MINUTES OF A SPECIAL COMMITTEE OF THE WHOLE BUDGET MEETING HELD ON WEDNESDAY, FEBRUARY 22, 2023

TOWN OF VIEW ROYAL MINUTES OF A SPECIAL COMMITTEE OF THE WHOLE BUDGET MEETING

HELD ON WEDNESDAY, FEBRUARY 22, 2023 VIEW ROYAL MUNICIPAL OFFICE – COUNCIL CHAMBERS

PRESENT WERE: Mayor Tobias Councillor Brown Councillor Lemon Councillor MacKenzie Councillor Mattson Councillor Rogers

REGRETS: Councillor Kowalewich

PRESENT ALSO: K. Anema, Chief Administrative Officer S. Jones, Director of Corporate Administration D. Christenson, Director of Finance P. Hurst, Director of Protective Services L. Taylor, Director of Development Services I. Leung, Director of Engineering J. Cochrane, Executive Assistant 5 members of the public 0 members of the press

1. CALL TO ORDER

Mayor Tobias called the meeting to order at 7:04 p.m.

The Mayor acknowledged that this meeting is being held on the traditional territory of the Songhees Nation and the Esquimalt Nation.

2. APPROVAL OF AGENDA

MOVED BY: Councillor Brown SECONDED: Councillor Lemon

THAT the agenda be approved as presented. CARRIED

3. PUBLIC PARTICIPATION PERIOD

4. REPORTS

a) 2022-2026 Five Year Financial Plan Deliberations

1. Summary from February 21, 2023 meeting

The Director of Finance opened the meeting by providing of summary of changes made to the draft budget to date and implications for taxpayers.

2. Continued 2022-2026 Financial Plan Deliberations

It was noted that the focus of the meeting would be to consider items that impact taxation to facilitate the preparation of information required for public engagement. The Director of Finance described various tax increase scenarios and how much each scenario would represent for the average home though noted the impact would differ given the variation in the average assessment increase between single family dwellings and strata dwellings.

Committee members discussed the percentage increase for the municipal tax portion they would be comfortable supporting.

With respect to non-core items designated to be funded from property taxation, the Committee reviewed page 29 of the budget document and agreed to:

remove the Digital signature certificate service project (N-059) from the 2023-2027 Financial Plan (total $21,600);
change the funding source for the Wildfire fuel management project (N-078) to be from Casino reserve instead of taxation as it is now a single year project at this time (and will be reviewed again in the 2024 budget deliberations); and
remove the Internet failover service project (N-100) from the 2023-2027 Financial Plan (total $114,350).

The Committee discussed Schedule 4 Projected Reserve Balances as outlined on pages 43 and 44 of the budget document and agreed to:

eliminate all property tax funded contribution increases to the reserve funds proposed for 2023, totaling $148,000, and
to make no contributions to the Public Art Acquisition Reserve for 2024 to 2027 inclusive in the 2023-2027 Financial Plan, totaling $252,200.

The Committee discussed options around eliminating the draw from accumulated surplus which totals $283,833.

The Committee discussed the operating budget item of Council conference attendance.

MOVED BY: Councillor SECONDED: Councillor

COW-13-23 THAT the Committee recommend to Council that the Legislative – Conferences account (1-2-01100-260) for 2023 be reduced to $5,000 to facilitate the Mayor’s attendance at the Union of BC Municipalities annual conference in September. CARRIED Councillors Lemon and MacKenzie opposed

The Committee agreed to move the parks and trails map update project (C-20-23) to 2024 from 2025 (total $5,000).

The Committee agreed to proceed with the Information Technology Coordinator position (N-104) as proposed.

The Committee recessed at 8:16 p.m.

The Committee reconvened at 8:23 p.m.

The Committee discussed reserves again and noted that the 2024 Public art program (N-102) is supported pending grant funding instead of reserve funding.

The Director of Finance advised that, to avoid a 10% tax increase in 2025, Council could choose to contribute to the Police Operating Reserve in advance to phase in the increase for debt service costs relating to the West Shore RCMP detachment expansion (C-137). A 2% tax increase per year for five years would achieve a smoothing effect to the tax increase.

The Chief Administrative Officer encouraged the Committee to reduce the draw on accumulated surplus as the 2024 tax impact is already substantial.

The Committee discussed options to reduce costs, the setting of service levels, and the operating budget.

MOVED BY: Councillor Brown SECONDED: Councillor Rogers

THAT the Committee recommend to Council that $100,000 be contributed in 2023 to the Police Operating Reserve to facilitate the smoothing of the debt service costs relating to the West Shore RCMP detachment expansion (C-137);

AND THAT the draw from accumulated surplus be reduced to $50,000, resulting in a municipal property tax increase of 10.96% DEFEATED Mayor Tobias and Councillors Lemon and MacKenzie opposed

MOVED BY: Mayor Tobias SECONDED: Councillor Brown

COW-14-23 THAT the Committee recommend to Council that $100,000 be contributed in 2023 to the Police Operating Reserve to facilitate the smoothing of the debt service costs relating to the West Shore RCMP detachment expansion (C-137). CARRIED

MOVED BY: Councillor Rogers SECONDED: Councillor Lemon

COW-15-23 THAT the Committee recommend to Council that the draw from accumulated surplus be reduced in 2023 to $150,000, resulting in a municipal property tax increase of 9.97%. CARRIED Councillor Mattson opposed

The Committee and the Director of Finance discussed the grant-in-aid account and next steps, including public engagement through the online Citizen Budget tool. It was noted that this engagement will not result in statistically significant indicators as it is not restrictive as to participants. There will be opportunities to amend the budget up until the bylaw is adopted and afterwards through a bylaw amendment.

5. QUESTION PERIOD

6. TERMINATION

MOVED BY: Councillor Rogers SECONDED: Councillor Brown

THAT this meeting terminate. Time: 9:34 p.m. CARRIED

MAYOR

CORPORATE OFFICER