HomeMy WebLinkAbout2004 - 2008 Financial Plan.pdfFP2004-2008 Bylaw report.doc
CORPORATION OF THE DISTRICT OF MAPLE RIDGE TO: Her Worship Mayor Kathy Morse DATE: November 12, 2003 and Members of Council FILE NO: FROM: Chief Administrative Officer ATTN: SUBJECT:
2004-2008 Financial Plan Bylaw Purpose/Problem This bylaw will provide the authorization required to carry out the Business Plans presented to the Mayor and Council and public in November
2003. Recommendation(s) That the Maple Ridge 2004-2008 Financial Plan By-law #6183-2003 be read a first and second time and that the Rules of Order be waived and the Maple Ridge 2004-2008
Financial Plan By-law #6183-2003 be read a third time. History/Background The District is currently authorized to make expenditures under the 2003-2007 Financial Plan Bylaw 6120-2003.
However, this plan is currently outdated and does not represent Council’s recommendation to move forward with the Business Plans as presented in November 2003. Alternatives In the event
this bylaw is not passed, the District is not authorized to make any expenditures other than those identified in the 2003-2007 Bylaw. This will delay implementation of the Capital Program
and any new operating initiatives. Financial Implications The key items of the 2004 through 2008 Financial Plan were addressed in the Memorandum presented by the Chief Administrative
Officer on November 3, 2003 which has been attached as Appendix A. The only amendment to the Financial Plan presented in November was the addition of $20,000 of capital expenditures
in 2004 and 2005 to ensure the continuation the Safer Cities program. The financial implications are represented in the schedule and appendices accompanying the bylaw. In summary, this
bylaw will provide authorization for $75.5 million in expenditures and transfers in 2004 these can be seen in Appendix B along with the funding sources. Financial obligations with respect
to the Downtown Core Development are included in the plan based on the original agreements as those agreements represent the best estimate of the obligation available at this time.
The borrowing proceeds and payment of debt in 2006 and 2007 represent a buyout of these facilities. Citizen/Public Relations Involvement/Implications An open invitation was extended
to the public to attend any or all of the Business Plan presentations held during November 2003. Feedback was accepted during the sessions, on the District’s web site, and to the telephone
“budget hotline.” This provided Council with additional information with which to base their funding decisions. The presentations are available on the District’s web site and a detailed
copy of the business plan is available for review at the City Hall.
The implication to the average taxpayer in 2004 is a 4% tax increase for levies under the direct control of Municipal Council. We are also legislated to collect taxes and levies for
other jurisdictions and most of those amounts will not be known until early 2004. Further information about expected increases in other jurisdiction levies are included in Appendix
B. A bylaw to set property taxation rates will come forward in April 2004. Interdepartmental Involvement/Implications Business plans were presented by all departments and collectively
coordinated into the Corporate Financial Plan. Ensuring cross-departmental coordination is a fundamental aspect of the business planning process. The business and financial plans were
achieved within the guidelines set in “Business Planning Guidelines 2004,” a document updated annually in the spring, in consultation with Council. Appendix A: Highlights of the Proposed
Financial Plan –Memorandum from J.L. (Jim) Rule, CAO Appendix B: Graphs “2004 Projected Revenues” and “2004 Projected Expenditures” _______________________________________________ Prepared
by: Trevor Thompson, BBA Budget Officer _______________________________________________ Approved by: Jacob Sorba, CGA Director of Finance _______________________________________________
Approved by: Paul Gill, BBA, CGA, General Manager, Corporate & Financial Services _______________________________________________ Concurrence: Jim (J.R.) Rule Chief Administrative Officer
Appendix A M E M O R A N D U M TO: Her Worship Mayor Kathy Morse and Members of Council FROM: Chief Administrative Officer DATE: November 3, 2003 SUBJECT: 2004-2008 Business Plans and
Budgets It is my pleasure to present to Council the draft 2004-2008 Business Plans and Budgets. The documents were prepared using the Budget Guidelines and Business Planning Framework
approved by Council earlier this year. The specific budget guidelines are outlined in Figure 1. Before I introduce the plans for the ensuing period, I would like to briefly comment
on some key financial indicators, as at the end of last year. These indicators come from our annual financial statements which have been reviewed by our external auditors. Our Accumulated
Surplus increased to $4.6 million as compared to $4.2 million at the end of 2001 – please see Figure 2. Our Net Financial Assets amounted to $6.3 million as compared to $13.98 million
in 2001. The change in Net Financial Assets is mainly attributed to the Town Core project, which resulted in the planned conversion of financial assets into fixed assets that provide
service. Year-to-date results are encouraging due to strong revenues and cost controls in all areas. The 2004-2008 Budgets are based on the following: ¨ Tax Base growth estimated at
2.75% for $780,000 ¨ Tax increase at 4% generates $1.1 million (3% General Revenue; 1% for Core Project) ¨ Brisk building permit activity to generate $1.5 million ¨ Financial obligations
with respect to the Core are included in the plan ¨ Capital Expenditures maintained at $2.2 million ¨ Gravel Revenue of $250,000 per annum As has been previously discussed with Council,
a significant portion of new revenue in the next few years is to be directed to our obligations for the Town Core project. Further, in 2003, Council approved a financial plan with implications
beyond one year. For instance, four police officers were added on July 1, 2003. The full financial impact of these positions will not be realized until 2004. This means there is limited
capacity for enhanced packages. Nonetheless, workload pressures are being experienced in a number of areas due to the increased demands for service that one would expect in a growing
community like ours. Staff proposed a number of enhancements which the Corporate Management Team evaluated based on the following criteria established by Council. 1. Operating Implications
of items in the approved Capital Plan.
Appendix A 2. Health and Safety 3. Other Council Priorities 4. Other needs Using this criteria, we are pleased to report that the draft financial plan has provided for the following.
All enhancements will take place in 2004, unless otherwise noted. · $75,000 to establish a Social Planning function. · $50,000 (increasing to $115,000 by 2005) to provide Information
Technology and Data processing support for the RCMP. · $56,000 to the Public Works Section for maintaining the additional infrastructure that has been built. · $17,000 to continue the
“Safer Cities” partnership. · $50,000 in one time funding to assist with the Bylaws Department workplan. · $25,000 in 2005 (increasing to $50,000 in 2006) to provide additional support
to our Environmental Technician · $12,500 (increasing to $25,000 in 2005) to provide part time support to our Payroll Section · $62,500 one item funding to the Communications Department
to assist with their workplan. The above items will see us through 2004 but there are three key items that will need attention in early 2004 as they will have financial implications
beyond 2004. 1. The Fire Department Masterplan should be finalized by the end of this year and it may have financial consequences. 2. While we added 4 police officers this year and
are proposing to add 4 more officers in 2004, capacity to add officers in 2005 is limited. 3. The District of Pitt Meadows is considering the addition of a new pool complex in 2007.
Capital Costs will be the responsibility of Pitt Meadows but the Operating Costs will be sharable in accordance with our agreements. Maple Ridge’s share of these costs is estimated
at $400,000, which, for the moment, is reflected in our 2007 expenditures. Resolution of the Town Core project may assist in providing some financial capacity to help with these items.
Also, there may be other challenges ahead. 1. Our financial plan is based on the assumption that our community will continue to grow. There are a number of variables that could change
this – most of which we have little control over. For instance, our growth is partly fueled by the current low interest rate environment. An increase in interest rates could impact
investment in our community. 2. All indications are that the Province will continue to reduce costs through reductions in services. This will increase the needs of our citizens and
will result in added demands for our services. 3. While our growth is brisk, it is unbalanced. Almost all of our growth this year was concentrated in the residential area; growth in
the industrial/commercial area was negligible. Council’s Economic Development initiative is designed to correct this imbalance. 4. As our community grows, infrastructure investments
are being made. The value of this accumulated investment is quickly approaching $1 billion and it is important that we plan properly for its maintenance and replacement. 5. We expect
significant costs to flow through to our citizens from other governments. For instance, improvements are being considered to our transportation system. At the present time, a typical
house pays about $45 in transit related property taxes. The transit improvements that are being
Appendix A contemplated will see this tax approach $500 per year in the near future, if the improvements are funded solely through property taxes. Even if other sources of funding are
identified, the increase in the property tax levy for transit will be dramatic. Significant increases are also expected for Sanitary Sewer and Water services. Notwithstanding these
challenges, we have tried to balance the needs of our community with our financial capacity through our business planning framework. The attached detailed Business Plans and Budgets
are submitted for 2004-2008 for the consideration of Council. A Summary is attached as Figure 3. I would like to close by thanking all of the staff for the time and effort that they
have put into developing these plans. As I have said before, the Business Planning process used in Maple Ridge is excellent and one that we should all be proud of. RECOMMENDATION: That
Council review the 2004-2008 business plans and budgets; make changes as appropriate and adopt these documents. _______________________________________________ J.L. (Jim) Rule Chief
Administrative Officer JR:sr
Appendix A Figure 1: Guidelines Adopted by Council Business Planning & Budget Guidelines 2004 – 2008 1. Tax increase – 3% per year. 2. Capital Works (Town Centre) – 1% per year. 3. Budgets
include operating and capital components for a 5-year period. 4. Public Consultation Plan developed and operationalized. 5. Increase revenue from existing sources by about 5%. 6. Identify
potential new revenue sources (i.e. be creative). 7. Services – ask yourselves: Are we in the right services and the right mix of services? Do others deliver these services? Can we
partner with anyone to deliver the service? 8. Identify and measure outputs/outcomes. Identify key processes to undergo process improvement reviews. 9. Reduction packages should be
at -10% (limit small packages and multiples to get to -10%). What would you recommend be kept if you had only 90% of your budget? This should not be interpreted to mean that we are
looking to reduce our budget by 10%. Rather, this is an opportunity for us to explain what the ramifications of such reductions would be. Also, it is a chance for us to look at what
we are doing to see if there are ways to improve. 10. Incremental packages must include a business plan and business case to support new programs/projects/staff. 11. Organizational/structural
change – is the current organization adequate to deliver the service? Are there better options? 12. Succession Planning – review organization charts in relation to service delivery
with a view to long-term planning. What positions do you see as potentially becoming vacant by retirement and what organizational options may be available as a result? 13. Vacant position
review and management – all positions that become vacant are subject to a detailed review prior to being refilled. 14. Systematically review existing policies and/or develop policies
in key areas that require policy direction, using the template on Page 46. 15. Quarterly performance reports are to be presented to Council at open Council meetings. 16. Progress in
relation to our strategic direction is to be evaluated every six months 17. Issues raised at the May, 2003 retreat are to be considered in developing workplans, respecting the criteria
for establishing priorities that is outlined on page 39, and recognizing that capacity is needed for opportunities or issues that might be discovered through out the year.
Appendix A Figure 2: Accumulated Surplus (General Revenue) AccumulatedSurplus (GeneralRevenue) 3.4 3 3.3 3.1 3.6 4.1 4.2 4.6 012345 1995 1996 1997 1998 1999 2000 2001 2002 Year $ (Millions)
Appendix A Assumptions: 2003 2004 2005 2006 2007 2008 Growth 2.75% 2.75% 2.75% 2.75% 2.00% 2.00% Tax Increase 4.00% 4.00% 4.00% 3.75% 3.50% 3.00% Value of Growth/Tax Increase of 0.25%
($72,232) ($77,312) ($82,639) ($87,605) ($92,329) Transfer 1% of Tax Increase and 50% of growth to Core Reserve, last year is 2007. Highlighted items (included in Divisional Budget
below) 2003 2004 2005 2006 2007 2008 PW&D -Gravel Sales Revenue ($66,500) ($316,500) ($316,500) ($316,500) ($316,500) ($316,500) PW&D -Animal Control Contract 158,400 238,000 242,000
242,000 242,000 242,000 PW&D -Inspections Permits Revenue (1,220,000) (1,470,000) (1,470,000) (1,470,000) (1,470,000) (1,470,000) Capital Expenditures -General Revenue Funded 2,200,000
2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 Infrastructure Funding -General Government Properties 450,000 450,000 450,000 450,000 450,000 450,000 Equipment Replacement Reserve
Funding (GR) -Information Technology 293,134 360,310 412,310 412,310 412,310 412,310 Divisional Budget Prior to 2003 Pkgs 2003 2004 2005 2006 2007 2008 C&FS -Financial Services (Taxation/Debt/Transf
ers/Other Rev.) ($31,959,564) ($33,497,354) ($35,085,067) ($36,770,085) ($37,922,047) ($39,743,171) C&FS -Protective 11,299,556 11,776,551 12,227,409 12,823,417 12,984,586 13,178,150
C&FS -Other 4,470,785 4,626,477 4,809,661 4,934,081 5,052,531 5,162,023 Admin 843,185 828,520 847,955 866,496 885,461 904,886 CDPR 8,451,299 8,582,181 8,709,777 8,884,474 9,474,283
9,598,302 PW&D 6,011,027 5,898,288 6,125,538 6,375,728 6,575,465 6,762,795 Total excluding 2003 Pkgs ($883,712) ($1,785,337) ($2,364,727) ($2,885,889) ($2,949,721) ($4,137,015) 2003
Recommended Packages 2003 2004 2005 2006 2007 2008 Economic Development $190,000 $190,000 $270,000 $270,000 $270,000 $270,000 Clerks -Insurance 50,000 50,000 50,000 50,000 50,000 50,000
Communications 100,000 125,000 150,000 200,000 250,000 250,000 Training -Phase back prior reduction -15,000 30,000 30,000 30,000 30,000 Finance -Revenue & Collections Clerk/Cashier
15,000 30,000 30,000 30,000 30,000 30,000 Fire fighting Response 50,000 100,000 150,000 200,000 250,000 250,000 I/S -Software Maintenance 15,512 38,163 48,163 63,163 63,163 63,163 Legislative
-Unallocated Grants 5,000 5,000 5,000 5,000 5,000 5,000 Legislative -Contingency (Mileage & Other) 20,000 20,000 20,000 20,000 20,000 20,000 Licenses, Permits & Bylaws -Bylaws Enforcement
-26,175 50,620 52,486 54,049 54,049 Licenses, Permits & Bylaws -Clerical Support (net cost) 21,792 21,880 23,029 24,647 25,986 25,986 Licenses, Permits & Bylaws -Pitt Meadows Airport
10,000 10,000 10,000 10,000 10,000 10,000 Operation -Core Cleanup 24,000 24,000 24,000 24,000 24,000 24,000 Leisure Centre -Leisure Centre Assistant Manager -22,371 23,155 23,850 24,566
24,566 Recreation -Security Service for Town Centre 35,000 35,000 35,000 35,000 35,000 35,000 Parks & Facilities -Parks Growth Operating/Maintenance Costs 39,879 68,448 124,543 173,945
173,229 173,229 Recreation -Festival Society, S/W Mtce., Subsidized Admissions 35,000 44,100 44,100 44,100 44,100 44,100 Planning -Planning Assistant -23,330 50,605 52,508 54,082 54,082
Planning -Payments to Societies (ARMS, KEEPS) 20,000 20,000 20,000 20,000 20,000 20,000 Police Services -RCMP Members, Community Policing Coordinator 217,421 630,842 830,842 830,842
830,842 830,842 Police Services -Reduce Provincial Revenue -Keep of Prisoners 23,700 24,174 24,657 25,151 25,654 25,654 PW&D -Administration -Customer Service Counter Supervisor 22,498
40,443 41,910 43,975 45,684 45,684 2003 Recommended Pkgs $894,802 $1,563,926 $2,055,624 $2,228,667 $2,335,355 $2,335,355 Surplus Prior to 2004 Pkgs ($221,411) ($309,103) ($657,222)
($614,366) ($1,801,660) Business Planning Summary for Financial Plan 2004-2008 Review of General Revenue Fund (Excluding Utilities) 2004 Packages Recommended 2004 2005 2006 2007 2008
Social Planning (request $101,566 & $8,000 one time) $75,000 $75,000 $75,000 $75,000 $75,000 Police Services -IT Support, CPIC, Reader 50,000 75,000 115,000 115,000 115,000 Operations
-Roads/Lighting/Storm Growth 25,880 27,000 30,000 33,000 36,000 Information Services -Service Desk 23,500 47,000 47,000 47,000 47,000 Engineering -Safer Cities 17,000 17,000 Recreation
-Art Gallery Grants 16,086 16,086 16,086 16,086 16,086 Human Resources -Payroll 12,500 23,000 23,000 23,000 23,000 Planning -Environmental Technician (net) 25,000 50,000 50,000 50,000
Information Services -Equipment Replacement Reserve IT 50,000 50,000 50,000 Human Resources -HepB & Safety Compliance Program 23,000 Funding from Surplus -One time items (23,000) Human
Resources -Training (Office XP, GIS, Super Users) 25,000 Funding from Surplus -One time items (25,000) Communications -Public Relations 12,500 Communications -Advertising 30,000 15,000
Communications -Corporate Identity 20,000 Funding from Surplus -One time items (62,500) (15,000) Licenses, Permits & Bylaws -Sign Bylaws & Business Lic. Review 50,000 Funding from Surplus
-One time items (50,000) Recycling Rate Increases -2% (19,674) (20,168) (20,674) (21,059) (21,449) Transfer to Recycling Reserve 19,674 20,168 20,674 21,059 21,449 Operations -Utilities
Growth 30,680 32,000 35,000 38,000 41,000 Funding from Utilities (30,680) (32,000) (35,000) (38,000) (41,000) Social Planning -One time Equipment 8,000 Funding from Surplus -One time
items (8,000) 2004 Recommended Packages $219,966 $305,086 $406,086 $409,086 $412,086 2004 Projected Transfer (to)/from Accumulated Surplus ($1,445) ($4,017) ($251,136) ($205,280) ($1,389,574)
Appendix B 2004 Projected Expenditures $75.5 Million Capital Program $16.5M Debt Payments $4.5M Reserves $7.4M Administration $1M Fire Protection $2M Police Services $10.6M Corporate
& Financial $4.8M Parks, Recreation & Gen. Govt Properties $10.3M Public Works & Development $8.9M Sewer $5M Water $4.5M Other 2004 Projected Revenue $75.5M Property Taxes & Parcel
Charges $34.5M Property Sales $0.9M Borrowing Proceeds $1.4M Interest, Grants and Other $5.2M Development Fees $4.2M Reserves $10.3MFees & Charges $19M
Appendix B CORPORATION OF THE DISTRICT OF MAPLE RIDGE BY-LAW NO. 6183-2003 A By-law respecting the 5-year Financial Plan for the years 2004 through 2008 WHEREAS pursuant to Section 327
of the Local Government Act, Council for the District of Maple Ridge has caused to be prepared a Financial Plan for the years 2004-2008; AND WHEREAS a public consultation process regarding
the Financial Plan was undertaken by the District of Maple Ridge; NOW, THEREFORE, Council for the District of Maple Ridge in open meeting assembled, ENACTS AS FOLLOWS: 1. This By-law
may be cited for all purposes as “Maple Ridge Financial Plan By-law No. 6183-2003.” 2. Statement 1 attached hereto and made part of this by-law is hereby declared to be the Financial
Plan of the Corporation of the District of Maple Ridge for the years 2004 through 2008. READ a first time this READ a second time this READ a third time this. RECONSIDERED and adopted
the ___________________________________________MAYOR ____________________________________________CLERK Attachments: Statement 1
Attachment to Financial Plan Bylaw 6183-2003 2004 2005 2006 2007 2008 REVENUES External Revenues $62,772,892 $64,088,759 $66,922,321 $69,996,463 $73,484,720 Property Taxes $32,649,690
$34,777,774 $36,974,915 $38,944,086 $40,833,216 Parcel Charges $1,796,715 $1,836,950 $1,878,119 $1,912,890 $1,948,221 Fees & Charges $19,035,676 $19,600,073 $20,240,156 $20,930,946
$20,992,045 Interest $1,725,000 $1,725,000 $1,725,000 $1,725,000 $1,725,000 Grants (Other Govts) $3,467,169 $2,510,258 $2,618,329 $2,070,698 $3,561,957 Property Sales $900,000 $0 $0
$0 $0 Development Fees Developer Cost Charges $3,864,143 $4,188,704 $4,035,801 $4,197,092 $4,229,297 Developer Specified Projects $43,500 $0 $0 $15,750 $25,984 Parkland Acquisition
$281,000 $200,000 $200,000 $200,000 $200,000 Total External Revenues $63,762,892 $64,838,759 $67,672,321 $69,996,463 $73,515,720 Internal Revenues $11,310,574 $10,764,837 $10,860,285
$6,179,601 Borrowing Proceeds $1,400,000 $0 $18,588,754 $10,743,877 $350,000 Transfer from Part 13 Funds $3,985,698 $3,702,425 $5,580,364 $877,828 $2,901,516 Transfer from Own Reserves
$4,028,265 $4,216,856 $4,071,484 $4,603,729 $4,600,076 Transfer from Surplus $2,302,612 $2,056,732 $382,483 $432,840 $0 Total Internal Revenues $11,716,574 $9,976,013 $28,623,085 $16,658,273
$7,851,592 TOTAL REVENUES $75,479,466 $74,814,772 $96,295,406 $86,654,736 $81,367,312 EXPENDITURES $75,483,466 $74,853,596 $96,371,360 $76,176,064 $80,982,790 External Expenditures
$68,121,262 $67,977,256 $88,447,335 $67,589,546 $72,314,110 Capital Expenditures $16,502,976 $14,150,401 $14,819,500 $10,418,270 $14,484,464 Interest Payments on Debt $2,822,313 $2,737,440
$2,369,376 $2,262,252 $2,261,965 Other Expenditures $47,094,715 $49,453,367 $51,604,787 $53,872,851 $54,742,329 Total External Expenditures $66,420,004 $66,341,208 $68,793,663 $66,553,373
$71,488,759 Internal Expenditures $7,362,204 $6,876,340 $7,924,025 $8,586,518 $8,668,680 Principal Payments on Debt $1,697,258 $1,597,224 $19,577,718 $11,514,845 $666,732 Contribution
to Part 13 Funds $2,886,709 $3,034,442 $3,193,219 $3,285,935 $3,380,186 Contribution to Surplus $0 $0 $0 $0 $543,140 Contribution to Own Reserves $4,475,495 $3,841,897 $4,730,806 $5,300,583
$5,288,495 Total Internal Expenditures $9,059,462 $8,473,564 $27,501,743 $20,101,363 $9,878,553 TOTAL EXPENDITURES $75,479,466 $74,814,772 $96,295,406 $86,654,736 $81,367,312 Consolidated
Financial Plan Statement 1