HomeMy WebLinkAbout2015 - 2019 Report and Bylaw.pdfCITY OF MAPLE RIDGE
BYLAW NO. 7145-2015
A bylaw to establish the five year financial plan for the years 2015 through 2019
WHEREAS, through a public process in an open meeting the business and financial plans were
presented;
AND WHEREAS, the public will have the opportunity to provide comments or suggestions with respect
to the financial plan;
AND WHEREAS, Council deems this to a process of public consultation under Section 166 of the
Community Charter;
NOW THEREFORE, the Council for the City of Maple Ridge enacts as follows:
1. This Bylaw may be cited as "Maple Ridge 2015-2019 Financial Plan Bylaw No. 7145-2015".
2. Statement 1 attached to and forming part of this bylaw is hereby declared to be the Consolidated
Financial Plan of the City of Maple Ridge for the years 2015 through 2019.
3. Statement 2 attached to and forming part of the bylaw is hereby declared to be the Revenue and
Property Tax Policy Disclosure for the City of Maple Ridge.
4. Statement 3 attached to and forming part of the bylaw is hereby declared to be the Capital
Expenditure Disclosure for the City of Maple Ridge.
READ a first time the 28th day of April, 2015.
READ a second time the 281h day of April, 2015.
READ a third time the 281h day of April, 2015.
PUBLIC CONSULTATION completed on the 12th day of May, 2015.
ADOPTED the day of 2015.
PRESIDING MEMBER
ATTACHMENTS: Statement 1, Statement 2 and Statement 3
CORPORATE OFFICER
1004
Attachment to Maple Ridge 2015-2019 Financial Plan Bylaw 7145-2015
Statement 1
Consolidated Financial Plan 2015-2019 (in $ thousands)
2015 2016 2017 2018 2019
REVENUES
Revenues
Development Fees
7,967
549
549
-
Developer Contributed Assets
16,500
16,500
16,500
16,500
16,500
Developer Cost Charges
34,987
6,002
7,715
6,273
8,888
Developer Specified Projects
-
-
-
-
-
Parkland Acquisition
1,028
200
200
200
200
Contributions from Others
2,717
1,251
1,253
1,276
1,238
Development Fees Total
55,232
23,953
25,668
24,249
26,826
Property Taxes
71,072
74,815
78,932
83,035
87,286
Parcel Charges
2,852
2,950
3,051
3,145
3,241
Fees & Charges
39,049
41,052
42,795
44,613
46,560
Interest
1,868
1,883
1,898
1,913
1,928
Grants (Other Govts)
6,121
6,524
3,759
3,421
4,585
Property Sales
4,250
-
-
-
-
Total Revenues
180,444
151,177
156,103
160,376
170,426
Total Transfer to Reserve Funds
7,755
5,249
5,792
EXPENDITURES
6,542
Transfer from (to) Own Reserves
19,214
(245)
(1,998)
Operating Expenditures
(2,734)
Transfer from (to) Surplus
(1,680)
(2,460)
(3,339)
Interest Payments on Debt
2,407
2,273
2,134
2,046
1,926
Amortization Expense
20,124
20,929
20,929
21,766
22,637
Other Expenditures
107,315
101,172
105,571
109,729
113,029
Total Expenditures
129,846
124,374
128,634
133,541
137,592
ANNUAL SURPLUS
50,598
26,803
27,469
26,835
32,834
Add Back: Amortization Expense (Surplus)
20,124
20,929
20,929
21,766
22,637
Less: Capital Expenditures
85,340
22,871
18,360
21,731
23,261
Less: Developer Contributed Capital
16,500
16,500
16,500
16,500
16,500
CHANGE IN FINANCIAL POSITION
(31,118)
8,361
13,538
10,370
15,710
OTHER REVENUES
Add: Borrowing Proceeds
7,048
-
-
-
-
OTHER EXPENDITURES
Less: Principal Payments on Debt
3,953
4,048
4,142
3,638
3,715
TOTAL REVENUES LESS EXPENSES (28,023) 4,313 9,396 6,732 11,995
INTERNALTRANSFERS
Transfer from Reserve Funds
Capital Works Reserve
7,967
549
549
-
Equipment Replacement Reserve
4,051
3,092
1,184
3,474
2,453
Fire Department Capital Reserve
1,976
-
-
-
-
Land Reserve
4,250
Local Improvement Reserve
-
Sanitary Sewer Reserve
-
-
-
-
-
Transfer from Reserve Fund Total
18,244
3,641
1,733
3,474
2,453
Less :Transfer to Reserve Funds
Capital Works Reserve
462
2,005
2,253
2,299
2,481
Equipment Replacement Reserve
2,344
2,448
2,615
2,744
2,876
Fire Dept. Capital Acquisition
664
761
889
1,018
1,150
Land Reserve
4,255
5
5
5
5
Local Improvement Reserve
-
-
-
-
-
Sanitary Sewer Reserve
30
30
30
30
30
Total Transfer to Reserve Funds
7,755
5,249
5,792
6,096
6,542
Transfer from (to) Own Reserves
19,214
(245)
(1,998)
(2,115)
(2,734)
Transfer from (to) Surplus
(1,680)
(2,460)
(3,339)
(1,995)
(5,172)
Transfer from (to) Surplus & own Reserves
17,534
(2,705)
(5,337)
(4,110)
(7,906)
TOTAL INTERNAL TRANSFERS
28,023
(4,313)
(9,396)
(6,732)
(11,995)
BALANCED BUDGET
Attachment to Maple Ridge 2015-2019 Financial Plan Bylaw 7145-2015
Statement 2
Revenue and Property Tax Policy Disclosure
Revenue Disclosure
Revenue Proportions
2015
$ ('OOOs)
%
2016
$ ('OOOs)
%
2017
$ ('OOOs)
%
2018
$ ('OOOs)
%
2019
$ ('OOOs)
Revenues
Property Taxes
71,072
37.9
74,815
49.5
78,932
50.6
83,035
51.8
87,286
51.0
Parcel Charges
2,852
1.5
2,950
2.0
3,051
2.0
3,145
2.0
3,241
1.9
Fees & Charges
39,049
20.8
41,052
27.2
42,795
27.4
44,613
27.8
46,560
27.2
Borrowing Proceeds
7,048
3.8
-
-
-
-
-
-
-
-
Other Sources
67,471
36.0
32,360
21.4
31,325
20.1
29,583
18.4
33,339
19.4
Total Revenues
187,492
100
151,177
100
156,103
100
160,376
100
171,426
100
Other Sources include:
Development Fees Total
55,232
29
23,953
16
25,668
16
24,249
15
26,826
16
Interest
1,868
1
1,883
1
1,898
1
1,913
1
1,928
1
Grants (Other Govts)
6,121
3
6,524
4
3,759
2
3,421
2
4,585
3
Property Sales
4,250
2
-
-
-
-
-
-
-
-
67,471
36
32,360
21
31,325
20
29,583
18
33,339
19
Objectives & Policies
Property Tax Revenue is the City's primary revenue source, and one which is heavily reliant on the
residential class. Diversification of the tax base and generation of non -tax revenue are ongoing
objectives, outlined in Financial Sustainability Policy 5.52 section 6.
The Financial Plan includes property tax increases totaling 2.97% for 2015, and 3.25% from 2016 to
2019 for:
• General Purposes
• Infrastructure Sustainability
• Parks and Recreation Master Plan implementation
• Drainage Improvements
Additional property tax revenue due to new construction is also included in the Financial Plan at
1.1% in 2015 and 2% annually for 2016 through 2019. Additional information on the tax increases
and the cost drivers can be found in the most recent Financial Plan Overview Report. Specific
policies discussing the tax increases are included in the Financial Sustainability Plan and related
policies which were adopted in 2004.
Property tax revenue includes property taxes as well as grants in lieu of property taxes.
Parcel Charges are largely comprised of a recycling charge, a sewer charge and, on certain
properties, a local area service or improvement charge. Parcel charges are a useful tool to charge all
or a subset of properties for a fixed or variable amount to support services. Unlike property taxation
the variable amount does not need to be related to property assessment value, but can be
something that more accurately reflects the cost of the service.
Attachment to Maple Ridge 2015-2019 Financial Plan Bylaw 7145-2015
Statement 2 (cont.)
Revenue and Property Tax Policy Disclosure
Fees & Charges
The Business Planning Guidelines call for an increase of 5% in fees as a guideline. Actual fee
increases vary depending on the individual circumstances, the type of fee and how it is calculated.
Fees should be reviewed annually and updated if needed. Recent fee amendments include
recreation fees, development application fees, business license fees and cemetery fees. A major
amendment to the Development Costs Charges (DCC), recommended no more frequently than every
five years, was completed in 2008. Minor DCC amendments are done more frequently. Some fees
are used to offset the costs of providing specific services. The utility fees are reviewed annually with
a view towards using rate stabilization practices to smooth out large fluctuations in rates, as set out
in the Business Planning Guidelines.
Borrowing Proceeds - Debt is used where it makes sense. Caution is used when considering debt as
it commits future cash flows to debt payments restricting the ability to use these funds to provide
other services. The source of the debt payments needs to be considered as does the justification for
advancing the project. More information on borrowing previously approved can be found in the most
recent Financial Plan Overview report.
Other Sources will vary greatly year to year as it includes:
• Development fees which fund capital projects from the DCC Reserve
• Contribution from others in relation to capital
• Grants which are sought from various agencies and may be leveraged with City funds
PROPERTY TAX DISCLOSURE
Property Tax Revenue Distribution
Property Class
Taxation Revenue
('OOOs)
Assessed Value
('OOOs)
Tax Rate
($/1000)
Multiple
(Rate/Res.Rate)
1
Residential
53,677
77.9%
12,004,518
91.1%
4.4713
1.0
2
Utility
540
0.8%
13,495
0.1%
40.0000
8.9
4
Major Industry
573
0.8%
17,230
0.1%
33.2682
7.4
5
Light Industry
2,808
4.1%
228,203
1.7%
12.3038
2.8
6
Business/Other
11,082
16.1%
900,715
6.8%
12.3038
2.8
8
Rec./ Non -Profit
38
0.1%
2,901
0.0%
13.1537
2.9
9
Farm
157
0.2%
4,905
0.0%
31.9560
7.1
Total
68,875
100%
13,171,968
100%
Attachment to Maple Ridge 2015-2019 Financial Plan Bylaw 7145-2015
Statement 2 (cont.)
Revenue and Property Tax Policy Disclosure
PROPERTY TAX DISCLOSURE
Objectives & Policies
Property taxes are the City's largest source of revenue and are contained by efficient business
practices. Annual business planning practices are the mechanism for resource allocation decisions.
The City's Financial Sustainability Policy section 6 discusses the necessity of diversifying the tax
base. Development of employment related properties is one method of diversification; therefore a
key performance measurement in Strategic Economic Initiatives tracks the increased investment
and development of non-residential properties.
A policy in the Financial Sustainability Plan that calls for stable tax increases and the adoption of the
annual increase early in the prior year in the Business Planning Guidelines provides citizens with a
more stable and predictable set of cost increases. In some cases costs are phased in over multiple
years to stay within the set tax increases.
Property Tax Rates
It is policy to adjust property tax rates annually to negate the impact of fluctuations in the market
values of properties. Tax rates are reduced to negate the market increases. Property tax increases
are then applied at the same relative increase for all classes, unless legislation restricts the rates, as
with Class 2, Utility.
The Business Class and Light Industry Class properties have the same tax rate and are treated as a
composite class when setting the tax rates, as the types of businesses in each class are similar.
A review was done on the Major Industry Class rates and the recommendation from the Audit and
Finance Committee and Council was a 5% property tax reduction in both 2009 and 2010 to support
additional investments in the subject property and to keep rates competitive. As part of the Financial
Planning discussions in December, 2013 Council authorized $70,000 each year for five years, 2014-
2018, to reduce the Major Industrial Class property tax rate.
In reviewing the tax rates to ensure competitiveness, absolute rates, tax multiples and overall tax
burden are considered. The impact that assessed values have when comparing other geographical
areas must be considered in a comparison of tax rates.
Permissive Tax Exemptions
Council has set policies around the use of permissive tax exemptions. These are Council Policies
5.19 through 5.24. These policies discuss Churches, Community Halls, Heritage Sites, Homes for
the Care of Children and the Relief of the Aged, the Poor, the Disabled and the Infirm, Municipal
Recreational Services, Private Hospitals and Daycares, Private School and Youth Recreation Groups.
Revitalization Tax Exemption Program
The Employment Land Investment Incentive Program is designed to encourage job creation by
supporting private investment in buildings and infrastructure on identified "employment lands".
More information on this tax exemption can be found on our website; you may also refer to Bylaw
7112-2014.
Attachment to Maple Ridge 2015-2019 Financial Plan Bylaw 7145-2015
Statement 3
Capital Expenditure Disclosure
The sole purpose of this statement is to meet legislative requirements and highlight the value of the
DCC program; no other conclusions should be drawn from the figures as the information could be
misleading. This disclosure is required under the Local Government Act s. 937(2); Capital costs
attributable to projects to be partially funded by Development Cost Charges (DCC) must be included
in the financial plan. The DCC program includes projects as far out as 2035 so the capital
expenditures must be extended to match. Certain types of projects are not planned past the five
year time horizon of the financial plan. Much less scrutiny is given to projects that are planned in
years 2020 through 2035. Projects in these years typically exceed likely funding available.
Capital Works Program for 2020 - 2035
(in $ thousands)
Capital Works Program 329,579
Source of Funding
Development Fees
Development Cost Charges 137,586
Parkland Acquisition Reserve -
Contribution from Others 6,667
144,253
Borrowing Proceeds 6,319
Grants 41,695
Transfer from Reserve Funds
Capital Works Reserve
8,935
Cemetery Reserve
115
Equipment Replacement Reserve
1,060
Fire Department Capital Reserve
2,736
Recycling Reserve
250
Transfer from Reserve Funds
13,506
Revenue Funds 124,216
Source of Funding 329,579