Committee of the Whole - November 23, 2015Operating Budget

Council’s Strategic Objectives• Vibrant & Diversified Economy

• Local businesses are retained and business opportunities expanded • Citizens’ interests are represented and promoted efficiently through political and economic spheres • The vitality of downtown is maintained and enhanced as a commercial and cultural destination

• Safe & Healthy Community • People feel safe in our community • Fort St. John is a family friendly community • Fort St. John is a healthy and active community

• Planned and Sustainable Community • Community infrastructure is well-maintained to meet the needs of both current and future generations • The natural environment is preserved, protected and enhanced • Municipal spending and tax policies are affordable and sustainable over time

Reoccurring Budget Themes

• To build a community that is fiscally sound

• To build a community committed to public safety

• To build a community with a vibrant city center

• To build a community with high quality services for our citizens

External Pressures• BC Hydro rates projected to increase by 4% in 2016 • Property insurance increasing by 6.5% • Liability insurance increasing by 14.5% • Political pressures – e.g. Canadian Federation of

Independent Business, Canadian Taxpayers Association • Community expectations for better or expanded

services continue to grow

Other Pressures• Growth both within the City and in the region • Services need to be expanded to support the growth and

meet the expectations of the community • Growth in the region places increased service expectations

without the corresponding tax revenue to support the increased costs

• Growth within the city is primarily residential resulting in a higher cost burden

Overview of Budget Funding Sources

CAPITAL BUDGET primarily funded by:

• Peace River Agreement • Reserves • Long Term Borrowing • Grants • Partnerships

OPERATING BUDGET primarily funded by:

• Taxation • Grants • Investments • User Fees

Non Market Change

- 100,000,000

-

100,000,000

200,000,000

300,000,000

400,000,000

2008 2009 2010 2011 2012 2013 2014 20152016 - Projection

Class 1 ResidentialClass 2 UtilitiesClass 3 Supportive HousingClass 4 Major IndustryClass 5 Light IndustryClass 6 Business and OtherClass 8 Rec/Non ProfitClass 9 Farms.353LGA

Revenue• 2.5% of Peace River Agreement in included in the

operating budget • 3.8% tax increase, after non-market assessment change

• Based on 2015 assessment numbers, required revenue would increase tax rates by 3.7% - final tax rate change is pending finalization of assessment numbers for 2016

• Assumes BC Assessment December 31, 2015 projection realized, as of November 15, 2015 non-market change would have a tax increase of 4.7%

Expenditure• RCMP officer budgeted for 1/2 year, reflects arrival

for second half of 2016 • Increase to facility maintenance as a result of IRC

facility assessment report • Increased staff based on proposed staffing policy

amendment

Operating (excluding projects)

Environmental Development

General Government

Services

Protective Services

Public Health and Welfare

Recreation and Culture

Sewer Utilities Transit Services

Transportation Services

Water Utilities

Taxes (31,396,010) (464,078) (1,242,900) (404,851) (33,507,839)

Collection for other Governments (19,279,054) (19,279,054)

Payments/Grants in Lieu of Taxes (424,200) (424,200)

Services Provided to Other Governments (316,519) (420,332) (9,000) (745,851)

Sale of Services (814,900) (4,383,711) (2,500) (5,422,429) (10,623,540)

Other Revenue from own Sources (118,900) (974,200) (662,500) (866,579) (172,900) (2,795,079)

Government transfers (50,000) (24,236,514) (932,808) (1,005,000) (1,240,200) (27,464,522)

Return on investment (704,292) (1,400) (220,334) (158,387) (1,084,413)

(168,900) (77,330,789) (2,015,640) (816,300) (1,871,579) (5,068,123) (2,665,000) (2,500) (5,985,667) (95,924,498)

Salaries, wages and employee benefits 1,034,767 5,007,659 6,503,667 113,632 3,896,227 572,208 2,760,504 1,088,268 20,976,932

Contracted and general services 488,677 1,647,849 6,262,311 656,300 1,066,372 378,058 2,665,000 1,699,621 377,968 15,242,156

Material, goods and supplies 51,550 253,280 433,182 37,102 848,145 455,104 1,265,700 786,156 4,130,219

Interest and Bank Charges 1,297,615 744,744 279,450 2,321,809

Utilities 66,034 139,680 777,599 182,250 376,750 562,990 2,105,303

Other Expenses 150,975 326,799 788,700 42,700 2,515,839 1,037,050 4,350,800 1,112,521 10,325,384

Principal on Long Term Debt & Actuarial Adjustments 861,601 1,233,451 346,502 2,441,554

Other tax requisitions 19,279,054 19,279,054

1,725,969 28,739,891 14,127,540 849,734 9,104,182 4,602,865 2,665,000 10,453,375 4,553,855 76,822,411

Transfers In (12,225) (807,500) (1,260,791) (42,700) (1,590,350) (1,020,000) (4,352,300) (1,078,821) (10,164,687)

Transfers Out 24,890,789 111,940 244,654 1,485,258 23,500 2,510,633 29,266,774

(12,225) 24,083,289 (1,260,791) 69,240 (1,345,696) 465,258 (4,328,800) 1,431,812 19,102,087

1,544,844 (24,507,609) 10,851,109 102,674 5,886,907 6,122,075

Operating Budget Change (Compared to 2015 operating budget)

Operating Budget Change (excluding self-funded functions)

Tax Rate and Single Family Dwelling Impact

$ Change % Tax Rate Impact

$ Impact SFD

Taxes due to new construction (2,682,366) (9.2 %) ($160.29)Taxes - other non-general property (292,603) (1.0 %) ($17.49)Collection for other Governments (3,752,174) (12.8 %) ($224.22)Payments/Grants in Lieu of Taxes (4,200) (0.0 %) ($0.25)Services Provided to Other Governments (11,269) (0.0 %) ($0.67)Sale of Services (42,800) (0.1 %) ($2.56)Other Revenue from own Sources (133,331) (0.5 %) ($7.97)Government transfers (2,336,693) (8.0 %) ($139.63)Return on investment (38,687) (0.1 %) ($2.31)

(9,294,123)

Salaries, wages and employee benefits 2,183,090 7.5 % $130.45Contracted and general services 1,527,729 5.2 % $91.29Material, goods and supplies 407,635 1.4 % $24.36Interest and Bank Charges 122,685 0.4 % $7.33Utilities 107,830 0.4 % $6.44Other Expenses (119,431) (0.4 %) ($7.14)Principal on Long Term Debt & Actuarial Adjustments 68,033 0.2 % $4.07Other tax requisitions 3,752,174 12.8 % $224.22

8,049,745

Transfers In 17,365 0.1 % $1.04Transfers Out 2,320,158 7.9 % $138.65

2,337,523

Taxes 1,093,145 3.7 % $65.32

Operating Budget Change (self-funded only)

Debt Servicing

Debt servicing limit $16,824,672

Debt servicing cost $4,639,726

Percentage of limit used 27.6%

Cost of City Services

$7.07 daily per resident

Assumes a population of 22,298 based on 3.6% increase of 2014 population estimate as published by BC Stats

Single Family DwellingFor 2015 a representative home assessment in Fort St. John is $352,146. The property tax impact would be:

2015 Municipal Tax $1,746.93 2016 Municipal Tax 1,812.25 Tax increase 65.32 Equivalent per day 0.18

Public Meeting

December 14, 2015 6:00 pm

Questions/Comments