sparwood 2019-2023 financial plan presentation · fernie crowsnest pass elkford sparwood assessed...

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District of Sparwood 2019-2023 FINANCIAL PLAN Public Consultation Meeting March 20, 2019 Presented by: Michèle Schalekamp, CPA, CMA Introduce members of Council and Senior Management team. 1

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Page 1: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

District of Sparwood2019-2023 FINANCIAL PLAN

Public Consultation MeetingMarch 20, 2019

Presented by:Michèle Schalekamp, CPA, CMA

Introduce members of Council and Senior Management team.

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Page 2: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Introduction

Tax Base

Operating Budget

Project Funding

Capital Budget

Public Consultation Meeting

Agenda

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Page 3: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Improve the efficiency, transparency and public involvement in the budget process

Ensure the public understands and supports the direction of Council

Why are we here?

Community Charter – Section 166

“A Council must undertake a process of public consultation regarding the proposed financial plan before it is adopted”

We are here because Section 166 of British Columbia’s Community Charter states that we must have public consultation regarding the proposed financial plan for the year, this one formal meeting. This gives the public an opportunity to see what major projects are planned for the upcoming year and what their estimated costs will be. This also gives the public an opportunity to provide feedback whether it be positive or negative, as both can be useful.

During the early part of the year before the current financial plan is adopted, we operate under the authority of the financial plan adopted in the previous year, which makes provision for operations in a 5 year period. This presentation will deal with operations in an overview only.

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Page 4: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Sustainability is defined as:

“Meeting the needs of the present

without compromising the ability

of future generations to meet their needs”

Paraphrased from the Brundtland Commission

In order that we remain aware of future needs we review the effects of the capital and the reserve plans out to 20 years.

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Page 5: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Official Community Plan (OCP)

Sparwood undertook to renew their Official Community Plan (OCP) starting in 2013 and the OCP bylaw was adopted in 2015.

This plan is the formal communication from the community on where they want to be in the future.

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Page 6: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Strategic Plan

With the adoption of the Official Community Plan, strategic planning is undertaken. During strategic planning we chart a course that is intended to lead to the goals set by the Official Community Plan.

As financial plan projects are brought forward for consideration, they will be assessed on how well they head in the direction set by the Strategic Plan. Some items will be more concerned with keeping the District operating effectively and will be neutral in relation to the Strategic Plan. However, some proposals may conflict with the Strategic Plan and should be reconsidered. This is especially true of capital items, which once built or purchased may serve to frustrate the goals set by the OCP for many years.

Local government operations gather a significant momentum and just like an ocean liner cannot stop or change direction very quickly. Our present course may already be heading in the general direction that the new Strategic Plan will identify, so a major change of direction might not be needed. It may take one or two budget cycles before a shift of direction is seen.

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Page 7: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Council’s 2019 - 2023 Corporate Strategic Themes

Economic Diversity

Community Lifestyle

Mining Industry Impact

After the October 2018 election, Council completed a strategic planning session in February 2019 to determine the strategic direction for Sparwood for the next four year.

Three clear corporate strategic themes emerged from the session:

- Economic diversity

- Community lifestyle

- Mining industry impact

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Page 8: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2018 Tax Base

The following slides are to give you an idea of where all of the taxes that are collected get distributed and who is paying. Sparwood does not get to keep everything it collects!

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Page 9: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Allocation of Sparwood Property Taxes

$12.7M taxes collected

57% available for municipal use

It should be noted that not all of the taxes that are paid to the District of Sparwood belong to the District.

This chart shows that of the total 2018 taxes collected in Sparwood ($12.7M) only 57% ($7,325,000) is available for the District’s use.

2018 Allocation of Sparwood Taxes

EV Mine Pool - Fernie, Elkford & Area A 2,002,342

EV Mine Pool - Sparwood 3,118,869

District of Sparwood General 4,206,802

Regional Hospital District 175,130

RDEK - general 238,762

EValley Waste - closure & debt 465,348

School taxation 2,117,858

Police 329,290

BCAA & MFA 110,355

TOTAL $12,764,756

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Page 10: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Sparwood Tax Share by Class

Mine Pool – 46.8%

Residential – 24.6%

Business – 12.4%

The Mine Pool taxes will increase or decrease in future years by the lesser of CPI and the average tax increases in the Elk Valley.

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Page 11: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Keeping up with the neighbours – 2018(Selected 1200 square foot home)

Fernie Crowsnest Pass Elkford Sparwood

Assessed value $429,000 $293,000 $316,700 $309,700

Tax 3,324.03 2,887.20 2,762.70 2,375.42

Utilities 704.08 1,080.00 483.75 741.84

Total 4,028.11 3,967.20 3,246.45 3,117.26

To see how our taxes and utilities compare with surrounding communities we have been tracking four similar homes in these communities from year to year. Sparwood’s total taxes and fees continue to be reasonable in comparison to its neighbours.

Please note that these are not always perfectly comparable numbers as each area’s taxes are used to fund different things. For example, the Crowsnest Pass taxes help fund their ambulance service.

The results are affected by the assessed value. The sample home is located in lower Sparwood.

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Page 12: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Operating Budget

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Page 13: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Executive Assistant (HR/Safety/Communications) position

Conceptual design Fire Hall #2

Teck – Condition 21 consulting fees

Complete flood mitigation strategy

Parks and recreation master plan

Update● Zoning bylaw ● Subdivision servicing bylaw● Cemetery master plan

Continuing to focus on● Wildlife mitigation strategies● Economic diversification● Trail development● Water leak repairs

2019 Major Operating Initiatives

These are some of the operational items that Staff and Council are working on to ensure that Sparwood moves forward.

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Page 14: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Operating Revenue $13.5M

Taxation is 57% (2018 57%) of our revenue, while user fees are 20% (2018 18%). The remaining 23% is from various other sources, such as grants.

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Page 15: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Operating Costs $13.5M

2019 - $13,461,366 2018 - $13,157,305

Administration includes

- office and lease building maintenance, community broadband, IT, legal, finance, human resources, records management

Protection includes

- bylaw enforcement, building inspection, animal control and emergency planning

Public Health includes

- mosquito control and Cemeteries

Community Relations includes

- visitor information centre, library, coal miner days, youth action network and various grant programs

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Page 16: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Community Support

* Programs are grant funded and managed through the District.

$560K

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Page 17: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

How are Capital Projects Funded?

Debt funding

Grants

Reserves for capital projects

Replenished by:

Formal repayment with interest

Yearly transfers from operations

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Page 18: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

When spendingCareful consideration

If reserves are diminishedMust borrow to fund new capital

Debt repaymentsNot as flexible

Resource community Reliant on industry

Must replenish reserves regularlyMay lose flexibility to respond to economic downturns

Reserve Funds - Guidelines

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Page 19: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Infrastructure and equipment

Upgrades & replacement

• Reasonable maintenance costs

New spending

Keep up with regulated standards

• Water protection, sewer & waste

Economic development

Grow & diversify the community

• Maintain low taxes

Reserve Funds - Guidelines

As with your house or vehicles, there comes a point where they must be replaced because they are either costing you too much money to repair or they need to be updated to keep up with current regulations. There are always new rules and regulations being set by various levels of government that the District must adhere to.

We must also consider the future and develop infrastructure strategically.

Often there are Government Grants available to help fund projects, but in the current economic downturn they are often coming up on short time lines and need proof that they have Council authorization and that the District’s share of funds are available. An example of this was the Stimulus Funding for the CPR Overpass and Link Trail.

Capital budgets in any one year may contain many more projects than actually move forward just so that we are able to take advantage of potential funding opportunities.

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Page 20: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Borrowing Funds! - When & Why?

Example – major infrastructure upgrades

• Several years down road

• Too costly for reserves

• Borrowing evenly spreads out costs between current & future taxpayers

Local Service Areas (LSA)

• Infrastructure upgrades for limited area

• Taxpayers in LSA repay debt

*Conserves reserve funds for projects that benefit ALL taxpayers

It is the future residents of the community that benefit from these larger, long term projects. Therefore, they are typically the ones that pay for them over time by paying back the borrowed funds.

The District does have a Local Improvement reserve that can be used for very small projects and avoid the significant amount of administration that the borrowing process requires.

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Page 21: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Proposed Capital Projects

2019 Highlights

Some projects will be reduced, some will be handled through operations, some will be deferred until funding is available. Other requests will be rethought – there may be other ways of accomplishing what we need without a capital outlay.

The following capital items are still subject to change, and some may only proceed if grant funding is approved, e.g. the skate park.

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Page 22: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Equipment Replacement

½ ton Pickups (2) $ 105,000 1 ton Crew Cab with Dump Box $ 130,000 3/4 ton Pickup with Sander/Blade $ 73,500 Single Axle Hooklift Truck $ 295,000 Single Axle Dump Truck $ 295,000 1 ton Aerial Bucket Truck $ 190,000 Vacuum Sweeper $ 300,000 Asphalt Reclaimer $ 80,000

These figures are preliminary estimates and will be fine tuned before the financial plan is final.

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Page 23: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Equipment Replacement (continued)

Snowblower $ 115,500 Hooklift Attachments $ 63,000 IT Switches and Hardware $ 95,000 Emergency Generator (Fire Dept) $ 15,000 SCBA equipment packs $ 263,340 SCBA equipment bottles $52,164

TOTAL $ 2,072,504

These figures are preliminary estimates and will be fine tuned before the financial plan is final.

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Page 24: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Building Upgrades

Arena Sound System $ 66,000

Outbuilding Energy Retrofit $ 60,000

Main Office Exterior $ 60,500

Public Works (roof, insulation, workshop) $ 179,450

TOTAL $ 365,950

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Page 25: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Parks and Recreation

Sparwood Heights Multi Purpose Pad $ 80,000

Dog Park $ 60,000

TOTAL $ 140,000

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Page 26: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital BudgetEngineering Structures

Hwy 3/43 Middletown $ 330,000 Whiskey Jack - Roads, Sewer, Water* $ 5,472,300 Transfer Station Intersection $ 1,750,000 Sidewalk Repairs $ 450,000 Gravel Road Resurfacing $ 500,000 Pedestrian Bridge Lighting $ 110,000 Fiber Optic Network $ 125,000 Street Repaving $ 450,000

TOTAL $ 9,187,300* Represents the District’s share of infrastructure required and planned for future development in Sparwood Heights and

Whiskey Jack. Whiskey Jack contributes their share.

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Page 27: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Water System

Water Infrastructure Upgrades $ 250,000

Water SCADA (Supervisory control and data acquisition) $ 180,000

Well#4 and Transmission Line $4,750,000

TOTAL $ 5,180,000

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Page 28: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Sanitary Sewer System

Infiltration Contingency $ 180,000

Sewer SCADA (Supervisory control and data acquisition) $ 285,000

Buckthorn Lift Station Replacement $ 385,000

Ras Pump Chamber Replacement $ 308,000

TOTAL $ 1,158,000

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Page 29: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

2019 Capital Budget

Funding Sources for Capital Projects

TOTAL CAPITAL PROJECTS $ 19,313,754

FUNDING OF CAPITAL PROJECTS

Reserves $ 11,246,354

Borrowing $ 0

Grants and Other Sources $ 8,067,400

TOTAL $ 19,313,754

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Page 30: Sparwood 2019-2023 Financial Plan Presentation · Fernie Crowsnest Pass Elkford Sparwood Assessed value $429,000 $293,000 $316,700 $309,700 Tax 3,324.03 2,887.20 2,762.70 2,375.42

Where can I ask questions or provide my suggestions?

In Person 136 Spruce Avenue

Mail PO Box 520, Sparwood BC, V0B 2G0

Phone 250.425.6271

Fax 250.425.7277

Email [email protected]

Accommodating additional Capital Projects or Operational Changes needs sufficient lead time for Staff and Council to consider and plan.

Thank you for your time.

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