Transcript Formal PowerPoint Template

City of Port Moody
2013 - 2017 Draft Financial Plan
Tuesday, February 26th , 2013
2013 Budget Deliberations
2013 Budget Summary (1% ~ $295,000)
Item
Amount Tax
$
%
Comment
0.00
0.00
Revenue Changes
-108,612
-0.37
Fees, grants in lieu of taxes increases
Growth
-69,700
-0.24
New tax revenues from development (BCA estimate)
Salaries
570,669
1.93
Salary contractual increases – no new positions
Inflation/3 Year Average
192,531
0.65
Inflation
Inlet Centre Fire Hall Debt Levy
143,500
0.49
Second phase of borrowing ($3 Million)
728,388
2.46
Unavoidable Legislation/Regulation
138,090
0.47
Post employment benefits; Invasive plant mgmt.
Operational Priorities - High
444,000
1.51
Services prioritized HIGH by management
1,310,478
4.44
650,998
2.21
October 23, 2012 Council Meeting
1,961,476
6.65
January 31, 2013 Budget Town Hall Meeting
2012 Baseline Budget
Starting point is same service level as 2012
2013 Commitments:
Subtotal
Subtotal
Police
TOTAL
2
prepared by Financial Services Department
2013 Budget Deliberations
2013 Budget Adjustments
Budget
Impact
Proposed Tax Increase - Jan 31 Town Hall Meeting
1 Overhead Adjustment
2 Compensation & Benefit Adjustments 
3 Burrard Thermal Grant in Lieu (preliminary number)
4 Growth (preliminary number)
Revised Tax Increase
Tax
Impact
$1,961,476
6.65%
-64,200
-0.21%
-132,100
-0.45%
-54,000
-0.18%
42,500
0.14%
$1,753,676
5.95%
 Subsequent to the Agenda report, staff have been working with a consultant and identified
additional annual net savings for benefits.
Based on an effective date of May/2013, $66,000 in additional savings relate to 2013.
3
prepared by Financial Services Department
2013 Budget Deliberations
Tax Impact to the Average Household
($531,600 Average 2012 Assessed Household)
2012
Amount
Taxes
Drainage
Utilities
Combined Taxes
& Utilities
4
Increase
2013
User Fee /
Tax Impact
Amount
Increase
User Fee /
Tax Impact
$1,706
$87
5.36%
$1,807
$101
5.95%
52
3
6.12%
55
3
5.77%
962
29
3.16%
962
0
0.00%
$2,720
$119
4.59%
$2,824
$104
3.82%
prepared by Financial Services Department
Annual Asset Funding
What should the annual funding be?
 City has approximately $650 Million in assets
•
•
•
$450 Million land / $200 Million infrastructure/equipment
Depreciation $6.2 Million per year
Annual replacement cost is significantly higher, possibly
$10,000,000
 Asset Funding
 Asset Levy (established 2009)
• 2009 – 2011: 3.50%
• 2013 – 2017: 1.00% per year Proposed
$852,000
1,621,000
 Other Capital Funding (2013 - 2017)
 Utility Capital Funding (2013 - 2017)
2,473,000
1,076,000
3,605,000
Total Annual Asset Funding (end of 2017)
$ 7,154,000
Total Annual Infrastructure Funding Gap (estimated)
$ 2,846,000
5
prepared by Financial Services Department
Historical Perspective
Retroactive Infrastructure Funding Gap
 City has not addressed the funding gap retroactively
 In prior years, assets were being used up much faster than funds
were set aside or raised
 If asset replacement funding was in place, the Asset Reserve
would have more funds today to meet planned capital replacement
 Because the funding was not in place, the Asset Reserve is
insufficient to fund major capital replacements
(e.g. Fire Hall)
 Therefore, the City must substitute debt to provide capital funding,
using asset levies to fund debt service
(e.g. Police Building, Recreation Centre)
6
prepared by Financial Services Department
Asset Reserve
What should the Asset Reserve balance be?
 Depends on what is planned to be replaced, and when
 A detailed Asset Management Plan will provide a schedule of
future major capital replacements
 By listing what will be required and when, annual funding
contributions and reserve balances will be determined
 The City has a 2013 Capital Project to develop a Asset
Management Plan which will provide a planning tool
 The amount of the City’s assets used up to date is approximately
$87 Million. This is the amount the City should have in the Asset
Reserve to fund all replacements without debt
 The $87 Million is historical value; replacement value would be
much higher
7
prepared by Financial Services Department
Tri-City Comparison
Average Assessed Household
Average
Assessed
Value
Total $
Increase
Total %
Increase
Port Moody **
$ 531,600
$ 2,824
$104
3.82%
Coquitlam ***
$ 565,000
$ 2,911
$ 94
3.30%
Port Coquitlam ****
$ 449,000
$ 1,988
$ 94
3.40%
*
**
***
****
8
Total Charges
Average
Household *
Total Charges includes taxes, levies and utility user fees
Based on proposed 5.95% tax increase
Information provided by City of Coquitlam (approved)
Information provided by City of Port Coquitlam (proposed)
prepared by Financial Services Department