Reserve Balances Update Presented to the Council Committee of the Whole - April 10, 2019

Operating expenses funded from reserves The following operating expenses are budgeted to be funded from reserves in 2019: Deferred Operating Reserve Part-time staff in building inspection staff 75,000 Sewer Modeling 108,320 Office equipment carried over from 2018 11,500 Training carried over from 2018 5,000 199,820

Operating expenses funded from reserves SCIF Reserve Senior Planning Table 20,000 Downtown Wi-Fi 6,775 26,775 Development Fees Reserve Planning consultants 45,000 Bylaw 430 review carried over from 2018 78,975 123,975

Operating expenses funded from reserves Community Forest Dividend Reserve Community Investment Program 25,890 Gas Tax Reserve Sewer Modeling carried over from 2018 127,887 Liquid Waste Management Plan carried over from 2018 48,187 Liquid Waste Management Plan new for 2019 80,000 256,074

Operating Surplus Reserve Balances Opening Balance 2019 Expenses Ending Balance SCIF Reserve 75,861 (26,775) 49,086 Community Forest Dividend Reserve 116,519 (25,890) 90,629 Reserve for Committed Expenditures 199,820 (199,820) - Development Fee Equalization Reserve 403,689 (123,975) 279,714 Public Art Acquisition Reserve 2,250 Rockwood Improvement Reserve 3,800 Provision for Assessment Adjustment 11,180 Provision for By-Election 12,288 Building Reserve 14,020 GIS Operating Reserve 26,277 Downtown Revitalization Reserve 59,264 Community Building Reserve 59,494 PW Operation & Maint Reserve 60,000 Community Crime Programming Reserve 186,035 1,230,497 (376,460) 854,037

Other Non-statutory Reserves Opening Balance 2019 Expenses Ending Balance Public Safety Reserve 869,490 (368,400) 501,090 RCMP Reception Area - $68,382 RCMP Roof - $200,000 Marine Way Retaining Wall - $100,018 Wharf Reserve 87,178 Affordable Housing Reserve 63,750 CARIP Reserve 57,260 Solid Waste Reserve 204,162

Gas Tax Reserve UBCM just announced new funding amounts plus a bonus payment for 2019. Opening Balance Contribution Expenses Ending Balance 2019 418,678 931,313 (690,031) 659,960 2020 485,148 (645,500) 499,608 2021 496,225 (532,000) 463,833 2022 507,303 (553,750) 417,386 2023 518,430 (541,250) 394,566

Capital Funded from Taxes The original cost of the District’s tangible capital assets is $210 million The accumulated depreciation on the assets is $62 million The net book value of the assets is $148 Million The annual depreciation is $3.7 million

Capital Funded from Taxes Goal is to tax enough to cover the cost of depreciation. $3.7 million = 40% of our current taxes Strategy to increase taxes 3% each year until goal reached. 2019 is the third year of the strategy 2019 taxes for capital = $712,745

Capital Funded from Taxes Funds collected are used to repair, refurbish or replace our capital assets Unspent funds are reserved Although actual spending may fluctuate significantly each year, the amount paid by the tax payers remains constant.

Capital Funded from Taxes Based on a 3% increase each year and the current capital plan the balance in the capital reserve will be: Opening Balance Contribution Expenses Ending Balance 2019 662,553 712,745 (1,044,845) 330,453 2020 968,117 (790,700) 507,870 2021 1,223,489 (755,276) 976,083 2022 1,478,861 (1,613,920) 841,024 2023 1,734,233 (1,290,384) 1,284,873