Friday, March 8, 2013 Richmond Review · Page W1 Page W4 · Richmond Review Friday, March 8, 2013 City of Richmond Five Year Financial Plan www.richmond.ca Why do we prepare 5 Year Financial Plan? The purpose of the 5 Year Financial Plan is to provide a budgetary framework for the City to plan the management of its resources, revenues and expenditures in order to best serve the community. It is meant to ensure the City has the capacity to meet the financial challenges of today and in the future and to maintain appropriate levels of civic services. The 5 Year Financial Plan is based upon the 2013 Operating, Capital and Utility Budgets, as approved by Council. The remaining four years of the plan are estimates based on Council Policies, economic forecasts for BC and the City’s internal plans. Each year, this rolling plan is reviewed and updated. The Community Charter requires that Council adopt a 5 Year Financial Plan each year prior to the adoption on or before May 15 of each year and prior to the adoption of the annual Property Tax Bylaw. Council approved the 5 Year Financial Plan for 2013-2017 on February 25. Copies of the 5 Year Financial Plan and the 2013 Operating, Capital and Utility Budgets are available: • Via the City website at www.richmond.ca (City Hall > Finance, Taxes & Budgets > Budgets & Financial Reporting > 5 Year Financial Plan) • Via email request to fi[email protected]• Via printed copy, available at Richmond City Hall - Information Counter, 6911 No. 3 Road or by calling 604-276-4000 Long Term Financial Management Strategy The Long Term Financial Management Strategy approved by Council is designed to ensure that the City has the financial means to provide for the current and future needs of the community. Under the Strategy, the City’s goal is to maintain property tax increases at or below the annual increase in the cost of living for the Vancouver region. This ensures the City can maintain existing City levels while allowing for cost increases related to inflation, contractual obligations and other expenses. The Strategy also calls for an additional one per cent annual tax increase to go towards the City’s various capital reserve funds. These reserve funds ensure the city has sufficient funds available for future corporate facilities and community infrastructural demands. 5 Year Average Tax Increase (2008-2012) Tax increases in Richmond are on average the lowest out of the comparable cities. 3.25% 3.55% 3.65% 4.06% 4.86% Richmond Surrey Vancouver Burnaby Coquitlam City of Richmond Five Year Financial Plan www.richmond.ca Follow the money trail The average Canadian spends 41 per cent of their income on taxes. Of this, just 11 per cent goes to property taxes. Further, slightly less than half of the property taxes you pay go the City. The remainder is collected on behalf of the Province of BC (for school taxes), Translink for public transit and transportation services, the Metro Vancouver regional district, the BC Assessment authority and others. Ultimately, the City receives about four cents of every tax dollar you pay. The City is not allowed to budget for a deficit. Thus, the portion of property taxes raised by the City each year is based on the amount of revenue required to end up with a balanced budget with no deficit. 2011 Average Household Tax and Distribution* Property Taxes make up 11% of the taxes paid by Richmond Residents with half going towards CIty services. 2013 Utility Budget The City’s 2013 Utility Budget funds services for water supply, sewage collection and treatment, draining, diking, garbage disposal, recycling, flood protection, grease management and environmental protection. The City’s total utility budget for 2013 is about $90 million. The bulk of this budget, 45 per cent, is comprised of service fees set by Metro Vancouver regional district for provision of water supply and sewage treatment and disposal. Currently, the region is investing billions of dollars in ensuring our water supply and sewage treatment meet high public health and environmental standards. This has caused the City’s utility costs to increase at an accelerated rate. This year, the City is introducing two enhanced recycling and waste disposal programs to improve service for residents and support our commitment to divert 70 per cent of waste from landfills by 2015. This includes a new Large Item Pick Up program and a new Green Cart program for recycling food scraps and yard trimmings. The average daily cost for most single family residences for City utility services remains at $3.66 a day. 2013 Net Utility Bill Breakdown Estimates: based on an average single-family residence COST PER YEAR COST PER DAY Water $577.95 $1.58 Sewer $385.38 $1.06 Garbage, recycling & environmental programs $251.40 $0.69 Dikes & drainage $120.31 $0.33 Total cost $1,335.04 $3.66 *Source: Fraser Institute Income spent on non-tax items 59% Income spent on taxes 41% Income Taxes 32% Social Security, Medical, Hospital Taxes 20% Sales Taxes 15% Property Taxes (incl. School Taxes etc.) 11% Profits Taxes 9% Other Taxes 9% Fuel and Energy Taxes 4%
Transcript
Friday, March 8, 2013 Richmond Review · Page W1Page W4 · Richmond Review Friday, March 8, 2013
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
Why do we prepare 5 Year Financial Plan?The purpose of the 5 Year Financial Plan is to provide a budgetary framework for the City to plan the management of its resources, revenues and expenditures in order to best serve the community. It is meant to ensure the City has the capacity to meet the financial challenges of today and in the future and to maintain appropriate levels of civic services.
The 5 Year Financial Plan is based upon the 2013 Operating, Capital and Utility Budgets, as approved by Council. The remaining four years of the plan are estimates based on Council Policies, economic forecasts for BC and the City’s internal plans. Each year, this rolling plan is reviewed and updated.
The Community Charter requires that Council adopt a 5 Year Financial Plan each year prior to the adoption on or before May 15 of each year and prior to the adoption of the annual Property Tax Bylaw. Council approved the 5 Year Financial Plan for 2013-2017 on February 25.
Copies of the 5 Year Financial Plan and the 2013 Operating, Capital and Utility Budgets are available:• Via the City website at www.richmond.ca (City Hall > Finance, Taxes
• Via printed copy, available at Richmond City Hall - Information Counter, 6911 No. 3 Road or by calling 604-276-4000
Long Term Financial Management StrategyThe Long Term Financial Management Strategy approved by Council is designed to ensure that the City has the financial means to provide for the current and future needs of the community.
Under the Strategy, the City’s goal is to maintain property tax increases at or below the annual increase in the cost of living for the Vancouver region. This ensures the City can maintain existing City levels while allowing for cost increases related to inflation, contractual obligations and other expenses.
The Strategy also calls for an additional one per cent annual tax increase to go towards the City’s various capital reserve funds. These reserve funds ensure the city has sufficient funds available for future corporate facilities and community infrastructural demands.
5 Year Average Tax Increase (2008-2012)
Tax increases in Richmond are on average the lowest out of the comparable cities.
3.25%3.55% 3.65%
4.06%
4.86%
Richmond Surrey Vancouver Burnaby Coquitlam
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
Follow the money trailThe average Canadian spends 41 per cent of their income on taxes. Of this, just 11 per cent goes to property taxes. Further, slightly less than half of the property taxes you pay go the City. The remainder is collected on behalf of the Province of BC (for school taxes), Translink for public transit and transportation services, the Metro Vancouver regional district, the BC Assessment authority and others. Ultimately, the City receives about four cents of every tax dollar you pay.
The City is not allowed to budget for a deficit. Thus, the portion of property taxes raised by the City each year is based on the amount of revenue required to end up with a balanced budget with no deficit.
2011 Average Household Tax and Distribution*
Property Taxes make up 11% of the taxes paid by Richmond Residents with half going towards CIty services.
2013 Utility BudgetThe City’s 2013 Utility Budget funds services for water supply, sewage collection and treatment, draining, diking, garbage disposal, recycling, flood protection, grease management and environmental protection.
The City’s total utility budget for 2013 is about $90 million. The bulk of this budget, 45 per cent, is comprised of service fees set by Metro Vancouver regional district for provision of water supply and sewage treatment and disposal. Currently, the region is investing billions of dollars in ensuring our water supply and sewage treatment meet high public health and environmental standards. This has caused the City’s utility costs to increase at an accelerated rate.
This year, the City is introducing two enhanced recycling and waste disposal programs to improve service for residents and support our commitment to divert 70 per cent of waste from landfills by 2015. This includes a new Large Item Pick Up program and a new Green Cart program for recycling food scraps and yard trimmings.
The average daily cost for most single family residences for City utility services remains at $3.66 a day.
2013 Net Utility Bill BreakdownEstimates: based on an average single-family residence
COST PER YEAR COST PER DAY
Water $577.95 $1.58
Sewer $385.38 $1.06
Garbage, recycling & environmental programs
$251.40 $0.69
Dikes & drainage $120.31 $0.33
Total cost $1,335.04 $3.66*Source: Fraser Institute
Income spent on non-tax items
59%
Income spent on taxes41%
Income Taxes32%
Social Security, Medical, Hospital
Taxes20%
Sales Taxes15%
Property Taxes (incl. School Taxes etc.)
11%
Profits Taxes9%
Other Taxes
9%
Fuel and Energy Taxes
4%
Friday, March 8, 2013 Richmond Review · Page W3Page W2 · Richmond Review Friday, March 8, 2013
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
$65.8 million capital program
1,291 building permits
206 development applications
128,923 recreation program registrations
9,596 Fire-Rescue calls12,374 Public Works calls for service
Example of Municipal Services provided annually:
3.8¢
4.0¢
4.2¢
4.7¢
4.7¢
4.8¢
5.4¢
5.7¢
5.9¢
6.4¢
15.7¢
20.1¢
Corporate Admin
Finance and Corporate Services
Richmond Public Library
Information Technology
Community Recreation Centres and Oval
Project Development and Facility Management
Roads
Community Services
Transfer to Reserves
Parks Maintenance
Fire Rescue
Police
2013 Breakdown of $1 of Municipal Tax
1.2¢
2.1¢
2.2¢
2.8¢
3.1¢
3.2¢
3.8¢
4.0¢
4.2¢
4.7¢
4.7¢
4.8¢
5.4¢
5.7¢
5.9¢
6.4¢
15.7¢
20.1¢
0.0¢ 5.0¢ 10.0¢ 15.0¢ 20.0¢ 25.0¢
Fiscal including Debt expenditures
Storm Drainage
Law, Emergency & Bylaws
Aquatic Services and Fitness/Wellness
Planning and Development
Engineering and General Public Works
Corporate Admin
Finance and Corporate Services
Richmond Public Library
Information Technology
Community Recreation Centres and Oval
Project Development and Facility Management
Roads
Community Services
Transfer to Reserves
Parks Maintenance
Fire Rescue
Police
2013 Breakdown of $1 of Municipal Tax 2013 Breakdown of $1 of Municipal Tax
2013 Operating BudgetFor 2013, City Council approved a tax increase of 2.98 per cent. Broken down, the tax increase includes the following items:
• 1.39% – to maintain the same level of service from 2012;
• 0.23% – new spending for 2013;
• 0.36% – operating budget impact of Capital plan initiatives; and
• 1.00% – contribution to reserves to support future corporate facilities and community infrastructure.
Community Safety is the largest expense in the operating budget with nearly 36 cents of every tax dollar going to fund police and fire-rescue services.
The only additional spending item in this year’s budget is $300,000 in new ongoing funding toward fire vehicle replacement and $100,000 for the hiring of a full time child care coordinator. Among other tasks, the new childcare coordinator will oversee opening of five new City-owned child care facilities set to open in Richmond over the next few years.
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
Overview of Major Program Areas In 2013 Capital Budget
Infrastructure – $39.4M:The City’s Infrastructure Program funds assets that include: road, drainage and sanitary pump stations, drainage, water, and sanitary mains. For 2013 it encompasses investing $39 million on improving the City’s civic infrastructure.
The 2013 program includes interim Landsdowne Road extension, Nelson Road widening, Bath Slough Pump Station, Bennett West Pump Station, Ainsworth and Aintree Laneway drainage and pavement upgrade.
Equipment – $10.8M:The 2013 equipment program funds machinery and vehicles for Public Works and Fire Rescue Services, computer hardware, software, library collections and food scraps/organics recycling program expansion.
Parks – $5.2M:Richmond is renowned for its high quality parks and recreation facilities, with over 90 parks totaling approximately 1,400 acres. In addition to the City’s parks, Richmond also has a 200-acre recreational trail system.
The 2013 program includes work on Britannia Heritage Shipyard, Railway Avenue Greenway, Terra Nova Park and Thompson Youth Park.
Land – $5.0M:The 2013 land acquisition program relates to the acquisition of real property for the City.
Buildings* – $4.6MThe building program funds major building construction and renovation projects as well as minor facility upgrades and repairs.
For 2013 the building program includes extensive upgrades to the West Richmond Community Centre, rehabilitation work to the Japanese Building at 3811 Moncton Street and project design engineering, and architecture work for a variety of proposed facility projects.
*Does not include major facilities which will be addressed by Council in the near future.
Affordable Housing – $0.7M:Affordable Housing funding is required for coordinating the implementation of the Richmond Affordable Housing Strategy adopted in 2007.
The 2013 program entails a City-owned site designated for the development of affordable housing.
Child Care – $0.1M:To address child care needs, the City’s 2013 Child Care program will provide ongoing capital maintenance costs for facilities such as the Hamilton Child Care Facility and West Cambie Child Care Facility.
Friday, March 8, 2013 Richmond Review · Page W3Page W2 · Richmond Review Friday, March 8, 2013
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
$65.8 million capital program
1,291 building permits
206 development applications
128,923 recreation program registrations
9,596 Fire-Rescue calls12,374 Public Works calls for service
Example of Municipal Services provided annually:
3.8¢
4.0¢
4.2¢
4.7¢
4.7¢
4.8¢
5.4¢
5.7¢
5.9¢
6.4¢
15.7¢
20.1¢
Corporate Admin
Finance and Corporate Services
Richmond Public Library
Information Technology
Community Recreation Centres and Oval
Project Development and Facility Management
Roads
Community Services
Transfer to Reserves
Parks Maintenance
Fire Rescue
Police
2013 Breakdown of $1 of Municipal Tax
1.2¢
2.1¢
2.2¢
2.8¢
3.1¢
3.2¢
3.8¢
4.0¢
4.2¢
4.7¢
4.7¢
4.8¢
5.4¢
5.7¢
5.9¢
6.4¢
15.7¢
20.1¢
0.0¢ 5.0¢ 10.0¢ 15.0¢ 20.0¢ 25.0¢
Fiscal including Debt expenditures
Storm Drainage
Law, Emergency & Bylaws
Aquatic Services and Fitness/Wellness
Planning and Development
Engineering and General Public Works
Corporate Admin
Finance and Corporate Services
Richmond Public Library
Information Technology
Community Recreation Centres and Oval
Project Development and Facility Management
Roads
Community Services
Transfer to Reserves
Parks Maintenance
Fire Rescue
Police
2013 Breakdown of $1 of Municipal Tax 2013 Breakdown of $1 of Municipal Tax
2013 Operating BudgetFor 2013, City Council approved a tax increase of 2.98 per cent. Broken down, the tax increase includes the following items:
• 1.39% – to maintain the same level of service from 2012;
• 0.23% – new spending for 2013;
• 0.36% – operating budget impact of Capital plan initiatives; and
• 1.00% – contribution to reserves to support future corporate facilities and community infrastructure.
Community Safety is the largest expense in the operating budget with nearly 36 cents of every tax dollar going to fund police and fire-rescue services.
The only additional spending item in this year’s budget is $300,000 in new ongoing funding toward fire vehicle replacement and $100,000 for the hiring of a full time child care coordinator. Among other tasks, the new childcare coordinator will oversee opening of five new City-owned child care facilities set to open in Richmond over the next few years.
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
Overview of Major Program Areas In 2013 Capital Budget
Infrastructure – $39.4M:The City’s Infrastructure Program funds assets that include: road, drainage and sanitary pump stations, drainage, water, and sanitary mains. For 2013 it encompasses investing $39 million on improving the City’s civic infrastructure.
The 2013 program includes interim Landsdowne Road extension, Nelson Road widening, Bath Slough Pump Station, Bennett West Pump Station, Ainsworth and Aintree Laneway drainage and pavement upgrade.
Equipment – $10.8M:The 2013 equipment program funds machinery and vehicles for Public Works and Fire Rescue Services, computer hardware, software, library collections and food scraps/organics recycling program expansion.
Parks – $5.2M:Richmond is renowned for its high quality parks and recreation facilities, with over 90 parks totaling approximately 1,400 acres. In addition to the City’s parks, Richmond also has a 200-acre recreational trail system.
The 2013 program includes work on Britannia Heritage Shipyard, Railway Avenue Greenway, Terra Nova Park and Thompson Youth Park.
Land – $5.0M:The 2013 land acquisition program relates to the acquisition of real property for the City.
Buildings* – $4.6MThe building program funds major building construction and renovation projects as well as minor facility upgrades and repairs.
For 2013 the building program includes extensive upgrades to the West Richmond Community Centre, rehabilitation work to the Japanese Building at 3811 Moncton Street and project design engineering, and architecture work for a variety of proposed facility projects.
*Does not include major facilities which will be addressed by Council in the near future.
Affordable Housing – $0.7M:Affordable Housing funding is required for coordinating the implementation of the Richmond Affordable Housing Strategy adopted in 2007.
The 2013 program entails a City-owned site designated for the development of affordable housing.
Child Care – $0.1M:To address child care needs, the City’s 2013 Child Care program will provide ongoing capital maintenance costs for facilities such as the Hamilton Child Care Facility and West Cambie Child Care Facility.
Friday, March 8, 2013 Richmond Review · Page W1Page W4 · Richmond Review Friday, March 8, 2013
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
Why do we prepare 5 Year Financial Plan?The purpose of the 5 Year Financial Plan is to provide a budgetary framework for the City to plan the management of its resources, revenues and expenditures in order to best serve the community. It is meant to ensure the City has the capacity to meet the financial challenges of today and in the future and to maintain appropriate levels of civic services.
The 5 Year Financial Plan is based upon the 2013 Operating, Capital and Utility Budgets, as approved by Council. The remaining four years of the plan are estimates based on Council Policies, economic forecasts for BC and the City’s internal plans. Each year, this rolling plan is reviewed and updated.
The Community Charter requires that Council adopt a 5 Year Financial Plan each year prior to the adoption on or before May 15 of each year and prior to the adoption of the annual Property Tax Bylaw. Council approved the 5 Year Financial Plan for 2013-2017 on February 25.
Copies of the 5 Year Financial Plan and the 2013 Operating, Capital and Utility Budgets are available:• Via the City website at www.richmond.ca (City Hall > Finance, Taxes
• Via printed copy, available at Richmond City Hall - Information Counter, 6911 No. 3 Road or by calling 604-276-4000
Long Term Financial Management StrategyThe Long Term Financial Management Strategy approved by Council is designed to ensure that the City has the financial means to provide for the current and future needs of the community.
Under the Strategy, the City’s goal is to maintain property tax increases at or below the annual increase in the cost of living for the Vancouver region. This ensures the City can maintain existing City levels while allowing for cost increases related to inflation, contractual obligations and other expenses.
The Strategy also calls for an additional one per cent annual tax increase to go towards the City’s various capital reserve funds. These reserve funds ensure the city has sufficient funds available for future corporate facilities and community infrastructural demands.
5 Year Average Tax Increase (2008-2012)
Tax increases in Richmond are on average the lowest out of the comparable cities.
3.25%3.55% 3.65%
4.06%
4.86%
Richmond Surrey Vancouver Burnaby Coquitlam
City of Richmond
Five Year Financial Plan www.richmond.ca
City of Richmond
Five Year Financial Plan www.richmond.ca
Follow the money trailThe average Canadian spends 41 per cent of their income on taxes. Of this, just 11 per cent goes to property taxes. Further, slightly less than half of the property taxes you pay go the City. The remainder is collected on behalf of the Province of BC (for school taxes), Translink for public transit and transportation services, the Metro Vancouver regional district, the BC Assessment authority and others. Ultimately, the City receives about four cents of every tax dollar you pay.
The City is not allowed to budget for a deficit. Thus, the portion of property taxes raised by the City each year is based on the amount of revenue required to end up with a balanced budget with no deficit.
2011 Average Household Tax and Distribution*
Property Taxes make up 11% of the taxes paid by Richmond Residents with half going towards CIty services.
2013 Utility BudgetThe City’s 2013 Utility Budget funds services for water supply, sewage collection and treatment, draining, diking, garbage disposal, recycling, flood protection, grease management and environmental protection.
The City’s total utility budget for 2013 is about $90 million. The bulk of this budget, 45 per cent, is comprised of service fees set by Metro Vancouver regional district for provision of water supply and sewage treatment and disposal. Currently, the region is investing billions of dollars in ensuring our water supply and sewage treatment meet high public health and environmental standards. This has caused the City’s utility costs to increase at an accelerated rate.
This year, the City is introducing two enhanced recycling and waste disposal programs to improve service for residents and support our commitment to divert 70 per cent of waste from landfills by 2015. This includes a new Large Item Pick Up program and a new Green Cart program for recycling food scraps and yard trimmings.
The average daily cost for most single family residences for City utility services remains at $3.66 a day.
2013 Net Utility Bill BreakdownEstimates: based on an average single-family residence
COST PER YEAR COST PER DAY
Water $577.95 $1.58
Sewer $385.38 $1.06
Garbage, recycling & environmental programs
$251.40 $0.69
Dikes & drainage $120.31 $0.33
Total cost $1,335.04 $3.66*Source: Fraser Institute
