2013 Municipal Budget

1. 2013 Municipal Budget Financial Plan Public Hearing February 19, 2013

2. Overview • Council’s Priorities • Quality of life • Controlled growth • Efficiency • Sustainability • Prudent financial management

3. Format • Revenue • Operating Expenses • Major Initiatives – Capital Budget • Utility • Reserves and Debt • Summary • Questions

5. Revenue - Assessment • Assessment largely residential • 2 ½% residential growth in 2012 • Reassessment each 2 years makes long-term comparisons impossible • 2012 total assessment $71.420 million • 2013 “ “ $72.878 “ • Year-over-year growth 2.0% • Growth = inflation

6. Revenue – Taxes Average annual increase 1.5%

7. Revenue – Other Income • Varies depending on revenue from province, grants, etc. • Bump in 2013 due to expected growth

8. Revenue - Total • Expected Revenue in 2013: • General Taxes $851,300 • Local Improvement Taxes (Utility) 137,800 • Other Revenue 323,900 • Transfer from Reserves 218,100 • Total $1,531,100* *2012 Actual $1,655,000. The major difference is in transfer of McCaughan sub-division roads, valued at $190,000.

9. Operating Expenses • Overall Historical Expenses (less Utility) • Increase related to increased operating spending • Expenses exactly match revenue - $1,531,100 2008 – 2011 actual expenditures; 2012 estimated; 2013 budget

10. Operating Expenses – General Government • Involves office costs and expenses relating to whole of government, such as the cost of tax assessment • Non-capital spending • Powersmart lighting upgrade • Repair foundation

11. Operating Expenses – Protective Services • Fire protection, emergency measures, 9-1-1 response • 2011 spike due to flood, reimbursement in 2012 reducing numbers • No major changes

12. Operating Expenses – Transportation • Public works: roads, drainage work, gravel, dust control, snow, grass, street lighting • Share operator with Environmental Health • No real reduction change after applying provincial accounting rules to cash budget

13. Operating Expenses – Environment • Nuisance grounds, recycling, sewage lagoon • Share operator with Transportation • New pit, $10,000 • Wastewater Management Plan $5,000

14. Operating Expenses – Public Health and Welfare • Fee paid to Province to cover welfare costs

15. Operating Expenses – Economic Development • Building inspection, planning, zoning • 2012 drop due to using temporary building inspector for much of year

16. Operating Expenses – Environmental Development • Pest control, weed control, drainage costs • Increases reflect increased work on drainage (non-flood related), and internal accounting move of drainage accounts

17. Operating Expenses – Recreation, Culture • Grants to organizations, parks and playgrounds • SFX CC Assessment, $6,000 • SFX CC grant for washroom improvements, $8,000 • Increased grants, $4,000

18. Operating Expenses - Debt • Debt includes general (e.g., fire trucks) and utility (e.g., water west) • Debt analyzed further on in presentation • No new or retired debt

19. 2012 Surplus • Large surplus in 2012 before transfer to reserves – everything broke our way • Taxes added $32,000 • Fire Department highway calls $16,000 • SFX Trailer Park use of lagoon $16,000 • 2011 census led to grant increase $8,000 • Capital levies $56,000 • Transfer of Stanley Cove roads $190,000 • Expenditures generally under budget

20. Operating Expenses – Contribution to Reserves • Reserves used to pay for capital projects • Reserve contributions are treated as an operating expense • Reserves based on a 20-year capital plan

21. Capital Program - 1 • IT Upgrades, office $ 1,300 • Fire Department Turnout Gear 3,800 • Fire Department Tanker Replace. 10,000 • Fire Department Wildfire Truck 18,000 • Road network, Landfill 21,000 • Lagoon expansion License 5,000 • Trailer, shed, Landfill 23,000 • Fencing, Landfill 10,000

22. Capital Program - 2 • Repair crawler/loader 25,000 • Skateboard point 60,000 • New furniture, Council 10,000 • Sustainability – trail network 10,000 • TOTAL CAPITAL $197,100

23. Utility - 1 • Charges unchanged since 2008 • Surplus less each year as costs increase • Rate review to be finalized in 2013 • 2012: hot weather = high consumption • 2012: assume assets, $315,000

24. Utility - 2 • Utility Capital • 1 x fire hydrants 17,000 • Software upgrades 1,300 • Radio frequency water meters 21,000 • TOTAL $,39,300 • Utility Reserves • As at end 2011 $351,000 • Sufficient for major emergencies • Clean water lines in 2013

25. Reserves Accumulation • Based on 20-year capital plan • Aim to cover most of major capital items with cash, not borrowing • Chart shows end-of-year balance • Spike due to major residential development

26. Debt • 2008 Fire truck, $172,000 • At large • 2009 Water west, $243,000 • Specific properties • Chart shows end of year balances expected

27. Summary • No tax increase • Costs rise each year and residential growth is necessary to prevent tax increases in future • Most capital dedicated to sustainability – roads, environment, quality of life • Debt load currently moderate, decreasing quickly • Utility in deficit soon without rate review

28. Questions?