2023-2027 FINANCIAL PLAN (Staff Report)

2023-2027 FINANCIAL PLAN

RECOMMENDATION:

THAT the report dated April 19, 2023, from the Director of Finance titled “2023-2027 Financial Plan” be received.

PURPOSE:

To consider the 2023-2027 Financial Plan bylaw.

TIME CRITICAL:

Provincial legislation requires Council to adopt a balanced five-year financial plan bylaw in advance of the annual tax rates bylaw, which must be adopted before May 15 each year.

EXECUTIVE SUMMARY:

On April 11, 2023, the Committee of the Whole recommended approval of the proposed 2023-2027 Financial Plan with amendments that increased funding for the building inspection service and policing and authorized a transfer to the new Growing Communities Fund reserve. Subsequently, at its April 18, 2023, meeting, Council advanced the policing municipal employee start date to January 1, 2024, from April 1, 2024.

Bylaw No. 1113 (attached), being the 2023-2027 Financial Plan Bylaw, implements the financial plan as approved in principle by Council.

The financial plan bylaw and related budget documents will be available to the public on View Royal’s website and at the front counter. Additionally, after adoption, a certified copy of the bylaw will be submitted to the Local Government Finance department of the Ministry of Municipal Affairs prior to the May 15, 2023, deadline.

BACKGROUND:

On April 18, 2023, Council approved in principle the 2023-2027 Financial Plan as proposed, with the following amendments:

DISCUSSION:

Bylaw No. 1113 (attached), being the 2023-2027 Financial Plan Bylaw, implements the financial plan approved by Council.

The 2023-2027 Financial Plan Bylaw (No. 1113) presents the consolidated five-year financial plan in four schedules, described as follows:

• Schedule A Consolidated Financial Plan describes the revenue, expense, resulting operational annual surplus or deficit, capital expenditures, reserves, surplus, debt and total financial plan surplus or deficit. Provincial legislation requires the financial plan to be balanced: the total of all expenditures and transfers to other funds must not exceed the total funding sources and transfers from other funds in any year of the plan. Bylaw 1113 indicates a balanced budget with a zero-dollar financial plan surplus (deficit) at the bottom of Schedule A.
• Schedule B Consolidated Capital Plan details the sources of revenue and expenditures for capital activities for the five-year plan.
• Schedule C Consolidated Reserves Plan identifies the transfers from and to reserves for each fund and the net transfers for each year of the five-year plan.
• Schedule D Financial Plan Objectives and Policies describes the objectives and policies relating to financial plan funding sources, property value taxes, and permissive tax exemptions for the five-year plan.

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

The recommendation in this report has no significant direct impact to View Royal’s sustainability or climate change.

FINANCIAL IMPLICATIONS:

There are no additional financial implications other than those described in other sections of this report.

ALTERNATIVES:

Delaying adoption of the five-year financial plan may create the need for additional Council meetings to meet statutory deadlines.

CONCLUSION:

The Community Charter requires that local governments adopt a five-year financial plan prior to adoption of the tax rates bylaw, which is required on or before May 15 each year. The financial plan may be amended by bylaw at any time. Bylaw 1113, being the 2023-2027 Financial Plan Bylaw, implements the financial plan approved by Council and meets the requirements of the Community Charter.

ATTACHMENTS:

Financial Plan Bylaw No. 1113, 2023