1. 2017-2021 Proposed Draft Financial Plan April 10, 2017
The Corporation of the Village of Slocan
Proposed Draft Financial Plan April 10, 2017

2. Presenter: Colin McClure, Chief Financial Officer
Agenda
Introduction
Quick Facts
2017 – 2021 Financial Plan Process
2017 Budget overview
Taxation & Operating Budget
Comments & Questions
Presenter: Colin McClure, Chief Financial Officer

3. Quick Facts All Village Operational revenue about $729,000
Total operational expenses about $578,000
Revenue over expenses pay down debt, fund capital purchases & flow into Operational and Capital reserves
General Fund Operational expense is budgeted at $521,000 in 2017, funded by $160,000 in Taxation (approx. 3 to 1 ratio)
A 1% increase in taxation produces about $1,540 to cover operational expenditures

4. Financial Planning Process
Departmental staff prepare budget
Finance staff & senior management review
Adjustments by staff
Staff presentations to Council
Council debate & propose tax rate
Public consultation
Council review of input & potential subsequent changes
Bylaw introduction and adoption
Today

5. General Operating Budget Principles Council’s Direction to Staff
Support delivery of municipal services
Maintain services delivered at 2016 levels
Reduce costs of service delivery, where possible, while minimizing service impact levels
Generate new revenue
Minimize tax rate increase
Long term planning as a focus
Continue infrastructure program
Implement sustainability principles

6. Budget Overview - 2017 Highlights:
For 2017 the expected revenue generation from New residential construction is $2,306
However, in the Business category there was a Non Market Change decrease which will lower business taxes by $264
This will result in a net increase in tax revenue by $2,042 in 2017
Recommending a 3% average overall property tax increase
There was a 2.75% or $12 annual increase in water rates for a home in 2017
No change in garbage fees
2017 Capital Budget:
$361,000 in General
$104,500 for Water capital
$500,000 placeholder to get the Hydro project underway in 2017

7. Tax Revenues: Growth – Where does it come from?
New revenue only exists when there is new assessment
Increase in “inventory” i.e. through subdivision or new construction
General increases in market value do not generate more tax dollars
Past couple of years has resulted in minimum new revenues from growth

8. Effect of Assessments in 2016
Average market changes:
Residential up 6.30% from 2016
Commercial up 1.75% from 2016
Council has directed staff to adjust the Business tax multiplier in order collect the same percentage in taxation from Commercial properties and Residential in the current year.
The 2016 Business multiplier was 1.06
This will keep the tax sharing consistent with prior year, which was 89% Residential, 6% Business, 2% Light industry & 3% from Utilities.

9. Allocation of 2016 Taxes on an average SFD
Municipal Taxes
$600
School Taxes
351
RDCK
247
Police tax 49
Regional Hospital 42
BCAA & MFA 8
Total
$1,297

10. 2017 Proposed Budget Effect on $153,000 Assessed Home
2016 Actual
2017 Proposed
Net Annual Change
Net Monthly Change
Property Tax (municipal only)
647
666
$ 19
$ 1.58
Water Rates (after discount)
423
435 12
1.00
Resource Recovery
120
Overall
$1,190
$1,221
$ 31
$2.58

11. Overall Capital Plan – 2017 Highlights
Total Operating & Water Capital - $465,000
New dump truck and sanding/snowplowing attachments
Significant paving program
Wellness Centre signage
Seniors Housing project preparation
Legion Hall roofing
Works yard fencing
Waterline replacement
Water plant pump and other upgrades
Storm water management plan & sewer and drainage upgrades
Hydro project – grant approval recently announced
$500,000 budgeted in 2017 to get projected started with plan for major work to be done in 2018

12. Debt and Debt Servicing
Major capital projects typically funded by using combination of existing reserves and by borrowing funds.
Strategic decision when to borrow vs using reserves or taxation.
Currently the Village has no long-term debt only a capital lease with 1.5 years and $10,047 remaining
The Village will likely need to borrow to fund the Springer Creek Hydro power project

13. Comments and Questions?