1. City of Port Moody 2013 - 2017 DRAFT Financial Plan Tuesday, April 23 rd, 2013

2. 2 City 5 Year Financial Plan Budget Process  Budget Guidelines – Approved by Finance Committee – June 05, 2012  Budgets drafted by Departments – June/July/August, 2012  Budget Reviews with Financial Services Division – Late August, 2012  Executive Leadership Team Review – September, 2012  Council Deliberations – October to April, 2012/13  Public Input (Town Hall Meeting) – January 31, 2013  Public Input (Website) – December to April, 2012/2013  Adoption of Bylaws – Prior to May 15, 2013 April 23, 2013 :First three readings of Financial Plan Bylaw & Tax Rate Bylaw May 14, 2013 :Adoption of Financial Plan Bylaw & Tax Rate Bylaw prepared by Financial Services Department

3. 3 Financial Plan Drivers Inflationary Issues  Inflationary Factors Fuel - $24,000 Utilities - (heat, light) - $59,000  Provincial Port Competitiveness Grant - Class 4 Province capped tax rate at $27.50 per $1,000 of assessed value Provincial grant provided to port cities to soften financial impact Grant is indexed to the CPI 2013 grant increased to $572,000 ($564,000 in 2012) Tax revenue if the rate was not capped would be $874,000 Class 4 taxpayers subsidize the difference of $302,000 (1.06% tax impact) prepared by Financial Services Department

4. 4 Financial Plan Drivers Labour Costs (includes utilities) The increases include new positions, positions being annualized, benefits, performance increases, reclassifications, contractual increases.  2013$692,000  2014$837,000  2015$818,000  2016$971,000  2017$721,000 CUPE Local 825 - Contract settled to December 31, 2015 Firefighters Union Local 2399 - Contract expired December 31, 2009; negotiations underway Police Services Union District 43 - Contract expired December 31, 2012 prepared by Financial Services Department

5. 5 Financial Plan Drivers 2013 Resource Comparison (includes utilities) 5 prepared by Financial Services Department

6. 6 Financial Plan Drivers Insurance Markets  Liability Premium increase of $27,000 Higher claims management costs - $15,000  Property Premiums similar to 2012 – up $9,000 Increased premium for additional assets  Vehicle Premiums similar to 2012 – down $4,000 Fleet Discount 60% (57% in 2012; maximum 63%) prepared by Financial Services Department

7. 7 Financial Plan Drivers Fire Hall #1 Debt  $16,000,000 borrowing approved by the public in April, 2011 referendum  Project budget revised by Council to $11 Million  Council approved using $2 Million of reserves  Annual debt payment (30 year term) 2012 - $6 Million $323,000 or 1.18% 2013 - $3 Million $143,500 or 0.50% Total - $9 Million $466,500 or 1.68% prepared by Financial Services Department

8. 8 Projected prepared by Financial Services Department Financial Plan Drivers Fire Hall #1 Debt

9. 9 Based on debt borrowing of $6 Million in 2012 and $3 Million in 2013. Based on population topping out at 38,000 in 2021. prepared by Financial Services Department

10. 10 Financial Plan Drivers New Revenues – Taxation from Growth ) Growth (new construction estimate) Taxation from new growth used to offset costs related to growth  2007$1,320,0006.93%  2008$690,0003.17%  2009$1,107,0004.82%  2010$350,0001.43%  2011$18,8000.07%  2012$67,6000.24%  2013$14,8000.05%  2014$467,1001.58%  2015$75,0000.25%  2016$81,6000.25%  2017$84,8000.25% prepared by Financial Services Department

11. 11 Financial Plan Drivers Asset Renewal  City has approximately $644 Million in assets Depreciating, or using up, approximately $6.3 Million annually  Traditional Capital Asset Funding Land Sales – not a sustainable source of revenue Development – builds but does not replace  Asset Renewal Levy 2009 – 2.00% $460,000 2010 – 0.68% $171,000 2011 – 0.32% $ 84,000 2012 – 0.50% $137,000 2013 – 1.00% $285,500 Proposed 2014 – 1.00% $295,000 Proposed 2015 – 1.00% $305,000 Proposed 2016 – 1.00% $315,000 Proposed 2017 – 1.00% $325,000 Proposed

12. 12 Financial Plan Drivers Non Property Tax Revenues - 1% Utility Tax Tax paid to municipalities by utility companies to use ROWs to place infrastructure (pipes, poles, fiber optic cables, wires, etc.) Tax is 1% of gross sales within the City from two years previous (e.g. 2013 tax based on 2011 gross sales within Port Moody) prepared by Financial Services Department

13. 13 prepared by Financial Services Department Financial Plan Drivers Non Property Tax Revenues - Generating Capacity Grant  Provincial Order in Council Requires BC Hydro to pay cities hosting hydro generating facilities an annual grant  2007: Order in Council Revised Amount increased from $503,000 to $876,000 based on annual index  Grant History: YearAmountIncrease 2006$ 503,000 2007$ 876,000$ 373,000 2008$ 930,000$ 54,000 2009$ 1,003,000$ 73,000 2010$ 1,072,000$ 69,000 2011$ 1,126,000$ 54,000 2012$ 1,173,000$ 47,000 2013$ 1,235,000$ 62,000 2014$ 1,266,000$ 31,000 2015$ 1,298,000$ 32,000 2016$ 1,330,000$ 32,000 2017$ 1,363,000$ 33,000 prepared by Financial Services Department

14. 14 Financial Plan Drivers CPR Lease – Public Safety Building  $52,800 - Annual Lease Payments  $9,200 - Property Taxes  $35,000 – Maintenance Recovery Revenues Leveraged from City Assets prepared by Financial Services Department

15. 15 Financial Plan Drivers Revenues Leveraged from City Assets Inlet Centre Residences – 96 Units ($1.3M lease payments over a 60 year lease)  $  $90,000 in annual lease payments and investment earnings  Ongoing property tax ($39,000) & utilities ($68,000) prepared by Financial Services Department

16. 16 Financial Plan Drivers Boathouse Restaurant (30 Year Agreement to 2036)  Land Lease increases to $60,000 in 2018  City shares 3.5% in revenues above $3 Million  Utility amounts estimated – based on metered usage for water and sewer Revenues Leveraged from City Assets prepared by Financial Services Department

17. 17 Financial Plan Drivers Limited Revenue Opportunities (Community Charter) prepared by Financial Services Department

18. 18 Major Capital Projects 2013  Asset Management & Strategic Financial Plans$235,000  Parks & Recreation Master Plan$45,000  Open Data Initiative$40,000  Municipal Services Reviews$40,000  Centennial Celebration$105,000  Replace Rocky Point Sidewalks$127,000  Recreation Centre Improvements$382,500  Westhill Pool Improvements$220,000  Ioco Road Safety Improvements (Construction Phase 3 & Design Phase 4) $330,000  Moody Street Overpass – Sidewalk Widening ($350,000 Grant) $750,000  Moody Street Overpass – Seismic Upgrade$500,000  Appleyard /Centennial House Relocation & Finishing ($300,000 Grant) $600,000  Transportation Improvements (Traffic Calming, Signage & Bus Stops) $163,000  Vehicle Replacements$420,000  Storm & Sanitary Sewer System Upgrades (Various Locations) $1,533,640  Water System Upgrades (Various Locations) $1,810,000 prepared by Financial Services Department

19. 19 Major Capital Projects 2014 - 2017  2014 - Replace Float (East Pier at RP Park) $100,000  2014 - Road, Sidewalk & Bus Stop Improvements$265,000  2014 - Storm & Sanitary Sewer System Upgrades (Various Locations) $1,090,000  2014 - Water System Upgrades (Various Locations) $1,485,000  2015 - Replace North Shore Artificial Field & Track$1,270,000  2015 - Replace Kyle Centre Roof & Siding$ 375,000  2015 - Ioco Road Safety Improvements$190,000  2015 - Parkside Traffic Calming$196,000  2015 - Storm & Sanitary Sewer System Upgrades (Various Locations) $1,100,000  2015 - Water Quality & Main Upgrades (Various Locations) $900,000  2016 - Replace Shoreline Bike Path $1,013,000  2016 - Replace Garbage & Recycling Trucks (4 Trucks) $1,233,000  2016 - Ioco Road Safety Improvements $190,000  2016 - Storm & Sanitary Sewer System Upgrades (Various Locations) $1,040,000  2016 - Water System Upgrades (Various Locations) $1,270,000  2017 – Road Upgrades (Sidewalks, Signals, Calming, Controls) $580,500  2017 - Ioco Road Safety Improvements $190,000  2017 - Storm & Sanitary Sewer System Upgrades (Various Locations) $210,000  2017 - Water System Upgrades (Various Locations ) $105,000 prepared by Financial Services Department

20. 20 Impact of Property Charges Major Drivers for Proposed 2013 Tax Increase ( excluding utilities) 2013 Budget Annual Cost per Average Household Tax Percentage Increase Revenues$ -367,300$ -22-1.29% Tax Revenue from Growth-14,800-0.05% Reserve Changes327,600201.15% Asset Levy285,500171.00% Salary & Wage Adjustments730,000442.56% Training36,00020.13% Fire Hall #1 Debt ($3 Million) 143,50080.50% Invasive Plant Mgmt Legislation55,20030.19% Contracted Services117,30070.41% Fleet (Reduction in fleet) -26,700-2-0.09% Utilities (Heat, Light, Telephone) 48,00030.17% Removal of Position Vacancy109,00070.38% Other (Number of small items) 81,915 50.28% Totals$ 1,525,215$ 915.34% prepared by Financial Services Department

21. 21 What’s Included? Major Drivers for 2014 - 2017 Tax Increase (excluding utilities)  2014 (tax revenue required ~ $737,000) New Construction Tax Revenues (1.58% growth) 467,100 Asset Renewal Levy (1.0%)285,500 Labour Impact (cost of living, step increases, reclassifications)665,000 Police Services – 2 new FT position – Recruit Constable 152,000  2015 (tax revenue required ~ $762,000) New Construction Tax Revenues (0.25% growth) 75,000 Asset Renewal Levy (1.0%)295,000 Labour Impact (cost of living, step increases, reclassifications) 641,000 Police Services – 2 new FT positions – Recruit Constables 156,800  2016 (tax revenue required ~ $788,000) New Construction Tax Revenues (0.25% growth) 81,600 Asset Renewal Levy (1.0%)305,000 Labour Impact (cost of living, step increases, reclassifications) 871,000 Police Services – 1 new FT positions – Recruit Constables 80,000  2017 (tax revenue required ~ $811,000) New Construction Tax Revenues (0.25% growth) 84,800 Asset Renewal Levy (1.0%)315,000 Labour Impact (cost of living, step increases, reclassifications) 701,000 prepared by Financial Services Department

22. 22 Impact of Property Charges Average $547,500 Household Impact ($) 2012 Budget 2013 Budget $ Variance $ Per House Administration$ 846,266$ 865,160$ 18,894$ 1.15 Legislative Services896,471923,51827,0471.60 Human Resources884,262894,94810,6860.60 Corporate Services2,001,5942,013,07711,4830.70 Community Services5,586,1645,860,750274,58616.50 Development Services2,594,2252,595,0678420.05 Fire Services6,283,4206,260,530-22,890-1.40 Library Services1,462,1461,465,4753,3290.20 Police Services8,708,1789,204,176495,99829.60 Fiscal Services94,592799,832 705,240 42.00 Totals$ 29,357,318$ 30,882,533$ 1,525,215$ 91.00 prepared by Financial Services Department

23. 23 Financial Plan Drivers Taxed Services (excluding utilities) prepared by Financial Services Department

24. 24 Impact of Property Charges $547,500 Average Assessed Household * 2013 Budget 2014 Budget 2015 Budget 2016 Budget 2017 Budget General Government (incl. Police)3.84%1.50% Asset Renewal Levy1.00% Fire Hall #1 Debt Levy0.50%0.00% Total Tax Increase5.34%2.50% * Average value based on April, 2013 BC Assessment revised Assessment Roll ** Approximately $17 for every 1% increase (e.g. 5.34% x $17 ~ $91) prepared by Financial Services Department

25. 25 Impact of Property Charges $547,500 Average Assessed Household * 2013 Budget 2014 Budget 2015 Budget 2016 Budget 2017 Budget General Government (incl. Police)$ 66$ 28$ 29 $ 31 Asset Renewal Levy1719 20 Fire Hall #1 Replacement Levy 80 0 0 0 Total Property Charges$ 91$ 47$ 48$ 49$ 51 * Average value based on April, 2013 BC Assessment revised Assessment Roll ** Approximately $17 for every 1% increase prepared by Financial Services Department

26. 26 Impact of Utility Charges (net of 5% Discount) 2012 Budget 2013 Budget $ Variance % Variance Sanitary Sewer Services$ 317 $ 0 0.00% Water Services$ 338 $ 0 0.00% Garbage & Recycling Services$ 307 $ 0 0.00% Subtotal (User Fee Charges)$ 962 $ 0 0.00% Storm Drainage Services$ 52$ 55$ 3 5.80% Total Utility Charges$ 1,014$ 1,017$ 3 0.30% prepared by Financial Services Department

27. 27 Total Charges ($) – All Years ($547,500 Average 2013 Assessed Household *) General Government (incl. Police) Asset Levy Fire Hall #1 Debt LevySubtotal Storm Drainage Utility User Fee Utilities (Water, Sewer, Garbage) City Metro Total with Utilities 2013$ 66$ 17$ 8$ 91$ 3$ (5)$ 5$ 94 2014$ 28$ 19$ 0$ 47$ 4$ (3)$ 27$ 75 2015$ 29$ 19$ 0$ 48$ 4$ (4)$ 34$ 82 2016$ 29$ 20$ 0$ 49$ 4$ 0$ 28$ 81 2017$ 31$ 20$ 0$ 51$ 4$ 10$ 21$ 86 * Approximate value based on April, 2013 BC Assessment revised Assessment Roll prepared by Financial Services Department

28. 28 Impact of Total Charges ($547,500 Average 2013 Assessed Household *) 2012 Budget 2013 Budget $ Variance User Fee/Tax Impact General Government$ 1,141$ 1,176$ 35 2.10% Port Moody Police$ 508$ 539$ 31 1.74% Subtotal$ 1,649$ 1,715$ 663.84% Asset Renewal Levy$ 51$ 68$ 17 1.00% Fire Hall #1 Replacement Levy$ 19$ 27$ 8 0.50% Subtotal - Operating$ 1,719$ 1,810$ 915.34% Storm Drainage$ 52$ 55$ 3 0.18% User Fee Utilities (Water, Sewer, Garbage & Recycling) $ 962 $ 00.00% Total Property Charges$ 2,733$ 2,827$ 94 3.38% * Approximate value based on April, 2013 BC Assessment revised Assessment Roll prepared by Financial Services Department

29. 29 Tri-City Comparison Average Assessed Household Average Assessed Value Total Charges Average Household  Total $ Increase Total % Increase Port Moody$ 547,500$ 2,827$ 943.38% Coquitlam  $ 565,000$ 2,911$ 943.30% Port Coquitlam  $ 449,000$ 2,410$ 933.70%   Total Charges includes taxes, levies and utility user fees   Information provided by City of Coquitlam  Information provided by City of Port Coquitlam prepared by Financial Services Department

30. 30 Your Tax Notice Tuesday, July 2, 2013 prepared by Financial Services Department

31. 31 Your Tax Notice (cont’d.) $35 (2.10%) City Services $17 (1.00%) Asset Renewal Levy $31 (1.74%) Police Services $ 8 (0.50%) Firehall Replacement Levy $ 3 (0.18%) Storm Drainage prepared by Financial Services Department

32. 32 Financial Plan Bylaw Tax Rate Bylaw prepared by Financial Services Department