February 12, 2014

Wednesday, February 12, 2014 Richmond Review · Page W1Page W4 · Richmond Review Wednesday, February 12, 2014

City of Richmond

5 Year Financial Plan (2014–2018) www.richmond.ca

Planning for our futureThe City of Richmond annually adopts three budgets to guide civic spending. The Operating budget funds the provision of general City services and determines annual property tax rates. The Capital budget funds investments in infrastructure or equipment, while the Utilities budget supports provision of water, sewer, drainage and garbage and recycling services.

Once the City has adopted each of the three budgets for the coming year, it also develops a 5 Year Financial Plan. This plan provides a budget roadmap for the City to manage its resources, revenues and spending to best serve the community. It also establishes that the City has the ability to meet the needs of the community and maintain civic service levels for the coming five years, while meeting its legal requirement to deliver balanced annual operating budgets.

The 5 Year Financial Plan, which includes the current 2014 budgets, is developed based on estimates, economic forecasts, Council Term Goals and other expected impacts on revenues and spending.

The Community Charter, which governs BC’s local governments, requires the City to adopt a 5 Year Financial Plan by May 15 of each calendar year. The 5 Year Financial Plan (2014–2018) received preliminary approval from City Council on February 11, 2014. A two-week public consultation period is now underway during which the public has the opportunity to view the 5 Year Financial Plan and provide feedback to City Council.

2014 Operating budgetCity Council has approved a 1.96 per cent average property tax increase for 2014 to support general operating costs, plus an additional one per cent tax increase for reserves.

The overall tax increase can be broken down into four components: 1.53% increase to maintain the same level of service from the prior year, due to year over year increases in salaries, policing costs and other non-discretionary expenses.

0.09% increase in new spending to fund an additional officer for the Richmond RCMP’s Quick Response Team which responds to emerging crime trends.

0.34% increase for some of the operating budget impacts associated with new capital spending, including the new City Centre Community Centre, and new aquatic and older adult centres. These new, larger facilities will increase the City’s operating costs when they open in 2015 and 2017. Beginning to phase in funding now for these anticipated additional costs allows the impact to be spread over a number of years, rather than all at once.

1.00% to go towards City reserves to ensure sufficient funds are available to meet future capital infrastructure needs.

Community safety remains the largest single expense area in the operating budget with approximately 37 cents of every tax dollar going to fund police and fire rescue services.

2014 Breakdown of $1 of Municipal Tax

Police

Fire Rescue

Community Services and Parks

Engineering and General Public Works

Transfer to Reserves

Project Development and Facility Management

Information Technology

Finance and Corporate Services

Richmond Public Library

Aquatics, Fitness and Arenas

Corporate Administration

Planning and Development

Fiscal Expenditures and Debt

Storm Drainage

Law, Emergency and Bylaws

20.2¢

16.7¢

14.1¢

9.0¢

5.8¢

4.8¢

4.6¢

4.2¢

4.2¢

3.9¢

3.5¢

3.2¢

2.2¢

2.1¢

1.5¢

The proposed 5 Year Financial Plan (2014–2018) Bylaw 9100 is currently available via:

the City’s online public engagement website at www.letstalkrichmond.ca the City website at www.richmond.ca email request to [email protected] or phone 604-276-4218 printed copy, available at Richmond City Hall–Information Counter, 6911 No. 3 Road

We welcome your feedback by February 21, 2014 by: commenting on the Let’s Talk Richmond website at www.letstalkrichmond.ca

emailing [email protected] written submissions to Finance Division, Richmond City Hall, 6911 No. 3 Road, Richmond, V6Y 2C1

It is anticipated that Bylaw 9100 will be considered by City Council for adoption at the Regular Council Meeting on February 24, 2014 at 7:00 p.m. in the Richmond City Hall Council Chambers. Public delegations at the Council Meeting are permitted in regard to this bylaw.

City of Richmond


Long Term Financial Management StrategyRichmond’s Long Term Financial Management Strategy was adopted by City Council to ensure the City is financially sustainable. That means having adequate resources to maintain civic services and meet community needs, while keeping property taxes and other fees and charges relatively stable.

Under the Strategy, the City’s goal is to maintain property tax increases at or below the annual increase in the cost of living for the Vancouver region, plus allowing for an additional one per cent property tax increase annually to fund the City’s reserve accounts. It provides for services to be maintained at appropriate levels, while allowing for cost increases related to inflation, contractual obligations and other expenses. At the same time, it provides economic security and certainty for taxpayers by stabilizing year-to-year tax rate adjustments.

Through the Long Term Financial Management Strategy, Richmond’s average residential property taxes remains the second lowest amongst the five largest cities in the region. Over the last five years, Richmond’s average tax increases have consistently been one of the lowest and most stable in the region.

Why the City needs reservesThe City’s various reserve accounts are like your own personal savings accounts. Just as you need to set aside money to fund significant costs such as home or car repairs or replacement, the City needs to save money to repair, replace and upgrade civic infrastructure and equipment when necessary.

The annual transfer to reserves is included in the City’s Operating Budget. By increasing the annual transfer to reserves by one per cent, the City ensures that reserves are maintained and fluctuations in tax increases minimized. The use of reserves also allows the City to limit the dependency to borrow externally, which further reduces fluctuations in the annual tax increase.

The City of Richmond has $1.8 billion in capital assets, which includes roads, water and sewer works, dikes and drainage networks, buildings, vehicles, equipment, parks and trails and other physical property. Reserve funds are also used to support development of affordable housing, child care and other important community needs.

Annually, the City spends tens of millions of dollars to renew and upgrade its infrastructure and equipment. That means the City’s reserves must be constantly replenished to make sure money is available for future needs.

As part of the Long Term Financial Management Strategy, first adopted in 2003, City Council directed that an additional one per cent increase be added to property taxes annually to fund reserves. Through this policy, the City’s reserve accounts are steadily growing and approaching levels required to fund anticipated future community needs without burdening future generations.

Consequently, City Council is able to utilize these reserves to help fund critically-needed new community facilities, such as the planned new aquatic and older adult centres, without having any impact on property taxes from the construction cost of these facilities.

Average residential municipal taxes in comparable Metro Vancouver cities

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

$1,400

$1,300

$1,200

$1,100 Surrey Richmond Burnaby Coquitlam Vancouver


City of Richmond


$76.9 millionFunding allocated to build a new Aquatic Centre and Older Adult Centre in Minoru Park.

5New fire halls to be completed between 2005-2017. 264

Police and civilian staff located at Richmond Community Safety Building, opened in 2011 as the new home for Richmond RCMP.

500+New affordable housing units secured for Richmond since 2011.

200+New child care spaces secured through new development approvals.

$2.3 billionConstruction value of new building permits issued since 2010.

Council Term Goals 2011–2014Council has 13 term goals which guide all City initiatives, including spending priorities. Here are some recent highlights of new programs and other achievements funded by the City as a result of these goals.

To see the complete list of Council’s Term Goals, visit the City’s website at www.richmond.ca

FACILITY DEVELOPMENT COMMUNITY SOCIAL SERVICES

COMMUNITY SAFETY

COMMUNITY SAFETY

ECONOMIC DEVELOPMENT

COMMUNITY SOCIAL SERVICES

City of Richmond


$140 millionNew land purchases for community needs since 2010, including the 55-hectare (136-acre) Garden City Lands.

40,000Green Carts provided to Richmond homes in 2013 for organics recycling, helping to increase waste diversion rates from landfills to nearly 70%.

330 tonnesReduction to date of greenhouse gas emissions through use of thermal heat produced by the City’s Alexandra District Energy Utility.

28,000Sport and fitness registrations at the Richmond Olympic Oval since its opening, along with 3.5 million visitors and more than 5,000 members.

5.6 Length in kilometers of new Railway Greenway trail development to be completed in 2014.

40,000Visitors to the 10th annual Richmond Maritime Festival in 2013.

23,000+Hotel room night stays in Richmond in 2013 secured through Sport Hosting Program.


SUSTAINABILITYSUSTAINABILITY

FINANCIAL MANAGEMENT

COMMUNITY WELLNESS

SUSTAINABILITY

ARTS AND CULTURE

SUSTAINABILITY

COMMUNITY WELLNESS


City of Richmond


$76.9 millionFunding allocated to build a new Aquatic Centre and Older Adult Centre in Minoru Park.

5New fire halls to be completed between 2005-2017. 264

Police and civilian staff located at Richmond Community Safety Building, opened in 2011 as the new home for Richmond RCMP.

500+New affordable housing units secured for Richmond since 2011.

200+New child care spaces secured through new development approvals.

$2.3 billionConstruction value of new building permits issued since 2010.

Council Term Goals 2011–2014Council has 13 term goals which guide all City initiatives, including spending priorities. Here are some recent highlights of new programs and other achievements funded by the City as a result of these goals.

To see the complete list of Council’s Term Goals, visit the City’s website at www.richmond.ca

FACILITY DEVELOPMENT COMMUNITY SOCIAL SERVICES

COMMUNITY SAFETY

COMMUNITY SAFETY


COMMUNITY SOCIAL SERVICES

City of Richmond


$140 millionNew land purchases for community needs since 2010, including the 55-hectare (136-acre) Garden City Lands.

40,000Green Carts provided to Richmond homes in 2013 for organics recycling, helping to increase waste diversion rates from landfills to nearly 70%.

330 tonnesReduction to date of greenhouse gas emissions through use of thermal heat produced by the City’s Alexandra District Energy Utility.

28,000Sport and fitness registrations at the Richmond Olympic Oval since its opening, along with 3.5 million visitors and more than 5,000 members.

5.6 Length in kilometers of new Railway Greenway trail development to be completed in 2014.

40,000Visitors to the 10th annual Richmond Maritime Festival in 2013.

23,000+Hotel room night stays in Richmond in 2013 secured through Sport Hosting Program.


SUSTAINABILITYSUSTAINABILITY

FINANCIAL MANAGEMENT

COMMUNITY WELLNESS

SUSTAINABILITY

ARTS AND CULTURE

SUSTAINABILITY

COMMUNITY WELLNESS


City of Richmond


Planning for our futureThe City of Richmond annually adopts three budgets to guide civic spending. The Operating budget funds the provision of general City services and determines annual property tax rates. The Capital budget funds investments in infrastructure or equipment, while the Utilities budget supports provision of water, sewer, drainage and garbage and recycling services.

Once the City has adopted each of the three budgets for the coming year, it also develops a 5 Year Financial Plan. This plan provides a budget roadmap for the City to manage its resources, revenues and spending to best serve the community. It also establishes that the City has the ability to meet the needs of the community and maintain civic service levels for the coming five years, while meeting its legal requirement to deliver balanced annual operating budgets.

The 5 Year Financial Plan, which includes the current 2014 budgets, is developed based on estimates, economic forecasts, Council Term Goals and other expected impacts on revenues and spending.

The Community Charter, which governs BC’s local governments, requires the City to adopt a 5 Year Financial Plan by May 15 of each calendar year. The 5 Year Financial Plan (2014–2018) received preliminary approval from City Council on February 11, 2014. A two-week public consultation period is now underway during which the public has the opportunity to view the 5 Year Financial Plan and provide feedback to City Council.

2014 Operating budgetCity Council has approved a 1.96 per cent average property tax increase for 2014 to support general operating costs, plus an additional one per cent tax increase for reserves.

The overall tax increase can be broken down into four components: 1.53% increase to maintain the same level of service from the prior year, due to year over year increases in salaries, policing costs and other non-discretionary expenses.

0.09% increase in new spending to fund an additional officer for the Richmond RCMP’s Quick Response Team which responds to emerging crime trends.

0.34% increase for some of the operating budget impacts associated with new capital spending, including the new City Centre Community Centre, and new aquatic and older adult centres. These new, larger facilities will increase the City’s operating costs when they open in 2015 and 2017. Beginning to phase in funding now for these anticipated additional costs allows the impact to be spread over a number of years, rather than all at once.

1.00% to go towards City reserves to ensure sufficient funds are available to meet future capital infrastructure needs.

Community safety remains the largest single expense area in the operating budget with approximately 37 cents of every tax dollar going to fund police and fire rescue services.

2014 Breakdown of $1 of Municipal Tax

Police

Fire Rescue

Community Services and Parks

Engineering and General Public Works

Transfer to Reserves

Project Development and Facility Management

Information Technology

Finance and Corporate Services

Richmond Public Library

Aquatics, Fitness and Arenas

Corporate Administration

Planning and Development

Fiscal Expenditures and Debt

Storm Drainage

Law, Emergency and Bylaws

20.2¢

16.7¢

14.1¢

9.0¢

5.8¢

4.8¢

4.6¢

4.2¢

4.2¢

3.9¢

3.5¢

3.2¢

2.2¢

2.1¢

1.5¢

The proposed 5 Year Financial Plan (2014–2018) Bylaw 9100 is currently available via:

the City’s online public engagement website at www.letstalkrichmond.ca the City website at www.richmond.ca email request to [email protected] or phone 604-276-4218 printed copy, available at Richmond City Hall–Information Counter, 6911 No. 3 Road

We welcome your feedback by February 21, 2014 by: commenting on the Let’s Talk Richmond website at www.letstalkrichmond.ca

emailing [email protected] written submissions to Finance Division, Richmond City Hall, 6911 No. 3 Road, Richmond, V6Y 2C1

It is anticipated that Bylaw 9100 will be considered by City Council for adoption at the Regular Council Meeting on February 24, 2014 at 7:00 p.m. in the Richmond City Hall Council Chambers. Public delegations at the Council Meeting are permitted in regard to this bylaw.

City of Richmond


Long Term Financial Management StrategyRichmond’s Long Term Financial Management Strategy was adopted by City Council to ensure the City is financially sustainable. That means having adequate resources to maintain civic services and meet community needs, while keeping property taxes and other fees and charges relatively stable.

Under the Strategy, the City’s goal is to maintain property tax increases at or below the annual increase in the cost of living for the Vancouver region, plus allowing for an additional one per cent property tax increase annually to fund the City’s reserve accounts. It provides for services to be maintained at appropriate levels, while allowing for cost increases related to inflation, contractual obligations and other expenses. At the same time, it provides economic security and certainty for taxpayers by stabilizing year-to-year tax rate adjustments.

Through the Long Term Financial Management Strategy, Richmond’s average residential property taxes remains the second lowest amongst the five largest cities in the region. Over the last five years, Richmond’s average tax increases have consistently been one of the lowest and most stable in the region.

Why the City needs reservesThe City’s various reserve accounts are like your own personal savings accounts. Just as you need to set aside money to fund significant costs such as home or car repairs or replacement, the City needs to save money to repair, replace and upgrade civic infrastructure and equipment when necessary.

The annual transfer to reserves is included in the City’s Operating Budget. By increasing the annual transfer to reserves by one per cent, the City ensures that reserves are maintained and fluctuations in tax increases minimized. The use of reserves also allows the City to limit the dependency to borrow externally, which further reduces fluctuations in the annual tax increase.

The City of Richmond has $1.8 billion in capital assets, which includes roads, water and sewer works, dikes and drainage networks, buildings, vehicles, equipment, parks and trails and other physical property. Reserve funds are also used to support development of affordable housing, child care and other important community needs.

Annually, the City spends tens of millions of dollars to renew and upgrade its infrastructure and equipment. That means the City’s reserves must be constantly replenished to make sure money is available for future needs.

As part of the Long Term Financial Management Strategy, first adopted in 2003, City Council directed that an additional one per cent increase be added to property taxes annually to fund reserves. Through this policy, the City’s reserve accounts are steadily growing and approaching levels required to fund anticipated future community needs without burdening future generations.

Consequently, City Council is able to utilize these reserves to help fund critically-needed new community facilities, such as the planned new aquatic and older adult centres, without having any impact on property taxes from the construction cost of these facilities.

Average residential municipal taxes in comparable Metro Vancouver cities

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

$1,400

$1,300

$1,200

$1,100 Surrey Richmond Burnaby Coquitlam Vancouver

Documents

February 12, 2014