Special Council Meeting - Dec. 10, 2020

Special Council Meeting

Thursday, December 10, 2020

Draft 2021 to 2025 Financial Plan presented to Council

Council gave first reading to the Draft 2021 to 2025 Financial Plan which comprised of reductions in operating and capital expenditures forecasting a decrease in the proposed 3.75 per cent taxation rate and consideration of a one per cent Infrastructure Levy. The preliminary budget will be updated and presented to the public for input in late January or early February. Subscribe for updates at westkelownacity.ca/subscribe.

Summary of pre-budget deliberations

Prior to Council’s budget deliberations and reductions, the draft five-year financial plan projected a municipal tax increase of up to 3.75 per cent, and a new one per cent Infrastructure Levy.

• At this pre-budget deliberation percentage, it would result in approximately $54, or about $4.50 per month, per average single-family household assessed at $637,000.
  • The 3.7 per cent increase covers operational requirements for 2020, as the City reduced the tax increase to 2.8 per cent to reduce the financial burden to the community during COVID-19, plus operational needs for 2021.
  • The 2.8 percent increase in 2020 was required to cover a full year’s wages of eight full time firefighters, whom the City hired in the second half of 2019.
• If approved, the proposed Infrastructure Levy will be an additional $20 for the year on the average house or $1.67 per month.
  • The levy will enable the City to move forward with sidewalks and bicycling infrastructure improvements that residents have identified in successive Citizens Surveys.
• Operating expenses for all programs and services for 2021 are $77.6 million with the largest portions for protective services, including fire, rescue and policing at $16.3 million, and water, sewer, solid waste and recycling at $15.7 million.
• To balance the budget and maintain services, the City must collect equal revenues of $77.6 million, which will include taxes of $36.5 million and fees for services and utilities of $35.1 million, plus other sources such as the federal/provincial COVID-19 Safe Restart Grant.

Capital plan summarized

The Capital Plan totals $40.8 million for 2021 including:

• Rose Valley Water Treatment Plant borrowing at $23.5 million as approved through a Local Area Service Subject to Petition Against process in summer 2020
• Transfer to reserves – $8.5 million
• Shannon Lake and Bartley Roads intersection improvements - $3.4 million with $1.3 million from reserves and $2.13 million from DCCs
• Roundabout at Gellatly and Carrington Roads – $2.5 million, with $695,000 from reserves and $1.8 million from development cost charges
• Site feasibility and design for City Hall – $2 million
• Fire Services equipment including breathing apparatus – $1.2 million.
• Road Rehabilitation and Pedestrian Infrastructure Improvement Programs – $1.2 million
• Ammonia Chiller Replacement for Jim Lind Arena and Royal LePage Place – $450,000

Grants in Aid considered in January

Council approved in principle the 2021 Grants in Aid but will deliberate the requests in January.

Next steps

The updated draft five-year financial plan will be brought forward to Council in January with public engagement to occur in late January or early February. Visit westkelownacity.ca/budget for the most up to date information on the City’s budget.