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)
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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
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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
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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
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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
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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.
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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
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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.