2018 NRRM Council Preliminary Budget January 31, 2018
2018 Budget Process On January 31, 2018, Regional Council directed staff to move forward with public engagement based on the preliminary budget presented. The full preliminary budget is available online at www.NorthernRockies.ca/engage This presentation has been prepared to assist in reviewing the budget and includes information to help navigate though the municipal budget document and presents material critical to understanding how municipal budgeting and taxation work. 2018 NRRM Preliminary Budget Presentation | 2
2018 Budget Process In addition to this online presentation, NRRM Council and Staff will be hosting an open house on February 22, 2018 from 2:00 to 7:00 pm. If you are unable to make it to the open house, you can still submit your comments and any questions via e-mail to admin@northernrockies.ca. The final 2018 Budget Meeting is scheduled for Saturday, March 17, 2018 @ 9:00 am at Municipal Hall. Council will be provided the submitted public comments prior to the final budget meeting. 2018 NRRM Preliminary Budget Presentation | 3
2018 Budget Open House Residents and businesses are invited to participate in the upcoming open house to provide input into the 2018 Northern Rockies Regional Municipality capital and operating budgets. Thursday, February 22, 2018 2:00 pm to 7:00 pm Northern Rockies Regional Recreation Centre Can’t make it to the open house? Send your comments or questions via e-mail by Monday, February 26, 2018 to admin@northernrockies.ca. 2018 NRRM Preliminary Budget Presentation | 4
2018 Budget Process Public Council Preliminary Comment Budget Public Final Budget Budget and Preparation Comment Meeting Presentation Feedback Review Period Jan 31 Open until March 17 Feb 26 2018 NRRM Preliminary Budget Presentation | 5
“ The goal of a municipal budget is to allocate resources to public services and projects, and balance the resources drawn from the community against the demands for services and projects, while keeping municipal taxes within acceptable limits and ensuring ” that services are sufficient to allow economic growth and social stability. B LAND & R UBIN : 1997 Part I – the foundation
A municipal budget serves as a policy document, financial plan, and operations guide to achieve Municipal priorities as identified by Council. The budget consists of operating & capital revenues and expenses as well outlines council direction regarding financial matters such as reserve levels, grant usage, and debt servicing. Purpose of the Budget 2018 NRRM Preliminary Budget Presentation | 7
When reviewing this presentation and the preliminary budget document, the following terms may be of assistance. Capital Budget : the budget attached to Operating Budget : the budget for expected revenues and expenditures based on daily major maintenance, special projects, and municipal activities. capital projects. User charges and fees : fees imposed on services Municipal Property Tax Levy : the tax bill issued intended to recover all or part of the costs to home owners and businesses for owning real associated with providing the service (for property in the Municipality. This revenue is used example: Aquatic Centre admission fees, permit to fund programs and services for the fees, etc.) Municipality. Budget Terminology 2018 NRRM Preliminary Budget Presentation | 8
Annual Infrastructure Development Plan (AIDP) : Infrastructure Development Contribution Agreement (IDCA) : In 2013 the NRRM was The AIDP is the annual infrastructure plan that successful in negotiating the IDCA, a 20 year must be submitted to the Province as part of the funding agreement with the Province of BC to IDCA Agreement. fund the renewal and replacement of critical infrastructure. Budget Terminology 2018 NRRM Preliminary Budget Presentation | 9
Property Taxes Levying property tax is the main method for a local government to collect the funds required to provide a variety of services such water, sewer, fire protection, streetlights, airport, cemetery and many more. Some services and the level of service provided are mandated by legislation while other services are based on the needs and wants of the specific community. In addition to collecting taxes to pay for Municipal services, the NRRM collects taxes on behalf of other public authorities such as School Taxes. Once collected, that tax revenue is then remitted to the other public authorities. 2018 NRRM Preliminary Budget Presentation | 10
What is the tax levy and how is it calculated? In basic terms, the levy is calculated as the difference between approved estimated expenses and other anticipated revenue (other than taxation) Expenses less Revenue = Tax Levy 2018 NRRM Preliminary Budget Presentation | 11
What is property assessment? An assessment is the determination of a property's market value, classification and applicable exemptions each year. BC Assessment determines the current assessment roll property assessments reflecting their physical condition and permitted use as of October 31 , using a valuation date of July 1 , in the year immediately prior to the annual assessment roll. For more information about BC Assessment works, visit https://info.bcassessment.ca/about-us/how-BC-Assessment-works. 2018 NRRM Preliminary Budget Presentation | 12
Relationship Between Assessment and Taxation Each municipality is responsible for ensuring that each property owner pays his or her share of taxes. Property assessment is the method used to distribute the tax burden among property owners in a municipality. A common misconception is that a significant change in your assessed value will result in a proportionately significant change in your property taxes. The most important factor is not how much your assessed value has changed, but how your assessed value has changed relative to the average change for your property class in your municipality or taxing jurisdiction. 2018 NRRM Preliminary Budget Presentation | 13
Property Classes in the NRRM BC Assessment places property in one or more of nine classes, based on the property’s type or use. Within the NRRM, we have the following property classes: Class 1: Residential Class 2: Utilities Class 4: Major Industry Class 5: Light Industry Class 6: Business Class 8: Recreation/Non-profit Class 9: Farm 2018 NRRM Preliminary Budget Presentation | 14
2018 Assessment Increase/(Decrease) BC Assessment Completed Roll BC Assessment Jan 2018 Revised Roll 2017 $ % Residential 329,385,086 360,083,211 -30,698,125 -9% Business 178,239,392 214,209,292 -35,969,900 -17% Industry 1,408,319,849 1,441,973,546 -33,653,697 -2% Other 1,562,759 1,620,865 -58,106 -4% TOTAL 1,917,507,086 2,017,886,914 -100,379,828 -5% 2018 NRRM Preliminary Budget Presentation | 15
Bringing Assessment and Taxation Together Local governments use the assessment base of the entire municipality and the required taxation amount to determine what the tax rates will be the coming year for the various property classes. Revenue Required (Tax Levy) = Tax Rate Assessment 2018 NRRM Preliminary Budget Presentation | 16
What does it all mean? A couple key points to remember: While assessments may increase and decrease, the costs of providing Municipal services do not significantly change unless service levels change. A budget can also change from year to year based on capital projects, debt servicing, reserves and finance charges. This engagement process is an opportunity to have your say, e-mail comments or questions to admin@northernrockies.ca. All submissions will form part of the budget review process. 2018 NRRM Preliminary Budget Presentation | 17
The following pages summarize the 2018 Preliminary Budget presented to Council on January 31, 2018. To review the entire preliminary budget in detail, please visit www.NorthernRockies.ca/engage. Part II – the numbers
In preparation of the 2018 Preliminary Budget, the following guiding principles were used: 2018 Budget ▪ Maintain existing service levels Guiding ▪ Continue to identify and incorporate operational efficiencies Principles ▪ Improve customer service ▪ Continue investment into priority infrastructure through the NRRM contributions to the IDCA Program ▪ Creating enhanced transparency and accountability 2018 NRRM Preliminary Budget Presentation | 19 2018 NRRM Preliminary Budget Presentation | 19
Maintains current Municipal service levels Includes capital expenditure sufficient to maintain 2018 $10M IDCA Provincial Funding Preliminary Results in a 5.2% decrease in total municipal tax Budget - levy over 2017 ($1.2M) Outcomes Carry forward of $10.5M for capital and major maintenance projects continuing into 2018 Pay down of $2.2M on temporary borrowing 2018 NRRM Preliminary Budget Presentation | 20 2018 NRRM Preliminary Budget Presentation | 20
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