2013 budget highlights - citizen input guide

2013 Budget Highlights

About Port Coquitlam

Port Coquitlam is a community of 57,000 with a strategic location in Metro Vancouver, a healthy base of businesses, new commercial and industrial areas, 271 hectares of parkland including the 25-km Traboulay PoCo Trail, well-established neighbourhoods, and a strong sense of community spirit known as PoCo Pride.

It also has a growing reputation for progressive governance and for its innovative approaches to managing waste, sustainable development and using technology to engage the community.

Since it was incorporated on March 7, 1913, Port Coquitlam has experienced signifi cant growth and has strived to remain relevant to the changing times.

At the same time, the City has retained its small-town charm, its authentic historic downtown core, and a tradition of community involvement that sets it apart from other urban cities.

Port Coquitlam strives to be a complete community that balances social, environmental and economic values while fulfi lling the priorities set by our citizens.

We believe our engaged and active citizens make our community a better place. We provide and support a variety of opportunities for citizen involvement, including volunteering, encouraging participation in community events, and seeking public input and feedback on a variety of City decisions and activities. Our annual public consultation on the fi nancial plan is an example of our efforts to engage the community in our City’s governance.

Vision:

Mission:

Port Coquitlam is a happy, vibrant, safe community with healthy, engaged residents and thriving businesses, supported by sustainable resources and services.

We strive to do it right by researching, planning, building and executing well-balanced solutions.

City Services

City Council is the legislative body that represents the citizens of Port Coquitlam, provides leadership, and establishes policies and priorities for Port Coquitlam’s municipal government.

Council reviews and establishes budget levels for civic operations and capital expenditures.

Reporting directly to Council is the Chief Administrative Offi cer (CAO), the coordinating link between Council and staff.

The administration of the City is organized into seven departments, led by directors who report to the CAO.

City departments include Administration, Corporate Services, Development Services, Engineering & Operations, Fire & Emergency Services, and Parks & Recreation. Policing services are provided by the Coquitlam RCMP.

1Info and feedback: www.portcoquitlam.ca/budget

Introduction

This booklet contains information on the proposed 2013-2017 Financial Plan. Council and staff request input from citizens on the proposed plan in the following areas:

• Service level improvements• Savings and service level changes• Planned capital projects• Overall property tax impact

Public Consultation Period: February 4-15We encourage our citizens to provide input on the 2013-2017 Financial Plan during the consultation period from February 4-15.

Feedback may be provided:

• Through the Budget Suggestion Box online at www.portcoquitlam.ca/budget,

• To the Manager of Financial Services, at [email protected] or 604.927.5443,

• In writing to City Hall, 2580 Shaughnessy Street, Port Coquitlam, V3C 2A8,

• By fi lling out the detachable comment sheet at the back of this booklet and either dropping it off to City Hall or faxing it to 604.927.5403.

Following the consultation period, public feedback will be reported to Council for consideration in their fi nal deliberations sessions on the proposed plan.

Committee Meeting: March 4The public may attend and provide comment at the meeting of the Finance and Intergovernmental Committee (which includes all members of Council) on March 4, 4:30 pm in the Heritage Room on the third fl oor of City Hall.

Opportunities for Feedback

The City updates its fi ve-year fi nancial plan every year to ensure the City’s fi nances are managed responsibly and refl ect the priorities identifi ed by the community.

The fi nancial plan, which includes the current year’s budget and taxes, sets out the planned services and initiatives for the next fi ve years and how the City will pay for them.

By law, B.C. municipalities must:

• prepare a fi ve-year fi nancial plan each year,

• identify proposed expenditures, funding sources and transfers to and between funds,

• engage the public in a consultation process before adopting the plan, and

• have the plan adopted by City Council by May 15.

Having a fi nancial plan provides City staff with clear direction and the authority to pay for services for Port Coquitlam citizens, and ensures City staff are accountable to the citizens.

About the Financial Plan

The public consultation period for the 2013-2017 Financial Plan is February 4-15

2013 Budget Highlights2

Budget Development Process

Role of the Corporate Strategic Plan

Port Coquitlam’s Vision 2020 Corporate Strategic Plan was adopted in June 2011. The plan outlines the community’s vision for the future and will guide the City’s policy, operations and fi nancial decisions through to 2020.

The City’s budget decisions are aligned with Vision 2020’s fi ve strategic outcomes:

• Sustainable Future – this outcome appreciates the need to sustain city services, the environment and the community into the future. It is intended to leave for future generations the means to maintain the services provided today, and to sustain our natural setting and social needs.

• Sense of Community – this outcome appreciates our community spirit. A friendly face on the street, healthy residents and community celebrations identify us and make our City a happy place to live, work and play.

• Economic Strength – this outcome appreciates the business community. It recognizes the importance of the businesses in the City and the benefi ts realized by our residents and businesses.

• Community Well-being – these are the services provided by the City to the community. Protective services, utilities and parks are important to our quality of life.

• Strategic Service Delivery – this outcome focuses on the delivery of our municipal services. A balanced approach ensures the service delivery model supports staff and the community.

That the City work towards full annual funding of operations, maintenance, growth and asset depletion applying the following measures:

• Limit addition of new services or programs for the next fi ve years.

• Apply only sustainable service and program cuts to reduce annual tax rate increases.

• Set funds aside for long term fi nancial needs including the infrastructure gap, growth and opportunities.

• Pursue revenues to offset funding needs.• Apply new revenues to reduce tax rates

only if assured, sustainable, stable and incremental.

• Maintain transparency and accountability to the community by communicating developments with the strategy at each Committee and Council session on the budget.

That once the service levels are set, the budget contains the necessary infl ationary increases to maintain the remaining services.

Corporate Financial Goal


Budget Development Process

Drivers Affecting the Financial Plan

Items impacting the proposed tax and utility rate:

• Purchase of water supply and sewer discharge services from the Metro Vancouver resulted in an increase in water rates of 6.1% and an increase in sewer charges of 3.38%.

• Staff salary wages and benefi ts are currently under negotiation with International Association of Fire Fighters (IAFF) and Canadian Union of Public Employees (CUPE).

• Policing costs, including civilian support, are expected to increase by $584,300 to maintain the current police service levels.

• Infl ation is averaging at 2.1%.

Council also set the following direction:

• That the primary focus of the 2013 Budget

be on improving community safety through investment in protective services.

• That net cost increases for infl ation, service level improvements, capital projects, and infrastructure requirements be funded from a balance of services level adjustments and rate increases, as communicated in the 2012 Ipsos Reid survey.

• That the capital program is comprised of infrastructure renewal and replacement projects in 2013 to reduce the growing infrastructure gap (see below).

• That new and growth related capital projects be identifi ed, evaluated, prioritized and considered for implementation in future years as funding sources are leveraged and secured.

Future Outlook

The Corporate Strategic Plan’s vision for the future is only possible if we leverage our strengths and address our challenges.

The City’s major fi nancial challenge is the “infrastructure gap” – the difference between the reserves set aside to fund maintenance and replacement and the current replacement cost of the depreciated portion of City assets. The City estimates the current gap at $330 million.

This gap is not unique to our City, as many cities around the world have not set aside suffi cient funds for replacement of infrastructure assets as they deplete.

The City has begun to set aside funds for long term needs and our reserves are building.

Port Coquitlam has adopted a proactive and fi nancially prudent strategy of funding long-term asset replacement to avoid the much higher costs of repairs, maintenance and replacement should

funding be delayed and assets be replaced past the point of optimum renewal.

City funds are also required to support today’s needs for our multi-faceted municipal services. Pressures from the community highlight the need for upgrades to existing facilities and expansion of services for growth.

In 2013, the decision packages for new projects address current community needs and the need for the City to remain current in its technology. There is still much to do as the 2013-2017 Financial Plan continues to move the City in the right direction.

New RevenueThe City is committed to seeking revenue opportunities to reduce the tax impact on property owners. To that end, we have launched a Revenue Task Force that is anticipated to have a positive impact on revenues in 2014 and beyond.

Did you know? Cities only have three main sources of revenue: property taxes, utility fees and user fees. Taxes make up 93% of City revenue.


Tax Impact

The tables below show how the proposed plan will affect the average Port Coquitlam home.

The water, sewer and solid waste (garbage/green cart) levies are flat annual fees and will be the same for each single-family dwelling. Townhouse and apartments have lower water and sewer rates than single-family dwellings, and they arrange their own garbage collection with private contractors.

For this purpose, the average home assessed value is the value of a “representative house” in 2012 as defined by the Ministry of Community Services.

Property taxes for the average single-family dwelling are expected to cost $50.65 (2.63%) more than in 2012, plus $19.29 (1%) for future infrastructure replacement and renewal.

The total increase is $53.48 for the average townhouse and $31.38 for apartments.

The proposed property tax increase will be applied equally on a percentage basis to all property classifications.

Increases for the water and sewer levies are noted in the chart below. For the fourth year, no increase is proposed to the solid waste levy because diversion of waste away from the landfill has helped to offset rising garbage disposal fees.

Utility User FeesWater and sewer user fees (including those relating to metered rates and secondary suites) are set and approved by Council prior to the approval of the financial plan in order to meet billing deadlines in early 2013.

When establishing these user fees, Council considers the City’s Cost Recovery Policy, which states user fees are to be set to recover the full cost of services, except where Council determines a subsidy is in the general public interest.

Average Single-family Dwelling Assessed at $526,175

2012 2013 $ ChangeProperty Taxes $1,927.54 $1,997.48 $69.94 Water Levy $393.00 $417.00 $24.00 Sewer Levy $296.00 $306.00 $10.00 Solid Waste Levy $176.30 $176.30 $ - Total $2,792.84 $2,896.78 $103.94

Average Townhouse Assessed at $385,444

2012 2013 $ ChangeProperty Taxes $1,473.98 $1,527.46 $53.48 Water Levy $345.00 $391.00 $46.00 Sewer Levy $263.00 $287.00 $24.00 Total $2,081.98 $2,205.46 $123.48

Average Apartment Assessed at $230,706

2012 2013 $ ChangeProperty Taxes $864.87 $896.25 $31.38 Water Levy $328.00 $371.00 $43.00 Sewer Levy $249.00 $272.00 $23.00 Total $1,441.87 $1,539.25 $97.38


Overview

The 2013 budget was built on three main outcomes. The fi rst was to invest in community safety by supporting additional fi refi ghters and police offi cers. The second was the need to

maintain reasonable tax rate increases, and the third was the need to address the City’s aging infrastructure.

Service Improvements

$ Overall Increase/Decrease

$/SFD Increase/Decrease

%/SFD Increase/Decrease

Infl ationary $1,393,000 $52.08 2.70%Service improvements $617,666 $23.14 1.20%Savings and service level changes -$655,925 -$24.57 -1.27%Subtotal $1,354,741 $50.65 2.63%Infrastructure replacement levy $515,000 $19.29 1.00%Total $1,869,741 $69.94 3.63%

SFD = single family dwelling

SFD = single family dwelling

The following service improvements are proposed:

2013 cost $ cost /SFD % cost/SFDFire suppression staffi ng – six additional fi refi ghters to improve community safety

$293,666 $11.00 0.58%

Police offi cers – two new police offi cers to improve community safety

$283,700 $10.63 0.55%

Electronic mobile fi re inspection system – to improve inspection effi ciency and productivity

$33,100 $1.24 0.06%

Economic development – activities to support and promote local businesses

$10,000 $0.37 0.02%

Advertising and sponsorship sales -$2,800 -$0.10 -0.01%Total $617,666 $23.14 1.20%


Savings and Service Level Changes

More than $550,000 in savings and service level changes are proposed in order to balance rising costs with community priorities. Departments were asked to propose effi ciencies that could be sustained over time.

The City recognizes that some of the proposed service level changes will have a visible impact

on services to the community. However, these changes are being considered to reduce the increase in tax rates required to meet community needs.

Your feedback on the proposed changes is vital to Council balancing community needs with tax increases.

Continued on next page.

2013 savings

$ tax reduction

/SFD

% tax reduction/

SFDAdministrationCorporate planning and team building -$5,000 -0.19 -0.01%CAO administration budget -$17,000 -0.64 -0.03%Disability management effi ciencies -$8,500 -0.32 -0.02%Human Resources effi ciencies -$33,000 -1.25 -0.06%Engineering & OperationsReduce homeless camp clean-up costs resulting from quicker response times

-$1,400 -0.05 0.00%

Reduce replacement costs by using new technology for sidewalk repairs

-$11,800 -0.44 -0.02%

Reduce maintenance costs through use of asphalt millings for lanes

-$2,000 -0.07 0.00%

Reduce hydro use from LED streetlights and traffi c signals -$4,000 -0.15 -0.01%Reduce annual streetlight pole replacement through use of galvanized poles – longer lifespan

-$26,900 -1.01 -0.04%

Improve printing and reduce production costs through use of new sign plotter (printer)

-$12,000 -0.45 -0.02%

Reduce ditch cleaning expenses through use of strategic clean-out areas

-$4,000 -0.15 -0.01%

Reduce ditch maintenance from Broadway Street project -$3,000 -0.11 -0.01%Reduce barge ramp maintenance by paving -$12,700 -$0.48 -0.02%Reduce barricade purchases -$3,000 -$0.11 -0.01%Parks & RecreationReview City graffi ti removal services/standards and issue a request for proposals to reduce costs

-$30,000 -$1.12 -0.05%

Delete vacant part-time Active Living & Sport Rec Program Assistant position

-$10,000 -$0.37 -0.02%

Install automated chemical dispensing system at recreation facilities

-$4,000 -$0.15 -0.01%

Provide lifesaving course in-house -$10,000 -$0.37 -0.02%

Proposed Savings / Effi ciencies


Savings and Service Level Changes

2013 savings

$ tax reduction

/SFD

% tax reduction/

SFDParks & Recreation (cont.)Tender landscaping maintenance for Coast Meridian Overpass green spaces

-$5,000 -$0.19 -0.01%

Adjust technical maintenance staff hours -$5,000 -$0.19 -0.01%Reduce street tree watering from fi ve days per week to three days per week in June, July and August

-$9,000 -$0.34 -0.02%

Total -$217,300 -8.15 -0.40%

Proposed Savings / Effi ciencies (cont.)

2013 savings

$ tax reduction

/SFD

% tax reduction/

SFDCorporate ServicesInsurance for potential legal claims against the City -$25,000 -0.94 -0.05%Eliminate vector (pest) control services for private properties -$34,000 -1.27 -0.07%Development ServicesReduce use of consultant expertise and analysis -$35,000 -1.31 -0.07%Engineering & Operations Extend street sign replacement from 7 to 8 years -$28,625 -1.07 -0.06%Change in annual funding for environmental projects -$80,000 -$3.00 -0.15%Reduce annual funding for equipment fl eet -$102,000 -$3.82 -0.20%Parks & RecreationIncrease maintenance fees for City-managed row housing to address shortfall in maintenance costs

-$6,000 -$0.22 -0.01%

Reduce ball diamond grooming – twice/week to once/week -$23,000 -$0.86 -0.04%Close Hyde Creek Recreation Centre on Sundays at 6 pm – currently closes at 9 pm

-$35,000 -$1.31 -0.07%

Reduce maintenance staff hours at Port Coquitlam Recreation Complex

-$20,000 -$0.75 -0.04%

Eliminate casual recreation leader staff hours for Snow Angels volunteer program

-$3,000 -$0.11 -0.01%

Replace spring and summer contracted supervision of bike and skate parks with volunteers

-$15,000 -$0.56 -0.03%

Reduce sick/holiday coverage in the administration section -$3,000 -$0.11 -0.01%Reduction in Leisure Guide production/delivery -$13,000 -$0.49 -0.03%Reduce weight room staffi ng at Hyde Creek Rec Centre by 15 hours per week (Monday-Friday, 8-10 am and 9-10 pm)

-$16,000 -$0.60 -0.03%

Total -$438,625 -16.42 -0.87%

Proposed Service Level Changes


Capital Projects

The 2013 Capital Program supports infrastructure renewal, community safety, sports, culture and the environment.

Along with infrastructure upgrades and renewal in transportation, water, sewer, equipment and facilities, highlights of this year’s program include:

• Exploring and designing a new Shaughnessy Street pedestrian and cyclist underpass,

• Various trail and athletic park upgrades, • Intersection street lighting improvements, and• Traffi c and pedestrian signal enhancements at

several intersections.

A tax increase of $19.29 per single-family dwelling (1%) is also proposed to address the City’s future infrastructure replacement needs. This will help the City achieve its goal of long-term fi nancial stability. See page 3 for more about this topic.

Project / Program 2013 Projects Equipment $1,872,400Transportation Infrastructure $3,245,000Sanitary Infrastructure $465,300Water Infrastructure $1,813,300Information Technology Infrastructure

$1,145,000

Parks Infrastructure $1,348,200Buildings $186,500Land $219,940Total $10,295,640

EquipmentEngineering & Operations Fleet Replacement RP * $921,300

Special Public Works Reserve Projects RP $35,000

Equipment Replacement RP $145,700 Projects to be determined RP $10,400 Subtotal $1,112,400

Transportation InfrastructureRoad Rehabilitation - Capital Improvements RP $2,700,000

Traffi c & Pedestrian Signal Improvements RP $190,000

Transportation Infrastructure upgrade RN * $200,000 Shaughnessy Street Pedestrian/Cyclist Underpass New $125,000

Intersection Street Lighting Improvements RN $30,000

Subtotal $3,245,000 Sanitary Infrastructure

New Public Works Equipment New $10,000 Sewer Main Repair at Various Locations RN $150,000

Sewer Pump Station Upgrading Program RN $305,300

Subtotal $465,300 Water Infrastructure

New Public Works Equipment New $10,000 Water Mains - Cast Iron & AC Replacements RP $1,400,000

High Pressure Water Main Construction RN $403,300

Subtotal $1,813,300 Information Technology Infrastructure

Servers RN $30,000 Personal Computers RP $60,000 Storage RP $60,000 Network RP $50,000 Fiber Optic Network RP $100,000 Voice Over Internet Protocol RP $10,000 Terry Fox Library Wiring RN $35,000 Software Cayenta RN $800,000 Subtotal $1,145,000

Parks InfrastructurePark & Playground Upgrades and Renewals RN $371,700

Athletic Field Upgrades RN $845,000 Trail Construction & Upgrades RN $131,500 Subtotal $1,348,200

BuildingsBuilding Maintenance RP $186,500 Subtotal $186,500

FireFleet replacement RP $700,000 Equipment RP $60,000 Subtotal $760,000

LandTotal Land New $219,940 Subtotal $219,940Total Capital Projects $10,295,640

* RN = renewal RP = replacement

2013 Capital Projects

Capital Program Overview


The Government Finance Offi cers Association of the United States and Canada (GFOA) has established the Distinguished Budget Presentation Award to encourage governments to prepare budget documents of the highest quality to meet the needs of decision-makers and residents. Each budget document submitted is evaluated using a comprehensive evaluation checklist and those which are judged profi cient receive the award.

The City received the Distinguished Budget Presentation Award for the 2012-2016 Financial Plan for the fi fteenth consecutive

year. The City believes our budget process continues to conform to program requirements and will be submitting the current budget

for consideration.

Budget Best Practices

Your Input is Important

Thank you for taking the time to review the proposed 2013-2017 Financial Plan. Your feedback will be critical in the City’s fi nal deliberations of the plan.

A detachable comment sheet has been provided on the next page for your convenience. Alternatively, please review the feedback options provided on page 1.

Key Dates

Public consultation on proposed 2013-2017 Financial Plan

February 4-15

Meeting of the Finance and Intergovernmental Committee

March 4

Financial Plan Bylaw adoption March 25 and April 8

More Information

If you have any further questions, please contact the City’s Manager of Financial Services at [email protected] or 604.927.5443.

21

Comment Sheet

1. Do you feel that overall, you get good value for your tax dollars in Port Coquitlam?

Excellent Good AdequateNeeds

Improvement

Overall Services ❐ ❐ ❐ ❐Water and Sewer ❐ ❐ ❐ ❐Roads ❐ ❐ ❐ ❐Garbage, Recycling and Green Cart ❐ ❐ ❐ ❐Fire Services ❐ ❐ ❐ ❐Police Services ❐ ❐ ❐ ❐Parks Leisure and Cultural ❐ ❐ ❐ ❐Development Services ❐ ❐ ❐ ❐

2. If you could reduce or eliminate one service currently provided by the City in exchange for lower taxes, what would it be and why?

3. If you could improve one service currently provided by the City, what would it be and why?

4. How much more in taxes are you willing to pay for the improvement you suggested in #3? Please indicate $ per year.

Continued on reverse

Please provide your comments, then detach the page and submit to the City (see back of booklet for submission information). Additional question and comment space are on the reverse.

2013 budget highlights - citizen input guide

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