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DocumentsStaff ReportMar 4, 2019Pages 34–58

Staff Report (Finance) – 2019-2023 Five-Year Financial Plan Approval

Original PDF

Finance department report presenting the proposed Five-Year Financial Plan 2019–2023, summarizing operating and capital budgets, major capital projects and the recommended tax impact for 2019.

8 8. REPORTS - a) 2019-2023 Five Year Financial Plan (Staff Report - Finance); b) Fire Services Mutual Aid Agreements (Staff Report - Fire Department); c) Rugby Canada - Request for Financial Partnership (Staff Report - Parks)

Key facts

  • 2019 capital spending: $44,093,292 (99% funded from non-tax sources)
  • Proposed tax increase in 2019: 2.49% (2% for public safety — 1% fire, 1% police; additional 0.49% inflation/growth)
  • Major capital projects: Westhills Stadium seating expansion; City Centre Park expansion; West Shore Parkway sewer extension; Peatt Rd @ Hockley roundabout; additional turf field at Belmont High School
  • Revenue and expense summaries and detailed five-year projections included (Exhibit A and supporting tables)

Staff Report (Finance) – 2019-2023 Five-Year Financial Plan Approval

Date: 04/03/2019
Department: Finance

Page 34–58

Background

The Community Charter requires council 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. As the final assessment information from BC Assessment that is required for final approval of the tax rate bylaw, each of the bylaws will come forward in April and then for adoption at the first Council meeting in May. This year, the financial plan is before Council for approval earlier in the year. This additional time allows for a longer construction window for many projects and provides additional time for departments to implement work plans for the remainder of the year once the budget is approved.

Page 34–58

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 2019 budget provides for the maintenance of all service levels across departments as the City continues to grow. Council’s priority of public safety and parks and recreation highlight the 2019 – 2023 Financial Plan. 2019 is the second year of a five-year program to increase fire department and police resources to meet the needs of growth within the City.

The capital budget provides for spending of $44,093,292 in 2019, with 99% funded from non-tax sources such as contributions, grants, short-term debt financing and reserves.

Major components of the capital budget include:

  • Westhills Stadium Seating Expansion
  • City Centre Park expansion including additional playground and plaza area
  • Additional turf field at Belmont Highschool
  • Expansion renovations at Westshore RCMP detachment
  • Peatt Rd @ Hockley roundabout construction
  • Salem Road Sewer Extension
  • West Shore Parkway, Sewer Extension and Sewer Lift station
  • Traffic Signal computer upgrades
  • Langford Outdoor experience bike trails
  • Gade Rd park improvements
  • Additional Park land acquisition and improvements

A summary of the Five-Year Financial Plan is attached as Exhibit “A”.

Page 34–58

Taxation Implications

The proposed 2019 – 2023 Five Year Financial Plan will result in a tax increase of 2.49% in 2019. Council’s priority of public safety services make up 2% of the tax increase this year, the second of a five-year plan, with 1% to fire and 1% to police for additional resources to meet the requirements of growth within in the City. The additional 0.49% is to cover increased costs of service due to inflation and growth of the City.

Page 34–58

Options

That Council approve the 2019 – 2023 Five Year Financial Plan and direct staff to bring forward the Five Year Financial Plan Bylaw, 2019 and the 2019 Tax Rate Bylaw.

Respectfully Submitted,

Submitted by:
Michael Dillabaugh, CPA, CA, Director of Finance

Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning

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

Concurrence:
Braden Hutchins, Director of Corporate Services

Concurrence:
Darren Kiedyk, Chief Administrative Officer

Page 34–58

Exhibit A — Revenue Summary (Five Year Financial Plan for: 2019-2023)

Revenue Summary table — Municipal property taxes and other revenue sources
Revenue Summary table — Municipal property taxes and other revenue sources

Revenue Summary (Amounts by Year)

Revenue Source 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Municipal Property Taxes 22,725,561 22,741,500 24,782,309 27,674,338 29,700,793 31,772,049 33,901,895
General Government Debt 977,021 977,700 977,700 467,000 485,600 479,200 479,200
Taxes Levied For Others 4,534,141 4,537,136 4,669,370 4,783,679 4,920,100 5,060,600 5,214,800
Specified Area Charges 1,532,460 1,990,500 1,990,500 1,962,500 2,021,500 2,071,000 2,042,300
Grant in Lieu of Taxes 525,741 518,610 537,610 548,400 559,400 570,600 582,100
Municipal Services 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Interest Income 254,517 175,000 200,000 200,000 200,000 200,000 200,000
Penalties and Interest 400,766 395,000 410,000 420,000 430,000 440,000 450,000
Licences and Permits 3,341,878 2,875,800 2,993,400 2,982,300 2,690,000 2,694,800 2,676,000
Other Income 11,188,759 12,768,600 15,268,700 7,416,380 6,786,000 6,656,902 7,175,108
Surplus and Reserves 7,624,010 12,360,385 22,352,927 10,078,218 5,464,866 4,455,800 5,761,200
Unconditional Grants 283,581 300,000 300,000 300,000 300,000 300,000 300,000
Conditional Grants 1,077,615 23,496,667 13,828,167 3,848,640 8,612,495 2,816,003 2,837,816
Debt Financing 2,300,000 4,500,000 750,000 1,000,000 — — —
Total 56,771,050 83,141,898 92,815,683 60,686,455 62,925,754 58,521,954 61,625,419

Tax Increase/Decrease:

  • 2019: 2.49%
  • 2020: 2.94%
  • 2021: 2.98%
  • 2022: 2.86%
  • 2023: 2.91%
Detailed Surplus and Reserves and Grants table
Detailed Surplus and Reserves and Grants table

Surplus and Reserves / Grants (Selected entries)

Reserve / Grant 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Operating Surplus 902,000 902,000 1,502,000 300,000 200,000 300,000 —
Capital funded by Surplus 19,012 534,600 — — — — —
Sick Leave Reserve 25,000 25,000 25,000 — 152,500 — —
Tsf from GO 142,711 1,170,000 2,725,000 545,000 420,000 320,000 320,000
Community Works - Gas Tax Reserve 169,952 — — — — — —
Capital Works Reserve 1,535,615 3,442,135 2,561,235 2,625,000 650,000 300,000 1,325,000
General Amenity Reserve Fund 1,593,024 1,973,500 6,572,500 2,111,718 1,191,466 852,000 852,000
Parkland Acquisition Reserve Fund — 50,000 1,000,000 — — — —
Parkland Improvements Reserve Fund 26,177 — — — — — —
Development Cost Charges - Park Land 79,810 700,000 4,600,000 700,000 800,000 800,000 800,000
Equipment Replacement Reserve 140,948 381,750 582,200 2,538,500 150,000 1,000,000 —
Total Surplus & Reserves 7,624,010 12,360,385 22,352,927 10,078,218 5,464,866 4,455,800 5,761,200

Grants (Selected)

Grant / Program 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Provincial Traffic Fine Grant 283,581 300,000 300,000 300,000 300,000 300,000 300,000
911 service contract - CRD 541,060 541,100 590,600 640,100 656,100 672,503 689,316
2% Hotel Room Tax - Marketing Program 53,648 165,000 168,300 171,700 175,200 178,800 182,400
Community Works - Gas Tax 1,285,400 1,285,400 1,285,400 1,346,600 1,346,600 1,346,600 —
Grants (other) 117,621 17,624,967 10,629,667 1,686,140 6,367,895 550,000 550,000
Building Canada program and Rugby Canada Fitness Centre grant details
Building Canada program and Rugby Canada Fitness Centre grant details

Building Canada / Major Grants

Project 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Building Canada - Westshore Parkway Completion Project 127,194 2,666,700 1,066,700 — — — —
Build Canada - Rugby Canada Fitness Centre 1,077,615 — 23,496,667 13,828,167 3,848,640 8,612,495 2,816,003
Short term borrowing and long term borrowing summary
Short term borrowing and long term borrowing summary

Borrowing (Selected)

  • Short Term Borrowing / Leasing planned:
    • 2019: 750,000
    • 2020: 1,000,000
    • Police Building Expansion, Westhills Stadium Expansion: 3,500,000 (future)
    • 3020 Glen Lake Rd building: 1,000,000
    • General Land Acquisition by Mortgage: 4,500,000
  • Long Term Borrowing:
    • Bear Mountain Parkway Extension - Local Area Service (completion): 2,300,000
    • Leigh Rd. Interchange - Local Area Service (project completion): 2,300,000
Page 34–58

Expense Summary (Five Year Financial Plan for: 2019-2023)

Expense Summary table — department totals across five years
Expense Summary table — department totals across five years

Expense Summary (Selected totals)

Department / Area 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
General Government 5,730,339 8,548,171 10,721,126 7,196,067 6,970,312 7,075,761 7,167,040
Protective Services - Police 7,330,537 8,596,383 9,756,501 9,930,993 10,494,473 11,058,137 11,734,094
Protective Services - Fire 3,089,407 3,380,574 3,818,978 3,810,400 4,900,467 4,637,495 6,605,414
Building Inspection 765,915 761,800 865,824 821,300 827,300 841,300 859,900
Bylaw Enforcement 803,338 881,123 1,000,557 1,074,595 1,075,352 1,150,719 1,113,594
Public Works 12,838,952 27,552,280 20,871,417 9,068,200 11,743,055 7,172,000 7,121,900
Subdivision 704,600 552,539 496,959 505,000 515,600 522,800 535,000
Planning and Development 980,932 904,900 1,009,500 1,015,280 1,036,000 1,058,700 1,081,700
Parks and Recreation 12,249,011 22,508,728 34,089,137 16,025,326 15,812,608 14,855,975 14,140,723
Cultural Services 2,182,139 2,141,700 2,272,984 2,313,294 2,373,387 2,435,267 2,508,454
Fiscal Services 5,468,056 7,313,700 7,912,700 8,926,000 7,177,200 7,713,800 8,757,600
Total General Fund 52,143,226 83,141,898 92,815,683 60,686,455 62,925,754 58,521,954 61,625,419
Page 34–58

General Government Expenditures

General Government expenditures — summary table
General Government expenditures — summary table

General Government — Summary by Category

Category 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Legislative 393,774 504,403 647,730 655,519 663,457 706,548 679,795
Administrative 870,813 939,500 1,121,340 1,134,219 1,157,909 1,186,817 1,209,249
Records Management 244,878 339,200 375,850 388,322 395,886 407,196 413,854
Financial 673,386 612,600 663,960 677,271 689,531 703,944 720,415
Asset Management 120,022 197,200 219,800 225,456 229,997 233,425 238,141
Common Services 720,258 699,000 794,500 777,100 803,644 810,405 825,989
Information Technology 1,421,495 1,461,868 1,543,446 1,430,980 1,457,688 1,480,126 1,527,197
Equipment Support 15,728 33,000 33,000 33,800 34,600 35,400 36,200
Buildings 230,990 287,300 299,300 253,400 257,600 261,900 266,200
Capital 1,038,995 3,474,100 5,022,200 1,620,000 1,280,000 1,250,000 1,250,000
Total General Government 5,730,339 8,548,171 10,721,126 7,196,067 6,970,312 7,075,761 7,167,040
General Government legislative and administrative detail
General Government legislative and administrative detail

Legislative (selected items)

Item 2018 Actual 2018 Budget 2019 Budget 2020 2021 2022 2023
Mayor and Councillors Indemnity 156,736 160,503 163,830 167,107 170,449 173,858 177,335
Travel and Expenses 29,847 40,600 40,600 41,412 42,240 43,085 43,947
Dues and Fees 24,183 23,300 23,300 23,600 23,900 24,200 24,500
Sundry 71,760 50,000 50,000 50,000 50,000 50,000 50,000
Elections and Referenda 34,753 30,000 35,000 — — — —
Contingency 76,495 200,000 370,000 373,400 376,868 380,405 384,013
Records Management and Financial detail
Records Management and Financial detail

Administrative (selected items)

Item 2018 Actual 2018 Budget 2019 Budget 2020 2021 2022 2023
General Administration (Salary & Benefits) 703,187 610,000 686,200 699,924 713,922 728,200 742,764
Economic Stimulus & Promotion 111,311 226,000 323,340 329,995 336,787 343,717 350,785
Travel and Training 17,538 12,000 12,000 15,300 15,700 16,100 16,500
First Nations Intergovernmental Relations 17,583 21,000 21,000 21,000 21,000 23,000 23,000

Records Management (selected items)

Item 2018 Actual 2018 Budget 2019 Budget 2020 2021 2022 2023
Scanning and Filing (Salary & Benefits) 228,825 321,900 356,100 363,222 370,486 377,896 385,454
Records Storage & Retrieval 9,286 7,500 7,500 7,700 7,900 8,100 8,300
Contract Scanning — — 2,600 2,700 2,800 2,900 3,000
Travel and Training 4,296 6,000 8,450 6,750 6,750 6,750 6,750
Common Services and Information Technology detail
Common Services and Information Technology detail

Financial and Asset Management (selected)

Item 2018 Actual 2018 Budget 2019 Budget
General Financial Services (Salary & Benefits) 581,644 550,400 602,500
Audit Fees 38,000 38,000 38,800
Asset Management - Create and maintain AM database (Salary & Benefits) 116,715 170,200 192,800
Asset Management - Consulting — 20,000 20,400

Common Services (selected)

  • Legal (2018 Actual: 245,215; 2018 Budget: 110,000; 2019 Budget: 150,000)
  • Insurance (Liability, Property and Public Officials) (2018 Actual: 242,890; 2019 Budget: 270,000)
  • Telephone and Fax (2018 Actual: 76,352; 2019 Budget: 70,000)
  • Payment to Metchosin and Beecher Bay for tax sharing (2018 Actual: 30,000; ongoing increases)
Computer Network and GIS support detail
Computer Network and GIS support detail

Information Technology (selected)

Area 2018 Actual 2018 Budget 2019 Budget 2020 Budget
Computer Network Support (Salary & Benefits) 329,899 317,968 435,886 325,380
Software Support and Maintenance Contracts 415,493 379,000 435,000 449,700
Computer Mapping / GIS Support (Salary & Benefits) 349,908 286,900 297,000 303,000
Internet & Database Support Services (Salary & Benefits) 155,097 — — —
Internet & Database support services breakdown
Internet & Database support services breakdown

Information Technology totals

  • Information Technology Total:
    • 2018 Actual: 1,421,495
    • 2018 Budget: 1,461,868
    • 2019 Budget: 1,543,446
Buildings and Capital Projects detail
Buildings and Capital Projects detail

Buildings (selected) and Capital Projects

Item 2018 Actual 2018 Budget 2019 Budget
Municipal Hall - Strata Fees 132,926 128,000 65,000
Utilities (Municipal Hall) 19,686 27,600 27,600
Custodial (Municipal Hall) 50,069 48,000 48,000
Hardware Replacements (Capital) 61,695 187,200 161,200
Software Updates / Licences (Capital) 9,044 67,500 173,000
Property Acquisition (Capital) 882,967 2,000,000 4,000,000
Capital Total (General Government) 1,038,995 3,474,100 5,022,200
Page 34–58

Protective Services — Police Expenditures

Police — Summary by Area

Area 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Administration 908,168 921,278 1,200,770 1,299,863 1,325,936 1,352,529 1,379,652
Police Services (RCMP Contract etc.) 6,184,102 7,252,160 7,775,132 8,320,294 8,888,452 9,480,306 10,128,773
Police Building (net Langford cost) 208,089 230,945 220,999 235,618 225,119 225,302 225,669
Police Building Capital Reserves / Capital Projects 30,178 192,000 559,600 75,218 54,966 — —
Total Police 7,330,537 8,596,383 9,756,501 9,930,993 10,494,473 11,058,137 11,734,094
Police administration and RCMP contract detail
Police administration and RCMP contract detail

Police Administration (selected)

Item 2018 Actual 2018 Budget 2019 Budget
Salaries and Benefits for Municipal Employees 1,216,493 1,236,888 1,522,714
Salary Recovery - View Royal (260,159) (271,014) (276,434)
Salary Recovery - Colwood (50,355) (45,696) (46,610)
Sundry (Detachment Commander travel & dues) 2,189 1,100 1,100
Administration Total 908,168 921,278 1,200,770

Police Services (RCMP and programs)

Item 2018 Actual 2018 Budget 2019 Budget
R.C.M.P. Contract 5,968,444 6,979,100 7,496,600
R.C.M.P. Prisoners Expenses 117,973 156,060 160,000
R.C.M.P. Auxiliary 3,000 3,000 3,000
Crime Prevention (School Liaison, Bike Patrol) 12,100 12,100 12,100
Victims / Youth Services Contract 69,100 70,500 71,910
Police building operations and capital details
Police building operations and capital details

Police Building (selected)

Item 2018 Actual 2018 Budget 2019 Budget
Equipment Repairs & Maintenance 62,051 3,060 3,121
Custodial 102,617 98,838 100,815
Utilities 83,164 89,352 89,352
Building Repairs & Maintenance 49,170 89,462 85,000
Net Langford Cost 208,089 216,445 206,499
Contribution to Police Building Capital Reserve 14,500 14,500 5,000

Police Capital Projects (selected)

  • Parking Lot - Privacy Fencing: 25,000 (future budgets)
  • Security swipe access card system: 17,550
  • Third Floor Reno and Fit-Out: 255,000 (2019), 400,000 (2020)
  • HVAC Unit Replacement (5 per year): 30,178 (2018 actual); 60,000; 65,000; 75,000; 75,000
  • 2nd Floor Upgrades: 350,000
Page 34–58

Protective Services — Fire and Emergency Measures Expenditures

Fire & Emergency Summary

Area 2018 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget
Administration 1,627,714 1,841,961 2,040,878 2,129,600 2,499,451 2,795,897 3,323,867
Fire Fighting Force 354,317 332,400 368,300 382,500 396,016 411,148 426,497
Fleet Vehicles 93,990 93,000 94,400 95,800 97,300 98,800 100,300
Equipment Maintenance 186,397 278,635 321,950 271,000 276,700 282,200 287,900
Communications Centre 612,436 546,363 622,600 655,400 668,800 682,400 696,300
Emergency Measures 22,743 58,115 55,250 57,300 60,000 60,950 60,450
Fire Stations 146,426 160,550 169,600 148,300 152,200 156,100 160,100
Capital Projects (Firefighting Fleet & Equipment) 45,384 69,550 146,000 70,500 750,000 150,000 1,550,000
Total Fire & Emergency 3,089,407 3,380,574 3,818,978 3,810,400 4,900,467 4,637,495 6,605,414
Fire administration detail
Fire administration detail

Fire — Administration (selected)

Item 2018 Actual 2018 Budget 2019 Budget 2020 2021 2022 2023
Firefighting and Clerical Support Staff (Salary & Benefits) 1,527,213 1,390,561 1,578,778 1,658,100 2,021,151 2,313,097 2,830,667
Summer Casual 12,000 10,000 10,200 10,500 10,800 11,100 —
Map and Fire Pre-Planning Drawing Updates — 32,700 33,400 34,100 34,800 35,500 36,300
Enhanced Fire Protection Model — 192,000 196,800 201,800 206,900 212,100 217,500
Reserve for Future Expansion — 100,000 100,000 100,000 100,000 100,000 100,000
Workstation & Tablet Replacements 14,504 3,900 9,800 10,000 7,200 2,000 2,400
Fire fighting force and volunteer program detail
Fire fighting force and volunteer program detail

Fire Fighting Force (selected)

Item 2018 Actual 2018 Budget 2019 Budget 2020 2021 2022 2023
Volunteers Training, Turnout and Service Pay Contract 131,973 131,800 140,200 149,000 158,000 167,500 177,200
WCB 1,500 1,500 1,600 1,700 1,800 1,900 —
Callout Meals 4,225 — 5,500 5,700 5,900 6,100 6,300
Benefits 11,872 12,000 12,300 12,600 12,900 13,200 13,500
Training 79,422 77,600 79,200 80,800 82,500 84,200 85,900
Uniforms and Clothing Replacements 16,982 19,400 19,800 20,200 20,700 21,200 21,700
Volunteer Longevity Incentive Program 60,826 16,700 40,000 40,800 41,616 42,448 43,297
Fleet and equipment maintenance detail
Fleet and equipment maintenance detail

Fleet & Equipment (selected)

Item 2018 Actual 2018 Budget 2019 Budget
Fleet Operating Costs (All Vehicles) 93,990 93,000 94,400
Pagers & Radio Maintenance — 2,900 3,900
C.R.E.S.T. Levy 76,015 79,100 102,200
Personal Protective Equipment & Helmets 63,948 64,000 65,000
Minor equipment replacements, recip saws and emergency planning
Minor equipment replacements, recip saws and emergency planning

Equipment Replacement / Minor Programs

  • Minor Equipment Replacement Program (2018 Actual: 186,397; 2019 Budget: 321,950)
  • Recip Saws: 2018 Actual 1,285; 2019 Budget 6,450; subsequent budgets shown
  • Gym Equipment Replacement: 46,039 (future allocation)
Communications Centre and Fire Stations detail
Communications Centre and Fire Stations detail

Communications Centre

Item 2018 Actual 2018 Budget 2019 Budget 2020 2021 2022 2023
Dispatch Salaries & Benefits 599,741 525,263 600,000 632,100 644,800 657,700 670,900
Relief Dispatch Training 3,200 — 4,500 4,600 4,700 4,800 4,900
Computer Support 6,600 — — 6,800 7,000 7,200 7,400
Equipment Maintenance 3,749 2,600 2,600 2,700 2,800 2,900 3,000
Communications Centre Total 612,436 546,363 622,600 655,400 668,800 682,400 696,300

Fire Stations (selected)

  • Hall No.1 — 2625 Peatt Road (various facility operating costs; totals included in Fire Stations line)
  • Hall No.2 — 3213 Happy Valley Road
  • Hall No.3 — 2872 Sooke Lake Road
Fire capital projects, station upgrades and Emergency Measures detail
Fire capital projects, station upgrades and Emergency Measures detail

Fire Capital Projects (selected)

Project 2018 Actual 2018 Budget 2019 Budget 2020 Budget
Car 3 Replacement 45,384 69,550 — —
Apparatus Replacement — — 70,500 750,000
Utility 1 Replacement — — 71,000 —
Hose Replacement — — 5,000 —
Community Wildfire Protection Plan Grant 30,000 — — —
ESS Grant 10,000 — — —

Emergency Measures (selected)

Item 2018 Actual 2018 Budget 2019 Budget
Supplies / ESS 9,331 21,115 18,000
Amateur Radio 3,173 2,200 2,300
Storage Room / Arena Rental 7,326 7,500 7,500
Emergency Measures Total 22,743 58,115 55,250
Page 34–58

Notes on Images Included

  • Revenue Summary table — Municipal property taxes and other revenue sources
    Revenue Summary table — Municipal property taxes and other revenue sources

(Note: headers, footers, page numbers and letterhead images were omitted per instructions.)

Page 34–58
Extracted from: 20190304-Agenda-Package(166 pages total)