The draft budget process is underway for the 2024 financial year and beyond.
Council held a Committee of the Whole meeting on Dec. 13 to preview the five-year financial plan from 2024-2028. The draft budget is the first step of a multi-month undertaking where each department in the municipality outlines their objectives for the coming years. The next step is a public consultation period which starts on Jan. 9 and runs through the end of the month.
One of the most discussed numbers each year is the change to property tax collections. The draft showed an increase this year – and the two years following – of 9.5 per cent. In 2027 this number is forecast to dip to a 4 per cent rise. Chief financial officer Kristen Watson said the many infrastructure repairs and upgrades required around the island were a main driver of the increase.
The 9.5 per cent number will also jump a bit due to changes to assessment rolls. New construction is forecast to add $38 million to the tax roll, but at the same time $54 million will be lost now that the 24 lots purchased by Metro Vancouver at Cape Roger Curtis are exempt. The $16 million dollar difference adds nearly a half-per cent to the increase, making it effectively 9.93 per cent. Factoring everything in, the effective property tax increase will be around $310 on a property worth $1.5 million (average house value on Bowen).
Infrastructure fixes major focus of next 5 years
The public works department has a bevy of projects slated for the new year including an approximate $1.36 million repair to the Carter Road bridge leading to Island Pacific School, Cates Hill Chapel, and Belterra Cohousing. Work on the current section of the Multi-Use Path from Artisan Lane to Charlie’s Lane will also continue at costs of $886,000 in 2024 and $834,000 in 2025. About $1.459 million of that $1.72 million is expected to be covered by grants.
Director of engineering Patrick Graham explained roads and culverts are an area needing major attention. All Bowen roads would cost $46 million to rehabilitate, so the department is proposing $500,000 a year in 2024 and increasing this amount by $50,000 each year after.
Culvert costs in specific neighbourhoods alone coming up are $353,000 this year in Bluewater and Eagle Cliff, with another $785,000 budgeted for Bluewater next year. Total culvert replacement costs across the island would be $22.4 million, with $5.7 million of this work on ones which are significantly deteriorated. Graham estimates $1 million worth of culvert repairs a year between 2026-2028.
Other 2024 priorities include $130,000 for slope stabilization along Smugglers Cove Road, $50,000 to seal a storm drain under the Library, and $100,000 to replace a work truck. Two pressure reducing valve replacements are necessary, one in Tunstall Bay and one in Cove Bay, at $250,000 each. And a pair of water main replacements along Miller Road ($200,000) and Whitesails Drive ($150,000) are on the docket for the new year.
Looking ahead, the Snug Cove Wastewater Treatment Plant (WWTP) continues to factor heavily into any financial planning. Currently an outfall pipe needs replacing after repeated failures during the summer, a task estimated at $1.2 million. Going forward the planned Phase 2 upgrades for the WWTP will cost $6 million, but no timeline or funding source has been finalized for this yet.
A revamping of the public works yard is also in the cards after several health and safety concerns were found in the existing building and the grounds last year. Construction of a new building will be around $3 million and is expected to take place in 2025. A temporary trailer is currently on-site for workers to use until the new building is complete.
Graham added the municipality could also use some new equipment in order to take on certain jobs themselves. The director pointed out there’s nothing currently available to sweep and plow the Multi-Use Path, and that a Multihog vehicle could help accomplish this and other tasks. The continued quest to acquire an excavator is also on the wish list, which would allow staff to conduct their own ditch cleaning and underground infrastructure repairs.
Firefighting equipment
The fire department will be seeing some new adds this year via $232,000 in grant funding. The majority of this, $150,000, is going to develop a disaster risk mitigation plan. Bowen’s Emergency Support Services will see $30,000 come their way, and $42,000 will be used for capacity building and GIS mapping technology.
Equipment is a big part of the department’s budget this year as many of the life-saving items need addressing. This includes replacement of the self-contained breathing apparatus gear, a job which needs to be done in full since all members of the volunteer department need to be familiar with using the same equipment. This cost will be around $250,000, with another $20,000 budgeted for turnout gear which needs replacing.
On the recreation and community services front the big focus for 2024 will be the transition to the new Community Centre, which is expected to be open in April. The department is planning on $200,000 for startup costs, and $10,000 each for new software to accommodate room bookings and a bike shed. Another $20,000 will go to renovating the space above the Library into a new location for the Youth Centre.
Overall the Community Centre still needs $2 million to be fully paid off. The municipality is looking at using grant funding through the Growing Communities Fund if fundraising doesn’t turn up the deficit.
Bridges and boardwalks
The environment and parks planning department is also looking at some significant 2024 costs. These include $100,000 to repair the Headwaters Park boardwalk, $45,000 for the Maggie’s Walk bridges, a pit toilet at the Art Rennison Nature Park for $25,000, and $19,000 to replace garbage cans around Snug Cove.
Beach improvements are part of future work planned, including infrastructure at Scarborough and Clipper Beaches and overall shoreline protection to guard against climate impacts. Various stairways on Cates Hill are also in need of fixes.
The new On-Island Compost Facility will also have municipal costs of about $460,000 after factoring in $1 million in grant money and a $100,000 contribution from the Knick Knack Nook. This number isn’t included in the budget yet, and will need to come from either additional borrowing or dipping into the accumulated surplus fund.
Administrative costs will jump to $893,728 in 2024 from $724,070 last year. Part of this is a $20,000 consulting cost to help with a long overdue task of organizing municipal records. General government costs will drop to $383,500 from $442,000 due to savings on rent after moving operations into the Community Centre.
IT upgrades including a new server are also being planned at a cost of $55,000, along with $15,000 to the municipal website to allow for online payments.
The planning department is anticipating about $100,000 in 2024 for the Official Community Plan renewal project, and $50,000 on a consultant for assistance in implementing the new Municipal and Regional District Tax.
Overall, the municipality’s expected operations budget is expected to go up 12.5 per cent in 2024 to $8,801,571 from the 2023 total of $7,820,472.
Several parts of the budget still need to be ironed out, including the Library budget, operations costs at the Community Centre, and water and sewer budgets. Following this month’s public consultation process, a second draft of the budget will be presented in February. Following assessment by the Finance Advisory Committee, final adoption is planned for late April.
