HomeMy Public PortalAbout2022-2026 Financial Plan Bylaw 1408 TOWN OF OLIVER
BYLAW 1408
A bylaw to adopt the 5 year financial plan for the calendar years 2022 through 2026.
WHEREAS in accordance with Section 165 of the Community Charter, the Council is
required, by bylaw, to adopt a Financial Plan for the municipality before the fifteenth day of
May in each year;
NOW THEREFORE, the Council of the Town of Oliver in open meeting assembled hereby
enacts as follows:
1. Schedule "A" attached hereto and forming part of this bylaw is hereby adopted as the
5 Year Financial Plan of the Town of Oliver for the calendar years 2022 through 2026.
2. Schedule “B” attached hereto and forming part of this bylaw is hereby adopted as the
Statement of Objectives and Policies for the 5 Year Financial Plan of the Town of
Oliver for the calendar years 2022 through 2026.
3. This bylaw may be cited for all purposes as the "5 Year Financial Plan Bylaw 1408".
4. Authority to make expenditures in accordance with the 5 year financial plan is hereby
delegated to the following Management Staff:
1) Chief Administrative Officer
2) Chief Financial Officer
3) Deputy Finance Officer
4) Corporate Officer
5) Deputy Corporate Officer
6) Director of Operations
7) Manager of Public Works
8) Manager of Utilities
9) Director of Development Services
8) Fire Chief
9) Deputy Fire Chief
Read a first time on the 11th day of April, 2022.
Public consultation through a Public Hearing on the 25th day of April, 2022
Read a second and third time on the 25th day of April, 2022.
Adopted on the 9th day of May, 2022.
‘Original Signed by Mayor’ ‘Original Signed by Corporate Officer’
_____________________________ ________________________________
Mayor Corporate Officer
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TOWN OF OLIVER
5 Year Financial Plan Bylaw 1408
Schedule “A” – 5 Year Financial Plan – 2022 through 2026
2022 2023 2024 2025 2026
Budget Budget Budget Budget Budget
REVENUES
User Fees 3,998,951 4,197,428 4,412,871 4,618,793 4,823,677
Property taxation 3,444,496 3,714,088 3,841,464 3,967,445 4,094,619
Government transfers 1,540,950 1,072,485 1,917,239 976,838 979,233
Concessions and franchise 443,785 443,785 443,785 443,785 443,785
Gain (loss) on disposal of TCA - - - - -
Other revenue from own services 617,256 617,256 617,256 617,256 617,256
Sale of services 177,705 177,705 171,405 171,405 171,405
Investment income 40,000 40,000 40,000 40,000 40,000
Development cost charges - - - - -
Contributions from developers and
other 354,500 2,500 2,500 2,500 2,500
10,617,643 10,265,247 11,446,520 10,838,022 11,172,475
Transfer from Reserves
Sewer Capital Reserve 811,000 232,950 191,970 407,700 442,000
Water Capital Reserve 270,000 547,000 1,438,000 408,000 70,000
Capital Reserve
Community Works Fund 294,000 808,000 217,000 - -
Equipment Reserve 218,000 96,000 370,000 121,000 148,000
Fire Joint Reserve 155,700 4,300 4,400 2,500 -
Fire Town Reserve - 16,000 16,300 19,000 19,300
General Surplus 1,061,800 368,700 172,900 17,300 850,500
Land Reserve 399,975 - - - -
Road Capital - 78,000 - - -
Solid Waste
Policing - - - - -
Covid Safe Restart 131,152 20,000 20,000 - -
Accum Surplus 653,580 527,191 472,192 331,742 275,650
Total Transfer 3,995,207 2,698,141 2,902,762 1,307,242 1,805,450
Total Revenues 14,612,850 12,963,388 14,349,282 12,145,264 12,977,925
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TOWN OF OLIVER
5 Year Financial Plan Bylaw 1408
Schedule “A” – 5 Year Financial Plan – 2022 through 2026
2022 2023 2024 2025 2026
Budget Budget Budget Budget Budget
EXPENSES
Water Services 2,988,887 3,036,705 3,059,030 3,097,096 3,124,261
General Government Services 1,272,567 1,298,018 1,323,978 1,350,458 1,377,467
Sewer Services 1,211,019 1,243,186 1,294,690 1,321,229 1,361,750
Transportation services & public
works 1,549,512 1,580,502 1,612,112 1,644,354 1,677,241
Protective Services 1,683,511 1,717,181 1,751,525 1,786,556 1,822,287
Development Services 587,484 599,234 611,219 623,443 635,912
Environmental & public health
services 442,772 451,627 460,660 469,873 479,270
9,735,752 9,926,453 10,113,214 10,293,009 10,478,188
ADJUSTED FOR NON-CASH ITEMS
Amortization (1,444,857) (1,459,045) (1,473,517) (1,488,278) (1,503,335)
Inventory expense (30,500) (30,500) (30,500) (30,500) (30,500)
Prepaid expense (15,000) (15,000) (15,000) (15,000) (15,000)
Subtotal (1,490,357) (1,504,545) (1,519,017) (1,533,778) (1,548,835)
ADJUSTED FOR NON-CASH ITEMS
Capital asset expenditures 7,517,200 2,308,950 3,449,400 7,089,300 2,641,100
Inventory expenditures 30,500 30,500 30,500 30,500 30,500
Prepaid expenditures 15,000 15,000 15,000 15,000 15,000
Debt principle repayments 391,562 606,318 602,381 614,699 626,246
Debt proceeds (2,813,900) - (45,500) (6,090,000) (1,092,000)
5,140,362 2,960,768 4,051,781 1,659,499 2,220,846
Transfer to Reserves
Sewer Capital 234,756 332,733 318,809 340,982 322,718
Water Capital 198,589 389,987 573,064 705,241 872,440
Climate Action 450 450 450 450 450
Community Works Fund 274,770 277,518 280,293 - -
Equipment Reserve 197,026 197,026 197,026 197,026 197,026
Equipment Self Insured 9,000 9,000 9,000 9,000 9,000
Fire Town 52,600 52,600 52,600 52,600 52,600
General Surplus 250,431 312,394 263,058 412,231 364,488
Solid Waste 5,467 5,000 5,000 5,000 5,000
Tucelnuit Water Trust 3,344 3,344 3,344 3,344 3,344
Water Capital Charge 660 660 660 660 660
1,227,093 1,580,712 1,703,304 1,726,534 1,827,726
Total Expenses 14,612,850 12,963,388 14,349,282 12,145,264 12,977,925
FINANCIAL PLAN BALANCE 0 0 0 0 0
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TOWN OF OLIVER
5 Year Financial Plan Bylaw 1408
Schedule “B” - Statement of Objectives and Policies
In accordance with Section 165(3.1) of the Community Charter, the Town of Oliver (Town) is
required to include in the Five Year Financial Plan, objectives and policies regarding each of the
following:
1. The proportion of total revenue that comes from each of the funding sources described
in Section 165(7) of the Community Charter;
2. The distribution of property taxes among the property classes, and
3. The use of permissive tax exemptions
Funding Sources
Table 1 below shows the proportion of total revenue anticipated to be raised from each funding
source in 2022 for the consolidated operating and capital budget.
Property taxes form approximately 15.8% of the overall funding sources of the municipality. The
system of property taxation is relatively easy to administer and understand. It provides a stable
and consistent source of revenue for many services that are difficult or undesirable to fund on a
user-pay basis. These include services such as police services, general administration, fire
protection, bylaw enforcement, snow removal, road maintenance, airport, and community
buildings. For these reasons, property taxation will continue to be a substantial source of
municipal revenue.
The greatest source of municipal revenue is from user fees and sales of services. User fees
attempt to apportion the value of a service to those who use the service. Approximately 88% of
this user fee revenue represents water and sewer charges. Water and sewer system users fully
pay for the costs of these systems, without subsidy from property taxes. The municipality strives
to calculate full cost user fees for these services, which includes not only direct but indirect
costs such as administration and operating overhead.
Objectives
• Over the next five years, where possible, the Town will endeavour to supplement
revenues from user fees and charges, rather than taxation, to lessen the burden on its
limited property tax base.
• Investigate other potential funding sources and securing opportunities for additional
revenues.
Policies
• The Town will review all user fee levels to ensure they are adequately meeting both the
capital and delivery costs of the service.
• The Town will endeavour to review and adjust user fees to maintain competitiveness
with other municipalities or market rates.
• Aggressively seek available grants for projects to mitigate the potential impact on
property taxation rates.
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TOWN OF OLIVER
5 Year Financial Plan Bylaw 1408
Schedule “B” - Statement of Objectives and Policies
Table 1 – Sources of Funding (2022)
Funding Source % Total
Funding
Dollar Value
User fees and sale of services 25.8% $4,176,656
Grants 9.5% $1,540,950
Municipal Taxation, net 15.8% $2,556,290
Reserves, net 17.0% $2,768,114
Other sources 9.6% $1,553,093
Parcel taxes 4.9% $790,654
Development cost charges 0.0% $0
Debt 17.4% 2,813,900
TOTAL 100% $16,199,657
Distribution of Property Tax Rates
Table 2 below shows the distribution of property tax revenue among the property classes. The
residential property class provides the largest proportion of property tax revenue. This is
appropriate as this class also forms the largest portion of the assessment base and consumes
the majority of Town services.
Objectives
• Allow for a maximum business multiple not to exceed the Provincial multiple established
by British Columbia Regulations 426/2003 and 439/2003 for the business class.
• Ensure that business and light industry property tax multiples continue to be equal.
• Over the next five years maintain tax stability by keeping the proportionate relationship
between all other classes equal.
• Over the next five years the property tax increases will ensure that the rate payers will
reduce the financial burden associated with expected futures costs for the Town.
Policies
• Supplement, where possible, revenues from user fees and charges to help offset the
burden on the entire property tax base.
• Continue to apply additional taxes that would have been collected from new non-
residential development against the tax increases in those classifications. This results in
slowly reducing the proportions of taxes paid by the commercial sector in relation to the
residential sector.
• Regularly review and compare the Town’s distribution of tax burden relative to other
municipalities in the South Okanagan.
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Table 2 – Distribution of Property Tax Rates (2022)
Property class % Property
Value Tax
Dollar Value
Residential (1) 75.6% $1,929,351
Business (6) 19.0% $486,796
Utility (2) 3.5% $90,221
Light Industry (5) 1.7% $44,059
Recreation (8) & Farm (9) 0.2% $5,863
TOTAL 100% $2,556,290
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TOWN OF OLIVER
5 Year Financial Plan Bylaw 1408
Schedule “B” - Statement of Objectives and Policies
Permissive Tax Exemptions
The Community Charter permits council to provide permissive tax exemptions for a period of up
to 10 years for specific types of properties. Council adopted a 4 year bylaw, pursuant to section
224 of the Community Charter, which is in effect for 2022. The Annual Municipal Report for
2021 contains a list of permissive exemptions and the amount of tax revenue foregone. The list
demonstrates the policy of council that permissive exemptions are granted to not-for-profit
institutions that form a valuable part of our community.
Many property tax exemptions are provided to properties automatically by the Assessment
Authority of BC. For example, properties owned by the municipality or other levels of government
are exempted 100%. Other properties such as churches and hospitals are generally exempted
only for buildings and the land directly beneath the footprint of the building.
Objectives
• Council’s principle objective in considering permissive tax exemptions under section 224
is to provide financial assistance to organizations that provide a valuable service to the
broader community. These services may include cultural and recreational opportunities
for adults and youth, promotion of the local economy and local charitable services.
• Council’s principle objective in considering permissive tax exemptions under section 226
is to provide a short-term financial incentive to promote certain types of economic
development.
Policies
• Provide permissive tax exemptions for all qualifying land uses to those organizations that
provide valuable services to the broader community.
• Integrate the revitalization tax exemption program into the Town’s existing initiatives as a
means of attracting retail, commercial and industrial businesses to further invest in the
community.