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FIN – 1

Agenda

Finance Committee

Anderson Room, City Hall 6911 No. 3 Road

Monday, February 5, 2018 Immediately following the open General Purposes Committee meeting

Pg. # ITEM

MINUTES FIN-3 Motion to adopt the minutes of the meeting of the Finance Committee held

on January 8, 2018.

OLYMPIC OVAL CORPORATION 1. RICHMOND OLYMPIC OVAL – 2018 ANNUAL OPERATING AND

CAPITAL BUDGETS (File Ref. No.) (REDMS No. 5734527)

FIN-6 See Page FIN-6 for full report

Designated Speaker: Rick Dusanj

STAFF RECOMMENDATION

That the report on the 2018 Annual Operating and Capital budgets for the Richmond Olympic Oval Corporation from the Controller of the Richmond Olympic Oval Corporation be received for information.

Finance Committee Agenda – Monday, February 5, 2018 Pg. # ITEM

FIN – 2 5734645

FINANCE AND CORPORATE SERVICES DIVISION 2. CONSOLIDATED 5 YEAR FINANCIAL PLAN (2018-2022) BYLAW

NO. 9800 (File Ref. No. 03-0985-01) (REDMS No. 5684896)

FIN-10 See Page FIN-10 for full report

Designated Speaker: Jerry Chong

STAFF RECOMMENDATION

(1) That the Consolidated 5 Year Financial Plan (2018-2022) Bylaw No. 9800 be introduced and given first, second, and third readings; and

(2) That staff undertake a process of public consultation as required in Section 166 of the Community Charter.

ADJOURNMENT

Date:

Place:

Present:

Absent:

City of Richmond

Finance Committee

Monday, January 8, 2018

Anderson Room Richmond City Hall

Mayor Malcolm D. Brodie, Chair Councillor Chak Au Councillor Carol Day Councillor Ken Johnston Councillor Alexa Loo Councillor Bill McNulty

Councillor Derek Dang Councillor Linda McPhail Councillor Harold Steves

Minutes

Call to Order: The Chair called the meeting to order at 5:23p.m.

5707573

MINUTES

It was moved and seconded That the minutes of the meeting of the Finance Committee held on December 4, 2017, be adopted as circulated.

CARRIED

FINANCE AND CORPORATE SERVICES DIVISION

1. FINANCIAL INFORMATION - 3RD QUARTER SEPTEMBER 30, 2017 (File Ref. No. 03-1200-05) (REDMS No. 5683936 v. 5)

1.

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Finance Committee Monday, January 8, 2018

It was moved and seconded That the staff report titled, "Financial Information - 3rd Quarter September 30, 2017", dated December 8, 2017 from the Director, Finance be received for information.

The question on the motion was not called as in reply to queries from Committee, Jerry Chong, Director, Finance, and Robert Gonzalez, Deputy CAO and General Manager, Engineering and Public Works, advised that (i) no additional costs have been incurred related to the minor delay in the Minoru Centre for Active Living project, (ii) the $934,000 appropriated from Engineering and Public Works for services fees relating to Lulu Island Energy Company (LIEC) are part of an agreement for district energy services rendered by LIEC on behalf of the City, and (iii) surplus funds for water utilities are transferred to the Water Levy Stabilization Provision to offset Metro Vancouver increases as water and sanitary sewer rates are stabilized to ensure payers have a normalized rate, despite spikes in rates imposed by Metro Vancouver.

The question on the motion was then called and it was CARRIED.

RICHMOND OLYMPIC OVAL CORPORATION

2. RICHMOND OLYMPIC OVAL - 3RD QUARTER 2017 FINANCIAL INFORMATION (File Ref. No.) (REDMS No. 5665524)

It was moved and seconded That the report on Financial Information for the Richmond Olympic Oval Corporation for the third quarter ended September 30, 2017 from the Controller of the Richmond Olympic Oval Corporation be received for information.

The question on the motion was not called as, in response to queries from Committee, Rick Dusanj, Controller, Richmond Olympic Oval Corporation, commented that there are just over 6000 members of the Richmond Olympic Oval and that the marketing budget includes three full time staff members.

The question on the motion was then called and it was CARRIED.

LULU ISLAND ENERGY COMPANY

3. LULU ISLAND ENERGY COMPANY - 3RD QUARTER 2017 FINANCIAL INFORMATION (File Ref. No. 10-6600-10-01) (REDMS No. 5642816 v. 7)

2.

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Finance Committee Monday, January 8, 2018

It was moved and seconded That the Lulu Island Energy Company report titled "Lulu Island Energy Company- 3rd Quarter 2017 Financial Information" dated November 2, 2017 from the Chief Executive Officer and Chief Financial Officer, Lulu Island Energy Company be received for information.

CARRIED.

ADJOURNMENT

It was moved and seconded That the meeting adjourn (5:42p.m.).

Mayor Malcolm D. Brodie Chair

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the Finance Committee of the Council of the City of Richmond held on Monday, January 8, 2018.

Amanda Welby Legislative Services Coordinator

3. FIN - 5

To:

From:

City of Richmond

Finance Committee

George Duncan Chief Administrative Officer & President and CEO Richmond Olympic Oval

Andrew Nazareth

Report to Committee

Date: February 2, 2018

File:

General Manager, Finance and Corporate Services & Chief Financial Officer, Richmond Olympic Oval

Re: Richmond Olympic Oval - 2018 Annual Operating and Capital Budgets

Staff Recommendation

That the report on the 2018 Annual Operating and Capital budgets for the Richmond Olympic Oval Corporation from the Controller of the Richmond Olympic Oval Corporation be received for information.

Chief Administrative Officer & President and CEO Richmond Olympic Oval

5734527

Andrew Nazareth General Manager, Finance and Corporate Services & ChiefFinancial Officer, Richmond Olympic Oval

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RICHMOND OlYMPIC OVAl Report

DATE: Feb 2, 2018

TO: George Duncan

Chief Executive Officer, Richmond Olympic Oval Corporation

Andrew Nazareth

Chief Financial Officer, Richmond Olympic Oval Corporation

John Mills

Chief Operating Officer, Richmond Olympic Oval Corporation

FROM: Rick Dusanj, CPA, CA

Controller, Richmond Olympic Oval Corporation

Re: Richmond Olympic Oval Corporation- 2018 Annual Operating and Capital Budgets

Origin

This staff report deals with the Richmond Olympic Oval Corporation's (the "Corporation") 2018

annual operating and capital budgets which were unanimously approved by the Corporation's Board

of Directors ("BOD") and as stipulated in the Oval/City Operating Agreement are being presented to

Council for information.

Analysis

2018 Budget Mandate

In preparing the 2018 operating budget, staff were given a mandate from the CEO that aside from

allowing for non-discretionary items such as costs associated with contractual commitments,

maintenance related expenses pertaining to maintaining the existing capital assets and

infrastructure, and except where there was a favorable gross margin impact, there were to be no increases to the operating budget. Based on this, staff prepared, and the BOD unanimously

approved, the 2018 operating budget as shown on page 3.

2018 Outlook

An influx of new residents moving into the Oval Village is expected in 2018 with the completion of

nearby residential towers. Through continued collaboration with local businesses and the property

developers, the Oval's services and membership program will be promoted to the Oval village's new

residents.

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A 10-day activation designed to highlight the achievements of the Oval will occur in December to

celebrate the 10-year anniversary of the Oval opening (December 13, 2008). A family day Olympic

event with a CBC activation is planned for February in coordination with the 2018 PyeongChang

Winter Olympics.

The High Performance Program (Oval HP) will continue to integrate with local, provincial and

national team programs to prepare their athletes for competition. In 2018, Oval HP will work with

greater numbers of "Next Generation" athletes who are identified by their National Sport

Organization to qualify for an Olympic Games in 5-8 years. The Oval is the new home of the

Vancouver Knights of the North American Premier Basketball League. The Knights will be playing 7

home games at the Oval and are engaging the services of Oval HP.

The Oval is looking forward to another busy year in event and sport hosting. Over 45 events have

already been secured for the upcoming year, including, but not limited to, the Harry Jerome Track

and Field Indoor Classic, Fencing World Cup, BC High School Boys Basketball Lower Mainland

Championships, Judo Pacific International, Judo BC Training Camp, Wayland Cup {Gymnastics),

Wheelchair Rugby National Team Training Camp, 2018 Vancouver Invitational Wheelchair Rugby

Tournament, 2018 OKCI Vancouver Open Kettlebell Sport Competition, Rhythmic Gymnastics

Provincials, Sport Climbing Provincials, Volleyball BC U17 /18 Provincials, Apex JiuJitsu Tournament,

British Columbia Sport Climbing Provincials, Delta Gymnastics Cash & Carry Cup, Rhythmic

Gymnastics Canadian Championships, Sledge Hockey Nationals, Karate Canada Open, Canadian

Gymnaestrada, WC Rugby Canada Cup, Baden Cup Volleyball Tournament, 2018 Volleyball Canada

National Team Challenge Cup, BC Handball Cup, and the Karate BC Provincial Championships.

2018 Operating and Capital Budget

The Corporation's BOD approved 2018 operating and capital budgets are below.

2018 Capital Budget

The 2018 capital budget is a total of $1.36M which includes a minor capital budget of $0.86M and a

major capital budget of $0.50M. The minor capital budget is for capital projects that are required to

maintain the existing capital assets and infrastructure and those projects required to support Oval

programming. The minor capital budget includes program related improvements and equipment

(e.g. strength and conditioning equipment) of $0.31M, building operations requirements of $0.26M

(e.g. electrical related improvements), computer software & equipment of $0.09M (e.g. server

upgrades), and a $0.20M contingency for any safety, security, or other related issues. The major

capital budget of $0.50M is required in order to commence phase 2 of the Re-Lamping project to

complete the lighting of the entire activity level. This funding will be recovered through projected

annual utility savings and a grant from BC Hydro. The Oval's minor capital budget is entirely self

funded by the Corporation through its contributions to its capital reserves.

Page 2 of 3

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2018 Operating Budget

RICI-IMOND OlYMPIC OVAl CORPORATION Operating Budget

2:017 2:018 2:017 BUDGET BUDGET $Change %Change PROJECTIONS

REVEffUES

2010 Games Operoting Trust $ 2,856,000 $ 2,900,000 $ 44,000 2% $ 2,804,671 Contribution from City of Richmond 3,377,146 3,451,446 $ 74,300 2% 3,377,146 Memberships, admissions and programs 8,383,202 8,442,591 $ 59,389 1% 8,202,488 Other 1,776,192 2,015,345 $ 239,153 11% 2,166,571

16,392,540 16,809,382 -416,842 3% 16,550,877 EXPENSES

Memberships, admissions, and program services 5,900,842 5,924,776 $ 23,934 0% 5,652,587 Facility Operations 4,374,914 4,604,527 $ 229,613 5% 4,358,737 M:arketing 703,533 608,575 $ (94,958) -Hi% 602,321 Admin/Flnance 3,173,011 3,288,065 $ 115,054 3% 3,288,824

1-4,152:,300 1-4,-425,943 273,6-43 2% 13,912,470

rlet income before amortization and transfers $2.,240,240 $ 2,383,439 $ 143,199 5% $ 2,638,407

Amortization 1,500,000 1,800,000 $ 300,000 20% 1,509,789

Ret after amorttmtion and before transrers $ 740,240 $ 583,439 $ (156,801) -14% $ 1,128,618

Transfers to reserves/provisions (Note 1) TBD TBD TBD

fiet after amortization and transfers TIJD TIJD TIJD

Note 1 -This budgeted transfer to reserves/provisions is an estimate and the final amount will be determined by the Capital Works Committee.

Rick Dusanj, CPA, CA

Controller, Richmond Olympic Oval Corporation

cc: Shana Turner

Director, Finance & Corporate Services, Richmond Olympic Oval Corporation

Page 3 of3

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To:

From:

City of Richmond

Finance Committee

Andrew Nazareth General Manager, Finance and Corporate Services

Report to Committee

Date: January 5, 2018

File: 03-0985-01/2016-Vol 01

Re: Consolidated 5 Year Financial Plan (2018-2022) Bylaw No. 9800

Staff Recommendation

1. That the Consolidated 5 Year Financial Plan (2018-2022) Bylaw No. 9800 be introduced and given first, second, and third readings.

2. That staff undertake a process of public consultation as required in Section 166 of the Community Charter.

Andrew Nazareth General Manager, Finance and Corporate Services (604-276-4095)

Att. 4

REPORT CONCURRENCE

ROUTED TO: CONCURRENCE CONCURRENCE OF GENERAL MANAGER

Law r;( ~ II --c.. -pr-

/\

REVIEWED BY STAFF REPORT I INITIALS: I;APP~OVED JJ:__ AGENDA REVIEW SUBCOMMITTEE C(S ~ ~

5684896 FIN - 10

January 5, 2018 - 2 -

Staff Report

Origin

Subsection 165(1) of the Community Charter requires the City to adopt a 5 Year Financial Plan (5YFP) Bylaw. The 5YFP Bylaw provides the City with the authority to proceed with spending to the limits as outlined in the bylaw. The City is required under section 166 of the Community Charter to undertake a process of public consultation prior to adoption of the 5YFP.

The 5YFP Bylaw No. 9800 consolidates the budget decisions previously approved by Council including the Utility, Operating, Capital budgets and One-Time Expenditures. The key components were approved by Council as follows:

Table 1 - Summary of Council Approval of the 2018 Budgets

December 11 2017

December 11 2017

December 11 2017

The 2018 Utility rates were approved by Council on November 14, 2017 and the following bylaws were adopted as follows:

Drainage, Dike and Sanitary Sewer System Bylaw No. 7551, Amendment Bylaw No. 9782 adopted on November 14, 2017. Solid Waste and Recycling Regulation Bylaw No. 6803, Amendment Bylaw No. 9791 adopted on November 14, 2017. Waterworks and Water Rates Bylaw No. 5637, Amendment Bylaw No. 9785 adopted on November 14, 2017.

The 5YFP includes the budget for the City's wholly owned subsidiary Richmond Olympic Oval Corporation which has been approved by its Board of Directors.

The operating budget for Lulu Island Energy Company (LIEC) which was approved by its Board of Directors was presented to Council on December 4, 2017 Finance Committee. The 5YFP excludes the 2018 budget for LIEC since LIEC has been classified as Government Business Enterprise and is required to apply International Financial Reporting Standards while the City is required to report under Public Sector Accounting Standards.

The 5YFP Bylaw includes estimates for 2019-2022 based on information currently available to staff and will be revised with the financial plan for each respective year. Inclusion in the financial plan for 2019 and beyond does not represent final approval for spending.

5684896 FIN - 11

January 5, 2018 - 3-

This report supports Council's 2014-2018 Term Goal #7 Strong Financial Stewardship:

Maintain the City's strong financial position through effective budget processes, the efficient and effective use of financial resources, and the prudent leveraging of economic and financial opportunities to increase current and long-term financial sustainability.

7.1. Relevant and effective budget processes and policies.

7. 2. Well-informed and sustainable financial decision making.

7. 3. Transparent financial decisions that are appropriately communicated to the public.

7. 4. Strategic financial opportunities are optimized.

Analysis

The 2018 Budget present a same level of service budget, with only non-discretionary increases that can be clearly identified and supported. Enhanced or new levels of service has been identified separately as ongoing additional level request for Council's consideration.

This report summarizes the 2018 budgets that have been previously approved by Council into a consolidated financial plan to provide expenditure authorization, allowing the City to formally proceed with delivering services to the community. In addition, the 5YFP includes operating and capital carryforward amounts that have been approved in prior years, however, projects and programs are expected to be completed in 2018 and future years.

Adjustments with No Impact on Rates

Prior Year Capital Carryforwards

The Capital Budget as presented in the 5YFP includes carryforward amounts for previously approved and funded projects that are still in progress as capital projects usually take several years to complete after Council approval. There is no tax impact of including these amounts.

Prior Year Operating Carryforwards

The 2018 Carryforwards are comprised of unspent amounts from 2017 and previously approved one-time expenditures that are required for programs and projects that were not completed in 2017 and hence carried into 2018. There is no tax impact of including these amounts.

Developer Contributed Assets

The 5YFP also includes an estimate for the value of developer contributed assets that the City will take ownership of as a result of rezoning approvals. This includes dedicated land under new road and infrastructure contributed by developers. There is no cost to the City for building the initial infrastructure; however it becomes part of the City's inventory of assets to maintain and eventually replace.

5684896 FIN - 12

January 5, 2018 -4-

2018 Operating Budget Impacts (OBI) for Utility Projects

The approved Capital Budget includes Utility projects with OBI for water and sanitary sewer infrastructure. Since the approval of these Capital projects occurred subsequent to the setting of the utility rates, these additional operating costs are not factored into the 2018 utility rates. These additional costs will be incorporated into the 2019 rates, and for 2018 the OBI will be funded as needed by utility rate stabilization accounts.

2018 One-Time Expenditures

On December 11, 2017, Council approved $1.7 5M in One-Time expenditures funded by the Rate Stabilization Account. These expenditures have been incorporated in the 5YFP and summarized in Table 2.

Table 2 - 2018 One-Time Expenditures Summary

Election Reserve

Council Community Initiatives Account

On December 11,2017, Council approved funding in the amount of$13,000 from the Council Community Initiatives Account for Richmond Community Services Advisory Community Space Review.

5684896 FIN - 13

January 5, 2018 - 5 -

Capital Budget

On December 11,2017, Council approved the 2018 Capital Budget of$160.1M. The 2018 Capital Budget is summarized in Table 3 and presented in bylaw format in Attachments 1 and 2.

Table 3- Total2018 Capital Budget

Projects range from road, sewer, water and drainage services to new buildings and parks, child care and affordable housing projects, land and equipment purchase. Highlights of the 2018 Capital Budget include:

5684896

Construction of the new River Parkway from Gilbert to Cambie along the former railway right-of-way ($1 0.5 million); Reconstruction ofNo. 4 Road from Blundell to Granville ($1.8 million); Construction of a new animal shelter ($8.0 million) and lawn bowling club house ($4.0 million); Closed circuit television monitoring at signalized intersections ($2.2 million); Restoration ofthe Phoenix Net Loft at Britannia Shipyards National Historic Site ($11.5 million) Funding for design of a new Canada Line station at Capstan Way ($3.5 million) Diking and drainage improvements ($14.0 million); Phase 3 park development of the Garden City Lands ($1.62 million) and development of the New Aberdeen Park playground and garden ($1.25 million)

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January 5, 2018 - 6 -

Operating Budget

The Operating Budget approved by Council on December 11, 2017 includes the Operating Budget Impacts from Capital, Additional Expenditures and additional transfer to reserves to form the new Ongoing Base Budget. The revised 2018 Municipal Tax Dollar Breakdown is presented in Attachment 3.

Table 4 presents a reconciliation of the Property Tax amount in the 2018 Budget.

Table 4- Total2018 Property Tax

Same Level of Service

OBI and Additional Levels:

495

89 s 35

Additional 1% Transfer to Reserves 65

Additional Levels:

16 RCMP Officers and 3

248

203

100

Rate Stabilization:

16 RCMP Officers and 3

The 2018 Operating Budget includes 1% transfer to reserves in accordance with Council's Long Term Financial Management Strategy (L TFMS). At the Finance Committee held on December 4, 2017, Council referred back to staff to conduct an analysis on the LTFMS specifically examining the need for the 1% transfer to reserves. Staff has been working with various departments assessing the long-term building and infrastructure replacement needs and focusing on enhancing the City's economic well-being and report back to Council with the findings.

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January 5, 2018 - 7-

Public Consultation

Section 166 of the Community Charter requires a process of public consultation prior to adoption of the 5YFP. In order to comply with this requirement, staff are working on a number of communication initiatives, which include:

preparing a news release on the City website scheduled for Wednesday, February 14, 2018 with a link to the 5YFP. engaging a public forum on Let's Talk Richmond scheduled to launch on Wednesday, February 14, 2018. utilizing social media to raise awareness of the public consultation period through Facebook and Twitter accounts. having copies of the 2018-2022 Consolidated Financial Plan and the budget reports approved by Council available for pick-up by the public. advertising in the Richmond News as reminder of the ongoing public consultation.

Upon review of the legislation and discussions with Province, the format of the public consultation process is at the discretion of the municipality to determine the communication channel that best suits its local community. Last year, staff held 2 open houses and conducted consultation via Let's Talk Richmond that was advertised online, newspaper ads, and social media for last year's budget process.

The open houses held for the 2017 budget process to solicit feedback from the public were not well attended. Questions raised at the open houses were mainly focused on personal neighbourhood concerns and technical in nature which required representation from various departments (Engineering, Transportation, Parks) to provide a response. On the other hand, over 200 visitors and 100 comments were received from the public via Let's Talk Richmond which was advertised online and through newspaper ads and social media. In order to ensure that the 5YFP consultation is beneficial, effective and efficient, staff will conduct the process through Let's Talk Richmond and social media.

The public consultation period will end on Sunday, March 4, 2018 and staff will report the results to Council in advance of the meeting scheduled to give final reading to the 5YFP bylaw.

5684896 FIN - 16

January 5, 2018 - 8 -

Financial Impact

Table 5 summarizes the Council approved 2018 total tax increase of3.30%, the proposed estimates for 2019 through 2022 to deliver the same level of service, and do not include additional levels, carryforwards, or one-time expenditures. The estimated tax increase for the 5YFP also includes 1% transfer to reserves in accordance with Council's Long Term Financial Management Strategy (L TFMS) for building and infrastructure replacement.

Table 5- SYFP 2018-2022 Summary

2.40% 1.99% 1.00% 2.99%

2.00% 1.98% 1.00% 2.98%

2.10% 1.95% 1.00% 2.95%

2.10% 1.99% 1.00% 2.99%

Conclusion

The 5YFP 2018-2022 has been prepared utilizing the 2018 budgets approved by Council to form the base of the financial plan. Staff recommend that the bylaw be given first through third readin~ and undertake the public consultation process.

I

f·~Ay

Mike ing, CPA, CMA Manag , Financial Planning and Analysis ( 604-276-413 7)

MC:jh

Att. 1: 5 Year Capital Plan by Program (2018-2022) 2: 5 Year Capital Plan by Funding Sources (2018-2022) 3: 2018 Municipal Tax Dollar 4: Consolidated 5 Year Financial Plan (2018-2022) Bylaw No. 9800

5684896 FIN - 17

- 9 - Attachment 1

CITY OF RICHMOND

5 YEAR CAPITAL PLAN SUMMARY (2018- 2022)

Infrastructure Program

Roads 27,002 15,504 17,861 12,289 12,759

Drainage 13,996 16,351 12,835 12,510 13,434

Water 14,327 10,793 9,520 10,139 12,309

Sanitary Sewer 12,190 7,200 5,670 7,350 4,570

Minor Capital 4,130 4,480 4,480 5,791 4,480

Total Infrastructure Program $71,645 $54,328 $50,366 $48,079 $47,552

Building Program

Building 29,245 15,547 19,065 2,199 21,231

Heritage 11,500

Total Building Program $40,745 $15,547 $19,065 $2,199 $21,231

Parks Program

Parkland 4,000 4,000 4,000 3,400 1,100

Parks 7,455 27,320 3,650 3,400 3,400

Total Parks Program $11,455 $31,320 $7,650 $6,800 $4,500

Public Art Program $348 $742 $600 $100 $100

Land Program $10,000 $10,000 $10,000 $10,000 $5,000

Affordable Housing $620 $625 $625 $625 $625

Equipment Program

Annual Fleet Replacement 3,423 1,498 1,415 1,735 2,547

Fire Dept. Vehicles and Equipment 1,239 2,431 182 1,466 1,183

Information Technology 2,730 2,125 365 455 460

Equipment 3,150 550 550 550 550

Total Equipment Program $10,542 $6,604 $2,512 $4,206 $4,740

Child Care Program $220 $60 $60 $60 $60

Internal Transfers/Debt Payment $4,489 $4,489 $4,061 $4,061 $3,676

5684896 FIN - 18

Park Development DCC

Park Land Acquisition DCC

Roads DCC

Sanitary DCC

Water DCC

Arts Culture Heritage

- 10-

CITY OF RICHMOND CONSOLIDATED 5 YEAR FINANCIAL PLAN CAPITAL FUNDING SOURCES (2018-2022)

(In $000's)

4,167 4,421 2,586

5,964 5,964 5,964

19,274 6,305 5,739

588 1,223 103

3,645

Capital Building and Infrastructure 28,351 1,000

Capital Reserve 19,924 52,162 39,262

Child Care 220 60 60

Drainage Improvement 16,753 16,213 14,538

Equipment Replacement 4,810 4,080 1,237

Neighbourhood Improvement 94

Public Art Program 348 464 100

Sanitary Sewer . 10,530 6,697 6,367

Waterfront Improvement 1,000

Grant and Developer Contribution 11,275 11,825 11 '125

Other Sources 8,878 6,835 5,556

Sewer Levy 643

Solid Waste and Recycling 300 300 300

5684896

Attachment 2

2,257 2,210

5,400 3,237

5,505 5,123

150

1,311 -17,061 31,470

60 60

14,213 15,234

2,951 3,480 •

100 100

6,634 5,140

11 '125 11 '125

5,186 5,191

300 300 .

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- 11 -

2018 MUNICIPAL TAX DOLLAR

2018 Tax Dollar Breakdown (With OBis and Additional Levels)

Police

Community Services

Engineering and Public Works

Fire Rescue

Transfer to Capital Reserves

Finance and Corporate Services

Information Technology

Corporate Administration

Richmond Public library

Planning and Development

Fiscal

Emergency and Bylaws

5684896

Attachment 3

20.40¢

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City of Richmond Bylaw 9800

Consolidated 5 Year Financial Plan (2018-2022) Bylaw No. 9800

The Council of the City of Richmond enacts as follows:

1. Schedule "A", Schedule "B" and Schedule "C" which are attached and form part of this bylaw, are adopted as the Consolidated 5 Year Financial Plan (20 18-2022).

2. 5 Year Consolidated Financial Plan (2017-2021) Bylaw 9663 and all associated amendments are repealed.

3. This Bylaw is cited as "Consolidated 5 Year Financial Plan (2018-2022) Bylaw No. 9800".

FIRST READING

SECOND READING

THIRD READING

ADOPTED

MAYOR CORPORATE OFFICER

5684896

CITY OF RICHMOND

APPROVED for content by

originating dept.

'<Li ~,, L

APPROVED for legality by Solicitor

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Bylaw 9800

SCHEDULE A:

CITY OF RICHMOND CONSOLIDATED 5 YEAR FINANCIAL PLAN (2018-2022)

REVENUE AND EXPENSES (In $000's)

Revenue:

Property Taxes 216,703 226,240 236,227 246,653

User Fees 100,786 104,224 107,693 111,350

Sales of Services 39,246 39,572 40,092 40,599

Gaming Revenue 16,500 16,500 16,500 16,500

Investment Income 14,694 15,103 15,420 16,326

Payments In Lieu Of Taxes 14,245 14,729 15,171 15,641

Other Revenue 10,921 11,208 11,506 11,814

Licenses And Permits 10,384 10,626 10,832 11,053

Grant Revenue 7,692 7,799 7,901 8,035

Developer Contributed Assets 47,410 33,360 33,360 33,360

Development Cost Charges 31,638 19,775 14,987 15,595

Other Capital Funding Sources 11,275 11,825 11,125 11,125

521,494 510,961 520,814 538,051

Expenses:

Community Safety 101,786 102,569 105,425 108,980

Engineering and Public Works 76,076 66,972 68,232 69,722

Community Services 66,159 63,298 65,966 68,627

Finance and Corporate Services 28,162 24,761 25,511 26,534

Fiscal 22,006 19,222 18,988 18,552

Debt Interest 1,679 1,677 1,677 1,677

Corporate Administration 9,950 10,149 10,433 10,791

Planning and Development Services 16,120 16,165 16,714 17,418

Utility Budget

Water Utility 42,161 43,353 44,955 46,645

Sanitary Sewer Utility 31,930 33,105 34,700 36,415

Sanitation and Recycling 16,369 16,701 17,294 18,245

Richmond Public Library 10,758 10,900 11,175 11,523

Richmond Olympic Oval Corporation 16,211 16,535 16,866 17,203

439,367 425,407 437,936 452,332

Annual 82,127 85,554 82,878 85,719

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257,499

115,168

41,116

16,500

17,574

16,126

12,132

11,279

8,171

33,360

12,430

11,125

552,480

112,580

71,268

70,641

27,607

18,088

1,677

11,162

18,158

48,407

38,227

19,261

11,885

17,547

466,508

85,972

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Bylaw 9800

SCHEDULE A (CONT'D):

CITY OF RICHMOND CONSOLIDATED 5 YEAR FINANCIAL PLAN (2018-2022)

TRANSFERS (In $000's)

Transfers:

Debt Principal 4J61 4,951 5,149 5,355

Transfer To (From) Reserves 66,999 69,700 71,963 74,325

Transfer To (From) Surplus (34,116) (3,551) (1,871) (1,807)

Capital Expenditures- Current Year 160,064 133,716 104,938 86,131

Capital Expenditures- Prior Years 257,680 224,878 179,784 137,746

Capital Expenditures- Developer 47,410 33,360 33,360 33,360 Contributed Assets Capital Expenditures- Richmond Public 892 892 892 892 Library Capital Expenditures- Richmond 1,362 Olympic Oval Corporation

Capital Funding (422,925) {378,392) (311,337) (250,283)

Transfers/ Amortization offset: 82,127 85,554 82,878 85,719

5,570

76,792

(1,076)

97,484

104,968

33,360

892

(232,018)

85,972

* 2018 Budget includes approved one-time expenditures and carryforwards funded by rate stabilization accounts. The projections for 2019 through 2022 are base budgets to deliver the same level of service and do not include estimates of carryforwards or one-time expenditures that may be approved in future years.

5684896 FIN - 23

Bylaw 9800

SCHEDULER:

CITY OF RICHMOND 5 YEAR FINANCIAL PLAN

CAPITAL FUNDING SOURCES (2018-2022) (In $000's)

Park Development DCC 4,167 4,421 2,586

Park Land Acquisition DCC 5,964 5,964 5,964

Roads DCC 19,274 6,305 5,739

Sanitary DCC 588 1,223 103

Water DCC 708 498

Total DCC $31,638 $19,775 $14,987

Affordable Housing 620 625 625

Arts Culture Heritage 3,645

Capital Building and Infrastructure 28,351 1,000

Capital Reserve 19,924 52,162 39,262

Child Care 220 60 60

Drainage Improvement 16,753 16,213 14,538

Equipment Replacement 4,810 4,080 1,237

Neighbourhood Improvement 94

Public Art Program 348 464 100

Sanitary Sewer 10,530 6,697 6,367

Waterfront Improvement 1,000

Watermain

Total Rate Stabilization $8,049

Enterprise Fund 100 550 550

Grant and Developer Contribution 11,275 11,825 11,125

Other Sources 8,878 6,835 5,556

Sewer Levy 643

Solid Waste and Recycling 300 300 300

5684896

2,257 2,210

5,400 3,237 '

5,505 5,123

1,436 150

900

$15,595 $12,430

625 625

1,311

17,061 31,470

60 60

14,213 15,234

2,951 3,480

100 100

6,634 5,140 ' -

550 550'

11,125 11,125

5,186 5,191.

300 300

FIN - 24

Bylaw 9800

SCHEDULEC:

CITY OF RICHMOND CONSOLIDATED 5 YEAR FINANCIAL PLAN (2018-2022)

STATEMENT OF POLICIES AND OBJECTIVES

Revenue Proportions By Funding Source

Property taxes are the largest portion of revenue for any municipality. Taxes provide a stable and consistent source of revenue for many services that are difficult or undesirable to fund on a user­pay basis. These include services such as community safety, general government, libraries and park maintenance.

Objective: • Maintain revenue proportion from property taxes at current level or lower

Policies: • Tax increases will be at CPI + 1% for transfers to reserves • Annually, review and increase user fee levels by consumer price index (CPI). • Any increase in alternative revenues and economic development beyond all financial

strategy targets can be utilized for increased levels of service or to reduce the tax rate.

Table 1 shows the proportion of total revenue proposed to be raised from each funding source in 2018.

Table 1:

Licenses and Permits 2.4%

Grants 1.8%

2.4%

Total Sources 100.0%

5684896 FIN - 25

Bylaw 9800

SCHEDULE C (CONT'D):

CITY OF RICHMOND CONSOLIDATED 5 YEAR FINANCIAL PLAN (2018-2022)

STATEMENT OF POLICIES AND OBJECTIVES

Distribution of Property Taxes

Table 2 provides the 2017 distribution of property tax revenue among the property classes. 2018 estimated roll figures will be received in January 2018.

Objective: • Maintain the City's business to residential tax ratio in the middle in comparison to other

municipalities. This will ensure that the City will remain competitive with other municipalities in attracting and retaining businesses.

Policies: • Regularly review and compare the City's tax ratio between residential property owners

and business property owners relative to other municipalities in Metro Vancouver.

Table 2: (Based on the 2017 Revised Roll figures)

35.79%

7.18%

0.75%

100.00%

Permissive Tax Exemptions

Objective: • Council passes the annual permissive exemption bylaw to exempt certain properties from

property tax in accordance with guidelines set out by Council Policy and the Community Charter. There is no legal obligation to grant exemptions.

• Permissive exemptions are evaluated with consideration to minimizing the tax burden to be shifted to the general taxpayer.

Policy: • Exemptions are reviewed on an annual basis and are granted to those organizations

meeting the requirements as set out under Council Policy 3561 and Sections 220 and 224 ofthe Community Charter.

5684896 FIN - 26