2013 Municipal Budget

Financial Plan Public Hearing

February 19, 2013

Overview

Council’s Priorities Quality of life Controlled growth Efficiency Sustainability Prudent financial management

Format

Revenue Operating Expenses Major Initiatives – Capital Budget Utility Reserves and Debt Summary Questions

Revenue - Assessment

Assessment largely residential 2 ½% residential growth in 2012

Reassessment each 2 years makes long-term comparisons impossible

2012 total assessment $71.420 million 2013 “ “ $72.878 “

Year-over-year growth 2.0% Growth = inflation

Revenue – Taxes

Average annual increase 1.5%

Revenue – Other Income

Varies depending on revenue from province, grants, etc.

Bump in 2013 due to expected growth

Revenue - Total

Expected Revenue in 2013: General Taxes $851,300 Local Improvement Taxes (Utility) 137,800 Other Revenue 323,900 Transfer from Reserves 218,100 Total $1,531,100*

*2012 Actual $1,655,000. The major difference is in transfer of McCaughan sub-division roads, valued at $190,000.

Operating Expenses

Overall Historical Expenses (less Utility) Increase related to

increased operating spending

Expenses exactly match revenue - $1,531,100

2008 – 2011 actual expenditures; 2012 estimated; 2013 budget

Operating Expenses – General Government Involves office costs

and expenses relating to whole of government, such as the cost of tax assessment

Non-capital spending Powersmart lighting

upgrade Repair foundation

Operating Expenses – Protective

Services Fire protection, emergency measures, 9-1-1 response

2011 spike due to flood, reimbursement in 2012 reducing numbers

No major changes

Operating Expenses – Transportation Public works: roads,

drainage work, gravel, dust control, snow, grass, street lighting

Share operator with Environmental Health

No real reduction change after applying provincial accounting rules to cash budget

Operating Expenses – Environment Nuisance grounds,

recycling, sewage lagoon

Share operator with Transportation

New pit, $10,000 Wastewater

Management Plan $5,000

Operating Expenses – Public Health and Welfare Fee paid to Province to

cover welfare costs

Operating Expenses – Economic Development Building

inspection, planning, zoning

2012 drop due to using temporary building inspector for much of year

Operating Expenses – Environmental Development Pest control, weed

control, drainage costs

Increases reflect increased work on drainage (non-flood related), and internal accounting move of drainage accounts

Operating Expenses – Recreation, Culture Grants to

organizations, parks and playgrounds

SFX CC Assessment, $6,000

SFX CC grant for washroom improvements, $8,000

Increased grants, $4,000

Operating Expenses - Debt

Debt includes general (e.g., fire trucks) and utility (e.g., water west)

Debt analyzed further on in presentation

No new or retired debt

2012 Surplus

Large surplus in 2012 before transfer to reserves – everything broke our way Taxes added $32,000 Fire Department highway calls $16,000 SFX Trailer Park use of lagoon $16,000 2011 census led to grant increase $8,000 Capital levies $56,000 Transfer of Stanley Cove roads $190,000 Expenditures generally under budget

Operating Expenses – Contribution to Reserves Reserves used to

pay for capital projects

Reserve contributions are treated as an operating expense

Reserves based on a 20-year capital plan

Capital Program - 1

IT Upgrades, office $ 1,300 Fire Department Turnout Gear 3,800 Fire Department Tanker Replace. 10,000 Fire Department Wildfire Truck 18,000 Road network, Landfill 21,000 Lagoon expansion License 5,000 Trailer, shed, Landfill 23,000 Fencing, Landfill 10,000

Capital Program - 2

Repair crawler/loader 25,000 Skateboard point

60,000 New furniture, Council

10,000 Sustainability – trail network

10,000 TOTAL CAPITAL

$197,100

Utility - 1

Charges unchanged since 2008

Surplus less each year as costs increase

Rate review to be finalized in 2013

2012: hot weather = high consumption

2012: assume assets, $315,000

Utility - 2

Utility Capital 1 x fire hydrants 17,000 Software upgrades 1,300 Radio frequency water meters 21,000 TOTAL $,39,300

Utility Reserves As at end 2011 $351,000 Sufficient for major emergencies

Clean water lines in 2013

Reserves Accumulation

Based on 20-year capital plan

Aim to cover most of major capital items with cash, not borrowing

Chart shows end-of-year balance

Spike due to major residential development

Debt

2008 Fire truck, $172,000 At large

2009 Water west, $243,000 Specific properties

Chart shows end of year balances expected 0

200000

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600000

800000

1000000

1200000

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1600000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Summary

No tax increase Costs rise each year and residential growth is

necessary to prevent tax increases in future Most capital dedicated to sustainability –

roads, environment, quality of life Debt load currently moderate, decreasing

quickly Utility in deficit soon without rate review

Questions?