Budget Deliberations

Budget Deliberations were successfully concluded on January 23, 2019. Council reviewed and deliberated on department operating and capital budgets and decision packages.

A January 25th press release announced Council concluded budget deliberations with a 5.58 percent increase or $170 for the average single family home ($98 for a  multi-family home). 

The 5.58 percent increase is broken down as follows:

Key Budget Drivers

Amount

Percentage of Total Increase

Uncontrollable Costs - Contracted Services & Provincial Legislation

  • Metro Vancouver water purchases and sewage treatment costs. This is driven by increased water consumption costs and capital reserve savings to reduce future impact of debt servicing costs on rate payers - $45
  • Organics processing fees due to increased regulations and reduced competition in the market- $21
  • Provincial Employer Health Tax - $13
  • RCMP Police Services to maintain services -$12
  • FVRL Library Services to maintain services - $3

$94

3.08%

City Department Services

  • Taxation Revenue from new development - ($64)
  • City Departments - $59
  • Utility system maintenance - $7

$2

0.07%

Asset Replacement (Savings)

  • Saving for future infrastructure replacement (planned asset management)

$45

1.48%

Additional Items

  • Addition of two Fire Service Technicians to address safety
$290.95%

Total

$170

5.58%

55 percent of the increase is outside of the City’s control and attributed primarily to Metro Vancouver and Provincial Employer Health Tax increases.

Highlights from the 2019 Financial Plan Workshop

On November 27th, 2018, the City's Director of Finance provided a presentation to Council and residents on the 2019 Financial Plan. The presentation can be viewed here

Operating Budget Key Points

  1.  Taxes are favourable compared to other municipalities in the region – Lowest single family.
  2.  City departments have undertaken a zero based budget approach and incorporated expense reductions and/or revenue enhancements to achieve the 2019 results.
  3.  Asset management plans and condition assessments are key to establishing adequate reserve funding levels.
  4.  Snow and ice surface maintenance levels need to be monitored in 2019 to better assess cost impacts & service levels.
  5.  Need to plan for declining development processing revenues.
  6.  Taxation revenue from new development (growth) is substantially lower in 2019 creating increased pressure to taxation.
  7.  A proposed 5.75%  tax and utilities increase is needed to maintain current service levels(final rate set at 5.58% including addition of two Fire Safety Technicians after budget deliberations completed in January 2019).
  8.  The total proposed tax and utilities increase of 5.75% equates to about $175 for the average single family home (final rate set at 5.58% and $170 including addition of two Fire Safety Technicians after budget deliberations completed in January 2019) .

Capital Budget Key Points

  1. The Building Replacement Asset levy is important to continue.
  2. Complete asset condition assessments.
  3. Building reserves:
    • Reduces long-term costs,
    • Allows for proper asset management and
    • Ensure sustainable City services.
  4. Leverage land whenever possible and avoid selling.
  5. Seek opportunities to purchase land to provide enhanced service opportunities.

2019 Proposed Business Plans & Budget

Each fall the City prepares business plans and budgets for the following year.  Meetings are open to the public and will be conducted in Council in Committee format with a question and comment period provided at the end of meeting. See the full Corporate Business Plan, including each department's business plans.  Presentations of the departmental sections of the 2019 Corporate Business Plan were held on December 10th and 12th, 2018. See below for individual department plans.

Staff presented Council with an overview of their area, including: key services; staffing complement; 2018 achievements; deferred projects; 2019 key challenges, 2019 key initiatives; and proposed operating and capital budgets. Staff also introduced any decision packages related to recommended service level changes.

A presentation of the Utilities Budget was also made to Council and is summarized in the Corporate Business Plan.

Business Plans by Department

For more information, contact the City's Finance Department at 604.465.2418.

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