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HomeMy WebLinkAbout2017-2021 Business and Financial Planning Guidelines Report.pdfCORPORATION OF THE DISTRICT OF MAPLE RIDGE City of Maple Ridge TO: Her Worship Mayor Nicole Read MEETING DATE: June 20, 2016 and Members of Council FROM: Chief Administrative Officer MEETING: Council Workshop SUBJECT: 2017-2021 Business & Financial Planning Guidelines EXECUTIVE SUMMARY: Over the coming months, staff will be preparing the 2017-2021 Business Plan and Financial Plan for Council’s consideration in December. The purpose of this report is to: i) Set timelines leading up to the budget deliberations in December; ii) Have Council review and endorse the Business & Financial Planning Guidelines for the 2017-2021 period, subject to feedback received throughout the summer and at a public information session to be held in July; and iii) Review and approve the Council workplan schedule for the balance of 2016. A significant amount of work on the business and financial plans is done over the summer months and into the Fall. Consideration of these recommendations at this time will allow staff to develop plans that are in alignment with this direction. A report went to the Audit and Finance Committee on June 13, 2016 for review of the Business and Financial Planning Guidelines. The Committee has recommended that they be endorsed. RECOMMENDATIONS: That the following information included in the staff report dated June 20, 2016 entitled “2017-2021 Business Planning and Financial Plan Guidelines” be considered as noted: 1. Business Planning Timelines as outlined in Appendix B be approved; 2. On the recommendation of the Audit and Finance Committee, that the Business and Financial Planning Guidelines as outlined in Appendix C be endorsed; 3. A public Question and Answer session be held in July, 2016; and 4. A public feedback initiative to seek input be launched and the information be brought back to Council for consideration on August 29, 2016. 5. Council Workplan Matrix as outlined in Appendix D be approved; DISCUSSION: On Monday, June 13, 2016, the Audit and Finance Committee discussed the Business and Financial Planning Guidelines, recommending that Council endorse them in principle, then seek public input . This report covers the Guidelines, as well as the broader Business Planning Process for 2017-2021. 2016-2020 Business & Financial Plan 2016 Business Plan Implementation Financial Plan Update & Tax Rates Next Year; Updated Information 2017-2021 Business & Financial Plan Guidelines Enhanced Public Consultation Remainder of 2016 This report has been structured chronologically, to cover the following topics: Dec/15 Jan-May/16 May/16 NOW June through August 2016 Jun-Dec/16 2016-2020 Business & Financial Plan On December 1, 2, and 3, 2015, Council was presented with the proposed Business and Financial Plans for the years 2016-2020 at meetings that were open to the public. The meetings were live-streamed and the video recordings are available on our website. At 6 pm on December 3, 2015, a live-streamed budget question and answer session was held in our Council Chambers. The public was invited to participate, either in-person, via telephone, through email or through social media. The questions asked and the responses given are also available on our website. Following the public input session, Council allowed a further three week period of time seeking additional input. The 2016-2020 Financial Plan Bylaw received final approval on January 26, 2016. 2016 Business Plan Implementation Since that time, staff and Council have been working on the workplan items included in the Business Plan and emerging priorities. Here are some examples:  The Tree Protection and Management Bylaw was adopted and implemented;  Public consultation has been undertaken relating to new community amenity investments (a community centre in the Albion area, for example);  Parks, recreation and cultural infrastructure bundling;  Governance relating to the airport;  Dissolution of the Joint Parks & Leisure Services Agreement;  Temporary homeless shelter and supportive housing;  Council committees review, followed by the formation of new committees; and  A new community-wide Community Amenity Charge Bylaw was implemented. Financial Plan Update & Tax Rates As is our normal practice, the Financial Plan was recently fine-tuned and updated prior to the setting of the 2016 tax rates. The amendment addressed emerging issues approved by Council since the plan was approved. It also included a reduction in the property tax increase for Business and Light Industrial classes. The increase to these classes was reduced to 1.85% from 3.15%, in line with Council’s commitment to support local businesses. (Appendix A) Next Year; Updated Information As we approach the midpoint of 2016, we need to turn our mind to the 2017-2021 Business and Financial Planning timelines (Appendix B). Staff spend much of the summer months and Fall preparing the plans so that Council deliberations can take place in December. While the existing financial plan projects our revenue requirements including tax increases for each year, it is important for Council to consider this direction and make appropriate adjustments. In considering such adjustments, Council should be aware of the following: i) Most collective agreements in our region expired at the end of 2015 and settlement patterns are starting to emerge. Settlement costs are in line with the projections included in our financial plan. This is important to note as a significant portion of our costs are labour related; ii) RCMP wage increases have fallen behind their comparators. This, coupled with the Supreme Court of Canada decision directing the implementation of a new labour regime for RCMP members, will put additional cost pressure on our budget; iii) The recent federal budget includes provisions for grant funding for local governments. Program details and eligibility criteria are expected to be announced in the coming months and our own capital program will be reviewed to align with these programs. In addition, grant programs require contributions from local governments; iv) Significant capital investments by the City, including those for matching grant programs, will require public support. A strategy on gauging this support will be necessary; v) Council has implemented a community-wide amenity program that will assist in funding amenities and this revenue stream as well as the associated projects will need to be incorporated into the plan. 2017-2021 Business & Financial Plan Guidelines The proposed Business and Financial Planning Guidelines for 2017-2021 are attached (Appendix C) and there are a number of advantages for early consideration of these:  provide an open and transparent overview of the underlying assumptions that are proposed for the financial plan;  provide the community with an early indication of forecasted property taxes and fee increases;  inform the community of proposed changes to services, service levels and capital investments;  allow for a lengthy public input period before staff begin preparing a corporate business plan that will address services and Council priorities; and  provide clear guidance to staff in beginning to develop a business plan and financial plan that fits within Council’s endorsed parameters. Enhanced Public Consultation In recent years, we have had a budget question and answer session as part of the December deliberations. In addition to this session, we recommend that a question and answer session be held in July to allow the public to provide early input too. This change aligns with a recommendation from the Open Government Task Force. Remainder of 2016 While planning for the coming years will commence shortly, staff will continue to move forward on the existing workplan items that were endorsed last December as well as the additional priorities directed by Council since that time. The Council Workplan Matrix (Appendix D) highlights some of those items for the remainder of 2016. The schedule will be amended as required in the coming months, in accordance with normal practice. As well, in the Council working session held earlier this year, Council prioritized transportation, housing, economic development and recreation infrastructure as matters that will be incorporated into future workplans. CONCLUSION: A significant amount of work on the business plans is done over the summer months and into the Fall. The recommendations outlined in this report will allow staff to develop plans aligned to this direction. Original signed by “Laura Benson” ________________________________________ _______ Prepared by: Laura Benson, CPA, CMA Manager of Sustainability and Corporate Planning Original signed by “Paul Gill” _______________________________________________ Approved by: Paul Gill, BBA, CPA, CGA General Manager, Corporate and Financial Services Original signed by “E.C. Swabey” _______________________________________________ Concurrence: E.C. Swabey Chief Administrative Officer Attachments A – Property Tax and User Fee Increases B – Timelines for the Business Planning 2017-2021 Process C – Business and Financial Planning Guidelines, 2017-2021 D – Council Workplan Matrix 2016-06-20 Appendix A – Property Tax and User Fee Increases Property Tax Increases 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 -2016 Adopted Budget (2012 Actual) 4.89% 5.17% 4.80% 4.80% 4.80% 2013 -2017 Adopted Budget (2013 Actual) 3.51% 4.05% 4.55% 4.55% 4.55% 2014 -2018 Council Adopted Guidelines 3.30% 3.65% 3.65% 3.85% 3.85% 2014 -2018 Budget Adopted January 2014 3.25% 3.25% 3.25% 3.25% 3.25% 2014 -2018 Adopted Budget (2014 Actual) 2.95% 2.97% 3.25% 3.25% 3.25% 2015 -2019 Adopted Budget (2015 Actual) 2.97% 3.25% 3.25% 3.25% 3.25% 2016 -2020 Adopted Budget (2016 Actual) *3.15% 3.15% 3.15% 3.25% 3.25% 3.25% * In 2016 the Commercial and Business property tax increase was reduced to an increase of 1.85% Actual Proposed Composite Home $400,000 Value 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Property Tax Increases: General Purpose 3.00% 2.25% 1.90% 1.92% 2.10% 1.90% 1.90% 2.00% 2.00% 2.00% Infrastructure Replacement 1.00% 0.50% 0.50% 0.50% 0.50% 0.70% 0.70% 0.70% 0.70% 0.70% Fire Service Improvement 0.89% 0.33% — — — — — — — — Parks & Recreation — 0.13% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Drainage — 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% Total Property Tax Increase 4.89% 3.51% 2.95% 2.97% 3.15% 3.15% 3.15% 3.25% 3.25% 3.25% User Fee Increases Water 9.00% 5.50% 5.50% 5.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Sewer (levy increases plus $35 fixed parcel charge) 4.39% 4.05% 4.07% 4.10% 3.22% 3.24% 3.25% 3.25% 3.27% 3.27% Recycling 6.00% 3.00% 0.00% 0.00% 0.00% 2.75% 2.75% 2.75% 2.75% 2.75% Total Property Taxes and User Fees Increase 5.57% 3.91% 3.46% 3.49% 3.33% 3.41% 3.41% 3.48% 3.48% 3.48% Appendix B – Timelines for the Business Planning 2017-2021 Process Time Period Step in the Process Status Spring 2016 Council to establish priorities Complete June 20, 2016 Business and Financial Planning Guidelines and Business Planning dates introduced In Progress (this report) Early July 2016 Live-streamed Budget Q&A Session Not Started June-July-August Public Consultation Period #1 Begins today; ends Aug 15 Aug 29, 2016 Staff brings back results of public consultation Not Started Sept 6, 2016 Council approves Business and Financial Planning Guidelines, revising if required Not Started Sept-Oct-Nov Staff prepare Business Plan and Financial Plan Not Started Week of Nov.28 Public presentation of Business Plan and Financial Plan to Council Not Started Dec 2016-Jan 2017 Public Consultation Period #2 Council adopts the Financial Plan 2017-2021, revising if required Not Started Throughout 2017 Performance measurement and reporting, including:  Council/public feedback;  Performance scorecards;  Financial statements comparing to financial plan;  Departmental reports and capital project wrap-up reports;  Status report on 2017-2021 commitments in Dec 2017. Not Started Appendix C – Business and Financial Planning Guidelines, 2017-2021 1. Guidelines for Financial Planning: 1.1. General Purposes Property Tax Increase – 1.90% in 2017 and 2018, and 2.0% in 2019, 2020 and 2021. 1.2. Infrastructure Sustainability Property Tax Increase – 0.70% per year. 1.3. Parks, Recreation and Culture Property Tax Increase – 0.25% per year. 1.4. Storm Water Property Tax Increase – 0.30% per year. 1.5. Water Levy Increase – 4.50% per year. 1.6. Sewer Levy Increase – 3.60% per year. 1.7. Recycling Levy Increase – 2.75% per year. 1.8. Growth in Property Tax Revenue Assumption – 2.00% per year. 1.9. Provision for costs associated with growth, subject to available funding. 1.10. Allocation of growth revenue from incentive programs to fund Infrastructure Sustainability. 1.11. The Financial Plan will include a funding strategy to deliver on Council-identified priority community infrastructure. Various funding methods will be considered: debt financing, borrowing from internal reserves, amenity contributions, and other revenue sources. 1.12. Budgets include operating and capital components for a five-year period. 1.13. The Financial Plan must be in accordance with Council’s strategic Financial Sustainability Plan policies approved in October 2004. 1.14. Collective Agreements – the financial plan needs to include sufficient financial capacity to address collective agreement settlements or the emerging patterns. 1.15. Grants – Targeted grant funding sources should be reflected in the financial plan, along with the associated project costs. 1.16. Community Amenity Charges should be forecasted in the financial plan, along with the associated capital project costs. 1.17. Transition costs related to the Parks and Leisure Services Agreement dissolution should be built into in the financial plan. 2. Guidelines for Business Planning: 2.1. Council-raised issues are to be considered in developing workplans, respecting the criteria for establishing priorities and recognizing that capacity is needed for opportunities or issues that might be discovered throughout the year. 2.2. Property tax rates will be reviewed annually to ensure we are competitive with other lower mainland municipalities. 2.3. Utility Charges will be reviewed annually with a view towards using rate stabilization practices to smooth out large fluctuations in rates. 2.4. Public Consultation Plan developed and operationalized. Public consultation to gauge community support for major capital investments merits special consideration. New* New* New* New* Appendix C – Business and Financial Planning Guidelines, 2017-2021 2.5. Evaluation of services to ensure alignment with Council direction. 2.6. Identify and measure outputs/outcomes. Performance measures will be published in the Annual Report and on the website. 2.7. Performance reports are to be presented to Council at open Council meetings, both in relation to Council priorities and departmental commitments. 2.8. Identify key processes to undergo formal process improvement reviews. 2.9. Identify potential new revenue sources (i.e. be creative). Increase revenue from existing sources by about 5.00%. 2.10. Reduction packages should reflect significant changes to an area’s operation. The requirement is less about meeting a specific target reduction, and not about trimming costs around the edges, but rather should result in a fundamental shift in what or how services are delivered. Given the degree of cross-functional projects and service delivery, departments should consider collaborative reduction packages in partnership with other departments. 2.11. Incremental packages must include a business case to support new programs/projects/staff. 2.12. Organizational/structural change – is the current organization adequate to deliver the service? Are there better options? Contract for services, or bring services in-house, where and when it makes sense organizationally and financially. 2.13. 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? 2.14. Vacant position review and management – all positions that become vacant are subject to a detailed review prior to being refilled. 2.15. Contracting/Consulting review – all consulting work should undergo a review at not only budget time, but also when services are being contracted to determine the best way to acquire services. This will involve potentially contracting out where it makes sense and contracting in where there are available staff resources. 2.16. Technology – review business applications and technology tools to identify upgrade or obsolescence issues. Ensure workplans, budgets and Information Services workplans/projects reflect the resources necessary to support the changes if required. 2.17. Workplans will identify short-term, medium and longer-term action items that Council may consider, as we work towards carbon neutrality. Appendix D – Council Workplan Matrix 2016-06-20 (highlights only/subject to change) Item Div Meeting Source Explanation of Item Information to be Covered Commercial and Industrial Property Tax Review CFS Jun-20 Annual Report for discussion Commercial Industrial Implementation -prepare OCP amending Bylaw to designate "Industrial" area at 128/232 Street PWDS Jun-20 2016 Found Milestone Notice of Motion from May 10, 2016 Council Meeting MRRI -Social Service Research Project CDPR Jul-04 Update on Social Service Research Project Joint Leisure Services Agreement CDPR Jul-04 Pitt Meadows Decision Items Housing Action Plan Implementation – Rental Housing Opportunities Report PWDS Jul-04 Business Plan 2016 Commitment A discussion paper identifying a range of opportunities for encouraging/providing rental housing in the City to seek direction from Council on pririties Some examples include supportive housing, assisted living, boarding use. EMS Implementation – Soil Deposit Bylaw Review PWDS Jul-04 Business Plan 2016 Commitment Scoping and process Report to discuss Soil Deposit Bylaw review. Development Information Meeting policy review PWDS Jul-04 Business Plan 2016 Commitment Report discussing the Development Information Policy and identifying options for updating it. Agricultural Plan Implementation – pending Council prioritization PWDS Jul-05 Special 2016 Found Milestone Special Council meeting scheduled for July 5, 2016. Facilitated session to identify priorities for Agricultural Advisory Committee. RCMP Contract Costs CFS Jul-11 Annual Report for discussion Utility Master Plans PWDS Jul-11 Business Plan 2016 Commitment Council Endorsement of Sanitary and Water Master Plans Suburban Residential /Estate Sub Discussion Paper PWDS Jul-11 2016 Found Milestone Report to discuss options for Estate Suburban and Suburban Residential OCP land use designations. Appendix D – Council Workplan Matrix 2016-06-20 (highlights only/subject to change) Item Div Meeting Source Explanation of Item Information to be Covered Wildfire Development Permit Update PWDS Jul-11 Business Plan 2016 Commitment Report providing an update to the Wildfire Development Permit that was adopted in 2015. Community Dialogue on Homelessness CDPR Jul-25 2016 Council Prioritization Draft Terms of Reference for a sub-committee of SPAC to develop a platform for a speakers series and community dialogue on homelessness Mayor's Open Government Task Force (July 25) CDPR Jul-25 2015 Council Prioritization Report on schedule and cost estimates Solid Waste Options PWDS Jul-25 PWDS Discussion on area, levels of service, etc. Traffic Calming PWDS Jul-25 PWDS Update: -River Road -123 (consideration of Traffic calming policy 2017-2021 Business & Financial Plan Guidelines ADMN /CFS Aug-29 Annual Consideration of public input Alouette Heights CDPR Aug-29 2015 Council Prioritization Report on history and operating agreement Housing Action Plan Implementation – infill options report PWDS Aug-29 Business Plan 2016 Commitment Staff report to present a list of options for promoting infill within the Urban Area Boundary. Update on former "Pelton's Land" ALC decisions and OCP policies PWDS Aug-29 2016 Found Milestone Information Report Customer Experience Program CDPR Sep-4 Business Plan 2016 Commitment Update on Customer Service projects and next steps Branding review ADMIN -ED Sep-12 Business Plan 2016 Commitment Consultant to present observations to Council (see also Oct.3 and Oct.17) Appendix D – Council Workplan Matrix 2016-06-20 (highlights only/subject to change) Item Div Meeting Source Explanation of Item Information to be Covered Needle Distribution and Retrieval Program CDPR Sep-12 Business Plan 2016 Commitment Presentation of terms of reference developed in collaboration with Fraser Health Authority. Report on services provided by Purpose Society for Youth and families and information on the City to develop a needle exchange program policy. MRRI -Final Report CDPR Sep-12 2016 Council Prioritization Final report on costs, accomplishments and recommendations Hammond Area Plan -Amending Bylaws PWDS Sep-12 Business Plan 2016 Commitment Presentation of Hammond Area Plan amending Bylaws for 1st and 2nd Reading Home Occupation Bylaw review ADMIN -ED PWDS Sep-19 EDC Task Force, Planning, Bylaws and Licenses Rental Homes Policy CFS Sep-19 Dec.4/15 Council-raised items Policy to determine med/long term goals for both acquisition and ongoing management Ambulance Discussion CFS Sep-19 Other Potential invitation to Linda Lapine, if still needed by Q3 Albion Flats Area Plan PWDS Sep-19 Business Plan 2016 Commitment Present draft land use scenarios for Council consideration. Haney Bypass Improvements PWDS Sep-19 2016 Council Prioritization Review of options, configuration, costs, land implications. Ministry of Transportation presentation. Sport Field Allocation Policy CDPR Sep-26 2016 Found Milestone Amended policy regarding registration information Branding review ADMIN -ED Oct-03 Business Plan 2016 Commitment Consultant to present draft recommendations to Council (see also Sep.12 and Oct.17) DCC Bylaw CFS /PWDS Oct-03 Report and discussion on major amendment Appendix D – Council Workplan Matrix 2016-06-20 (highlights only/subject to change) Item Div Meeting Source Explanation of Item Information to be Covered Development Sign Policy PWDS Oct-03 2016 Found Milestone MOGTF -report to discuss Development Sign Policy City-wide Sign Bylaw update PWDS Oct-03 Status report Branding review ADMIN -ED Oct-17 Business Plan 2016 Commitment Final report (see also Sep.12 and Oct.3) Commercial & Industrial Strategy -Employment lands Update -report on "Bracket" lands adjacent to Kwantlen PWDS Oct-17 2016 Found Milestone Reports assessing the suitability of the Suburban Residential designated lands adjacent to the Kwantlan lands Housing Action Plan -financial incentives to support housing goals PWDS Oct-17 Business Plan 2016 Commitment Prepare a report identifial financial incentives to support Housing Action Plan goals Cultural Plan and Policy CDPR Oct-24 Business Plan 2016 Commitment Report on RFP to update the cultural plan and policy Property Management CFS Oct-24 Options for alternate model Insurance Purchasing CFS Oct-24 Dec.4/15 Council-raised items Council report and MIA presentation EMS Implementation – Update on Environmental Pilot Projects PWDS Oct-24 Business Plan 2016 Commitment To provide an update on Environmental Pilot Projects. Transportation PWDS Oct-24 Business Plan 2016 Commitment Speed limits; bikes on sidewalks Additional Recreation Infrastructure CDPR Oct/Nov 2016 Council Prioritization Community consultation feedback to Council Joint Leisure Services Agreement CDPR Nov-07 2015 Council Prioritization Update on final steps to conclude the agreement Housing Action Plan Implementation – Triplex 4-plex courtyard housing zone PWDS Nov-07 Business Plan 2016 Commitment Discussion Paper April 18/16. OCP, Zoning and DP amendments to be prepared. Appendix D – Council Workplan Matrix 2016-06-20 (highlights only/subject to change) Item Div Meeting Source Explanation of Item Information to be Covered Zoning Bylaw Review PWDS Nov-07 Business Plan 2016 Commitment update on Zoning Bylaw review River Road PWDS Nov-07 Business Plan 2016 Commitment Storm Service Connections Bylaw Final decision on pool renovation vs. new construction CDPR Nov-28 2016 Council Prioritization List recommended capital projects, property tax implications of both options, financing options City Owned Parking Lots CFS Nov-28 Contract for management Asset Management Strategy PWDS Nov-28 Business Plan 2016 Commitment Development of policy and subsequent Strategy Framework for City infrastructure 2017-2021 Business Planning Presentation ADMN /CFS Nov.28 to Dec.2 Week Annual Review of Maple Ridge Dyking Agreement PWDS Dec-05 Business Plan 2016 Commitment Review of existing agreement (1970s) and amendments for consideration. Fraser River Escarpment PWDS Dec-05 Business Plan 2016 Commitment Review of existing studies and current City policies and revise as neccesary Housing Action Plan Implementation – infill options report PWDS Dec-05 Business Plan 2016 Commitment Options for promoting infill within the Urban Area Boundary.