Bylaw No. 4017 for 2017 2021 Financial Plan
THE CORPORATION OF THE CITY OF PORT COQUITLAM BYLAW NO. 4017 A Bylaw to adopt the 2017 to 2021 Financial Plan
Whereas the Community Charter, Section 165, directs that a Five Year Financial Plan shall be adopted annually, by bylaw, before the annual property tax bylaw is adopted; And whereas the said Annual Financial Plan for the years 2017 to 2021 is appended hereto as Schedule “A” to this Bylaw; Now therefore the Municipal Council of The Corporation of the City of Port Coquitlam, in open meeting assembled, enacts as follows: 1.
This Bylaw may be cited for all purposes as the "2017 to 2021 Financial Plan Bylaw, 2017, No. 4017".
2.
Schedule "A" attached to and forming part of this Bylaw is the 2017 to 2021 Financial Plan Bylaw.
3.
Schedule “B” forming part of this Bylaw is transfers to and expenditures from the City Reserve and Surplus Funds.
4.
Schedule “C” forming part of this Bylaw is the objectives and policies for revenues, property tax distribution and permissive exemptions.
___________________
_______________________
Mayor
Corporate Officer
4017 1
Schedule A - 2017 to 2021 Financial Plan Bylaw Amendment, 2017, No. 4017 2017 Budget Revenues Taxation and other levies Utility charges Sale of services Contributions Permits and licences Investment income Penalties and fines Other Revenues Total Revenues Expenditures City Operating Expenditures External Debt Interest Expense Amortization Total Operating Expenses Net (Revenue) Expenditure
2019 Budget
2020 Budget
2021 Budget
(64,542,200) $ (68,111,600) (70,342,500) (72,665,600) (74,255,500) (22,063,400) (22,733,700) (23,568,400) (24,405,500) (25,283,700) (5,021,600) (5,021,600) (5,021,600) (5,021,600) (4,895,600) (11,211,800) (9,610,450) (3,355,450) (3,355,450) (3,355,450) (1,848,900) (1,848,900) (1,848,900) (1,848,900) (1,848,900) (1,740,000) (1,740,000) (1,740,000) (1,740,000) (1,740,000) (398,400) (398,400) (398,400) (398,400) (398,400) (747,800) (747,800) (747,800) (747,800) (747,800) $ (107,574,100) $ (110,212,450) $ (107,023,050) $ (110,183,250) $ (112,525,350)
$
$
$
79,589,000 $ 1,032,500 13,000,000 93,621,500 $
81,173,000 $ 1,272,500 13,000,000 95,445,500 $
82,131,300 $ 1,539,500 13,000,000 96,670,800 $
84,127,700 $ 85,983,000 1,812,500 2,982,500 13,000,000 13,000,000 98,940,200 $ 101,965,500
$ (13,952,600) $ (14,766,950) $ (10,352,250) $ (11,243,050) $ (10,559,850)
Allocations Net Transfers to (from) Reserves $ Capital Expenditures Capital Contributed by Developers Unfunded Amortization Cash from External Borrowing External Debt Principle Repayment Total Allocations $ Financial Plan Balance
2018 Budget
$
(44,947,300) $ 70,454,100 1,000,000 (13,000,000) 445,800 13,952,600 $ -
(18,766,350) $ 61,087,500 1,000,000 (13,000,000) (16,000,000) 445,800 14,766,950 $
$
-
4017 2
$
(14,719,550) $ 54,426,000 1,000,000 (13,000,000) (17,800,000) 445,800 10,352,250 $ -
$
(4,228,750) $ 45,226,000 1,000,000 (13,000,000) (18,200,000) 445,800 11,243,050 $ -
$
(1,504,950) 22,526,000 1,000,000 (13,000,000) 1,538,800 10,559,850 -
Schedule B - 2017 to 2021 Financial Plan Bylaw, 2017, No. 4017 Transfers from (to) Reserves 2017 Budget
Transfers from Reserve Funds Land Sale Long Term General Infrastructure General Capital Roads & Drainage Water Infrastructure Community Recreation Complex Building Maintenance Public Works Special Capital Sewer Infrastructure Vehicles & Equipment Parking Information Systems RCMP Roads (MRN) Cart Replacement Parks & Recreation Public Safety Building Arts & Culture Cemetery Environmental & Solid Waste Federal Gas Tax Election
Allocated Accumulated Surplus - General Allocated Accumulated Surplus - Water Allocated Accumulated Surplus - Sewer Total Transfers from Reserves
2018 Budget
2019 Budget
2020 Budget
2021 Budget
$
14,332,013 $ 6,000,000 $ 8,000,000 $ 4,000,000 $ 2,000,000 11,900,000 2,263,000 6,635,080 17,125,910 19,073,105 15,325,910 15,325,910 6,440,656 4,435,617 2,252,640 2,252,640 2,252,640 2,252,640 4,150,000 9,353,500 4,352,805 2,500,000 2,625,387 2,300,000 1,589,688 809,100 809,100 809,100 809,100 1,541,078 1,505,000 1,505,000 1,505,000 1,505,000 1,016,000 16,000 16,000 16,000 16,000 823,510 60,000 60,000 60,000 60,000 500,000 500,000 500,000 500,000 500,000 498,719 480,608 436,655 224,883 61,500 73,400 36,800 61,657 19,280 1,096,500 100,000 3,468,936 107,000 77,000 77,000 185,000 30,000 129,931 15,000 $ 63,868,100 $ 39,068,950 $ 36,645,650 $ 27,045,650 $ 24,731,650
Transfers to Reserve Funds General Capital Community Recreation Complex Water Infrastructure Sewer Infrastructure Vehicle & Equipment Roads (MRN) Federal Gas Tax Land Sale Water Rate Stabilization Sewer Tax Stabilization Parking Long Term General Infrastructure Long Term Water Infrastructure Long Term Sewer Infrastructure Total Transfers to Reserve Funds
$
(8,810,700) $ (9,432,000) $ (9,263,500) $ (9,263,500) $ (9,263,500) (3,606,800) (4,228,100) (4,886,050) (4,886,050) (4,373,550) (2,889,600) (3,002,400) (2,968,700) (2,968,700) (2,968,700) (1,362,700) (1,444,500) (1,417,300) (1,417,300) (1,417,300) (1,256,700) (1,201,300) (1,306,900) (1,306,900) (1,306,900) (404,000) (404,000) (404,000) (404,000) (404,000) (213,800) (213,800) (213,800) (213,800) (213,800) (142,600) (142,600) (142,600) (142,600) (142,600) (81,500) (81,500) (81,500) (81,500) (81,500) (80,000) (80,000) (80,000) (80,000) (80,000) (72,400) (72,400) (72,400) (72,400) (72,400) (826,450) (1,507,150) (2,211,050) (149,700) (269,200) (392,200) (113,200) (203,800) (299,200) $ (18,920,800) $ (20,302,600) $ (21,926,100) $ (22,816,900) $ (23,226,700)
Total Transfers from (to) Reserve Funds
$ 44,947,300
$ 18,766,350
4017 3
$ 14,719,550
$
4,228,750
$
1,504,950
Schedule C - 2017 to 2021 Financial Plan Bylaw, 2017, No. 4017
Revenues, Property Taxes and Exemptions In accordance with Section 165(3.1) of the Community Charter, The City of Port Coquitlam is required to include in the Five Year Financial Plan Bylaw, objectives and policies regarding each of the following: -
The proportion of total revenue that comes from each of the funding sources described in Section 165(7) of the Community Charter; The distribution of property taxes among the property classes; and The use of permissive tax exemptions.
Sources of Revenue Funding Source 165(7) Property Value Taxes Parcel Tax Fees
Other Sources
Details Property Taxes Parcel Tax Utility Levies Sale of Services Permits and Licenses Contributions Investment Income Penalties and Fines Other Revenue
% of Total 2017 Revenue 60.1% 0.5% 20.7% 4.7% 1.7% 9.6% 1.6% 0.4% 0.7%
Objective Over the next five years, the City will continue to seek new revenue sources to reduce the burden on property taxes. Policies The City’s Financial Management Policy (7.16.02) states: The City will review fees/charges, at a minimum on a biennial basis, to ensure that they keep pace with changes in the cost-of-living, as well as, changes in the methods or levels of service delivery. The City will encourage the use of alternate revenue sources instead of property taxes. General Revenues will not be dedicated for specific purposes, unless required by law or the Generally Accepted Accounting Principles (GAAP). User fees will be set to recover the full cost of services except where Council determines that a subsidy is in the general public interest.
4017 4
Distribution of Property Tax Rates In establishing property tax rates Council will take into consideration: Property taxes levied per capita as compared with other BC municipalities; Tax levies on a representative home compared with other Metro Vancouver municipalities; Tax share borne by each property class historically, and Taxes generated from new development; and Tax ratios of each property classification along with tax ratios of other municipalities within the Metro Vancouver; and Tax rate competitiveness compared to the neighboring cities of Port Moody and Coquitlam.
The City receives the Revised Assessment Roll for 2017 in April and sets the property tax rates based on the assessment before May 15, 2017. The 2017 distribution of property tax rates amongst all the property classifications is determined at that time. Below is the distribution for 2017: Property Class Residential Utilities Light Industrial Business and Other Recreation/Non-profit Farmland
% of General Property Taxation 58.30% 0.74% 10.34% 30.42% 0.17% 0.03%
Objective The desired result is property taxes that are stable and predictable as well as fair in comparison to others within Metro Vancouver. Policies City tax rates (Policy 7.01) will be set to maintain each property classification’s tax share, adjusted for property tax growth from new development in the classification, unless Council determines that adjustments are necessary to maintain the City’s tax competitiveness within Metro Vancouver or to attain other Council objectives.
4017 5
Permissive Tax Exemptions The City has an existing permissive tax exemption policy (7.02.03) which guides the administration and approval of permissive tax exemptions. Some of the eligibility criteria for permissive tax exemptions that are outlined in the policy include the following:
Not-for-profit occupiers of City property for the duration of their occupancy. Land and improvements surrounding a statutorily exempt building for public worship. Land and improvements surrounding a statutorily exempt building owned by an incorporated institution of learning (private school) that is equivalent to that given in a public school. Full or partial property tax exemption for properties that are to be awarded a grant under an existing City grant program and would qualify for property tax exemption under the Community Charter. Property tax exemption would be provided instead of a cash grant to the organization.
Objective The purpose of this policy is to: Optimize the provision of charitable and not for profit services for the benefit of Port Coquitlam residents. Provide property tax exemptions as permitted under the Community Charter in a consistent and fair manner. Restrict provision of exemption to those providing an extension to city services Reduce impact on city revenues
Policies Port Coquitlam residents must be primary beneficiaries of the organization’s services. The services provided on the property must be accessible to the public. Council may provide a partial exemption. The intent of this guideline is to ensure Port Coquitlam residents will generally benefit from the municipal support provided, and will not be restricted from accessing the services of the organization.
4017 6
Whereas the Community Charter, Section 165, directs that a Five Year Financial Plan shall be adopted annually, by bylaw, before the annual property tax bylaw is adopted; And whereas the said Annual Financial Plan for the years 2017 to 2021 is appended hereto as Schedule “A” to this Bylaw; Now therefore the Municipal Council of The Corporation of the City of Port Coquitlam, in open meeting assembled, enacts as follows: 1.
This Bylaw may be cited for all purposes as the "2017 to 2021 Financial Plan Bylaw, 2017, No. 4017".
2.
Schedule "A" attached to and forming part of this Bylaw is the 2017 to 2021 Financial Plan Bylaw.
3.
Schedule “B” forming part of this Bylaw is transfers to and expenditures from the City Reserve and Surplus Funds.
4.
Schedule “C” forming part of this Bylaw is the objectives and policies for revenues, property tax distribution and permissive exemptions.
___________________
_______________________
Mayor
Corporate Officer
4017 1
Schedule A - 2017 to 2021 Financial Plan Bylaw Amendment, 2017, No. 4017 2017 Budget Revenues Taxation and other levies Utility charges Sale of services Contributions Permits and licences Investment income Penalties and fines Other Revenues Total Revenues Expenditures City Operating Expenditures External Debt Interest Expense Amortization Total Operating Expenses Net (Revenue) Expenditure
2019 Budget
2020 Budget
2021 Budget
(64,542,200) $ (68,111,600) (70,342,500) (72,665,600) (74,255,500) (22,063,400) (22,733,700) (23,568,400) (24,405,500) (25,283,700) (5,021,600) (5,021,600) (5,021,600) (5,021,600) (4,895,600) (11,211,800) (9,610,450) (3,355,450) (3,355,450) (3,355,450) (1,848,900) (1,848,900) (1,848,900) (1,848,900) (1,848,900) (1,740,000) (1,740,000) (1,740,000) (1,740,000) (1,740,000) (398,400) (398,400) (398,400) (398,400) (398,400) (747,800) (747,800) (747,800) (747,800) (747,800) $ (107,574,100) $ (110,212,450) $ (107,023,050) $ (110,183,250) $ (112,525,350)
$
$
$
79,589,000 $ 1,032,500 13,000,000 93,621,500 $
81,173,000 $ 1,272,500 13,000,000 95,445,500 $
82,131,300 $ 1,539,500 13,000,000 96,670,800 $
84,127,700 $ 85,983,000 1,812,500 2,982,500 13,000,000 13,000,000 98,940,200 $ 101,965,500
$ (13,952,600) $ (14,766,950) $ (10,352,250) $ (11,243,050) $ (10,559,850)
Allocations Net Transfers to (from) Reserves $ Capital Expenditures Capital Contributed by Developers Unfunded Amortization Cash from External Borrowing External Debt Principle Repayment Total Allocations $ Financial Plan Balance
2018 Budget
$
(44,947,300) $ 70,454,100 1,000,000 (13,000,000) 445,800 13,952,600 $ -
(18,766,350) $ 61,087,500 1,000,000 (13,000,000) (16,000,000) 445,800 14,766,950 $
$
-
4017 2
$
(14,719,550) $ 54,426,000 1,000,000 (13,000,000) (17,800,000) 445,800 10,352,250 $ -
$
(4,228,750) $ 45,226,000 1,000,000 (13,000,000) (18,200,000) 445,800 11,243,050 $ -
$
(1,504,950) 22,526,000 1,000,000 (13,000,000) 1,538,800 10,559,850 -
Schedule B - 2017 to 2021 Financial Plan Bylaw, 2017, No. 4017 Transfers from (to) Reserves 2017 Budget
Transfers from Reserve Funds Land Sale Long Term General Infrastructure General Capital Roads & Drainage Water Infrastructure Community Recreation Complex Building Maintenance Public Works Special Capital Sewer Infrastructure Vehicles & Equipment Parking Information Systems RCMP Roads (MRN) Cart Replacement Parks & Recreation Public Safety Building Arts & Culture Cemetery Environmental & Solid Waste Federal Gas Tax Election
Allocated Accumulated Surplus - General Allocated Accumulated Surplus - Water Allocated Accumulated Surplus - Sewer Total Transfers from Reserves
2018 Budget
2019 Budget
2020 Budget
2021 Budget
$
14,332,013 $ 6,000,000 $ 8,000,000 $ 4,000,000 $ 2,000,000 11,900,000 2,263,000 6,635,080 17,125,910 19,073,105 15,325,910 15,325,910 6,440,656 4,435,617 2,252,640 2,252,640 2,252,640 2,252,640 4,150,000 9,353,500 4,352,805 2,500,000 2,625,387 2,300,000 1,589,688 809,100 809,100 809,100 809,100 1,541,078 1,505,000 1,505,000 1,505,000 1,505,000 1,016,000 16,000 16,000 16,000 16,000 823,510 60,000 60,000 60,000 60,000 500,000 500,000 500,000 500,000 500,000 498,719 480,608 436,655 224,883 61,500 73,400 36,800 61,657 19,280 1,096,500 100,000 3,468,936 107,000 77,000 77,000 185,000 30,000 129,931 15,000 $ 63,868,100 $ 39,068,950 $ 36,645,650 $ 27,045,650 $ 24,731,650
Transfers to Reserve Funds General Capital Community Recreation Complex Water Infrastructure Sewer Infrastructure Vehicle & Equipment Roads (MRN) Federal Gas Tax Land Sale Water Rate Stabilization Sewer Tax Stabilization Parking Long Term General Infrastructure Long Term Water Infrastructure Long Term Sewer Infrastructure Total Transfers to Reserve Funds
$
(8,810,700) $ (9,432,000) $ (9,263,500) $ (9,263,500) $ (9,263,500) (3,606,800) (4,228,100) (4,886,050) (4,886,050) (4,373,550) (2,889,600) (3,002,400) (2,968,700) (2,968,700) (2,968,700) (1,362,700) (1,444,500) (1,417,300) (1,417,300) (1,417,300) (1,256,700) (1,201,300) (1,306,900) (1,306,900) (1,306,900) (404,000) (404,000) (404,000) (404,000) (404,000) (213,800) (213,800) (213,800) (213,800) (213,800) (142,600) (142,600) (142,600) (142,600) (142,600) (81,500) (81,500) (81,500) (81,500) (81,500) (80,000) (80,000) (80,000) (80,000) (80,000) (72,400) (72,400) (72,400) (72,400) (72,400) (826,450) (1,507,150) (2,211,050) (149,700) (269,200) (392,200) (113,200) (203,800) (299,200) $ (18,920,800) $ (20,302,600) $ (21,926,100) $ (22,816,900) $ (23,226,700)
Total Transfers from (to) Reserve Funds
$ 44,947,300
$ 18,766,350
4017 3
$ 14,719,550
$
4,228,750
$
1,504,950
Schedule C - 2017 to 2021 Financial Plan Bylaw, 2017, No. 4017
Revenues, Property Taxes and Exemptions In accordance with Section 165(3.1) of the Community Charter, The City of Port Coquitlam is required to include in the Five Year Financial Plan Bylaw, objectives and policies regarding each of the following: -
The proportion of total revenue that comes from each of the funding sources described in Section 165(7) of the Community Charter; The distribution of property taxes among the property classes; and The use of permissive tax exemptions.
Sources of Revenue Funding Source 165(7) Property Value Taxes Parcel Tax Fees
Other Sources
Details Property Taxes Parcel Tax Utility Levies Sale of Services Permits and Licenses Contributions Investment Income Penalties and Fines Other Revenue
% of Total 2017 Revenue 60.1% 0.5% 20.7% 4.7% 1.7% 9.6% 1.6% 0.4% 0.7%
Objective Over the next five years, the City will continue to seek new revenue sources to reduce the burden on property taxes. Policies The City’s Financial Management Policy (7.16.02) states: The City will review fees/charges, at a minimum on a biennial basis, to ensure that they keep pace with changes in the cost-of-living, as well as, changes in the methods or levels of service delivery. The City will encourage the use of alternate revenue sources instead of property taxes. General Revenues will not be dedicated for specific purposes, unless required by law or the Generally Accepted Accounting Principles (GAAP). User fees will be set to recover the full cost of services except where Council determines that a subsidy is in the general public interest.
4017 4
Distribution of Property Tax Rates In establishing property tax rates Council will take into consideration: Property taxes levied per capita as compared with other BC municipalities; Tax levies on a representative home compared with other Metro Vancouver municipalities; Tax share borne by each property class historically, and Taxes generated from new development; and Tax ratios of each property classification along with tax ratios of other municipalities within the Metro Vancouver; and Tax rate competitiveness compared to the neighboring cities of Port Moody and Coquitlam.
The City receives the Revised Assessment Roll for 2017 in April and sets the property tax rates based on the assessment before May 15, 2017. The 2017 distribution of property tax rates amongst all the property classifications is determined at that time. Below is the distribution for 2017: Property Class Residential Utilities Light Industrial Business and Other Recreation/Non-profit Farmland
% of General Property Taxation 58.30% 0.74% 10.34% 30.42% 0.17% 0.03%
Objective The desired result is property taxes that are stable and predictable as well as fair in comparison to others within Metro Vancouver. Policies City tax rates (Policy 7.01) will be set to maintain each property classification’s tax share, adjusted for property tax growth from new development in the classification, unless Council determines that adjustments are necessary to maintain the City’s tax competitiveness within Metro Vancouver or to attain other Council objectives.
4017 5
Permissive Tax Exemptions The City has an existing permissive tax exemption policy (7.02.03) which guides the administration and approval of permissive tax exemptions. Some of the eligibility criteria for permissive tax exemptions that are outlined in the policy include the following:
Not-for-profit occupiers of City property for the duration of their occupancy. Land and improvements surrounding a statutorily exempt building for public worship. Land and improvements surrounding a statutorily exempt building owned by an incorporated institution of learning (private school) that is equivalent to that given in a public school. Full or partial property tax exemption for properties that are to be awarded a grant under an existing City grant program and would qualify for property tax exemption under the Community Charter. Property tax exemption would be provided instead of a cash grant to the organization.
Objective The purpose of this policy is to: Optimize the provision of charitable and not for profit services for the benefit of Port Coquitlam residents. Provide property tax exemptions as permitted under the Community Charter in a consistent and fair manner. Restrict provision of exemption to those providing an extension to city services Reduce impact on city revenues
Policies Port Coquitlam residents must be primary beneficiaries of the organization’s services. The services provided on the property must be accessible to the public. Council may provide a partial exemption. The intent of this guideline is to ensure Port Coquitlam residents will generally benefit from the municipal support provided, and will not be restricted from accessing the services of the organization.
4017 6
