Weeping Cedar Woman has been added in the amount of $2,680 which is the balance of donations received for public art. 4. The wage for the full time Bylaw Enforcement Officer has been divided at 80% to Bylaw and 20% to Emergency Planning. This remains consistent with the prior year. This item was presented at the April 23 rd meeting as an 100% expense to Bylaw. The financial plan must be adopted before the annual tax rates bylaw and before May 15 th of each year. The bylaw will be brought forward for adoption at a Special Meeting of Council on May 14, 2015 at 8:30 am Annual Tax Rates Bylaw: The 2015 tax rates have been established based on the expenses in the Financial Plan. Municipal taxes consist of a General Municipal rate, PVTL and Debt rates. The General 3 Page 4 of 27

5 Municipal Rate is collected to provide the services of financial management and administration, corporate services, daycare, bylaw, planning, recreation, public works, building inspection, protection services including fire and emergency planning, and Resort Municipality Initiative services. The PVTL is collected to fund infrastructure projects in the year. The Debt rate is collected to service the long term debt of the municipality. Other tax rates include taxes collected by the municipality on behalf of other agencies. These taxes are then remitted at 100% to the corresponding agencies. The following table compares the 2015 levies from the agencies to the 2014 levies. 2014/2015 AGENCY PROPERTY TAX Agency % Increase/ (Decrease) Library $ 144,550 $ 155,757 8% Hospital $ 323,053 $ 271,905-16% Regional District $ 400,351 $ 468,154 17% BCAA $ 60,070 $ 58,516 (-3%) MFA $ 184 $ 186 1% School $ 2,043,359 Unconfirmed N/A Police $ 213,558 Unconfirmed N/A As of April 29, 2015 the agency taxes for School and Police were unknown. Staff will provide an update at the May 5, 2015 meeting with respect to the 2015 taxes for these agencies, should they be available. Agency taxes are sent to the District as a total dollar amount or as mill (tax) rates to be applied against assessments. The Annual Tax Rates Bylaw excludes agency taxes that are based on mill rates. The mill rates included in the tax rates bylaw are included in Appendix 4 of this report. The Annual Tax Rates Bylaw must be adopted after the Financial Plan bylaw each year. The bylaw will be brought forward for adoption, after the Financial Plan bylaw, at a Special Meeting of Council on May 14, 2015 at 8:30 am. Respectfully submitted, Nyla Attiana, Director of Financial Services Appendices: Project Listing by Service Area Capital and Project Budgets by Service Area Financial Plan Bylaw, No. 1206, Annual Tax Rates Bylaw, No. 1207, Page 5 of 27

6 2015 Project Listing by Service Area Early Budget Approval April 1, 2015 Early Budget Approval April 23, 2015 Service Area Project Name Cost Funding Source/Annual Costs/Notes: Administration/Finance Phone System 12,535 Taxation Photocopier 10,968 Taxation Corporate Services Records Management Needs Assessment & Strategic Plan 35,000 Taxation Website Refresh 6,000 Taxation Bylaw Regulatory Bylaw Update - Business Licensing & Animal Control 30,000 Taxation Seasonal Bylaw Officer Position 32,381 Taxation Planning Affordable Housing Study 42,000 Affordable Housing Reserve; Taxation ICSP Monitoring 2,500 Taxation OCP Monitoring 2,500 Taxation Subdivision and Development Bylaw # ,000 Taxation Zoning Bylaw Update 60,000 $14,470 Zoning Reserve; Taxation Recreation Centennial Park Basketball Court 9,500 TRC Restricted Revenue Community Hall - Event Chairs 3,000 Taxation Community Hall - Stage Upgrades 10,000 Taxation; Donation $500 Feasibility Study for Indoor Sports Facility 25,000 $5,000 Recreation Commission; $20,000 Taxation Recreation Equipment Reserve 2,500 Taxation Recreation Master Plan Review 750 Taxation Recreation Van Reserve 12,000 Taxation Street Wise Cycling 3,000 Taxation Public Works Fourth Street Storm Sewer Extension to Neill Street 69,000 General Capital Unrestricted Reserve Repairs to Unit 2 32,000 PW Equipment Bylaw Reserve Second Street Storm Sewer Engineering 20,000 General Capital Unrestricted Reserve Tree Maintenance 15,000 Taxation Hellesen Drive Road Reconstruction 617,183 Roads Infrastructure Reserve Fund Fire Department Firehall Maintenance Operations Reserve 20,000 Taxation Capital Reserve Fund Transfer 75,000 Taxation Emergency Planning ESS Supplies 3,000 Taxation Flood Plain Mapping 25,000 2,500 from OCP Reserve; Taxation Muffler for EOC Generator 3,500 Taxation Page 6 of 27 RMI Services Hellesen Drive Beach Access 196, , 2014, 2015 RMI Main Street Upgrade 750, , 2015 RMI; Grant; Possible Gas Tax and Parking in Lieu Multi-Use Path Extension - Olsen to Gibson 85,163 CIPP Grant(50% Matching), Gas tax, RMI 2014 Telus Lot - DTVit 35,000 Donation from Telus; Parking in Lieu Tonquin Trail Extension 135, & 2014 RMI

7 Service Area Project Name Cost Funding Source/Annual Costs/Notes: Water Barrs Mountain Reservoir and Watermain Upgrade 1,223,555 New Building Canada Fund, Water Capital Bylaw Reserve; 2014 PVTL Barrs Mountain Reservoir Upgrade Engineering PVTL from Water Capital Bylaw Reserve Barrs Mountain/ Bay Street Reserve 75, PVTL Bay Street Chlorine Conversion 47,000 Water Capital Bylaw Reserve Bay Street Water Treatment Upgrade Engineering 144,000 $33, PVTL; $110, PVTL Low Flow Analysis Water Sources 26, Water Revenues Neill Street Water Main Upgrade 3rd Street to 4th Street 266, PVTL Scada Improvements Water 19, Water Revenues Standby Generator Interzonal House 50,500 50,000 Water Infrastructure Unrestricted Reserve; $ Water Revs Water Utility Rate Review 8, Water Revenues Sewer Lid Replacement- Lift Station , Sewer Revenues Lift Station #13 Flow Metering 18, Sewer Revenues Lift Station #7 Flow Metering 18, Sewer Revenues Liquid Waste Management Plan 75, Sewer Revenues Scada Improvements 19, Sewer Revenues Sewer Utility Rate Review 18, Sewer Revenues Sewermain Repair Intersection 4th and Neill Street 15, Sewer Revenues Wet Well Washer Installation 15,000 Sanitary Sewer Utility Reserve Page 7 of 27

8 Capital and Project Budgets by Service Area Public Works: PROJECT NAME 2016 Funding Source 2017 Funding Source 2018 Funding Source 2019 Funding Source Foreman Vehicle $ 9,000 equipment reserve $ 9,000 equip reserve $ 9,000 equip reserve $ 9,000 equip reserve Manager Vehicle $ 9,000 equip reserve $ 9,000 equip reserve $ 9,000 equip reserve Backhoe $ 28,000 equip reserve $ 28,000 equip reserve Storm sewer upgrade Second Street $ 120,000 General Reserve Engineering for storm sewer $ 15,000 taxation $ 15,000 taxation $ 20,000 taxation $ 20,000 taxation Transfer to Roads Reserve $ 80,000 taxation $ 80,000 taxation $ 80,000 taxation $ 80,000 taxation Storm sewer upgrade Fourth Street $ 70,000 General Reserve Storm sewer upgrade Third Street $ 120,000 Taxation Curb, gutter and sidewalk upgrade Second Street $ 120,000 Roads Reserve Storm sewer Gibson Street $ 130,000 General Reserve Road Surface Gibson Street to Fourth Street $ 500,000 road reserve Water: Neill Street Watermain $ 410,000 PVTL SCADA improvements $15,000 water revenue Gibson Street watermain 245,000 PVTL Transfer to Reserve - Bay Street Pumphouse $300,000 PVTL 75,000 PVTL Watermain Engineering $30,000 PVTL $30,000 PVTL $30,000 PVTL $30,000 PVTL Source Low Flow Analysis 26,000 water revenue 26,000 water revenue 26,000 water reveune 26,000 water revenue GIS locates of District Infrastructure AMP 15,000 water revenue 15,000 water revenue Bay Street Treatment Upgrade (building) 175,000 Reserve (PVTL) Fourth Street Watermain Upgrade 150,000 PVTL Generator Ahkmahksis WTP 50,000 water revenue 50,000 water revenue Bay Street Treatment Upgrade 650, K Reserve (PVTL); 375,000 PVTL Engineering storage reservoir for #1 Creek 60,000 PVTL Sewer: SCADA improvements 15,000 sewer revenue 15,000 sewer revenue 15,000 sewer revenue 15,000 sewer revenue Electrical service replacement LS ,000 sewer revenue LWMP 30,000 sewer revenue 30,000 sewer revenue GIS locates of District Infrastructure AMP 10,000 sewer revenue 10,000 sewer revenue Maltby Lift Station Upgrade 25,000 MTSA Reserve 400,000 MTSA reserve Twining of Maltby SPS to Lynn SPS sewer main 1,223,000 MTSA reserve/reserve $283,000/$500,000 Grants Upgrade to Lift Station #7 175,000 Sewer Capital Reserve Wastewater treatment plant 45,000 $45,000 PVTL; $155,000 Sewer Capital Reserves 7,000,000 Reserves $610,000/$4.01 million Grants/Debt $2.183 million/195, Sewer Revenues Gibson Street sewer main 180,000 Sewer Capital Reserve Sewage Treatment Plant - TFR to Reserve Water Revenue water revenue water revenue Emergency Planning: Tsunami sirens $ 20, Taxation $ 20, Taxation $ 20, Taxation $ 20, Taxation Emergency Supplies Reserve $ 5, Taxation $ 5, Taxation $ 5, Taxation $ 5, Taxation Tree Maintenance $ 10, Taxation $ 10, Taxation $ 10, Taxation $ 10, Taxation Planning: OCP Review - Reserve $ 20,000 Taxation $ 20,000 Taxation $ 30,000 Taxation $ 20,000 Taxation Ortho Photos - Reserve $ 2,500 Taxation $ 2,500 Taxation $ 2,500 Taxation $ 2,500 Taxation Zoning Review - Reserve $ 30,000 Taxation $ 30,000 Taxation OCP Review/Ortho photos $ 105,000 OCP Reserve Monitoring (OCP/ICSP) $ 5,000 Taxation $ 5,000 Taxation $ 5,000 Taxation $ 5,000 Taxation Page 8 of 27

9 PROJECT NAME 2016 Funding Source 2017 Funding Source 2018 Funding Source 2019 Funding Source Recreation: Programming Equipment - Reserve $ 2,500 Taxation $ 2,500 Taxation $ 2,500 Taxation $ 2,500 Taxation Village Green Playground - Reserve $ 5,000 Taxation $ 5,000 Taxation $ 5,000 Taxation $ 17,500 Taxation Van/Bus $ 12,000 Taxation $ 12,000 Taxation $ 12,000 Taxation Bert Demeria Park $ 45,000 Taxation $ 100,000 Taxation $ 100,000 Taxation Indoor Recreation Facility Design $ 50,000 Taxation Bylaw: Regulatory Bylaw Updates $ 30,000 Taxation $ 30,000 Taxation Corporate Services: Records Management Tech Position $ 66,286 Taxation $ 66,286 Taxation Records Management $ 22,000 Taxation $ 24,000 Taxation $ 20,000 Taxation Page 9 of 27

10 CORPORATION OF THE DISTRICT OF TOFINO DISTRICT OF TOFINO DISTRICT OF TOFINO FINANCIAL PLAN BYLAW NO. 1206, 2015 Effective Date May X, 2015 Page 10 of 27

11 DISTRICT OF TOFINO FINANCIAL PLAN BYLAW NO. 1206, 2015 A Bylaw to approve the 5 Year Financial Plan for the years WHEREAS pursuant to Section 165 of the Community Charter, a municipality must have a financial plan that is adopted annually; AND WHEREAS the planning period for a financial plan is 5 years; NOW THEREFORE the Council of the District of Tofino, in open meeting assembled, enacts as follows: 1. Citation This bylaw may be cited for all purposes as District of Tofino Financial Plan Bylaw No. 1206, Schedules Schedule A attached hereto and forming part of this bylaw is hereby declared to be the Five Year Financial Plan of the District of Tofino for the period January 1, 2015 to and including December 31, Schedule B attached hereto and forming part of this bylaw is hereby declared to be the Statement of Objectives and Policies in accordance with Section 165 (3.1) of the Community Charter. 3. Repeal The District of Tofino Financial Plan Bylaw No. 1202, 2014 is hereby repealed. READ A FIRST TIME on May 5, 2015 READ A SECOND TIME on May 5, 2015 READ A THIRD TIME on May 5, 2015 ADOPTED on May, 2015 Josie Osborne, Mayor Robert MacPherson, Corporate Officer Financial Plan Bylaw No.1206, 2015 Page 2 of 14 Page 11 of 27

12 Schedule A Financial Plan Bylaw Bylaw No.1206, 2015 District of Tofino General Segments 5 Year Financial Plan Fiscal Years 2015 to 2019 inclusive Revenues Property Tax - Residential $ (1,774,377) $ (1,835,607) $ (1,952,178) $ (1,988,659) $ (2,023,030) Property Tax - Utility $ (18,548) $ (18,946) $ (20,160) $ (20,536) $ (20,890) Property Tax - Commercial $ (1,351,857) $ (1,401,777) $ (1,490,655) $ (1,518,516) $ (1,544,771) Property Tax - Recreation/Non-Profit $ (41,433) $ (42,898) $ (45,621) $ (46,473) $ (47,277) Excess Levies re: Supplements $ - $ - $ - $ - $ - GILT/PILT and other levies in lieu of taxes $ (108,490) $ (110,659) $ (114,922) $ (117,221) $ (119,565) Total Revenue from Property Taxes $ (3,294,705) $ (3,409,887) $ (3,623,536) $ (3,691,405) $ (3,755,533) Parcel Taxes $ - $ - $ - $ - $ - Fees and Charges $ (596,193) $ (595,126) $ (601,211) $ (606,465) $ (612,610) Proceeds from Borrow ing $ - $ - $ - $ - $ - Proceeds from Grants $ (1,719,380) $ (1,015,929) $ (1,016,408) $ (1,016,896) $ (1,017,394) Proceeds from Amenity Restricted Revenue $ - $ - $ - $ - $ - Proceeds from Parkland Reserve $ (200,000) $ - $ - $ - $ - Proceeds from Parking Stall Reserve $ (31,120) $ - $ - $ - $ - Proceeds from DCC Restricted Revenue $ - $ - $ - $ - $ - Proceeds from Capital Works Reserve $ (664,401) $ (24,236) $ (150,586) $ (18,000) $ (518,000) Proceeds from Special Projects Reserve $ (38,880) $ - $ - $ - $ - Proceeds from General Operating Surplus $ (350,000) $ (300,000) $ (300,000) $ (300,000) $ (300,000) Proceeds from Gas Tax Deferred Revenue $ (30,000) $ - $ - $ - $ - Proceeds from Resort Municipality Deferred Revenue $ - $ - $ - $ - $ - Proceeds from Resort Municipality Initiative $ (764,113) $ (872,535) $ (652,375) $ (652,375) $ (652,375) Proceeds from Fire Truck Reserve $ - $ (250,000) $ - $ - $ - Proceeds from PW Reserves $ (101,680) $ (120,000) $ (70,000) $ (130,000) $ - Proceeds from other Reserves $ (165,920) $ - $ - $ (105,000) $ (75,000) Other Sources $ (186,920) $ (176,400) $ (176,400) $ (176,400) $ (176,400) Total Revenue not from Property Taxes $ (4,848,606) $ (3,354,227) $ (2,966,980) $ (3,005,136) $ (3,351,779) Total Revenues $ (8,143,311) $ (6,764,114) $ (6,590,516) $ (6,696,541) $ (7,107,312) Financial Plan Bylaw No.1206, 2015 Page 3 of 14 Page 12 of 27

13 Schedule A Continued District of Tofino General Segments 5 Year Financial Plan Fiscal Years 2015 to 2019 inclusive Expenditures Legislative $ 237,076 $ 231,181 $ 235,099 $ 242,091 $ 254,119 General Administration $ 1,256,176 $ 1,314,796 $ 1,369,867 $ 1,296,887 $ 1,307,359 Recreation $ 258,067 $ 283,833 $ 238,440 $ 243,741 $ 249,760 Community Children's Centre $ 159,116 $ 157,666 $ 160,808 $ 164,783 $ 169,645 Planning $ 279,760 $ 201,767 $ 175,103 $ 284,034 $ 183,601 Bylaw $ 214,457 $ 211,778 $ 215,401 $ 189,820 $ 195,093 Public Works $ 871,554 $ 859,485 $ 886,909 $ 919,696 $ 942,340 Fire Department $ 300,710 $ 254,941 $ 258,450 $ 277,910 $ 266,855 Emergency Operations $ 71,113 $ 56,555 $ 56,418 $ 57,369 $ 59,427 RMI Services $ 1,074,345 $ 1,647,862 $ 1,428,189 $ 1,428,678 $ 1,429,178 Payments of Principal and Interest on Municipal Debt $ 96,992 $ 155,684 $ 162,267 $ 147,967 $ 125,870 Transfers to Capital - Administration $ 337,378 $ - $ - $ - $ - Transfers to Capital - CCC $ - $ - $ - $ - $ - Transfers to Capital - Planning $ - $ - $ - $ - $ - Transfers to Capital - Public Works $ 737,683 $ 120,000 $ 235,000 $ 230,000 $ 720,000 Transfers to Capital - Fire Department $ - $ 250,000 $ - $ - $ - Transfers to Capital - Emergency Planning $ 3,500 $ - $ - $ - $ - Transfers to Capital - RMI Services $ 1,201,994 $ - $ - $ - $ - Transfers to Special Projects Reserve $ 256,125 $ 325,000 $ 325,000 $ 325,000 $ 325,000 Transfers to Recreation Equipment Reserve $ 14,500 $ 19,500 $ 19,500 $ 19,500 $ 20,000 Transfers to CCC Equipment Reserve $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 Transfers to Fire Department Operating Reserve $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 Transfers to Fire Department Fire Truck Reserves $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 Transfers to Capital Works Reserve $ - $ - $ - $ - $ - Transfers to OCP Reserve $ - $ 22,500 $ 22,500 $ 32,500 $ 22,500 Transfers to Zoning Bylaw Reserve $ - $ - $ - $ 30,000 $ 30,000 Transfers to Stump Dump Reserve $ - $ - $ - $ - $ - Transfers to PW Reserves $ 133,300 $ 133,300 $ 133,300 $ 133,300 $ 133,300 Transfers to Water Operating $ 539,465 $ 418,265 $ 568,265 $ 528,265 $ 573,265 Transfers to Sew er Operating $ - $ - $ - $ 45,000 $ - Total Expenditures $ 8,143,311 $ 6,764,114 $ 6,590,516 $ 6,696,541 $ 7,107, Financial Plan Bylaw No.1206, 2015 Page 4 of 14 Page 13 of 27

14 Schedule A Continued District of Tofino 5 Year Capital Plan Fiscal Years 2015 to 2019 inclusive Sources of Funds Council Capital Revenues $ - $ - $ - $ - $ - Administration Capital Revenues $ (337,378) $ - $ - $ - $ - Recreation Capital Revenues $ - $ - $ - $ - $ - CCC Capital Revenues $ - $ - $ - $ - $ - Development Services Capital Revenues $ - $ - $ - $ - $ - Public Works Capital Revenue $ (737,683) $ (120,000) $ (235,000) $ (230,000) $ (720,000) Fire Department Capital Revenue $ - $ - $ - $ - $ - Emergency Operations Capital Revenue $ (3,500) $ - $ - $ - $ - Misc Capital Revenue $ (1,201,994) $ - $ - $ - $ - Water Capital Revenues $ (1,750,515) $ (15,000) $ (875,000) $ (460,000) $ (395,000) Sew er Capital Revenues $ (88,500) $ (65,000) $ (415,000) $ (190,000) $ (8,418,000) Developer Contributions $ - $ - $ - $ - $ - Total Sources of Funds $ (4,119,570) $ (200,000) $ (1,525,000) $ (880,000) $ (9,533,000) Uses of Funds Council Capital Expenditures $ - $ - $ - $ - $ - Administration Capital Expenditures $ 337,378 $ - $ - $ - $ - Recreation Capital Expenditures $ - $ - $ - $ - $ - CCC Capital Expenditures $ - $ - $ - $ - $ - Development Services Capital Expenditures $ - $ - $ - $ - $ - Public Works Capital Expenditures $ 737,683 $ 120,000 $ 235,000 $ 230,000 $ 720,000 Fire Department Capital Expenditures $ - $ - $ - $ - $ - Emergency Operations Capital Expenditures $ 3,500 $ - $ - $ - $ - Miscellaneous Capital Expenditures $ 1,201,994 $ - $ - $ - $ - Water Capital Expenditures $ 1,750,515 $ 15,000 $ 875,000 $ 460,000 $ 395,000 Sew er Capital Expenditures $ 88,500 $ 65,000 $ 415,000 $ 190,000 $ 8,418,000 Total Use of Funds $ 4,119,570 $ 200,000 $ 1,525,000 $ 880,000 $ 9,533, Financial Plan Bylaw No.1206, 2015 Page 5 of 14 Page 14 of 27

15 Schedule A Continued District of Tofino Water Segment 5 Year Financial Plan Fiscal Years 2015 to 2019 inclusive Revenues Fees and Charges from sale of services $ (704,995) $ (704,995) $ (704,995) $ (704,995) $ (704,995) Other Revenue $ (1,057,341) $ (1,000) $ (451,000) $ (1,000) $ (1,000) Grants $ - $ - $ - $ - $ - Proceeds from Borrow ing $ - $ - $ - $ - $ - Transfers from Resort Municipality Deferred Revenue $ - $ - $ - $ - $ - Transfers from DCC Restricted Revenue $ - $ - $ - $ - $ - Transfers from Water Capital Surplus $ - $ - $ - $ - $ - Transfers from Water Operating Surplus $ (298,973) $ - $ - $ - $ - Transfers from General Operating/Surplus $ (539,465) $ (418,265) $ (568,265) $ (528,265) $ (573,265) Transfers from Sew er Operating $ - $ - $ - $ - $ - Total Water Revenues $ (2,600,774) $ (1,124,260) $ (1,724,260) $ (1,234,260) $ (1,279,260) Expenditures Administration $ 391,655 $ 428,718 $ 354,178 $ 342,588 $ 443,549 Pump Stations $ 34,110 $ 35,299 $ 36,602 $ 37,408 $ 38,738 Equipment $ 2,288 $ 2,288 $ 2,314 $ 2,315 $ 2,341 Reservoirs $ 35,061 $ 26,214 $ 27,063 $ 28,482 $ 37,436 Treatment $ 66,639 $ 67,965 $ 106,601 $ 108,798 $ 112,304 Delivery and Other $ 131,000 $ 119,900 $ 123,612 $ 124,336 $ 127,823 Interest and Expenses on Debt $ 88,265 $ 88,265 $ 88,265 $ 88,265 $ 88,265 Transfers to Water Capital Reserves $ 75,000 $ 300,000 $ 75,000 $ - $ - Transfers to Water Capital $ 1,750,515 $ 15,000 $ 875,000 $ 460,000 $ 395,000 Transfers to General Revenue $ - $ - $ - $ - $ - Transfers to Water Operating Surplus $ 26,240 $ 40,611 $ 35,625 $ 42,068 $ 33,804 Total Water Expenditures $ 2,600,774 $ 1,124,260 $ 1,724,260 $ 1,234,260 $ 1,279, Financial Plan Bylaw No.1206, 2015 Page 6 of 14 Page 15 of 27

16 Schedule A Continued District of Tofino Sew er Segment 5 Year Financial Plan Fiscal Years 2015 to 2019 inclusive Revenues Fees and Charges from sale of services $ (628,480) $ (628,480) $ (628,480) $ (628,480) $ (628,480) Other Revenue $ (15,000) $ (25,000) $ (400,000) $ (330,000) $ (8,208,000) Grants $ - $ - $ - $ - $ - Proceeds from Borrow ing $ - $ - $ - $ - $ - Transfers from DCC Restricted Revenue $ - $ - $ - $ - $ - Transfers from Sew er Capital Surplus $ - $ - $ - $ - $ - Transfers from Sew er Operating Surplus $ - $ - $ - $ - $ - Transfers from General Surplus $ - $ - $ - $ (45,000) $ - Total Sewer Revenues $ (643,480) $ (653,480) $ (1,028,480) $ (1,003,480) $ (8,836,480) Expenditures Administration $ 238,983 $ 229,418 $ 253,429 $ 424,593 $ 229,035 Lift Stations $ 69,238 $ 59,485 $ 58,016 $ 64,115 $ 62,602 Equipment $ 1,264 $ 606 $ 1,268 $ 630 $ 1,317 Treatment $ - $ - $ - $ - $ - Delivery and Miscellaneous $ 208,210 $ 133,520 $ 120,520 $ 104,920 $ 91,470 Interest and Expenses on Debt $ - $ - $ - $ - $ - Transfers to General Revenue $ - $ - $ - $ - $ - Transfers to Sew er Operating Surplus $ 37,285 $ 35,451 $ 35,247 $ 34,222 $ 34,056 Transfers to Sew er Reserves $ - $ 130,000 $ 145,000 $ 185,000 $ - Transfers to Sew er Capital $ 88,500 $ 65,000 $ 415,000 $ 190,000 $ 8,418,000 Total Sewer Expenditures $ 643,480 $ 653,480 $ 1,028,480 $ 1,003,480 $ 8,836, Financial Plan Bylaw No.1206, 2015 Page 7 of 14 Page 16 of 27

17 Schedule B Financial Plan Bylaw Bylaw No. 1206, 2015 Funding Sources Statement of Objectives and Policies The proportion of total revenue proposed to be raised from each type of funding source is illustrated in Tables 1 through 4. General Operating Other sources form a large proportion of the revenue in the general operating budget. Other sources consist mainly of transfers from reserves and grant funds, either already approved or to be applied for. As a small community with a limited property tax base and the desire to provide an infrastructure to accommodate a large seasonal influx of persons, it is important to have other sources of funds to supplement property taxes. Property taxes also form a large proportion of revenue for the general operating budget. As a revenue source, property taxation offers a number of advantages, for example, it is simple to administer and explain to taxpayers. It offers a stable and reliable source of revenue for services that are difficult or undesirable to fund on a user-pay basis. These services include corporate and financial administration, fire protection and emergency planning, recreation programming, child care, bylaw enforcement, planning and infrastructure upgrades. Property tax revenue includes a property value tax levy specifically related to water and sewer infrastructure repairs and replacements. The levy cannot be applied in excess of $485,000 per annum and there must be an approved water and sewer capital plan in place relating to the infrastructure repair and replacement projects. The amount included in the Financial Plan for 2015 is $451,200. The amount included in the financial plan for 2016, 2017, 2018 and 2019 is $330,000, $480,000, $440,000 and $485,000 respectively and is subject to change based on approved annual infrastructure projects. Water Operating Other Sources form the greatest proportion of revenue for the water operating budget. The other sources consist mainly of transfers from general operating and general operating surplus, water operating and water capital reserves. As a small community with a limited water user base and the desire to provide water infrastructure to accommodate a large seasonal influx of persons, it is important to have other sources of funds to supplement the user fees Financial Plan Bylaw No.1206, 2015 Page 8 of 14 Page 17 of 27

18 SCHEDULE B (Continued) User fees and charges form the balance of revenue in the water operating budget. As a revenue source, user fees and charges permits the cost of operating, maintaining and expanding the system to be distributed in a proportional system to the users of the system. Sewer Operating User fees and charges represent the greatest proportion of revenue for the sewer operating budget. As a revenue source, user fees and charges permits the cost of operating, maintaining and expanding the system to be distributed in a proportional system to the users of the system. Other sources represent the balance of revenue for the sewer operating budget. Other sources consist mainly of grant funds, transfers from general operating and general operating surplus and capital reserves. Table 1: Sources of Revenue - General Operating Revenue Source % of Total Revenue Dollar Value Property Value Taxes % $3,294,705 Parcel Taxes 0.0% $0 User fees and charges % $596,193 Other sources % $4,252,414 Proceeds from Borrowing 0.0% $0 Total 100.0% $8,143,311 Table 2: Sources of Revenue - Water Operating Revenue Source % of Total Revenue Dollar Value Property Value Taxes 0.0% $0 Parcel Taxes 0.0% $0 User fees and charges 27.1% $704,995 Other sources 72.9% $1,895,779 Proceeds from Borrowing 0.0% $0 Total 100.0% $2,600, Financial Plan Bylaw No.1206, 2015 Page 9 of 14 Page 18 of 27

19 SCHEDULE B (Continued) Table 3: Sources of Revenue - Sewer Operating Revenue Source % of Total Revenue Dollar Value Property Value Taxes 0.0% $0 Parcel Taxes 0.0% $0 User fees and charges 97.7% $628,480 Other sources 2.3% $15,000 Proceeds from Borrowing 0.0% $0 Total 100.0% $643,480 Table 4: Sources of Revenue - Consolidated Revenue Source % of Total Revenue Dollar Value Property Value Taxes 28.9% $3,294,705 Parcel Taxes 0.0% $0 User fees and charges 16.9% $1,929,668 Other sources 54.1% $6,163,193 Proceeds from Borrowing 0.0% $0 Total 100.0% $11,387,566 Objective: Over the next three years, the District will consider changes to the proportions and sources of revenue funding which will specifically include reviewing water and sewer rates for user fees and charges and will also include: General Reviewing rates for user fees and charges, Examining new sources of revenue, primarily from user fees and charges which may include making use of existing or new assets and or services, Increasing tax rates. Water Reviewing the methodology used to calculate user fees and charges Determining other sources of funds to offset the costs of operating, maintaining or expanding the water delivery and treatment system Financial Plan Bylaw No.1206, 2015 Page 10 of 14 Page 19 of 27

20 SCHEDULE B (Continued) Sewer Reviewing the methodology used to calculate user fees and charges Determining other sources of funds to offset the costs of operating, maintaining or expanding the wastewater water delivery and treatment system. Policies: The District of Tofino (District) will review all user fee levels and charges to ensure they are adequately meeting both capital and delivery costs of the service as well as meeting the goals and objectives of the District in terms of costrecovery, if any. Universal water metering will continue to ensure that appropriate user fees are being collected for water consumption usage. Water and Sewer will charge consumption fees and charges to offset the operating and capital costs of maintaining, improving and expanding the delivery and treatment systems. Where possible, grants or outside contributions through partnerships or agreements, including DCCs, will be sought to offset as much of the costs for studies, operational or capital costs as possible in order to lessen the reliance on property value taxes or user fees and charges. Distribution of Property Taxes The distribution of property taxes among the property classes is illustrated in Table 5. The practice of Council has been to set taxes in order to maintain modified proportional tax stability. This is accomplished by maintaining the proportion of taxes paid by each class year over year modified by changes in Non Market Change (Real Growth) for each year. This can affect the rates over time as one class or another experiences growth which is different from other classes. In 2013 Council maintained this approach with the exception of Class (2) Utilities. The Utilities class was set at a rate 2.5 times the rate of Class (6) Business and Other. The residential property class provides the largest proportion of property tax revenue. This is appropriate as this class also forms the largest portion of the assessment base. Business and Other provides the second largest proportion of property tax revenue. This class includes most of the accommodation sector including hotels and resorts. The remaining property classes are very small and provide very minor proportions of the total property tax revenue Financial Plan Bylaw No.1206, 2015 Page 11 of 14 Page 20 of 27

21 SCHEDULE B (Continued) Table 5: Distribution of Property Tax Rates Property Class % of Total Property Taxation Dollar Value (1) Residential 55.7% $1,774,377 (2) Utilities.6% $18,548 (3) Supportive Housing 0.0% $0 (4) Major Industrial 0.0% $0 (5) Light Industrial 0.0% $0 (6) Business and Other 42.4% $1,351,857 (7) Managed Forest 0.0% $0 (8) Recreation/Non-profit 1.3% $41,433 (9) Farmland 0.0% $0 Total 100.0% $3,186,215 Policy: The District of Tofino (District) will distribute the property taxes amongst the various property classes using a method to maintain modified proportional stability. This will be accomplished by maintaining the proportion of taxes paid by each class, year over year, modified by changes in Non Market Change (real growth) for each year. The exception to this approach is for Class (2) Utilities where the 2013 rate was increased to 2.5 times the rate in Class (6) Business and Other. The Utilities class rate will increase to $40 per $1,000 of assessed value by Objective: The District will continue to use the modified proportional stability method in all classes except Class (2) where rates will increase to $40 by Over the next three years, the District may consider further changes to the method in which property taxes are distributed which may include: setting property tax rate multiplier levels and targets, setting property tax distribution percentage levels and targets, or another method of property tax distribution which may include a combination of levels and targets Financial Plan Bylaw No.1206, 2015 Page 12 of 14 Page 21 of 27

22 SCHEDULE B (Continued) The methods by which the District may seek to accomplish this could include: determining an estimated average use of municipal resources by various property classes and the setting of a multiplier rate, tying to rates in other selected communities, determining a desired proportion of property taxes for each property class, or another method or combination of methods. The District may consider the following factors to determine future decisionmaking: tax shifts from one or more property classes to another, initiatives to maintain, encourage or discourage development of various property types, alignment of the property tax rate multipliers or percentage distributions with the social and economic goals of the community, comparison of rate multipliers or percentage distributions in other selected communities, or another method or combination of methods. Permissive Tax Exemptions Bylaw 1188, 2014, as amended, contains a list of permissive tax exemptions granted for the 2014 and 2015 taxation year. The District has an existing permissive tax exemption policy which guides the administration and approval of permissive tax exemptions. Policy: 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 District of Tofino (District) by enhancing the quality of life (economically, socially, and, or 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 District. The organization receiving the exemption must be a registered non-profit society, as the support of the municipality will not be used for commercial and private gain Financial Plan Bylaw No.1206, 2015 Page 13 of 14 Page 22 of 27

23 SCHEDULE B (Continued) Objective: The District will continue to consider permissive tax exemptions to non-profit societies meeting the criteria. Over the next three years, the District may consider methods to expand its offering of permissive tax exemptions to possible include revitalization tax exemptions targeted at green development for the purposes of encouraging development that will meet our Climate Action Charter commitments. The methods to expand the offerings of permissive tax exemptions to be considered may include: The potential determination of eligibility requirements for green revitalization tax exemptions; The potential development of a green revitalization tax exemption program which details the kinds of green activities that the potential exemption program will target; and Potential methods to integrate a potential green revitalization tax exemption program into the District s existing economic initiatives as a potential means of attracting residential, retail and commercial businesses to further invest in sustainable living in the community Financial Plan Bylaw No.1206, 2015 Page 14 of 14 Page 23 of 27

24 CORPORATION OF THE DISTRICT OF TOFINO District of Tofino 2015 Annual Tax Rates Bylaw No. 1207, 2015 Effective Date May X, 2015 Page 24 of 27

25 DISTRICT OF TOFINO 2015 ANNUAL TAX RATES BYLAW NO. 1207, 2015 A Bylaw to Impose Rates on all Taxable Land and Improvements within the District of Tofino WHEREAS pursuant to section 197 of the Community Charter a council must, by bylaw, impose property value taxes for the year by establishing tax rates. NOW THEREFORE the Council of the District of Tofino, in open meeting, enacts as follows: 1. Citation This bylaw may be cited for all purposes as District of Tofino 2015 Annual Tax Rates Bylaw No. 1207, Tax Rates Schedule "A", attached hereto and forming part of this by-law, outlines the annual rates which are hereby imposed and levied on all taxable land and improvements according to their assessed value to provide the money required for: Column A - General Municipal All lawful general purposes of the municipality, including provision for uncollectible taxes and for taxes that it is estimated will not be collected during the year; Column B Regional Library The money which, when added to the amount remaining in the regional library rate account from the previous year, is sufficient for the municipal share of the expenses of the regional library, according to the requisition submitted by the regional library; Column C Regional Hospital The money which, when added to the balance in the hospital rate account from the previous year, is sufficient for the municipal share of the regional hospital district expenses and the debt incurred for hospital purposes, according to the requisition submitted to the Council by the Regional Hospital Board; Column D Regional District The money which, when added to the amount remaining in the regional district rate account from the previous year, is sufficient for the municipal share of the expenses and debt payments of the regional district, according to the requisition submitted by the regional board. 3. Minimum Tax The minimum amount of tax levied in any year on a parcel of real property shall be One ($1.00) Dollar. District of Tofino 2015 Annual Tax Rates Bylaw No. 1207, 2015 Page 2 of 4 Page 25 of 27

26 4. Severability If a portion of this Bylaw is held invalid by a Court of competent jurisdiction, then the invalid portion must be severed and the remainder is deemed to have been adopted without the severed section, subsection, paragraph, subparagraph, clause or phrase. READ A FIRST TIME on May 5, 2015 READ A SECOND TIME on May 5, 2015 READ A THIRD TIME on May 5, 2015 ADOPTED on May X, 2015 Josie Osborne, Mayor Robert MacPherson, Corporate Officer District of Tofino 2015 Annual Tax Rates Bylaw No. 1207, 2015 Page 3 of 4 Page 26 of 27

27 Schedule A District of Tofino 2015 Annual Tax Rates Bylaw No. 1207, 2015 Property Class General Municipal Debt PVTL Total Municipal Regional District Regional Hospital Library Residential Utilities Light Industry Business Other Recreation/Non-Profit Farm District of Tofino 2015 Annual Tax Rates Bylaw No. 1207, 2015 Page 4 of 4 Page 27 of 27