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Slide 2 2013 BUDGET General Fund Revenues$84,870,998 Expenditures Divisional 69,635,424 Non-Divisional 5,695,509 Transfers 9,540,065 84,870,998 $ Nil * Capital$14,788,522 *Per the Community Charter, a Municipality cannot budget for a deficit Slide 3 2013 BUDGET Budgets by Fund General$ 99,659,520 Water 11,110,700 Sewer 11,493,100 Solid Waste 4,194,300 Cemetery 973,811 Golf 1,248,200 Transit 14,583,471 Lands Stewardship 3,345,000 $146,608,102 Slide 4 DISTRICT of WEST VANCOUVER Fund Structure West Vancouvers financial framework is organized around several high-level functional units, called Funds. Each Fund is a stand-alone business entity that engages in specific service activities, and has its own particular revenues, expenditures, reserves and capital program. Each Fund also has its own particular approach to budgeting and rate setting. Slide 5 FUND STRUCTURE Slide 6 2013 AVERAGES West Vancouver Average Assessed Home Value $2,144,137 Municipal Taxes$3,620 Utilities Water 474 Sewer 585 Solid Waste 275 $4,954 Slide 7 2013 AVERAGE ASSESSED HOME VALUES Coquitlam$702,105 Delta$608,208 Maple Ridge$459,075 New Westminster$695,743 North Vancouver City$891,975 North Vancouver District$1,016,520 Pitt Meadows$450,410 Port Moody$760,622 West Vancouver$2,144,377 Slide 8 2013 RESIDENTIAL TAX RATES Coquitlam3.056% Delta3.315% Maple Ridge4.283% New Westminster3.548% North Vancouver City2.449% North Vancouver District2.369% Pitt Meadows3.906% Port Moody3.401% West Vancouver1.688% Slide 9 *2013 TOTAL TAXES AND UTILITIES Coquitlam$4,193 Delta$4,195 Maple Ridge$5120 New Westminster$4,693 North Vancouver City$3,472 North Vancouver District$3,782 Pitt Meadows$4,937 Port Moody$4,414 West Vancouver$3,022 *Based on a $1,000,000 Assessed Value Slide 10 2013 TOTAL TAXES & UTILITIES Residential Taxes as a Proportion of Total Property Tax Revenue Coquitlam62% Delta54% Maple Ridge78% New Westminster60% North Vancouver City55% North Vancouver District72% Port Moody68% West Vancouver93% Slide 11 PROPERTY TAXES How do we calculate? Changes to the effective tax rate? What is the Mill Rate? BC Assessment Authority Impact of other taxing authorities Slide 12 PROPERTY TAXES About BC Assessment Conduct property assessments on an annual basis for all property owners in the province. Structure BC Assessment operates as an independent, provincial Crown corporation, governed by a Board of Directors and is accountable to the Government of BC. The President and CEO of BC Assessment is supported by an Executive Committee. The Board is appointed by the Lieutenant-Governor in Council. BC Assessment's head office is located in Victoria. 15 area offices are situated in 10 regions in various geographic locations throughout British Columbia. Slide 13 PROPERTY TAXES Assessed Value x Mill Rate The Mill Rate is adjusted annually to eliminate the effect of changes to the average assessed value. The only circumstance whereby a residents change to property taxes, year over year, equals the change approved by Council is where the residents change in assessed value equals the average change in assessed values for the District. District collects on behalf of other taxing authorities but retains none of this revenue. Slide 14 PROPERTY TAXES 1% tax rate increase = $555,000 of Revenue to the District or $29.58 for the average household Slide 15 2014 BUDGET PROCESS August 2013 Labour Model Updated September 2013 Requests for FTEs October 2013 Divisional WorkPlans Facilities Systems Renewal Divisional Operating Budgets Divisional Capital Budgets November 2013 Public Consultation Review by Council December 2013 Adoption of Bylaw 2014 - 2018 Five Year Financial Plan Bylaw Slide 16 DWV BUDGET PROCESS The 2014 Budget process will be an open and transparent process. The budget submission to Council will provide a comprehensive overview of the Budget. The budget schedule will allow for the adoption of the 2014 to 2018 Five Year Financial Plan in December 2013. While staff do believe this is the best course of action, the proposed schedule does provide some challenges. Most notably, BC Assessment Authority does not provide the final roll (i.e. the final list of assessed property values used to calculate property tax revenue) until sometime in January 2014. As in 2013, the Community Strategic Plan and Council Priorities will once again drive the budget process. Slide 17 DWV BUDGET PROCESS The Five Priorities of Council In addition to providing highly-valued programs and services in a fiscally sustainable manner, Mayor and Council determined five significant priorities for the District to focus on through 2014.These priorities include: The Public Safety Building Ambleside and Waterfront Development Housing and Neighbourhood Character Municipal Services and Finances Environment, Parks and Upper Lands These five priorities are in complete alignment with the Community Strategic Plan which was developed by the District in collaboration with residents. It provides the framework that drives the Districts operations, strategic initiatives and provides the context for financial planning and budgets. Slide 18 DWV BUDGET PROCESS The overall guiding principles for the budget process remain unchanged. These principles include the need for a: Safe community; Healthy community; Financially strong community; Sustainable community; and Continuing commitment to deliver exceptional services. As in prior years, the District will engage in a priority based budget process. This process will involve: the identification of resources and priorities in terms of high value results to the community; the precise definition of priorities; an evaluation of services, function and programs against priorities; and the allocation of resources based on this evaluation. Slide 19 DWV BUDGET PROCESS Facilities Maintenance and Renewal In late 2012, a facilities inventory and assessment was completed on 48 District owned facilities. For 2014, staff will be recommending a long-term funding strategy. This funding strategy may be one of the following: a single parcel tax levy, an effective property tax rate increase, the Endowment Fund, or some other method determined by public consultation. These funds will be used solely for the purpose of funding facilities systems and maintenance renewal. Slide 20 DWV BUDGET PROCESS Utilities Water, Sewer and Solid Waste For 2014, utility rates will once again be presented in conjunction with the budget submission. Within the Water and Sewer Utilities, projected timing and costs of future infrastructure replacements have been integrated into long term operating and funding models. The proposed rate increases for Water and Sewer are expected to be in keeping with previously projected funding models. Slide 21 2014 BUDGET Factors Affecting the 2014 Budget: Global Economy New Construction 2013 Budget Inflation Multi Material BC Slide 22 2014 BUDGET Next Steps Public Consultation Online Public Consultation Staff Consultation Review by Council Adoption of Bylaw