Financial Plan + 2020 Budget
City Council approved the Financial Plan and 2020 Budget on December 16, 2019.
On October 28, 2019, the Chief Administrative Officer presented the Proposed Financial Plan + 2020 Budget to Council.
Summary of changes in Non-tax revenue
Non-tax revenue helps offset municipal property taxes for every resident and business owner. Net changes in these items can often by driven by external factors that are beyond the City’s control.
Increases in revenue, such as user fees, positively impact tax rates and provide a greater benefit to citizens; while decreases in revenue, such as fines, negatively impact tax rates and lessen the benefit.
For the 2020 budget year, here is a summary of changes in non-tax revenue:
- $324K increase in sales and user fees from increased admission and membership rates and higher U-Pass revenue.
- $30K increase in licence and permits from anticipated permits issued offset partially by a decrease in business licences.
- $379K decrease in net fine revenue due to a trend in photo radar fines. This does not include the increase in the amount of fine revenue being kept by the Province, which is estimated at $620K.
- $928K increase in franchise fees due to an increase in the local access fee. A franchise fee for electricity was approved by Council (5% - 2019; +2.5% - 2020; +2.5% - 2021) as a mechanism to ensure that tax-exempt properties contribute to municipal services. All revenue generated from the franchise fees is used to directly offset property taxes.
- $120K increase in net interest income based on rates, investment base and increased investments in long-term instruments.
Non-tax revenue is just one of the avenues that Council uses to help inform their decision-making as they deliberate the proposed 2020 municipal budget.
Capital projects that have been identified as RMR are critical to sustain current service levels, required as part of detailed lifecycle plans, and are essential for rehabilitation of existing equipment and infrastructure.
On June 17, 2019, Council approved the following recommendations:
- That the 10-Year Municipal Repair, Maintain, Replace (RMR) Capital Plan, provided as an attachment to the June 17, 2019 agenda report titled “Approval of 10-Year Municipal RMR Capital Plan” be approved.
- That the following postponed motion be approved: PM-20-042 – “That the 2020 Municipal Repair, Maintain, Replace (RMR) Capital Budget of 29 capital RMR projects be funded in the amount of $39,571,700.
On June 24, 2019, Council approved the following recommendation:
- That effective for the 2020, 2021 and 2022 budget, the equivalent of a 1.50% property tax increase be included in the municipal tax requirement and specifically targeted to capital reserves to support the repair, maintenance and replacement of existing capital assets.
FOR MORE INFORMATION:
HOW CAN YOU GET INVOLVED?
- Online Budget Engagement Results
- World Café Discussion Summary Report
- Functional Budget Presentations - Nov 7 | 14, 2019
- Council Budget Deliberations - Nov 21 | 26 | 28, 2019
- Council considers the Proposed Budget for Approval - Dec 16, 2019
Last edited: March 10, 2020