On the evening of Monday, April 22, council held a special meeting to present the 2013 to 2017 five-year financial plan. Bowen Island Municipality's interim manager of finance Kristen Watson explained that the community charter requires council to have a five-year financial plan in place before adopting the annual property tax rates bylaw.
A number of guiding principles serve as framework for decision making during the planning and budgeting process and provide the foundations for the delivery of community services, financial sustainability and desirable legacy for generations, according to Watson. Among the principles are being responsible to the needs of the citizens, ensuring that service levels and funding of services are sustainable, maintaining infrastructure in a proper state of repair and protecting the natural environment. Ensuring that property taxes are equitable and striving to strike a balance between customer demand for services and taxpayers' ability to pay as well as living within our means are listed as additional principles.
Watson explained that council considered the distribution of tax among property classes. "There is no appreciable difference between the benefits delivered or demands made on the infrastructure between residential and business properties and recreational/non-profit properties," Watson said, explaining a one to one ratio. She added that utilities and industrial properties are subject to an appropriated tax at 4.16 times the residential rate. "Council decided that farm properties would be provided tax relief of 50 per cent tax rate compared to residential to encourage the preservation of the rural community," she said.
Watson said that the five-year plan envisions the property tax levy going up in increments of less than four per cent per year. Rising costs of existing services due to inflation and cost of living allowances are inherent to all financial plans and each budget cycle, council will consider the tax increase required for the ensuing planning period.
"In 2014, parcel taxes are proposed to take a bump," said Watson, adding that this will be the result of establishing a new statutory reserve fund for providing future works and services in Snug Cove. "It is anticipated that council will adopt a plan to improve Snug Cove in 2014. It is intended that contributions to this reserve will be funded by way of a parcel tax," she explained. "Council proposes to set aside $50,000 property tax revenue for this reserve in 2013."
Another project related to Snug Cove that finds expression as a major line item in the five-year plan is a water treatment plan for the Cove Bay Water System. "Cove Bay water is surface water and the guidelines for Canadian drinking water quality recommend surface water to be treated to a higher standard than is presently done," Watson said. "To date, health authorities have not required that we provide this greater level of treatment." To allow for that possibility, Watson included a constituency plan for a water treatment plant estimated at $7,500,000 in the five-year financial plan. She added that this project is contingent in nature and is included as a means to educate the public about the possibility of this significant capital expenditure and additional related operating costs.
In a letter to council, Bowen resident Bill Granger commented: "The water districts each have had significant user fee increases in the past year, each show surpluses in the operating expenses, and large administrative costs per user for each of the systems. Discussion of a filtration plant for the Cove Bay Water System seems premature and would add crippling debt through a parcel tax for all Snug Cove system water users."
Watson's report states that local service areas operate on a self-funding basis.
Significant capital expenditures planned for the course of the next five years include the construction of phase one of a civic facility centre (in 2014), the library roof replacement (in 2014), a new fire pumper truck (in 2017) and the building of a new fire hall (in 2017).
"Replacing our fire hall has been added to the budget for 2017, at a cost of $2.3 million," Watson said.
As a new item in the 2013 budget, $100,000 have been included for "preliminary work on civic facilities." As funding source, "developer contribution" is listed. Paul Hoosen attended the meeting and cautioned council against including the entire civic facility reserve fund in the budget until it is determined that a cultural space will be part of it.
"A financial contribution was made to the community centre reserve with the understanding that it would have a community hall," he said. "If you do not include a cultural space, you cannot depend on the money," he said.
Councillor Cro Lucas said that a discussion about components of the facility is premature. "The next phase will be fundraising and that will determine what might go where, what starts first and what comes second," he said. Hoosen wanted to make it clear that if a cultural component is not part of the civic facility, a percentage of monies from the reserve cannot be used for it.
In summary, Watson said that the municipality will endeavour to operate as efficiently as possible by ensuring prudent purchasing practices, exploring all available grant and sponsorship opportunities aligned with strategic objectives and requiring that each year, departmental service plans include demand management options as well as options for service level efficiencies. "Continually balancing services and affordability is key, requiring a rich understanding of the community's vision and needs, a keen awareness of the demographic, economic and other external forces and ensuring an ever-evolving application of sound financial practices," she stated.
