STAFF REPORT: 2019-2023 FINANCIAL PLAN APPROVAL

TOWN OF VIEW ROYAL COUNCIL REPORT

TO: Council
FROM: Dawn Christenson, Director of Finance
DATE: March 13, 2019
MEETING DATE: March 19, 2019

2019-2023 FINANCIAL PLAN APPROVAL

RECOMMENDATION:

THAT the 2019-2023 Financial Plan be approved as amended, in principle, and further that the 2019-2023 Five-year Financial Plan bylaw be prepared for consideration at the next Council meeting.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:

I concur with the recommendation.

PURPOSE OF REPORT:

To provide Council with a revised five-year financial plan for approval in principle.

BACKGROUND DISCUSSION:

The draft 2019-2023 Financial Plan was reviewed by Council at a series of budget meetings on February 19-21 and 26, 2019. At these sessions, Council considered the 2019 core operating budget, proposed non-core and capital items, ongoing costs of capital projects and reserve transfers. Council provided direction to staff regarding specific changes to the financial plan as outlined in Schedules A and B (attached). The plan also incorporates late information received from the City of Langford regarding shared costs for policing services that had minimal impact on the required level of taxation.

The 2019-2023 Financial Plan includes a 3.5% or $295,000 tax increase for 2019, assuming approximately $246,000 in additional tax revenue will be available from new construction. Schedule C (attached) provides details of the 2019 taxation requirement. Any further changes to the financial plan funded by taxation will change the percentage tax increase. Estimates of future years’ taxation will be adjusted when the financial plan is reviewed again next year.

The changes made during the budget deliberations are incorporated into the revised financial plan documents now available on View Royal’s website and available at the front counter at Town Hall. This information will be presented to attendees at the public open house held from 5 pm to 7 pm on March 19, 2019.

Prior to approving the financial plan in principle, Council may direct further changes to the plan. Specifically, the following were identified as potential changes at the March 12, 2019 Committee of the Whole (COW) meeting. These will, if approved, alter the Financial Plan. These items include:

a.) increase to grant in aid account to $108,470 to be funded from Casino revenue account;
b.) addition of user-activated crossing signal on Atkins Road to be funded by the developer (the required $20,000 for the project has already been collected); and
c.) addition of $132,825 (including overtime and training cost estimates) for one RCMP constable in 2019 to be funded by taxation.

These changes would be incorporated into the financial plan bylaw before it is returned to Council for consideration.

The Community Charter requires that local governments adopt a five-year financial plan prior to May 15 of each year. The financial plan may be amended by bylaw at any time. The tax rates bylaw must also be adopted prior to May 15, but must be preceded by the adoption of the five-year financial plan bylaw.

The 2019-2023 Financial Planning Calendar outlines a schedule that satisfies the legislated deadlines and includes the following future meetings:

• Approval of grants-in-aid: March 19, 2019
• Consideration of five-year financial plan bylaw: April 2 and April 16, 2019
• Consideration of tax rates options: April 9, 2019
• Consideration of tax rates bylaw: April 16 and May 7, 2019

Information about the financial plan, taxes and user fees will be included with the tax notice mail out planned for early May 2019.

The revised 2019-2023 Financial Plan is available as a downloadable portable document format (pdf) through a link on the main page of View Royal’s website and in print on request. Council members are encouraged to return their budget book binders for recycling and refreshing with the updated financial plan.

RECOMMENDATION:

THAT the 2019-2023 Financial Plan be approved as amended, in principle, and further that the 2019-2023 Five-year Financial Plan bylaw be prepared for consideration at the next Council meeting.

SUBMITTED BY:
Dawn Christenson, Director of Finance

REVIEWED BY:
K. Anema, Chief Administrative Officer