BylawsBylaw No. 1565FinanceAdopted 2015
Financial Plan for 2015-2019 Bylaw
The City adopted its five-year financial plan for 2015–2019, setting out projected revenues, spending, borrowing, and transfers. It also records the City’s revenue and property-tax policies, including how it approaches tax increases, fees, debt, and tax exemptions.
Who it affects: The plan applies to the City of Langford and sets financial policies relevant to residents, property owners, service users, and organizations seeking tax exemptions.
Key rules
The parts residents most often run into. The PDF is the official text.
- The financial plan covers 2015–2019 and includes the attached schedules A and B.
- Except in extraordinary circumstances, tax increases are kept to cost of living or less.
- Various fees are reviewed every 1-5 years to check that they recover service costs.
- Debt is considered for urgent projects or to leverage grants when internal funding is unavailable.
- Permissive tax exemptions are considered where organizations show community access at a nominal charge and community benefit in the previous year.
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ertified True Copy Linda Kaercher Deputy Clerk CITY OF LANGFORD BYLAW NO. 1565 A BYLAW TO ADOPT A FINANCIAL PLAN FOR 2015 — 2019 WHEREAS under the Community Charter the municipality must have a financial plan adopted by bylaw before the annual property tax bylaw is adopted; AND WHEREAS through a public process the financial plan has been presented and the public has had an opportunity to comment AND WHEREAS Council deems this to be a process of public consultation as required by the Community Charter, NOW THEREFORE the Council of the City of Langford, in open meeting assembled, enacts as follows: 1. Schedule "A" attached hereto and forming part of this bylaw comprises the City of Langford Consolidated Five Year Financial Plan for 2015 — 2019 2. Schedule "B" attached hereto and forming part of this bylaw comprises the City of Langford Revenue and Property Tax Policy Disclosure. 3. This bylaw may be cited for all purposes as "City of Langford 2015-2019 Financial Plan Bylaw No. 1565, 2015". READ A FIRST TIME this 20th day of April, 2015. READ A SECOND TIME this 20th day of April, 2015. READ A THIRD TIME this 20th day of April, 2015. ADOPTED this 4th day of May, 2015. (Certified Correct) CORPORATE OFFICER Bylaw No. 1565 Page 2 of 4 Schedule "A" Bylaw No. 1565 Consolidated Financial Plan 2015-2019 2015 2016 2017 2018 2019 REVENUES: External Revenues Development Fees Development Cost Charges $ 5,901,200 $ 1,477,500 $ 1,813,000 $ 2,792,400 $ 2,889,800 Developer Contributions - - - Other Capital Contributions 2,500,000 - - Development Fees Total 8,401,200 1,477,500 1,813,000 2,792,400 2,889,800 Municipal Property Taxes 23 967,000 25,772,900 27,547,100 29,580,100 31,179,000 Parcel Taxes 1,629,400 1,705,300 1,761,300 1,726,300 1,790,000 Fees and Charges 5,591,600 5,709,600 5,987,600 6,371,100 6,536,700 Interest 433,000 441,000 454,000 463,000 471,000 Grants From Other Governments 13,246,100 8,602,800 6,323,300 1,515,100 1,577,700 Other Sources 1,387,800 2,222,400 2,077,000 2,281,600 2,351,200 Total External Revenues 54,656,100 45,931,500 45,963,300 44,729,600 46,795,400 EXPENDITURES: External Expenditures Operating Expenditures 29,472,000 30,813,900 32,036,000 33,148,700 34,387,300 Interest Payments on Debt 1,000,100 1,083,100 1,088,800 1,600,300 1,650,800 Capital Expenditures 37,649,600 18,755,000 12,583,200 6,005,200 7,253,200 Total External Expenditures 68,121,700 50,652,000 45,708,000 40,754,200 43,291,300 CHANGE IN NET FINANCIAL POSITION (13,465,600) (4,720,500) 255,300 3,975,400 3,504,100 OTHER REVENUES: Borrowing Proceeds 8,721,700 5,075,800 2,904,800 657,800 918,300 OTHER EXPENDITURES: Principal Payments on Debt 2,477,100 2 627 300 2,677,800 2,827,600 2,337,700 TOTAL REVENUES LESS EXPENDITURES -$ 7,221,000 -$2,272,000 $ 482,300 $ 1,805,600 $ 2,084,700 INTERNAL TRANSFERS: Transfer from Reserve Funds Affordable Housing 213,600 14,000 14,400 14,800 15,200 Capital Works & Equipment $ 2,561,500 $ 2,600,000 $ 902,500 $ 1,675,500 $ 1,800,000 Equipment Replacement 882,300 342,000 203,300 40,000 60,000 Parks & Open Space 1,200,000 700,000 - Park Improvement 50,000 - 175,000 - 500,000 Sidewalk Capital 80,000 150,000 150,000 150,000 150,000 Police Building Capital 5,600 5,600 5,600 135,000 - General Amenity 1,753,600 733,300 1,012,900 463,300 813,700 Transfer from Reserve Fund Total 6,746,600 4,544,900 2,463,700 2,478,600 3,338,900 Less. Transfer to Reserve and Capital Funds Reserves: Police Building Capital 13,400 18,100 20,000 16,000 12,000 Capital Works & Equipment 2,316,900 1,330,600 1,365,600 2,095,800 2,205,000 Equipment Replacement 500,000 600,000 750,000 750,000 750,000 Infrastructure Sustainability - - 792,000 1,735,000 General Amenity 220,000 General Capital Fund 125,000 125,000 125,000 125,000 125,000 3,175,300 2,073,700 2,260,600 3,778,800 4,827,000 Transfers from (to) Surplus 1,920,400 400,000 200,000 200,000 200,000 Transfers from (to) Reserve Accounts 1,729,300 (599,200) (885,400) (705,400) (796,600) TOTAL INTERNAL TRANSFERS $ 7,221,000 $ 2,272,000 -$ 482,300 -$ 1,805,600 -$ 2,084,700 , Bylaw No. 1565 Page 3 of 4 Schedule "B" Bylaw No. 1565 Revenue and Property Tax Policy Disclosure REVENUE DISCLOSURE Revenue Proportions 2015 2016 2017 2018 2019 ($'000s) % ($'000s) % ($'000s) % ($'000s) % ($'000s) % Property Taxes 23,967 38% 25,773 51% 27,547 56% 29,580 64% 31,179 65% Parcel Charges 1,629 3% 1,705 3% 1,761 4% 1,726 4% 1,790 4% Fees 5,592 9% 5,710 11% 5,988 12% 6,371 14% 6,537 14% Other Sources 23,468 36% 12,745 25% 10,667 22% 7,051 17% 7,290 15% Proceeds From Borrowing 8,722 14% 5,076 10% 2,905 6% 658 1% 918 2% 63,378 100% 51,009 1100% 48,868 100% 45,386 1100% 47,714 100% Other Sources includes grants from other governments and agencies, development contributions to capital interest and penalties and miscellaneous sales of services. Objectives and Policies Property tax revenue is the City's primary revenue source, and one which is heavily reliant on the residential class. Diversification of the tax base and generation of non-tax revenue are ongoing objectives. Except in extraordinary circumstances, tax increases are kept to cost of living or less. Parcel Charges are comprised of local area service debt servicing costs for roads. Fees & Charges are a tool used for cost recovery. Various fees are reviewed every 1-5 years to ensure that they are adequate to recover costs of providing specific services. Other Sources will vary greatly from year to year as it includes such items as: • Development cost charges used to fund DCC capital projects, • Contributions from others for capital, • Interest earned on funds invested in accordance with the City's investment policy, • Grants, which are sought from other governments and government agencies, often to be leveraged with City funds, • Casino revenue sharing income. Proceeds from Borrowing — Debt is used where it makes sense such as for urgent projects or to leverage grants where internal funding is not available. Caution is necessary when considering debt as it commits future cash flows to debt payments, restricting the ability to use those funds to provide other services. The source of the debt payments needs to be considered as does the justification for advancing the project Bylaw No. 1565 Page 4 of 4 Schedule "B" Continued Revenue and Property Tax Disclosure PROPERTY TAX DISCLOSURE Property Tax Revenue Distribution The table below presents tax revenue and tax rates based on the 2015 Revised Assessment Roll: Property Tax Distribution I I I I Property Class Taxation R&ienue Net Taxable Assessed Value Tax Rate Multiple ($'000s) % ($'000s) % ($/1000) (Ra e/Res. Rate) 1. Residential 14,249 60.7% 4,900,688 82.32% 2.9076 1.00 2. Utility 140 0.6% 6,504 0.11% 21.5162 7.40 3. Supportive Housing - 0.0% 0.00% 2.9076 1.00 4. Heavy Industry - 0.0% - 0.00% 9.3334 3.21 5. Light Industry 248 1.1% 26,591 0.45% 9.3334 3.21 6. Business/Other 8,800 37.4% 1,008,844 16.94% 8.7228 3.00 7. Managed Forest - 0.0% 96 0.00% 2.9076 1.00 8. Rec./Non-Profit 38 0.2% 10,980 0.18% 3.5037 1.21 9. Farm - 0.0% 133 0.00% 2.9076 1.00 23,475 5,953,836 Objectives and Policies Council sets tax rates to maintain tax stability between property classes. Property class multiples are reviewed periodically to ensure that the burden of tax among property classes is not distorted by differing market value changes between classes. Permissive Tax Exemptions Policy with respect to permissive tax exemptions under section 224 of the Community Charter is that exemption will be considered where the organization has demonstrated proof of community access to citizens of Langford at a nominal charge and community benefit in the previous year. Council supports the establishment of assisted living seniors' housing in Langford and has granted 10- year exemptions to two such developments. Council has established a revitalization tax exemption program under section 226 of the Community Charter which grants a five-year or 10-year exemption for eligible buildings. An exemption certificate was issued for one property in 2011 for which the exemption expires in 2021