Deputy Mayor K. L. Christian, Councillors D. M. Cavers, D. W. Dudy, T. Lange, A. H. Singh, M. L. Spina, P. A. Wallace, and D. J. Walsh.

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192. MINUTES OF THE BUDGET REVIEW MEETING OF THE MUNICIPAL COUNCIL OF THE CITY OF KAMLOOPS, HELD IN SANDMAN CENTRE PARKSIDE LOUNGE, 300 LORNE STREET, ON TUESDAY, FEBRUARY 23, 2016, AT 7:00 PM PRESENT: Deputy Mayor K. L. Christian, Councillors D. M. Cavers, D. W. Dudy, T. Lange, A. H. Singh, M. L. Spina, P. A. Wallace, and D. J. Walsh. Chief Administrative Officer D. A. Trawin; Corporate Services and Community Safety Director D. R. Duckworth; Public Works and Utilities Director J. Fretz; Finance Director K. Humphrey; Development and Engineering Services Director M. Kwiatkowski; Parks, Recreation, and Cultural Services Director B. J. McCorkell; Business and Client Services Manager T. Robertson; and Legislative Assistant D. Evans. Approximately 145 members of the public were present. 1. DEPUTY MAYOR'S OPENING COMMENTS: Deputy Mayor Christian opened the meeting by welcoming members of the public in attendance and thanked them for the great turnout. An overview of the Budget Review Meeting was provided and Deputy Mayor Christian advised that the Finance Director will review the planning process for the 2016-2020 Financial Plan. After the presentation, the public will be invited to speak with Council and staff in a round table format. Members of the public or Councillors will be able to ask questions or express concern related to the budget suggestions and submissions that have previously brought forward by the public, community organizations, and the City's Administration. 2. FINANCE DIRECTOR'S OVERVIEW: The Finance Director provided an overview of the City of Kamloops, including the following information: 628 staff members (management, exempt, and CUPE); 129 firefighters (five career and two volunteer fire stations); 130 contracted RCMP Members; 314 km 2 (122 sq. miles) in size; 1,177 paved street travel lanes; 64 gravel street travel lanes; 41 booster stations; 44 reservoirs; 614 km water mains; 524 km sanitary mains, 108 lift stations (primary and secondary); 364 km storm mains; 48 conventional buses and 17 custom buses; 76 developed parks (375 ha) and several nature parks (1,135 ha); 72 buildings, including cultural facilities; recreation facilities, civic buildings, parkades, and utility buildings. 10

193. Page 2 An overview of the 2015 sources of revenue for the City was provided as follows: 2015 Total Operating Revenue Real property taxes 64.03% Fees, rates, and sales of service 18.70% Grants 11.77% Special assessments 2.96% Investment Income 2.41% Other 0.14% 2015 Taxation Revenue Residential 60.9% Business 27.2% Heavy Industry 6.9% Light Industry 1.6% Utilities 3.0% Non-profit and farm 0.3% Funding Sources for Capital Projects Property taxes 47.0% Debt 27.0% Utility levies 12.7% Development Cost Charges 11.6% Grants 1.2% Contractors and other contributions 0.5% Capital Reinvestment of Assets The Finance Director advised that the net-depreciated value of City assets was $1,101,188,356 as of December 31, 2014, and the replacement value is likely three to five times greater. 11

194. Page 3 Taxation History - Property Tax Increases and Core Consumer Price Index (CPI) and Municipal Price Index (MPI) Annual Property Tax Increase Bank of Canada core Avg. CPI Edmonton MPI 2006 0.70% 1.90% n/a 2007 1.98% 2.14% n/a 2008 1.97% 1.73% 4.71% 2009 1.94% 1.70% 1.78% 2010 1.79% 1.76% 3.49% 2011 2.51% 1.64% 2.99% 2012 1.92% 1.70% 2.60% 2013 3.55% 1.26% 2.94% 2014 2.00% 1.82% 2.96% 2015 1.22% 2.20%* 3.22% Average of available years 1.96% 1.79% *Estimated for 2015 Average Tax Increases 2006-2015 for Selected BC Municipalities 3.09% Municipality Port Moody 4.53% Langley Township 4.24% Coquitlam 4.06% Pitt Meadows 3.98% Maple Ridge 3.92% Prince George 3.85% Port Coquitlam 3.83% Abbotsford 3.53% Burnaby 3.46% White Rock 3.43% Surrey 3.43% Chilliwack 3.39% North Vancouver District 3.31% New Westminster 3.28% Langley City 3.25% Mission 3.20% Richmond 3.17% Delta 3.11% West Kelowna* 2.90% Average Tax Increase 12

195. Page 4 Municipality Kelowna 2.77% Vancouver 2.71% Nanaimo* 2.50% Kamloops 1.96% West Vancouver 1.94% Canadian Consumer Price Index 1.79% *West Kelowna and Nanaimo are five-year averages. Summary of Tax Rate Comparisons Average Tax Increase The Finance Director presented a chart titled "Comparison of Tax Rate Increases", which showed a comparison between 25 BC municipalities and demonstrated that the Kamloops average tax increase from 2006 to 2015 was 1.96%. Taxation/Service Paid for in 2015 - Average Assessment $351,431 Police Services $420.58 Water $545.45 Parks, Recreation, and 381.99 Sewer 271.30 Culture Garbage and recycling 174.94 Fire Services 298.38 Utility Rates Total $991.69 Infrastructure Maintenance 213.00 Capital 174.94 Debt Servicing Costs 101.75 Public Transit 105.05 City Taxes + Utilities $2,885.90 Corporate Administration 91.50 Legislative and Enforcement 60.99 Community Development 41.51 Environmental Services 4.09 City Taxes $5.19 per day Cemetery 0.43 Utilities $2.72 per day City Taxes Total $1,894.21 Total $7.91 per day The Finance Director outlined the next steps for the 2016-2020 Financial Plan process: March 15, 2016, 9:00 am - Council Budget Review Meeting in Council Chambers, City Hall; and April 12, 2016, 10:30 am - Council Budget Review Meeting in Council Chambers, City Hall, to finalize the tax rate for 2016. 13

196. Page 5 The Finance Director advised that the 2016 budget priorities and challenges were as follows: Deliver the same service levels for 2016 as approved by Council in 2015; To identify service efficiencies; Maintain civic infrastructure at current levels and fund replacements; Continue to review expenses at the three-year average and adjust only as justified; Ensure utility fund revenue rates reflect known capital and operating expenses; Balance the need for recovery of costs versus what users can pay; Address aging infrastructure by building in realistic maintenance and replacement costs for the City's aging facilities; Ensure that the City is adequately prepared for future storm or emergency events; Establish reserve funds for future expenditures; and Acknowledge revenue challenges as investment income declines. 3. ADMINISTRATION-REQUESTED ADDITIONAL BUDGET ITEMS - OPERATING: The Finance Director presented the following Administration requested additional budget items: Operation Expenses New Parks Maintenance $104,250 Administrative FTE - Finance $80,000 Capital Projects Construction Inspector $50,000 Stuart Wood Elementary $37,600 Operating Revenue Revenue Division Fees and Charges ($43,300) 4. ADMINISTRATION-REQUESTED ADDITIONAL BUDGET ITEMS - CAPITAL: The Finance Director presented Council with the following 2016 capital requests: Capital Expenses 3rd Avenue Rail Crossing Enhancements $20,000 Storm Infrastructure Upgrades (annually) $1,000,000 Emergency Generator - Public Works Centre $350,000 JD Edwards Payroll Software Update $185,000 Riverside Park Maintenance (annually) $50,000 Thermoplastic Road Marking Applicator $20,000 North Shore Transit Exchange Planter Improvements $18,000 BMX Park Project Completion $65,000 14

197. Page 6 5. COMMUNITY-REQUESTED ADDITIONAL BUDGET ITEMS: The Finance Director presented Council with the following 2016 community requested additional budget items: Community Requests North Shore Cultural Heritage Tour Plaques $2,000 Pioneer Park Boat Launch Concept Design $50,000 Pickleball and Tennis Court Improvement Project Phase 1 $225,000 Pickleball and Tennis Court Improvement Project Phase 2 (2017) $250,000 Rugby Clubhouse at the Tournament Capital Ranch Phase 1 $50,000 Rugby Clubhouse at the Tournament Capital Ranch Phase 2 $690,000 The public, staff, and Council broke out into round table discussion to review the proposed budgetary items. The summary of the round table discussions will be presented to Council at the Budget Review Meeting on March 15, 2016, at 9:00 am. 6. ADJOURNMENT: The meeting adjourned at 9:00 pm. Certified Correct: K. HUMPHREY FINANCE DIRECTOR K. L. CHRISTIAN DEPUTY MAYOR 15