DocumentsBylawApr 18, 2017Pages 110–113
Bylaw No. 1687 — City of Langford 2017–2021 Financial Plan Bylaw No. 1687, 2017 — Readings
Financial Plan Bylaw No. 1687 for the 2017–2021 planning period presented for readings.
Key facts
- Bylaw title: City of Langford 2017-2021 Financial Plan Bylaw No. 1687, 2017
- Agenda status: First, Second and Third Readings (p.110)
- Purpose: Establish municipal financial plan for 2017–2021
Bylaw No. 1687 — City of Langford
A BYLAW TO ADOPT A FINANCIAL PLAN FOR 2017 – 2021
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 2017 – 2021
- 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 2017-2021 Financial Plan Bylaw No. 1687, 2017”.
READ A FIRST TIME this day of April, 2017.
READ A SECOND TIME this day of April, 2017.
READ A THIRD TIME this day of April, 2017.
ADOPTED this day of May, 2017.
MAYOR
(Certified Correct)
CORPORATE OFFICER
Schedule "A" — Consolidated Financial Plan 2017-2021
Revenues
External Revenues — Development Fees
- Development Cost Charges:
- 2017: 3,923,200 $
- 2018: 1,712,500 $
- 2019: 2,452,500 $
- 2020: 1,552,500 $
- 2021: 1,002,500 $
- Developer Contributions:
- 2017: 13,406,300
- 2018: 1,500,000
- 2019: -
- 2020: 150,000
- 2021: 900,000
- Other Capital Contributions:
- 2017: 2,209,900
- 2018: -
- 2019: -
- 2020: -
- 2021: -
- Development Fees Total:
- 2017: 19,539,400
- 2018: 3,212,500
- 2019: 2,452,500
- 2020: 1,702,500
- 2021: 1,902,500
Other External Revenues
Municipal Property Taxes:
- 2017: 26,755,200
- 2018: 29,264,844
- 2019: 31,792,579
- 2020: 34,237,782
- 2021: 36,598,863
Parcel Taxes:
- 2017: 1,542,100
- 2018: 1,990,500
- 2019: 1,953,000
- 2020: 2,021,800
- 2021: 2,079,800
Fees and Charges:
- 2017: 7,138,800
- 2018: 7,235,300
- 2019: 7,178,400
- 2020: 6,790,800
- 2021: 6,826,900
Interest:
- 2017: 388,200
- 2018: 396,000
- 2019: 403,000
- 2020: 411,000
- 2021: 418,000
Grants From Other Governments:
- 2017: 15,582,600
- 2018: 3,849,400
- 2019: 2,403,500
- 2020: 2,518,800
- 2021: 2,536,500
Other Sources:
- 2017: 1,864,500
- 2018: 1,866,488
- 2019: 1,841,600
- 2020: 1,953,700
- 2021: 1,955,900
Total External Revenues:
- 2017: 72,810,800
- 2018: 47,815,032
- 2019: 48,024,579
- 2020: 49,636,382
- 2021: 52,318,463
Expenditures
External Expenditures
Operating Expenditures:
- 2017: 35,065,000
- 2018: 36,591,032
- 2019: 37,978,879
- 2020: 39,296,082
- 2021: 40,876,163
Interest Payments on Debt:
- 2017: 731,700
- 2018: 810,300
- 2019: 788,000
- 2020: 851,600
- 2021: 906,300
Capital Expenditures:
- 2017: 44,762,600
- 2018: 10,146,300
- 2019: 5,996,300
- 2020: 6,186,300
- 2021: 4,486,300
Total External Expenditures:
- 2017: 80,559,300
- 2018: 47,547,632
- 2019: 44,763,179
- 2020: 46,333,982
- 2021: 46,268,763
CHANGE IN NET FINANCIAL POSITION:
- 2017: (7,748,500)
- 2018: 267,400
- 2019: 3,261,400
- 2020: 3,302,400
- 2021: 6,049,700
Other Revenues & Expenditures
Borrowing Proceeds:
- 2017: 5,035,000
- 2018: 750,000
- 2019: 750,000
- 2020: 750,000
- 2021: 33,800
Principal Payments on Debt:
- 2017: 2,326,600
- 2018: 2,157,900
- 2019: 1,632,000
- 2020: 1,655,800
- 2021: 1,652,700
TOTAL REVENUES LESS EXPENDITURES:
- 2017: 5,040,100 $
- 2018: -$ 1,140,500
- 2019: -$ 2,379,400
- 2020: $ 2,396,600
- 2021: $ 4,430,800
Internal Transfers
Transfer from Reserve Funds
Affordable Housing:
- 2017: 10,800
- 2018: 11,100
- 2019: 11,400
- 2020: 11,700
- 2021: 12,000
Capital Works & Equipment:
- 2017: 3,095,400 $
- 2018: 2,435,000 $
- 2019: 1,450,000 $
- 2020: 2,130,000 $
- 2021: 1,400,000 $
Equipment Replacement:
- 2017: 837,500
- 2018: 110,000
- 2019: 260,000
- 2020: -
- 2021: 140,000
Parks & Open Space:
- 2017: 700,000
- 2018: 700,000
- 2019: -
- 2020: -
- 2021: -
Park Improvement:
- 2017: -
- 2018: -
- 2019: -
- 2020: -
- 2021: -
Sidewalk Capital:
- 2017: 100,000
- 2018: -
- 2019: -
- 2020: -
- 2021: -
Police Building Capital:
- 2017: 160,800
- 2018: 33,800
- 2019: -
- 2020: 33,800
- 2021: -
General Amenity:
- 2017: 1,697,300
- 2018: 1,007,600
- 2019: 807,900
- 2020: 623,700
- 2021: 524,000
Transfer from Reserve Fund Total:
- 2017: 6,601,800
- 2018: 4,297,500
- 2019: 2,529,300
- 2020: 2,799,200
- 2021: 2,076,000
Less: Transfer to Reserve and Capital Funds — Reserves
Police Building Capital:
- 2017: 14,500
- 2018: 5,000
- 2019: 15,300
- 2020: 11,200
- 2021: 7,200
Capital Works & Equipment:
- 2017: 1,335,600
- 2018: 1,665,600
- 2019: 1,835,000
- 2020: 2,105,000
- 2021: 2,405,000
Equipment Replacement:
- 2017: 650,000
- 2018: 650,000
- 2019: 700,000
- 2020: 800,000
- 2021: 850,000
Infrastructure Sustainability:
- 2017: 175,000
- 2018: 828,000
- 2019: 1,575,000
- 2020: 1,835,000
- 2021: 2,300,000
General Capital Fund:
- 2017: 118,000
- 2018: 118,000
- 2019: 118,000
- 2020: 118,000
- 2021: 118,000
Total Transfers to Reserves:
- 2017: 2,293,100
- 2018: 3,266,600
- 2019: 4,243,300
- 2020: 4,869,200
- 2021: 5,680,200
Transfers from(to) Surplus:
- 2017: 1,100,000
- 2018: 500,000
- 2019: 200,000
- 2020: 200,000
- 2021: 200,000
Transfers from(to) Reserve Accounts:
- 2017: (368,600)
- 2018: (390,400)
- 2019: (865,400)
- 2020: (526,600)
- 2021: (1,026,600)
TOTAL INTERNAL TRANSFERS:
- 2017: 5,040,100 $
- 2018: 1,140,500 $
- 2019: 2,379,400 -$
- 2020: 2,396,600 -$
- 2021: 4,430,800 -$
Schedule "B" — Revenue and Property Tax Policy Disclosure
Revenue Disclosure — Revenue Proportions
| Revenue Component | 2017 ($'000s / %) | 2018 ($'000s / %) | 2019 ($'000s / %) | 2020 ($'000s / %) | 2021 ($'000s / %) |
|---|---|---|---|---|---|
| Property Taxes | 26,755 / 34% | 29,265 / 60% | 31,793 / 64% | 34,238 / 67% | 36,599 / 70% |
| Parcel Charges | 1,542 / 2% | 1,991 / 4% | 1,953 / 4% | 2,022 / 4% | 2,080 / 4% |
| Fees | 7,139 / 9% | 7,235 / 15% | 7,178 / 15% | 6,791 / 13% | 6,827 / 13% |
| Other Sources | 37,375 / 49% | 9,325 / 19% | 7,101 / 15% | 6,585 / 14% | 6,813 / 13% |
| Proceeds From Borrowing | 5,035 / 6% | 750 / 2% | 750 / 2% | 750 / 1% | 34 / 0% |
| Total | 77,846 / 100% | 48,566 / 100% | 48,775 / 100% | 50,386 / 99% | 52,353 / 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 Revenue Distribution
The table below presents tax revenue and tax rates based on the 2017 Revised Assessment Roll:
| Property Class | Taxation Revenue ($'000s) | % | Net Taxable Assessed Value ($'000s) | % | Tax Rate ($/1000) | Multiple (Rate/Res. Rate) |
|---|---|---|---|---|---|---|
| 1. Residential | 16,621 | 63.3% | 6,100,510 | 83.66% | 2.7246 | 1.00 |
| 2. Utility | 147 | 0.6% | 7,314 | 0.10% | 20.1621 | 7.40 |
| 3. Supportive Housing | - | 0.0% | - | 0.00% | 2.7246 | 1.00 |
| 4. Heavy Industry | - | 0.0% | - | 0.00% | 8.7459 | 3.21 |
| 5. Light Industry | 239 | 0.9% | 28,265 | 0.39% | 8.4463 | 3.10 |
| 6. Business/Other | 9,203 | 35.0% | 1,144,948 | 15.70% | 8.0376 | 2.95 |
| 7. Managed Forest | - | 0.0% | 147 | 0.00% | 2.7246 | 1.00 |
| 8. Rec./Non-Profit | 37 | 0.1% | 11,312 | 0.16% | 3.2832 | 1.21 |
| 9. Farm | - | 0.0% | 142 | 0.00% | 2.7246 | 1.00 |
| Total | 26,247 | 7,292,638 |
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. In 2017 Council has 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 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.