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Budget Meeting February 3, 2014

At the Public Budget Council Meeting today Council approved the first draft of the budget.

Of particular interest is the following: “To keep tax rates stable and affordable
– Residential tax rate proposed at $5.16 (no change from 2010)
– Commercial, major and light industrial tax rates set at $16.75, down $.50
from $17.25.”

There are several opportunities for the public to provide feedback. The full schedule of meetings are here

The following is a brief summary of the staff report Council received. 

DATE: January 24, 2014 REPORT NO.: 14-021

Chief Financial Officer
FILE NO.: 3-1-3
SUBJECT: 2014 Draft 1 Budget Report
To provide Council with Draft 1 of the 2014 Financial Plan for review and proposed
Presenting this draft of the 2014 Financial Plan is the second step in developing the
Financial Plan Bylaw for 2014 following Council’s adoption of the Budget timeline and
assumptions in October of 2013. The package includes a narrative summary of the Plan
with additional appendices highlighting the details of the backup information that make
up the amounts in the Plan. The first draft focuses on setting the 2014 tax rates. Taxation combined with Fair Share funds and other revenues provide the necessary funding for current service provision, capital upgrades and future replacement of equipment and unforeseen contingencies. The underlying principles used in preparing the Plan are the
same as in previous years, more specifically that tax rates remain stable and affordable,
and that they be maintained at a level that ensures service provision is carried out
effectively in the short and long term.

In order to ensure long term sustainability, annual revenues and expenditures are looked at in the context of historical trends and future requirements. The process is very integrated in that changes in one component often affect all the other components. Short term decisions often affect long term results Reviewing them concurrently provides improved balance and long term sustainability. It is staff’s intention to bring these components together in this Draft Financial Plan so that Council’s goals and objectives for the community are met.

The main recommendations in the 2014 Draft Plan are as follows:
1) To complete work that Council has identified as important, arising from
previous decisions such as:
 Securing Provincial and Federal Funding
• Fair Share renegotiation
• Federal Funding for the Sewer Trunk-line
 Increased Use of Fair Share Funding for Capital Upgrades
(Fair Share estimate $12,398,041 – actual yet to be determined)
• Capital allocation $ 6,166,500 (49.7%) vs $ $1,085,000 in 2013 (9.2%)
• Operating allocation $ 6,231,541 (51.3%) vs $10,722,658 in 2013
 Continued Public Consultation
• Water Security Phase 2
• Snowplowing and Removal Policy Review
 Fiscal Gap Workplan
• Preparation of presentation material
• Public consultation on Fiscal Gap
 Completing Major Capital Projects
• Calvin Kruk Arts Centre
• Sewer Trunk-line
• Loran Water Reservoir
2) To keep tax rates stable and affordable
 Residential tax rate proposed at $5.16 (no change from 2010)
 Commercial, major and light industrial tax rates set at $16.75, down $.50
from $17.25
3) No new services in 2014
 Operating expenditures estimated at $35.1M (2.33% increase)
4) To address capital infrastructure upgrades in a timely manner
 Capital plan of $ 24.8M (carry forward spending of $10.9M and new spending of $13.9M)
 New debt $5.8M – $2.8M for road and sidewalk upgrades and an additional
$3M for the sewer trunk line upgrade. Carry forward debt of $8.5M for
unfinished roadwork, the Loran water reservoir and the sewer trunkline
(original estimate).
5) To maintain sufficient surplus to ensure long term sustainability and flexibility
 Ending Surplus $18.9M ($775K Operating Funds, $1.9M Appropriated
Operating Funds, $14.1M Capital Funds and $1.4M in Statutory and
Trust Reserves)