CITY OF KAMLOOPS BYLAW NO A BYLAW OF THE CITY OF KAMLOOPS RESPECTING THE FINANCIAL PLAN FOR THE YEARS , INCLUSIVE
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1 CITY OF KAMLOOPS BYLAW NO A BYLAW OF THE CITY OF KAMLOOPS RESPECTING THE FINANCIAL PLAN FOR THE YEARS , INCLUSIVE The Municipal Council of the City of Kamloops, in open meeting assembled, enacts as follows: 1. Schedules "A", "B", "C", "D", and "E" attached hereto, forming part of this bylaw and that comprise the Financial Plan for the City of Kamloops for the years 2015 to 2019, inclusive. 2. This bylaw may be cited for all purposes as the "City of Kamloops Financial Plan Bylaw Amendment Bylaw No , 2015." READ A FIRST TIME the day of, READ A SECOND TIME the day of, READ A THIRD TIME the day of, ADOPTED this day of, MAYOR CORPORATE OFFICER 112
2 BYLAW NO PAGE 2 SCHEDULE "A" Five-year Financial Plan General Operating Fund Revenue: Real property taxes 96,254,000 98,660, ,151, ,730, ,865,268 Taxes - new assessments 1,000,000 1,000,000 1,000,000 1,000,000 Special assessments 4,443,479 4,470,639 4,547,639 4,625,639 4,734,639 Fees, rates and sales of service 28,110,256 28,566,247 29,006,250 29,790,726 30,050,908 Grants 17,688,864 18,184,322 18,438,283 18,875,271 19,334,066 Investment income 3,628,873 3,822,685 3,967,840 4,186,613 4,210,504 Sale of capital assets 125, , , , ,000 Private contributions 84,000 84,000 84,000 84,000 84,000 Total Revenue 150,334, ,913, ,320, ,417, ,404,385 Expenditures: Cemetery 474, , , , ,037 Community development 4,879,996 5,002,791 5,070,222 5,196,821 5,325,950 Corporate administration 12,859,608 11,344,507 11,679,388 12,049,866 12,685,554 Environmental services 254, , , , ,817 Fire services 16,020,220 16,309,117 16,706,218 17,113,136 17,530,115 Infrastructure maintenance 8,403,093 8,744,232 8,997,815 9,350,849 9,710,945 Legislative and enforcement 5,295,107 5,382,194 5,437,264 5,665,681 5,618,922 Parks, recreation, and leisure services 26,637,954 26,958,788 27,290,056 27,770,436 28,255,498 Police services 27,470,172 27,830,935 28,293,513 28,766,985 29,264,567 Public transit 16,962,259 17,765,332 18,227,551 19,123,393 20,064,071 Solid waste 7,670,330 8,118,447 8,367,599 8,637,739 8,759,284 Debt servicing costs 3,360,833 3,669,561 3,905,764 3,960,252 3,694,853 Capital funded from operations 8,889,580 9,683,405 9,264,563 10,413,780 9,664,380 Total General Expenditures 139,178, ,503, ,940, ,761, ,297,993 Net operating activity 11,156,205 13,410,170 15,380,330 15,656,860 17,106,392 Transfers from (to) reserves -3,445,886-4,992,119-5,514,475-5,927,793-6,095,692 Transfers from (to) other funds -4,253,943-4,326,608-4,586,019-4,767,522-4,845,479 Debt principal repayment -3,456,376-3,786,016-4,782,693-4,877,449-4,797,388 Transfer to (from) accum. surplus 0 305, ,143 84,096 1,367,833 Estimated surplus balance 8,634,336 8,939,763 9,436,906 9,521,002 10,888,835 Tax rate increase indicated 1.22% 2.50% 2.5% 2.5% 2% 113
3 BYLAW NO PAGE 3 SCHEDULE "B" Five-year Financial Plan Water Operating Fund Revenue: Water levies 17,508,271 17,508,271 18,035,996 18,576,010 19,132,230 Water levies from growth 0 175, , , ,600 Fees, rates, and service charges 67,120 67,120 67,120 67,120 67,120 Investment income 1,194, , , , ,415 Total Revenue 18,770,212 18,554,300 19,090,527 19,574,498 19,979,365 Expenditures: Water utility operations 8,932,419 9,229,982 9,502,968 9,812,131 9,961,090 Debt servicing costs 1,594,713 1,392,677 1,537,603 1,311,943 1,249,146 Capital funded from operations 2,158,874 1,644,999 3,788,574 4,760,394 3,088,594 Total Water Expenditures 12,686,006 12,267,658 14,829,145 15,884,468 14,298,830 Net operating activity 6,084,206 6,286,642 4,261,382 3,690,030 5,680,535 Transfers from (to) reserves 304,737 42, , ,328 Transfers from (to) other funds -833, , , , ,000 Debt principal repayment -3,930,488-2,517,800-2,585,148-2,848,650-2,456,688 Transfer to (from) accum. surplus 1,624,687 2,961, ,830-8,620 2,432,175 Estimated surplus balance 4,146,346 7,107,966 8,096,796 8,088,176 10,520,351 Water rate increase indicated 0% 0% 2% 2% 2% 114
4 BYLAW NO PAGE 4 SCHEDULE "C" Five-year Financial Plan Sewer Operating Fund Revenue: Sewer levies 9,820,921 10,017,339 10,342,942 10,653,229 10,972,782 Sewer levies from growth 0 122, , , ,600 Fees, rates and service charges 170, , , , ,000 Investment income 330, , , , ,553 Total Revenue 10,321,181 10,611,896 10,992,371 11,373,864 11,696,935 Expenditures: Sewer utility operations 6,741,931 6,967,725 7,174,238 7,408,817 7,524,990 Debt servicing costs 924, , , , ,441 Capital funded from operations 1,584,034 4,320,317 1,835,118 1,498,524 1,534,124 Total sewer expenditures 9,250,610 12,189,459 9,940,565 9,818,433 9,914,555 Net operating activity 1,070,571-1,577,563 1,051,806 1,555,431 1,782,380 Transfers from (to) reserves 801,552 49, Transfers from (to) other funds 25, , , , ,276 Debt principal repayment -2,021,074-2,642,592-2,829,382-2,853,215-2,746,077 Transfer to (from) accum. surplus -123,376-3,232, , ,508-25,421 Estimated surplus balance 7,034,047 3,801,547 2,962,247 2,602,739 2,577,318 Sewer rate increase indicated 0% 2% 2% 2% 2% 115
5 BYLAW NO PAGE 5 SCHEDULE "D" Capital Plan General Fund Property Taxes 8,889,580 9,683,405 9,264,563 10,413,780 9,654,380 Water Levies - 15, Sewer Levies - 15, Community Works Fund 6,283,754 1,383,000 1,383,000 1,383,000 1,383,000 Field User Fees 30,000 30,000 30,000 30,000 30,000 Future Capital Reserve 6,590, ,000 36,079 35,000 45,000 Gaming Reserve 4,815,345 1,240,565 1,011, , ,390 Working Capital 114, Equipment Reserve 8,306,333 6,132,083 4,057,731 4,635,470 3,892,961 Land Sales 324,500 69,500 69,500 69,500 69,500 Local Improvement 76,500 76,500 76,500 76,500 76,500 Parking Reserve 1,767,624 90, ,000 90, ,000 Tax Sale Reserve 994, DCC Drainage 413,057 73, , , ,613 DCC Parks 783,714 99,990 1,021,202 99, ,165 DCC Roads 3,026,712 1,636, ,111 8,993,700 5,631,300 Grants 257, , , , ,000 Contractors and Others 255,569 50,000 30,000 30,000 30,000 Five Year Borrowing 127, Solid Waste Reserve 4,064,925 2,300,000 1,800,000 1,200,000 1,200,000 Debt 12,558,775-1,600, Total General Fund 59,680,807 23,505,731 21,740,369 27,982,118 23,403,
6 BYLAW NO PAGE 6 SCHEDULE "D" (CONTINUED) Capital Plan Water Fund Water Levies 2,158,874 1,629,374 3,788,574 4,760,394 3,088,594 Community Works Fund 761, Future Capital Reserve 3,267, , , ,306 - Local Improvement 40,000 40,000 40,000 40,000 40,000 DCC Water 234, , , ,156 1,444,906 Contractors and Others ,000,000 Debt 179,050 8,015, ,000 3,000,000 - Total Water Fund 6,641,773 11,359,565 4,661,329 8,610,856 7,573,
7 BYLAW NO PAGE 7 SCHEDULE "D" (CONTINUED) Capital Plan Sewer Fund Sewer Levies 1,584,034 4,304,692 1,835,118 1,498,524 1,534,124 Future Capital Reserve 3,710, Local Improvement 50,000 50,000 50,000 50,000 50,000 DCC Sewer 5,017,112 68, , ,476 61,876 Grants 744, Debt 1,736, Total Sewer Fund 12,842,736 4,423,375 2,082,500 2,244,000 1,646,
8 BYLAW NO PAGE 8 SCHEDULE "E" 2015 Financial Plan Statement Community Charter Section 165(3.1) The proportion of total revenue proposed to come from each funding source. Table 1: Proportions of Total Revenue REVENUE SOURCE ($1,000S) Property Taxes $96, % Special Assessments $4, % Fees, Rates, Sales of Service $55, % Grants $17, % Investment Income $5, % Sale of Capital Assets $ % Private Contributions $ % TOTAL REVENUE $179, % The distribution of property taxes among property classes. PROPERTY CLASS Residential 61.0 Utilities 3.0 Major Industry 6.9 Light Industry 1.6 Commercial 27.2 Rec/Non-profit 0.2 Farm 0.1 TOTAL % OF PROPERTY VALUE PERMISSIVE TAX EXEMPTION The 2014 Annual Report will detail the permissive tax exemptions that were granted. Permissive Property Tax Exemptions for Places of Worship Places of Worship and the land on which the building stands are a Statutory Exemption under Section 220 of the Community Charter. Guidelines were established to provide consistent and equal consideration to grant permissive tax exemptions for the land that surrounds Places of Worship. Applications will not be considered for vacant land that a church organization is holding for future use and/or investment purposes or property that is used exclusively for parking, unless it is in direct relationship to the Place of Worship. 119
9 BYLAW NO PAGE 9 SCHEDULE "E" (Continued) 2015 Financial Plan Statement (Continued) Community Charter Section 165(3.1) Permissive Property Tax Exemptions for Non-Profit Organizations In addition to the provisions provided in the Community Charter under Section 224, non-profit organizations must own and occupy the property for which the permissive tax application is being made. Applications will not be considered that: conduct any retail operation as an independent business on commercial property that competes with privately-owned facilities providing similar service; provide liquor and/or meal services as its primary function; request exemption on a parcel that is used exclusively for parking, unless it is in direct relationship to the organization's principal use; provide rental housing with the exception of those properties that are exempt under the Community Charter (a building that was constructed or reconstructed with the assistance of aid granted by the provincial government after 1947 January 1, but before 1974 April 1, and that is owned and used exclusively without profit by a corporation to provide homes for elderly citizens together with the land on which the building stands. Revitalization Tax Exemption (Section 226 of the Community Charter) For the purposes of encouraging revitalization in the City of Kamloops, Council has established a revitalization tax exemption program under the provisions of section 226 of the Community Charter. Property owners in specified areas of the City who are involved in the construction of a new improvement to a property or are involved in an alteration of an existing improvement may apply for a property tax exemption. If approved, the revitalized tax exemption is calculated as a percentage of the increase in the municipal property taxes which would otherwise be payable as a result of any increase in the assessed value of land and improvements on the parcel between the calendar year before the construction of the new improvement or alteration of an existing improvement and the calendar year following the calendar year in which a tax exemption certificate is issued. The maximum term of the tax exemption is ten years. The objectives of the tax revitalization are to strengthen the viability of existing businesses; stimulate and encourage new private investment; encourage higher density residential development; improve the image and attractiveness of the tax revitalization areas; and better utilize City infrastructure. 120
10 BYLAW NO PAGE 10 SCHEDULE "E" (Continued) 2015 Financial Plan Statement (Continued) Community Charter Section 165(3.1) The City extended the tax revitalization to the North Shore in The North Shore Tax Revitalization program supports a green initiative to encourage sustainable development and green building techniques throughout the whole of the North Shore by providing an evaluation system, using a Development Checklist, which awards points for developers who incorporate sustainable and green elements into their proposals. Development features that score points include constructing to a LEED standard, using onsite stormwater management, installing green roofs, recycling construction materials, retaining wildlife habitat and/or increasing the amount of landscaping and trees installed on-site. When these features are incorporated into development, the amount of eligible tax exemption can increase, providing a greater return for the developer. Heritage Tax Exemption (Section 225 of the Community Charter) The City of Kamloops, under the Heritage Conservation Act and subject to a Heritage Revitalization Agreement under Section 966 of the Local Government Act, offers a Tax Incentive Program to property owners to assist with the costs of preservation, restoration and or rehabilitation of an eligible heritage resource. Eligible property owners may receive a percentage of tax exemptions based on the existing annual property taxes, for a period of up to ten years. The objectives are to: 1. Provide financial incentives to help owners rehabilitate and maintain historic buildings; 2. Help foster private participation and investment in preservation and maintain a more livable city thereby attracting residents and business; and 3. Use Heritage Preservation as a method of diversifying the City s overall economic development strategy. Partnering Tax Exemption (Section 225 of the Community Charter) The City of Kamloops under Section 21 of the Community Charter entered into a partnership agreement with a property owner where the eligible property is providing a municipal service and may be eligible for property tax exemption. The City entered into an agreement in 2006 with Lansdowne Village Holdings Ltd. to locate a transit exchange on their statutory right-of-way with the City granting Lansdowne Village use of a former road for parking and landscaping purposes. The objective of the agreement was to provide a public transportation service on behalf of the City of Kamloops. 121
11 BYLAW NO PAGE 11 SCHEDULE "E" (Continued) 2015 Financial Plan Statement (Continued) Community Charter Section 165(3.1) USER FEES - OBJECTIVES IN SETTING USER FEES Council reviews user fees on an annual basis to try and cover increases in operating costs. The Development Cost Charge Bylaw was updated in 2013 to address future capital costs. Development and Engineering Services Department Building Inspection Division and Business Licensing Section All application and permit fees are set with the objective of covering the full cost of the works required to process the applications and permits. Planning and Development Division All application and permit fees with the exception of business licensing are set with the objective of recovering a portion of the cost of the works required to process the applications and permits. The portion is determined through two mechanisms: 1. By review of what other municipalities charge; and 2. By review of what is acceptable without negatively impacting economic development. Business licensing fees are set with the objective of covering the full cost of the works required to process the applications and permits. Subdivision/Development Division All application and permit fees with the exception of transit are set with the objective of recovering a portion of the cost of the works required to process the applications and permits. The portion is determined through two mechanisms: 1. By review of what other municipalities charge; and 2. By review of what is acceptable without negatively impacting economic development. Transit fees are set with input from BC Transit with the objective of maximizing cost recovery without negatively impacting ridership. Engineering Division Not applicable. Real Estate Division Not applicable. 122
12 BYLAW NO PAGE 12 SCHEDULE "E" (Continued) 2015 Financial Plan Statement (Continued) Community Charter Section 165(3.1) Parks, Recreation, and Cultural Services Department The intent is to recover 50% of the operating costs of all saleable facilities and operating costs as determined by day to day and general maintenance. Capital and replacement are not included in calculations. Public Works and Utilities Department The objective of our solid waste fees is to cover 100% of the cost to collect and dispose of garbage and collect and process recyclables. This includes covering the cost to rehabilitate/replace equipment and fund the future closure costs of the Barnhartvale and Mission Flats landfills. The objective of our water user fees is to cover 100% of the cost to treat water and distribute water to our customers. This includes covering the cost to maintain and rehabilitate/replace water infrastructure. The objective of our sewer user fees is to cover 100% of the cost to collect, convey, treat, and dispose wastewater from our customers. This includes covering the cost to maintain and rehabilitate/replace sewer infrastructure. 123
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