2018-2022 Financial Plan

BUDGET AT A GLANCE

conservative budgeting. Money held by the City, that is not immediately required is invested and prudently managed in order to achieve the objectives of safety, liquidity and return. It should be noted, that if the pace of capital project spending increases, the size of the investment portfolio will decrease as will our investment earnings.  General Purpose Property Tax Increase – 1.90% in 2018 and 2.00% per year in 2019 through 2022.  Infrastructure Sustainability Property Tax Increase – 0.70% per year.  Parks, Recreation & Culture Property Tax Increase – 0.25% per year.  Parks and Recreation Facilities Tax Increase – 0.35% per year for seven years  Storm Water Property Tax Increase – 0.30% per year.  Vacant position review and management – all positions that become vacant are subject to a detailed review by management prior to being refilled.  Contracting/Consulting review – all consulting work should undergo a review, not only at budget time, but also when services are being contracted to determine the best way to acquire services. This will involve potentially contracting out where it makes sense and contracting in where there are available staff resources.  All non-labour budgets remain at the same level of funding unless it is shown that the costs for goods or services required to provide the same level of service have increased.  Incremental packages include a business case to support new programs/projects/staff.  Reduction review exercise – all departments prepare reduction packages which are departmental plans of what they would retain if they had only 90% of current budget. This is an opportunity to explain to senior management what the ramifications of such reductions would be. In addition, it is a chance to look at what we are presently doing to see if there are strategies for improvement. Rate Changes  Water Levy Increase – 4.50% per year. Sewer Levy Increase – 3.60% per year.   Recycling Levy Increase – 1.67% in 2018 and 2.75% per year in 2019 through 2022. Cost Containment Measures

KEY ASSUMPTIONS Economic Conditions

2017 can best be described as tumultuous. Natural disasters and indications of increasing political tensions in some countries dominated news headlines during the year. The global economy improved in 2017 despite uncertainly around trade agreements and a trend towards more protectionist economic policies in the United States of America. Canadian economic growth in 2017 exceeded early expectations, with real gross domestic product (GDP) increasing by approximately 3%. Uncertainty related to the current NAFTA talks, increasing interest rates and indications of decreasing private sector investment in infrastructure is tempering expectations for 2018. Early predictions suggest we can expect to see real GDP of approximately 2% for the year. British Columbia’s economic performance was stable in 2017 with real GDP growth estimated at approximately 3%. The job market in BC has performed very well for the past few years, with substantial increases in the number of people working. In 2017, there was an increase of approximately 3.5% in total employment. BC growth is projected to slow somewhat in 2018 as a result of expected reductions in consumer spending and a slower pace of export growth. Tax Growth The additional property tax revenue due to new construction, often referred to as real growth, is budgeted at 2.00% per year for 2018 through 2022. If the projected growth does not materialize, operating costs will be reduced to compensate for the revenue shortfall. Development Cost Charges Development Cost Charges (DCCs) are fees collected from developers to assist with funding the infrastructure required due to new development. The timing of the capital projects that are funded by these fees will be adjusted based on the collections. DCCs are an important funding source for the capital program as Maple Ridge is growing with infrastructure needs related to new development. Investment Earnings Investment income exceeded budget targets in 2017 as a result of favourable returns and

Maple Ridge  Financial Plan 2018-2022

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