DocumentsBylawApr 18, 2016Pages 67–70
Bylaw No. 1628 – City of Langford 2016-2020 Financial Plan Bylaw No. 1628, 2016
Financial Plan Bylaw No.1628 providing authority for City operating and capital expenditures for 2016 (2016–2020 five-year plan).
Key facts
- Bylaw No.: 1628 – 2016-2020 Five-Year Financial Plan
- Gives authority to spend for operating and capital purposes in 2016
- Tax implications outlined in corresponding staff report: 2016 tax increase 2.9% and typical home impact $32.24
Bylaw No. 1628 – City of Langford 2016-2020 Financial Plan Bylaw No. 1628, 2016
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,
NOW THEREFORE the Council of the City of Langford, in open meeting assembled, enacts as follows:
- Schedule “A” attached hereto and forming part of this bylaw comprises the City of Langford Consolidated Five Year Financial Plan for 2016 – 2020
- Schedule “B” attached hereto and forming part of this bylaw comprises the City of Langford Revenue and Property Tax Policy Disclosure.
- This bylaw may be cited for all purposes as “City of Langford 2016-2020 Financial Plan Bylaw No. 1628, 2016”.
READ A FIRST TIME this day of , 2016.
READ A SECOND TIME this day of , 2016.
READ A THIRD TIME this day of , 2016.
ADOPTED this day of , 2016.
MAYOR
(Certified Correct)
CORPORATE OFFICER
Schedule "A" — Consolidated Financial Plan 2016–2020
| Item | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| REVENUES: | |||||
| External Revenues | |||||
| Development Cost Charges | 3,692,400 | 1,667,500 | 1,980,000 | 1,207,500 | 1,437,500 |
| Developer Contributions | 7,790,700 | 1,699,000 | - | - | - |
| Other Capital Contributions | 2,819,500 | - | - | - | - |
| Development Fees Total | 14,302,600 | 3,366,500 | 1,980,000 | 1,207,500 | 1,437,500 |
| Municipal Property Taxes | 25,199,900 | 26,836,470 | 28,685,142 | 30,258,857 | 32,160,962 |
| Parcel Taxes | 1,606,400 | 1,658,900 | 1,624,300 | 1,683,900 | 1,732,900 |
| Fees and Charges | 6,425,000 | 6,624,100 | 6,863,100 | 7,101,500 | 7,265,774 |
| Interest | 353,000 | 360,000 | 371,000 | 378,000 | 384,000 |
| Grants From Other Governments | 20,202,300 | 5,219,000 | 1,603,100 | 1,665,700 | 1,667,100 |
| Other Sources | 1,713,400 | 2,525,700 | 2,151,000 | 2,061,400 | 2,911,800 |
| Total External Revenues | 69,802,600 | 46,590,670 | 43,277,642 | 44,356,857 | 47,560,036 |
| EXPENDITURES: | |||||
| External Expenditures | |||||
| Operating Expenditures | 31,677,900 | 32,523,070 | 33,903,242 | 35,103,457 | 36,570,836 |
| Interest Payments on Debt | 869,300 | 1,144,100 | 1,066,400 | 1,096,200 | 1,115,800 |
| Capital Expenditures | 48,474,600 | 12,705,600 | 6,290,900 | 4,985,900 | 5,865,900 |
| Total External Expenditures | 81,021,800 | 46,372,770 | 41,260,542 | 41,185,557 | 43,552,536 |
| CHANGE IN NET FINANCIAL POSITION | (11,219,200) | 217,900 | 2,017,100 | 3,171,300 | 4,007,500 |
OTHER REVENUES:
- Borrowing Proceeds: 7,320,100 | 1,550,000 | 500,000 | 500,000 | 508,400
OTHER EXPENDITURES:
- Principal Payments on Debt: 2,399,100 | 2,826,800 | 2,241,800 | 1,650,600 | 1,681,500
TOTAL REVENUES LESS EXPENDITURES 6,298,200 -$ 1,058,900 -$ 275,300 $ 2,020,700 $ 2,834,400 $
INTERNAL TRANSFERS:
| Item | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Transfer from Reserve Funds: | |||||
| Affordable Housing | 17,800 | 18,200 | 18,600 | 19,000 | 19,400 |
| Capital Works & Equipment | 2,146,700 | 1,553,400 | 2,102,500 | 1,975,000 | 1,400,000 |
| Equipment Replacement | 937,300 | 145,000 | 250,000 | - | 100,000 |
| Parks & Open Space | 1,200,000 | 700,000 | - | - | - |
| Park Improvement | - | - | - | - | 150,000 |
| Sidewalk Capital | 20,000 | 90,000 | - | - | - |
| Police Building Capital | 8,400 | 8,400 | 8,400 | 8,400 | - |
| General Amenity | 2,020,800 | 896,200 | 821,600 | 697,000 | 672,400 |
| Transfer from Reserve Fund Total | 6,351,000 | 3,411,200 | 3,201,100 | 2,699,400 | 2,341,800 |
| Less: Transfer to Reserve and Capital Funds | |||||
| Police Building Capital (reserve) | 17,400 | 26,300 | 22,400 | 18,500 | 14,600 |
| Capital Works & Equipment (reserve) | 1,143,600 | 1,215,600 | 1,165,600 | 1,455,000 | 2,305,000 |
| Equipment Replacement (reserve) | 600,000 | 650,000 | 650,000 | 700,000 | 800,000 |
| Infrastructure Sustainability (reserve) | - | 125,000 | 828,000 | 1,575,000 | 1,835,000 |
| General Amenity (reserve) | - | - | - | - | - |
| General Capital Fund | 125,000 | 125,000 | 125,000 | 125,000 | 125,000 |
| Total Reserves / Transfer to Reserve and Capital Funds | 1,886,000 | 2,141,900 | 2,791,000 | 3,873,500 | 5,079,600 |
| Transfers from(to) Surplus | 550,000 | 200,000 | 200,000 | 200,000 | 200,000 |
| Transfers from(to) Reserve Accounts | 1,283,200 | (410,400) | (885,400) | (1,046,600) | (296,600) |
| TOTAL INTERNAL TRANSFERS | 6,298,200 $ | 1,058,900 $ | 275,300 -$ | 2,020,700 -$ | 2,834,400 -$ |
Schedule "A"
Bylaw No. 1628
Consolidated Financial Plan 2016-2020
Schedule "B" — Revenue and Property Tax Policy Disclosure
REVENUE DISCLOSURE
Revenue Proportions
| Item | 2016 ($'000s) | % | 2017 ($'000s) | % | 2018 ($'000s) | % | 2019 ($'000s) | % | 2020 ($'000s) | % |
|---|---|---|---|---|---|---|---|---|---|---|
| Property Taxes | 25,200 | 33% | 26,836 | 56% | 28,685 | 65% | 30,259 | 66% | 32,161 | 67% |
| Parcel Charges | 1,606 | 2% | 1,659 | 3% | 1,624 | 4% | 1,684 | 4% | 1,733 | 4% |
| Fees | 6,425 | 8% | 6,624 | 14% | 6,863 | 16% | 7,102 | 16% | 7,266 | 15% |
| Other Sources | 36,571 | 48% | 11,472 | 24% | 6,105 | 14% | 5,312 | 13% | 6,400 | 13% |
| Proceeds From Borrowing | 7,320 | 9% | 1,550 | 3% | 500 | 1% | 500 | 1% | 508 | 1% |
| Total | 77,122 | 100% | 48,141 | 100% | 43,777 | 100% | 44,857 | 100% | 48,068 | 100% |
Other Sources includes grants from other governments 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 reliant on 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 ability to 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.
Schedule "B" Continued — Property Tax Disclosure
PROPERTY TAX DISCLOSURE
Property Tax Revenue Distribution
The table below presents tax revenue and tax rates based on the 2016 Revised Assessment Roll:
| Property Class | Taxation Revenue ($'000s) | % | Net Taxable Assessed Value ($'000s) | % | ($/1000) (Rate/Res. Rate) |
|---|---|---|---|---|---|
| 1. Residential | 15,180 | 61.5% | 5,281,199 | 82.81% | 2.8743 (1.00) |
| 2. Utility | 169 | 0.7% | 7,924 | 0.12% | 21.2698 (7.40) |
| 3. Supportive Housing | - | 0.0% | - | 0.00% | 2.8743 (1.00) |
| 4. Heavy Industry | - | 0.0% | - | 0.00% | 9.2266 (3.21) |
| 5. Light Industry | 248 | 1.0% | 26,894 | 0.42% | 9.2266 (3.21) |
| 6. Business/Other | 9,061 | 36.6% | 1,050,786 | 16.47% | 8.6229 (3.00) |
| 7. Managed Forest | - | 0.0% | 108 | 0.00% | 2.8743 (1.00) |
| 8. Rec./Non-Profit | 40 | 0.2% | 11,436 | 0.18% | 3.4635 (1.20) |
| 9. Farm | - | 0.0% | 147 | 0.00% | 2.8743 (1.00) |
| Totals | 24,698 | 6,378,494 |
Objectives and Policies
Council sets tax rates to maintain tax stability between property classes. Property class multiples are reviewed periodically to ensure that the burden of tax among property classes is not distorted by differing market value changes between classes.
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 two such developments.
Council has established a revitalization tax exemption program under section 226 of the Community Charter which 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.