Overview to Date Staff began work in August Fine-tuning recommendations on 2016 General Fund...

Overview to Date

• Staff began work in August• Fine-tuning recommendations on 2016 General Fund

Operating budget and property tax increase• Completed draft 2016 budget for Solid Waste

Services• Completed review of General Fund capital requests

and considering funding options• Completed 5 year projections for Water Fund• Fine tuning draft 2016 budgets for Sanitary and

Drainage Operating Funds • Completed review of Sanitary and Drainage Fund

capital requests

General Fund Operating Budget – Property Taxes & Solid Waste Fee• In 2015 there was a Property Tax REDUCTION of 2.89% • Due to transferring 6 months’ worth of Solid Waste costs from

property tax levy to solid waste fee• 2015 Solid Waste User Fee was $175 (for 6 month’s worth of

service)

• The final 2015 to 2019 Financial Plan projected a target property tax REDUCTION of .06% for 2016 and a solid waste fee of approximately $360

• At this time, the draft budget reflects a 2016 property tax REDUCTION of 1.6%, but there are some items not funded that need to be reviewed, and one-time requests recommended to be funded from the City’s accumulated surplus

• Draft budget projects a solid waste user fee of $340

2016 Draft General Fund Operating Budget

• The draft budget, which proposes a tax reduction of 1.6%, incorporates the following:– Nondiscretionary contract increases & provision for Firefighter

collective agreement settlement – Funding of $12,500 for Police Services DNA Testing– Anticipated increases in hydro and other utility costs– Increased casual staff hours to meet service demands in

Recreation and Culture, Financial Services, RCMP, Facilities Maintenance and Bylaw Enforcement

– Cost increases for IT hardware and software maintenance contracts

– Increase in annual funding for Tourism in the amount of $20,000

– Net costs associated with new office space on Russell Ave


• The draft budget, which proposes a tax reduction of 1.6%, incorporates the following new full-time staff positions:

– Planning & Development Assistant– Financial Analyst

2016 Draft General Fund Operating Budget – New Revenue Sources

• Projected taxes from new development (new money):– Estimating $187,000 for 2016 based on BCA info to date– $143,000 allocated to operating budget and $44,000 to capital

• Increased budget for Business Licence Revenue

• Increased budget for Pay Parking Revenue

• Increase Secondary Suite Service Fee:– Propose to increase by $10 from $260 to $270 – for capital projects

• Increased Misc Fees & Charges

2016 Draft General Fund Operating Budget – Requests Not Funded or Fully Funded

IT – Business Application Analyst Position (draft FP includes funding in contingency for temporary IT assistance in 2015 and full time staffing starting in 2017/18)

$90,100 .46%

Manager, Economic Development $108,900 .56%

2 Full-time Parks Staff Positions (increase level of service) $148,200 .76%

Parks Contract Maintenance (boulevard trees) $60,000 .31%

Purchasing Officer (total salary $80,000, remainder would have been charged to utility budgets)

$52,200 .27%

Museum Grant Increase $17,200 .09%

Request to Eliminate Pay Parking at Centennial Park (net revenue loss)

$94,000 .48%


One-time Items recommended to be funded from Reserves/Accumulated Surplus:

Hillside Transportation Feasibility Study (carry over from 2015)

$50,000

Contribution to Railway Relocation Study ($17,000 carry over) $75,000

Misc Studies Related to Council Goals $75,000

OCP $40,000

Zoning Bylaw Review $100,000

Temporary Planner (to Oct 2017) $174,000

Planning Summer Student $11,000


One-time Items recommended to be funded from Reserves/Accumulated Surplus:

Temporary Planning & Development Assistant $62,300Contribution to WR/SS Youth Centre (carry over from 2015) $10,000

Tourism - One-Time Projects $20,000

Leased Space (Johnston Rd) Utilities for 2016 $10,000

Parks Contract Maintenance – extra watering of 150 trees planted in 2013 and 2014 (funding for 2016 and 2017)

$27,000

Waterfront Concert Series (cost shared with BIA) $2,000

Temporary Assistance for HR Dept $19,000

Office furniture and computer for new Finance staff $5,000


One-time requests not funded in draft budget:

WR Sea Festival for Operating Budget $15,000WR Sea Festival matching grant for float $12,800

(could apply for grant in aid)

General Fund Asset Improvements(Capital Projects)

Last year’s Financial Plan:• Included $7.5M worth of general fund capital projects in 2016• Included $34M worth over 4 years 2016 to 2019• This year, an additional $5.5M was requested for 2016,

consisting of cost increases for existing projects, moving some projects forward from future years and new projects

• $5.2M more than what was included in the last FP was requested for 2017

• As well, some previously budgeted grant funding has not materialized:• Johnston Road - $216K in 2016, $217K in 2017, $305K in

2018, $405K in 2019 – total of $1,143K• Memorial Park - $350K in 2016, $150K in 2017

• Plus, previously new parkland purchases were 100% funded from DCC’s, and new DCC Bylaw proposes that 50% be funded from DCC’s.

General Fund Capital Projects

Railway Crossing Upgrades• Current FP includes:

– Finlay in 2016– Bay in 2018– Balsam in 2019

• Fed Grant approved to fund 50% ($550K) of Finlay and Bay if completed by Mar 31, 2016, must move Bay forward

• Discussions underway for BNSF to fund 37.5%, leaving $12.5% for City

• Legislation requires all to be upgraded in 6 years• Will add 3 to the Draft FP, for a total of 6 of the 8 crossings


• Johnston Road:– General Fund Cost in last FP was $1.7M phased over 4

years from 2016 to 2019, with $1.143M (2/3) funded from grant (not approved)

– Recommended to move construction forward as follows:• 2016 Design (Landscape Architect) - $100,000• 2017 N Bluff to Russell - $549,000• 2017 Russell to Thrift - $457,000• 2018 Thrift to Roper - $608,000

– Recommended funding source 2017/18 – DCC’s, Gas Tax (maybe) and anticipated CAC’s


Lee – Pacific to Columbia ($85K in 2015, to be carried over)Maple – Pacific to Columbia (cost increase from $85K to $205K)Parker – Pacific to Columbia (move forward from 2017 $85K))Pacific – Maple to Parker (move forward from 2017 $253K)• Requires additional $458K for 2016 – to be funded from

suggested deferrals• Council resolution to consider underground wiring, funded by

local service area • Estimated cost for underground wiring approximately $790,000

per segment


Waterfront Masterplan - $100,000 requested for 2016

Memorial Park• Budget of $1M phased 2015 to 2017, with $500K funded from grant which was

not approved• Recommended to defer until after waterfront masterplan is completed• During interim, staff are considering purchase of a mobile stage• Assume project will be completed in 2017/18 funded by anticipated CAC’s

• Other projects recommended to be deferred 1 to 2 years pending completion of Waterfront Masterplan are Mooring Buoys & Replacement of the Pier Washroom


East Beach Erosion Control:

• Current FP includes– $65K in 2015 to develop concept plan, carry over to 2016– $100K in each of 2016 & 2017 to start implementing– $3M in each of 2017 & 2018 for creation of land and other

improvements, funded mostly by grants and contributions (defer one year?)

– All Abilities Park in 2017 for $300K, funded by contributions (defer one year?)


• In order to plan for completion of Council Goals, the following will be added to the Draft FP:

– Marina Expansion - $425K in 2017, $425K in 2018– Pier Restaurant - $700K in 2017

• Recommended Funding Source – Anticipated CAC’s

• Assume incremental operating costs will be funded by a project partner


Extension of Coldicutt Ravine:

• General Fund cost increase of $2.33M from $1.1M to $3.43M • More funding needed to increase width, add retaining wall

work and add overhead walkway• Budgeted in 2018, requested to bring forward to 2016/17• Some can be funded from DCC’s when new bylaw is approved,

at this time it is recommended the rest be funded from anticipated CAC’s


Marine Drive Parking Lot Rehab - Oxford to Martin:

• Budgeted $375K in 2015, in the General Fund• To be carried over to 2016• Current cost estimate now $1,275K for General Fund portion• Increase of $900K due to change in scope• Need funding source – Anticipated CAC’s?


New Parking Facility on Waterfront:

• Current FP includes:– Land acquisition for $1M in 2015, funded by Land Sale

Reserve, if not complete will be carried over to 2016– $4M for new parking facility in 2017, with $3.5M funded by

debt, and the rest from reserves and anticipated CAC’s– Business case being prepared– Assuming business case supports continuing, staff

suggest long term debt funding source be changed to anticipated CAC’s


New DCC Bylaw Impact:

• Not yet approved, will assume it is• Need to reduce % of new parkland purchases funded from

DCC’s, from 100% to 50%• Recommend to leave two parkland purchases in the FP, with

balance funded from anticipated CAC’s• Greater funding from DCC’s with new bylaw for STP and other

projects, need to reconcile DCC Bylaw with FP


Civic Plaza:

• Currently $350K available in FP in 2015/16• $200K more requested for replacement of City Hall parking lot• Options for funding are under review


City Hall Basement Reno’s:• Currently $332K available in FP• Additional $168K requested, for total of $500K• Recommended funding source – Capital Works Reserve

Seismic Upgrades:• Currently 305K in 2015, and $160K in 2016• Additional requests - $200K in 2017, $200K in 2018 • Recommended funding source – Capital Works Reserve


Centre Street Walkway:• Previously in 2016 for $662K

– $115K Parkland DCC’s, $204K CAC’s, $343K Secondary Suite Service Fee reserve

• Cost increase of $138K back to $800K and move to 2017• Funding sources to reviewed, may need more from CAC’s

• Redevelopment of one more Hillside Walkway at a cost of $800K to be added to the FP, funded from anticipated CAC’s


Centennial Park Sidewalk Extension:

- $100K requested for 2017– recommended funding source is anticipated CAC’s


Parks Masterplan:

• $25,000 budgeted in 2015, to be carried over to 2016• Staff considering request to increase budget and scope of

Parks Masterplan from $25,000 to $75,000• Requested to include Recreation component and Parks

maintenance standards• Funding source to be identified

General Fund Capital Projects Not in Draft FP

Request to equip WRCC with capability to video stream meetings:• Capital cost estimate of $25,000• Annual maintenance costs of $2,400 plus cost of labour to set

up and take down for every meeting• Staff will not be putting in draft FP unless the Finance and

Audit Committee requests it

New requests for misc other facility upgrades under consideration

Utilities

• Sanitary and Drainage Fund budgets still under review, pending final phasing of corresponding projects in General Fund

• At this time, expect annual 1% increase in Sanitary Sewer User Fee to continue:– Residential rate from $256 to $259– Commercial rate from $269 to $272

• At this time, expect annual 5% increase in Drainage User Fee to continue:– Typical strata property from $108 to $113– Typical single family home from $376 to $395

Next Steps

• January 25 – Finance & Audit Committee • Feb 15 – Public Meeting• Feb 22 – Special Council Meeting to consider FP Bylaw for 1st,

2nd and 3rd reading• Feb 29 – Bylaw to be adopted

• Mid April to May 14 – Final FP Amendment (eg. capital carry-overs), Property Tax & Utility Rates Bylaws

WE ARE DONE!

QUESTIONS?

Overview to Date Staff began work in August Fine-tuning recommendations on 2016 General Fund...

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