CORPORATIONOF THE DISTRICT OF TOFINO DISTRICTOF TOFINO FINANCIALPLAN BYLAW NO. 1220, Effective Date. May

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1 CORPORATIONOF THE DISTRICTOF TOFINO DISTRICT OF TOFINO DISTRICTOF TOFINO FINANCIALPLAN BYLAW NO. 1220, 201 Effective Date May 4, 201

2 DISTRICTOF TOFINO FINANCIALPLAN BYLAWNO. 1220, 201 A bylaw to approve the 5 year Financial Plan for the years WHEREAS pursuant to section 15 of the Community Charter, a municipality must have a financial plan that is adopted annually; AND WHEREASthe planning period for a financial plan is 5 years; NOW THEREFOREthe Council of the District of Tofino, in open meeting, enacts as follows: 1. Name The name of this Bylaw for citation purposes is "District of Tofino Z Financial Plan Bylaw No. 1220, 201. Schedules Schedule A attached to this Bylaw is hereby declared to be the Five Year Financial Plan of the District of Tofino for the period January 1, 201 to and including December 31, Schedule B attached to this Bylaw is hereby declared to be the Statement of Objectives and Policies in accordance with section 15 (3.1) of the Community Charter. Repeal The "District of Tofino Financial Plan Bylaw No. 120, 2015" is hereby repealed. 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. READA FIRSTTIME on April 2, 201 READA SECOND TIME on April 2, 201 READ A THIRDTIME on April 2, 201 ADOPTED on May 4, 201.9~~<, r?///k Robert MacPherson, Corporate Officer Financial Plan Bylaw No.1220, 201 Page 2 of 13

3 Residential Utility Schedule A Financial Plan Bylaw No.1220, 201 District ofto1ino General Segments 5 Year Financial Plan Fiscal Years 201 to 2020 inclusive 7 Revenues Property Tax (1,972,7s1) (2,012,237) (2,052,481) is (2,093,531) (2,135,4o2) Froperty Tax v (19,898) (20,29) 5 (20,702) (21,11) (21,538) Property Tax Corrmercial (1,508,99) (1,539,17) (1,59,959) (1,01,359) (1,33,38) Property Tax Recreation/NonHofit (4,499) (47,429) (48,378) (49,345) (50,332) Ftoperty Tax Farm 515 (1) (1) (17) (17) (17) Excess Levies re: Supplements ~ GLT/PILTand other levies in lieuof taxes (125,80) (129,342) (131,929) (134,58) (137,259) Total Revenue from Property Taxes 5 (3,74,99) (3,78,49) 0,823,4) 5 (3,899,935) (3,977,934) Parcel Taxes Fees and Charges (5,329) (81,72) (90,53) (97,425) (707,700) Proceeds from Borrowing (249,840) (1,500,000) S Hoceeds from Grants (1,223,835) (1,042,515) (1,043,081) (1,043,74) (1,044,280) Hoceeds from/xrrenity (40,000) Restricted Revenue v Hoceeds from Farkland Reserve (4,000) ~ Proceeds from Parking Stall Reserve 35 (5,000) ~ Proceeds from DOCRestricted Revenue ~ Proceeds from Capital Works Reserve (,059) (222,58) (28,000) (528,000) (28,000) Pvoceeds from Special Projects Reserve (121,58) (14,000) Rroceeds from General Operating Surplus (770,418) (300,000) (300,000) (300,000) (300,000) Proceeds from Gas Tax Deferred Revenue (282,187) S Proceeds from Resort Mmicipality Deferred Revenue Proceeds from Resort Mmicipalily lnitiative (1,47,85) S (52,731) (52,27) (52,405) (51,705) Hoceeds (rem l IreTruck Reserve (250,000) Hoceeds (rem PW Reserves (28,000) (70,000) (130,000) Proceeds from other Reserves (8,07) (10,000) (118,000) (90,000) Other Sources (158,327) (159,13) (159,13) (159,13) (159,13) Total Revenue not from Property Taxes (,042,324) 3 (4,734,7) (3,135,40) S (3,380,7) 5(2,980,848) Total Reve nues 5 (9,717,320) (8,183,13) 5 (,953,873) 5 (7,230,02) S(,953,732) Financial Plan Bylaw No.1220, 201 Page 3 of 13

4 RMlServices Schedule A Continued District of Tofino General Segments 5 Year Financial Plan Fiscal Years inclusive Expe ndilu res Legislative 3 23,79 240,43 247, , ,95 General Adninistration ,09,59 1,130,177 1,187,20 1,178,912 Recreation 24, , ,733 32,129 38,93 Oorrrrunity Children's Cenire ,797 1, , ,70 Ranning 23, , ,90 Bylaw 27, ,839 29,07 F\.Ib ic Works 994,158 98,223 1,002,581 1,023,81 1,041,477 Fire Departnent 30,23 275, ,594 28,90 292,987 Emergency Operations 5,494 7,228 7,20 9,18 80,794 RMIServices/Tourism Services 1,148,90 1,428,189 1,428,78 1,429,178 1,429,221 Fayrnents of Hincipal and hteresl on Mmicipal Debt 88, , ,75 110, ,577 Transfers to Capital Adrrinislration 397,285 20,000 Transfers to Capital OOC S Transfers to Capital Recreation 52,500 1,500,000 S 0,000 Transfers to Capital Ranning ~ Transfers to Capital Public Works 739, , , ,000 Transfers to Capital?re Department 549,840 Transfers to Capital Emergency Planning 80,000 80,000 Transfers to Capital 8 1,557,13 ~ Transfers to Special Projects Reserve 375, ,932 S 33, , Transfers to Recreation Eruiprnenl Reserve 2,500 2,500 2,500 2, Transfers to C00 Equiprrenl Reserve 55 5,000 5,000 5, Transfers to l IreDepartment Operating Reserve 35 Transfers to Hire Department l IreTruck Reserves Transfers to Capital Works Reserve 497, , ,95 528, ,10 Transfers to OCP Reserve 22,500 2, ,500 Transfers to Zoning Bylaw Reserve 10,000 10,000 10,000 ~ Transfers to Sturrp Durrp Reserve 85 Transfers to PW Reserves 3% 53,300 53,300 53,300 53,300 53,300 Transfers to Water Operating 24, , , ,77 Transfers to Sew er Qaeraling 19,379 19,77 20,12 20,55 20,97 Total Expenditures 5 9,717, ,433,13 5,958,872 7,230,03 5,958, Financial Plan Bylaw No.1220, 201 Page 4 of 13

5 5 s Schedule A Continued District of Tofino 5 Year Capital Plan Fiscal Years 201 to 2020 inclusive Sources of Funds Council Capital Revenues Adninistration Capital Revenues Recreation Capital Revenues COC Capital Revenues Developrrent Services Capital Revenues Public Works Capital Revenue F IreDepartment Capital Revenue Emergency Operations Capital Revenue Msc Capnal Revenue Water Capital Revenues Sewer Capital Revenues Developer Contributions Total Sources of Funds Uses of Funds Council Capital Expenditures Adninistraiion Capital Expenditures Recreation Capital B<penditures OCCCapital Expenditures Develcprrent Services Caphal Expenditures Public Works Capital Expenditures l iredepartrrent Capital Expenditures Emergency Operations Capital Expendvtures Mscellaneous Capital Expenditures Water Capital Expenditures Sew er Capital Expenditures Total Use of Funds % E 2 E E S ~ ~ (397,205) (20,000) (52,500) (1,500,000) 5 (00,000) (21,000) (739,877) (425,000) (205,000) (545,000) (50,000) (549,840) ~ ~ is (00,000) ~ 39 (80,000) (1,557,13 59 ~ 55 (1,51,347) (890,000) 5 (400,000) (455,000) as (205,020) (400,000) 5 (235,000) (7,195,000) (15,000) as s(5,01e,032) s(3,31e,000) 5 (900,000) 5 (0,195,000) 5 (145,000) s 397,285 as 0 as 20,000 52,500 1,500,000 0,000 21, s S 739, as 205,000 as 545,000 50, ,340 A 80,000 80,000 1,557,13 1,510, , , , ,000 as 7,195,000 15, ,010,0325 3,31, ,000 5,195, , Financial Plan Bylaw No.1220, 201 Page5of13

6 35 Schedule A Continued District of Tofino Water Segment 5 Year Financial Plan Fiscal Years 201 to 2020 inclusive Revenues Fees and Charges from sale of services 39 (723,504) (720,004) (720,004) (720,004) (720,004) Other Revenue (1,1,081) (500) (500) (500) (500) Grants Proceeds from Borrowing Transfers from Resort Mmiclpality Deferred Revenue ~ ~ Transfers from DCC Restricted Revenue Translers from Water Capital Surplus Translers from Water Operating Surplus (34,745) (855,000) (440,000) (485,000) (30,000) Transfers fromgenera Operating/Surplus (24,928) (270,227) (275,31) (281,144) (28,77) Transfers from Sew er Operating ~ Total Water Revenues 5 (2,501,253) 5(1,345,731) 5 (1,435,135) 5 (1,48,48) s(1,o37,211 Expenditures Adrrinisiration 355,388 38,51 31, ,082 35,874 Purrp Stations 35,299 35,02 37,408 3,738 39,593 Equipment 2,291 2,318 2,320 2,347 2,348 Reservoirs 2,214 27,03 28,482 37,43 37,848 Treatrrent 77,95 11,01 109, , ,595 Delivery and Other 119, , , , ,850 hterest and Expenses on Debt 88,25 88,25 88,25 88,25 88,25 Transfers to Water Capital Reserves 244, , , ,22 Transfers lo Water Capital 1,51, ,000 40, ,000 Transfers to General Revenue ~ 35 Transfers to Water Operating Surplus 35,000 14,29 43,030 40,402 42,27 Total Water Expenditures 5 2,501, ,845, ,43,135 S 1,48,48 1,037, Financial Plan Bylaw No.1220, 201 Page of 13

7 Schedule A Continued District of Tofino Sewer Segm em 5 Year Financial Plan Fiscal Years 201 to 2020 inclusive Revenues Fees and Oiarges fromsale of services Other Revenue Grants Proceeds from Borrowing Transfers from DOCRestricted Revenue Transfers from Sew er Capital Surplus Transfers from Sew er Operating Surplus Transfers from General Surplus Total Sewer Revenues Expenditures Adrrinistration LiftStations Equipment Treatment Delivery and Mscellaneous Interest and Expenses on Debt Transfers lo General Revenue Transfers to Sew er Operating Surpius Transfers to Sew er Reserves Transfers to Sew er Capital Total Sewer Expenditures (49,275) (47,775) (47,775) (47,775) (47,775) (140,000) (385,000) (220,000) (4,15,000) A (2,370,000) ~ (19,379) (19,77) (20,12) (20,55) (20,97) (7,53,340) 5 (8,751) (s0a,54) s(1,052,542)_s (s_s7.937) E % E 229, ,757 23, , ,793 59,45 58,01 4,115 2,02 3, , ,353 1,30 ~ 203, , ,920 91,470 91,470 V 31,500 31,500 31,500 31,500 31,501 79, , ,740 40, ,35 205, , ,000 7,195,000 15, ,54 1,052, ,937 7,53, , Financial Plan Bylaw No.1220, 201 Page7of13

8 Sewer Schedule B Financial Plan Bylaw Bylaw No. 1220, 201 Statement of Objectives and Policies Funding Sources The proportion of total revenue proposed to be raised from each type of funding source is illustrated in Tables 1 through 4. Table 1: Sources of Revenue General Operating Revenue Source % of Total Revenue Dollar Value Property Value Taxes 37.8% 3,74,99 Parcel Taxes 0.0% 0 User fees and charges.8% 5,329 Other sources 52.8% 5,127,155 Proceeds from Borrowing 2.% 249,840 Total 100.0% 9,717,320 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 28.9% 723,504 Other sources 71.1% 1,777,754 Proceeds from Borrowing 0.0% 0 Total 100.0% 2,501,258 Table 3: Sources of Revenue Operating Revenue Source % of Total Revenue Dollar Value Property Value Taxes 00% 0 Parcel Taxes 0.0% 0 User fees and charges 803% 49,275 Other sources 19.7% 159,379 Proceeds from Borrowing 0.0% 0 Total 100.0% 808, Financial Plan Bylaw No.1220, 201 Page 8 of 13

9 Table 4: Sources of Revenue Consolidated Revenue Source % of Total Revenue Dollar Value Property Value Taxes 28.2% 53,74,99 Parcel Taxes 0.0% 0 User fees and charges 15.7% 2,038,108 Other sources 54.2% 37,04,288 Proceeds from Borrowing 1.9% 249,840 Total 100.0% 13,027,232 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 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. lt offers a stable and reliable source of revenue for services that are difficult or undesirable to fund on a userpay basis. These services include corporate and financial administration, fire protection and emergency planning, recreation programming, public works, child care, bylaw enforcement, planning and infrastructure upgrades. Property tax revenue includes a Capital and Infrastructure Levy (C& Levy) to be used for the repair, renewal and addition of tangible capital assets. The levy is based on the previous year's amortization of existing capital assets. The levy collected will be spent or transferred to reserve funds proportionately based on the amortization of each asset category which includes the categories of Roads and Sidewalks, Sewer, Water, Buildings and Structures, Equipment, Vehicles, Parking Lots and Parks. 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, water capital reserves and grants. 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. 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 Financial Plan Bylaw No.1220, 201 Page 9 of 13

10 Reviewing Examining Increasing Amendments Reviewing Determining Determining 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. Objective: The District will continue to consider changes to the proportions including: and sources of revenue General user fees and charges; new sources of revenue which may include utilizing existing or new assets and or services; tax rates; and to the Capital and Infrastructure Levy. Water user fees and charges; and other sources of funds to offset the costs of operating, maintaining or expanding the water delivery and treatment system. Sewer Reviewing user fees and charges; and other sources of funds to offset the costs of operating, maintaining or expanding the wastewater 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 operating costs of the service as well as meeting the goals and objectives of the District. Universal water metering will continue to ensure that appropriate user fees are being collected for water consumption. Water and Sewer consumption fees are charged to offset the operating and a portion of the 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 reduce the reliance on property value taxes or user fees and charges Financial Plan Bylaw No.1220, 201 Page 10 of 13

11 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. This method has been used to set rates in all classes with the only restriction, set by the Province, being in the utilities class where the rate cannot exceed the greater of 2.5 times the business class or 40 per 31,000 of taxable value for general municipal purposes. 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 such as hotels and resorts. The remaining property classes are very small and provide very minor proportions of the total property tax revenue. SCHEDULE"8" (Continued) Table 5: Distribution of Property Tax Rates Property Class % of Total Property Taxation Dollar Value (1) Residential 55.% 1,972,781 (2) Utilities.% 19,898 (3) Supportive Housing 0.0% 0 (4) Major industrial 0.0% 0 (5) Light Industrial 0.0% 0 () Business and Other 42.5% 1,508,99 (7) Managed Forest 0.0% 0 (8) Recreation/Non~profit 1.3% 4,499 (9) Farmland 0.0% 1 Total 100.0% 3,548,190 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 policy will be any rate caps or ratios imposed by the Province Financial Plan Bylaw No.1220, 201 Page 11 of13

12 determining setting setting another tying determining another tax initiatives alignment comparison another The The The Objective: Over the next three years, the District may consider further changes to the method in which property taxes are distributed which may include: property tax rate multiplier levels and targets; property tax distribution percentage levels and targets; or method of property tax distribution which may include a combination of levels and targets. The methods by which the District may seek to accomplish this could include: an estimated average use of municipal resources by various property classes and the setting of a multiplier rate; to rates in other selected communities; a desired proportion of property taxes for each property class; or method or combination of methods. The District may consider the following factors to determine future decisionmaking: shifts from one or more property classes to another; to maintain, encourage or discourage development of various property types; of the property tax rate multipliers or percentage distributions with the social and economic goals of the community; of rate multipliers or percentage distributions in other selected communities; or method or combination of methods. Permissive Tax Exemptions Bylaw 121, 2015 contains a list of permissive tax exemptions granted for the 201 taxation year. The District has an existing permissive tax exemption policy which guides the administration and approval of permissive tax exemptions. This policy is under review which may change the eligibility criteria for tax exemptions for the years Policy: The eligibility criteria for permissive tax exemptions that are outlined in the policy include the following: 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. goals, policies and principles of the organization receiving the exemption must not be inconsistent or in conflict with those of the District. organization receiving the exemption must be a registered nonprofitsociety, as the support of the municipality will not be used for commercial and private gain Financial Plan Bylaw No.1220, 201 Page 12 of 13

13 The The Potential Objective: The District will continue to consider permissive tax exemptions to nonprofitsocieties meeting the criteria. Over the next three years, the District may consider methods to expand its offering of permissive tax exemptions to 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: potential determination of eligibility requirements for green revitalization tax exemptions; potential development of a green revitalization tax exemption program which details the kinds of green activities that the potential exemption program will target; and 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.1220, 201 Page 13 of 13