Financial Plan for 2020-2024 Bylaw

CITY OF LANGFORD
BYLAW NO. 1894
A BYLAW TO ADOPT A FINANCIAL PLAN FOR 2020 - 2024
WHEREAS under the Community Charter the municipality must have a financial plan adopted by bylaw before
the annual property tax bylaw is adopted;
AND WHEREAS through a public process the financial plan has been presented and the public has had an
opportunity to comment;
AND WHEREAS Council deems this to be a process of public consultation as required by the Community Charter,
AND WHEREAS Ministerial Order No. M083 under the Emergency Program Act permits the Council of the City of
Langford to adopt a bylaw on the same day that it receives third reading.
NOW THEREFORE the Council of the City of Langford, in open meeting assembled, enacts as follows:
1.
Schedule "A"attached hereto and forming part of this bylaw comprises the Cityof Langford Consolidated
Five Year Financial Plan for 2020 - 2024
2.
Schedule ''B" attached hereto and forming part of this bylaw comprises the City of Langford Revenue
and Property Tax Policy Disclosure.
3.
This bylaw may be cited for all purposes as ''City of Langford 2020-2024 Financial Plan Bylaw No. 1894,
2020".
READ the FIRST, SECOND and THIRD time and ADOPTED the
of May, 2020
MAYO
(Certifie,^
CORPORATE OFFICER

-
L
REVENUES;
External Revenues
i
Development Fees
Development Cost Charges
Developer Contributions
OtherCapital Contributions
Bylaw No. 1894
Consolidated Financial Plan 2020-2024
2020
2021
2022
8,605412
$
1,843,500
2,105,000
$
50,000
5,375,000
$
400,000
2023
1,175,000
$
850,000
Bylaw No. 1894
Page 2 of 4
Schedule "A"
2024
1,175,000
1,150,000
Development Fees Total
10,448,612
2,155,000
5,775,000
2,025,000
2,325,000
.Municipal Property Taxes
33,291,048
36,729,863
39,199,070
42,292,931
44,970,200
Parcel Taxes
1,962,500
2,021,500
2,071,000
2,042,300
1,990,300
!
Fees and Charges
9'638,800
9,729,805
9,349,526
8,711,570
8,783,646
i
interest
438,000
448,000
459,000
470,000
481,000
Grants From Other Governments
23,900,845
3,154,754
3,143,211
3,206,630
3,263,055
Other Sources
7,497,900
2,895,022
2,226,320
2,335,562
2,558,485 :
Total External Revenues
1
87,177,705
57,133,944
62,223,127
61,083,993
64,371,686
EXPENDITURES:
'External Expenditures
Operating Expenditures
46,941,433
48,155,481
49,386,786
51,735,635
53,530,593
Interest Payments on Debt
i
766,000
977,569
1,100,680
1,118,620
1,104,761
Capital Expenditures
53,837,350
15,378,822
14,240,830
8,389,400
7,047,000
Total External Expenditures
101,544,783
64,511,872
64,728,296
61,243,655
61,682,354
CHANGE IN NET FINANCIAL POSITION
(14,367,078)
(7,377,928)
(2,505,169)
(159,662)
2,689,332
OTHER REVENUES:
Borrowing Proceeds
!
3,000,000
9,000,000
5,000,000
3,000,000
3,000,000
OTHER EXPENDITURES:
Principal Payments on Debt
1,471,500
4,246,400 )
5,141,400
5,740,500
6,348,100
TOTAL REVENUES LESS EXPENDITURES
-$
12,838,578
-$
2,624,328
2,646,569
-$
2,900,162
-$
658,768 '
INTERNAL TRANSFERS:
|
Transfer from Reserve Funds
|
Affordable Housing
|
9,100
9,300
9,500
9,700
9,900
Capital Works &Equipment
j $
1,490,500
$
1,850,000
$
1,750,000
$
2,100,000
$
2,100,000
Equipment Replacement
|
611,500
1,226,000
5r 000 '
2,192,000
547,000
Parks & Open Space
-
800,000 5
-
i
i
Park Improvement
-
_
Sidewalk Capital
48,000
-
!
i
Police Building Capital
-
-
72,400
-
L
General Amenity
7,916,500
2,241,500
1,336,700
1,132,700
888,400
r"
Transferfrom Reserve Fund Total
10,075,600
6,126,800 1
3,611,200
5,506,800
3,545,300
-Less: Transfer to Reserve and Capital Funds
1
i
1
i
Reserves:
Si
Police Building Capital
1
20,000
30,000 j
40,000
50,000
60,000
1
!
Capital Works &Equipment
|
1,465,600
1.165,600 i
1,305,000
1,405,000
1,405,000
Equipment Replacement
|
769,000 ;
900,000 :
1,000,000
900,000
1,000,000
1
j
Parking Reserve
i
348,272
147,531
17,038
I
1
Infrastructure Sustainability
!
1
^General Capital Fund
i
118,000
118,000
118,000
118,000
118,000
2,372,600
2,561,872
2,610,531
2,490,038
2,583,000
Transfers from(to) Surplus
s
5,490,978
550,000
660,000
910,000
750,000
Transfers from(to) Reserve Accounts
(355,400)
(1,490,600)^
985,900
(1,026,600)
(1,053,532);
TOTAL INTERNAL TRANSFERS
$
12,838,578
$
2,624,328
$
2,646,569
$
2,900,162
$
658,768 1 1

REVENUE DISCLOSURE
Revenue Proportions
Bylaw No. 1894
Revenue and Property Tax Policy Disclosure
Bylaw No. 1894
Page 3 of 4
Schedule "B"
i-
2020
2021
2022
2023
2024
($'000s)
%
($'000s)
%
($'000s)
%
($'000s)
%
($'000s)
%
1
Property Taxes
33,291
37%''
36,730
56%
39,199
58%
42,293
64%
44,970
67%,|
Parcel Charges
1,963
2%''
2,022
3%"^
2,071
3%'^
2,042
3%''
1,990
3%^
Fees
9,639
11%"
9,730
15%
9,350
14%''
8,712
14%*^
8,784
13%s
Other Sources
42,285
47%''
8,654
13%''
11,604
17%
8,036 '
14%
8,628
13%
Proceeds From
r
r
r
r
Borrowing
3,000
3%
9,000
14%
5,000
7%
3,000
5%
3,000
4%
90,178
100%
66,136
101%
67,224
99%
64,083
100%
67,372
100%
Other Sourcesincludes grantsfrom othergovernments and agencies, development contributions to capital, interest and penalties and
miscellaneous sales of services.
Objectives and Policies
Property tax revenue is the City's primary revenue source, and one which is heavily relianton the
residential class. Diversification of the tax base and generation of non-tax revenue are ongoing
objectives. Except in extraordinary circumstances, tax increases are kept to cost of living or less.
Parcel Charges are comprised of local area service debt servicing costs for roads.
Fees &Charges are a tool used for cost recovery. Various fees are reviewed every 1-5 years to
ensure that they are adequate to recover costs of providing specific services.
Other Sources will vary greatly from year to year as it includes such items as:
•
Development cost charges used to fund DCC capital projects,
•
Contributions from others for capital,
•
Interest earned on funds invested in accordance with the City's investment policy,
•
Grants, which are sought from other governments and government agencies, often to be
leveraged with City funds,
•
Casino revenue sharing income.
Proceeds from Borrowing - Debt is used where it makes sense such as for urgent projects or to
leverage grants where internal funding is not available. Caution is necessary when considering
debt as it commits future cash flows to debt payments, restricting the abilityto use those funds to
provide other services. The source of the debt payments needs to be considered as does the
justification for advancing the project

Bylaw No. 1894
Page 4 of 4
Schedule "B" Continued
Revenue and Property Tax Disclosure
PROPERTY TAX DISCLOSURE
Property Tax Revenue Distribution
The table below presents tax revenue and tax rates based on the 2020 Revised Assessment Roll:
Property Tax Distribution
Net Taxable Assessed
Property Class
Taxation Revenue
1
Value
Tax Rate
Multiple
($'000s)
%
($'000s)
%
($/1000) (Rate/Res. Rate)
1. Residential
21,710 =
66.4%
9,193,498
84.62%
2.3615
1.00
2. Utility
151
0.5%
9,109
0.08%
16.5305
7.00
3. Supporti\^ Housing
i
0.0%
i
0.00%
2.3615
1.00
4. Heavy Industry
0.0%
-
0.00%
7.5804
3.21
5. Light Industry
316
1.0%
43,104
0.40%
7.3207
3.10
6. Business/Other
r
10,417
''31.7%
1,575,432
14.50%
6.6122 ^
2.80
1
7. Managed Forest
[
0.0%
207
0.00%
2.3615
1.00
8. Rec./Non-Profit
!
125
0.4%
43,865
0.40%
2.8456
1.20
9. Farm
-
0.0%
112
0.00%
j
2.3615
1.00
:
32,719
10,865,327
L,,^
I
Objectives and Policies
Council sets tax rates to maintain tax stability between property classes. Property class multiples are
reviewed periodically to ensure thatthe burden oftaxamong property classes is not distorted by differing
marketvalue changes between classes. In 2017 Council embarked on a 10-year program to reduce the
burden of business properties by reducing the multiple by 0.05 each year so that by 2026 the business
multiple will be 2.5.
Permissive Tax Exemptions
Policy with respect to permissive tax exemptions under section 224 of"the Community Charter is that
exemption will be considered where the organization has demonstrated proof of community access to
citizens of Langford at a nominal charge and community benefit in the previous year.
Council supports the establishment of assisted living seniors' housing in Langford and has granted 10-
year exemptions to three such developments.
Council has established a revitalization tax exemption program under section 226 of the
Community Charterwh\ch grants a five-year or 10-year exemption for eligible buildings. An
exemption certificate was issued for one property in 2011 for which the exemption expires in 2021