Title
2015 Spring Budget
Proposed Motion(s)
1) That Council approve the 2015 Spring Budget which will increase the municipal tax levy requisition by $971,800 as compared to the budget approved at the December 9, 2014 Council meeting.
2) That Council approve the changes to the fees and charges schedule as per Attachment 9.
3) That Council approve the total cost of $28,403,131 for the Storm Water Outfall Construction project that is expected to continue and be completed in 2016.
Body
Administration Recommendation(s)
Administration supports the proposed motions.
Purpose
Each year in the spring, administration reviews the budget passed in December and puts forward to Council a list of recommended changes to the budget. This review also allows administration the opportunity to make any necessary adjustments to ensure that the budget provides the necessary financial resources required to achieve Council's Strategic Plan and the service levels outlined by Council. These changes along with the finalized assessment values establishes the parameters for setting the tax rate bylaw for that year.
Summary
The net effect of the spring budget adjustments is a $971,800 increase in the municipal tax levy (see attachment 2 page 2).
The adjustments made to the budget have been classified into 7 different categories as described below:
1. Adjustments for new budget items - This includes any adjustments resulting from new information that has not yet been approved by Council. The total taxation impact of these adjustments is an increase of $540,200 (see attachment 4 page 5).
2. Salaries and Wages - This includes additions to permanent and temporary full time equivalents as well as reclassifications of existing positions. The total impact of these adjustments on taxation is an increase of $425,400 (see attachment 5 page 2).
3. Errors - This includes the correction of any errors identified in the 2015 budget that was passed in December 2014. The total taxation impact of these adjustments is an increase of $2,200 (see attachment 6 page 5).
4. Variances - This includes any adjustments made to budget figures based on historical and trend analysis completed. The taxation impact of these adjustments is a decrease of $25,800.
5. Adjustments for Council decisions since the December budget was approved - This includes any adjustments made as a result of Council resolutions carried after the 2015 budget was passed in December. The total taxation impact of these adjustments was an increase of $29,900 (see attachment 7 page 2).
6. Adjustments for re-budgeted items - The Canadian Institute of Chartered Accountants Task Force on Audit Reporting Implications of New Canadian Auditing Standards published new guidance on auditing budget figures in April of 2013. To ensure full compliance with this pronouncement, prior period amounts that were approved by Council (whether through Request For Decision or prior year budgets) have been included in 2015 budget. These adjustments have no impact on taxation.
7. Adjustments for accounting changes - These adjustments consist of non cash transactions such as amortization and gains and losses on sale of assets. These adjustments have no impact on taxation.
The tax impact of this budget will be 2.84% or $83.00 per year increase for a residential property with a market value of $485,424 and 5.21% or $2,421.03 increase per year for a non-residential property with a market value of $4,603,044 (see attachment 3).
Strategic Plan/Policy/Legal/Staff Implications
Section 242, 243, 245 and 246 of the Municipal Government Act requires Council to adopt an operating and capital budget.
Financial Impact:
Cost: $971,800
Source of Funding: Taxation