FINANCIAL POLICIES REVIEW
A review of the financial policies that guide the development of the annual five-year financial plan to ensure accountability and transparency.
TOWN OF VIEW ROYAL FINANCE AND ADMINISTRATION REPORT
TO: Committee of the Whole DATE: November 6, 2023 FROM: D. Christenson, Dir. of Finance & Technology MEETING: November 14, 2023
FINANCIAL POLICIES REVIEW
RECOMMENDATION:
THAT the report titled “Financial Policies Review” dated November 6, 2023, by the Director of Finance & Technology be received for information.
ACTING CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To review the financial policies that guide the development of the annual five-year financial plan.
TIME CRITICAL:
A review of financial policies is one of the foundational steps in the financial planning process as these policies influence and guide subsequent choices made throughout the budget development process. As such, early review in the financial planning process is helpful in ensuring the resulting plan aligns with Council’s intentions.
BACKGROUND DISCUSSION:
Financial policies ensure proper fiscal accountability and stewardship over the Town’s funds. They ensure the financial plan is consistent with Council’s goals and objectives. To the extent that policies, principles, and practices are documented, they foster a mutual understanding of the process while increasing transparency.
Over time, Council has considered and approved several financial policies that guide the development of the financial plan, subsequent decisions, and annual financial outcomes. Where there are no stated policies, staff rely on past practice or Council direction.
The following table describes the source and purpose of policies that are key to the financial planning process and the date they were last updated. Where available, each approved policy document is hyperlinked to its location on the Town’s website for reference.
| Key Topic | Policy or Source | Description | Purpose | Last Update |
|---|---|---|---|---|
| Financial Assistance | 1600-012 | Grants in Aid | To provide financial assistance to non-profit or community organizations that provide a public benefit | 2012 |
| 1600-018 | Permissive Tax Exemptions | 2012 | ||
| Expenditures | 1600-019 | Tangible Capital Assets | To identify specifics for the accounting of capital assets, including definitions, thresholds, and amortization parameters | 2012 |
| n/a | Asset Management Planning | To identify parameters for the development, maintenance, and implementation of asset management plans, such as methodologies, strategies, and acceptable levels of service and risk | In progress | |
| Practice | Budget Variance Reporting | To specify guidelines for periodic financial reporting, such as frequency, report organization, level of detail, and comparative information | ||
| n/a | Debt | To specify acceptable maximums or targets for total debt burden and debt service costs | ||
| Revenues | 1600-020 | Reserves and Surplus | To guide the development, maintenance, and use of financial reserve funds | 2021 |
| Practice | Revenue | To guide the management of revenue, including diversification targets, basis for fees and charges, investments, and use of one-time or unpredictable revenues | ||
| Council Direction | Taxation | To identify long-term property taxation strategies, including targets for assessment class multiples | annual | |
| Process | Practice | Financial Planning Process | To guide the development, maintenance, and implementation of financial plans, including basis of budgeting, definitions of core and non-core items, and opportunities for public consultation |
DISCUSSION:
Council may direct staff to research or investigate any new policies or policy revisions. Where possible, in-house staff may complete this work, to the extent capacity and expertise exists. Alternatively, consultants may be engaged to assist with specific policy development initiatives.
BUDGET IMPLICATIONS:
Staff refer to financial policies, Council direction, and past policies when making choices in developing the five-year financial plan. Written policies provide clarity and are more transparent to the public. Council should identity which, if any, policies or practices they wish to further review.
RECOMMENDATION:
THAT the report titled “Financial Policies Review” by the Director of Finance & Technology be received for information.
SUBMITTED BY: D. Christenson, Director of Finance
REVIEWED BY: S. Jones, Acting Chief Administrative Officer
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