Municipality of North Cowichan2015 – 2019 Budget ReviewJanuary 12, 2015

Guiding Principles

� Align and support Council’s goals and objectives

� Align and support Council’s Revenue, Tax, and Budget Policy

� Maintain existing service levels

� Create a proactive infrastructure renewal plan

� Maintain community development initiatives

2

Municipal Taxes on a Representative House

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014

General Municipal

3

Five Year Increases ( Preliminary

2015 2016 2017 2018 2019

Gross tax increase 4.59% 4.44% 4.57% 4.08% 4.02%

Less: Growth (1.25%) (1.25%) (1.25%) (1.25%) (1.25%)

Net Tax Increase 3.34% 3.19% 3.32% 2.83% 2.77%

4

Includes new RCMP Detachment debt net costs2016 6 $70,500 2017 6 $336,000 2018 6 $531,000 Total payment $1,002,240 RCMP 47% $471,000

Cost Drivers2014

Budget2015

BudgetIncrease

(Decrease)% Tax

Increase

Wage Increase 162,000 0.7%

1% Inflation 176,300 0.7%

Aquatic Centre Reserve 21,500 43,000 21,500 0.1%

Communications Staff 15,500 31,100 15,500 0.1%

VI Regional Library 1,264,800 1,345,000 80,200 0.3%

Aquatic Centre Operating 1,545,979 1,825,372 279,373 1.1%

Energy Projects 42,770 126,478 83,708 0.3%

Capital 3,161,145 3,555,920 394,775 1.6%

5

Significant Revenue Changes

2014 Budget

2015Budget

Increase(Decrease)

% Tax Increase

Tax Penalties 270,000 250,000 (20,000) 0.1%

Garbage Fees 970,900 782,400 (188,500) 0.8%

MMBC Recycling Revenue

200,000 350,000 150,000 (0.6%)

Keep of Prisoners 160,000 140,000 (20,000) 0.1%

Permits and Fees 595,000 552,000 (43,000) 0.2%

Forestry Net to General

90,600 68,800 (21,800) 0.1%

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Other Potential Cost Pressures(Not Included in Budget)• Cowichan Sportsplex Funding Shortfall –

Approximately $57K, and

• Chemainus Visitor Information Centre –Estimated Shortfall $100,000 (potential funding source 6 Forest Legacy Fund).

• Corporate Sponsorship – Inventory and Asset Evaluation – Estimated Cost $120,000

7

Operating Budgets ( Departments

2014Budget

2015 Budget

Increase(Decrease)

% Change % of 2014 Operating

Budget

General Government $3,137,389 $3,196,875 $59,486 1.9% 10.9%

Protective Services 7,668,032 7,737,802 69,770 1.0% 28.5%

Transportation Serv. 5,550,577 5,716,428 165,851 3.0% 19.2%

Garbage, Cemetery, Energy 2,807,763 3,111,613 303,850 10.8% 9.7%

Development Serv. 1,963,000 1,882,811 (80,189) (4.1%) 4.8%

Recreation Parks and Culture

7,763,499 8,075,381 311,882 4.0% 26.9%

Total $28,890,260 $29,720,910 $830,650 2.9% 100.0%

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General Government

2014Budget

2015Budget

Budget Increase

Budget % Increase

Legislative Services 241,610 245,120 3,510 1.5%

General Administration 2,764,750 2,859,215 94,465 3.4%

Common Services 462,250 472,110 9,860 2.1%

Other General Gov’t 207,020 138,010 (69,010) (33.33)%

Admin Recoveries (538,241) (517,580) 20,661 3.8%

General Government 3,137,389 3,196,875 59,486 1.9%

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Protective Services

2014Budget

2015 Budget

Budget Increase

Budget % Increase

Police Protection 5,915,026 5,991,480 76,454 1.3%

Fire Protection 1,551,062 1,550,815 (247) 0.0%

Other Protection 201,944 195,507 (6,437) (3.2)%

Protective Services 7,668,032 7,737,802 69,770 1.0%

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Police Protection

2014 Budget

2015 Budget

Budget Increase

Budget % Increase

RCMP Contract 4,454,354 4,522,551 68,197 1.5%

Clerical 739,902 744,368 4,466 .6%

Information Services 81,490 83,523 2,033 2.5%

Restorative Justice 7,000 7,000

Building Maintenance 217,510 222,605 5,095 2.3%

Guards 414,770 411,433 (3,337) (.8)%

Police Protection 5,915,026 5,991,480 76,454 1.3%

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Fire Protection2014

Budget2015

BudgetIncrease

(Decrease)% Change

Fire Control 37,542 38,200 658 1.8%

Fire Inspection 61,650 51,031 (10,619) (17%)

Fire Truck Reserve 273,960 265,000 (8,960) (3.3%)

Chemainus Fire Hall 295,970 302,881 6,911 2.3%

Crofton Fire Hall 254,970 261,281 6,311 2.5%

Maple Bay Fire Hall 264,510 264,621 111 0.0%

South End Fire Hall 362,460 367,801 5,341 1.5%

Total 1,551,062 1,550,815 (247) 0.0%

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Transportation Services

2014Budget

2015Budget

Budget Increase

Budget % Increase

Administration 1,544,640 1,608,522 63,882 4.1%

Road Transportation 4,005,937 4,107,906 101,969 2.5%

Transportation Services 5,550,577 5,716,428 165,851 3.0%

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Road Transportation2014

Budget2015

BudgetBudget Increase

Budget % Increase

Roads 2,150,482 2,236,229 85,747 4.0%

Snow and Ice Removal 388,588 389,958 1,370 0.4%

Street Lights 441,580 440,830 (750) (0.2%)

Signs and Road Marking 245,980 253,146 7,166 2.9%

Drainage 495,317 501,803 6,486 1.3%

Dikes 39,200 37,460 (1,740) (4.4%)

Training and Safety 76,510 78,000 1,490 2.0%

Other 168,280 170,480 2,200 1.3%

Road Transport 4,005,937 4,107,906 101,969 2.5%

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Environmental

2014Budget

2015Budget

Budget Increase

Budget % Increase

Climate/Energy 119,130 194,703 75,573 63.4%

Garbage/Recycling 1,057,360 1,056,900 (460) 0%

Forestry 1,477,573 1,686,700 209,127 14.1%

Cemetery 153,700 173,310 19,610 12.8%

Environmental 2,807,763 3,111,613 303,850 10.8%

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Forestry is self sustaining, is off set by revenueCemetery increase relates to work on new access road

Climate/Energy

2014Budget

2015Budget

Budget Increase

Budget % Increase

Building Upgrades – Energy 42,770 126,478 83,708 196%

Energy Management 76,360 68,225 (8,135) (10.6%)

Climate/Energy 119,130 194,703 75,573 63.4%

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Energy ProjectsOperating Capital

Crofton Fire Hall 54,725

LED Street Lights 51,753

Energy Audits 20,000

Cowichan Aquatic Center 336,519

Fuller Lake Arena 351,826

Municipal Buildings 64,626

Total 126,478 752,971

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Garbage2014

Budget2015

BudgetBudget Increase

Budget % Increase

Garbage Fees 1,186,578 1,150,058 (36,520) (3.0%)

Garbage Collection 469,475 419,293 (50,182) (10.7%)

Recycling 201,765 289,607 87,842 43.5%

Tipping Fees 343,000 310,000 (33,000) (9.6%)

Other 43,120 38,000 (5,120) (11.9%)

1,057,360 1,056,900 (460) 0%

Transfer to Equipment Reserve 50,920 51,940 1,020 2.0%

Total 1,108,280 1,108,840 560 0%

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Forestry2014

Budget2015

BudgetBudget Increase

Budget % Increase

Forestry Revenues 1,779,573 1,916,105 136,532 7.7%

Forestry Expenses 1,477,573 1,686,700 209,127 14.1%

Surplus 302,000 229,405 (72,595) (24%)

To Forest Legacy 6 20% 60,400 45,880 (14,520)

To Forestry Res 6 50% 151,000 114,703 (36,297)

To General Operating 6 30% 90,600 68,822 (21,778)

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• Forestry is a self6sustaining operation and is not funded by taxation• Forestry is budgeted to have a surplus of $229,405 in 2015

Forestry Operations – 1987 to 2014• Profit Returned to General Revenue (2014 est.) $1,615,000• Forestry Reserve Fund Accumulated (2014 est.) $1,190,000• Forest Legacy Fund Accumulated (2014 est.) $ 168,000• Forest Land Purchased 61 Acres $ 254,760• Job Creation Program Funding

▫ 1982� 1986 $10,000,000

• HWY 18 – Sale of Forest Reserve Land▫ $750K to Land Sales Reserve Fund▫ $250K to Forest Reserve Fund

• Person years of work in 2013▫ Direct 12.55▫ Indirect 25.10

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Planning and Economic Development2014

Budget2015

BudgetBudget Increase

Budget % Increase

Planning and Sustainability 1,228,940 1,124,055 (104,885) (8.5%)

Economic Development 154,920 127,040 (27,880) (18.0%)

Building Inspection 518,460 559,530 41,070 7.9%

Bylaw Enforcement (incr. to 60%) 60,680 72,186 11,506 19.0%

Total 1,963,000 1,882,811 (80,189) (4.1%)

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Economic Development is the Chemainus BIA and $ 30,000 for Community Economic Profile in 2014BIA

• Fixed tax rate separate from general taxation• Amount increases/decreases with assessment

Planning and Sustainability2014

Budget2015

BudgetBudget Increase

Budget % Increase

Planning Administration 943,790 958,605 14,815 1.6%

Environmental Committee 10,300 10,450 150 1.5%

Crofton Waterfront Plan 74,750 0 (74,750)

Zoning Bylaw Revision 10,000 0 (10,000)

University Village Plan 85,100 25,000 (60,100) (70.6%)

Univer. Vill. Transportation Plan 40,000 0 (40,000)

Bonsal Creek Watershed Plan 50,000 50,000 0

Other Plans 15,000 80,000 65,000 433%

1,228,940 1,124,055 (104,885) (8.5%)

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Planning ( Grants2014

Budget2015

Budget

University Village – City 23,000 0

University Village – Hydro 20,000 0

Univ Vill Transport – City 15,000 0

Univ Vill Transport – Province 20,000 0

University Village – Other 0 25,000

Bonsal Cr. Watershed 6 Province 25,000 25,000

Community Energy Manager 6 BC Hydro 50,000 50,000

Other 0 24,000

153,000 124,000

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Planning – Net2014

Budget2015

BudgetBudget Increase

Budget % Increase

Administration 943,790 958,605 14,815 1.6%

Planning Studies 285,150 165,450 (119,700) (42.0%)

Total 1,228,940 1,124,055 104,885 (8.5%)

Grants/Surplus 182,900 124,000 (58,900) (32.2%)

Net 1,046,040 1,000,055 (45,985) (4.4%)

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Recreation, Parks and Culture2014

Budget2015

BudgetBudget Increase

Budget % Increase

Administration 121,340 106,680 (14,660) (12%)

Swimming Pools 3,219,290 3,400,690 181,400 5.6%

Arena 936,740 932,150 (4,590) (.5%)

Parks & Playgrounds 1,853,140 1,990,520 137,380 7.4%

Wharves 158,969 157,400 (1,569) (1%)

Regional Library 1,264,800 1,340,941 76,141 6.0%

Grants in Aid 209,220 147,000 (62,220) (29.7%)

Total Recreation & Culture 7,763,499 8,075,381 311,882 4.0%

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Cowichan Aquatic Centre ( Operating

2014Budget

2015Budget

Budget Increase

Budget % Increase

CAC Revenues 1,467,319 1,469,387 2,068 .1%

CAC Expenses 3,139,060 3,344,130 205,070 6.5%

Partners’ Share – Operating (1,671,741) (1,874,743) 203,002 12.1%

Recovery % 46.7% 43.9%

CAC Capital 120,000 429,519 309,519 258%

Total CAC net 1,791,741 2,304,283 512,542 15.8%

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Cowichan Aquatic CentreContributions 2014 2015 Increase %

Contributed

North Cowichan 1,388,157 1,825,372 437,215 79.2%

City of Duncan 211,513 277,711 66,198 12.1%

Cowichan Tribes 60,871 70,000 9,129 3.1%

Area’s A,B,C & D 100,000 100,000 0 4.3%

Area E 19,300 19,200 (100) 0.8%

Lake Cowichan, F & I 11,900 12,000 100 0.5%

Total 1,791,741 2,304,283 512,542 100%

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Fiscal Services2014 Budget 2015 Budget Budget

IncreaseBudget % Increase

Debt – Interest 1,079,114 1,142,138 63,024 5.8%

Debt 6 Principal 779,089 782,532 3,443 .4%

Total Fiscal Services 1,858,203 1,924,672 66,469 3.6%

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Changes: • Maple Bay Peninsula LAS 51,900• Hwy Diking 4,069• Muni Hall Reno 8,000

201562019

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Sources of Financing• Capital projects are financed through a variety of sources including:

� General Revenue� Gas Tax Revenue� Appropriated Surplus� Reserve Funds� Development Cost Charges� Government Grants� Other Contributions� Debt

• Only general revenue is funded directly from property taxes

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Capital FundRevenue Sources :

� Property Taxes (target $3.88 million – recommended 15% of Property Taxes)� 2015 Proposed Budget � $3,555,920 (13.76%)� 2014 Budget � $3,161,145 (12.80%)

� Property tax transfer to Capital has increased on a % basis from 2014, primarily due to an increase in energy related projects

� Reducing capital transfer would be a reversal of the effort Council took in 2011 to get capital to sustainable level of 15% as per Revenue, Tax and Budget Policy.

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Capital Expenditure – Summary

2015 2016 2017 2018 2019

General Government 32,849 10,000 10,000 10,000 10,000

Land Acquisition & Develop. 149,000 879,500 500,000 898,763 0

Municipal Property Improvements 191,626 550,000 525,000 525,000 525,000

Information Services 240,000 207,000 213,000 213,000 213,000

Community Development 1,870,000 520,000 1,030,000 1,340,000 1,390,000

Protective Services: Police & Other 571,000 7,000,000 7,000,000 0 0

Protective Services: Fire 369,950 517,805 40,000 40,000 380,000

Forestry 36,000

Transportation 13,054,771 4,249,092 4,052,490 4,109,860 4,180,520

Parks & Recreation 1,120,935 740,700 795,700 715,700 805,700

Total 17,600,131 14,710,097 14,166,190 7,852,323 7,504,220

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2015(2019 Capital Funding Summary

2015 2016 2017 2018 2019

General Revenue 3,555,920 3,878,460 3,979,370 4,101,560 4,232,220

Gas Tax Revenues 1,207,000 1,207,000 1,268,000 1,268,000 1,328,000

Appropriated Surplus 916,000

Reserve Funds 3,335,140 1,970,805 1,632,820 2,194,763 1,636,000

Development Cost Charges 180,000 204,000 206,000 208,000 208,000

Grants 4,317,381 246,555

Other Contributions 436,743 101,894 80,000 80,000 100,000

Debenture Debt 3,651,947 7,101,383 7,000,000 6 6

Total Sources of Financing 17,600,131 14,710,097 14,166,190 7,852,323 7,504,220

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Capital Fund – General Fund

2015 2016 2017 2018 2019

Tax Supported Capital 3,555,920 3,878,460 3,979,370 4,101,560 4,232,220

Fuel Tax Revenues 1,207,000 1,207,000 1,268,000 1,268,000 1,328,000

Appropriated Surplus –carried forward 916,000

Total General Fund 5,678,920 5,085,460 5,247,370 5,369,560 5,560,220

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Proposed Schedule

DATE ITEM

Sept. 6, 2014 Department Heads issued budget spreadsheets

Oct. 15, 2014 Department Heads return completed budget spreadsheets

Oct. 21 – Nov. 8 Administrative Review of Budgets

Dec. 8, 2014 Budget Outlook presented to Council

Jan. 12, 2015 Initial Operating Budget presented to Council 6 COW

Jan. 20, 2015 Proposed Capital Expenditure Plan 6 COW

Jan. 27, 2015 Review Financial Plan, Proposed Utility Budgets and Rates 6 COW

Feb. 10, 2015 Finalized Financial Plan for Open House (Feb 18) 6 COW

Apr. 7, 2015 Workshop on distribution of tax rates – COW

Apr. 15, 2015 First three readings of 2015 Tax Rates bylaw, adopt Financial Plan.

May 6, 2015 Adopt Tax Rates Bylaw

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