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Business Plan 2009 – 2013 Page 1 of 42 Financial Overview Report District of Maple Ridge TO: His Worship Mayor Ernie Daykin DATE: December 8, 2008 and Members of Council FROM: Chief
Administrative Officer ATTN: Workshop/Business Planning SUBJECT: 2009-2013 Financial Plan Overview EXECUTIVE SUMMARY: Earlier this spring, Municipal Council established the budget guidelines
which staff have used to prepare the 2009 through 2013 Business and Financial Plans. The purpose of this report is to provide Council with a high level financial overview based on financial
performance to date, departmental business plans and recommended priorities for 2009 and beyond. The final outcome will be a Financial Plan Bylaw for Council’s consideration. RECOMMENDATION(S):
A. That staff be directed to prepare a 2009-2013 Financial Plan incorporating the Business Plans and include the following: 1. Tax increase of 3% per year for general purposes in 2009
through 2013. 2. Tax increase of 1% per year for infrastructure sustainability in 2009 through 2013. 3. The continued implementation of the Fire Department Master Plan and associated
levy. 4. Growth in tax revenue from all property classes combined is estimated at 2.35% per year. Growth refers to increases in property value due to non-market changes, such as new
construction. The actual growth is not known until early April of each year. 5. On the recommendation of the Finance and Audit Committee, a reduction of the 2009 calculated Major Industry
tax rate of 5%, to ensure tax rates remain competitive, as discussed on page 25. 6. Water Utility rate increase of 9% per year; Sewer Utility rate increase of 5% per year, as discussed
on page 19. 7. Recycling rate increase of 4.5% in 2009, 3.5% in 2010 and 3% thereafter, as discussed on page 20. 8. Growth Packages, new and previously approved, as detailed in Figure
5 on page 10, in accordance with Financial Sustainability Policy 5.52-2.0. Adjustment to Growth Packages as detailed in Figure 6 on page 11. 9. Extraordinary items to be funded from
General Revenue surplus as detailed in Figure 7 on page 11, including capital improvement to the downtown totaling $835,000 in 2009, $300,000 in 2011 and $300,000 in 2013 and operating
items approved in the 2007-2011 Financial Plan totaling $110,000.
Business Plan 2009 – 2013 Page 2 of 42 Financial Overview Report 10. Capital Works Program totaling $28 million for 2009, $34 million for 2010, $33 million for 2011, $23 million for
2012 and $16 million in 2013 as summarized in Figure 10 and Figure 11 on page 13, with project listing on page 35. 11. The borrowing of funds, if the DCC Reserves near depletion: $8
million for 2009, $2.8 million for 2010 and $5.3 million for 2011, as outlined in Figure 16 on page 22 and in accordance with Financial Sustainability Policy 5.52-8.0. 12. Allocation
of sustainability funds to various business areas in the amounts of $866,000 for 2009, $1.34 million for 2010, $1.85 million for 2011, $2.39 million for 2012 and $2.96 million for 2013,
as outlined in Figure 21 on page 29 and in accordance with Financial Sustainability Policy 5.52-7.0 and 7.1. 13. Cost and revenue adjustments which are included in the base budget as
itemized in the reconciliation of General Revenue Surplus in Figure 13 on page 16. 14. Incremental costs listed in Figure 14 on page 18. B. That early in 2009 Council provides policy
direction on items in Section 5, page 23. C. That staff be directed to seek elector approval to enable the District to obtain debt financing, once the DCC Reserves are nearing depletion
and if any projects may qualify, seek the Inspector of Municipalities’ approval to include the interest portion of debt payments for those projects in DCC rates and to amend the DCC
Rate Imposition Bylaw accordingly. DISCUSSION: This report contains information that will assist in providing a high level overview of the proposed 2009-2013 financial plan. Specifically,
details are provided on: 1. 2008 Financial Outlook .....................................................................................................................................3
2. Where the Money Comes From /Where It Is Allocated....................................................................................5 2.1. New Revenue............................................
...........................................................................................5 2.2. Transfers ...........................................................................................
...................................................6 2.3. Expenditures.................................................................................................................................
.......7 2.4. Budget Allocations for Growth .............................................................................................................9 2.5. Surplus as a Source of
Funds............................................................................................................11 2.6. Capital Program..............................................................
...................................................................13 2.7. Financial Plan Reconciliation...............................................................................................
..............15 2.8. Incremental Adjustments...................................................................................................................18 3. Water, Sewer and
Recycling Rates ..................................................................................................................19 4. Borrowing.....................................................
.....................................................................................................20 Previously Approved Borrowing..................................................................
.....................................................21 5. Further Items...............................................................................................................................
.....................23 6. Impact to the “Average Home”.........................................................................................................................25 7.
Property Taxation Policy...................................................................................................................................25 8. Reserves.............................
..............................................................................................................................26 8.1. Capital Works Reserve ...........................................
............................................................................28 8.2. Infrastructure Sustainability Reserve..............................................................................
..................29 8.3. Critical Building Infrastructure Reserve ............................................................................................30 8.4. Fire Department
Capital Acquisition Reserve...................................................................................30 8.5. Fire Department Equipment Replacement Reserve...................................
......................................31 9. Town Centre Commercial Operation ................................................................................................................31
10. Conclusions ......................................................................................................................................................32 11. Infrastructure
Sustainability .............................................................................................................................34 12. Capital Works Program Project Listing..............
...............................................................................................35
Business Plan 2009 – 2013 Page 3 of 42 Financial Overview Report 1. 2008 Financial Outlook To set some context leading into Financial Plan discussions, it is useful to review financial
performance in the General Revenue Fund. The following information is based on results to the end of October. Revenues: Positive: $500,000 in revenue from a property sale previously
deferred pending the settlement of environmental issues has been recognized and in accordance with policy, will be transferred to capital reserves. Building Permit revenues approximately
$500,000 Subdivision Inspection Fees approximately $375,000 Proceeds from resale of ECRA units approximately $100,000. MFA discharge $119,181 (transferred to Local Improvement
Reserve) Negative Gravel revenues of at least $292,000 will be realized this year. This is less than budget expectations of $456,500, but well above levels realized in prior years.
A gravel agreement has been reached which enables future years’ budgets to be met and possibly increased. Development revenue associated with acquisition of joint school /park sites
was not realized (associated expenditures did not occur.)
Business Plan 2009 – 2013 Page 4 of 42 Financial Overview Report Expenditures RCMP contract will come in under budget, with 50% of the savings transferred to the Police Services Reserve
in accordance with Council direction. Savings of up to $400,000 could be realized in Engineering & Operations as some studies and projects scheduled for 2008 are likely to be deferred
to 2009. Any savings will be transferred to reserves to allow the projects to proceed next year. $220,000 of expenditures for snow removal in excess of budget incurred earlier this
year. Should this result in an overall budget shortfall, the Snow Removal Reserve has the capacity to cover this. In Planning, we will likely see savings in the neighborhood of $300,000
from a combination of staffing vacancies for part of the year and deferred projects. As with Engineering, there will be a need to transfer much of the savings to a reserve to allow
the projects to proceed next year. Savings of approximately $150,000 are anticipated in the Finance area as a result of staffing vacancies and scheduling variances for some expenditures.
As with other areas, much of the savings will be transferred to reserves at the end of the year to allow work to proceed in 2009. The above summary is based on results to the end of
October. Although the items detailed above point to a General Revenue surplus it may be prudent to wait for more accurate information to commit any of this projected amount to unfunded
initiatives. For the past several months, we have been seeing signs that the brisk pace of development experienced for the past number of years is slowing in step with the overall worldwide
economic slowdown. Development Cost Charge collections in particular are much lower than the last few years. Council’s financial planning framework gives us the ability to see ourselves
through these difficult times. For instance, we have reserves in place (as discussed in Section 8) that will assist us. As well, Building Permits are one of our main sources of non-tax
revenue and while such revenues have been in excess of $2 million for the last few years, the budgeted level was set at $1.7 million so that we would be better prepared for some softening
in activity. 2008 Capital Projects The budget for the Capital Works Program in 2008 is $104 million. This number is higher than the number in subsequent years because the first year
of the capital program includes projects approved in prior years that are not yet complete, but are still a priority. The budget of projects that have started is $57.5M. Of these projects,
$12.2M are complete or nearly complete, $32.9M are well under way and $12.5M are in the early stages of design and tendering. The budget of projects not yet started, is approximately
$46.5 million. The reasons for these project delays are summarized as follows: School/Park Sites Agreement not yet signed $17.9M 38% Reliant on Grant Funding not yet received $11.0M
24% Reliant on Other Capital Work $ 9.3M 20% Land Acquisition delays $ 1.9M 4% Other Funding delays $ 2.4M 5% Staffing, Strategic & Technical delays $ 3.2M 7% Other $ 0.8M 2%
Business Plan 2009 – 2013 Page 5 of 42 Financial Overview Report Projects that do not complete in 2008 will have their funding carried forward to 2009. 2. Where the Money Comes From
/Where It Is Allocated This section provides a look at what the District can expect in additional revenue each year over and above the amount budgeted in the year prior. Growth in the
property tax base and property tax increases provide the bulk of new revenue, which amounts to $3,450,000 in 2009. Figure 1 illustrates the growth rate and tax increase assumptions
reflected in the proposed financial plan. The growth revenue refers to the tax revenue from non-market changes (i.e. new construction) in property assessments in all property classes.
Even if the residential growth rate exceeds 2.35%, the overall growth in tax revenue is still dependent on growth in non-residential property classes such as business and light industry.
The growth rate of 2.35% for 2009 is realistic with a bias towards being conservative, as the overall growth last year was just over 3%. We will monitor development activity in 2009
and adjust growth projections as needed. The revenue from increased taxation is in line with the direction received from Municipal Council earlier this year. The property tax base is
mainly residential and not largely reliant on any one employer or industry. This gives us a measure of strength during uncertain economic times. 2.1. New Revenue Figure 1: Conceptual
Overview of New Revenue Item 2009 2010 2011 2012 2013 Previous Year's Taxation 43,625,000 47,075,000 50,775,000 54,750,000 58,975,000 Growth Rate 2.35% 2.35% 2.35% 2.35% 2.35% Growth
Revenue 1,025,000 1,100,000 1,200,000 1,275,000 1,375,000 Previous Year's Taxation + Growth 44,650,000 48,175,000 51,975,000 56,025,000 60,350,000 Tax Increase Rate 4.00% 4.00% 4.00%
4.00% 4.00% Tax Increase 1,775,000 1,925,000 2,075,000 2,250,000 2,425,000 Fire Levy Increase 650,000 675,000 700,000 700,000 350,000 Total Increase in Taxation + Growth 3,450,000 3,700,000
3,975,000 4,225,000 4,150,000 Next Year's Taxation Base 47,075,000 50,775,000 54,750,000 58,975,000 63,125,000 Increases in gravel related revenue: 175,000 0 0 0 0 Increases in other
revenue: 675,000 325,000 225,000 225,000 225,000 Increase in General Revenue 4,300,000 4,025,000 4,200,000 4,450,000 4,375,000
Business Plan 2009 – 2013 Page 6 of 42 Financial Overview Report In 2009, other revenues are projected to increase by $850,000 over the amount previously budgeted. A gravel agreement
was entered into in 2008 and it includes provisions for us to receive certain minimum additional revenue of $175,000 more than the $456,500 we had previously budgeted for. The actual
amount of revenue may be more, but as it is dependant on development activities, we believe it is prudent to err on the side of conservatism at this time. The increase in other revenues
includes changes in investment income, cemetery fees, Parks & Leisure Service fees and recoveries, recycling fees, parking fees and dog licenses. In most cases, these revenues are offset
by increased expenditures. The figures 2 and 3 show the demands against this revenue.1 2.2. Transfers The District has committed to making transfers to certain reserves in order to
provide longer term financial stability. These transfers reduce the revenues that are available to meet current expenditures. Approximations of such transfers are shown in the next
table. The amounts reflect the change from one year to the next, rather than gross amounts to be transferred, to highlight the draw against each year’s additional revenue. Figure 2:
Conceptual Overview of Changes to Transfers Item 2009 2010 2011 2012 2013 Increase in General Revenue 4,300,000 4,025,000 4,200,000 4,450,000 4,375,000 Transfers to Reserves: Infrastructure
Sustainability -450,000 -475,000 -500,000 -525,000 -575,000 Equipment Replacement Reserve -PWD -50,000 -75,000 -25,000 -75,000 -50,000 Fire Dept. Capital Acquisition Reserve 125,000
-75,000 -50,000 -50,000 -75,000 Police Services Reserve -25,000 75,000 150,000 -150,000 -275,000 Capital Works Reserve -25,000 -25,000 -25,000 -25,000 -25,000 Reserve For Committed
Projects 200,000 -100,000 -10,000 -90,000 0 Other Transfers -50,000 -25,000 -100,000 -75,000 -75,000 Available after transfers 4,025,000 3,325,000 3,640,000 3,460,000 3,300,000 A discussion
of our Reserves follows in Section 8 but there are a couple of items worth noting on this table. Specifically, in 2008, Council approved a 1% tax increase to be set aside for looking
after our existing infrastructure. The reductions in the Fire Department Capital Acquisition Reserve and the Reserve for Committed Projects in 2009 are anomalies as both of these reserves
benefited from operating savings in 2008 that are not expected to continue in 2009. The remaining new revenue for 2009, after the reserve commitments, is $4 million. 1 Items with offsetting
entries within general revenue have been removed for simplicity.
Business Plan 2009 – 2013 Page 7 of 42 Financial Overview Report 2.3. Expenditures Beyond the transfers noted above, a number of adjustments to expenditures are required. We experienced
inflationary pressures in a number of areas that must be provided for. The impacts of these expenditure adjustments are captured in Figure 3 below and a discussion follows. In addition,
growth-related enhancements have been addressed and are detailed in Figure 5 on page 10. Figure 3: Conceptual Overview of Expenditure Changes Item 2009 2010 2011 2012 2013 Available
after transfers 4,025,000 3,325,000 3,640,000 3,460,000 3,300,000 Increase in expenditures: Labour (excluding Fire Dept) -1,425,000 -1,050,000 -950,000 -850,000 -900,000 Fire Department
-925,000 -825,000 -850,000 -900,000 -550,000 Policing (RCMP, IHIT, ERT, ECOMM) -900,000 -825,000 -950,000 -900,000 -925,000 Fraser Valley Regional Library -100,000 -100,000 -125,000
-125,000 -125,000 Public Art -40,000 -10,000 -10,000 -10,000 0 Inflation Allowance -100,000 -125,000 -125,000 -150,000 South Bonson Amenity Bldg -25,000 -175,000 Debt <increase>/decrease
50,000 -25,000 Growth -325,000 -425,000 -600,000 -350,000 -350,000 Reduction to Growth to fund inflation 200,000 100,000 Capital Funded from General Revenue -150,000 -150,000 Fuel/Contracts/Other
-225,000 -25,000 -50,000 -25,000 -75,000 Available after expenditures 110,000 -10,000 55,000 25,000 75,000 Surplus from prior year and rounding -64,006 54,765 -9,953 44,120 10,621 General
Revenue Surplus 45,994 44,765 45,047 69,120 85,621 It is important to keep in mind that the numbers in the preceding three tables represent a change from one year to the next. For example,
in Figure 3 above, the labour amount means that 2009 costs are forecasted to be $1.4 million higher than 2008, so will require $1.4 million of the new revenue for 2009. We have little
discretion in funding these items as they reflect the costs associated with existing contracts (as in labour, RCMP contract, library, recycling), or in the case of the Fire Department
Master Plan, related to a change in the fire service delivery model. These next few points provide further detail about items in Figure 3: • Labour: This line includes wage and benefit
cost increases. There were several positions added through succession planning and growth funding. There was an additional position added due to the cancelling of a contract and taking
the service on ourselves. There were additional police support positions funded by savings in the RCMP contract. The remainder of the increase is wage and benefit cost increases of
existing positions.
Business Plan 2009 – 2013 Page 8 of 42 Financial Overview Report • Fire Department: Implementation of the Fire Department Master Plan is reflected, plus operating costs associated with
operating a fourth fire hall after construction. The balance of the increase is the cost of existing positions, including wage and benefit costs. • Policing: This line includes the
cost for contracts associated with Police Services including RCMP, community police officers, centralized dispatch services and regional initiatives such as an Integrated Homicide Team
and an Emergency Response Team, Forensic Identification, a Dog Unit and a Traffic Reconstruction Unit. The RCMP contract has been adjusted to include additional members, none in 2009,
two in 2010, three in 2011, three in 2012 and two in 2013. Funding from the Police Services Reserve softens the impact to taxpayers. • Library: The cost of the contracted service with
FVRL is estimated to increase by 5% per year. Changes in exchange rates, service levels or other factors including changes to the allocation of costs among members may impact this figure.
• Inflation Allowance: There is no contingency for inflation for 2009. Beyond 2009, a small contingency exists. • Debt: New debt payments were already included for several projects
approved in the 2008-2012 Financial Plan. Other payments are dropping off as existing debt expires. Debt is discussed in more detail under the section called “Borrowing” starting on
page 20. • Growth: Growth projections and increases to revenues as a result of growth are built in. In order to recognize the costs associated with growth and the demand it places on
the new revenues, a number of growth increments are included in alignment with Financial Sustainability Policy 5.52-2.0. Some growth increments are directed towards general areas rather
than specific programs. The growth funding and where it is being allocated is noted in Figures 5 and 6. • Other: This line captures numerous minor adjustments to other accounts such
as materials, utilities, training, supplies and maintenance. Of the $4.3 million available in new revenue, the demand from just the labour category alone (Figure 3) is 33%, excluding
Fire Department labour. Infrastructure Sustainability requires 10%. The RCMP contract continues to increase at a rate beyond the District’s general tax increase. The Fire Master Plan
implementation increases each year, along with a special tax levy to support it. The inflation allowance covers over 1,000 items, amounting to almost $9 million in materials and services,
for which increases are not specifically built into departmental budgets. A general increase is captured in fiscal services to cover inflationary increases for 2010 and beyond. Following
is a chart illustrating the distribution of new revenues for the 2009 year.
Business Plan 2009 – 2013 Page 9 of 42 Financial Overview Report Figure 4: Conceptual Overview of Distribution of New Revenue -$4.3 million, 2009 Fire Master Plan $800K 19% Policing
$900K 21%Other Categories $300K 7% Growth Costs $325K 8% Library $100K 2% Infrastructure Sustainability $450K 10% Labour $1.4 M 33% The preceding section provided a brief overview of
increases in revenues, and where that money goes. It illustrates those items that have an impact on general revenue. The rate of cost increases in certain areas (i.e. Police) is beyond
the rate of the general tax increase, leaving minimal room for enhancements, unless reductions are considered in other areas or new revenue sources, such as grants, are found. 2.4.
Budget Allocations for Growth The discussion above touched on growth amounts allocated to budget areas, but only to the extent that they drew upon general revenue. A number of growth
increments are included in alignment with Financial Sustainability Policy 5.52-2.0. The following table captures all growth allocations in the financial plan. Some are directed towards
general areas rather than specific programs. As we approach later years and the community’s needs are more certain, these packages will be allocated more specifically.
Business Plan 2009 – 2013 Page 10 of 42 Financial Overview Report Figure 5: Growth Packages in Financial Plan (figures represent total budget, not year over year change) Source Allocated
to: 2009 2010 2011 2012 2013 General Rev Fire Department Capital 55,000 105,000 155,000 205,000 255,000 Operations 65,000 130,000 195,000 260,000 325,000 Parks Maintenance* 40,000 110,000
195,000 260,000 325,000 Software Maintenance 33,000 41,000 64,000 84,000 104,000 Public Works & Development 80,000 140,000 265,000 310,000 355,000 Allocated to: Transportation Technician
-5,000 -5,000 -5,000 -5,000 -5,000 Funding of inflationary costs -5,000 -70,000 -90,000 -90,000 -90,000 Balance to be allocated 70,000 65,000 170,000 215,000 260,000 Corporate & Financial
Services 80,000 140,000 265,000 310,000 355,000 Allocated to: Funding of inflationary costs -5,000 -70,000 -90,000 -90,000 -90,000 Balance to be allocated 75,000 70,000 175,000 220,000
265,000 Community Dev, Parks & Rec 80,000 140,000 265,000 310,000 355,000 Allocated to: Recreation Growth -78,400 -97,400 -103,500 -107,500 -107,500 Funding of inflationary costs -1,600
-42,600 -120,800 -90,000 -90,000 Balance to be allocated 0 0 40,700 112,500 157,500 General Revenue Subtotal 433,000 806,000 1,404,000 1,739,000 2,074,000 Water Rev Water Maintenance
15,000 30,000 45,000 60,000 75,000 Sewer Rev Sewer Maintenance 10,000 20,000 30,000 40,000 50,000 *Additional funding for the Parks area to deal with future growth comes mainly from
general revenue, building up incrementally. However, a significant amount of green space had been turned over to the Parks area and some funding was required earlier to bridge the gap,
see Figure 6. There was no capacity within general revenue in 2007 to increase the growth allocation so surplus was targeted to fill the gap for 2007 through 2009. The use of surplus
is discussed in Section 2.5. Of the amounts in the table above, a significant portion had been previously approved in the 2008-2012 Financial Plan. For reference, the following table
outlines just those amounts which have been changed. Generally, reductions in the Growth Packages are to fund inflationary costs of existing programs.
Business Plan 2009 – 2013 Page 11 of 42 Financial Overview Report Figure 6: Changes to Growth Packages Source Allocated to: 2009 2010 2011 2012 2013 General Rev Operations -30,000 5,000
-50,000 65,000 Fire Department -25,000 -50,000 50,000 Parks Maintenance 30,000 35,000 30,000 65,000 Software Maintenance 23,000 21,000 27,000 27,000 20,000 Corporate & Financial Services
Growth 45,000 90,000 Community Dev, Parks & Rec Growth 45,000 90,000 Public Works & Development Growth 45,000 90,000 Corporate & Financial Services Adjustments -5,000 -70,000 -90,000
-90,000 -90,000 Community Dev, Parks & Rec Adjustments -5,000 -70,000 -90,000 -90,000 -90,000 Public Works & Development Adjustments -5,000 -70,000 -90,000 -90,000 -90,000 Adjust Timing
of CDPR Packages* 3,400 27,400 -30,800 General Revenue Subtotal 11,400 -146,600 -293,800 -158,000 200,000 * Due to costs in 2009 and 2010 exceeding the growth allocation, an adjustment
in the timing of the growth funding has been accommodated through the use of accumulated surplus. Without this adjustment the balance to be allocated for Community Dev, Parks & Rec.
in Figure 5 would be negative for 2009 and 2010. 2.5. Surplus as a Source of Funds Several projects were unable to be funded from increases in revenues. The District’s accumulated surplus
had been targeted to provide funding for the following projects: Figure 7: Items to be funded from Surplus Item 2009 2010 2011 2012 2013 Operating items approved in prior financial
plans: BC Disability Games 45,000 Citizen Satisfaction Survey 15,000 Park Growth Incremental 50,000 Other Adjustments: Community Dev, Park & Rec Growth 3,357 27,415 -30,772 Capital
Improvments to the Downtown Spirit Square -increase funding to $1.3M 235,000 Design Work -Downtown Improvements 200,000 Lougheed (223 St -224 St) 400,000 224 St. (Spirit Sq. -DTR) 300,000
Lougheed (222 St -223 St) 300,000 933,357 27,415 284,228 0 300,000 Approved by Council Resolution in 2008 Fibre Network 270,000
Business Plan 2009 – 2013 Page 12 of 42 Financial Overview Report The impact that these draws have on accumulated surplus is illustrated below. Figure 8: General Revenue Accumulated
Surplus General Revenue Accumulated Surplus $0.0 M $0.5 M $1.0 M $1.5 M $2.0 M $2.5 M $3.0 M 2006 2007 2008 2009 2010 2011 2012 2013 Succession Planning was initially funded in 2007
from surplus. Succession Planning may take many forms and the timing of it varies based on the specific set of circumstances faced by each area. The balance of the previously approved
funding has been committed as follows: Figure 9: Succession Planning Implementation Succession Planning 2009 2010 2011 2012 2013 Opening Balance 588,536 358,536 113,536 Funding Allocation
Information Services -140,000 -35,000 Operations Centre -60,000 -180,000 -100,000 Other -30,000 -30,000 -13,536 Closing Balance 358,536 113,536 0
Business Plan 2009 – 2013 Page 13 of 42 Financial Overview Report 2.6. Capital Program The five-year Capital Works Program is $134 million; 2009 planned capital projects are in excess
of $28 million, exclusive of projects that may be carried forward from previous years. It should be noted that developers will contribute millions in subdivision infrastructure to our
community and these contributions are not included in our capital plan. A detailed project list is included in an Appendix beginning on page 35. Projects carried forward from previous
years will be included in a Financial Plan amendment in the spring of 2009. Figure 10: Proposed Capital Spending by Category Category 2009 2010 2011 2012 2013 Total Drainage 1,199,358
814,439 6,157,436 6,240,858 732,630 15,144,721 Government Services 864,000 278,500 380,000 525,000 250,000 2,297,500 Highways 17,637,022 15,473,100 21,025,641 3,900,485 5,566,719 63,602,967
Operating Capital 60,030 60,030 60,030 60,030 60,030 300,150 Park Acquisition 1,331,999 200,000 200,000 1,333,160 1,882,980 4,948,139 Park Improvement 357,575 719,798 967,339 3,248,440
2,352,417 7,645,569 Protective Services 164,000 1,488,960 385,000 1,665,000 0 3,702,960 Recreation Services 1,062,000 175,000 0 0 100,000 1,337,000 Sewage 1,951,250 9,204,484 880,592
1,146,756 1,515,853 14,698,935 Technology 1,707,285 801,664 862,173 1,447,461 468,325 5,286,908 Water 1,957,137 4,312,025 2,139,265 3,806,082 3,102,857 15,317,366 Total Capital Program
28,291,656 33,528,000 33,057,476 23,373,272 16,031,811 134,282,215 The following table illustrates the sources of funding for these projects. The proposed capital program is relatively
large due to borrowing (Debt Financing) and projected funding from other sources including Translink and grants from provincial and federal governments. Figure 11: Proposed Capital
Funding Sources Funding Source 2009 2010 2011 2012 2013 Total Debt Financing 8,025,600 2,750,000 5,250,000 0 0 16,025,600 DCC Fund (not debt) 4,221,236 8,122,988 3,123,159 4,884,269
5,552,842 25,904,494 General Revenue 2,343,901 2,340,823 2,447,428 2,568,167 2,482,890 12,183,209 Capital Works Reserve 1,273,115 1,367,682 127,473 93,415 35,626 2,897,311 Infrastructure
Sustainability Reserve 561,828 920,166 1,104,243 1,354,000 1,800,000 5,740,237 Fire Dept Capital Reserve 65,000 1,053,960 0 950,000 0 2,068,960 Equip Replacement Reserves 2,179,785
2,194,185 1,735,125 2,159,265 864,784 9,133,144 Translink 2,344,411 75,000 50,000 212,500 99,390 2,781,301 Sewer Capital 757,250 1,931,467 602,283 895,256 527,720 4,713,976 Water Capital
1,626,380 2,186,664 1,652,765 1,356,859 1,610,845 8,433,513 Grants, LIP, 3rd Parties 3,223,350 9,942,015 16,051,950 8,366,492 2,307,713 39,891,520 Surplus 835,000 0 300,000 0 300,000
1,435,000 Other Funding Sources 834,800 643,050 613,050 533,049 450,001 3,073,950 Total Capital Program 28,291,656 33,528,000 33,057,476 23,373,272 16,031,811 134,282,215
Business Plan 2009 – 2013 Page 14 of 42 Financial Overview Report Debt financing provides about $16 million over the five year plan in addition to the $21.8 million borrowing that was
approved in 2008. Borrowing is used for a variety of projects and is discussed in detail in Section 4, Borrowing, with Figure 16 listing the debt funded projects. The Development Cost
Charge (DCC) Reserve funds $25.9 million in projects over the five year plan. The DCC Reserve also services debt payments which are discussed in more detail in Section 4, Borrowing.
Given the slow-down in DCC collections, we will have to monitor cashflows closely and may have to postpone some projects. Reserves are a key funding source for capital as they allow
for strategic financial planning and facilitate gradual rate increases to taxpayers. The reserve balances and projections for key reserves are shown in Section 8, page 26. The Infrastructure
Sustainability Reserve is used for major rehabilitation and replacement of the District’s infrastructure. The Fire Department Capital Reserve is used for the acquisition of new growth-related
facilities and equipment. Within the Equipment Replacement Reserve, the fire department, public works operations and technology all have dedicated equipment replacement funds. Other
Funding Sources, noted on Figure 11, references sources such as our own reserve accounts. The percentage of the 2009 planned projects funded by General Revenue is 8%. There are other
reserves that are funded by General Revenue but the use of these reserves is for specific purposes. Accumulated Surplus has been identified as a source of funding for projects associated
with the downtown improvements. A significant portion of this project was funded through senior government grants in 2008. The 2009-2013 portion of this project is included in the financial
plan on the basis of one third funding from the municipal surplus and two thirds from senior governments. If senior government grants do not materialize we should have the capacity
to fund the 2009 portion of this project from our own resources but future years will have to be reevaluated. The capital program includes over $42 million of funding from others as
itemized in Figure 12. The majority of this funding has not yet been secured; projects will be reevaluated and reprioritized if funding is not secured.
Business Plan 2009 – 2013 Page 15 of 42 Financial Overview Report Figure 12: Capital Funded by Others Projects Funded by Others 2009 2010 2011 2012 2013 Total Translink 232 St (S Alouette
-Abernethy) 712,921 712,921 Abernethy Way 1,081,490 1,081,490 Lougheed Hwy Downtown (223-224) 500,000 500,000 Others 50,000 75,000 50,000 212,500 99,390 486,890 Translink Total 2,344,411
75,000 50,000 212,500 99,390 2,781,301 Grants, LIP, 3rd Parties Abernethy Way 2,750,000 9,250,000 12,000,000 Downtown Improv. -224 (Spirit Sq to DTR) 600,000 600,000 Downtown Improv.
-Lougheed (222-223) 600,000 600,000 Downtown Improv. -Lougheed (223-224) 800,000 800,000 Drainage 200,000 200,000 Drainage -Fraser Escarpment North 5,000,000 5,000,000 10,000,000 Highways
221,400 120,065 383,042 482,713 1,207,220 Leisure Centre -Energy retrofit 200,000 200,000 Local improvement projects 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 Sewer
Extension to Corrections 1,000,000 6,000,000 7,000,000 Whonnock Lake Canoe Facility 1,980,000 1,980,000 Youth Action Park Albion 225,000 225,000 Other 1,950 71,950 1,950 3,450 79,300
Grants, LIP, 3rd Parties Total 3,223,350 9,942,015 16,051,950 8,366,492 2,307,713 39,891,520 Total Project Funded by Others 5,567,761 10,017,015 16,101,950 8,578,992 2,407,103 42,672,821
2.7. Financial Plan Reconciliation The discussion so far has focused on the additional revenues that come into the municipality and the demands upon them. This next section outlines
how this information applies to the financial plan that Council will be considering. In May 2008, Council approved a financial plan for 2008 through 2012. This is used as a basis to
create a 2009-2013 financial plan. The following table reconciles the changes to the previously adopted financial plan.
Business Plan 2009 – 2013 Page 16 of 42 Financial Overview Report Figure 13: Reconciliation of 2008-2012 Financial Plan to 2009-2013 Proposed Financial Plan General Revenue Fund (GRF)
2009 2010 2011 2012 GRF Surplus in May 13, 2008 Financial Plan Bylaw 9,000 23,000 1,000 363,000 Public Art -40,000 -50,000 -60,000 -70,000 Labour & Benefits (net contingencies /growth
adjustment) -20,000 -50,000 -50,000 -195,000 Council Remuneration -100,000 -104,000 -108,000 -118,000 Less: 2008 Training Savings 50,000 0 0 0 Gravel Royalties Sales -Contract (minimum)
44,000 44,000 44,000 44,000 Gravel Sales -Annual Permit 122,000 122,000 122,000 122,000 Environmental -ARMS & KEEPS -20,000 -20,000 -20,000 -20,000 Soil Deposit Fees 100,000 100,000
100,000 100,000 Transfer to Gravel Reserve -100,000 -100,000 -100,000 -100,000 Towing Contract Revenue -53,000 -53,000 -53,000 -53,000 Equipment Rates & Fuel Costs -82,000 -90,000 -100,000
-110,000 Community Development, Parks & Recreation (CDPR) South Bonson Amenity Building -21,000 -117,000 -117,000 -117,000 Recreation /Youth -8,000 -28,000 -38,000 -46,000 Building
Mtce. (Fire Hall#1, ACT) -8,000 -8,000 -23,000 -23,000 Corporate & Financial Services (C&FS) Investment Earnings 60,000 60,000 60,000 60,000 Grant in Lieu of Property Taxes (BCBC) 0
20,000 35,000 35,000 Interest Expense -Tax Prepayments -55,000 -55,000 -55,000 -55,000 Traffic Fine Revenue 17,000 17,000 17,000 17,000 Property Rentals & Leases -4,000 2,000 -8,000
3,000 Insurance 61,000 62,000 62,000 62,000
Business Plan 2009 – 2013 Page 17 of 42 Financial Overview Report Figure 13: Reconciliation of 2008-2012 Financial Plan to 2009-2013 Proposed Financial Plan (cont.) General Revenue Fund
(GRF) 2009 2010 2011 2012 Corporate & Financial Services (C&FS) cont. Police -RCMP Contract 0 64,000 -157,000 -158,000 Police -Funded from Police Services Reserve 0 -64,000 157,000
158,000 Adjust Timing of Reserve Transfers -77,000 47,000 37,000 -7,000 Information Services -Salary Recovery -64,000 -68,000 -69,000 -69,000 Information Services -Other 38,000 0 6,000
8,000 Fire Service Improvement Levy 0 0 0 350,000 Fire Department -Costs 0 0 0 -350,000 Public Works & Development (PW&D) Business Licences 50,000 50,000 50,000 50,000 Parking Enforcement
Contract 30,000 30,000 30,000 30,000 Parking Fines 30,000 30,000 30,000 30,000 Salaries -Bylaw Enforcement Officer -45,000 -46,000 -48,000 -50,000 Salaries -RCMP/Bylaws Liaison -27,000
-30,000 -33,000 -35,000 Building Permits 34,000 34,000 34,000 34,000 Planning Fees 53,000 57,000 62,000 67,000 Inflation Allowance 92,000 122,000 124,000 139,000 Growth Allocation Adjustments
-11,000 48,000 99,000 -37,000 Other Adjustments -9,000 -4,000 14,000 10,000 Transfer to Surplus: Prior to Incremental Adjustments 46,000 45,000 45,000 69,000 The preceding table reconciles
the changes to the previously adopted financial plan. It demonstrates that even with projected growth of 2.35% and an annual 4% tax increase, there is little room for additional discretionary
spending and not all areas requiring support can be accommodated.
Business Plan 2009 – 2013 Page 18 of 42 Financial Overview Report 2.8. Incremental Adjustments There were several requests for funds to address emerging issues. More information on each
request can be found in the departmental business plans. Figure 14: Incremental Adjustments General Revenue Fund (GRF) 2009 2010 2011 2012 2013 Transfer to Surplus: Prior to Incremental
Adjustments 45,994 44,765 45,047 44,120 85,621 Recommended Ongoing Incremental Adjustments: Arts Centre -20,000 -25,000 -30,000 -30,000 -30,000 Bicycle Advisory Committee -5,000 -10,000
-10,000 -10,000 -10,000 Recommended One Time Incremental Adjustments: Affordable Housing -75,000 Emergency Program -Supplies -10,000 Zoning Bylaw -Legal -50,000 BIA Façade Improvements
Program -12,000 -12,000 BIA Security (funded from Police Services Reserve) -20,000 Funding from Police Services Reserve 20,000 Funding from 2008 Surplus (One Time Adjustments) 147,000
12,000 Transfer to GRF Surplus 20,994 9,765 5,047 4,120 45,621 Water Revenue Fund 2009 2010 2011 2012 2013 Recommended Ongoing Incremental Adjustments: Water Technologist -100,000 -100,000
-100,000 -100,000 -100,000 Cross Connection Control Program -100,000 -100,000 -100,000 -100,000 -100,000 Funding from Water Revenue Fund 200,000 200,000 200,000 200,000 200,000 Taking
on additional cost should be done with caution in an economy that is slowing. The District of Maple Ridge has excellent business planning practices that will serve us well in the event
of an economic slowdown. These practices include a framework for considering what areas of business we should be in, reconsidering vacant positions prior to rehiring and considering
what each business area would look like if there was substantially less funding. The District also has reserves that could be drawn down if revenues softened. It is important to realize
the impact that this would have on the local economy and that potentially, when jobs are scarcer, the cost of capital projects could come down. While there are considerable downsides
to a slowing economy, it may also represent some opportunities. For instance, there may be a softening in construction costs. As well, senior governments are likely to implement infrastructure
improvement assistance programs to stimulate the economy. This is why it is important for us to have a multi-year financial plan in place as early as possible.
Business Plan 2009 – 2013 Page 19 of 42 Financial Overview Report 3. Water, Sewer and Recycling Rates Water Utility Rates The Water Utility covers costs associated with water purchases,
maintenance, and both regional and local capital infrastructure. The Regional District is planning an increase in water rates for 2009 of approximately 15.8%. The increase in 2010 is
projected to be 5.5% and for 2011 through 2013 an annual increase of 4%. In addition, the Regional District has planned some significant capital expenditures including pump stations
that will benefit Maple Ridge. Maple Ridge pays a portion of the costs with some contributions being as high as 41%. Maple Ridge's portion of the current planned projects is approximately
$9 million. The timing of the billing will likely be near the end of the five year financial plan or perhaps in 2014, depending on when the work is completed. A portion of the cost
is planned on being covered by Development Cost Charges. The current accumulated surplus in the District’s Water Revenue Fund is approximately $3.4 million. Capacity to pay for the
upcoming projects or the associated financing costs associated with debt is established over the five year planning horizon. Accumulated surplus is used to stabilize water fee increases.
Due to the above factors it is recommended that the water rates be increased by 9% per year, which is consistent with last year’s financial plan. Sewer Utility Rates The Sewer Utility
pays for regional capital expenditures through an allocation model that essentially spreads rate increases out over time to utility ratepayers. A sewer rate increase of 5% per year
is required to graduate rate increases over the long-run and is the same increase as last year. Figure 15: Sewer and Water Revenue Fund Projections Water Revenue Fund (9% increase)
$0 M $3 M $6 M $9 M $12 M $15 M 2009 2010 2011 2012 2013 Sewer Revenue Fund (5% increase) $0 M $3 M $6 M $9 M $12 M $15 M 2009 2010 2011 2012 2013 Revenues Expenses Accumulated Surplus
Business Plan 2009 – 2013 Page 20 of 42 Financial Overview Report Recycling Rates The Ridge Meadows Recycling Society (RMRS) is a charitable non-profit organization that provides a range
of recycling services. Many of the same pressures faced by the District, such as increased labour, insurance and vehicle costs, are shared by RMRS. Recycling fee increases of 4.5% are
required for 2009 due to increased fuel costs and labour costs. The projected rate increase is 3.5% for 2010 and 3% per year 2011 through 2013. In recent months, we have experienced
a significant drop in the price of commodities. While some commodity revenues such as those resulting from stewardship programs are fairly secure, other revenues from cardboard, office
paper and plastics, which total about $800,000 annually, could have some exposure. In the event that targeted revenues are not achieved, we could use our Recycling Reserve, which has
a balance of $1.6 million, to provide assistance. This would also allow RMRS time to explore other options. As we do not know when the commodity markets will normalize, we recommend
that enhancements to the recycling program be put on hold for the time being. This has been discussed with RMRS and they are in agreement. 4. Borrowing The financial plan incorporates
debt proceeds into the overall funding strategy. At Council’s direction, the 2008-2012 Financial Plans called for debt to fund a portion of the capital works program. The projects that
were identified to be funded from debt are discussed under DCC Roads and are identified in Figure 16. Development Cost Charges (DCC) Funded Debt DCC Roads The 2007-2011 Financial Plan
called for borrowing in 2007 with the intention of having the Development Cost Charges (DCC’s) cover the interest costs. Through discussions with the Ministry, it was communicated that
interest costs could not be included until the DCC Reserves were depleted. Hence the DCC Reserve was used to fund projects that we had anticipated borrowing funds for. The projects
planned to be funded from debt include a bridge over Kanaka Creek on 240 Street and the municipal portion of the cost to extend Abernethy Way from 232 Street to 256 Street. The principle
payments for these projects are funded through the DCC Reserve over ten year terms. A portion of the interest costs are also funded through the DCC Reserves. This will require approval
from the Inspector of Municipalities and amendment to the DCC Bylaw once the DCC Reserve nears depletion. The timing of the borrowing is dependent on DCC collections and capital expenditures.
Depending on DCC collections, borrowing may significantly impact the ability to fund future DCC projects. DCC Parkland Acquisition Acquiring parkland prior to development may result
in better value for our DCC Reserve. Based on the legislation, and confirmed in conversations with the Ministry, the use of DCC’s to pay for interest payments associated with borrowing
for parks is not permitted. The cost of borrowing, if necessary, will require the interest component to be funded from anther source such as general revenue or the Capital Works Reserve.
Business Plan 2009 – 2013 Page 21 of 42 Financial Overview Report Previously Approved Borrowing Projects that the District of Maple Ridge is now authorized to borrow for include: the
construction of FireHall#4, the acquisition of three joint school and park sites, the purchase of property to expand the Cemetery, drainage work on River Road and an animal shelter.
The authority to externally borrow expires in 2013. The cash flow to service this debt is already been provided for in the financial plan. Firehall #4 Construction The construction
of Firehall #4 is projected to cost $6 million and completion is anticipated in 2010. The debt servicing costs will be funded through the Fire Department Capital Acquisition Reserve.
This reserve has the capacity to make the debt payments. The remaining cash balance in the reserve is sufficient to address other capital requirements. This reserve is discussed in
more detail beginning on page 30. Park Acquisition Land values tend to rise as an area becomes more developed. Therefore, acquiring parkland prior to development may result in better
value. Further, there are synergies in having parkland and school sites in close proximity. It is therefore deemed worthwhile to explore the possibility of purchasing larger sections
for parkland and entering into an agreement to sell a portion to house new schools. There are three sites that have been identified as ideal for such an arrangement. Included in the
financial plan is borrowing that will enable the District to purchase a larger property and offset the increased cost using contributions from the School District to fund the debt payments
over a five year term. Borrowing for the municipal portion is not needed as it is funded through the DCC Reserves. Cemetery Expansion Debt payments associated with $1.5 million in land
purchases for cemetery expansion are funded through increased cemetery fees, which were recently approved. In light of the cost of recent acquisitions, the adequacy of this envelope
will have to be addressed in the coming year. Non-DCC Drainage Work Major drainage work on River Road requiring $2.65 million has been difficult to fund. The primary funding source
for these projects is general revenue, and the annual capacity to fund all capital works, including drainage, roads, park development, recreation equipment, government services buildings,
equipment and technology is just over $2 million. These drainage projects would exhaust the annual general revenue program. Utilizing debt would allow the projects to proceed while
leaving the general revenue portion of the capital program intact. The annual payments have been funded through the Capital Works Reserve. The Capital Works Reserve is discussed in
more detail in the “Reserves” section of the report, which starts on page 26. Animal Shelter The construction of a new and expanded animal shelter was included in the 2007 budget, at
a total cost of $1.5 million. Community fund raising is projected to contribute $300,000. The District will contribute $300,000 of its own funds, and the balance will be financed through
long-term (25 year) debt. In addition to these various funding sources, the debt payments are funded through a $10 increase in dog license fees. Council has entered into a Letter of
Intent for the construction of the shelter with the SPCA and we expect construction to begin in early 2009.
Business Plan 2009 – 2013 Page 22 of 42 Financial Overview Report Borrowing Considerations 2009-2013 The following table summarizes additional debt contemplated in the 2009-2013 Financial
Plan. Figure 16: Capital Projects proposed for debt financing Project Year Borrow Term Main Fund Annual Payments Issue Costs Total Interest Funded by Other Sources Total Cost 240 St
@Kanaka Creek (Bridge) 2009 8,025,600 10 DCC 1,069,740 60,192 2,671,798 81,057 10,838,647 Abernethy Way Phase 3 2009 2,750,000 10 DCC 366,550 20,625 915,501 2,777,500 6,463,626 Abernethy
Way Phase 4 2011 5,250,000 10 DCC 699,777 39,375 1,747,775 9,302,500 16,339,650 16,025,600 2,136,067 120,192 5,335,074 12,161,057 33,641,923 Borrowing Capacity Under Community Charter
legislation2, the maximum amount of borrowing the District can undertake is such that the annual cost to service the debt does not exceed 25% of revenues as defined in the legislation.
As noted in our 2007 Annual Report the available debt servicing capacity is nearly $13 million which, even if all the planned debt is taken on with the proposed terms, still leaves
several million in debt servicing capacity. The capacity figure is a moving target. Each year our revenue is likely to experience growth, increasing our borrowing capacity. As we retire
debt, this frees up additional room. Entering into new debt reduces the capacity. The Regional District has $35.8 million worth of capital expenditures planned for 2007-2013 for which
the District will be required to contribute $9 million, some of which will likely be borrowed on behalf of the Water Utility. Projections indicate that we have the capacity to borrow
for our own capital works program, as well as the Regional District’s program. As municipal revenue grows and debt is retired, additional capacity will be available. Ministry and Elector
Approval Borrowing by local governments cannot be undertaken without the approval of the Inspector of Municipalities. In addition, borrowing requires an elector approval process in
a majority of cases. • Short-term (five-year) borrowing can be exempt from elector approval3,4 but the amount proposed in the capital program exceeds the maximum amount. • An “approval-free
liability zone” exists to allow borrowing without elector approval as long as current and proposed servicing costs do not exceed 5% of the municipal revenue defined in the legislation.
The District’s costs exceed this figure, and therefore this provision would also not exempt the District from obtaining elector approval. Elector approval can be sought in one of two
ways. One option is to receive the approval of electors by holding a referendum. The second and less-expensive method is to hold an “alternative approval process.” If more than 10%
of the electors express an opinion that a referendum should be held, by signing an Elector Response Form within 30 days of a second advertising notice, then Council would 2 B.C. Reg.
254/2004, Municipal Liabilities Regulation, Community Charter. 3 Community Charter, Division 3, section 178. Short Term Capital Borrowing. 4 B.C. Reg. 368/2003, Municipal Liabilities
Regulation, Community Charter.
Business Plan 2009 – 2013 Page 23 of 42 Financial Overview Report need to consider whether to proceed with the planned borrowing and, if so, a referendum must be held. This latter option
was used for the borrowing related to the town centre project. Outstanding Issues In order to utilize DCC funds for debt payments, additional approval from the Inspector of Municipalities
is required. Legislation on using DCC’s for interest payments is very stringent, primarily allowing the practice only where the construction of specific infrastructure projects in advance
of sufficient DCC's collections is required in order to trigger investment in development. If these projects do not receive approval, capacity to fund the interest from an alternate
source would need to be identified. Internal vs. External Borrowing The need for borrowed funds in the proposed financial plan assumes that all prior approved capital works have been
carried out and funded. However, a large component of the capital program remains incomplete creating an availability of funds. This may allow us to delay external borrowing. The 2009-2013
Financial Plan will include the previously approved debt once the 2008 capital is carried forward in the next Financial Plan amendment. It is recommended that we use our own funds for
borrowing if possible. The exception would be borrowing for the acquisition of school sites, which debt servicing costs are to be covered by the School District. Debt servicing costs
from a third party would be easier to verify and are independently calculated. 5. Further Items Revenues (not listed in any particular order) In all likelihood, the District will realize
unique revenues or proceeds from several areas within the term of this financial plan. The risk in budgeting for ongoing cost commitments from these revenue sources is considerable.
It would be prudent to consider the allocation of these revenues in a policy framework, respecting the District’s Financial Sustainability Policies. a) Silver Valley Lands -District
policy for the sale of municipal lands is to transfer 75% to the Capital Works Reserve and 25% to the Land Reserve. The District may want to dedicate a larger percentage into the Land
Reserve. District resources in Silver Valley are a significant community asset and considerable care must be taken to ensure the community gets maximum value out of this one-time resource.
b) The District owns significant gravel resources. A gravel agreement has been reached and the budget has been increased based on minimum guaranteed revenues. There is potential for
some additional revenues over the life of this financial plan if the operator is able to remove the maximum allowable under the contract. The use of such revenues should be considered
in a policy framework, recognizing that resource extraction related revenues are nonrenewable. c) BC Lottery Corporation may establish a gaming centre in Maple Ridge, and the District
would receive a portion of the revenue. These types of revenues can be volatile and this needs to be recognized in the policy discussion so that we do not entrench costs that cannot
be adjusted if the revenues do not materialize.
Business Plan 2009 – 2013 Page 24 of 42 Financial Overview Report d) Growth in taxation revenue beyond the rate contemplated in the financial plan is a potential future source of unallocated
revenue. As these and other revenue sources materialize, additional needs can be addressed. Expenditures (not listed in any particular order) The items listed below have been difficult
to fund using existing revenues. The sources of funds noted above provide an opportunity to set policy and make investment decisions on how to best use the funds. When investing one-time
funds, one must be cognizant of any ongoing operating costs or implications. a) Infrastructure Rehabilitation and Replacement is an area that remains underfunded. The Financial Sustainability
Plan, Policy 5.52 calls for a maintenance/replacement program to be fully funded by 2015. Even with the 1% annual tax increase that began in 2008, this target will not be met. As new
revenues materialize, we should consider directing some of that money to this program. We will continue to take advantage of every opportunity to secure funding from senior levels of
government. b) The proposed financial plan includes an aggressive capital program with significant capital and operating cost implications. The program relies upon significant funding
sources that are outside the control of the municipality. As well, once the assets are acquired, it will be important to establish a proper maintenance and replacement program. c) “Green”
Initiatives -a Sustainability Action Plan was developed and endorsed by Council, and staff is currently working on a strategic energy plan in support of Council’s commitment to carbon
neutrality. Both documents identify opportunities for the District to operate in a more sustainable manner and these opportunities generally require an outlay of capital. Establishing
a reserve to fund sustainable initiatives was identified in the action plan but it lacks an identifiable revenue stream. Grant funding continues to be aggressively pursued for identified
projects and we could also consider increasing our own contribution. d) Carbon Neutrality -The District has signed BC’s Climate Action Charter, making a voluntary, non-binding commitment
to becoming carbon neutral with respect to corporate operations by 2012. We are working toward reducing corporate greenhouse gas (GHG) emissions, but in the forthcoming years will never
reduce them to zero as our core services require the operations of vehicles and facilities. Therefore, in order to become carbon neutral, the District will have to purchase carbon offsets
at some point. Purchasing offsets is not recommended at this time as it would result in taxpayer money flowing to outside organizations and would be an annual requirement. Keeping the
funds here and investing in projects that will reduce the corporate carbon footprint will result in permanent cost savings. Therefore, the recommended approach is to reduce our GHG
emissions as much as possible and only purchase offsets for the remaining emissions which we cannot offset through reductions. It would be prudent to begin budgeting for the expected
remaining emissions in future years if continued commitment toward carbon neutrality is supported. e) Other issues that are not addressed within the plan include the following: • Albion
Sports Complex Expansion and Development, $20 million • Museum, $10 million • Additional Community Centre(s) • Fraser Riverfront Land Acquisition, $4 million
Business Plan 2009 – 2013 Page 25 of 42 Financial Overview Report • CP Rail Overpass at Albion, $15 million • Albion Park Master Plan Implementation, $1 million • Downtown Improvements
beyond what is currently included (funds ear-marked from future years operating surpluses, if they materialize) • Extending the Fibre Optic Network 6. Impact to the “Average Home” The
assessed value of the “average home” for the 2008 taxation year was approximately $406,000. The calculation includes all residential properties comprising both single family homes and
multifamily units such as townhouses and apartments. The following table demonstrates the impact to a taxpayer, who for the 2008 tax year, was in a home assessed at $406,000 with the
following services: • flat rate water utility fee • flat rate sewer fee • single-home curbside recycling pickup The changes include a 4% general purpose tax increase, comprising 3%
for general purposes and 1% for infrastructure sustainability. The overall increase is 5.75%. Figure 17: "Average Home" Tax Increase 2008 2009 Increase % General Purpose 1,295.83 $
1,347.66 $ 51.83 $ 4.00% Recycling 56.95 59.51 2.56 Water 319.40 348.15 28.75 Sewer 250.85 263.39 12.54 Fire Service Improvement Levy 77.42 96.72 19.30 Municipal, Recycling, Utilities,
Fire 2,000.45 2,115.43 114.98 5.75% Other charges appearing on the tax bill for school, regional and other non-municipal services are not known at this time. 7. Property Taxation Policy
After many years of shifting a small percentage of taxation from the Light Industry Class properties to residential, the Light Industry Class came into alignment with the Business Class
in 2007, as intended. The Audit and Finance Committee recently reviewed the tax rate for Major Industrial Class properties and directed staff to recommend adjustments in the 2009-2013
Business Planning cycle.
Business Plan 2009 – 2013 Page 26 of 42 Financial Overview Report The Hammond Mill is the only property in the Major Industry Class. The mill is looking at investing in improvements
and reducing the tax rate would be supportive of this development. It is recommended that we reduce 5% of the tax burden for 2009 and review this again next year with the intent of
a further 5% adjustment. The dollar impact of this will about $35,000. It is anticipated that this can be accommodated within the Property Tax Revenue account as there is a contingency
for supplementary tax adjustments that should be less with the Province freezing assessment increases. It is important that we review all of our tax rates to make sure that they are
properly positioned. A review of our Business Class rates was done earlier this year and our rates were found to be reasonable. While we regularly adjust our tax rates for market value
fluctuations, not all jurisdictions do this. In particular, the Provincial Government did not do this for some of their tax rates. Having said this, last month, the Province announced
a rebate to assist Light and Major Industry properties over the next three years. This is a positive development, the effects of which we will monitor closely. The Province has also
announced that the 2008 assessments for some property classes, including Residential, will be the lower of 2008 or 2007 assessed values. This has no impact to municipal property tax
revenues as we adjust the class tax rates to cancel out market price changes. The Province also expanded the tax deferment program for the next two years removing the age requirement.
This may impact staff time in administering the program and could impact the amount of tax penalties. 8. Reserves The District has substantial financial resources held in reserves.
These balances provide the base for the financial plan projected transactions for the coming years, as amounts are transferred in and out for various purposes. They also serve to stabilize
taxes, fees and charges by providing funds during tight years and receiving those funds back during better years, thus shielding our customers and taxpayers from sharp rate increases.
Business Plan 2009 – 2013 Page 27 of 42 Financial Overview Report Figure 18: Reserve Balances Dec.31, 2007 Accumulated Surplus General Revenue 2,673,416 General Revenue: Sewer Revenue
3,737,315 Carryforwards -Capital 4,152,968 Water Revenue 3,452,433 Carryforwards -Operating 3,701,663 Total Accumulated Surplus 9,863,164 Self Insurance 922,602 Protective Services
1,858,021 Reserve Fund Balances Core Development 970,325 Local Improvement 1,973,590 Recycling 1,618,549 Equipment Replacement 8,049,670 Community Development 1,134 Capital Works 9,055,490
Building Inspections 968,034 Fire Department Capital 7,140,170 Gravel Extraction 496,450 Sanitary Sewer 1,390,549 Neighbourhood Improvements 56,571 Land 268,712 Snow Removal 350,000
Unapplied Debt Funding 393,749 Facilities Maintenance 89,519 Net Reserve Funds 28,271,930 Youth Centre 8,535 Cemetery Maintenance 103,224 Restricted Revenue Balances Infrastructure
Sustainability 200,000 Development Cost Charges 36,704,662 Critical Building Infrastructure 501,023 Parkland (ESA) Acquisition 0 General Revenue Reserve Accounts 15,998,618 Other Restricted
Revenues 4,161,053 Total Restricted Revenues 40,865,715 Sewer Reserve Accounts 1,397,724 Water Reserve Accounts 974,362 Total Reserve Accounts 18,370,704 Reserve Accounts Total Reserves:
Accumulated Surplus, Reserve Funds and Reserve Accounts – $56.5 million Restricted Revenues are not considered reserves; rather they are liabilities, as they have been collected in
advance of specific expenditures. These are financial reserves only. Other assets (Silver Valley lands, gravel resources) are not shown, nor are they represented in our financial statements.
Business Plan 2009 – 2013 Page 28 of 42 Financial Overview Report 8.1. Capital Works Reserve Following is a brief synopsis of the Capital Works Reserve, which provides for future capital
expenditures. Each year 1% of general taxation is credited to this account along with a portion of the proceeds from land sales and other fixed amounts. A forecast is provided that
gathers together all the “deposits” to the reserve, and both operating and capital “withdrawals,” providing forecasted reserve balances. Generally, this reserve builds funds for large
projects and is then drawn down. We are in this “drawing down” phase now, as is evident from the forecasted balances in the following figures. The projections are conservative and assume
no other inflows, such as land sales, beyond those noted. Council policy is to ensure a minimum reserve balance of 10% of the prior year’s property taxes to address unforeseen or uninsurable
events. Figure 19: Capital Works Reserve Projection 2009 2010 2011 2012 2013 Opening Balance 6,733,073 6,104,205 4,828,792 5,682,361 5,364,341 Inflows: Interest & Capital Gains 190,653
163,381 141,315 171,947 173,763 Garbage Tipping Fees 50,000 50,000 50,000 50,000 50,000 Taxation and General Revenue Transfers 631,235 659,893 690,398 722,869 768,771 Sale of Land 1,200,000
Repayment of Energy Retrofit 65,000 65,000 65,000 65,000 Balance of General Rev. Funding for GCF 55,927 61,053 (32,677) (2,050) 244,107 Outflows: Planned Capital Expenditures (1,273,115)
(1,367,682) (127,473) (93,415) (35,626) Debt -Interest (DCC projects) (148,125) (274,688) (500,625) (600,000) (600,000) Debt (River Rd. Drainage $2,675,000)* (135,443) (632,370) (632,370)
(632,370) (632,370) Estimated Ending Balance 6,104,205 4,828,792 5,682,361 5,364,341 5,397,987 Minimum Reserve (10% Prior Year Taxes) (4,361,939) (4,643,022) (4,942,218) (5,260,695)
(5,599,694) Unencumbered Balance 1,742,266 185,770 740,142 103,647 (201,707) Figure 20: Capital Works Reserve Projection Chart Reserved Unencumbered $0M $2M $4M $6M $8M2008 2009 2010
2011 2012 2013
Business Plan 2009 – 2013 Page 29 of 42 Financial Overview Report 8.2. Infrastructure Sustainability Reserve Beginning in 2008, Council directed 1% of the annual tax increase to go towards
infrastructure sustainability. This helps with major rehabilitation and replacement of the District’s assets which currently have a replacement value estimated in excess of $1.3 billion.
The table below illustrates the inflows generated from general taxation and how it has been allocated. Inflows from the Core Reserve are allocated to maintaining those facilities related
to the project. If we look only at the roads component of our infrastructure, it is suggested that we spend $2 million annually to keep up our existing inventory. The historic annual
amount spent on repaving our road is only a small fraction of this amount and as a result, our roads are deteriorating. This deferred maintenance translates into a larger future expenditure
to resurface or perhaps even reconstruct roads. Figure 21: Infrastructure Sustainability Allocation of Funding 2008 2009 2010 2011 2012 2013 Inflows: 1% General Tax Increase 419,417
865,861 1,341,074 1,846,910 2,385,342 2,958,471 Core Reserve Surplus 200,000 450,000 450,000 450,000 450,000 450,000 Allocation: Transportation/Traffic Management 419,417 461,828 825,000
905,000 1,255,000 1,556,500 Town Centre Facilities 200,000 450,000 450,000 450,000 450,000 450,000 Facilities & Parks -Major Mtce 200,000 220,000 615,000 715,000 886,750 Drainage 100,000
160,000 178,000 250,000 310,000 Fire Department 70,000 100,000 110,000 121,000 150,000 Major Equipment/Systems 34,033 36,074 38,910 44,342 55,221 Depending on the scope of projects
required, one year’s allocation may not meet the funding requirements. In these cases, funding may be held over until enough has accumulated to allow the works to proceed, or borrowing
may be considered. Figure 22 highlights the impact that the 1% tax increase has on the Infrastructure Deficit. Figure 22: Infrastructure Deficit Chart Infrastructure Deficit with 1%
Tax $ M $10 M $20 M $30 M $40 M $50 M $60 M $70 M2006 2011 2016 2021 2026 2031 Annual Amount Infrastructure Deficit Additional Renewal Funds -1% of Taxation Renewal Spending
Business Plan 2009 – 2013 Page 30 of 42 Financial Overview Report 8.3. Critical Building Infrastructure Reserve In May 2006, Council directed $600,000 of the 2005 general revenue surplus
towards a Critical Building Infrastructure Reserve to fund emergency or irregular items associated with facility maintenance. The primary concern was to ensure funds were available
to replace two aging boilers at the Leisure Centre, for which $400,000 has been earmarked. $150,000 went to replace aged fitness equipment, and $50,000 remains. There are no ongoing
funding sources for this reserve. 8.4. Fire Department Capital Acquisition Reserve Implementation of the Fire Master Plan and escalating cost projections have placed significant pressures
on this reserve. This reserve receives 2% of general taxation annually for the expansion of facilities and equipment inventory. The 2008 funding allocation was not adequate. Additional
funds were allocated from general revenue growth amounts and the operating savings that resulted from the delay in Firehall #4 construction. Figure 23: Fire Department Capital Acquisition
Reserve Projection 2008 2009 2010 2011 2012 2013 Opening Balance 8,274,068 2,875,685 851,053 95,400 490,188 54,887 Inflows: Interest & Capital Gains 176,203 85,783 17,627 2,862 7,581
1,647 Transfer from GRF as per Budget 1,003,014 874,585 950,427 1,011,672 1,076,864 1,146,257 Growth Funding 25,000 80,000 130,000 180,000 230,000 280,000 Outflows: LTC Capital Program
(9,602,600) (65,000) (1,053,960) -(950,000) Delay spending 2008 program 3,000,000 (3,000,000) Firehall#4 debt repayment -(799,746) (799,746) (799,746) (799,746) Estimated Ending Balance
2,875,685 851,053 95,400 490,188 54,887 683,045 The Planned Capital Expenditures outlined in Figure 23 are detailed in the following table. Figure 24: Fire Department Capital funded
by Fire Department Capital Acquisition Reserve Project 2009 2010 2011 2012 2013 Public Education Vehicle 15,000 Firehall #4 Technical & Furnishings 200,000 Firehall #4 Protective &
Safety Equip 83,960 Equipment Purchase -Firehall #4 70,000 Firehall #3 Expansion 50,000 700,000 Firehall #4 Rescue 4 325,000 Firehall #4 Engine New 625,000 65,000 1,053,960 -950,000
-
Business Plan 2009 – 2013 Page 31 of 42 Financial Overview Report 8.5. Fire Department Equipment Replacement Reserve The recognition of an appropriate level of funding to provide for
growth would not be complete without a discussion around how we intend to replace those assets. Replacement of fire equipment is funded through this reserve. Beginning in 2009 some
infrastructure sustainability funds will be allocated to this reserve. Figure 25: Fire Department Equipment Replacement Reserve Projection 2009 2010 2011 2012 2013 Opening Balance 1,766,196
2,068,399 2,096,954 2,203,989 2,019,743 Inflows: Interest & Capital Gains 54,336 68,427 68,534 76,695 60,592 General Revenue 267,867 285,128 303,502 323,059 343,877 Sustainability Funding
70,000 100,000 110,000 121,000 150,000 Outflows: Planned Capital Expenditures (90,000) (425,000) (375,000) (705,000) -Estimated Ending Balance 2,068,399 2,096,954 2,203,989 2,019,743
2,574,212 9. Town Centre Commercial Operation This section isolates the effect the Town Centre Project has on District finances. The table below isolates the commercial operations.
The table shows commercial earnings, so principle payments are not included nor is the funding received though taxation. The earnings noted below will contribute to principle payments
and transfers to the Infrastructure Sustainability Reserve. Figure 26: Commercial Operation 2009 2010 2011 2012 2013 Lease Revenues (net of allowances) 1,052,846 1,073,490 1,094,134
1,114,778 1,141,323 Parking Revenues 141,718 141,742 141,766 141,790 141,814 Recoveries and Other Revenue 275,218 275,218 275,218 275,218 275,218 Operating Expenses -397,747 -397,747
-397,747 -397,747 -397,747 Interest -Commercial Space -763,708 -739,826 -714,989 -689,158 -662,294 Closing Balance 308,327 352,877 398,382 444,881 498,314 In summary, the Town Centre
Project cash flows have been managed within the parameters established by Council.
Business Plan 2009 – 2013 Page 32 of 42 Financial Overview Report 10. Conclusions The District can expect $4.3 million in new general revenue in 2009, primarily from growth in the tax
base and a 4% tax increase. $1.7 million goes to protective services issues (mainly RCMP and Fire Master Plan Implementation). The labour category requires $1.4M or 33% of the new revenue
to meet both inflationary and growth issues. Infrastructure sustainability issues receive $0.4 million of the new revenue. The balance is required to deal with inflationary and growth
pressures. This leaves minimal room for enhancements. Despite the current funding capacity limitations, our financial reserves approach $56.5 million, and another $41 million sits in
restricted revenues. Other non-financial assets, such as Silver Valley lands and gravel resources, strengthen our long-term position. A significant portion of these reserves and restricted
revenues are committed to funding the current capital program. Where there are new revenues or proceeds, an opportunity exists to set some policy around where this funding is applied.
This may include needs and strategic initiatives that Council has identified that continue to be difficult to fund, such as green initiatives, the replacement of our existing aging
infrastructure and new large capital investments noted earlier. The 2009 capital program builds on a very aggressive 2008 capital works program, with an addition of over $134 million
in projects scheduled for 2009 through 2013. A DCC program for 2009 through 2013 worth $42 million concentrates on transportation and park acquisitions, and utilizes debt financing
to advance the schedule. The DCC program utilizes debt and includes a portion of the interest payments to be funded through the DCC Reserves. Doing this will require an amendment to
the DCC bylaw and the approval of the Inspector of Municipalities. This plan builds on the nearly $21 million of debt that was approved in 2008. The Debt financing included in 2009
through 2013 is all associated with DCC projects. With the economy slowing and uncertainty ahead, caution should be exercised when considering debt. The debt servicing costs were to
be largely funded through Development Cost Charges. These collections have slowed significantly in 2008 and as such we will be monitoring this closely before additional borrowing is
considered. Beginning in 2008 funding is being directed toward infrastructure sustainability to help address a funding “deficit” that exists for most Canadian municipalities. The District
is following the Federation of Canadian Municipalities recommendations by putting a long-term plan in place to address the situation, with a targeted tax increase as part of the strategy.
As governments often do in economic slowdowns, the Province intends to accelerate its investment in public infrastructure to stimulate the economy and job market. It will be important
for the District to ensure that where it makes sense we take advantage of any infrastructure grants. Often a condition of the grants is to participate or match funding. We should keep
this in mind when considering how to best allocate any new revenues, as we may be able to leverage our funding. At the same time, careful consideration of the costs to maintain and
replace new assets is warranted.
Business Plan 2009 – 2013 Page 33 of 42 Financial Overview Report The District’s business planning practices, financial prudence and relatively healthy reserve funds have and will continue
to serve the community well in times of economic slowdown as well as boom. _______________________________________________ Prepared by: Trevor Thompson, BBA, CGA Manager of Financial
Planning _______________________________________________ Approved by: Paul Gill, BBA, CGA General Manager, Corporate & Financial Services _______________________________________________
Concurrence: J.L. (Jim) Rule Chief Administrative Officer
Appendix A: Infrastructure Sustainability Business Plan 2009 – 2013 Page 34 of 42 Financial Overview Report 11. Infrastructure Sustainability The District has an investment in assets
including infrastructure with an estimated replacement cost of $1.3 billion. These assets are all aging at different rates, and will eventually have to be replaced. In order to properly
fund rehabilitation and replacement, we estimate that we should be spending in excess of $40 million annually. Our actual expenditures are about $7 million, which means that annually,
we are spending $33 million less than we should be. If this gap is not addressed, it will continue to accumulate, creating a liability for future taxpayers. In addition, we continue
to add assets as the community grows and this is compounding the asset replacement problem. Most Canadian municipalities are facing the same issue, but because we have relatively newer
infrastructure, we have an opportunity to get ahead of the curve. The Federation of Canadian Municipalities (FCM) strongly encourages local governments to take action and demonstrate
their ability to address the issue. They have provided a series of recommendations, a critical one being that “municipal governments must evaluate how they plan for growth, price their
services and generate revenues. A long-term plan, with targets and milestones, must be put in place to help phase in these changes over the next 20 years.”5 We can start to address
this problem by contributing 1% of taxation each year toward meeting the sustainability objective. This could start in 2008 when taxation is no longer required for the town centre project.
The models below illustrate the funding gap. Chart 1 illustrates the gap under the current funding pattern. The bottom area indicates our current infrastructure renewal spending pattern,
and the top area represents the shortfall or deficit in spending. Chart 2 shows the impact of an annual 1% tax contribution. If we continue on this path for 12 years, we will be able
to nearly double the contribution to rehabilitation and replacement; in 25 years, the contribution has tripled and the deficit is cut in half. In addition to directing District funds
to deal with the deficit, plans for maintenance programs and construction projects continually look for ways to extend lifecycles and minimize maintenance requirements. While a gap
will still remain, we will be well on the road to addressing a problem that today seems insurmountable. Chart 1 Chart 2 Infrastructure Deficit $ M $10 M $20 M $30 M $40 M $50 M $60
M $70 M2006 2011 2016 2021 2026 2031 Annual Amount Infrastructure Deficit Renewal Spending Infrastructure Deficit with 1% Tax $ M $10 M $20 M $30 M $40 M $50 M $60 M $70 M2006 2011
2016 2021 2026 2031 Annual Amount Infrastructure Deficit Additional Renewal Funds -1% of Taxation Renewal Spending 5 “Building Prosperity fro the Ground Up: Restoring Municipal Fiscal
Balance”; Federation of Canadian Municipalities, June 2006.
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 35 of 42 Financial Overview Report 12. Capital Works Program Project Listing Drainage 2009 2010 2011
2012 2013 Funding 224 St (119 -DTR, Spirit Square) 280,000 ----GCF 240 St @DTR -Extend scope -350,000 ---GCF 248 St (108 -220M N 108) ---64,241 -CWR, DCC, GCF 287 St -storm main @Watkins
(Project) --250,000 --CFO, GCF 287 St -storm main @Watkins (Study) -75,000 ---GCF Brown Ave (227 -228) ---416,556 -CWR, DCC, GCF Culvert Replacement Program 200,000 -200,000 --GCF,
ISR Culvert Replacement Program ----200,000 ISR Ditch Enclosures 18,390 18,881 19,411 19,860 20,332 GRF Donovan Ave (216 -80M E Hall) 66,000 ----GCF Downtown Improv. -Lougheed (223-224)
300,000 ----GRA, SUR Drainage Upgrade Program --200,000 200,000 200,000 GCF, ISR Drainage Upgrade Program -100,000 ---ISR Fraser Escarpment North Phase 1 --5,000,000 --CFO Fraser Escarpment
North Phase 2 ---5,000,000 -CFO Local Improvement Projects -Drain 250,000 250,000 250,000 250,000 250,000 CFO N Alouette River Detention Pond 232/132 ---196,469 -CWR, DCC, GCF Selkirk
Ave (226 -227) --151,833 --CWR, DCC Selkirk Ave (226 -227) Phase 2 ---72,000 -CWR Storm Sewer Connections 19,968 20,558 21,193 21,732 22,298 GRF Video & spot repairs storm sewer 65,000
-65,000 --GCF Video Inspection -Drainage ----40,000 GCF Drainage 1,199,358 814,439 6,157,437 6,240,858 732,630 Government Services 2009 2010 2011 2012 2013 Funding ADV -Non Enterprise
9,000 ----GCF Downtown Beautification -Spirit Square 235,000 ----SUR Downtown Improvement Projects Design 200,000 ----SUR Economic Dev -Office Renovations 35,000 ----RCP Library signage
27,000 ----CORE New Parking Ticket Machines 125,000 ----CORE Reception -Slat Wall 3,000 ----GCF Recycling -Apartment Collection Equip ---55,000 -REC Recycling -Bluebox Collection --65,000
--REC Recycling -Building Expansion -30,000 ---REC Recycling -Collection Bluebox/bag ---40,000 -REC Recycling -Collection Equipment 85,000 150,000 -30,000 -REC Recycling -Collection
Truck Upgrade ---200,000 -REC Recycling -Hydraulic Collection Truck (Apt) ----250,000 REC Recycling -Leasehold Improvement -30,000 100,000 --REC Recycling -New Bluebox & Bags --65,000
--REC Recycling -Process Equipment 50,000 50,000 60,000 --REC Recycling -Process Improvement 15,000 ----REC Recycling -Replace apartment totes 40,000 ----REC Vehicle for Licenses, Permits
& Bylaws Department 40,000 ----GCF Works Yard: Electrical Service Upgrade --90,000 --GCF Works Yard: Office Space Conversion ---200,000 -GCF Works Yard: Rear Yard Access Gate Motorized
-18,500 ---GCF Government Services 864,000 278,500 380,000 525,000 250,000
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 36 of 42 Financial Overview Report Highways 2009 2010 2011 2012 2013 Funding 112 Ave (232 -240) Final
Lift -242,434 ---CWR, DCC, GCF 112 Ave (60M W 236 -236) ----25,079 CFO 121 Ave @214 St ---9,347 -CFO 128 Ave (228 -200M East 232) ----132,000 GCF 128 Ave highway widening predesign
-50,000 ---GCF, GRA 132 Ave (203 -Neaves) Resurface 442,800 ----CFO, CWR 201A St (113B -100M North 113B) ---3,159 -CFO 203 St -113B Railway safety improvements 50,000 ----GCF 203 St
(123 -Powell) -1,360,824 ---CWR, DCC 203 St (Dewdney Trunk -123) -2,793,159 ---CWR, DCC 203 St @Lougheed inters. upgrade 200,000 ----CWR 216 St @121 Intersection Upgrade 75,000 ----GCF
223 St (Mcintosh -Dewdney Trunk) ---27,720 -CFO 224 St (Lougheed -Dewdney Trunk) -80,000 ---GCF 224 St @132 Ave (N Alouette Bridge) ---450,000 -GCF 227 St @Bypass (Traffic Signal) -241,342
---CWR, DCC, GRA 232 St (116 -Slager) -2,031,786 ---CWR, DCC, GCF 232 St (S Alouette -Abernethy) Phase 1 1,000,000 ----CWR, DCC, GCF, GRA 240 St (Kanaka Creek Bridge S -McClure) --3,022,725
--CWR, DCC, GCF 240 St @Kanaka Creek (Bridge) 8,106,657 ----CWR, DBT 241 St @S Alouette Ped Crossing ----75,000 GCF, WCF 241A St (100M S 102 -102) ---100,000 -CFO 244 St (50M S 104
-104) ---49,970 -CFO 245 St (104 -220M N 104) ---26,148 -CFO 280 St (Lougheed -98) ---250,000 -GCF, GRA Abernethy Way (210 -500M E Blackstock) 3,297,101 ----CWR, DCC, GRA Abernethy
Way Phase 3 -5,527,500 ---CWR, DBT, GRA Abernethy Way Phase 4 --14,552,500 --CWR, DBT, GRA Access Culverts 25,546 26,234 26,975 27,604 28,264 GRF Audible signals 10,000 10,000 10,000
10,000 10,000 GCF Bikeway Program 100,000 100,000 100,000 100,000 100,000 GCF, GRA Boulevard Improvement Program ---30,000 -GCF Bridge Repairs /Struct Upgrade 100,000 150,000 150,000
161,875 160,000 ISR Brown Ave (227 -Fletcher) 250,000 ----GCF Brown Ave @224 St (Traffic Signal) ----260,910 CWR, DCC, GCF Cottonwood Dr (118 -119) Phase 4 666,666 ----CWR, DCC Dewdney
Trunk Rd (250 -256) Resurface -175,000 ---SOIL Dewdney Trunk Rd @Kanaka Creek (Bridge) Phase 1 ---350,000 -GCF Dewdney Trunk Rd @Kanaka Creek (Bridge) Phase 2 ----350,000 GCF Dewdney
Trunk Rd @Lougheed ----154,382 CFO Downtown Improv. -224 (Spirit Sq to DTR) --900,000 --GRA, SUR Downtown Improv. -Lougheed (222-223) ----900,000 GRA, SUR Downtown Improv. -Lougheed
(223-224) 900,000 ----GRA, SUR Downtown Street Furniture Upgrade 50,000 ----GCF Dunn Ave @Maple Meadows Way ----278,751 CFO Emergency traffic pre-empt 50,000 50,000 50,000 50,000 50,000
GCF Equipment Purchase -Bobcat (Snow) ----68,340 GCF Equipment Purchase -Pickup Truck --37,000 --GCF Equipment Purchase -Sander for TA Dump Truck 20,000 ----ERR-PW Equipment Replacement
-Fleet 880,500 1,391,452 860,692 284,079 864,684 ERR-PW Fern Crescent (236 -240) ----98,780 GCF, GRA Illuminated Crosswalk Signs -76,000 ---GCF Illuminated Street Signs Program 10,000
10,000 10,000 10,000 10,000 GCF Lane E 207 St (Camwood -100M N Camwood) ---4,578 -CFO Local Improvement Projects -Road 250,000 250,000 250,000 250,000 250,000 CFO Lougheed Hwy Downtown
(223-224) 500,000 ----GRA Macfarlane Ave (Graves -209) ---23,100 -CFO Owens St (200M N Camwood -Lougheed) ---14,020 -CFO Ped safety/access improv 50,000 86,000 90,000 90,000 90,000
GCF Princess St (Wharf -Lorne) ----129,000 GCF Private Driveway Crossings 35,924 36,204 36,506 36,760 37,027 GRF Road Resurfacing -132 Ave (216 -224) ---200,000 -ISR Road Resurfacing
-223 St (Dewdney Trunk -Brown) ---48,650 -ISR
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 37 of 42 Financial Overview Report Highways (cont.) 2009 2010 2011 2012 2013 Funding Road Resurfacing
-224 St (132 -136) ---180,000 -ISR Road Resurfacing -232 St (112 -114) ---155,000 -ISR Road Resurfacing -232 St (Silver Valley -141) ---218,122 -ISR Road Resurfacing -Dewdney Trunk
Rd (250 -256) -175,000 ---ISR Road Resurfacing Program 230,914 286,343 565,152 60,353 1,125,000 ISR Royal Cres @100M S Lougheed ----24,501 CFO Safer School Travel Program 35,000 40,000
50,000 50,000 50,000 GCF Sidewalk Replacement 65,000 98,823 69,091 100,000 85,000 ISR Streetlight Pole Replace Program 35,000 50,000 50,000 50,000 50,000 ISR Thermo plastic road markings
--50,000 --GCF Traffic Calming Program 45,000 45,000 45,000 45,000 50,000 GCF Traffic Signal Electrical Program 30,000 30,000 30,000 30,000 30,000 GCF Traffic Signal Integration ---325,000
-GCF, GRA Traffic Signal Replacements 30,914 60,000 70,000 80,000 80,000 ISR Transit Oriented Design 75,000 ----GCF Walkway Fence Installations 20,000 ----GCF Highways 17,637,022 15,473,101
21,025,641 3,900,485 5,566,718 Operating Capital 2009 2010 2011 2012 2013 Funding Misc Capital Engineering 15,015 15,015 15,015 15,015 15,015 GCF Misc Capital Gen Govt 15,015 15,015
15,015 15,015 15,015 GCF Misc Capital Gen Rec 30,000 30,000 30,000 30,000 30,000 GCF Operating Capital 60,030 60,030 60,030 60,030 60,030 Park Acquisition 2009 2010 2011 2012 2013 Funding
Greenbelt Acquisition -200,000 200,000 200,000 200,000 PAR Silver Valley Neigh Park Acq A ---506,160 -CWR, DCC, GCF Silver Valley Neigh Park Acq B ---627,000 -DCC, GCF Silver Valley
Neigh Park Acq SE Horse 1,331,999 ----CWR, DCC, GCF Silver Valley Neigh Park Phase 2 ----1,682,980 CWR, DCC, GCF Park Acquisition 1,331,999 200,000 200,000 1,333,160 1,882,980 Park
Improvements 2009 2010 2011 2012 2013 Funding Albion Park facilities (caretaker residence) ----305,200 CWR, DCC, GCF Albion Park facilities (spray pool) -388,500 ---CWR, DCC, GCF Cemetery
Caretaker House --115,000 --CEM Computerized Irrigation Control System --2,000 --GCF Cottonwood West Park Facilities --615,339 --CWR, DCC, GCF Equipment Purchase -Mower Trailer -12,000
---GCF Fraserview Park Development ---305,096 -CWR, DCC, GCF Park Development (237/136) ----310,644 CWR, DCC, GCF Park Development (241/104) ---310,643 -CWR, DCC, GCF Park Development
Albion Elementary ----333,000 CWR, DCC, GCF Port Haney Park Development 22,782 ----GCF Sport Field Renovations 319,793 ----GCF Synthetic field groomer 15,000 ----GCF Trail Improvement
-29,298 -28,701 -GCF Whonnock Lake Phase 1 Entrance Road --235,000 --GCF Whonnock Lake Phase 2 Parking -290,000 ---GCF Whonnock Lake Phase 3 Path/Light ----297,330 CWR, DCC, GCF Whonnock
Lake Phase 4 Beach/General ----356,243 CWR, DCC, GCF Whonnock Lake Phase 5 Washrooms/House ---624,000 -CWR, DCC, GCF Whonnock Lake Phase 6 Canoe Facility ---1,980,000 -CFO Youth Action
Skateboard Park Albion ----750,000 CFO, CWR, DCC Park Improvements 357,575 719,798 967,339 3,248,440 2,352,417
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 38 of 42 Financial Overview Report Protective Services 2009 2010 2011 2012 2013 Funding Courthouse Renovations
(additional) 20,000 ----PSR Equipment Purchase -Firehall #4 -70,000 ---FDR Fire Equipment Engine 2-2 Replacement ---705,000 -ERR-FD Fire Vehicles -Equipment 50,000 ----ERR-FD Firehall
#3 Expansion Phase 1 50,000 ----FDR Firehall #3 Expansion Phase 2 -700,000 ---FDR Firehall #4 Engine New ---625,000 -FDR Firehall #4 Protective & Safety Equip -83,960 ---FDR Firehall
#4 Rescue 4 ---325,000 -FDR Firehall #4 Technical & Furnishings -200,000 ---FDR Firehall #5 Engine 2 Replacement -425,000 ---ERR-FD Public Education Vehicle 15,000 ----FDR RCMP -Dismantle
old identification room 12,000 ----PSR RCMP -Furniture Replacement 10,000 10,000 10,000 10,000 -CFO, PSR RCMP -Soundproof GIS interview room 7,000 ----PSR Rescue 2 Replacement --375,000
--ERR-FD Protective Services 164,000 1,488,960 385,000 1,665,000 -Recreational Services 2009 2010 2011 2012 2013 Funding Equipment Purchase -Mobile Stage ----100,000 GCF Equipment Purchase
-Mower -80,000 ---GCF Equipment Purchase -Vehicle -40,000 ---GCF Leisure Center -Active studio reno -55,000 ---GCF Leisure Centre -Energy retrofit 1,000,000 ----CIR, CWR, GRA Leisure
Centre -Turnstile 62,000 ----CORE Recreational Services 1,062,000 175,000 --100,000 Sewage 2009 2010 2011 2012 2013 Funding 101A Ave @243A St ---1,500 -CFO 108 Ave (248 -249) -36,547
---DCC, SCF 136 Ave (230 -231) --31,739 --DCC, SCF 223 St (119 -Dewdney Trunk) -87,733 ---SCF 224 St (Dewdney Trunk -Brown) -32,568 ---SCF 224 St (Lane N North -Lougheed) -18,416 ---SCF
225 St Pump Station pump upgrade -135,000 ---SCF 225 St Pump Station Upgrade Phase 2 -1,118,878 ---DCC, SCF 225 St Pump Station Upgrade Phase 3 ---400,000 -SCF 245 St (104 -105) ----84,725
DCC, SCF Cottonwood Dr (115 -116) ---60,655 -SCF Energy Efficiency Audit (30/70 Sewer/Water) 15,000 ----SCF, WCF Fern Crescent (237 -240) ----733,557 DCC, SCF Lane N 119 (222 -224)
-110,487 ---SCF Lane N Mcintosh (223 -224) -73,658 ---SCF Lane N Selkirk (222 -224) -98,212 ---SCF Lane N Selkirk (226 -227) -44,000 ---SCF Lane S Lougheed (223 -224) -94,120 ---SCF
Lane S Selkirk (222 -223) -73,658 ---SCF Local Improvement Projects -Sewer 250,000 250,000 250,000 250,000 250,000 CFO Lougheed Hwy (227 -228) ----230,613 SCF Meadowbrook Place (12600
Block) 120,000 ----SCF Private Sewer Connections 82,250 84,707 87,353 89,601 91,958 SRF Sanitary Network Subcatchment A Study ----125,000 SCF Sanitary Network Subcatchment A To GIS
-35,000 ---SCF Sanitary Network Subcatchment J Study --150,000 --SCF Sanitary Network Subcatchment K Study 150,000 ----SCF Sanitary Network Subcatchment T Study -150,000 ---SCF Sanitary
Sewer Modelling Update -9,000 9,000 30,000 -SCF
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 39 of 42 Financial Overview Report Sewage (cont.) 2009 2010 2011 2012 2013 Funding SCADA upgrade (50/50
Sewer/Water) 19,000 ----SCF, WCF Sewage System Rehabilitation 250,000 287,500 287,500 250,000 -SCF Sewer Extension to Corrections Part A 1,000,000 ----GRA Sewer Extension to Corrections
Part B -6,000,000 ---GRA South Slope Interceptor Repair -400,000 ---SCF Video & spot repairs sewer 65,000 65,000 65,000 65,000 -SCF Sewage Total 1,951,250 9,204,484 880,592 1,146,756
1,515,853 Technology 2009 2010 2011 2012 2013 Funding Attendance Management Program ----90,000 GCF CCTV -Library and Backbone 39,500 ----CORE, GCF Computer Room Upgrades --41,221 --GCF
Corporate Antivirus Replacement 10,000 ----GCF Council Chamber Digital Video Management System 10,000 ----GCF Council Chamber Multimedia Upgrade -25,000 ---GCF Document Processing System
-Phase 1 75,000 75,000 ---GCF, SCF, WCF Document Processing System -Phase 2 --63,000 --GCF Economic Dev -Office Outfitting 8,500 ----GCF Equipment Purchase -Blade Server --21,000 --GCF
Equipment Purchase -Load Balancer -35,000 ---GCF Equipment Purchase -New Web Server --25,245 --GCF Equipment Purchase -SMS Redundancy ----38,225 GCF Equipment Purchase -UPS Upgrade
--16,170 --GCF Equipment Replacement -Info Serv 854,285 377,733 499,433 1,170,186 100 ERR-IS Fibre Optic Network -Downtown Ring Phase 3 --100,000 180,000 -GCF Fibre Optic Network -Firehall
#4 Phase 4 ----250,000 GCF Fibre Optic Network -Transit Exchange -46,400 ---GCF Fleet Management Software -70,000 ---CFO Infrastructure growth (20 desktops, 5 laptops) 40,000 ----GCF
Infrastructure Management Phase 1 50,000 ----GCF, SCF, WCF Integrated Cash System ----50,000 GCF IT Disaster Recovery Infrastructure ---97,275 -GCF IT Disaster Recovery Plan -60,000
---GCF IT Fibre Optic -#0699 (224 St) --32,967 --CWR IT Fibre Optic -#1189 (224 St) -29,023 ---CWR IT Fibre Optic -#1565 (224 St) --13,137 --CWR IT Fibre Optic -#7074 (Kanaka -240)
-27,433 ---CWR IT Strategic Plan Update --50,000 --GCF Management Reporting Software Phase 2 ----40,000 GCF Network Monitoring -17,325 ---GCF Phone System Replacement 395,000 ----ERR,
PSR Public Access Community Kiosks -38,750 ---GCF ROSS financials upgrade 212,000 ----GCF, SCF, WCF Volunteer Software (Impact) 13,000 ----GCF Technology Total 1,707,285 801,664 862,173
1,447,461 468,325 Water 2009 2010 2011 2012 2013 Funding 110 Ave (240 -243) ----139,476 WCF 112 Ave (244 -246) ----412,684 DCC, WCF 113 Ave (246 -248) ----245,751 DCC, WCF 116 Ave (232
-Cottonwood) -47,946 ---WCF 119 Ave (227 -228) ---143,765 -WCF 124 Ave (246 -248) ----227,523 DCC, WCF 125 Ave (241 -Ansell) -331,200 ---WCF 128 Ave (235 -238) ----243,224 DCC, WCF
136 Ave (236 -240) ---855,480 -DCC, WCF 136 Ave @232 St PRV -160,000 ---WCF
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 40 of 42 Financial Overview Report Water (cont.) 2009 2010 2011 2012 2013 Funding 136 Ave @24200 Rockridge
Res. Phase 2 -649,985 ---DCC, WCF 141 Ave @232 St PRV --100,000 --WCF 210 St (116 -118) --218,900 --WCF 216 St (124 -128) ---740,677 -DCC, WCF 224 St (124 -Abernethy) ----376,438 DCC,
WCF 224 St (North -119) --254,277 --DCC, WCF 231 St (117 Ave -118 Ave) ----92,836 WCF 232 St (136 -Silver Valley) ---163,218 -DCC, WCF 241 St -new watermain 20,000 ----WCF 248 St (116
-Dewdney Trunk) ---616,942 -DCC, WCF 263 St (440 Reservoir -Stage 2) -1,301,998 ---DCC, WCF 263 St (440 Reservoir -Stage 2) -Study 30,000 ----DCC, WCF 270A St @123 Ave P/S Phase 2 ---250,000
-WCF Albion & Water Model -dist upgr 250,000 250,000 250,000 --WCF Ansell St (124 -125) --230,400 --WCF Cottonwood Dr (115 -116) ---84,956 -WCF DCC Payment To Joint Supply System ---111,357
-DCC, WCF Dewdney Trunk Rd @246 St GVWD P/S -56,000 ---WCF Energy Efficiency Audit (30/70 Sewer/Water) 35,000 ----SCF, WCF Equipment Purchase -Leak Detectors ----35,000 WCF Fletcher
St (DTR -Brown) ----44,381 WCF Laity St (Lougheed -Dewdney Trunk) -184,900 ---WCF Local Improvement Projects -Water 250,000 250,000 250,000 250,000 250,000 CFO Lougheed @Dewdney Trunk
Rd PRV Relocate 352,000 ----WCF Private Water Connections 165,526 169,885 174,577 178,576 182,767 WRF River Rd (216 -Carshill) -265,000 ---WCF Rothsay Heights Reservoir Improvement
--250,000 --WCF SCADA upgrade (50/50 Sewer/Water) 19,000 ----SCF, WCF Seismic Upgrade Pump Stations 50,000 ----WCF Structural Piles on Kanaka Creek /Lougheed 220,000 ----WCF Truck fill
system: proposed reserv. site -65,000 ---WCF Underground power to McNutt Reservoir 48,500 ----WCF Water Feed Main Stage 2 Debt Pmt 111,111 111,111 111,111 111,111 552,777 DCC, WCF Water
Network Modelling -9,000 ---WCF Water Pump Station Sync (Q3,Q4,Q5,Q6) -160,000 ---WCF Water Pump Upgrades 66,000 ----WCF Watermain Replacement Program 300,000 300,000 300,000 300,000
300,000 WCF Whonnock Water System Study 40,000 ----WCF Water Total 1,957,137 4,312,025 2,139,265 3,806,082 3,102,857 Capital Plan 2009-2013 28,291,656 33,528,001 33,057,477 23,373,272
16,031,810
Appendix B: Capital Works Program Project Listing Business Plan 2009 – 2013 Page 41 of 42 Financial Overview Report Glossary of Funding CEM Cemetery Reserve CFO Contribution from Others
CIR Critical Infrastructure Reserve CORE Core Development CWR Capital Works Reserve DBT Debt DCC Dev Cost Charge Fund ERR-FD Eqpt Replacement -Fire Dept ERR-IS Eqpt Replacement -IS
ERR-PW Eqpt Replacement -Public Works FDR Fire Dept Cap Acquisition GCF General Capital Fund GRA Grants GRF General Revenue Fund ISR Infrastructure Sustainability Reserve PAR Parkland
Acquisition Reserve PSR Protective Services Reserve RCP Committed Projects REC Recycling Reserve SCF Sewer Capital Fund SOIL Gravel Extraction Reserve SRF Sewer Revenue Fund SUR GRF
Surplus from Prior Years WCF Water Capital Fund WRF Water Revenue Fund
Appendix C: Table of Figures Business Plan 2009 – 2013 Page 42 of 42 Financial Overview Report Figure 1: Conceptual Overview of New Revenue ...........................................................
...........................5 Figure 2: Conceptual Overview of Changes to Transfers..........................................................................6 Figure 3: Conceptual Overview
of Expenditure Changes..........................................................................7 Figure 4: Conceptual Overview of Distribution of New Revenue .......................................
.....................9 Figure 5: Growth Packages in Financial Plan..........................................................................................10 Figure 6: Changes to Growth
Packages...................................................................................................11 Figure 7: Items to be funded from Surplus ..............................................
...............................................11 Figure 8: General Revenue Accumulated Surplus ..................................................................................12 Figure
9: Succession Planning Implementation .....................................................................................12 Figure 10: Proposed Capital Spending by Category .......................
........................................................13 Figure 11: Proposed Capital Funding Sources........................................................................................13
Figure 12: Capital Funded by Others .......................................................................................................15 Figure 13: Reconciliation of 2008-2012
Financial Plan to 2009-2013 Proposed Financial Plan......16 Figure 14: Incremental Adjustments .......................................................................................................
18 Figure 15: Sewer and Water Revenue Fund Projections........................................................................19 Figure 16: Capital Projects proposed for debt financing...............
.........................................................22 Figure 17: "Average Home" Tax Increase ................................................................................................25
Figure 18: Reserve Balances Dec.31, 2007...........................................................................................27 Figure 19: Capital Works Reserve Projection.....................
.....................................................................28 Figure 20: Capital Works Reserve Projection Chart..............................................................................
..28 Figure 21: Infrastructure Sustainability Allocation of Funding...............................................................29 Figure 22: Infrastructure Deficit Chart ..........................
..........................................................................29 Figure 23: Fire Department Capital Acquisition Reserve Projection .....................................................30
Figure 24: Fire Department Capital funded by Fire Department Capital Acquisition Reserve ............30 Figure 25: Fire Department Equipment Replacement Reserve Projection...........................
................31 Figure 26: Commercial Operation............................................................................................................31