HomeMy WebLinkAbout2003 - 2007 Financial Plan.pdfFP2003-2007 Bylaw report.doc
CORPORATION OF THE DISTRICT OF MAPLE RIDGE TO: Her Worship Mayor Kathy Morse DATE: December 17, 2002 and Members of Council FROM: Chief Administrative Officer SUBJECT: 2003-2007 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 December 2002. Recommendation(s)
That the Maple Ridge 2003-2007 Financial Plan By-law #6090-2002 be read a first and second time and that the Rules of Order be waived and the Maple Ridge 2003-2007 Financial Plan By-law
#6090-2002 be read a third time. History/Background The District is currently authorized to make expenditures under the 2002-2006 Financial Plan Bylaw 6040-2002. However, this plan
is currently outdated and does not represent Council’s recommendation to move forward with the Business Plans as presented in December 2002. Alternatives In the event this bylaw is
not passed, the District is not authorized to make any expenditures other than those identified in the 2002-2006 Bylaw. This will delay implementation of the Capital Program and any
new operating initiatives. Financial Implications The financial implications are represented in the schedule and appendices accompanying the bylaw. In summary, this bylaw will provide
authorization for $76 million in expenditures, as follows: · a $16 million Capital Program; · $44 million in Operating Expenditures; · $5 million in Debt Payments; and · $11 million
in Transfers to Reserves. The funding of $76 million will come from the following sources: · Property Taxes and Parcel Charges $33 million; · Property Sales $5 million; · Fees and Charges
$16 million; · Grants, Interest and Other $5 million; · Developer Cost Charges $5 million; · Transfers from Reserves $12 million. 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 December 2002. 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 implication to the average taxpayer in 2003 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 2003. A bylaw to set property taxation rates will come forward in April 2003. 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 2003,” a document updated annually in the spring, in consultation with Council. Appendix A: Highlights
of the Proposed 2002 Financial Plan Appendix B: Graphs “2003 Projected Revenues” and “2003 Projected Expenditures” _______________________________________________ Prepared by: Laura
Benson, CMA Senior Finance Manager _______________________________________________ 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 Highlights of the Proposed 2003 Financial Plan Taxation Growth in the assessment base for taxation has been estimated at 2.75%, which brings in an additional $750,000 in revenue.
A 4% tax increase has been proposed; 3% for general purpose and 1% for Town Centre Project. This generates an additional $1,100,000 in revenue. Consistent with a strategy adopted in
1998 to increase Capital Works Reserve by 1% of taxation, $279,000 of this new revenue will be transferred to this reserve for use in the capital program. Grants in Lieu from other
governmental agencies and corporations will rise $72,000. Recycling rates will increase due to increased contract and vehicle costs. The depot charge will increase $0.48 (2%) from $23.76
to $24.24. The blue box program will increase $$0.48 (2%) for single family homes, increasing the rate from $24.44 to $24.92. The rate change for multi-unit dwellings is $0.48 (2%),
increasing the rate from $24.26 to $24.74. The District’s cost to purchase water from the Greater Vancouver Water District is expected to rise 4%. This issue will be revisited once
GVWD finalizes their budget. The Greater Vancouver Sewage and Drainage District has passed along a 2% increase in operating costs, and a 10.56% increase as the phasein for the North
Fraser Sewer Area equalization. A 4% increase in rates to District ratepayers is expected, with the balance of the increase funded from reserves. Both water and sewer rates will be
considered further in March/April 2003. Public Works and Development Revenue from building permits is expected to rise $150,000 over the 2002 budgeted level. A $40,000 increase in part-time
wages has been provided to deal with the activity, with funding provided from the Inspection Reserve. Planning revenues are also expected to rise, and are budgeted at $35,000 over 2002.
There will be additional charges to the utilities and capital projects from engineering services of $65,000, a shift that will have the utility users pay their fair share of services,
while general revenue taxpayers will see a reduction. A temporary Planner 1 position has been eliminated. The recycling contract is expected to rise $22,000, mainly due to wage increases.
Higher vehicle charges add an additional $17,000 in costs. A 2% rate increase is proposed to meet these pressures. Wages for the Public Works and Development division are expected to
rise $230,000 due to estimated wage and benefits costs, and a $55,000 savings from vacancy management in the 2002 budget has been added back. Cost containment initiatives employed in
2002 have been eliminated, causing a rise in costs of $90,000. A coordinator for the new integrated customer service counter has been added midway through 2003 at an annual cost of
$65,000 (half for 2003). A Planning Assistant is included at an annual cost of $54,000, beginning midway through 2004. Funding, on a one-time basis, is provided for: a zoning bylaw
review $80,000; development process review $30,000; heritage and significant tree policy $20,000. Clerical support for the Bylaw Enforcement area is provided at an annual cost of $21,000,
and an additional Bylaw Enforcement Officer is provided beginning midway through 2004. $45,000 for ICBC’s Safer City project has been added to fund 2003 and 2004 costs, and further
funding will be re-evaluated in the future. Clean-up in the town core area will receive an additional $24,000, and a program to upgrade sidewalk wheelchair ramps has been extended for
a further 2 years at a total cost of $75,000.
Appendix A Protective Services The Fire Department Capital Acquisition Reserve, which receives 2% of taxation, will receive an increase of $36,000 due to a higher taxation base. Coupled
with an annual contribution to the Equipment Replacement Reserve, this brings the annual amount transferred to reserves to $820,000. Other fire protection costs rise $60,000, including
wages, WCB charges, vehicle costs, and the cost for paid-on-call services. An additional $50,000 is being provided for the department, and increases by $50,000 for each of the following
4 years. The RCMP contract increases by $420,000, to a total of $6.8 million. Centralized dispatch service will require $175,000 in funding over the 2002 budget amount, for an annual
commitment of $675,000. Offsetting this increase is a decrease in dispatch wages of $210,000. Funding is provided for 4 new RCMP members to start midway through 2003 at a cost of $200,000,
and another 4 midway through 2004. Also provided are an Applications Support Specialist for 2003 only ($45,000), a Community Policing Coordintor starting midway through 2003 ($10,750
for ½ year), and provision for a used vehicle, to be used part-time and shared with the Information Services Department ($4,000). Community Development, Parks & Recreation Revenues
from recreation services are expected to rise $200,000 over the 2002 budget due to a higher than anticipated public response to new services. The Leisure Centre makes up $175,000 of
this increase. A rise in program costs and wages to respond to increased use is expected to require an additional $230,000 over the prior year. Other wages and payroll benefits for
this division add $190,000 in costs over the prior year. Use and occupancy payments on the Arts Centre begin in 2003 and are expected to be $960,000 for the year. The Arts Council fee
for service will increase $230,000, for a total of $410,000 to cover the operating costs for the Arts Centre. Other additional amounts provided for 2003 are: water well testing $10,000;
annual maintenance costs on the registration software $10,000; maintenance for new parks in the capital program $5,000; a growth increment of $40,000, an increment to supplement current
security initiatives in the town centre to provide full year coverage $35,000; $12,000 for opening celebrations for the Arts Centre, and $8,000 for a public art policy, funded from
2002 surplus. Corporate & Financial Services A Clerks Coordinator position was eliminated, and net of an increase in costs, will save $20,000. Recruitment decreases $30,000 from a higher
2002 level to deal with several senior management positions. The early retirement program has been eliminated, removing an expected $50,000 saving. Wages and payroll benefits for this
division are expected to rise $200,000. Provision for a part-time accounting cashier/clerk has been added at $15,000. Investment earnings are anticipated to rise, so a $165,000 increase
in revenue expectation has been accommodated. Other revenues show expected increases of $35,000. Insurance premiums are expected to rise $50,000. Funding of $20,000 has been provided
to deal with WCB and BC Municipal Safety Association regulations on a one-time basis. Operating costs relating to technology projects will add $20,000 in costs to 2003. A remote user
upgrade program, for 2003 only, will cost $15,000. A Project Manager has been added, at a cost of $98,000, and is funded from projects within the capital program. A part-time Accounting
Cashier/Clerk is added
Appendix A midway through 2003. One-time money is provided for a regulatory WCB/BCMSA project ($20,000), and fixed asset classification and valuation project ($50,000). An effort to
increase the corporate training budget to 2000 levels starts midway through 2004. Reserves that will receive higher contributions than the prior year, along with the incremental amounts,
are as follows: Technology Replacement Reserve $145,000; Facilities Infrastructure Reserve $50,000; Protective Services Reserve $50,000. Some of these amounts were decisions made in
last year’s business planning process. The Town Centre Reserve will receive an additional 1% of taxation revenue ($279,000), and anticipated land sale revenue of $5,400,000. Administration
A mail clerk, a half-time position added in 2002, increases costs by $17,000 over the previous year. A vacancy in the CAO’s position in 2002 is filled, adding $20,000 to cover a full
year. Wages and payroll benefits increase $15,000, and a benefits package is provided to Council at a cost of $12,000. Cost savings in studies and projects total $20,000. New funding
has been added for an ongoing economic development program $190,000, plus an economic development strategy at $35,000. Funding will be provided for communications at $100,000. Grants
and Donations have been increased by $35,000, and a contingency for Council expenses has been provided at $20,000. Capital Program The funding provided to the capital works program
from General Revenue remains stable at $2.2 million for 2003. The program totals $16 million with resources allocated as follows: · Drainage $520,000; Highways $5.6 million; Sewer $1.2
million; Water $2.2 million · Government Services $1.0 million; Technology $900,000 · Park Acquisition $400,000 /Park Improvement $2.1 million /Recreation $1.5 million · Fire Protection
$560,000; Police Services $85,000
Appendix B 2003 Projected Revenue $76 Million Fees & Charges $16M Grants, Interest and Other $5M Reserves $12M DCC's $5M Property Taxes/Parcel Charges $33M Property Sales $5M 2003 Projected
Expenditures $76 Million Capital Program $16M Administration $1.3M Corporate & Financial $4.8M Fire Department $1.8M Parks, Recreation & Gen Govt Properties $9.8M Police Services $9.6M
Public Works & Development $8.4M Water $4.7M Sewer $4M Other Debt Payments $5M Reserves $11M
CORPORATION OF THE DISTRICT OF MAPLE RIDGE BY-LAW NO. 6090-2002 A By-law respecting the 5-year Financial Plan for the years 2003 through 2007 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 2003-2007; 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. 6090-2002.” 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 2003 through 2007. READ a first time this 17th day of December, 2002. READ a second time this 17th day of December, 2002. READ
a third time this 17th day of December, 2002. RECONSIDERED and adopted the14th day of January, 2003. ___________________________________________MAYOR ____________________________________________CLER
K Attachments: Statement 1
Attachment to Financial Plan Bylaw 6090-2002 2003 2004 2005 2006 2007 REVENUES External Revenues Property Taxes $30,727,179 $33,011,326 $34,968,546 $36,851,636 $39,102,821 Parcel Charges
$1,707,357 $1,733,730 $1,760,362 $1,787,260 $1,814,428 Fees & Charges $16,284,957 $16,753,801 $16,957,558 $17,153,379 $17,440,989 Interest $1,278,304 $1,232,363 $1,176,240 $1,145,904
$1,145,904 Grants (Other Govts) $3,648,116 $2,881,882 $2,294,100 $1,718,537 $2,139,859 Property Sales $5,400,000 $0 $0 $0 $0 Borrowing Proceeds $0 $0 $0 $18,588,754 $0 Development Fees
Developer Cost Charges $5,390,443 $5,244,237 $5,128,685 $5,037,453 $5,582,402 Developer Specified Projects $0 $25,984 $0 $0 $15,750 Parkland Acquisition $0 $200,000 $200,000 $200,000
$200,000 Total External Revenues $64,436,357 $61,083,323 $62,485,491 $82,482,923 $67,442,153 Internal Revenues Transfer from Part 13 Funds $4,137,919 $4,046,198 $3,634,860 $5,550,364
$877,828 Transfer from Own Reserves $5,134,240 $4,261,609 $3,984,307 $4,060,676 $4,938,300 Transfer from Surplus $2,494,498 $2,008,970 $2,628,110 $2,158,385 $112,354 Total Internal
Revenues $11,766,657 $10,316,777 $10,247,277 $11,769,425 $5,928,482 TOTAL REVENUES $76,203,014 $71,400,099 $72,732,768 $94,252,348 $73,370,635 Expenditures External Expenditures Capital
Expenditures $16,147,795 $15,164,437 $14,702,505 $16,147,215 $11,694,881 Principal Payments on Debt $1,976,669 $1,697,258 $1,597,224 $19,569,468 $633,883 Interest Payments on Debt $3,209,476
$3,119,048 $3,034,175 $2,715,373 $2,954,056 Other Expenditures $44,268,652 $45,648,447 $47,236,059 $48,736,153 $50,335,026 Total External Expenditures $65,602,593 $65,629,190 $66,569,963
$87,168,209 $65,617,846 Internal Expenditures Contribution to Part 13 Funds $2,187,912 $2,330,466 $2,470,882 $2,571,186 $2,670,288 Contribution to Surplus $0 $0 $0 $0 $0 Contribution
to Own Reserves $8,412,509 $3,440,444 $3,691,923 $4,512,954 $5,082,502 Total Internal Expenditures $10,600,421 $5,770,909 $6,162,805 $7,084,139 $7,752,790 TOTAL EXPENDITURES $76,203,014
$71,400,099 $72,732,768 $94,252,348 $73,370,635 Consolidated Financial Plan Statement 1