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Home My WebLink AboutFinancial Overview Report PPT.pdfStrategic Planning 101 City of Maple Ridge Business Planning 2017-2021 November 28, 2016 2011-2015 Financial Plan 2 2017 – 2021 Financial Overview Report Background  Overall Picture of the City’s Financial Plan – Where the money comes from and where it goes – What are the cost drivers? – What do we do to keep the tax burden down? – How do we compare to our self and to other cities?  Open and Transparent Deliberations – Budget direction set in Spring; additional time allowed for public input. 3 Legislative Framework  Section 165 of the Community Charter  Bylaw Format  Balanced Budget – Dollars and Cents – What we would like to have and what we can afford – Business Plans aligned with Council direction  Financial Reporting versus Financial Planning 4 2016 Financial Outlook (p. 24-26)  Positive Variances – Building Permits – Parks & Leisure Services Operations – RCMP Contract – Cost Containment  Negative Variances – Gravel Revenue  Additional Items Approved Throughout the Year – Funded From Surplus – => Expect a General Revenue Fund Annual Surplus 5 Property Tax Increases (Page 7) 6 Actual Proposed Avg Composite Home, $400,000 Value** 2013 2014 2015 2016 2017 2018 2019 2020 2021 Property Tax increases General Purpose 2.25% 1.90% 1.92% 2.10% 1.90% 1.90% 2.00% 2.00% 2.00% Infrastructure Replacement 0.50% 0.50% 0.50% 0.50% 0.70% 0.70% 0.70% 0.70% 0.70% Fire Service Improvement 0.33% --------Parks and 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 3.51% 2.95% 2.97% 3.15% 3.15% 3.15% 3.25% 3.25% 3.25% User Fee Increases Water 5.50% 5.50% 5.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Sewer* 4.05% 4.07% 4.10% 3.21% 3.22% 3.24% 3.25% 3.25% 3.27% Recycling 3.00% 0.00% 0.00% 0.00% 1.67% 1.67% 2.76% 2.75% 2.75% Total Property Tax and User Fee income 3.91% 3.46% 3.49% 3.33% 3.38% 3.38% 3.48% 3.48% 3.49% Historical and Projected Property Tax Increases (p. 8) 7 General Purpose Infrastructure Drainage Parks & Rec. Fire Levy Town Centre Total Increase 2021 2.00% 0.70% 0.30% 0.25% 3.25% 2020 2.00% 0.70% 0.30% 0.25% 3.25% 2019 2.00% 0.70% 0.30% 0.25% 3.25% 2018 1.90% 0.70% 0.30% 0.25% 3.15% 2017 1.90% 0.70% 0.30% 0.25% 3.15% 2016 2.10% 0.50% 0.30% 0.25% 3.15% 2015 1.92% 0.50% 0.30% 0.25% 2.97% 2014 1.90% 0.50% 0.30% 0.25% Incl. in GP 2.95% 2013 2.25% 0.50% 0.30% 0.13% 300,000 3.51% 2012 3.00% 1.00% 600,000 4.88% 2011 3.00% 1.00% 600,000 4.99% 2010 3.00% 1.00% 600,000 5.13% 2009 3.00% 1.00% 600,000 5.18% 2008 3.00% 1.00% 600,000 5.31% 2007 3.75% 600,000 1.00% 6.18% 2006 3.75% 600,000 1.00% 6.37% 2005 3.00% 600,000 1.00% 5.77% 2004 3.00% 1.00% 4.00% 2003 3.00% 1.00% 4.00% Conceptual Overview of Changes to Municipal Revenues & Expenditures (p. 9 -12)  Tax Revenues – Growth → $1,770,000 – Tax Increase → $2,330,000  Other Revenues – Fees & Charges → $ 340,000  Major Expenditures – Labour, excluding Fire → $ 595,000 – Police & Fire → $1,095,000 – Parks & Recreation Master Plan→ $ 185,000 – Infrastructure Replacement→ $ 515,000 – Drainage Improvements → $ 220,000 8 Reconciliation 2017-2021 Financial Plan to Current Financial Plan (p. 13) 9 ($ in thousands) 2017 2018 2019 2020 2021 Adopted Financial Plan 2016-2020 General Revenue Fund (GRF) Surplus 36 46 57 491 n/a Changes Labour 235 331 418 418 Changes to MSP, pension & other benefit rates 90 100 84 75 Inflation 131 131 125 131 Terminating the Joint Leisure Services Agreement (1) 20 (3) 45 Grants-in-Lieu (33) (33) (33) (33) Other Adjustments 29 27 30 38 450 576 621 674 GRF Surplus before Incremental Adjustments 487 622 677 1,165 1,740 Incremental Adjustments (p. 14 -18)  Incrementals Discouraged in Previous Years  Pent Up Demand  2017-2021 Financial Plan tries to strike balance between Need and Affordability • Additional one-time incrementals can be considered as part of year end wrap up. 10 Incremental Adjustments (p. 18) 11 Cont’d Item ($ in thousands) 2017 2018 2019 2020 2021 General Revenue Surplus 487 622 678 1,165 1,740 Proposed Ongoing Incremental Operating Items Research Technician (Formerly Funded by BC Hydro Grant) 2 -(25) (50) (50) (50) Electronic Document Management 3 (40) (80) (80) (80) (80) Emergency Program 6 -(3) (3) (3) (3) Property Tax Front Counter Support 10 (30) (30) (30) (30) (30) Social Planning 11 (200) (100) (100) (100) (100) Succession Planning (Existing funding) 11 200 Museum /Seniors Programming 12 (90) (90) (90) (90) (90) IT Business Solutions 17 (90) (90) (90) (90) (90) After Hours IT Response 18 (80) (80) (80) (80) (80) Sustainability Reserve Contribution 8 (3) (4) (5) (6) (7) Staff Retention and Attraction 9 (50) (100) (150) (150) (150) RCMP Members Accelerated Hiring 1 (300) (200) (100) RCMP Members (Police Reserve Funding) 1 300 200 100 Community Energy Management Program 7 (80) Carbon Rebate (Funding) 7 80 Staff Support for Development Services 14 Building Inspector (100) (100) (100) (100) (100) Building Inspector Supervisor (110) (110) (110) (110) (110) Building Department Plan Checker Supervisor (110) (110) (110) (110) (110) Environmental Technician (93) (93) (93) (93) (93) Manager Of Transportation Engineering (141) (141) (141) (141) (141) Engineering Technologist 1 (96) (96) (96) (96) (96) Building Permit Revenue to fund staffing 650 650 650 650 650 Desks and Computers for 6 new staff (42) Desks and Computers (Building Reserve Funding) 42 Subtotal General Revenue Surplus 104 20 -486 1,060 Incremental Adjustments (p. 18) 12 Item ($ in thousands) 2017 2018 2019 2020 2021 Proposed One Time Operating Items funded by Accumulated Surplus BIA Façade Improvement Program (25) (25) Archives 4 (50) Advisory Committee Training & Networking 5 (5) Emergency Program 6 (10) Fire Training JIBC Rental 15 (175) (175) Cultural Plan 13 (15) Hotel Feasibility and Air BNB Study 19 (30) Tourism Coordinator (Contract) 19 (60) Previously Approved Capital Items funded from Accumulated Surplus Transportation Plan: Cycling Infrastructure (100) (100) (100) (100) Transportation Plan: Sidewalk Infrastructure (400) (400) (400) (400) Transfer From Accumulated Surplus 870 700 500 500 General Revenue Surplus 104 20 -486 1,060 Incremental Adjustments (p. 18) 13 Item ($ in thousands) 2017 2018 2019 2020 2021 Proposed Ongoing Operating Items funded by Water and Sewer Revenue Funds Water Reservoir Maintenance (20) (40) (60) (60) (60) Water Pump Station Maintenance (30) (60) (90) (90) (90) Water Revenue Funding 50 100 150 150 150 Sanitary Sewer Flushing (30) (60) (90) (90) (90) Sewage Pump Station Maintenance (10) (20) (30) (30) (30) 225 Street Sewage Pump Station Maintenance (15) (30) (45) (45) (45) Sewer Revenue Funding 55 110 165 165 165 Major Cost Drivers (p. 19 -21) 2016 2017 Increase RCMP Costs $18,355,000 $19,080,000 $725,000 Infrastructure $ 4,300,000 $ 5,145,000 845,000 Fire Department $10,210,000 $10,630,000 420,000 Parks, Recreation & Culture $ 515,000 $ 700,000 185,000 Drainage $ 775,000 $ 995,000 220,000 Contributions to Reserves 100,000 General Inflation, Including Labour 670,000 14 Cost Reduction/Containment/Revenue Enhancement Initiatives (p. 23 -25)  Real Time Parking Tickets  Customer Service Coordinator for Business Licences  Vacant Position Review  Amenity Charges 15  WorkSafe BC Rebate  Volunteerism  Dissolution of joint PLS Agreement  New Communication Tools  Grants for Community Projects Capital Program (p. 31 -40)  2017-2021 Capital Program builds on the direction of the last few years – $136 million -5 year capital program 16 Capital by Category (p. 32) 17 $ in thousands 2017 2018 2019 2020 2021 Government 800 270 880 290 780 Technology 1,816 1,413 2,457 2,057 638 Protective Fire 420 1,000 180 --Protective Police 30 190 ---Parks 7,320 3,808 1,990 5,455 4,640 Highways 9,639 11,353 8,698 11,719 11,568 Drainage 1,523 1,940 2,620 3,036 2,675 Sewage 1,946 6,002 5,083 1,918 683 Water 9,417 1,855 2,951 2,045 2,545 Grand Total 32,910 27,831 24,859 26,520 23,530 Capital by Funding Source (p. 32) 18 $ in thousands 2017 2018 2019 2020 2021 General Revenue 3,302 2,996 2,812 3,946 2,935 Capital Works Reserve 3,300 150 150 150 150 Development Cost Charges 10,408 7,467 4,979 8,181 6,720 Cemetery Reserve 60 ----Drainage Improvement Levy 994 1,227 1,472 1,731 2,003 Equip Replacement Reserve 2,298 3,921 2,307 1,671 1,603 Fire Dept Capital Reserve 585 ----Gaming 200 200 200 200 200 Gas Tax 351 189 ---Grants, LAS, 3rd Parties 1,806 1,238 1,000 1,015 1,000 Infrastructure Sustainability Reserve 3,637 4,239 4,705 5,155 5,640 Parkland Acquisition Reserve 200 200 200 200 200 Police Services Reserve 49 152 ---Recycling Reserve 320 40 390 60 300 Sewer Capital 1,617 3,934 3,655 1,248 395 Surplus 500 500 500 500 -Translink ---450 650 Water Capital 3,284 1,378 2,488 2,014 1,734 Grand Total 32,910 27,831 24,859 26,520 23,530 Reserves (December 31, 2015) (p. 34) 19 Operating Fund Surplus $ 24.6 M Reserve Funds 36.2 M Reserve Accounts 40.8 M $101.6M Restricted Revenues $ 41.7 M Infrastructure Sustainability Funding (p. 37) 20 $ in thousands 2017 2018 2019 2020 2021 Inflows Property Taxes Prior Year 3,641 3,641 3,641 3,641 3,641 Property Tax Increase 517 1,062 1,635 2,238 2,872 Gaming Funds 550 550 550 550 550 Town Centre Incentive 437 549 549 549 549 Total Inflows 5,146 5,802 6,375 6,978 7,612 Allocations Building Infrastructure Planned 1,090 1,090 1,140 1,215 1,290 Fire Dept -Equipment Replacement 275 325 375 450 525 Highways ISR Capital Planned 2,992 3,479 3,830 4,170 4,540 Drainage ISR Capital Planned 760 875 990 1,100 1,215 Major Equipment/Systems Reserve 28 33 40 43 42 Total Allocations 5,146 5,802 6,375 6,978 7,612 Estimated Ending Balance ----- Average Home (p. 41) 21 Assessed at $400,000 in 2016 Average Home Municipal Levies: General Purpose (Gen. & ISR) $ 1,862.25 $ 1,911.63 $ 1,964.52 $ 2,019.14 $ 2,075.53 Drainage 20.72 26.42 32.30 38.37 44.64 Parks & Recreation 16.33 21.08 25.98 31.04 36.26 Subtotal Property Taxes $ 1,899.30 $ 1,959.13 $ 2,022.80 $ 2,088.55 $ 2,156.43 User Fees Recycling (fixed rate) $ 71.37 $ 72.56 $ 74.56 $ 76.61 $ 78.72 Water (fixed rate) 548.05 572.70 598.45 625.40 653.55 Sewer (fixed rate) 343.10 354.20 365.70 377.60 389.95 Total Property Taxes and User Fees* $ 2,861.82 $ 2,958.59 $ 3,061.51 $ 3,168.16 $ 3,278.65 * Does not include collections for others (School, BCAA, GVTA, GVRD, MFA) Average Home Municipal Levies Increases: General Purpose 1.90% 1.90% 2.00% 2.00% 2.00% Infrastructure Replacement 0.70% 0.70% 0.70% 0.70% 0.70% Parks & Recreation 0.25% 0.25% 0.25% 0.25% 0.25% Drainage 0.30% 0.30% 0.30% 0.30% 0.30% Total Property Tax Increase % 3.15% 3.15% 3.25% 3.25% 3.25% Recycling Increase % 1.67% 1.67% 2.76% 2.75% 2.75% Water Increase % 4.50% 4.50% 4.50% 4.50% 4.50% Sewer Increase % 3.22% 3.24% 3.25% 3.25% 3.27% Total Property Taxes and User Fees Increase 3.38% 3.38% 3.48% 3.48% 3.49% 2016 Residential Tax Rates Survey (p. 42) 22 Municipality Average Assessed Value* Municipal Taxes Rank (lowest to highest) Total Utilities Municipal Taxes & Utilities Rank (lowest to highest) Notes Pitt Meadows 509,558 1,931 2 1,020 2,951 1 Surrey 733,407 2,107 4 979 3,086 2 (6) Langley-Township 596,845 1,929 1 1,184 3,114 3 Mission 414,523 1,980 3 1,167 3,147 4 (3) Port Coquitlam 650,270 2,253 6 915 3,168 5 Maple Ridge 503,865 2,205 5 970 3,175 6 (8) Delta 703,975 2,400 8 1,000 3,400 7 (2) Richmond 1,160,068 2,383 7 1,135 3,517 8 (5,6) Burnaby 1,216,329 2,447 9 1,109 3,556 9 (1) Coquitlam 879,312 2,460 10 1,165 3,625 10 North Vancouver-City 1,140,767 2,674 11 1,011 3,684 11 (4) Vancouver 1,812,041 2,830 13 1,146 3,976 12 (7) Port Moody 938,092 3,015 15 1,037 4,052 13 (1) North Vancouver-District 1,281,302 2,708 12 1,542 4,250 14 New Westminster 829,483 2,835 14 1,521 4,356 15 (1) West Vancouver 2,758,473 4,071 16 1,584 5,655 16 (5,6) Average 1,008,019 2,514 1,155 3,669 Median 854,398 2,423 1,122 3,536 Highest 2,758,473 4,071 1,584 5,655 Lowest 414,523 1,929 915 2,951 Notes: Values are rounded. *Average Assessed Value determined by using BC Assessment’s 2016 Revised Roll Totals, Property Class Residential Single Family, divided by number of occurrences. Value has not been adjusted for new construction or supplementary changes. -1 Water, Sewer, Garbage/Recycling Rates receive 5% discount for on time/early payment. -2 Municipal taxes are averaged. -3 Drainage Levy Rate/Amount excluded from analysis. According to Mission staff, only approximately 25 homes are charged this levy -not representative of an average home in Mission. -4 Water and Sewer Rates reflect a 5% discount for on time/early payment. -5 Water, Sewer, Garbage/Recycling Rates receive 10% discount for on time/early payment. -6 Sewer and Water are metered and are therefore projected amounts. -7 Land Assessment Averaging. -8 Utility rates include Water, Sewer and Recycling. Business Class, Residential Class Tax Multiple (p. 43) 23 Year Business Residential Multiple 2012 11.7510 4.0888 2.87 2013 12.2307 4.2833 2.86 2014 12.7314 4.4625 2.85 2015 12.3038 4.4713 2.75 2016 11.8801 4.3761 2.71 Funding Strategy for Parks, Recreation & Culture Community Investments (p. 38)  Synthetic Play Fields – $2 million in 2016 budget for Merkley Park – $3.5 million in 2017 budget for Albion Gravel Field Conversion – $500,000 Grant has been approved  Leisure Centre Life Cycle Repairs – Part of Downtown Civic Project; could be funded through Infrastructure /Capital Works Reserve 24 Funding Strategy for Parks, Recreation & Culture Community Investments (p. 38)  Financial Strategy for additional Parks & Recreation Investments – Projects prioritized and phased in – Strategic use of long term debt with electoral approval – Retirement of existing debt and phased tax increases to assist in servicing debt and covering operating costs – Grant Funding and Amenity Collections to also deal with funding 25 Recommendations for 2017 -2021 Financial Plan (p. 50)  Staff Recommendations 1 – 13 26 #1– Tax Increases Year Annual Increase 2017-2021 2017: 1.9% 2018: 1.9% 2019: 2.0% 2020: 2.0% 2021: 2.0% 27 #2– Infrastructure Sustainability Year Annual Increase 2017-2021 2017: 0.70% 2018: 0.70% 2019: 0.70% 2020: 0.70% 2021: 0.70% 28 #3 – Parks, Recreation & Culture Levy Year Annual Increase 2017-2021 0.25% 29 #4 – Storm (Drainage) Levy Year Annual Increase 2017-2021 0.30% 30 #5 & #6 – Water & Sewer Rates Utility Annual Change 2017-2021 Water 4.50% Sewer 3.60% 31 #7 – Recycling Rates Service Increase Depot & Blue Box Charges 2017: 1.67% 2018: 1.67% 2019: 2.75% 2020: 2.75% 2021: 2.75% 32 #8 – Growth in Tax Revenue Year Annual Increase 2017-2021 2.00% per year  Overall, for all property classes combined 33 #9 Incremental Adjustments (p. 18) 34 Cont’d Item ($ in thousands) 2017 2018 2019 2020 2021 General Revenue Surplus 487 622 678 1,165 1,740 Proposed Ongoing Incremental Operating Items Research Technician (Formerly Funded by BC Hydro Grant) 2 -(25) (50) (50) (50) Electronic Document Management 3 (40) (80) (80) (80) (80) Emergency Program 6 -(3) (3) (3) (3) Property Tax Front Counter Support 10 (30) (30) (30) (30) (30) Social Planning 11 (200) (100) (100) (100) (100) Succession Planning (Existing funding) 11 200 Museum /Seniors Programming 12 (90) (90) (90) (90) (90) IT Business Solutions 17 (90) (90) (90) (90) (90) After Hours IT Response 18 (80) (80) (80) (80) (80) Sustainability Reserve Contribution 8 (3) (4) (5) (6) (7) Staff Retention and Attraction 9 (50) (100) (150) (150) (150) RCMP Members Accelerated Hiring 1 (300) (200) (100) RCMP Members (Police Reserve Funding) 1 300 200 100 Community Energy Management Program 7 (80) Carbon Rebate (Funding) 7 80 Staff Support for Development Services 14 Building Inspector (100) (100) (100) (100) (100) Building Inspector Supervisor (110) (110) (110) (110) (110) Building Department Plan Checker Supervisor (110) (110) (110) (110) (110) Environmental Technician (93) (93) (93) (93) (93) Manager Of Transportation Engineering (141) (141) (141) (141) (141) Engineering Technologist 1 (96) (96) (96) (96) (96) Building Permit Revenue to fund staffing 650 650 650 650 650 Desks and Computers for 6 new staff (42) Desks and Computers (Building Reserve Funding) 42 Subtotal General Revenue Surplus 104 20 -486 1,060 #9 Incremental Adjustments (p. 18) 35 Item ($ in thousands) 2017 2018 2019 2020 2021 Proposed One Time Operating Items funded by Accumulated Surplus BIA Façade Improvement Program (25) (25) Archives 4 (50) Advisory Committee Training & Networking 5 (5) Emergency Program 6 (10) Fire Training JIBC Rental 15 (175) (175) Cultural Plan 13 (15) Hotel Feasibility and Air BNB Study 19 (30) Tourism Coordinator (Contract) 19 (60) Previously Approved Capital Items funded from Accumulated Surplus Transportation Plan: Cycling Infrastructure (100) (100) (100) (100) Transportation Plan: Sidewalk Infrastructure (400) (400) (400) (400) Transfer From Accumulated Surplus 870 700 500 500 General Revenue Surplus 104 20 -486 1,060 #10 – Growth Packages (p. 12) 36 Item ($ in thousands) 2017 2018 2019 2020 2021 General Revenue Fund Fire Dept. Equipment Mtce. & Capital 50 50 50 50 50 Operations Department 65 65 65 65 65 Parks Maintenance 40 65 65 65 65 Software Maintenance 30 30 30 30 30 Public Works & Development (PWDS) 65 65 65 65 65 Corporate & Financial Services (CFS) 65 65 65 65 65 Parks, Recreation & Culture (PRC) 65 65 65 65 65 General Revenue Total 380 405 405 405 405 Water Revenue Fund -Maintenance 15 15 15 15 15 Sewer Revenue Fund -Maintenance 10 10 10 10 10 #11 Capital Program (p. 32) $ in thousands 2017 2018 2019 2020 2021 Government 800 270 880 290 780 Technology 1,816 1,413 2,457 2,057 638 Protective Fire 420 1,000 180 --Protective Police 30 190 ---Parks 7,320 3,808 1,990 5,455 4,640 Highways 9,639 11,353 8,698 11,719 11,568 Drainage 1,523 1,940 2,620 3,036 2,675 Sewage 1,946 6,002 5,083 1,918 683 Water 9,417 1,855 2,951 2,045 2,545 Grand Total 32,910 27,831 24,859 26,520 23,530 37 #12 – Cost & Revenue Adjustments (p. 13)  Adjustments on Page 13 of the Financial Overview Report that reconciles the 2016-2020 Financial Plan with the 2017-2021 Financial Plan 38 #13 – Start Process for Recreation Investments (p. 37-38)  That Council endorse the funding strategy discussed on Page 38 of the Financial Overview report and that staff present this strategy to the public, as part of the public input process that is taking place on Community Investments. 39 Summary of 2017 – 2021 Financial Plan  The proposed Financial Plan meets the direction provided to staff by Council earlier this year  Community priorities have been addressed, respecting our financial capacities  Recommended tax increase is amongst the lowest it has been in years. 40 Recommendation  That staff be directed to bring forward a Financial Plan Bylaw including the recommendations outlined in the Financial Overview Report 41 Thank You Paul Gill Direct line: 604-467-7398 E-Mail: pgill@mapleridge.ca 42 Financial Plan 2017-2021  Public Input: Wednesday, November 30 6:00 – 7:00 pm – Watch live at www.mapleridge.ca – Submit questions via the live presentation viewer – Facebook or Twitter (yourmapleridge) – email: Budget@mapleridge.ca – Telephone: 604-467-7484 43