City of Revelstoke Council Report

File No.: 1880-20

To: His Worship Mayor McKee and Members of City Council

From: Graham Inglis, Director of Finance

Date: February 18, 2016

Subject: 2016-2020 Financial Plan

RECOMMENDATION:

That Bylaw 2104, being a bylaw for the purpose of adopting the 2016-2020 Financial Plan, be read a First, Second and Third time.

CAO Comments:

Approved for Council consideration. AC

Background:

The financial planning process commenced last summer and a draft financial plan for 2016-2020 was produced by September 30. Council held several subsequent budget meetings to determine an appropriate plan to present to the public for review and comment. Council decided on a draft plan for presentation at its meeting held January 26, 2016. This is the earliest Council has ever completed the financial plan process.

A synopsis of the plan was published in the Times Review on February 3, 2016 and this, plus a full version of the plan, has been available on the City’s website since January 29. At the date of writing this report two submissions have been received from the public.

Options / discussion:

The current financial plan builds on this and previous Councils’ objectives of building reserves and surpluses, safeguarding our infrastructure, maintaining services and reducing our reliance on long term debt – while at the same time achieving this with moderate tax increases. This plan continues to fulfill those objectives and improves the City’s financial resiliency. Consolidated operating expenses are forecast to remain relatively flat over the next 5 years even though we are adding an additional RCMP officer to enhance protective services to the community. The consolidated operating surplus is estimated to be about $1.5 million at the end of 2016, rising to almost $3.5 million by the end of 2020. This provides additional funds for capital projects without the need for long term borrowing. Although our capital reserves are predicted to dip in the middle years of the plan they are forecast to recover fully by 2020 and to move back higher to $3.5 million by the end of that year.

City of Revelstoke Council Report

Although the City is taking on more long term borrowing during the term of the plan, a substantial portion of this debt relates to Local Area Services (LAS) such as the Big Eddy Water Works and Thomas Brook water and sewer where benefitting residents only will be responsible for repaying the debt. In addition, the $1.9 million in borrowing for Big Eddy Water Works leverages considerable senior government grants to provide a $5.7 million project to those residents. Even with this additional borrowing the City’s long term debt is forecast to remain relatively flat over the first four years of the plan at a little over $16.5 million until 2020 when the arena roof project calls for $7 million in borrowing. However, this is a few years away yet and Council still has to determine the best solution for this issue. The plan contains the estimated cost of full roof replacement at this time which is the worst case scenario. It is estimated that the City will spend more than $6 million over five years on repairing and rehabilitating roads. None of this is to be funded through borrowing. Property taxes are forecast to increase by about 1.72% overall in 2016. Residential property owners will see a 2% increases while all other classes will see a 1% increase except Class 2 (Utility). For an average single family house assessed at $250,000 (in 2015) this will mean an increase of about $24 a year. For a business of the same value the increase will be about $46 a year. Water and sewer charges will also increase by $10 each or about 2.6% and 4.1% respectively. Commercial rates will increase at similar percentages, but not until the middle of 2016. The sewer frontage tax will also increase by $0.10 per foot resulting in a minimum annual increase per property (residential and business) of $5 and a maximum of $20. These increases not only help to maintain our levels of service they also provide necessary funding for our reserves and surpluses to fund future capital projects and reduce reliance on long term debt.

Option: Council could make further amendments to the plan.

Section 165 of the Community Charter.

Financial / Risk Implications:

As per attached financial plan.

Strategic Plan Reference:

As per attached financial plan. Others Consulted: Management Staff.

City of Revelstoke Council Report

Attachments: Bylaw 2104. 2016-2020 Financial Plan (January 26, 2016). Submission from Ms. Eileen Fletcher1. Submission from the Chamber of Commerce. Respectfully submitted, Graham Inglis Director of Finance

1 The Financial Plan includes $50,000 for developing a Heritage Strategy in 2018

CITY OF REVELSTOKE

BYLAW NO 2104

____________________________________________________________________________________

A Bylaw for the Purpose of Adopting the Five Year Financial Plan 2016-2020

WHEREAS in accordance with the provisions of Section 165 of the Community Charter,

Council is required by bylaw to adopt the five year financial plan of the municipality on or

before the fifteenth day of May each year.

NOW THEREFORE, the Council of the City of Revelstoke in open meeting assembled enacts

as follows:

1. Schedules "A", "B", "C" and "D" attached hereto and forming a part of this Bylaw, are

hereby adopted and present the five year financial plan of the City of Revelstoke for

period 2016 – 2020 inclusive.

2. This Bylaw may be cited for all purposes as the “Five Year Financial Plan 2016 – 2020

Bylaw No. 2104.”

3. This bylaw shall come into full force and effect upon its adoption by Council.

READ A FIRST TIME THIS DAY OF , 2016.

READ A SECOND TIME THIS DAY OF , 2016.

READ A THIRD TIME THIS DAY OF , 2016.

ADOPTED THIS DAY OF , 2016.

_________________________________ _______________________________

Director of Corporate Administration Mayor

Certified a true copy this ___________ day of _________________,_____.

_________________________________

Schedule A

Consolidated Financial Plan 2016 2017 2018 2019 2020

Budget Budget Budget Budget Budget

Revenues

Taxation (inc. PILTS, GILTS & 1% utility tax) -13,637,945 -14,514,845 -15,384,860 -15,717,260 -16,084,208

Sale of services -5,447,495 -5,670,437 -6,052,898 -6,327,638 -6,460,911

Other & own sources -936,800 -904,100 -904,100 -904,400 -904,400

Provincial unconditional transfers -600,000 -600,000 -600,000 -600,000 -600,000

Provincial conditional transfers -1,623,000 -1,623,000 -1,023,000 -1,023,000 -1,023,000

Non- TCA funding -1,240,160 -810,171 -631,492 -433,571 -522,618

Other contributions & donations -190,222 -206,408 -219,872 -259,932 -259,932

Total Revenues -23,675,622 -24,328,961 -24,816,221 -25,265,802 -25,855,069

Operating Expenses by type

Employment costs 7,486,400 7,613,291 7,745,275 7,881,052 8,026,048

Travel and meeting expenses 42,500 44,250 45,250 44,500 48,000

Telephone 57,800 59,750 61,200 61,825 63,025

Advertising 71,750 71,450 77,650 71,500 71,600

Licences and insurance 272,175 275,150 277,050 277,875 277,135

Memberships & conferences 134,500 131,750 134,500 135,500 137,000

Contracted services 3,287,145 3,378,295 3,413,100 3,418,600 3,443,267

Office supplies 54,900 54,150 55,150 54,950 55,500

Utilities 950,800 973,100 985,100 991,100 993,767

Miscellaneous 2,384,020 2,375,620 1,757,620 1,793,620 1,789,020

Freight, courier & postage 43,200 43,800 44,400 44,900 46,500

Legal & professional 133,500 140,500 143,500 141,500 142,000

Maintenance of buildings & equipment 422,750 436,750 442,250 443,250 443,500

Materials & supplies 647,150 662,850 667,350 664,350 669,750

Equipment rental (internal & external) 824,200 827,500 830,000 831,500 845,500

Grants-in-aid 97,500 100,000 100,000 100,000 100,000

Vehicle maintenance & fuel 468,500 486,750 487,000 487,000 492,000

Amortization 1,725,000 1,725,000 1,725,000 1,725,000 1,725,000

Interest 891,854 932,378 967,511 991,878 991,878

Sub-total 19,995,644 20,332,334 19,958,906 20,159,899 20,360,489

Non-TCA expenditures 1,729,160 1,186,171 1,090,492 793,571 886,618

Total operating expenses by type 21,724,804 21,518,505 21,049,397 20,953,471 21,247,107

Operating Expenses by Department

General Government 2,302,060 2,097,271 2,060,342 2,114,771 2,182,768

Fire Protection 1,395,545 1,455,636 1,395,275 1,399,402 1,421,573

Provincial Emergency Program 92,000 92,000 92,000 92,000 92,000

Planning and Development 714,200 663,450 743,700 644,200 656,200

Animal and Pest Control 150,050 152,800 155,300 160,375 162,935

Police and Court House services 2,164,350 2,195,400 2,242,050 2,230,550 2,288,633

Public Works 4,147,110 4,192,860 4,238,860 4,284,360 4,333,360

Transit 369,000 369,000 369,000 369,000 369,000

Environmental Health (Garbage collection and disposal) 397,500 401,250 404,250 408,250 411,825

Public Health and Welfare (Cemetery) 138,200 139,500 138,800 128,600 130,350

Community Economic Development 2,056,000 2,061,000 1,464,000 1,472,250 1,475,750

Recreation and Culture 3,378,385 3,337,260 3,378,860 3,253,135 3,329,635

Amortization of capital assets 1,725,000 1,725,000 1,725,000 1,725,000 1,725,000

Water operating 1,036,200 903,250 897,500 900,000 896,750

Sewer operating 767,350 800,450 776,950 779,700 779,450

Debt interest payments 891,854 932,378 967,511 991,878 991,878

Total operating expenses by Department 21,724,804 21,518,505 21,049,397 20,953,471 21,247,107

Operating (Surplus)/Deficit -1,950,817 -2,810,456 -3,766,824 -4,312,331 -4,607,962

Capital expenditures 7,373,500 5,955,900 8,266,100 7,847,100 12,558,300

Contributions from reserves -2,760,200 -2,752,600 -3,252,800 -2,998,800 -1,885,000

Contributions from DCC's -1,160,000 0 -400,000 0 0

Contributions from Grants -1,549,967 -1,489,967 -1,504,967 -2,626,300 -1,695,300

Debt proceeds -1,603,333 -633,333 -1,433,333 -887,000 -7,833,000

Capital out of revenue 300,000 1,080,000 1,675,000 1,335,000 1,145,000

Debt principal 620,824 674,667 695,936 744,069 744,069

Transfer from equity in capital assets -1,725,000 -1,725,000 -1,725,000 -1,725,000 -1,725,000

Transfers to reserve 2,561,000 2,865,000 3,305,000 3,330,000 2,890,000

Transfer to/from accumulated surplus 193,993 -84,211 -184,112 628,261 1,553,893

(Surplus)/Deficit 0 0 0 0 0

Schedule B

Consolidated Financial Plan TANGIBLE CAPITAL ASSETS NON-TANGIBLE CAPITAL ASSETS

Capital EXPENDITURES EXPENDITURES

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Expenditures:

General Government 62,500 0 570,000 225,000 0 399,860 171,071 78,992 116,071 155,618

Fire 201,000 179,300 168,800 181,000 168,000 49,500 64,000 15,000 0 0

PEP 0 0 0 0 0 0 0 0 0 0

Planning 75,000 0 0 0 0 100,000 40,000 110,000 0 0

Animal Control 0 0 7,500 0 0 0 0 0 0 0

RCMP & Court House 45,900 63,400 38,400 6,000 6,000 76,800 54,600 58,500 17,000 37,000

Land 150,000 150,000 150,000 150,000 150,000 0 0 0 0 0

Public Works 2,088,600 1,465,700 2,564,700 1,770,300 1,517,000 384,000 363,500 377,000 386,500 386,000

Cemetery 6,700 3,900 0 0 0 15,000 15,000 12,500 0 0

CED 28,300 28,300 28,300 28,300 28,300 60,000 60,000 60,000 60,000 60,000

Recreation 125,500 321,300 59,900 100,000 7,016,000 339,500 241,000 235,500 66,000 101,500

Total 2,783,500 2,211,900 3,587,600 2,460,600 8,885,300 1,424,660 1,009,171 947,492 645,571 740,118

Sources of funding:

Revenue 300,000 1,080,000 1,675,000 1,335,000 1,145,000 489,000 376,000 459,000 360,000 364,000

Building reserve 60,000 0 532,500 225,000 20,000 129,500 57,500 20,500 17,000 17,000

Fire reserve 106,000 179,300 168,800 181,000 168,000 49,500 64,000 15,000 0 0

Equipment reserve 626,100 405,700 544,700 445,300 362,000 287,360 172,071 85,992 121,071 160,618

Land reserve 150,000 150,000 150,000 150,000 150,000 0 0 0 0 0

Cemetery reserve 6,700 3,900 0 0 0 15,000 15,000 12,500 0 0

RCMP reserve 45,900 63,400 38,400 6,000 6,000 34,800 8,100 38,000 0 20,000

Recreation reserve 105,500 301,300 49,900 90,000 6,000 339,500 236,000 235,500 66,000 96,500

Grants 195,000 0 0 0 0 0 0 0 0 0

Gas tax 28,300 28,300 28,300 28,300 28,300 80,000 80,500 81,000 81,500 82,000

DCC's 1,160,000 0 400,000 0 0 0 0 0 0 0

Debt 0 0 0 0 7,000,000 0 0 0 0 0

Total 2,783,500 2,211,900 3,587,600 2,460,600 8,885,300 1,424,660 1,009,171 947,492 645,571 740,118

Expenditures:

Water 3,735,000 2,714,000 3,118,500 1,711,500 953,000 212,250 61,000 51,000 53,250 52,000

Sewer 855,000 1,030,000 1,560,000 3,675,000 2,720,000 92,250 116,000 92,000 94,750 94,500

Total 4,590,000 3,744,000 4,678,500 5,386,500 3,673,000 304,500 177,000 143,000 148,000 146,500

Sources of funding:

Water reserve 1,125,000 619,000 1,008,500 1,286,500 953,000 177,250 36,000 25,500 27,750 26,000

Grant 1,266,667 1,461,667 1,476,667 425,000 0 10,000 0 0 0 0

Gas tax 60,000 0 0 0 0 0 0 0 0 0

DCC's 0 0 0 0 0 25,000 25,000 25,500 25,500 26,000

Debt 1,283,333 633,333 633,333 0 0 0 0 0 0 0

Total 3,735,000 2,714,000 3,118,500 1,711,500 953,000 212,250 61,000 51,000 53,250 52,000

Sources of funding:

Sewer reserve 535,000 1,030,000 760,000 615,000 220,000 67,250 91,000 66,500 69,250 68,500

Grant 0 0 0 2,173,000 1,667,000 0 0 0 0 0

DCC 0 0 0 0 0 25,000 25,000 25,500 25,500 26,000

Debt 320,000 0 800,000 887,000 833,000 0 0 0 0 0

Total 855,000 1,030,000 1,560,000 3,675,000 2,720,000 92,250 116,000 92,000 94,750 94,500

Total Capital Expenditure 7,373,500 5,955,900 8,266,100 7,847,100 12,558,300 1,729,160 1,186,171 1,090,492 793,571 886,618

Total Sources of Funding:

Reserves 2,760,200 2,752,600 3,252,800 2,998,800 1,885,000 1,100,160 679,671 499,492 301,071 388,618

Grants and other 1,549,967 1,489,967 1,504,967 2,626,300 1,695,300 90,000 80,500 81,000 81,500 82,000

Debt 1,603,333 633,333 1,433,333 887,000 7,833,000 0 0 0 0 0

DCC's 1,160,000 0 400,000 0 0 50,000 50,000 51,000 51,000 52,000

Revenue 300,000 1,080,000 1,675,000 1,335,000 1,145,000 489,000 376,000 459,000 360,000 364,000

Total Funding 7,373,500 5,955,900 8,266,100 7,847,100 12,558,300 1,729,160 1,186,171 1,090,492 793,571 886,618

CITY OF REVELSTOKE

Distribution of Property Taxes Schedule C

2016

Class Assessed value Tax Revenue % of Total

Residential 1 965,018,180 4,646,268 45.33%

Utility 2 8,748,900 448,597 4.38%

Supportive Housing 3 2 0 0.00%

Major Industry 4 9,023,500 336,544 3.28%

Light Industry 5 5,445,600 191,653 1.87%

Business 6 247,786,030 4,586,696 44.75%

Seasonal 8 2,456,100 39,939 0.39%

Farm 9 220 4 0.00%

1,238,478,532 10,249,698 100.00%

Schedule D

1. The objectives and polices of the municipality regarding revenues and taxation are as per City

Policy F-9 attached.

2. The objectives and polices of the municipality regarding permissive tax exemptions are as per

City Policy F-13 attached.

CITY OF RE"\'ELSTOKE POLICY MANUAL

F-13 I Page 1 of3 ..

Policy Title:

Grants in Aid

Purpose:

The Council of the City ofRevelstoke recognizes the value to the community oflocal clubs, groups, non-profit organizations and charities maintaining a local office, especially in their efforts to promote or meet the goals and objectives of the City in accordance with the Official Community Plan (OCP).

The City may make grants available, subject to budgetary constraints, to assist these organizations in accordance with the terms and conditions of this policy.

Funding shall not be available for out of town events, unless it can be demonstrated that the City of Revelstoke will directly benefit from supporting such event

The city's intent is to provide assistance to those orgWlizations involved in special events lhal are beyond the scope of their normal operating revenues. It is not the city's intent to subsidize normal operating expenses through the grant-in-aid programme.

Policy:

GRANT-IN-AID CRITERIA:

I. A grant-in-aid may take the form of a properly tax exemption under the provisions of the Conununity Charter, free or subsidjzed use of city facilities in kind benefits or cash.

2. The total amount of grants-in-aid shall not exceed the total amount budgeted for the year.

3. The maximum amount eligible far a grant-in-aid shall not exceed $2,000 in any given year.

4. The applicant must be able to demonstrate how the grant-in-aid will assist the applicant in meeting the goals and objectives of the city.

5. The applicant must be able to demonstrate that the charitable event, JocaJ club, group or nonprofit organization would suffer undue hardship or would be unable ta complete the project or hold the event without City assistance.

CITY OF REVELSTOICE POLICY MANUAL

F-13 I Pa_ge 2 of3

6. Where funding is available to applicants from other govemmcnts or other agencies, the City expects that applicants wiJJ have exhausted all otper sources before approaching the City for assistance.

7. Where the application for a grant-in-aid involves the free or subsidized use of city facilities, the grant shall only receive preliminary approval until after the event has taken place. The applicant is required to then provide the city with a full accounting of said event to prove that assistance is still required. Once such proof has been provided to the city the grant shall receive final approval. If the accounting indicates that the event bas made a surplus without city assistance then the preliminary approval shall be withdrawn.

8. Organizations that do not have a local office and are more regional in nature, shall not be entitled to assistance under this policy unless it can be demonstrated that providing assistance to such organization will ha"e a direct benefit to the city.

9. An individual may apply for nssistance under this policy if that individual is representing the city at a regional, provincial, national or international sporting event. In such case, the assistance shall be limited to a contribution towards travel expenses.

I 0. Preference will be given to organizations that have not received fi.inding from the City in the past hvo years.

11. The cost/benefit factor to the City must be taken into consideration when reviewing applications.

12. A grant-in-aid will not be awarded to any individual or organization intending to tum over part or all of the grant to another organization.

METHOD OF APPLICATION:

1. Applications for grants-in-a.id shall be made in writing addressed to the Director of Finance by February 28 of the calendar year in which tlle grant is required (July 31 of the preceding year for property tax exemptions).

2. Late applications for grants-in-aid will be accepted until May 30, if funds are available.

3. The application shall be submitted on a standard fonn supplied by the city (see attached).

4. The application form must be completed in ful1 or it may be rejected.

5. The application must be accompanied by a copy of the applicant's most current financial statements together wi1h a budget for the year to which the grant relates. Where the applicant does not produce financial statements as a matter of course a budget indicating the need for the grant ·will still be required.

6. All applications will be reviewed by the Grant-in-aid Committee after each applicable deadline and a recommendation forwarded to Council for ratification.

7. The ·Grant-in-aid Committee and Council reserve the right to refuse, pay in full or prorate any or all requests as they deem fit and their decision shall be final.

CITY OF REVELSTOKE POLICY MANUAL

F-13 I Page 3 of3

8. The Grant-in-aid Committee and/or Council may request additional information from au applicant in order to be able to determine either eligibility for a grant or the amount, if any, to be

I awarded.

9. All applications submitted after the applicable deadline (July 31 for property tax exemptions in the following year or May 30 for grants-in-aid) shall not qualify for review until the fo!Iowing year.

10. It is recognized that impromptu charitable events may mise during the course of a year and after the official deadline. Requests for assistance will be received by the Grant-in-aid committee and any grant approval will be subject to the availability of remaining budget funds.

!

1 l. Grants-in-aid involving a cash payment will be disbursed on or after July 2 in the year in which they have been approved.

12. Funding not claimed within I year of the disbursal date referred to in clause 9 above shall be forfeited and the funds shall be returned to the grant-in-aid programme.

Certified Correct:

~ f)_ -, ~~n_e_r _________ _

Director of Corporate Administration

CITY OF REVELSTOKE POLICY MANUAL

F-9 I Page 1of2

Finance Department Policy Title:

Revenue and Property Tax

REFERENCE: Revenue and Property Tax

Statement of principles

City Council is cognizant of the pressure on property taxes from maintaining service levels and meeting the demands for additional or enhanced services. In order to mitigate the impact on property taxes, the city will pursue non-property tax revenue sources whenever possible especially where new services, programmes and projects are involved. The city will also ensure that fees and charges are increased on a regular basis in line with inflation while at the same time making sure that services remain affordable and competitive. Jn this way the proportion of revenue generated by property taxation will be kept to a minimum.

The distribution of property taxes amongst the various classes will depend upon the rate of growth in assessment value between said classes. City Council recognizes that residential tax payers are the predominant users of city services and, therefore, should bear a larger portion of the tax burden. However, the city recognizes that there is a significant challenge in setting a taxation policy that equates the payment of taxes exactly with the consumption of services. While this ultimate goal may not be possible, Council recognizes the need to have a fair distribution of the tax burden to both enable the business sector to succeed while maintaining the City as an affordable place to live.

Permissive tax exemptions may be granted by City Council in accordance with Sections 224 to 226 of the Community Charter. Policy 03 provides guidance on the circumstances under which a pennissive tax exemption may be granted. The cost of permissive tax exemptions is borne by the remaining tax payers. A permissive tax exemption will only be granted if it is evident that there is a benefit to the community.

Objectives

The main sources of funding are:

1. revenue from property value taxes 2. · revenue from parcel taxes 3. revenue from fees and charges 4. revenue from other sources 5. proceeds from borrowing, other than borrowing under Section 177 of the Community

Charter (revenue anticipation borrowing).

CITY OF REVELSTOKE POLICY MANUAL

F-9 I Page 2 of2

Historically, revenues from property value taxes have been in the 20% to 30% range of total city funding depending on the levels of funding coming from other sources which themselves can fluctuate. It is Council's objective to maintain this contribution from property tax revenues within the historical range and to keep it to the lower end of the scale by pursuing alternative sources of funding whenever possible.

Revenue from parcel taxes (or frontage tax) typically is less than 1 % of total revenues. Where it is equitable to do so, local service areas will be established to pay for extensions of infrastructure into those areas so that existing tax and rate payers are not burdened with the additional cost.

Revenue from fees and charges represents income from user pay services. This will include admission fees for various city recreational facilities and building permits, for example. The City will regularly review its fees and charges for its services to ensure that they are adequate to cover the costs of providing those services. In some circumstances, for example in the case of recreational facilities, it is not possible to recover the full cost of operations through admission and programme fees. However, the city will regularly review its fee schedule to ensure that it is current in terms of inflation and competitiveness with other communities.

Revenue from other sources contains a broad range of funding sources which include grants from higher governments, interest earnings and generally any other sources that do not fall within the preceding categories. The percentage contribution from this source of revenue will fluctuate over time and is dependent on the level of funding that is made available by higher governments. The City will actively pursue funding from higher governments for all relevant projects in order to mitigate the impact on taxpayers and some projects may not proceed if sufficient third part funding is not secured.

The proceeds from borrowing will also fluctuate on a year by year basis. It is project specific and therefore it is not possible to establish an ideal level of funding :from this source. However, the city aims to not exceed 75% ofits total borrowing capacity.

The proportion of the property tax burden borne by the residential sector has been less than 50%. It is City Council's intention that this proportionate share increase to at least 50%. This may occur as the result of a natural growth in assessment value or by shifting the burden from the non-residential sector through applying different tax increases to the various classes, or through a combination of both methods, over time.

CERTIFIED CORRECT:

 

 

 

FPJ  

FinaPlananuary 26, 20

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‐‐  CityRevyofvelstokee

2016‐2020FinancialPlan

i  

TableofContentsTable of Contents .................................................................................................................................................... i 

List of Figures .......................................................................................................................................................... ii 

List of Tables ........................................................................................................................................................... ii 

The Financial Plan at a Glance ............................................................................................................................... iii 

Financial Plan Highlights ........................................................................................................................................ iv 

Estimated Cash Flow ............................................................................................................................................... v 

Vision Statement .................................................................................................................................................... v 

Mission Statement ................................................................................................................................................. vi 

Official Community Plan Extract ........................................................................................................................... vii 

2016 Council Objectives ........................................................................................................................................ ix 

Introduction ........................................................................................................................................................... 1 

Meeting Council Objectives ................................................................................................................................... 1 

Consolidated Results ............................................................................................................................................. 1 

Major Assumptions................................................................................................................................................ 1 

Consolidated Revenues ......................................................................................................................................... 2 

Consolidated Operating Expenses ......................................................................................................................... 2 

Consolidated Capital Expenditures ........................................................................................................................ 3 

Opportunities for Cost Reduction ......................................................................................................................... 5 

Long Term Debt ..................................................................................................................................................... 6 

Capital Reserves .................................................................................................................................................... 7 

Property Taxes ....................................................................................................................................................... 8 

Utility Rates ......................................................................................................................................................... 10 

Economic Outlook ............................................................................................................................................... 10 

Risks to the Plan .................................................................................................................................................. 10 

Conclusion ........................................................................................................................................................... 11 

 

2016‐2020FinancialPlan

ii  

ListofFiguresFigure 1 – Consolidated revenue ............................................................................................................................... 2 

Figure 2 – Consolidated operating expenses ............................................................................................................ 3 

Figure 3 – Long term debt ......................................................................................................................................... 6 

Figure 4 ‐ Reserves .................................................................................................................................................... 7 

Figure 5 – Total Reserve Funding and expenditure ................................................................................................... 7 

Figure 6 – Share of property tax by class .................................................................................................................. 8 

Figure 7 – Class 4 taxes .............................................................................................................................................. 9 

Figure 8 – Tax increases – last 3 years ....................................................................................................................... 9 

Figure 9 – New construction ................................................................................................................................... 10 

ListofTablesTable 1 – Consolidated Results .................................................................................................................................. 1 

Table 2 – Net consolidated surplus ........................................................................................................................... 1 

Table 3 – Accumulated surpluses .............................................................................................................................. 1 

Table 4 – Revenue growth ......................................................................................................................................... 2 

Table 5 – Main cost drivers ....................................................................................................................................... 3 

Table 6 – Capital expenditures .................................................................................................................................. 4 

Table 7 – Capital funding ........................................................................................................................................... 4 

Table 8 – List of Capital Projects ................................................................................................................................ 4 

Table 9 ‐ Snow removal costs .................................................................................................................................... 6 

Table 10 ‐ Debt to asset ratio .................................................................................................................................... 7 

Table 11 ‐ Reserve targets ......................................................................................................................................... 8 

Table 12 – Property tax increases ............................................................................................................................. 8 

Table 13 – Property tax increases by class ................................................................................................................ 8 

Table 14 – Taxes on example houses ........................................................................................................................ 9 

Table 15 – Taxes on example businesses .................................................................................................................. 9 

Table 16 – Utility rate increases .............................................................................................................................. 10 

Table 17 – Residential utility rates .......................................................................................................................... 10 

Table 18 – Consolidated Financial Plan ................................................................................................................... 12 

Table 19 – Consolidated Capital Plan ...................................................................................................................... 13 

Table 20 – General operating financial plan ............................................................................................................ 14 

Table 21 – Water operating plan ............................................................................................................................. 15 

Table 22 – Sewer operating plan ............................................................................................................................. 16 

Table 23 – General operating contracted services .................................................................................................. 17 

Table 24 – General operating miscellaneous expenses .......................................................................................... 18 

   

2016‐2020FinancialPlan

iii  

TheFinancialPlanataGlance

0

5

10

15

20

25

30

2016 2017 2018 2019 2020

Millions

Consolidated Revenues

 

0

2

4

6

8

10

12

14

2016 2017 2018 2019 2020

Millions

Consolidated Capital Expenses

 

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2016 2017 2018 2019 2020

Millions

Consolidated Operating Surplus

 

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

2016 2017 2018 2019 2020

Average Property Tax Increase

 

 

0

5

10

15

20

25

2016 2017 2018 2019 2020

Millions

Consolidated Expenses

 

0

5

10

15

20

25

2016 2017 2018 2019 2020

Millions

Long Term Debt

 

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2016 2017 2018 2019 2020

Millions

Capital Reserves

 

 

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2016 2017 2018 2019 2020

Utility Rate Increases

Water

Sewer

Garbage

2016‐2020FinancialPlan

iv  

FinancialPlanHighlights 

1. No proposed changes to service levels other than the addition of one police officer. 

2. 2% property tax increase proposed for residential and 1% for all other classes (except Class 2) in 2016. 

3. Capital projects over the next 5 years amount to about $42 million. 

4. Long term debt increases to about $23 million at the end of 2020. 

5. Water projects include the replacement of water filters at the filtration plant ($615,000) in 2019 and the 

construction of a water supply to Thomas Brook residents ($670,000) in 2016. This latter project is to be 

funded by long term borrowing and paid for under a Local Area Service (LAS) by the Thomas Brook 

users.  

 

6. The Big Eddy Waterworks project has been included at $5.7 million (2016‐2018). Two‐thirds of the 

funding will come from grants while the balance will be paid for by the Big Eddy water users. 

 

7. Thomas Brook sewer connection is included at $340,000 in 2016. Again, this will be funded by the local 

users through an LAS. 

 

8. A replacement arena roof is included in the plan at $7 million (2020) to be funded by long term 

borrowing. There are several options available to Council regarding the arena roof providing less 

expensive alternatives but with varying degrees of lifespan. The financial plan contains the most 

expensive and longest life expectancy option at the moment. 

  

 

 

 

   

2016‐2020FinancialPlan

v  

EstimatedCashFlow12016 2017 2018 2019 2020

Funds available at the beginning of the year A 6,436,033 6,361,125 6,070,001 5,790,828 6,800,597

Incoming Funds

Property taxes 9,499,698 10,259,673 11,080,447 11,412,861 11,755,247

Other taxes 4,888,248 4,255,171 4,304,413 4,304,399 4,328,961

Sales, services and other sources 6,291,295 6,481,537 6,863,998 7,139,038 7,272,311

Provincial funding 2,223,000 2,223,000 3,127,967 4,249,300 3,318,300

Debt proceeds 1,603,333 633,333 1,433,333 887,000 7,833,000

Miscellaneous 3,413,647 2,280,234 1,197,102 836,812 850,748

Total Incoming Funds B 27,919,220 26,132,948 28,007,260 28,829,410 35,358,566

Outgoing funds

Employment costs 7,486,400 7,613,291 7,745,275 7,881,052 8,026,048

Travel and meeting expenses 42,500 44,250 45,250 44,500 48,000

Telephone 57,800 59,750 61,200 61,825 63,025

Advertising 71,750 71,450 77,650 71,500 71,600

Licences and insurance 272,175 275,150 277,050 277,875 277,135

Memberships & conferences 134,500 131,750 134,500 135,500 137,000

Contracted services 3,287,145 3,378,295 3,413,100 3,418,600 3,443,267

Office supplies 54,900 54,150 55,150 54,950 55,500

Utilities 950,800 973,100 985,100 991,100 993,767

Miscellaneous 2,384,020 2,375,620 1,757,620 1,793,620 1,789,020

Freight, courier & postage 43,200 43,800 44,400 44,900 46,500

Legal & professional 133,500 140,500 143,500 141,500 142,000

Maintenance of buildings & equipment 422,750 436,750 442,250 443,250 443,500

Materials & supplies 647,150 662,850 667,350 664,350 669,750

Equipment rental (internal & external) 824,200 827,500 830,000 831,500 845,500

Grants‐in‐aid 97,500 100,000 100,000 100,000 100,000

Vehicle maintenance & fuel 468,500 486,750 487,000 487,000 492,000

Interest 891,854 932,378 967,511 991,878 991,878

Non‐TCA expenditures 1,729,160 1,186,171 1,090,492 793,571 886,618

Total Outgoing Funds C 19,999,804 19,793,505 19,324,397 19,228,471 19,522,107

Increase over previous year ‐0.32% ‐1.03% ‐2.37% ‐0.50% 1.53%

Capital expenditures D 7,373,500 5,955,900 8,266,100 7,847,100 12,558,300

Debt principal repayment E 620,824 674,667 695,936 744,069 744,069

Funds available at the end of the year A+B‐C‐D‐E 6,361,125 6,070,001 5,790,828 6,800,597 9,334,688

 

                                                            1 This estimated cash flow statement has been incorporated into the financial plan document to provide additional clarity. It does not meet the regulatory requirements of PSAB or the province for financial plan presentation. Please refer to Table 18 for the actual consolidated financial plan. 

2016‐2020FinancialPlan

vi  

VisionStatementRevelstoke will be a leader in achieving a sustainable community by balancing environmental, social and 

economic values within a local, regional and global context.  Building on its rich heritage and natural beauty, this 

historic mountain community will pursue quality and excellence.  

Revelstoke will be seen as vibrant, healthy, clean, hospitable, resilient and forward thinking.  It will be 

committed to exercising its rights with respect to decisions affecting the North Columbia Mountain Region. 

Community priorities include: opportunities for youth; economic growth and stability; environmental 

citizenship; personal safety and security; a responsible and caring social support system; a first‐class education 

system; local access to life‐long learning; spiritual and cultural values; and diverse forms of recreation.  All 

residents and visitors shall have access to the opportunities afforded by this community.  

 

 

MissionStatementOur mission is to provide optimum quality services and security to our community and our visitors, in a fiscally 

responsible manner. 

We will endeavor to provide cooperative, well‐informed and innovative leadership in order to sustain our 

uniquely superior quality of life. 

We are committed to fostering a strong sense of community in Revelstoke, and we will be responsive and 

adaptive to changing social, political and economical conditions. 

 

 

 

 

 

 

 

   

2016‐2020FinancialPlan

vii  

OfficialCommunityPlanExtract “3.6 MUNICIPAL FINANCE

 Background

 The rapid growth of the community with the RMR development creates challenges for 

balancing City revenues, costs and investments.  City operating revenues are sourced from property taxes, and fees for various services, the grant‐in‐lieu of taxes from BC Hydro for the Revelstoke dam, cost sharing arrangements  for particular services 

with the Columba Shuswap Regional District (e.g. fire protection) and provincial transfers. Other cost sharing arrangements with the Columbia Shuswap Regional District include or may include the 

airport, cemetery, or parks and recreation.  Projected operating costs currently exceed these revenues, prompting the need for careful consideration of service levels to avoid unacceptable  tax increases. 

 Substantial capital investments are necessary for roads, buildings, equipment, water, and sewer 

enhancements  to meet the needs of the growing community.  These investments are funded through general revenues, reserves, borrowing, development cost charges, grants, and, for tourism 

infrastructure, resort municipality hotel tax revenues.  While development cost charges are designed to fund infrastructure  for new development over the long term, in the short term the City may have 

to finance community  infrastructure improvements, often without certainty about when developments, and development cost charges will be realized. 

 The City prepares a five‐year financial plan which is updated annually.  The recent global economic 

recession has slowed development plans in the community.  This has further exacerbated the challenge of managing municipal finances to anticipate the needs of future growth when the timing 

of such growth is uncertain.  Community Goals 

  Appropriately balance revenue limitations with expenditures and investments to meet 

community needs over the long‐term.  

Maintain effective management, efficiencies and accountability of the City’s fiscal budgets and operations. 

 Policies 

  Annually prepare a 5‐year Financial Plan, with community consultation  to sustainably balance 

revenues with operating costs and capital investments, retaining adequate reserves.  

Include lifecycle analysis of major municipal capital purchases recognizing that maintenance 

and operations are a significant component of municipal expenditures.  

Identify and plan for the efficient allocation of traditional and non‐traditional funding sources. 

2016‐2020FinancialPlan

viii  

  Continue to pursue senior government funding opportunities  (i.e. additional Hotel Tax, 

Gas Tax, and infrastructure or other grant funding).  

Manage and acquire City owned lands consistent with a Land Acquisition Strategy.  

Develop partnerships and share resources and funding with private, public and non‐profit organizations, cooperatively pursuing resources and funding. 

  Develop a cost recovery analysis and fee structure for all City fee‐for‐service functions. 

  Consider development  tax incentives and fees that promote community amenities 

such as affordable housing, aging in place, parks and recreation, green space and 

public safety.  

Work with the Provincial assessment authority and other municipal partners to balance property taxation and achieve a more equitable taxation system. 

  Develop a risk evaluation  in conjunction with the City's insurance provider. 

  Assess and evaluate unfunded mandates from senior levels of government. 

  Explore tax increment financing or deferred taxation funding that enhances heritage 

properties, and economic development.  

Ensure City financial policies and practices are consistent with the Official Community Plan. 

  Appreciate the importance of volunteerism  in fulfilling community priorities and 

supplementing City resources.” 

 

 

 

 

 

 

 

   

2016‐2020FinancialPlan

ix  

2016CouncilObjectives 

1. Quality of life

The City of Revelstoke will emphasize quality of life issues including social, active living, cultural experiences and 

recreation opportunities. 

Move forward with planned recreation/active living and cultural projects. 

i.e.: culture strategy, trails plan, Kovach upgrade, pump track, Williamson Lake Trails 

Move forward with youth and seniors quality of life issues, following strategies previously developed 

through plans and subject to budget priorities.  

Improve and maintain social, economic, food and institutional (police, fire, ambulance) security for all 

residents.

2. Planning for the Future

The City of Revelstoke will ensure that City services encourage and support community vision towards 

development for the future.  

OCP & Zoning Review will look for opportunities to increase residential densities, wherever possible, 

factors to consider include infrastructure, livability, affordability and mobility. 

Land Inventory to be critically assessed as to current land holdings and any acquisition opportunities 

to achieve community goals and vision. 

External relationships will be fostered on mutual goals and respect and will create an environment 

of a cohesive problem solving opportunity enhancing partnerships. 

Bylaw enforcement is built on a system that is fair and consistent, easily understood and reasonably 

enforced.      

3. Safeguard Infrastructure

The City of Revelstoke will protect the continuance of healthy infrastructure for current and future generations.  

Implementing strategy for the forum roof, golf course, Mutas Road and Townley Road intersections 

and Big Eddy Water System, subject to budget priorities.  

Completing long range planning documents for Zoning Bylaw and Official Community Plan in house. 

Complete a Development Cost Charges review and bylaw.  

Pursue additional Heritage protection opportunities.     

2016‐2020FinancialPlan

x  

Finish first stage of upgrades to City Hall 

Implementation of Asset Management Plan  

 

 

4. Economic Development and Business Support

The City of Revelstoke will take initiatives to attract, promote and support economic development. 

Policy and Planning 

Over a 4 year period, bring the tax ratio for commercial to residential closer to 2:1 

Streamline administrative processes to better assist businesses and developers in advancing their projects. 

investigate and develop revitalization tax exemptions 

Promote and facilitate tourism drivers by improving relationships with user groups and Revelstoke Mountain Resort 

Encourage the protection and promotion of Revelstoke's heritage as it relates to economic development 

Enhancement Projects 

Look to placing attractive changeable signage on the TCH at the east and west approaches to the City, which would promote local Revelstoke events 

Look to making free Wi‐Fi available in the downtown core 

Continue with downtown commercial enhancement initiatives 

Promote further hotel development in Revelstoke 

Continue discussions with federal and provincial partners with respect to improving the Revelstoke interchanges with TCH 

Continue discussions with the School Board regarding development plans of the local school properties  

Investigate the possibility of having the Rocky Mountaineer use Revelstoke as an overnight stop                                       

    

2016‐2020FinancialPlan

1  

IntroductionThe financial plan starts with a consolidated 

summary (Table 18 page 12) with following 

subsidiary schedules which provide further, 

progressive detail supporting the consolidated 

plan. 

The consolidated financial plan shows the 

operating expenses for all departments, 

including water and sewer. It also shows all the 

operating expenses by type. This provides the 

reader with not only an indication of the 

proposed expenditures per department but also 

how those expenditures are allocated between 

the various cost types. 

Readers should note that some columns may 

not add due to rounding. 

MeetingCouncilObjectivesCouncil has set a number of objectives for 2016, 

some of which will have a direct impact on the 

financial plan. The most notable of these are: 

The inclusion of the Big Eddy water 

system upgrade at $5.7 million in 2016‐

2018 with two thirds funding from 

senior governments.  

OCP and zoning bylaw updates. 

Ongoing implementation of Asset 

Management program. 

Addition of one police officer. 

ConsolidatedResultsFor the 2016‐2020 period the projected 

consolidated results are as follows: 

$’millions  2016  2017  2018  2019  2020

Revenue  23.68  24.33  24.82  25.27 25.86

Expenses  21.72  21.52  21.05  20.95 21.25

Surplus  1.95  2.81  3.77  4.31 4.61

Table 1 – Consolidated Results 

The surplus shown in Table 1 above is the 

consolidated operating surplus before 

accounting for capital out of revenue, debt 

principal repayments, transfers from equity in 

capital assets (to cover amortization) and 

transfers to reserves. After accounting for these 

items the net surplus/‐deficit becomes: 

$’millions 2016 2017  2018  2019 2020

Net surplus/‐deficit 

0.19 ‐0.08  ‐0.18  0.63 1.55

Accumulatedsurplus  1.51  1.43  1.24  1.87  3.42 Table 2 – Net consolidated surplus 

The accumulated consolidated surplus can be 

attributed to each of the three operating areas 

as follows: 

$’millions 2016 2017  2018  2019 2020

General 0.95 0.97 0.76  1.56 3.05Water 0.39 0.45 0.46  0.20 0.26Sewer 0.17 0.01 0.02  0.12 0.12Total 1.51 1.43 1.24  1.87 3.42Table 3 – Accumulated surpluses 

MajorAssumptionsThe consolidated results are based on the 

following assumptions: 

Service levels will remain consistent 

with last year other than the addition of 

one police officer. 

CPI will continue generally in the 2% 

range2. 

                                                            2 CPI is not the best indicator of future cost increases for municipalities because it is not representative of the types of goods and services normally purchased by local governments. Since municipalities’ costs are more likely to involve construction, road maintenance etc. these costs are more aligned with the price of oil and the construction cost index (ENR). The City of St. Albert, AB, has forecast that its Municipal Price Index (MPI) for 2013 will be 3.5% and in the last 3 years it has been between 3.1% and 3.7%. 

2016‐2020FinancialPlan

2  

Property taxes will increase at an 

average of 1.72% in 2016.3   

Property tax growth from new 

construction will average 3% a year 

commencing 20174. 

Fees and charges rates will increase 

approximately in line with CPI. 

Utility rates will increase generally at a 

higher rate than CPI to meet 

operational and capital requirements. 

ConsolidatedRevenuesThe total consolidated revenue in 2016 is 

expected to increase by about 2.0% over 2015 

(including non‐TCA funding). If non‐TCA 

funding5 is excluded from the calculation the 

increase becomes 6.7% When hotel tax, internal 

equipment earnings and CBT funding6 are 

removed the increase becomes 5.2% . 

                                                                                         (www.stalberttaxpayers.org/index.org/index_htm_files/03_AR_MPI.pdf)  3 In accordance with Bill 55 the Class 2 (Utility rate) is set at 2.77 times the Class 6 (Business) rate. Therefore, the property tax increase for Class 2 may not equal the average.  4 Growth is estimated at 14.57% in 2016 due mostly to the transfer by BCAA of a substantial assessment value from Class 1 to Class 6.  5 In 2015, MFA changed its process for financing leases. Lease payments are now treated as TCA’s.  6 CBT funding of $351,500 per year is now included as both CED revenue and expenditure to be consistent with the presentation of similar funding sources.  

58%23%

4%2%

7%5% 1%

2016 Consolidated Revenue

Taxation ( inc. PILTS, GILTS & 1%

utility tax)

Services

Own  sources

Unconditional transfers

Conditional transfers

Non‐TCA funding

Other

 

Figure 1 – Consolidated revenue 

Revenue growth is attributable to the main 

categories as follows: 

$ 2015 2016  % Inc.

Taxation & grants  12,921,704  13,637,945  5.5% Services 5,305,953  5,447,495 2.7%Own sources7 895,800  936,800 4.6%Unconditional transfers  600,000  600,000  0.0% Conditional transfers  1,121,500  1,623,000  44.7% Non‐TCA 2,192,400  1,240,160 ‐43.4%Other 184,782  190,222 2.9%

Total 23,222,139  23,675,622 2.0% 

Exc. Non‐TCA 21,029,739  22,435,462 6.7%Table 4 – Revenue growth 

ConsolidatedOperatingExpensesTotal consolidated operating expenses in 2016 

are expected to decrease by about ‐0.5%  over 

2015 (including non‐TCA expenditures). If non‐

TCA expenditures are excluded from the 

calculation then the increase becomes  4.2%. 

                                                            7 Licences/permit fees, fines, rental revenue, return on investments, penalties and interest, sale of fixed assets. 

2016‐2020FinancialPlan

3  

The following table indicates the main cost 

drivers: 

$  2015  2016  % Inc.

Employment  7,291,400  7,486,400  2.7%Contracted services  3,108,050  3,287,145  5.8% Miscellaneous  1,860,820  2,384,020  28.1%Other operating8  4,182,925  4,221,225  0.9% Amortization  1,725,000  1,725,000  0.0%Interest  1,029,098  891,854  ‐13.3%Non‐TCA  2,636,965  1,729,160  ‐34.4%

Total  21,834,258  21,724,804  ‐0.5%     Exc. Non‐TCA  19,197,293 

 19,995,644  4.2%

Table 5 – Main cost drivers 

The substantial increase in miscellaneous 

expenses is the result of additional hotel tax 

projects of about $150,000 and CBT funded 

projects of about $350,000. 

By 2020 consolidated expenses are forecast to 

decrease by ‐2.69%. If non‐TCA’s are excluded 

the increase becomes 6.06% over the 5 year 

period and 7.18% when further excluding hotel 

tax expenditures, internal equipment charges 

and CBT funding. A more detailed analysis of 

the various cost drivers can be found on pages 

12 – 18. 

                                                            8 Includes internal equipment charges offset by equivalent internal equipment earnings.   

35%

15%11%

19%

8%

4%8%

2016 Consolidated Expenses

Employment

Contracted  services

Miscellaneous

Other operating

Amortization

Interest

Non‐TCA's

 

Figure 2 – Consolidated operating expenses 

General operating expenses only are forecast to 

increase by 0.51% in 2016 and ‐1.87% by 2020. 

Excluding non‐TCA’s these numbers become 

increases of 4.83% and 6.25% respectively. In 

real terms, overall spending is forecast to 

remain constant. 

ConsolidatedCapitalExpendituresThe city’s capital works programme 

incorporates a variety of different projects from 

road reconstruction to vehicle replacement, to 

major repairs and other non‐reoccurring asset 

maintenance items.  City Policy F‐10 (Capital 

Asset) sets the parameters for capitalization of 

tangible capital assets (TCA’s) and those that 

must be expensed in the year of acquisition 

(non‐TCA’s). TCA’s are amortized over their 

useful lives and, again, Policy F‐10 sets the 

applicable amortization rate according to the 

category of asset. 

In summary, TCA expenditures are expected to 

be as follows: 

2016‐2020FinancialPlan

4  

$’000’s  2016  2017  2018  2019  2020

General  2,784  2,212  3,588  2,461 8,885Water  3,735  2,714  3,119  1,712 953Sewer  855  1,030  1,560  3,675 2,720

Total  7,374  5,956  8,266  7,847 12,558Table 6 – Capital expenditures 

and funding for these expenditures is 

anticipated to come from the following sources: 

$’000’s  2016  2017  2018  2019  2020

Reserves  2,760  2,753  3,253  2,999 1,885Grants  1,550  1,490  1,505  2,626 1,695Debt  1,603  633  1,433  887 7,833DCC’s  1,160  0  400  0 0Revenue  300  1,080  1,675  1,335 1,145

Total  7,374  5,956  8,266  7,847 12,558Table 7 – Capital funding 

Some of the capital projects being considered 

over the next five years include9: 

                                                            9 The list is illustrative only and does not contain all the capital projects in the 2016‐2020 financial plan.  

Project10  $  YearCity hall reno’s  770,000  2016‐2020Fire truck #2 500,000  2016Arena roof 7,000,000  2020Fire flow projects (various areas) 

639,000  2016‐2019 

Hydrant replacement programme 

300,000  2016‐2020 

Thomas Brook water supply 

670,000  2016 

Thomas Brook sewer 

340,000  2016 

Sewer outflow relocation 

4,500,000  2016‐2019 

Downie force main replacement 

1,000,000  2016‐2018 

Big Eddy water 5,700,000  2016‐2018 

IT infrastructure 

670,000  2016‐2020 

Table 8 – List of Capital Projects 

Road reconstruction is estimated to be about 

$6.4 million over the next five years.  In 2017, 

all of the road reconstruction funding is 

budgeted to come from revenue – hence the  

property tax increases for that year and 2018 

(see Table 12 – Page 7). Amortization of roads 

and bridges amounts to about $500,000 a year. 

So the city is proposing to invest in its 

transportation infrastructure at a higher rate 

than that at which it is being consumed. 

The equipment replacement programme 

introduced many years ago continues to 

eliminate aging and costly to maintain 

equipment. Public Works reports that in 2007 

the average age of its fleet was 13.64 years and 

that in 2015 it was 7.4 years (2014 – 7.65 years).   

                                                            10 Some projects may be repeated from last year’s financial plan as they were not started and have been re‐budgeted.  

2016‐2020FinancialPlan

5  

OpportunitiesforCostReductionOver the past 20 years, federal government 

expenditures in constant dollars per capita have 

been declining, while their revenues have been 

increasing. Provincial /territorial government 

expenditures have been increasing at almost 

the same rate as their revenues. However, both 

federal and provincial government revenues fell 

in 2009. Municipal government expenditures 

have been increasing at a faster rate than their 

revenues over the past 20 years11. 

It is important to appreciate that the city is 

subject to a variety of different cost pressures: 

Inflation (inc. energy costs) 

Demands for new or improved services. 

Development growth. 

Downloading from senior governments. 

Nevertheless, there is always opportunity for 

cost reduction but this inevitably requires some 

difficult decisions on the part of Council. 

Management staff will continue to review the 

way in which we provide services and bring 

opportunities for cost reductions to Council for 

review as they arise. 

EmploymentCosts

As employment costs represent about 35% of 

all city operating expenses, it is clear that any 

substantial reduction in costs will involve 

reductions in the labour force.  

A zero based budget approach is used in 

determining employment costs in the financial 

planning process. Each year an estimate is made 

of the hours required to carry out the city’s 

various functions and work projects. For 2016, 

                                                            11 Federation of Canadian Municipalities – The State of Canada’s Cities and Communities 2012 

this number is 159,017 hours12 (158,952 hours – 

2015) and includes 3,652 hours of overtime 

(3,652 hours – 2015). The anticipated cost, 

including benefits, amounts to $7,529,104 

($7,348,829 – 2015), which includes $120,00013 

for Mayor and Council and $64,60014 for the 

volunteer firefighters. The actual budgeted cost 

in the consolidated financial plan for 2016 is 

$7,486,400.  

SubcontractCosts

These include certain mandatory expenditures 

such as the RCMP contract, Victim Services and 

Transit which make up the bulk of this expense. 

Other subcontract costs may not be mandatory 

but are essential, such as snow removal. Of 

these expenses perhaps about $1 million might 

be considered non‐contractual or discretionary. 

(See Table 23 page 17). 

MiscellaneousCosts

A substantial portion of these expenditures 

(about $1.6 million) are offset by equivalent 

revenues. The balance of about $550,000 or so 

relates to discretionary items. (See Table 24 

page 18). 

Full funding for the Social Strategy Coordinator 

is included in each year of the plan. 

                                                            12 This number does not include hours committed to capital projects.  13 Mayor and Council increased their remuneration to $120,000 in 2016.  14 This includes the monthly stipend, weekend standby compensation and disability insurance.   

2016‐2020FinancialPlan

6  

SewerCosts

Sewer operating costs are forecast to decrease 

by ‐8.40% in 2016 mostly as the result of lower 

non‐TCA expenditures. 

WaterCosts

Water operating costs are forecast to decrease 

by ‐5.89% in 2016 mostly as the result of a 

reduction in non‐TCA expenditures. 

Snow removalcosts

In 2016, the snow removal budget reflects prior 

actual results: 

  Ave. actual last 3 years 

2015 Budget 

2016Budget 

Gross costs  1,157,725  1,280,060  1,317,750Equip. rental ‐ internal15  371,015  475,000  481,000 

Net cost  786,710  805,600  836,750

Per km16:     Roads   4,721  4,834  5,021Sidewalks  1,882  1,927  2,002Table 9 ‐ Snow removal costs 

LongTermDebtThe city is restricted by the Community Charter 

as to how much it can borrow long term. It can 

only borrow long term17 for specific assets and 

not operational expenses. Also, the length of 

the loan cannot exceed the useful life of the 

asset acquired. There are also specific 

regulations set by the province that limits the 

city’s capacity to borrow. 

                                                            15 City equipment charged to the function and also showing as revenue.  16 Costs between roads and sidewalks have been apportioned on a 10:1 basis.  17 Any period between 5 and 30 years. 

Over the past 14 years or so the city has 

borrowed to help fund several major projects. 

These include the RCMP building, the water 

filtration plant and the aquatic centre. Almost 

50% of the principal and interest applicable to 

the RCMP building is reimbursed to the city by 

the federal government by way of rent, while 

the city’s contribution through debt to the 

filtration plant and aquatic centre leveraged 

significant grant funding. We have also 

borrowed to add new infrastructure such as the 

Arrow Heights water reservoir and to replace 

aging infrastructure such as the TCH reservoir. 

However, a portion of the city’s accumulated 

long term debt relates to road reconstruction 

and, although these are assets and do have an 

expected life in excess of the debt contracted, 

there is a valid argument that perhaps long 

term debt should not be used for this type of 

project. This financial plan continues the 

strategy established in the previous plan to not 

borrow further for road reconstruction and rely 

completely on current revenue to fund such 

works.  The plan does anticipate borrowing long 

term for certain water and sewer projects as 

well as a new arena roof. 

2016 2017 2018 2019 2020

General 9,531,037 8,983,404 8,413,679 7,820,952 14,255,886

Water 3,630,276 3,935,928 4,205,615 3,804,492 3,385,582

Sewer 3,686,248 3,535,186 4,178,082 4,874,828 5,509,964

0

2

4

6

8

10

12

14

16

Millions

Long Term Debt

 

Figure 3 – Long term debt 

2016‐2020FinancialPlan

7  

The city’s projected debt (long term) to asset 

ratio is as follows and it can be seen that 

Council’s objective of reducing the ratio 

reverses in 2020: 

2016  2017  2018  2019  2020

23.24%  21.44%  20.17%  18.46%  23.10%Table 10 ‐ Debt to asset ratio 

CapitalReservesThe city continues to try and establish increased 

capital reserves. If reliance on debt going 

forward is to be curtailed then more needs to 

be done to ensure that cash is available to meet 

our capital expenditures when needed. 

The current financial plan forecasts capital 

reserve funds to be at the following levels at the 

end of each year: 

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2016 2017 2018 2019 2020

Millions

 

Figure 4 ‐ Reserves 

At the end of 2015 capital reserve funds are 

estimated to be about $4.5 million. 

The balances shown in the foregoing chart do 

not include the Electric Utility Reserve Fund, or 

other operating reserves. The Electric Utility 

Reserve Fund contains $1.4 million of which 

$1.2 million is invested in Revelstoke 

Community Energy Corporation (RCEC). The 

Snow Removal Reserve Fund is being funded at 

$50,000 per year from general operating. By the 

end of 2020 it is anticipated that this fund will 

contain about $324,315 provided that it does 

not need to be used in the interim to help 

equalize unexpectedly heavy snow removal 

costs.  In addition, the City holds approximately 

$1.5 million in Development Cost Charges. 

In 2016, there is a significant disparity between 

the amount of funding going into the reserves 

and the amount being withdrawn to meet 

expenditures: 

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2016 2017 2018 2019 2020

Millions

Total Reserve Funding and Expenditure

Funding Expenditure

 

Figure 5 – Total Reserve Funding and expenditure 

This funding gap continues through 2017 and 

2018 and needs to be eliminated or narrowed 

considerably if the city is to maintain and build 

its reserve funds effectively. 

In 2013, Council adopted a Reserves and 

Surpluses Policy which sets targets for minimum 

and optimal levels for various reserves and 

surpluses. The following table shows how the 

city is performing thus far: 

 

 

 

2016‐2020FinancialPlan

8  

Category of reserve  % of minimum balance 

% of optimum balance 

Statutory  90.99%  52.00%Capital  68.05%  18.42%General  160.20%  84.96%Other  110.95%  53.98%

Table 11 ‐ Reserve targets 

PropertyTaxesProperty taxes are forecast to increase on 

average across all classes combined as follows: 

2016  2017  2018  2019  2020

1.72%  5.00%  5.00%  0.00%  0.00%Table 12 – Property tax increases 

In 2016, the increases and decreases for the 

individual property tax classes are as follows18: 

Class  Increase/‐Decrease

1 Residential  2.00%2 Utility  4.60%19

4 Major Industry  1.00%5 Light Industry  1.00%6 Business  1.00%8 Seasonal  1.00%   Average  1.72%Table 13 – Property tax increases by class 

City Policy F‐9 Revenue and Property Tax sets a 

target of Class 1 Residential property taxes 

being 50%20 of the overall tax burden.   In 2016, 

the property tax pie is divided as shown in the 

following chart: 

                                                            18 These numbers are based on BCAA’s completed roll at the end of 2015. The authenticated roll will not be available until April 2016.  19 The Class 2 rate is restricted to a maximum of 2.77 times the Class 6 rate. Therefore, this percentage change may alter depending upon the actual variation in assessment values and tax rates.  20 In 2015 the residential share was 54%. 

45%

4%0%3%2%

45%

0%

2016

1 2

3 4

5 6

8

 

Figure 6 – Share of property tax by class 

Property tax growth (revenue from new 

construction) is expected to contribute an 

increase of $1,284,425 (or 14.57%)21 in new tax 

revenue in 2016 and then continue to grow at 

about 3% a year for the remainder of the 

financial plan.  An amount of $750,000   has 

been excluded from the 2016 taxation revenue 

budget as a hedge against future fluctuations 

caused by ongoing and potential assessment 

appeals.  This amount will be transferred to the 

Tax Equalization reserve.  At the time of writing 

this report the city has $49,60022 in its Tax 

Equalization reserve. 

What does this mean for individual property 

owners? Well, for home owners the following 

                                                            21 This is based on BCAA’s number of $32,304,788 (net) in new construction (NMC) for 2016. This is largely due to a substantial transfer of assessed value from Class 1 to Class 6 (mostly Sutton Place) and has resulted in an increase in the business percentage share of overall taxation and a corresponding reduction in the residential percentage share.  22 It is unknown at the time of writing this report whether the 2015 financial results will permit maintaining a balance in this account at end of 2015.  

2016‐2020FinancialPlan

9  

table indicates the average tax increase23 

applicable to example assessment values24: 

House  A  B  C

Assessment       

2015  $100,000  $250,000  $500,000

2016  $103,400   $258,499   $516,998 

Taxes     

2015  $488   $1,220   $2,440 

2016  $498   $1,245   $2,489 

Increase  $10   $24   $49 

Table 14 – Taxes on example houses 

For business owners falling within Class 6, the 

results are as follows: 

Business  A  B  C

Assessment     2015  $100,000  $250,000  $500,0002016  $100,812   $252,029   $504,058 Taxes     2015  $1,848   $4,619   $9,238 2016  $1,866   $4,665   $9,330 Increase  $18   $46   $92 Table 15 – Taxes on example businesses 

The property tax increases shown in the 

foregoing tables are based on average increases 

or decreases in assessment values. 

The ratio of Class 6 (Business) tax rate to Class 1 

(Residential) tax rate in 2015 was 3.79. The ratio 

for 2016 is 3.84 based on current numbers and 

assumptions.  Reducing the ratio in line with 

Council’s objective will require further shifting 

of the tax burden from business to residential 

taxpayers. 

                                                            23 Relates to municipal taxes only and does not include school taxes, CSRD, MFA, BCAA, or utilities.  24 These numbers are provisional only and subject to change once authenticated assessment numbers for 2016 are known.  

Since 2009, Class 4 (Major Industry) taxation25 

will have been reduced from just over $400,000 

to $333,212 in 2016.  

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012 2013 2014 2015 2016

Class 4 Taxes

 

Figure 7 – Class 4 taxes 

Overall, property tax increases have averaged 

approximately 2.44% a year over the last 3 

years.  Business (Class 6) has averaged a 1.67% 

annual increase while residential (Class 1) has 

averaged 2.50% as can be seen in the chart that 

follows: 

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Class 1

Class 2

Class 4

Class 5

Class 6

Class 8

Average

Class 1 Class 2 Class 4 Class 5 Class 6 Class 8 Average

2013 3.50% 1.68% 23.28% 3.50% 3.50% 3.50% 3.96%

2014 2.00% 7.96% 4.25% 2.00% 1.00% 2.00% 1.99%

2015 2.00% 0.14% 2.00% 2.00% 0.50% 2.00% 1.37%

Average 2.50% 3.26% 9.84% 2.50% 1.67% 2.50% 2.44%

Tax increases ‐ last 3 years

 

Figure 8 – Tax increases – last 3 years 

                                                            25 Downie Timber is the only taxpayer in this class. 

2016‐2020FinancialPlan

10  

UtilityRatesAs mentioned previously in this report, utility 

rates are forecast to increase over the term of 

the financial plan.  Utility rates (both residential 

and commercial) are proposed to increase as 

follows: 

 

Based on the foregoing percentage increases 

residential utility rates will be: 

  2016  2017  2018  2019 2020

Water  $395   $405   $450   $500  $525 Sewer  $255   $270   $300   $300  $300 Garbage  $112  $115  $117  $119 $122Table 17 – Residential utility rates 

As well, it is proposed that sewer frontage tax 

increase from $1.50 to $1.60 (per foot frontage) 

in 2016. The purpose of the sewer frontage tax 

is to raise funds for capital purposes. This tax is 

imposed equally on both residential and non‐

residential property that fronts a sewer line to a 

maximum of 200 feet (minimum 50 feet).   

EconomicOutlookAt the time of writing this report the Canadian 

economy is showing signs of a technical 

recession while the USA’s recovery is 

continuing. There remain signs in Europe as well 

as other parts of the global economy where 

recovery is less certain. The IMF has recently 

downgraded its forecast for global growth for 

2016 and 2017. 

While the low Canadian dollar is positive for 

Revelstoke’s tourism and foreign investment 

prospects, it does negatively impact the City’s 

budget when sourcing products from the US. 

Annual inflation in Canada averaged 1.4% in 

November 2015. Continued weakness in oil 

prices has had a marked impact on the 

Canadian economy and the likelihood is that 

this will continue for some time. This will 

inevitably continue to impact the Albertan 

economy and affect Revelstoke’s domestic 

tourism.   

There does not appear to be any inclination by 

the Bank of Canada to increase interest rates 

anytime soon so this should continue to buoy 

consumer confidence and domestic spending. 

Economic uncertainty has impacted the city in 

recent years by way of the erratic nature of 

building development.  Over the last 8 years 

new construction has been as shown in the 

following chart: 

 

Figure 9 – New construction  

As a result, it is difficult to predict with any degree of accuracy what the level of future activity might be and, therefore, the demand for future services along with the potential for future tax growth. 

RiskstothePlanThere are several risks that could impact the 

financial plan as presented: 

The final results for 2015 will not be 

known until the spring of 2016. It is too 

0

50

100

2008

2009

2010

2011

2012

2013

2014

2015

2016

Millions New construction

Rate Inc. 

2016  2017  2018  2019 2020

Water  2.6%  2.5%  11.1%  11.1% 5.0%Sewer  4.1%  5.9%  11.1%  0.0% 0.0%Garbage  2.0%  2.0%  2.0%  2.0% 2.0%Table 16 – Utility rate increases 

2016‐2020FinancialPlan

11  

soon to speculate on draft results for 

2015. 

Appeals against assessment values 

continue to be made and these are 

often successful resulting in lost 

revenues to the city. The city has lost 

about $150,000 in taxation revenues so 

far in 2015 as the result of successful 

appeals which will impact the results for 

the year. 

The assumption that revenue growth 

from new construction will be 3% a year 

is probably over optimistic based on the 

results in recent years. 

None of the recommendations from the 

Fire Department Review have been 

incorporated in the financial plan thus 

far. Some of them come with a cost and 

if Council wishes to pursue any or all of 

the recommendations appropriate 

provision for these costs will have to be 

made in the plan. 

The ongoing weakness in the Canadian 

dollar places upward pressure on costs 

beyond normal inflation for goods and 

services originating from the USA. 

ConclusionThe draft plan is based on a 2% property tax 

increase for residential property owners in 2016 

and 1% increase for all other classes (except 

Class 2). This is an average of 1.72% across all 

classes.  Council’s objective to achieve a tax 

ratio between business and residential rates  

closer to 2:1 may well require further shifting of 

the tax burden from business to residential. 

The City continues to experience significant 

assessment appeals spanning multiple years 

which creates uncertainty in projecting property 

tax revenues. Successful appeals can have 

significant impacts on the City’s projected 

income and detrimentally affect anticipated 

surpluses.  The establishment of a Tax 

Equalization reserve has gone some way in 

mitigating the effects in previous years. 

The pressure to deal with an ever increasing 

burden of capital projects as our infrastructure 

ages it places stress on our resources. This is 

particularly evident in the water function where 

significant rate increases are anticipated in later 

years in order to meet the costs of capital 

projects. Road reconstruction and rehabilitation 

is also an area that requires significant, ongoing 

funding. 

In order to ensure that tax and rate increases 

are maintained at reasonable levels it will be 

necessary to continue to critically review both 

capital projects and service levels.  

2016‐2020FinancialPlan

12  

Consolidated Financial Plan 2015 2016 2017 2018 2019 2020

Budget Actual

Ave. Actual 

3 years Budget  Budget Budget Budget Budget Budget

Revenues

Taxation (inc. PILTS, GILTS & 1% utility tax) ‐12,790,869 ‐12,635,670 ‐12,212,237 ‐12,921,704 ‐13,637,945 ‐14,514,845 ‐15,384,860 ‐15,717,260 ‐16,084,208

Sale of services ‐5,120,335 ‐5,481,575 ‐4,985,177 ‐5,305,953 ‐5,447,495 ‐5,670,437 ‐6,052,898 ‐6,327,638 ‐6,460,911

Other & own sources ‐1,006,800 ‐802,023 ‐879,349 ‐895,800 ‐936,800 ‐904,100 ‐904,100 ‐904,400 ‐904,400

Provincial unconditional transfers ‐600,000 ‐547,969 ‐549,182 ‐600,000 ‐600,000 ‐600,000 ‐600,000 ‐600,000 ‐600,000

Provincial conditional transfers ‐1,151,500 ‐1,912,535 ‐1,465,985 ‐1,121,500 ‐1,623,000 ‐1,623,000 ‐1,023,000 ‐1,023,000 ‐1,023,000

Non‐ TCA funding ‐1,922,600 ‐1,472,080 ‐1,621,379 ‐2,192,400 ‐1,240,160 ‐810,171 ‐631,492 ‐433,571 ‐522,618

Other contributions & donations ‐184,782 ‐36,729 ‐146,472 ‐184,782 ‐190,222 ‐206,408 ‐219,872 ‐259,932 ‐259,932

Total Revenues ‐22,776,885 ‐22,888,581 ‐21,859,782 ‐23,222,139 ‐23,675,622 ‐24,328,961 ‐24,816,221 ‐25,265,802 ‐25,855,069

         

Operating Expenses by type

Employment costs 7,173,925 6,668,949 6,755,663 7,291,400 7,486,400 7,613,291 7,745,275 7,881,052 8,026,048

Travel and meeting expenses 42,500 32,803 32,101 39,450 42,500 44,250 45,250 44,500 48,000

Telephone 64,450 62,836 62,575 61,250 57,800 59,750 61,200 61,825 63,025

Advertising 74,150 51,334 53,041 76,050 71,750 71,450 77,650 71,500 71,600

Licences and insurance 243,890 250,507 234,880 267,575 272,175 275,150 277,050 277,875 277,135

Memberships & conferences 109,100 71,273 83,339 126,600 134,500 131,750 134,500 135,500 137,000

Contracted services 3,217,350 3,117,548 2,928,401 3,108,050 3,287,145 3,378,295 3,413,100 3,418,600 3,443,267

Office supplies 49,000 50,915 44,901 53,150 54,900 54,150 55,150 54,950 55,500

Utilities 874,250 962,772 855,947 935,800 950,800 973,100 985,100 991,100 993,767

Miscellaneous 1,851,070 1,979,808 1,981,043 1,860,820 2,384,020 2,375,620 1,757,620 1,793,620 1,789,020

Freight, courier & postage 29,800 34,640 36,656 42,200 43,200 43,800 44,400 44,900 46,500

Legal & professional 124,100 187,623 116,830 167,000 133,500 140,500 143,500 141,500 142,000

Maintenance of buildings & equipment 381,650 359,847 328,449 412,250 422,750 436,750 442,250 443,250 443,500

Materials & supplies 607,710 523,096 536,396 645,150 647,150 662,850 667,350 664,350 669,750

Equipment rental (internal & external) 730,350 766,206 666,569 813,950 824,200 827,500 830,000 831,500 845,500

Grants‐in‐aid 90,000 79,769 80,342 95,000 97,500 100,000 100,000 100,000 100,000

Vehicle maintenance & fuel 445,500 433,494 408,168 447,500 468,500 486,750 487,000 487,000 492,000

Amortization 1,725,000 1,725,000 1,807,044 1,725,000 1,725,000 1,725,000 1,725,000 1,725,000 1,725,000

Interest 1,031,697 1,004,359 1,016,821 1,029,098 891,854 932,378 967,511 991,878 991,878

Sub‐total 18,865,492 18,362,780 18,029,166 19,197,293 19,995,644 20,332,334 19,958,906 20,159,899 20,360,489

Non‐TCA expenditures 2,208,614 1,681,012 1,895,524 2,636,965 1,729,160 1,186,171 1,090,492 793,571 886,618

Total operating expenses by type 21,074,106 20,043,792 19,924,690 21,834,258 21,724,804 21,518,505 21,049,397 20,953,471 21,247,107

         

Operating Expenses by Department

General Government 2,075,350 1,872,506 1,763,255 2,037,300 2,302,060 2,097,271 2,060,342 2,114,771 2,182,768

Fire Protection 1,443,525 1,559,045 1,468,545 1,503,250 1,395,545 1,455,636 1,395,275 1,399,402 1,421,573

Provincial Emergency Program 92,000 72,882 66,086 92,000 92,000 92,000 92,000 92,000 92,000

Planning and Development 597,100 408,465 514,643 584,200 714,200 663,450 743,700 644,200 656,200

Animal and Pest Control 127,050 117,225 112,661 147,550 150,050 152,800 155,300 160,375 162,935

Police and Court House services 1,948,850 1,987,792 1,867,173 2,086,150 2,164,350 2,195,400 2,242,050 2,230,550 2,288,633

Public Works 4,521,674 4,218,987 4,186,291 4,809,325 4,147,110 4,192,860 4,238,860 4,284,360 4,333,360

Transit  339,000 345,416 329,656 369,000 369,000 369,000 369,000 369,000 369,000

Environmental Health (Garbage collection and Recycling) 417,650 453,915 431,735 395,500 397,500 401,250 404,250 408,250 411,825

Public Health and Welfare (Cemetery) 154,950 133,886 143,998 151,150 138,200 139,500 138,800 128,600 130,350

Community Economic Development 1,679,650 1,714,257 1,772,296 1,580,500 2,056,000 2,061,000 1,464,000 1,472,250 1,475,750

Recreation and Culture 3,212,560 2,971,360 3,022,076 3,328,435 3,378,385 3,337,260 3,378,860 3,253,135 3,329,635

Amortization of capital assets 1,725,000 1,725,000 1,807,044 1,725,000 1,725,000 1,725,000 1,725,000 1,725,000 1,725,000

Water operating 940,350 711,876 709,621 1,125,200 1,036,200 903,250 897,500 900,000 896,750

Sewer operating 767,700 746,821 712,788 870,600 767,350 800,450 776,950 779,700 779,450

Debt interest payments 1,031,698 1,004,359 1,016,821 1,029,098 891,854 932,378 967,511 991,878 991,878

Total operating expenses by Department 21,074,107 20,043,792 19,924,690 21,834,258 21,724,804 21,518,505 21,049,397 20,953,471 21,247,107

Operating (Surplus)/Deficit ‐1,702,778 ‐2,844,789 ‐1,935,092 ‐1,387,881 ‐1,950,817 ‐2,810,456 ‐3,766,824 ‐4,312,331 ‐4,607,962

Capital expenditures 2,698,221 1,674,533 2,001,075 4,105,247 7,373,500 5,955,900 8,266,100 7,847,100 12,558,300

Contributions from reserves ‐1,907,500 ‐626,004 ‐563,568 ‐2,098,740 ‐2,760,200 ‐2,752,600 ‐3,252,800 ‐2,998,800 ‐1,885,000

Contributions from DCC's ‐350,000 0 ‐3,952 ‐90,000 ‐1,160,000 0 ‐400,000 0 0

Contributions from Grants ‐195,000 ‐870,774 ‐358,917 ‐936,000 ‐1,549,967 ‐1,489,967 ‐1,504,967 ‐2,626,300 ‐1,695,300

Debt proceeds 0 0 ‐835,374 ‐650,000 ‐1,603,333 ‐633,333 ‐1,433,333 ‐887,000 ‐7,833,000

Capital out of revenue 245,721 177,755 239,264 330,507 300,000 1,080,000 1,675,000 1,335,000 1,145,000

           

Debt principal 620,824 620,824 567,469 620,824 620,824 674,667 695,936 744,069 744,069

Transfer from equity in capital assets ‐1,725,000 ‐1,725,000 ‐1,807,044 ‐1,725,000 ‐1,725,000 ‐1,725,000 ‐1,725,000 ‐1,725,000 ‐1,725,000

Transfers to reserve 2,611,000 3,524,639 2,627,925 2,140,000 2,561,000 2,865,000 3,305,000 3,330,000 2,890,000

(Surplus)/Deficit 49,767 ‐246,570 ‐307,477 ‐21,549 ‐193,993 84,211 184,112 ‐628,261 ‐1,553,893

2014

 

Table 18 – Consolidated Financial Plan 

2016‐2020FinancialPlan

13  

Consolidated Financial Plan TANGIBLE CAPITAL ASSETS NON‐TANGIBLE CAPITAL ASSETS

Capital  EXPENDITURES   EXPENDITURES

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Expenditures:

General Government 62,500 0 570,000 225,000 0   399,860 171,071 78,992 116,071 155,618

Fire  201,000 179,300 168,800 181,000 168,000   49,500 64,000 15,000 0 0

PEP 0 0 0 0 0   0 0 0 0 0

Planning 75,000 0 0 0 0   100,000 40,000 110,000 0 0

Animal Control 0 0 7500 0 0    0 0 0 0 0

RCMP & Court House 45,900 63,400 38,400 6,000 6,000   76,800 54,600 58,500 17,000 37,000

Land 150,000 150,000 150,000 150,000 150,000   0 0 0 0 0

Public Works 2,088,600 1,465,700 2,564,700 1,770,300 1,517,000   384,000 363,500 377,000 386,500 386,000

Cemetery 6,700 3,900 0 0 0   15,000 15,000 12,500 0 0

CED 28,300 28300 28300 28300 28300    60,000 60,000 60,000 60,000 60,000

Recreation 125,500 321,300 59,900 100,000 7,016,000   339,500 241,000 235,500 66,000 101,500

Total 2,783,500 2,211,900 3,587,600 2,460,600 8,885,300 1,424,660 1,009,171 947,492 645,571 740,118

Sources of funding:

Revenue 300,000 1,080,000 1,675,000 1,335,000 1,145,000   489,000 376,000 459,000 360,000 364,000

Building reserve 60,000 0 532,500 225,000 20,000 129,500 57,500 20,500 17,000 17,000

Fire reserve 106,000 179,300 168,800 181,000 168,000   49,500 64,000 15,000 0 0

Equipment reserve 626,100 405,700 544,700 445,300 362,000   287,360 172,071 85,992 121,071 160,618

Land reserve 150,000 150,000 150,000 150,000 150,000 0 0 0 0 0

Cemetery reserve 6,700 3,900 0 0 0   15,000 15,000 12,500 0 0

RCMP reserve 45,900 63,400 38,400 6,000 6,000   34,800 8,100 38,000 0 20,000

Recreation reserve 105,500 301,300 49,900 90,000 6,000   339,500 236,000 235,500 66,000 96,500

Grants 195,000 0 0 0 0   0 0 0 0 0

Gas tax  28,300 28,300 28,300 28,300 28,300   80,000 80,500 81,000 81,500 82,000

DCC's 1,160,000 0 400,000 0 0   0 0 0 0 0

Debt 0 0 0 0 7,000,000   0 0 0 0 0

2,783,500 2,211,900 3,587,600 2,460,600 8,885,300   1,424,660 1,009,171 947,492 645,571 740,118

‐                ‐                 ‐                 ‐                ‐                 ‐                  ‐              ‐            ‐            ‐           

Expenditures:

Water 3,735,000 2,714,000 3,118,500 1,711,500 953,000   212,250 61,000 51,000 53,250 52,000

Sewer 855,000 1,030,000 1,560,000 3,675,000 2,720,000   92,250 116,000 92,000 94,750 94,500

4,590,000 3,744,000 4,678,500 5,386,500 3,673,000   304,500 177,000 143,000 148,000 146,500

Sources of funding:

Water reserve 1,125,000 619,000 1,008,500 1,286,500 953,000   177,250 36,000 25,500 27,750 26,000

Grant 1,266,667 1,461,667 1,476,667 425,000 0 10,000 0 0 0 0

Gas tax 60,000 0 0 0 0 0 0 0 0 0

DCC's 0 0 0 0 0   25,000 25,000 25,500 25,500 26,000

Debt 1,283,333 633,333 633,333 0 0   0 0 0 0 0

3,735,000 2,714,000 3,118,500 1,711,500 953,000 212,250 61,000 51,000 53,250 52,000

Sources of funding:

Sewer reserve  535,000 1,030,000 760,000 615,000 220,000   67,250 91,000 66,500 69,250 68,500

Grant  0 0 0 2,173,000 1,667,000   0 0 0 0 0

DCC  0 0 0 0 0   25,000 25,000 25,500 25,500 26,000

Debt  320,000 0 800,000 887,000 833,000    0 0 0 0 0

855,000 1,030,000 1,560,000 3,675,000 2,720,000   92,250 116,000 92,000 94,750 94,500

Total Capital Expenditure 7,373,500 5,955,900 8,266,100 7,847,100 12,558,300 1,729,160 1,186,171 1,090,492 793,571 886,618

Total Sources of Funding:

Reserves 2,760,200 2,752,600 3,252,800 2,998,800 1,885,000 1,100,160 679,671 499,492 301,071 388,618

Grants and other 1,549,967 1,489,967 1,504,967 2,626,300 1,695,300 90,000 80,500 81,000 81,500 82,000

Debt 1,603,333 633,333 1,433,333 887,000 7,833,000 0 0 0 0 0

DCC's 1,160,000 0 400,000 0 0 50,000 50,000 51,000 51,000 52,000

Revenue 300,000 1,080,000 1,675,000 1,335,000 1,145,000 489,000 376,000 459,000 360,000 364,000

7,373,500 5,955,900 8,266,100 7,847,100 12,558,300 1,729,160 1,186,171 1,090,492 793,571 886,618

Total Long Term Debt 16,847,561 16,454,518 16,797,375 16,500,272 23,151,432

Total Capital Reserves 3,291,828 2,845,386 2,534,576 2,724,695 3,513,150

DCC Fund 1,083,820 1,379,958 1,265,315 1,514,379 1,771,300

 Table 19 – Consolidated Capital Plan 

2016‐2020FinancialPlan

14  

General Operating Financial Plan 2015 2016 2017 2018 2019 2020

  Budget Actual

Ave. Actual 3 

years Budget  Budget Budget Budget Budget Budget

Revenues

Taxation (inc. PILTS, GILTS & 1% utility tax) ‐12,548,869 ‐12,389,826 ‐12,049,048 ‐12,662,418 ‐13,361,374 ‐14,220,987 ‐15,073,717 ‐15,388,831 ‐15,738,493

Sale of services ‐2,400,283 ‐2,682,018 ‐2,451,762 ‐2,473,244 ‐2,502,310 ‐2,528,424 ‐2,543,828 ‐2,557,875 ‐2,576,818

Other & own sources ‐1,006,800 ‐802,023 ‐879,349 ‐895,800 ‐936,800 ‐904,100 ‐904,100 ‐904,400 ‐904,400

Provincial unconditional transfers ‐600,000 ‐547,969 ‐549,182 ‐600,000 ‐600,000 ‐600,000 ‐600,000 ‐600,000 ‐600,000

Provincial conditional transfers ‐1,151,500 ‐1,912,535 ‐1,465,985 ‐1,121,500 ‐1,623,000 ‐1,623,000 ‐1,023,000 ‐1,023,000 ‐1,023,000

Non‐ TCA funding ‐1,667,600 ‐1,339,389 ‐1,455,217 ‐1,691,900 ‐935,660 ‐633,171 ‐488,492 ‐285,571 ‐376,118

Other contributions & donations ‐60,000 0 ‐48,981 ‐60,000 ‐60,000 ‐60,000 ‐60,000 ‐60,000 ‐60,000

Total Revenues ‐19,435,051 ‐19,673,760 ‐18,899,523 ‐19,504,862 ‐20,019,143 ‐20,569,682 ‐20,693,137 ‐20,819,677 ‐21,278,829

Operating Expenses by type

Employment costs 6,624,425 6,177,391 6,288,352 6,747,650 6,942,400 7,057,791 7,185,025 7,320,802 7,465,798

Travel and meeting expenses 28,500 24,832 27,182 32,950 36,000 37,250 38,250 37,500 41,000

Telephone 59,450 57,757 57,856 55,650 52,200 54,150 55,600 56,225 57,425

Advertising 71,850 51,334 52,991 73,750 69,450 69,150 75,350 69,200 69,300

Licences and insurance 209,390 219,043 201,480 236,325 240,925 243,650 245,550 246,125 247,385

Memberships & conferences 109,100 71,273 83,339 126,600 134,500 131,750 134,500 135,500 137,000

Contracted services 3,026,550 2,966,259 2,806,237 2,920,250 3,099,345 3,185,995 3,220,800 3,226,300 3,250,967

Office supplies 49,000 50,915 44,901 53,150 54,900 54,150 55,150 54,950 55,500

Utilities 735,200 795,438 713,796 794,700 807,700 826,950 838,950 844,950 847,617

Miscellaneous 1,616,270 1,747,644 1,745,339 1,625,520 2,148,720 2,139,820 1,521,820 1,557,820 1,553,220

Freight, courier & postage 25,200 19,105 19,248 28,300 29,300 29,900 30,500 31,000 32,600

Legal & professional 124,100 187,623 116,830 167,000 133,500 140,500 143,500 141,500 142,000

Maintenance of buildings & equipment 381,650 359,847 328,449 412,250 422,750 436,750 442,250 443,250 443,500

Materials & supplies 397,910 376,226 378,645 420,150 420,650 429,100 433,600 430,600 436,000

Equipment rental (internal & external) 661,650 703,547 606,795 727,150 737,400 740,600 743,100 744,600 758,600

Grants‐in‐aid 90,000 79,769 80,342 95,000 97,500 100,000 100,000 100,000 100,000

Vehicle maintenance & fuel 445,500 419,411 399,329 431,500 452,500 470,750 471,000 471,000 476,000

Amortization 1,200,000 1,200,000 1,307,853 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000

Interest 567,001 542,853 552,089 564,401 440,064 442,564 442,564 442,564 442,564

Sub‐total 16,422,746 16,050,268 15,811,053 16,712,296 17,519,804 17,790,820 17,377,509 17,553,886 17,756,475

Non‐TCA expenditures 1,953,614 1,548,321 1,727,304 2,136,465 1,424,660 1,009,171 947,492 645,571 740,118

Total operating expenses by type 18,376,360 17,598,589 17,538,357 18,848,761 18,944,464 18,799,991 18,325,000 18,199,457 18,496,593

Operating Expenses by Department

General Government 2,075,350 1,872,506 1,763,255 2,037,300 2,302,060 2,097,271 2,060,342 2,114,771 2,182,768

Fire Protection 1,443,525 1,559,045 1,468,545 1,503,250 1,395,545 1,455,636 1,395,275 1,399,402 1,421,573

Provincial Emergency Program 92,000 72,882 66,086 92,000 92,000 92,000 92,000 92,000 92,000

Planning and Development 597,100 408,465 514,643 584,200 714,200 663,450 743,700 644,200 656,200

Animal and Pest Control 127,050 117,225 112,661 147,550 150,050 152,800 155,300 160,375 162,935

Police and Court House services 1,948,850 1,987,792 1,867,173 2,086,150 2,164,350 2,195,400 2,242,050 2,230,550 2,288,633

Public Works 4,521,674 4,218,987 4,186,291 4,809,325 4,147,110 4,192,860 4,238,860 4,284,360 4,333,360

Transit  339,000 345,416 329,656 369,000 369,000 369,000 369,000 369,000 369,000

Environmental Health (Garbage collection and Recycling) 417,650 453,915 431,735 395,500 397,500 401,250 404,250 408,250 411,825

Public Health and Welfare (Cemetery) 154,950 133,886 143,998 151,150 138,200 139,500 138,800 128,600 130,350

Community Economic Development 1,679,650 1,714,257 1,772,296 1,580,500 2,056,000 2,061,000 1,464,000 1,472,250 1,475,750

Recreation and Culture 3,212,560 2,971,360 3,022,076 3,328,435 3,378,385 3,337,260 3,378,860 3,253,135 3,329,635

Amortization of capital assets 1,200,000 1,200,000 1,307,853 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000

Debt interest payments 567,001 542,853 552,089 564,401 440,064 442,564 442,564 442,564 442,564

Total operating expenses by Department 18,376,360 17,598,589 17,538,357 18,848,761 18,944,464 18,799,991 18,325,000 18,199,457 18,496,593

Operating (Surplus)/Deficit ‐1,058,691 ‐2,075,170 ‐1,361,165 ‐656,101 ‐1,074,679 ‐1,769,691 ‐2,368,136 ‐2,620,220 ‐2,782,236

Capital expenditures 1,211,721 1,374,448 1,674,663 2,450,247 2,783,500 2,211,900 3,587,600 2,460,600 8,885,300

Contributions from reserves ‐790,000 ‐325,919 ‐241,108 ‐1,153,740 ‐1,100,200 ‐1,103,600 ‐1,484,300 ‐1,097,300 ‐712,000

Contributions from DCC's ‐50,000 0 0 ‐90,000 ‐1,160,000 0 ‐400,000 0 0

Contributions from Grants ‐126,000 ‐870,774 ‐358,917 ‐876,000 ‐223,300 ‐28,300 ‐28,300 ‐28,300 ‐28,300

Debt proceeds 0 0 ‐835,374 0 0 0 0 0 ‐7,000,000

Capital out of revenue 245,721 177,755 239,264 330,507 300,000 1,080,000 1,675,000 1,335,000 1,145,000

Debt principal 357,493 357,493 312,462 357,493 357,493 357,493 357,493 357,493 357,493

Transfer from equity in capital assets ‐1,200,000 ‐1,200,000 ‐1,307,853 ‐1,200,000 ‐1,200,000 ‐1,200,000 ‐1,200,000 ‐1,200,000 ‐1,200,000

Transfers to reserve 1,561,000 2,464,639 1,876,259 1,290,000 1,311,000 1,515,000 1,750,000 1,330,000 990,000

(Surplus)/Deficit ‐94,477 ‐275,283 ‐241,034 121,900 ‐306,186 ‐17,197 214,357 ‐797,727 ‐1,489,743

2014

 Table 20 – General operating financial plan 

2016‐2020FinancialPlan

15  

Water Operating

Ave actual 

last 3 

years 2015 2016 2017 2018 2019 2020

Budget Actual Budget Budget Budget Budget Budget Budget

Revenues

Sale of services ‐1,745,500 ‐1,695,264 ‐1,478,522 ‐1,818,671 ‐1,886,219 ‐2,007,631 ‐2,256,225 ‐2,516,919 ‐2,631,248

DCC funding ‐2,060

Non‐ TCA funding ‐100,500 ‐32,342 ‐91,842 ‐304,250 ‐212,250 ‐61,000 ‐51,000 ‐53,250 ‐52,000

Other contributions & donations 0 ‐10,000 0 0 0 0 0 0 0

Total Revenues ‐1,846,000 ‐1,737,606 ‐1,572,424 ‐2,122,921 ‐2,098,469 ‐2,068,631 ‐2,307,225 ‐2,570,169 ‐2,683,248

Operating Expenses by type

Employment costs 336,500 254,127 245,269 306,000 308,500 316,750 321,000 321,000 321,000

Travel and meeting expenses 8,500 5,776 2,171 3,500 3,500 4,000 4,000 4,000 4,000

Telephone 3,000 2,862 2,951 3,600 3,600 3,600 3,600 3,600 3,600

Advertising 2,000 0 50 2,000 2,000 2,000 2,000 2,000 2,000

Licences and insurance 24,000 19,073 23,972 19,250 19,250 19,500 19,500 19,750 17,750

Memberships & conferences 0 0 0 0 0 0 0 0 0

Contracted services 135,000 102,498 64,782 131,000 131,000 133,500 133,500 133,500 133,500

Office supplies 0 0 0 0 0 0 0 0 0

Utilities 60,050 71,952 56,103 60,600 61,100 62,650 62,650 62,650 62,650

Miscellaneous 117,500 116,812 119,440 117,500 117,500 117,500 117,500 117,500 117,500

Freight, courier & postage 2,500 5,295 4,008 2,500 2,500 2,500 2,500 2,500 2,500

Legal & professional 0 0 0 0 0 0 0 0 0

Maintenance of buildings & equipment 0 0 0 0 0 0 0 0 0

Materials & supplies 122,300 70,456 90,462 136,500 136,500 141,750 141,750 141,750 141,750

Equipment rental (internal & external) 28,500 21,427 9,509 28,500 28,500 28,500 28,500 28,500 28,500

Grants‐in‐aid 0 0 0 0 0 0 0 0 0

Vehicle maintenance & fuel 0 9,257 2,562 10,000 10,000 10,000 10,000 10,000 10,000

Non‐TCA expenditures 100,500 32,342 91,842 304,250 212,250 61,000 51,000 53,250 52,000

Amortization 400,000 400,000 295,536 400,000 400,000 400,000 400,000 400,000 400,000

Interest 296,048 292,857 294,172 296,048 277,702 310,285 331,818 342,585 342,585

Total operating expenses 1,636,398 1,404,732 1,302,829 1,821,248 1,713,902 1,613,535 1,629,318 1,642,585 1,639,335

Operating (surplus)/deficit ‐209,603 ‐332,874 ‐269,595 ‐301,673 ‐384,567 ‐455,096 ‐677,907 ‐927,584 ‐1,043,913

Capital expenditures 659,000 223,424 660,190 945,000 3,735,000 2,714,000 3,118,500 1,711,500 953,000

Contributions from reserves ‐590,000 ‐223,424 ‐266,491 ‐235,000 ‐1,125,000 ‐619,000 ‐1,008,500 ‐1,286,500 ‐953,000

Contributions from DCC's 0 0 0 0 0 0 0 0

Contributions from Grants ‐69,000 0 ‐193699 ‐60,000 ‐1,326,667 ‐1,461,667 ‐1,476,667 ‐425,000 0

Debt proceeds 0 ‐200,000 ‐650,000 ‐1,283,333 ‐633,333 ‐633,333 0 0

Capital out of revenue 0 0 0 0 0 0 0 0

Debt principal 152,085 152,085 147,283 152,085 152,085 195,182 216,450 237,719 237,719

Transfer from equity in capital assets ‐400,000 ‐400,000 ‐295,536 ‐400,000 ‐400,000 ‐400,000 ‐400,000 ‐400,000 ‐400,000

Transfers to reserve 320,000 330,000 466,667 550,000 700,000 600,000 850,000 1,350,000 1,150,000

(Surplus)/Deficit ‐137,518 ‐250,789 48,819 412 67,518 ‐59,914 ‐11,456 260,135 ‐56,194

2014

 Table 21 – Water operating plan 

2016‐2020FinancialPlan

16  

Sewer Operating 2015 2016 2017 2018 2019 2020

Budget Actual Budget Budget Budget Budget Budget Budget

Revenues

Taxation and grants ‐242,000 ‐245,845 ‐163,190 ‐259,286 ‐276,572 ‐293,857 ‐311,143 ‐328,429 ‐345,715

Sale of services ‐974,552 ‐1,104,293 ‐954,701 ‐1,014,039 ‐1,058,966 ‐1,134,383 ‐1,252,844 ‐1,252,844 ‐1,252,844

Non‐ TCA funding ‐154,500 ‐100,349 ‐92,226 ‐196,250 ‐92,250 ‐116,000 ‐92,000 ‐94,750 ‐94,500

Other contributions & donations ‐124,782 ‐26,729 ‐92,098 ‐124,782 ‐130,222 ‐146,408 ‐159,872 ‐199,932 ‐199,932

Total Revenues ‐1,495,833 ‐1,477,215 ‐1,302,214 ‐1,594,356 ‐1,558,009 ‐1,690,648 ‐1,815,859 ‐1,875,956 ‐1,892,992

Operating Expenses by type

Employment costs 213,000 237,431 221,664 237,750 235,500 238,750 239,250 239,250 239,250

Travel and meeting expenses 5,500 2,195 917 3,000 3,000 3,000 3,000 3,000 3,000

Telephone 2,000 2,217 1,770 2,000 2,000 2,000 2,000 2,000 2,000

Advertising 300 0 0 300 300 300 300 300 300

Licences and insurance 10,500 12,392 10,404 12,000 12,000 12,000 12,000 12,000 12,000

Memberships & conferences 0 0 0 0 0 0 0 0 0

Contracted services 55,800 48,791 43,345 56,800 56,800 58,800 58,800 58,800 58,800

Office supplies 0 0 0 0 0 0 0 0 0

Utilities 79,000 95,383 81,163 80,500 82,000 83,500 83,500 83,500 83,500

Miscellaneous 117,300 115,351 117,005 117,800 117,800 118,300 118,300 118,300 118,300

Freight, courier & postage 2,100 10,240 12,665 11,400 11,400 11,400 11,400 11,400 11,400

Legal & professional 0 0 0 0 0 0 0 0 0

Maintenance of buildings & equipment 0 0 0 0 0 0 0 0 0

Materials & supplies 87,500 76,414 79,793 88,500 90,000 92,000 92,000 92,000 92,000

Equipment rental (internal & external) 40,200 41,233 46,587 58,300 58,300 58,400 58,400 58,400 58,400

Grants‐in‐aid 0 0 0 0 0 0 0 0 0

Vehicle maintenance & fuel 0 4,827 3,192 6,000 6,000 6,000 6,000 6,000 6,000

Non‐TCA expenditures 154,500 100,349 94,283 196,250 92,250 116,000 92,000 94,750 94,500

Amortization 125,000 125,000 173,016 125,000 125,000 125,000 125,000 125,000 125,000

Interest 168,649 168,649 169,745 168,649 174,089 179,529 193,129 206,729 206,729

Total operating expenses by type 1,061,349 1,040,470 1,055,549 1,164,249 1,066,439 1,104,979 1,095,079 1,111,429 1,111,179

Operating (surplus)/deficit ‐434,485 ‐436,745 ‐246,665 ‐430,107 ‐491,570 ‐585,669 ‐720,780 ‐764,527 ‐781,813

Capital expenditures 827,500 76,661 29,506 710,000 855,000 1,030,000 1,560,000 3,675,000 2,720,000

Contributions from reserves ‐527,500 ‐76,661 ‐25,554 ‐710,000 ‐535,000 ‐1,030,000 ‐760,000 ‐615,000 ‐220,000

Contributions from DCC's ‐300,000 0 ‐3,952 0 0 0 0 0 0

Contributions from Grants 0 0 0 0 0 0 0 ‐2,173,000 ‐1,667,000

Debt proceeds 0 0 0 0 ‐320,000 0 ‐800,000 ‐887,000 ‐833,000

Capital out of revenue 0 0 0 0 0 0 0 0

Debt principal 111,246 111,246 102,922 111,246 111,246 121,992 121,992 148,857 148,857

Transfer from equity in capital assets ‐125,000 ‐125,000 ‐173,016 ‐125,000 ‐125,000 ‐125,000 ‐125,000 ‐125,000 ‐125,000

Transfers to reserve 730,000 730,000 341,667 300,000 550,000 750,000 705,000 650,000 750,000

(Surplus)/Deficit 281,761 279,501 24,908 ‐143,861 44,675 161,323 ‐18,789 ‐90,670 ‐7,956

2014

Ave. 

actual last 

3 years

 Table 22 – Sewer operating plan 

2016‐2020FinancialPlan

17  

General Operating Ave. Actual 2015 2016 2017 2018 2019 2020

Contracted Services Budget Actual Last 3 years Budget Budget Budget Budget Budget Budget

Blue #'s are offset by equivalent revenues

Mayor and Council 20,000 20,358 18,843 26,000 26,000 26,000 26,000 26,000 26,000

City property 500 922 471 500 500 500 500 500 500

City Hall maintenance 4,750 7,171 5,097 5,250 5,250 5,750 5,750 5,750 5,750

Administration/Finance 3,000 5,724 3,728 3,000 3,000 3,500 3,500 3,500 3,500

Elections & Referendums 20,000 13,464 4,532 0 0 0 25,000 0 0

Labour management 11,650 6,521 8,003 2,500 2,500 2,500 2,500 2,500 2,500

Fire Department Administration 0 75 33 0 0 0 0 0 0

Fire Fighting force 25,000 27,853 24,766 30,000 38,695 64,695 35,000 35,000 35,000

Fire station 0 0 1,436 0 0 0 0 0 0

PEP 3,600 17,859 11,636 3,600 3,600 3,600 3,600 3,600 3,600

Emergency Programme Coordinator 56,000 0 14,241 56,000 40,000 40,000 40,000 40,000 40,000

ESS Coordinator 9,000 16,444 14,190 9,000 25,000 25,000 25,000 25,000 25,000

Planning 50,000 9,479 23,918 5,000 10,000 10,000 10,000 10,000 10,000

Planning ‐ funded 20,000 0 0 0 0 0 0 0 0

Animal & Pest control 100,000 106,563 99,379 110,000 126,000 128,500 131,000 134,500 137,000

Police station 19,000 35,099 24,463 32,000 32,000 32,000 32,000 32,000 32,000

RCMP 1,250,000 1,250,273 1,205,392 1,260,000 1,375,000 1,420,000 1,445,000 1,470,000 1,495,000

RCMP Overtime 60,000 44,056 42,846 65,000 65,000 65,000 70,000 70,000 73,333

RCMP Prisoner costs 60,000 113,958 70,169 80,000 80,000 80,000 85,000 85,000 88,333

Victim Services 55,000 56,266 55,392 55,000 56,000 56,500 57,000 57,000 57,333

Court House 42,800 36,047 35,227 42,800 43,800 43,800 44,800 44,800 45,467

Engineering ‐ consulting fees 0 9,241 3,442 0 0 0 0 0 0

Public Works administration 0 67 710 0 0 0 0 0 0

Engineering services 7,000 8,694 13,831 7,000 7,000 7,500 7,500 7,500 8,000

Equipment maintenance 9,750 13,415 15,039 12,750 12,750 12,750 12,750 12,750 12,750

Municipal yards & buildings 27,000 28,646 28,772 27,000 27,000 27,500 27,500 27,500 28,500

Street maintenance 85,000 72,180 61,396 86,000 86,000 87,000 87,000 87,000 88,000

Sidewalk maintenance 5,000 6,789 4,036 5,000 5,000 5,000 5,000 5,000 5,000

Drainage Ditch maintenance 0 0 46,384 0 0 0 0 0 0

Storm Sewer maintenance 4,000 4,162 2,726 4,000 4,000 4,000 4,000 4,000 4,000

Snow removal 378,400 322,569 304,861 335,000 364,400 365,000 365,000 365,000 365,000

Custom work 1,050 40,314 18,314 1,050 1,050 1,100 1,100 1,100 1,100

Street lighting 15,000 9,869 11,552 16,000 16,000 16,000 16,000 16,000 16,000

Traffic services 3,500 4,408 2,236 3,500 3,500 3,500 3,500 3,500 3,500

Railway Crossing maintenance 12,000 8,580 11,078 12,000 12,000 12,000 12,000 12,000 12,000

Bridge maintenance 1,000 4,348 2,384 15,000 15,000 15,000 15,000 15,000 1,500

Transit 336,500 343,821 325,038 366,500 366,500 366,500 366,500 366,500 366,500

Garbage collection 2,500 665 1,240 2,750 2,750 3,000 3,000 3,000 3,000

Recycling 110,000 119,232 112,580 0 0 0 0 0 0

Garbage bins 15,000 7,678 8,948 15,000 15,000 15,000 15,000 15,000 15,000

Cemetery 1,000 471 487 1,000 1,000 1,000 1,000 1,000 1,000

Tourism & Public Relations 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000

Ski Hill 0 0 1,760 0 0 0 0 0 0

Economic Development 32,000 26,427 25,237 32,000 32,000 32,000 32,000 34,000 34,000

Recreation administration 2,000 894 846 2,000 2,500 2,500 2,000 2,000 2,500

Community centre 11,000 11,192 9,310 11,000 11,500 11,500 11,500 11,500 11,500

Community Centre ‐ snow removal 6,000 14,630 6,150 15,000 15,000 15,000 15,000 15,000 15,000

Aquatic centre 1,800 1,846 3,537 1,800 1,800 1,800 1,800 1,800 1,800

Arena 39,500 43,005 31,581 57,000 57,000 57,000 57,000 57,000 57,000

Williamson's Lake 2,750 1,449 878 2,750 2,750 3,000 3,000 3,000 3,000

Boulevard maintenance 4,000 2,247 1,891 4,000 4,000 4,000 4,000 4,000 4,000

Revit maintenance 11,000 8,035 6,632 11,000 11,500 12,500 13,500 13,500 13,500

Parks ‐ general 35,500 26,759 20,123 29,000 29,000 35,000 35,000 35,000 35,000

Columbia View Park 2,500 721 240 1,000 500 500 500 500 500

Museum 4,000 4,587 5,754 6,000 8,000 8,000 8,000 8,000 8,000

Trails & Walkways 5,500 6,188 5,676 7,500 7,500 9,000 9,000 9,000 9,000

SILGA Convention 0 0 2,808 0 0 0 0 0 0

TOTAL 3,026,550 2,966,259 2,806,237 2,920,250 3,099,345 3,185,995 3,220,800 3,226,300 3,250,967

2014

 Table 23 – General operating contracted services 

2016‐2020FinancialPlan

18  

General Operating ‐ Miscellaneous Expenses Ave. Actual 2015 2016 2017 2018 2019 2020

Blue #'s are offset by equivalent revenues Budget Actual Last 3 years Budget Budget Budget Budget Budget Budget

Administration Charges 60,400 60,400 60,400 61,500 61,500 61,500 61,500 61,500 61,500

Bad Debt expense 100 0 0 100 100 100 100 100 100

Cash over short 10 881 454 10 10 10 10 10 10

Software support 91,000 62,096 66,021 97,000 123,000 115,000 118,000 127,000 120,000

Programming services 3,500 15,238 6,080 3,500 3,500 3,500 3,500 3,500 3,500

Computer leases 15,000 0 0 18,000 19,500 19,500 19,500 21,500 23,500

Taxes city property 0 0 2,099 0 0 0 0 0 0

Columbia Basin Trust 10,000 11,130 8,233 10,000 10,000 10,000 10,000 10,000 10,000

Contingency 20,000 940 2,613 20,000 20,000 20,000 20,000 20,000 20,000

Received from SD19 for election costs (17,950) 0 0 0 0 0 (23,000) 0 0

Rental of buildings 1,800 0 0 0 0 0 2,000 0 0

Uniform Maintenance 25,000 24,403 18,387 28,000 28,000 28,000 28,000 28,000 28,000

Training Supplies 18,000 16,138 12,569 20,000 23,200 21,500 21,500 21,500 21,500

Recovery from PEP 0 (5,377) (2,311) 0 0 0 0 0 0

Planning ‐ Sign & Facade Design 0 0 2,168 0 0 0 0 0 0

Advisory Planning Commission 2,000 0 0 0 0 0 0 0 0

Enhancement Planning ‐ Public Art 10,000 0 2,719 10,000 10,000 8,000 8,000 8,000 8,000

Heritage Commission                       2,000 0 278 0 0 0 0 0 0

Auxiliary police 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000

Crimestoppers 1,000 0 667 1,000 1,000 1,000 1,000 1,000 1,000

Surveys & Easements 0 0 265 0 0 0 0 0 0

Tipping Fees 80,000 73,635 78,235 85,000 85,000 85,000 85,000 85,000 85,000

Air Monitoring Equipment 5,000 0 1,197 5,000 0 0 0 0 0

Street Entertainment 45,000 45,000 45,000 50,000 50,000 52,000 52,000 54,000 54,000

Tourism Marketing 45,000 31,434 39,865 45,000 45,000 45,000 45,000 45,000 45,000

Tourism Development Coordinator 25,000 0 16,667 0 0 0 0 0 0

Promotion Programs 2,000 0 0 2,000 2,000 2,000 2,000 2,000 2,000

Social Strategy Co‐ordinator 53,000 47,871 50,015 53,000 53,000 53,000 53,000 55,000 55,000

Leases 9,000 1,987 5,952 9,000 5,000 5,000 5,000 5,000 5,000

EDC Special Programs 30,000 14,064 25,914 30,000 30,000 30,000 30,000 30,000 30,000

EDC Tourism Infrastructure ‐ Funded 550,000 554,096 587,019 550,000 600,000 600,000 0 0 0

EDC Tourism Marketing ‐ Funded 300,000 475,917 421,238 300,000 400,000 400,000 400,000 400,000 400,000

EDC Tourism Marketing ‐ Funded (Transit buses) 0 0 12,725 0 0 0 0 0 0

EDC Job opportunities program ‐ Funded 0 0 548 0 0 0 0 0 0

EDC Airport Development Study ‐ Funded 0 3,740 1,322 0 0 0 0 0 0

EDC Other ‐ Funded 50,000 134,885 117,692 50,000 50,000 50,000 50,000 50,000 50,000

EDC CBT 351,500 351,500 351,500 351,500 351,500

EDC Resort Shuttle ‐ Funded 110,000 76,760 53,880 110,000 110,000 110,000 110,000 110,000 110,000

EDC ‐ Caribou Maternity Pen Project 86 29

Recreation Commission 500 0 11 500 500 500 500 500 500

Summer Programs 10,000 1,252 3,815 10,000 10,000 10,000 10,000 10,000 10,000

Fall Programs 0 0 1,907 0 0 0 0 0 0

Spring Programs 0 0 600 0 0 0 0 0 0

Winter Programs 0 0 2,698 0 0 0 0 0 0

Leadership & Comm. Dev. 2,000 0 9 2,000 2,000 2,000 2,000 2,000 2,000

Special Events 7,000 6,635 6,234 7,000 7,000 7,000 7,000 7,000 7,000

SOCAN 5,500 5,934 1,978 1,500 1,500 1,500 1,500 1,500 1,500

Banner Fund 2,000 10,191 4,792 3,000 3,000 3,000 3,000 3,000 3,000

SILGA Convention 0 0 6,588 0 0 0 0 0 0

Special Presentations 10,000 9,467 9,488 10,000 10,000 10,000 10,000 10,000 10,000

HST ‐ no rebate 0 35,430 35,870 0 0 0 0 0 0

Carbon offset purchase 29,410 29,410 29,410 29,410 29,410 30,210 30,210 30,210 30,610

TOTAL 1,616,270 1,747,644 1,745,339 1,625,520 2,148,720 2,139,820 1,521,820 1,557,820 1,553,220

2014

 Table 24 – General operating miscellaneous expenses 

!

February 11, 2016

Mayor and Council, City of Revelstoke, Revelstoke, BC V0E 2S0

By email: budget@revelstoke.ca

Mayor and Council:

Re: 2016-2020 Financial Plan - Management of Heritage Assets

I am writing regarding the omission of revenue and expenses for management of Revelstoke’s heritage assets in the 2016-2020 Financial Plan now out for public comment.

The Financial Plan includes Council objectives to manage Revelstoke’s heritage assets, specifically:

• Safeguard Infrastructure - pursue additional heritage protection opportunities

• Economic Development and Business Support - encourage protection and promotion of Revelstoke heritage as it relates to economic development.

However, the Detailed Capital Plan presented to Council on January 18, 2016 does not include financial commitments to honour these objectives.

Page ! 1_____________________________________________________________________________ Registered Associate, Architectural Institute of British Columbia

EILEEN FLETCHER, ARCHITECT (Retired) Box 200, Revelstoke, BC V0E 2S0

Tel: 250-837-7078

Email: efletcher@rctvonline.net

For thirty years Revelstoke invested in protecting and promoting its heritage leading to significant social and economic benefit for the community. Since 2010 there has been a steady erosion of capacity to manage our heritage assets within City Hall and the larger community. This erosion of capacity can be seen in:

• confusion about the extent of our heritage resources • flawed understanding of heritage management tools • diminished engagement with the Heritage Commission and the community • restricted access to information • poor awareness of external revenue sources, including grants • absence of Council direction

To address Council’s objectives for protecting and promoting Revelstoke’s heritage, there must be investment to rebuild the capacity that has been lost. This needs to include allocation of resources for 2016, and direction from Council, to:

• retrieve digital copies of the Heritage Inventory from archives

• reinstate web access to the Heritage Register

• reinstate web access to the Heritage Conservation Area bylaw

• transcribe notes from the Heritage Values Workshop held in March 2013

• comply with requirements to report heritage properties to the Minister responsible for the Heritage Conservation Act

• implement measures to address zoning conflicts in the Heritage Conservation Area

• access educational webinars available through Heritage BC

• hold monthly meetings of the Heritage Commission not quarterly meetings

• hold an information meeting to renew community knowledge of heritage matters

• obtain grant funding to support expansion of the Heritage Register

Page ! 2_____________________________________________________________________________ Registered Associate, Architectural Institute of British Columbia

In 2008, Revelstoke’s Official Community Plan was amended to establish the Revelstoke Station Heritage Conservation Area. The City entered into a social contract with 142 properties, 90% of Revelstoke’s recognized heritage resources, to knowledgeably and effectively manage the heritage values endorsed by residents of the area. Since 2008 the City of Revelstoke has collected additional revenue from properties within the Heritage Conservation Area through Heritage Alteration Permits and increased assessments. As of 2010, disregard for the area’s heritage values has fostered considerable concern that the area has become a revenue generator for the City without commensurate return of services.

The number of heritage assets in Revelstoke and the tools to manage those assets is not large. However, the Financial Plan should include revenue sources, both internal and external, and expense items that acknowledge Council’s commitment to protect and promote Revelstoke’s heritage.

Thank you.

Eileen Fletcher, Architect (Retired) AIBC

Page ! 3_____________________________________________________________________________ Registered Associate, Architectural Institute of British Columbia

Revelstoke Chamber of Commerce 301 W Victoria Road Revelstoke, BC V0E 2S0 250.837.5345 | executive@revelstokechamber.com | www.revelstokechamber.com

City of Revelstoke 2016-2020 Financial Plan Chamber Comment - February 2016

The Revelstoke Chamber of Commerce Board of Directors respectfully submit our comments on the 2016 – 2020 Financial Plan. The chamber continues to voice concern regarding city spending and the disparity between business and residential taxes. The recommendations of the chamber are supported by the 2015 Financial Focus Group Report, 2015 Council Objectives and/or BC Chamber of Commerce 2015 – 2016 Policy and Postions Manual. (1)

Recommendations

1. Start the operating budget process August 1st of each year;

2. Create a 10 year plan for Infrastructure and Asset Management;

3. Provide clear, consistent financial data and statements;

4. Independent Core Review to reduce spending and increase efficiency;

5. Improve the fairness of the business tax burdens.

1. Start the budgeting process August 1st of each year It is understood that the annual revenue budget is not approved until May of the current year due to finalization of the property assessment tax role. However, the operating costs and expense spending may be analyzed throughout the year. When the budget is a consideration of council and staff on a monthly basis it will allow for a better understanding of costs, thoughtful review and community feedback.

2. 10 year plan for Infrastructure and Asset Management The chamber supports a 10 year plan for infrastructure items in the budget that have a longer life cycle. The maintenance and/or replacement may not adequately be captured in a 5 year cycle. Clear, consistent communication of this plan will give the community a better understanding and appreciation of building monetary reserves for the future. This should include the current “Land and Acquisitions Strategy”.

3. Provide Clear Financial Data and Statements It is vital that citizens have access to clear, easy to read, financial information including a simple breakdown of taxation, grant and fee revenues and expenses expressed on a consistent basis over time. This includes providing simple, color coded graphs showing allocation of property taxes, i.e. Provincial, CSRD, Schools & Hospitals and where City tax dollars go, i.e. Water & sewer, Parks & Rec. etc. The city of Nelson’s example provided by the 2015 Financial Focus Group is excellent!

Revelstoke Chamber of Commerce 301 W Victoria Road Revelstoke, BC V0E 2S0 250.837.5345 | executive@revelstokechamber.com | www.revelstokechamber.com

4. Independent Core Review Taking the following public comments and Council objectives into consideration, it is contrary that the first point in the Financial Plan Highlights is: “No proposed changes to service levels. “Weighing the diverse expectations and needs of all residents, businesses, and visitors, the City of Revelstoke will establish service levels for both core and non-core activities and programs that are in harmony with fiscal priorities and limitations.” 2015 Council Objectives “There appears to very limited discussion or direction from council to staff with regards to levels of service. This is a budgetary driver that should be addressed in order to see effective change in the budget.” 2015 Financial Focus Group

“Municipal government expenditures have been increasing at a faster rate than revenues for the past 20 years.” 2016-2020 Financial Plan

A comprehensive, independent core review is crucial for the future financial stability of our community. This is not possible without an unbiased, third party working with staff and council. Council and citizens do not have the expertise or level of knowledge required to make decisions on essential management, maintenance levels or service levels, yet this trend must be changed.

The city of Penticton commissioned a core review in 2010 and the following are comments regarding the investment and process. “A review keeps staff sharper. A review is not to be feared.” “Similar core service reviews are done all the time in the private sector.” The key word in this is “independent”. A neutral third party with no vested interest one way or the other needs to be hired to conduct this. (2) “Critics will argue it will cost between $60,000 and $100,000. But, according to former mayor Dan Ashton, more than $1-million annually came in savings as the direct result of the 2010 Core Services Review. A Core Services Review won’t cost money, it will save money. (3)

Recommendation Allocate appropriate funding for an independent review in 2016 with a clear goal of reduced spending and increased efficiencies in, but not limited to:

Internal policies, processes and contracts i.e. maintenance and staffing of individual facilities;

Services that directly affect the public i.e. Hours of operation and services offered at facilities;

Monthly review of Overtime by department; Confidential review of staffing and salary levels in relation to the current

private and public sector levels.

Revelstoke Chamber of Commerce 301 W Victoria Road Revelstoke, BC V0E 2S0 250.837.5345 | executive@revelstokechamber.com | www.revelstokechamber.com

5. Improve the fairness of the business tax burdens Creating fairness in the property tax system is essential to retaining and attracting business to our community.

In BC Chamber’s current policy of fairer taxation for business, the key recommendations are:

Increase the efficiency of local municipal governments; and Improve the fairness of the business tax burdens.

Municipal governments provide essential services in their community. These are primarily funded through property taxes. Even the most basic analysis shows that businesses pay much higher tax rates than residential taxpayers, while in many cases requiring fewer services. (4) One striking result of analysis of the disparity between business/industrial rates and residential rates is that it becomes significantly greater in municipalities with higher expenses. (5) When compared with other BC municipalities, our community rates within the highest spending and largest tax burden to commercial property owners. (7)

Rationale for Property Tax Alignment Municipalities of similar population size do not necessarily need to differ in spending patterns; should they choose to, the cost should be borne by those with the power to affect them, the voting residents, instead of putting the burden on the business sector. If a higher taxation is necessary it would shift in part from the non-voting businesses and industry to voting residents. (5) It has been stated by city staff throughout the budget process over the last few years that council’s objective is to base property taxation revenue on a 50/50 split between residential and business. As the chamber has stated many times, this approach is simply biased, unrealistic and needs to be abandoned. Chamber staff is currently working with BC Chamber to obtain more details on the model for tax fairness and affordability mentioned in the current policy and will keep our council representatives apprised of the process. Our Policy and Advocacy committee prepared a spread sheet that shows, in a simple format, how the tax contribution by class can be adjusted over the next 5 years to attain an acceptable level of contribution by class. We have also provided graphs showing the current disparity and how a movement towards shifting the burden is possible. Approximately 80%, of our assessment base is residential therefore shifting tax contributions is borne over a larger user group resulting in less contribution per individual. Adopting a fair contribution system, reduced spending and attraction of new construction will contribute to a more productive economy where businesses can thrive and increase employment and service, bringing value to the community at large.

Revelstoke Chamber of Commerce 301 W Victoria Road Revelstoke, BC V0E 2S0 250.837.5345 | executive@revelstokechamber.com | www.revelstokechamber.com

Recommendation Council adopt a new model for calculating fair and equitable tax contributions of residential vs business in all classes and that the 2016-2020 Financial Plan be adjusted to achieve a 2:1 Class 6 business to residential ratio by 2020.

The proposed 2016 assessment value of residential properties is $965,018,180 and has drafted the tax contribution be $4,646,268. All Business classes total $273,460,352, a mere 22% of the Revelstoke assessed value and the tax contribution is slated at $5,603,430 - 54.6%.

Assessment Value - Current Residential

Small Business

Major Industry

Light Industry

Utility

Tax Contribution - Current

Residential

Small Business

Major Industry

Light Industry

Utility

Tax paid per $100K - Current

Residential $481

Small Business $1,851

Heavy Industry $3,730

Light Industry $3,519

Utility $5,127

Revelstoke Chamber of Commerce 301 W Victoria Road Revelstoke, BC V0E 2S0 250.837.5345 | executive@revelstokechamber.com | www.revelstokechamber.com

Each year a small adjustment to the ratio needs to be implemented so that

steps are taken to achieve contribution fairness.

Tax Contribution - 3:5 Ratio

Residential

Small Business

Heavy Industry

Light Industry

Utility

Tax paid per $100K - 3.5 Ratio

Residential $502

Small Business $1,752

Heavy Industry $3,500

Light Industry $3,300

Utility $5,128

Revelstoke Chamber of Commerce 301 W Victoria Road Revelstoke, BC V0E 2S0 250.837.5345 | executive@revelstokechamber.com | www.revelstokechamber.com

References

Known to have been in operation as early as March 1867, the Chamber was re-established in 1951 to:

develop a true cross section of opinions of the British Columbia business community, and effectively present these opinions to government;

build a diverse, competitive and sustainable economy that provides opportunity for all who invest, work and live in British Columbia; and

create and nurture an effective membership organization that provides value and purpose to its members. The Chamber's policy statements are submitted or presented to the Provincial and Federal Governments and are individually called to the attention of the Cabinet ministers responsible in order to make it possible for pending government legislation and regulations to reflect the opinion of our chamber members. BC Chamber of Commerce Policy and Positions Manualhttp://www.bcchamber.org/sites/default/files/2015-2016%20-%20Policy%20and%20Positions%20Manual.pdf

2. Time for another Core Service Review – Penticton Herald http://www.pentictonherald.ca/opinion/article_69de9510-4906-11e4-817e-001a4bcf6878.html 3. Local Leadership vs Local Leviathan, C2C Journal June 19,2013 http://www.c2cjournal.ca/2013/06/local-leadership-versus-local-leviathan/ 4. BC Municipal Property Tax Policy – Fairer Taxation for Business (2014) http://www.bcchamber.org/policies/bc-municipal-property-tax-policy-fairer-taxation-business-2014-0

5. Consolidated Management Consultants (2014) in Policy Direction for BC Municipal Property Tax

6 CFIB BC Municipal Spending Watch 2015 http://lantzville411.ca/wp-content/uploads/2015/11/BC-Municipal-Spending-Watch-2015.pdf

7. Creating Equity in the Property Tax System of BC http://www.bcchamber.org/policies/creating-equity-property-tax-system-british-columbia

REVELSTOKE ECONOMIC DEVELOPMENT COMMISSION

DATE: February 18, 2016

SUBJECT: Comments from the Economic Development Commission on the City

Financial Plan

BACKGROUND:

The Economic Development Commission (EDC) discussed the brief provided by the

Chamber of Commerce related to the City of Revelstoke 2016-2020 Financial Plan at

their meeting on February 17, 2015.

The EDC passed a motion in support of the first three issues identified by the Chamber of

Commerce, i.e.

1. That the City of Revelstoke commence the budget process by August 1 in each

calendar year for the following year;

2. That the City of Revelstoke create a 10 year plan for Infrastructure and Asset

management;

3. That the City of Revelstoke provide clear financial data and statements.

The EDC also supported “in principle”, the 4th

issue, that the City of Revelstoke consider

an independent core review of their operations. The EDC members wanted to see more

details provided on how this review might take place and what the cost would be.

The EDC indicated they would like to see more information related to the 5th

issue

identified in the Chamber report, which was related to the fairness of the tax burden.

Respectfully submitted,

Alan Mason, Director of Community Economic Development.