1. October 22, 2015 DRAFT 2016-2020 Financial Plan v1

2. Agenda: 1.Where we are in the process….. 2.Financial Plan Context 3.Decision Packages a)New Services/Programs b)Enhanced Services/Programs c)Sustaining 4.Draft 2016-2020 Financial Plan Highlights 5.Pending Decisions a)Garbage Pickup Automation b)Parking Services Model c)Fire Services 6.2016 Operating Budget 2017-2020 Plan 7.2016 Capital Budget and 2017-2020 Plan 8.Next steps……

3. Where we are in the process..... 1.Business Case Presentations: a)IT Support Staff b)RCMP Support Staff c)Solid Waste Automation d)RCMP Staffing e)Fire Services 2.Strategic Updates: a)Transportation Plan b)Land Acquisition c)Financial Reserves Policy Update d)Revenue Policy Update e)Asset Management f)Water Services 3.DRAFT 2016-2020 Financial Plan v1

4. Financial Plan Context 1.Economic Climate 2.Federal Elections 3.BC Province Budget Performance 4.City of Nanaimo Core Service Review

5. Draft 2016-2020 Financial Plan Highlights 1.2016 Status Quo Budget. (2015-2019 Financial Plan) – $135M Operating Budget 2.1.7% Property Tax Increase in 2016 including 1% for Asset Management. 3.Estimated $1.2M in new property tax revenue from Assessment Growth. 4.User Fee Rates in 2016; – 7.5% increase for Water (2.5% for asset management) – 5% for increase for Sewer in 2016 and 4% thereafter through 2020 for Asset Management – 1% for Garbage 5.No new services or programs in 2016. 6.Investment of $37M in capital assets in 2016 and $143M over the next four years through 2020.

6. Pending Decisions 1.Garbage Pickup Automation 2.Parking Service Model 3.Fires Services

7. DRAFT 2016 Operating Budget and 2017-2020 Operating Plan v1

8. 2016-2020 Projected Property Tax Rate Increases

9. Budget Appropriation Decision Packages 1.New Services. (Council has total discretion) – New Program or Service. – Supported by a business case. 2.Enhanced Services. (Council has limited discretion) – Current Program or Service. – Service or Program extension due to changes in delivery method or response to population growth. – Supported by a business case. 3.Sustaining. (Council has very limited discretion) –Cost pressures due to inflation or contractual obligations or maintenance needs.

10. 2016 Budget Operating Fund Cost Pressures 1% Property Tax Revenue = $985,000 Decision PackageAmount $ Property Tax Rate Equivalent New Services- 0 -0% Enhanced Services756,6780.8% Sustaining Costs2,797,5522.8% Total3,554,2303.6%

11. 2016 Operating Budget Cost Pressures Enhanced Services Cost ObjectAmountPTIE* IT – 1 FTE104,4430.1% RCMP Support – 1 FTE72,2350.1% RCMP – 4 New Members580,0000.6% Total756,6780.8% * Property Tax Increase Equivalent

12. 2016 Operating Budget Cost Pressures Sustaining Costs Cost ObjectAmountPTIE* General Asset Management985,0001.0% Other Expenses50,0000.1% Labor Contracts974,1061.0% RCMP Contract301,2320.3% GIS Temp Position46,0000.0% Contracted Services/R&M124,0560.1% Utilities308,5580.3% Equipment Reserve180,6000.2% Internal Efficiencies(172,000)(0.2%) Total2,797,5522.8% * Property Tax Increase Equivalent

13. 2016 Operating Budget Funding Plan Cost /(Revenue) ObjectAmountPTIE* Total Cost Pressures3,554,2303.6% Internal Revenue Growth Fortis Agreement(525,000)(0.5%) Grants in Lieu(120,013)(0.1%) Building Permits(32,000)(0.0%) Parks, Recreation & Environment(168,000)(0.2%) Revenue Reductions (VICC & City Property Rentals)126,2650.1% Property Tax Revenue from Assessment Growth(1,200,000)(1.2%) Net Funding Requirement1,626,6241.7% * Property Tax Increase Equivalent

14. Draft 2016 Budget Impact to a Typical Household

15. DRAFT 2016 Capital Budget and 2017-2020 Capital Plan v1

16. Draft 2016-2020 Financial Plan All Funds - $180M

17. Draft 2016-2020 Financial Plan Capital Budget Funding Sources - $180M

18. Draft 2016 Capital Budget $37M

19. Draft 2016 Capital Budget Funding Sources - $37M

20. Draft 2017 Capital Plan $143M

21. Next Steps..... 2015-DEC-14 – 2016-2020 Financial Plan Bylaw 3 Readings plus Online Engagement Feedback 2015-NOV-25 – End Online Engagement 2015-NOV-23 – 2016-2020 Draft Financial Plan v2 Presentation plus Budget e-Town Hall 2015-NOV-18 – Council Budget Workshop 2015-NOV-09 – 2016-2020 Draft Financial Plan v1 Presentation 2015-NOV-06 – Publish 2016-2020 Draft Financial Plan Package 2015-NOV-06 – Launch Online Engagement

22. Citizen Budget Examples

23. Citizen Budget Examples, cont’d…

24. October 22, 2015 DRAFT 2016-2020 Financial Plan v1