Public Consultation Thursday January 28 and Friday January 29, 2021

Proposed 2021 Operatingand Capital Budget

Presentation Outline

2

1. Strategic Focus under COVID Conditions

2. Renewing DWV’s Asset Management Strategy

3. 2021 Annual Financial Plan

4. 2021 Assessments and Taxes

5. 2021 Budget Timeline

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Strategic Focus under COVID conditions

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• there are greater and more urgent needs in the community than previously assumed

• there is more flexibility in operations than previously assumed

• rapid changes, and the need to pivot to accommodate them, are a given

• resources are limited, and must be allocated strategically

• a priority-based annual budget with targeted investment, and flexible terms, is crucial

• at the same time, the long-term needs of the community must also be considered

Key lessons from COVID

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Proposed Annual Budget

For 2021, the District’s proposed annual budget is based on the following principles:

1. Strategic focus: divisional workplans tied directly to Council’s strategic objectives

2. Productivity: resources allocated to produce maximum results

3. Outcomes: KPI’s in place and monitored

4. Transparency: regular reporting of progress towards objectives to Council and the public

5. Operational efficiency: Internal and external processes updated as needed

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Council’s Strategic Goals

Housing: Significantly expand affordability, diversity, and supply

Local Economy: Create vital and vibrant commercial centres

Climate Change & Nature: Protect, reduce impact, respond to

climate change

Mobility: Improve mobility, and reduce congestion

Municipal Services: Deliver services efficiently

Social Well-Being: Enhance the social well-being of the

community

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Renewing DWV’s

Asset Management

Strategy

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Asset Management: Situation

The District currently owns about $761M in assets (excluding utilities)

This equates to $47,563 per household, based on 16,000 households

Currently, staff estimate that $16.9M needs to be invested annually to

properly maintain these assets

The District cut almost $12.0M in revenues from its budget in 2020, in

order to react to the COVID pandemic

About $5.0M of these revenues have returned, but the District is still

behind

The chief impact of this is in funding for capital investment, which stands

at about $11.2M in the current 2021 budget

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Asset Management : Proposed Strategy

Capital Funding must become much more strategically targeted

The District needs to continue working to build up the asset levy –

the current proposal is for an increase of 3.00%

The District also needs to contribute other funds to capital

investment until the asset levy is sufficient on its own

Use of the Endowment Fund should be considered for major

priorities

Capital funding can be provided in two tranches – one in spring,

and a second tranche in summer, if additional funds can be

sourced

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20-Year 2020-2039 Asset Life-Cycle Replacement and Maintenance

$0

$5

$10

$15

$20

$25

$30

$35

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Mill

ion

s

Information Technology Transportation Infrastructure & EquipmentParks, Culture & Community Fire & RescuePolice LibraryFacilities Current Asset Management Tax Funding

20-Year Lifecycle Funding Requirement $14.5M5-Year Deferred Maintenance Requirement $37.6M

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20-Year 2021-2040 Asset Life-Cycle Replacement and Maintenance

$-

$5

$10

$15

$20

$25

$30

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Mill

ion

s

Information Technology Transportation Infrastructure & Equipment

Parks, Culture & Community Fire & Rescue

Police Library

Facilities Current Asset Management Tax Funding

Average Asset Management Capex Required

20-Year Lifecycle Funding Requirement $16.9M5-Year Deferred Maintenance Requirement $10.1M

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Changes to Dedicated Capital Funding

Annual Budget

Asset Levy Rate Increase

Asset Levy AmountAdded

Amount Available for

Capital Investment

Estimation of Required Optimal

Investment

Shortfall

2015 $ 7,400,000 $13,900,000 $ 6,500,000

2016 5.25% $3,000,000 $10,400,000 $13,900,000 $ 3,500,000

2017 2.45% $1,550,000 $11,950,000 $14,100,000 $ 2,150,000

2018 1.56% $1,050,000 $13,000,000 $14,500,000 $ 1,500,000

2019 1.76% $1,500,000 $14,500,000 $14,500,000 $ -

2020 0.00% $ - $ 7,828,000 $14,500,000 $(6,672,000)

2021 3.00% $2,280,000 $11,265,742 $16,928,463 $(5,662,721)

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2021 Annual Financial Plan

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2021 Preliminary Operating Budget

Increase/(Decrease) Tax Increase %

Labour changes $ 1,150,981 1.51%

Non-Labour Changes $ (778,886) -1.02%

Program Requests $ 1,406,429 1.85%

Sub-total $ 1,778,524 2.34%New construction revenue* $ (650,000) -0.86%

Operational Levy Increase $ 1,128,524 1.48%

Asset Levy Increase $ 2,280,000 3.00%

Total $ 3,408,524 4.48%

* Based on preliminary assessment data, subject to change

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Tax Rate OptionsOption 3

(recommended)Option 2 (medium)

Option 1 (low)

Base BudgetLabour Changes 1.51% 1.51% 1.51%Non-Labour Changes -1.02% -1.02% -1.02%New Programs 1.85% 1.85% 1.85%New Construction* -0.86% -0.86% -0.86%

Subtotal (%)Subtotal ($)CapitalAsset Levy (%) 3.00% 2.00% 1.00%Asset Levy ($) $2.280K $1.520K $760K

Grand Total (%) 4.48% 3.48% 2.48%Grand Total ($) $3.409K $2.649K $1.889K

* Based on preliminary assessment data, subject to change

1.48%$1.129K

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2021 Temporary Funding Requests

Funding Source

Provincial COVID Safe Restart Grant $5,000,000

Temporary Requests

Completion of Deferred Operational Efficiency Improvements

$1,023,967

Deferred Maintenance Remediation $209,350

Support for COVID affected Restart Programs $1,658,627

Support for Strategic Objectives $1,746,436

Total Temporary Requests $4,638,380

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2021 Preliminary Capital Budget

Requirement for: Total Requests

Regular Asset Maintenance $5,118,670

Strategic Investment $2,315,000

Health & Safety $868,970

Asset Preservation $10,345,870

Innovation $524,866

Total $19,173,376

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2021 Preliminary Capital Budget

Available Funding:

2021 Base Asset Levy Funds $11,265,742

2021 DCCs, External Funds, and Other Reserves $1,582,703

2021 Endowment Fund Contribution$3,197,000

Funding Available $16,045,445

Shortfall ($3,127,931)

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2021 Assessments and Taxes

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Proposed Property Tax Levy

1. 1 per cent property tax rate increase equals $760,000 of revenue to the District.

2. Impact of 1 per cent property tax rate increase on three typical properties:

*2021 average assessed value of a Single Family Detached property in West Vancouver

Assessed Value of Property

Proposed Tax Impact

$1.00 million $17

$2.98 million* $51

$5.00 million $86

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Preliminary Proposed IncreaseAverage Value Property

Property with the average assessment value = $2.98M

2020Taxes &

Fees

Proposed2021

Taxes & Fees

Y:Y Change

Proposed Increase/

(Decrease)

Operational Levy $5,113 $5,189 $76 1.48%

Incremental Asset Levy N/A $153 $153 3.00%

Water $728 $764 $36 4.95%

Sanitary/Storm Sewers $1,180 $1,270 $90 7.63%

Solid Waste $232 $252 $20 8.62%

Total Impact to Average Household $7,254 $7,629 $375 5.17%

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Preliminary Proposed IncreaseAverage Value Properties

All Class 1(residential)

Average StrataAverage Single

Family Detached

Average Assessed Value 2021 $2,608,594 $1,366,887 $2,977,283Average Assessed Value 2020 $2,525,961 $1,414,850 $2,855,051

Change from 2020 3.27% -3.39% 4.28%

OPERATING LEVY (1.48%)Annual $66 $35 $76Monthly $6 $3 $6

ASSET LEVY (3%)Annual $134 $70 $153Monthly $11 $6 $13

MUNICIPAL TAXAnnual $4,681 $2,453 $5,342Monthly $390 $204 $445

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2021 Assessed Value Change versus 2020

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2021 Budget Process

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North Shore News

Ads will appear in the North Shore News on Wednesday, January 13 and Wednesday, January 20

Online

Webpage (westvancouverite.ca/budget) to be updated with information on Wednesday, January 13

Website to include a form for the public to share comments and feedback from Tuesday January 26 to Tuesday February 9 at 4 p.m. The public may also share comments and feedback with staff via email

Video

Video from the Virtual Information Sessions will be posted online

The video will only feature the presentation by Isabel Gordon,

Director, Financial Services

2021 Budget Consultation

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October 2020Asset Management Task Group completes asset condition reports

November 2020 Departmental program requests submitted

December 2020 to January 2021 Preliminary divisional operating and capital budgets completed

January 25, 2021 Proposed 2021 Operating and Capital Budget report to be presented to Council

January 26 to February 9, 2021Online Budget Consultation

January 28 and 29, 2021

Virtual Budget Information Meetings: Thursday, January 28 | 6-7 p.m. via Webex and Friday, January 29 | 1-2 p.m. via Webex

Registration will not be required and details on how to join a Webex meeting will be shared at westvancouverite.ca/budget

March 8, 2021 Proposed 2021-2025 Five-Year Financial Plan Bylaw and Proposed 2021 Capital Funding Report to be presented to Council

2021 Budget Timeline

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Thank You!Questions?

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