Staff Report – 2016-2020 Five-Year Financial Plan Bylaw No. 1628 and 2016 Tax Rates Bylaw No. 1629

Background

The Community Charter requires councils to adopt a Five-Year Financial Plan (the Plan) each year and, after the adoption of the Plan but before May 15th, to adopt a tax rate bylaw. Bylaws No. 1628 and No. 1629 satisfy these requirements.

Commentary

Each departmental budget has been presented at an open meeting of the relevant committee, which fulfills the statutory requirement for a public financial planning process.

The 2016 budget provides for the maintenance of all service levels.

The capital budget provides for spending of $48,474,600 in 2016, with over 99% funded from non-tax sources such as contributions, grants and reserves. Some of the projects in the capital budget are dependent on grants from senior governments which at this time have not yet been approved and so those projects may have to be carried forward to the 2017 capital budget in whole or in part.

Major components of the capital budget include:

• Road network improvements on Westshore Parkway McCallum Road, Bear Mountain Parkway and Leigh Road ($25.35 million, or 58% of capital budget),
• Bike lanes and multi-use lanes ($1.7 million) and
• Construction of the Centre for Fitness Excellence at City Centre Park ($7.32 million)

Taxation Implications

The Plan will result in a tax increase of 2.9% in 2016, of which 1.9% is for the additional 4 police officers that were committed in 2015. In addition, Council has added two new services in 2016 in the form of the new Langford Heritage Library and the purchase of service at the new YMCA/YWCA aquatic and fitness centre, both to open in May this year. Langford residents will be entitled to a 10% discount on fees at the aquatic/fitness centre. The total impact on the typical home of the 2.9% increase is $32.24

Council also considers the distribution of taxes among property classes with the objective of maintaining a stable and equitable burden. This is accomplished by adjusting the class multiples where differences in market increases/decreases between property classes would distort the distribution. There were minor variations between 2015 and 2016 but not enough to warrant changing the multiples this year. This issue is revisited each year.

City of Langford 2016-2020 Financial Plan Bylaw No. 1628, 2016 gives authority for the City to spend for operating and capital purposes in 2016.

City of Langford Tax Rates Bylaw No. 1629, 2016 gives authority for the City to levy taxes for municipal, regional district and hospital purposes in 2016.

Options

That council:

1. Give City of Langford 2016-2020 Financial Plan Bylaw No. 1628, 2016 three readings, and
2. That there be no change to the class multiples in 2016, and
3. Give City of Langford Tax Rates Bylaw No. 1629, 2016 three readings

Respectfully Submitted,

Submitted by:
Steve Ternent, Director of Finance

Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning

Concurrence:
Bob Beckett, Fire Chief

Concurrence:
Lorne Fletcher, Manager of Community Safety and Municipal Enforcement

Concurrence:
Mike Leskiw, Parks and Recreation Manager

Concurrence:
Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering

Concurrence:
Brent Molnar, Manager of Land Development

Concurrence:
Jim Bowden, Chief Administrative Officer