2012-2016 capital budget review - north cowichan · funding genoa bay road rock scaling through the...
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Municipality of North Cowichan2012-2016 Capital Budget Review
February 6th, 2012
Class 4 ChallengesCatalyst Paper comprises 88.8% of Class 4 taxes. Their 2011 general municipal taxes were $5.6 million and 26% of North Cowichan’s property tax revenue. The company is suffering significant financial hardships and have now commenced proceedings under the Companies’ Creditors Arrangement Act (CCAA).
Challenges Reduce North Cowichan’s dependency on a single tax payer Transfer the tax burden to other tax classes
Financial Risk to North Cowichan’s Revenue There is the potential for a dramatic reduction in major industry
assessment in the event of a mill closure The company could default on their 2012 taxes
5 Year Tax Increases
2012 2013 2014 2015 2016
Gross tax increase 7.95% 5.17% 5.02% 4.99% 4.86%
Less: Growth 1.50% 1.50% 1.50% 1.50% 1.50%
Net Tax Increase 6.45% 3.67% 3.52% 3.49% 3.36%
Less: Capital increase/(decrease)
1.26% 1.81% 1.83% 1.60% 0.28%
Net Operating TaxIncrease
5.19% 1.86% 1.69% 1.89% 3.09%
Increase per Average Home
61 39 38 39 40
Increase per $100,000 assessment
18 11 11 12 12
Potential Cost Savings
Operating2012
Original2012
Amended2012
Savings
Human Resources – Training/Assess. 14,000 7,000 7,000
Legal Fees 102,000 75,000 27,000
RCMP Building Maintenance 53,860 30,000 23,860
Street Lighting 359,000 332,000 27,000
Supervision and Flat Rate Equipment 26,530 16,530 10,000
Drainage Study 50,000 - 50,000
Tipping Fees 387,375 377,000 10,375
Zoning Bylaw Revision 40,000 20,000 20,000
University Village Plan 60,000 30,000 30,000
Cowichan Aquatic Centre 1,410,198 1,295,451 114,747
Muni Hall Building – Interest 37,500 - 37,500
Total Savings 2,587,463 2,229,981 357,482
5 Year Tax Increases - Updated for Savings
2012 2013 2014 2015 2016
Gross tax increase 5.81% 7.52% 4.80% 4.99% 4.86%
Less: Growth 1.50% 1.50% 1.50% 1.50% 1.50%
Net Tax Increase 4.31% 6.02% 3.52% 3.49% 3.36%
Less: Capital increase/(decrease)
.80% 2.29% 1.83% 1.60% 0.28%
Net Operating TaxIncrease
3.51% 3.74% 1.47% 1.89% 3.09%
Increase per Average Home
41 61 36 39 40
Increase per $100,000 assessment
12 18 11 12 12
Capital Fund Revenue Sources Property Taxes (Target $3.4 million – recommended 15% of
Property Taxes) 2012 Proposed Budget - $3,046,280 (13.22%) 2011 Budget - $2,776,520 (13.00%)
Potential Property Tax Savings Funding Genoa Bay Road Rock Scaling through the Roads Program -
$100,000
2012 Proposed Budget with Savings - $2,946,280 (13.04%)
Sources of Financing Capital projects are financed through a variety of sources
including: General Revenue Gas Tax Revenue Appropriated Surplus Reserve Funds Development Cost Charges Government Grants Other Contributions Debt
Only general revenue is funded directly from property taxes
2012-2016 Capital Budget Overview2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
General Government 10,000 50,000 10,000 10,000 10,000
Land Acquisition & Development 1,770,000 180,000 570,000 170,000 170,000
Municipal Property Improvements 3,203,350 208,000 212,160 216,403 220,731
Information Services 239,000 234,790 204,790 249,790 254,790
Community Development 2,280,000 2,440,000 925,000 2,600,000 1,550,000
Protective Services: Police & Other 500,000 - 4,000,000 4,000,000 -
Protective Services: Fire 29,400 488,388 30,000 507,805 30,400
Forestry - - - 36,000 36,000
Transportation 14,624,636 8,495,900 4,682,486 5,034,703 4,907,103
Parks & Culture 351,830 344,380 469,670 469,960 445,960
Total 23,008,216 12,441,458 11,104,106 13,294,661 7,624,984
2012-2016 Capital Budget Overview2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
General Revenue 3,046,280 3,462,570 3,907,270 4,315,603 4,339,281
Gas Tax Revenues 791,000 791,000 791,000 791,000 791,000
Appropriated Surplus 895,000
Reserve Funds 4,543,561 2,287,888 1,042,836 2,413,058 1,084,703
Development Cost Charges 167,000 190,000 403,000 220,000 230,000
Government Grants 8,864,667 3,986,667 600,000 1,175,000 800,000
Other Contributions 979,708 737,333 60,000 80,000 80,000
Short Term Debt 137,000
Debenture Debt 3,584,000 986,000 4,300,000 4,300,000 300,000
Total Sources of Financing 23,008,216 12,441,458 11,104,106 13,294,661 7,624,984
2012-2016 General Government2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Office Furniture & Equipment 10,000 10,000 10,000 10,000 10,000
Office Vehicles 40,000
Total General Government 10,000 50,000 10,000 10,000 10,000
General Revenue 10,000 10,000 10,000 10,000 10,000
Office Vehicle Reserve 40,000
Total Sources of Financing 10,000 50,000 10,000 10,000 10,000
Sources of Financing
2012-2016 Land Acquisition & Development2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Land Acquisition 120,000 120,000 120,000 120,000 120,000
Land Development 60,000 60,000 50,000 50,000 50,000
Total Land Acquisition &Development 1,770,000 180,000 570,000 170,000 170,000
Sale of Land Reserve 1,770,000 180,000 570,000 170,000 170,000
Sources of Financing
Hwy 18 Industrial Lots 950,000
Cassino Road Development 640,000 400,000
2012-2016 Municipal Property Improvements2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Municipal Hall 3,000,000
RCMP Building (South End) 17,750
Total Municipal Property Improvements 3,203,350 208,000 212,160 216,403 220,731
General Revenue 203,350 208,000 212,160 216,403 220,731
Debenture Debt 3,000,000
Total Sources of Financing 3,203,350 208,000 212,160 216,403 220,731
Sources of Financing
Crofton Fire Hall 6,500
Chemainus Fire Hall 30,000
Building Maintenance 149,100 208,000 212,160 216,403 220,731
2012-2016 Information Services2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
PC Evergreen 37,000 54,790 54,790 54,790 54,790
Software Upgrade Ph2 40,000 60,000 40,000 40,000 40,000
Total Information Services 239,000 234,790 204,790 249,790 254,790
General Revenue 189,000 234,790 204,790 249,790 254,790
Appropriated Surplus 50,000
Sources of Financing
Server Upgrade 50,000 50,000 50,000 50,000 50,000
Website Implementation 50,000
Council Chambers A/V Equip 40,000
Backup Software & Equip 30,000 65,000
Sharepoint Server 50,000
Connectivity – Offices 10,000 20,000 30,000 40,000 50,000
Small Equipment 12,000
Other 60,000
2012-2016 Community Development2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Visitor Information Centre 440,000
Somenos Marsh Rainwtr\Swr 150,000
Chemainus Festival Square Pl. 60,000
Chemainus Skate Park 350,000
Chemainus Community Ctr 60,000 1,500,000 500,000
Chemainus Dog Park 90,000
Chemainus Seawalk 250,000 350,000
Osborne Bay Sea Trail 800,000
Crofton Skate Park 200,000
Sherman Rd All Weather Field 1,500,000
Cowichan Commons Trail 220,000
Chemainus Revitalization 200,000 300,000
2012-2016 Community Development Cont.2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Multi-Use Trails 100,000 150,000 200,000 250,000
University Village 125,000 500,000
Community Revitalization 400,000
Total Community Development 2,280,000 2,440,000 925,000 2,600,000 1,550,000
Crofton Waterfront 400,000 400,000
Maple Bay Wharf Upgrade 300,000
2012-2016 Community Development Financing
2012 Budget
2013 Budget
2014 Budget
2015 Budget
2016 Budget
General Revenue 300,000 537,500 832,500 953,000 1,100,000
Grants 450,000 700,000 575,000 200,000
Parks DCC’s 20,000 30,000 40,000 50,000
Sale of Land Reserve 1,205,000 1,182,500 62,500 1,032,000 200,000
Appropriated Surplus 325,000
Total Sources of Financing 2,280,000 2,440,000 925,000 2,600,000 1,550,000
Sources of Financing
2012 Community DevelopmentGeneral Revenue
Sale of Land
Reserve
Gov’t Grants
Appr.Surplus
Osborne Bay Sea Trail Network 100,000 400,000 300,000
Chemainus Revitalization 200,000
Visitor Information Centre 115,000 325,000
Chemainus Library 60,000
Chemainus Skate Park 350,000
Chemainus Community Centre 60,000
Cowichan Common Trails 220,000
Somenos Marsh Rainwtr\Swr\Trail 150,000
Total Community Development 300,000 1,205,000 450,000 325,000
2012-2016 Police & Other2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
RCMP Building (Duncan) 500,000 4,000,000 4,000,000
Total Police & Other 500,000 4,000,000 4,000,000
Debenture Debt 4,000,000 4,000,000
Appropriated Surplus 500,000
Sources of Financing
2012-2016 Fire Protection2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Chemainus Fire Fighting Equip 10,000 10,000 10,000 10,000 10,000
Crofton Fire Fighting Equip - - - - -
Total Fire Protection 29,400 488,388 30,000 507,805 30,400
Fire Equipment Reserve 29,400 30,000 30,000 30,000 30,400
Fire Truck Reserve 458,388 477,805
Total Sources of Financing 29,400 488,388 30,000 507,805 30,400
Sources of Financing
Maple Bay Fire Fighting Equip 10,000 10,000 10,000 10,000 10,200
South End Fire Fighting Equip 9,400 10,000 10,000 10,000 10,200
Crofton Pumper 458,388
Maple Bay Pumper 477,805
2012-2016 Forestry2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Forestry Vehicles - - - 36,000 36,000
Total Forestry - - - 36,000 36,000
Forestry Vehicle Replacement - - - 36,000 36,000
Sources of Financing
2012-2016 Transportation2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Engineering Office Equipment 16,700 16,700 16,700 16,700 16,700
Mach & Equip P/W 599,245 397,000 380,336 407,253 388,303
Mach & Equip Garbage 674,791 260,000 260,000
Compost Containers 290,000
Roof Repairs/Renovation 50,900 175,000 175,000
Road Capital 2,775,000 2,830,000 2,888,000 2,945,000 3,004,000
Crosswalk Lighting 31,200 32,450 33,750 35,100
Rock Scaling 100,000 5,000
Drainage Capital 280,000 286,000 290,000 297,000 303,000
Flood Control 4,820,000 4,930,000 900,000 900,000 900,000
Chemainus River Bridge 5,018,000
Total Transportation 14,624,636 8,495,900 4,682,486 5,034,703 4,907,103
2012-2016 Transportation Financing
2012 Budget
2013 Budget
2014 Budget
2015 Budget
2016 Budget
General Revenue 2,184,600 2,127,900 2,178,150 2,416,450 2,307,800
Fuel Tax Revenue 791,000 791,000 791,000 791,000 791,000
Reserve – Equip Replace 599,245 397,000 380,336 407,253 388,303
Reserve – Garbage Trucks 674,791 260,000 260,000
Pollution Prevention 153,000
DCC – Roads 167,000 170,000 173,000 180,000 180,000
DCC – Drainage 200,000
Other Contributions 919,333 737,333 60,000 80,000 80,000
Short Term Debt 137,000
Debenture Debt 584,000 986,000 300,000 300,000 300,000
Grants 8,414,667 3,286,667 600,000 600,000 600,000
Total Sources of Financing 14,624,636 8,495,900 4,682,486 5,034,703 4,907,103
Sources of Financing
2012 Transportation
Gen
eral
R
even
ue
Fuel
Tax
Res
erve
s
DC
C’s
Gra
nts
Oth
er
Con
trib
utio
n
Shor
t Ter
m
Deb
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Deb
entu
re
Deb
t
Engineering Office Equip 16,700
Mach & Equip P/W 599,245
Mach & Equip Garbage 674,791
Compost Containers 153,000 137,000
Roof Repairs 50,900
Roads Capital 1,737,000 791,000 167,000 80,000
Rock Scaling 100,000
Drainage Capital 280,000
Flood Control 3,396,667 839,333 584,000
Chemainus River Bridge 5,018,000
Total Financing 2,184,600 791,000 1,427,036 167,000 8,494,667 839,333 137,000 584,000
2012-2016 Recreation & Culture2012
Budget2013
Budget2014
Budget2015
Budget2016
Budget
Parks Capital 119,500 200,000 250,000 250,000 250,700
Fuller Lake Arena 25,000 130,000 180,000 180,000 180,000
Total Recreation & Culture 351,830 344,380 469,670 469,960 445,960
General Revenue 159,330 344,380 469,670 469,960 445,960
Sale of Land Reserve 112,125
Other Contribution (Duncan) 60,375
Appropriated Surplus 20,000
Total Financing 351,830 344,380 469,670 469,960 445,960
Sources of Financing
Chem Wharf Power Meter 20,000
Evans Park Fields 172,500
Cemetery 14,830 14,380 39,670 39,960 15,260
5 Year Tax Increases - Compared
2012 2013 2014 2015 2016
Gross tax increase 7.95% 5.17% 5.02% 4.99% 4.86%
Gross tax increase - new 5.81% 7.52% 4.80% 4.99% 4.86%
Net Tax Increase 6.45% 3.67% 3.52% 3.49% 3.36%
Net Tax Increase - new 4.31% 6.02% 3.52% 3.49% 3.36%
Capital increase 1.26% 1.81% 1.83% 1.60% 0.28%
Capital increase - new .80% 2.29% 1.83% 1.60% 0.28%
Net Operating TaxIncrease
5.19% 1.86% 1.69% 1.89% 3.09%
Net Operating TaxIncrease - new
3.51% 3.74% 1.47% 1.89% 3.09%
Next Steps (Proposed)
DATE ITEMFebruary 13th Proposed utility rates presented. Committee of the Whole finalizes Financial
Plan for open house
February 15th 2012-2016 Financial Plan open house
March 21st Utility rates (2012) bylaw will be introduced for first three readings
April 2nd Council workshop on distribution of tax rates
April 18th Financial Plan bylaw introduced for first three readings
April 23th Adjustments to tax rates
May 2nd First three readings of 2012 Tax Rates bylaw, adopt Financial Plan
May 4th Adopt Tax Rates Bylaw