Loading...
HomeMy Public PortalAboutFive Year Financial Plan Bylaw 1421 TOWN OF OLIVER BYLAW 1421 A bylaw to adopt the 5 year financial plan for the calendar years 2024 through 2028. 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: Citation 1. This bylaw may be cited for all purposes as the "5 Year Financial Plan Bylaw 1421. 2. That 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 2024 through 2028. 3. That Schedule "B", attached hereto and forming part of this bylaw is hereby adopted as the 5 Year Capital Plan of the Town of Oliver for the calendar years 2024 through 2028. 4. That Schedule “C”, 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 2024 through 2028. 5. That 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 Chiefs (2) - 2 - Read a first, second and third time on the 11th day of March, 2024. Adopted on the 2nd day of April, 2024. "Original signed by Mayor" "Original signed by Corporate Officer" _____________________________ ________________________________ Mayor Corporate Officer - 3 - 2024 2025 2026 2027 2028 Budget Budget Budget Budget Budget REVENUES User Fees 5,146,144 5,412,217 5,683,958 5,965,696 6,257,902 Property taxation 4,144,340 4,353,705 4,542,083 4,739,005 4,944,868 Government transfers 3,186,109 6,067,020 7,893,240 8,015,772 7,396,620 Concessions and franchise 647,994 647,994 647,994 647,994 647,994 Gain (loss) on disposal of TCA 0 0 0 0 0 Other revenue from own services 1,223,420 1,312,172 1,320,119 1,307,744 1,318,085 Sale of services 197,536 192,602 193,982 195,376 196,783 Investment income 400,000 320,000 288,000 259,200 259,200 Development cost charges 0 0 0 0 0 Contributions from developers and other 12,100 12,100 12,100 12,100 12,100 14,957,643 18,317,810 20,581,476 21,142,887 21,033,552 EXPENSES Water Services 3,802,120 3,838,616 3,886,074 4,162,886 4,221,046 General Government Services 1,465,192 1,523,800 1,569,514 1,608,752 1,640,927 Sewer Services 1,449,302 1,474,254 1,499,705 1,525,664 1,552,143 Transportation services & public works 1,751,826 1,821,899 1,876,556 1,923,470 1,961,939 Parks & Recreation 2,379,331 2,474,504 2,548,739 2,612,457 2,664,706 Protective Services 1,895,120 2,120,925 2,184,553 2,239,167 2,283,950 Development Services 675,382 702,397 723,469 741,556 756,387 Environmental & public health services 453,457 471,595 485,743 497,887 507,845 13,871,730 14,427,990 14,774,355 15,311,838 15,588,943 SURPLUS (DEFICIT) FOR THE YEAR 1,085,913 3,889,820 5,807,121 5,831,049 5,444,609 ADJUSTED FOR NON-CASH ITEMS Amortization 1,767,938 1,712,021 1,729,686 1,764,044 1,771,729 Inventory expense 30,500 30,500 30,500 30,500 30,500 Prepaid expense 15,000 15,000 15,000 15,000 15,000 1,813,438 1,757,521 1,775,186 1,809,544 1,817,229 TOTAL CASH FROM OPERATIONS 2,899,351 5,647,341 7,582,307 7,640,593 7,261,838 ADJUSTED FOR CASH ITEMS Capital asset expenditures -5,203,000 -5,521,000 -13,869,000 -7,250,000 -7,748,000 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 -573,185 -564,364 -397,285 -568,571 -585,095 Debt proceeds 0 0 5,695,000 0 1,655,000 Transfer from (to) reserves 4,665,514 2,607,840 3,460,340 2,440,340 1,929,340 Transfer from (to) surplus -1,743,180 -2,124,317 -2,425,862 -2,216,862 -2,467,583 -2,899,351 -5,647,341 -7,582,307 -7,640,593 -7,261,838 FINANCIAL PLAN BALANCE - - - - - TOWN OF OLIVER 5 Year Financial Plan Bylaw 1421 Schedule A - 5 Year Financial Plan - 2024 to 2028 - 4 - TOWN OF OLIVER 5 Year Financial Plan Bylaw 1421 Schedule B - 5 Year Capital Plan - 2024 to 2028 GENERAL FUND CAPITAL PROJECTS 2024 2025 2026 2027 2028 ALL YEARS Total Finance 82,711 82,711 82,711 82,711 82,711 413,555 Total Fire Department 403,100 60,600 60,600 60,600 20,000 604,900 Total Public Works 1,762,500 2,132,500 1,639,500 4,035,000 4,710,000 14,279,500 Total Corporate Services 9,000 - - - - 9,000 Grand Total 2,257,311 2,275,811 1,782,811 4,178,311 4,812,711 15,306,955 FUNDING SOURCES 2024 2025 2026 2027 2028 ALL YEARS BC Growing Communities Fund 761,000 27,000 400,000 - - 1,188,000 Climate Action Reserve 70,000 - - - - 70,000 Cemetery Trust - - 40,000 - - 40,000 Community Works Fund 265,000 - 815,000 - - 1,080,000 Proceeds from Debt - - - - 1,655,000 1,655,000 Equipment Replacement Reserve 120,000 260,000 70,000 - 70,000 520,000 Fire Department Joint Reserve with OFPD 309,000 41,000 41,000 41,000 - 431,000 Grants 95,000 1,253,000 - 3,065,000 2,760,000 7,173,000 General Reserve 637,000 695,000 418,000 1,073,000 328,000 3,151,000 Grand Total 2,257,000 2,276,000 1,783,000 4,178,000 4,813,000 15,307,000 SEWER FUND CAPITAL PROJECTS 2024 2025 2026 2027 2028 ALL YEARS Public Works 485,000 1,153,000 1,140,000 1,401,000 1,770,000 5,949,000 Grand Total 485,000 1,153,000 1,140,000 1,401,000 1,770,000 5,949,000 FUNDING SOURCES 2024 2025 2026 2027 2028 ALL YEARS Grants - 250,000 375,000 581,000 1,070,000 2,276,000 Sewer Capital Reserve 485,000 903,000 765,000 820,000 700,000 3,673,000 Grand Total 485,000 1,153,000 1,140,000 1,401,000 1,770,000 5,949,000 WATER FUND CAPITAL PROJECTS 2024 2025 2026 2027 2028 ALL YEARS Public Works 2,460,500 2,092,000 10,945,000 1,670,000 1,165,000 18,332,500 Grand Total 2,460,500 2,092,000 10,945,000 1,670,000 1,165,000 18,332,500 FUNDING SOURCES 2024 2025 2026 2027 2028 ALL YEARS Proceeds from Debt - - 5,695,000 - - 5,695,000 Grants - 1,442,000 4,305,000 885,000 350,000 6,982,000 Water Capital Reserve 2,461,000 650,000 945,000 785,000 815,000 5,656,000 Grand Total 2,461,000 2,092,000 10,945,000 1,670,000 1,165,000 18,333,000 - 5 - TOWN OF OLIVER 5 Year Financial Plan Bylaw 1421 Schedule B - 5 Year Capital Plan - 2024 to 2028 GRAND TOTAL CAPITAL PROJECTS 2024 2025 2026 2027 2028 ALL YEARS Total All Departments 5,203,000 5,521,000 13,868,000 7,249,000 7,748,000 39,588,000 FUNDING SOURCES 2024 2025 2026 2027 2028 ALL YEARS BC Growing Communities Fund 761,000 27,000 400,000 - - 1,188,000 Climate Action Reserve 70,000 - - - - 70,000 Cemetery Trust - - 40,000 - - 40,000 Community Works Fund 265,000 - 815,000 - - 1,080,000 Proceeds from Debt - - 5,695,000 - 1,655,000 7,350,000 Equipment Replacement Reserve 120,000 260,000 70,000 - 70,000 520,000 Fire Department Joint Reserve with OFPD 309,000 41,000 41,000 41,000 - 431,000 Grants 95,000 2,945,000 4,680,000 4,531,000 4,180,000 16,431,000 General Reserve 637,000 695,000 418,000 1,073,000 328,000 3,151,000 Sewer Capital Reserve 485,000 903,000 765,000 820,000 700,000 3,673,000 Water Capital Reserve 2,461,000 650,000 945,000 785,000 815,000 5,656,000 Grand Total 5,203,000 5,521,000 13,868,000 7,249,000 7,748,000 39,589,000 - 6 - TOWN OF OLIVER 5 Year Financial Plan Bylaw 1421 Schedule “C” - 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 2023 for the consolidated operating and capital budget. Property taxes form approximately 17.0% (19.5% in 2023) 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. User fees represent 29.9% of our revenues (31.3% in 2023). User fees attempt to apportion the value of a service to those who use the service. Approximately 70% 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. - 7 - TOWN OF OLIVER 5 Year Financial Plan Bylaw 1421 Schedule “C” - Statement of Objectives and Policies Table 1 – Sources of Funding (2024) Funding Source % Total Funding Dollar Value User fees and sale of services 29.8% $5,343,680 Grants 24.8% $4,437,309 Municipal Taxation, net 17.0% $3,030,256 Reserves, net 7.4% $2,922,334 Other sources 16.4% $1,320,544 Parcel taxes 4.6% $825,854 TOTAL 100.0 $17,879,977 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. Table 2 – Distribution of Property Tax Rates (2024) Property class % Property Value Tax Dollar Value Residential (1) 74.0% $2,242,114 Business (6) 20.1% $608,423 Utility (2) 3.5% $107,530 Light Industry (5) 2.1% $63,337 Recreation (8) & Farm (9) 0.3% $8,852 TOTAL 100.0% $3,030,256 - 8 - TOWN OF OLIVER 5 Year Financial Plan Bylaw 1421 Schedule “C” - 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 (Bylaw 1398), pursuant to section 224 of the Community Charter, which is in effect for 2024. The Annual Municipal Report for 2022 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.