Presentation
Presentation - 2020-2024 Financial Plan Approval
April 14, 2020Pages 221–23111 sections
A detailed presentation deck covering the 2020 budget starting points, tax relief measures, and funding options.
Published March 13, 2020Representative residential property tax increase: $40-50$3.5 million general fund accumulated surplusCasino revenue projected at $0.5 million for 2020
2020-2024 Financial Plan
Published March 13, 2020
Page 221–231
Starting point
- February budget work resulted in municipal tax revenue increase of 5.5%:
- 2.6% from new construction
- 2.9% overall increase
- Representative residential property tax increase $40-50
Page 221–231
Addition since February budget workshops
- Addition of land acquisition (Little Road) funded by DCCs $750,000 (no tax implications) (requires an amendment to current financial plan approval)
Page 221–231
2020/2021 Tax increase components
| 2020 $ | 2020 % | 2021 $ | 2021 % | |
|---|---|---|---|---|
| Non-core projects (labour-related) | 139,815 | 1.5 | 189,444 | 2.1 |
| Reserve contributions | 306,790 | 3.5 | -116,000 | -1.3 |
| Operations | 41,403 | 0.5 | 311,564 | 3.4 |
| Total increase | 488,008 | 5.5 | 385,008 | 4.2 |
| Non-market change (estimate) | 229,000 | 2.6 | 100,000 | 1.1 |
| Tax increase required | 259,008 | 2.9 | 285,008 | 3.1 |
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Property tax relief measures in place
Residential property taxes
- Deferral of CRD sewer charge delayed until October with sewer utility billing (~$260 for representative home)
- Provincial property tax deferral program
- 55 or older
- Widow/widower
- Person with disabilities
- Families with children
- Payment through mortgage holder and pre-payment plan (spread throughout year)
Light industry and business/other class property taxes
- 50% reduction in Provincial school tax rates
Page 221–231
Property tax relief further options
Reduce 2020 tax increase to 0%
Pros: Representative home pays $40 - $50 less than in 2019
Cons:
- Commercial class still pays more than in 2019 (assessments shifted to residential)
- Doubling up of increase in 2021 ($90 more for representative home)
- Disconnect between perceived 0% and actual experience when assessments are higher: 0% isn’t always 0%
Page 221–231
Property tax relief further options
Defer due date to one or more dates between July 2 and December 31, and/or reduce or eliminate property tax penalties
- Provincial jurisdiction under default tax collection scheme
- View Royal may establish alternative tax collection scheme by bylaw (time constraint)
- May increase related revenue anticipation borrowing costs
Page 221–231
Tax notice – Representative Home
| 2019 | PLAN A 2020 2.9% | PLAN B 2020 0% | 2021 Estimated 3% IF 2020 PLAN A | 2021 Estimated 3% IF 2020 PLAN B | |
|---|---|---|---|---|---|
| General municipal | 1,648 | 1,690 | 1,600 | 1,760 | 1,760 |
| CRD sewer tax | 263 | 0 | 0 | 0 | 0 |
| School (SD 61) | 872 | 880 | 880 | 880 | 880 |
| CRD | 166 | 167 | 167 | 167 | 167 |
| BC Transit, BC Assessment, Regional Hospital District, MFA | 309 | 312 | 312 | 312 | 312 |
| Total taxes | 3,258 | 3,049 | 2,959 | 3,119 | 3,119 |
| Garbage user fee | 187 | 189 | 189 | 191 | 191 |
| Total taxes and user fees | 3,445 | 3,238 | 3,148 | 3,310 | 3,310 |
| Change | -207 | -297 | +72 | +162 |
- 2019 Average residential assessment $727,000
- 2020 Average residential assessment $733,000
- 2021 Assumed average residential assessment $733,000
- 2020 and 2021 rates for non-municipal taxes assumed to remain at 2019 levels
- 2021 Non-market change revenue assumed at ~$100,000
- 2021 Assessments assumed at 2020 levels plus NMC
Page 221–231
Tax reduction funding options
Projected balances at end of 2020 with no changes to services or projects
Replace tax increase with alternative funding source(s):
- Accumulated surplus (general fund): $3.5 million
- Casino revenue (assuming minimal 2020 revenue): $0.5 million
- Future expenditures reserve: $0.9 million
Page 221–231
Tax reduction funding options
Replace tax increase by eliminating/deferring tax-funded projects and services
- Non-core initiatives (mostly labour costs): $139,815
- Reserve contributions: $306,790
- Core services: $41,403
Page 221–231
Recommendation
- No change to planned increase for municipal taxes in 2020
- Proceed with financial plan approval in principal and bylaw preparation for consideration April 21
- No change to multiples (tax burden to classes)
- Increase communications regarding deferral of property taxes
Page 221–231
Extracted from: 2020 04 14 Special Council Agenda - Agenda - Pdf