Metro Vancouver Budget 2012

Here area few excerpts from the preamble to tomorrow's (Oct. 19th) budget workshop. The forecast expenses derived from property taxes will actually drop by 3.2% in 2012 for the average household on Bowen Island.

Ooops- a correction. Regionally, the rate will drop by 3.2%. For Bowen, as our assessments have moved up relative to the average, our rate will go up1.5%, to a total of $103,421. That's a bit over $44/household for parks, GPS services, 911, GVRD administration, air quality.

Draft Metro Vancouver Districts’ 2012 Budget

To achieve the identified objectives, Metro Vancouver utilizes a sustainability-based program

planning and budgeting process that focuses on clearly defined program outcomes while

ensuring rigorous control of costs. That fiscal discipline has served to drive innovation and

creative solutions in terms of the effective provision of sustainable regional services.

An integrated suite of management plans

Flowing from the Sustainable Framework are interconnected, priority-driven functional plans.

Current management plans include:

· Liquid Waste, Solid Waste, Regional Growth Strategy, Air Quality, Parks and

Greenways, Drinking Water, Regional Affordable Housing Strategy

· Regional Food Strategy, Climate Change Plan, Ecological Health

Each of these plans contains an array of goals and the actions necessary to protect and

enhance the quality of life for current and future generations of Metro Vancouver residents.

Finance and debt management strategy

To ensure its financial practices are aligned with sustainability principles, the board adopted a

formal finance and debt management strategy that is conservative, yet prudent, and based on

the principle of debt avoidance.

Less than ten per cent of Metro Vancouver’s annual budget is derived directly from the property

tax. The vast majority is raised through utility user fees for water, sewerage and solid waste.

Wherever possible, debt financing – and the consequent impact on future generations – is

avoided through pay as you go and the strategic use of Contributions to Capital and Reserves.

When borrowing is necessary, the collective financial strength of the region and its member

municipalities allows borrowing through the Municipal Finance Authority of BC at the best

possible rates, resulting in lower costs and shorter amortization periods.

2012 Budget Overview and Budget Drivers

The 2012 Metro Vancouver Budget was developed based on the defined roles (Service

Delivery, Planning Policy and Regulation, Political Leadership) of the organization as outlined in

our Board approved Sustainability Framework. The budget represents the resources required in

2012 to fulfill those roles.

The proposed increases are all below the 2012 targets discussed by the Finance Committee in

July and endorsed by the Board in September. The overall impact on a theoretical average

household in the region (assessed value of $605,000) will be an increase of $11, for a total of

$524.

Overall the total operating budget for all Districts has increased by $7.0 million to $614.6 million.

This is an increase of 1.2%

GVRD

2012 Target: 5.5% tax rate increase (approx. $2 per average household)

Proposed: Reduction (3.2)% (approx. $2 per average household)

The majority (52%) of this budget funds the Regional Parks function, with the remainder going

to several smaller functions ranging from Air Quality to Electoral Areas. The total property tax

on the average household to fund all the GVRD functions and programs will decrease to $37.

The expenditure budget here is down by 0.3% or $160,000. This budget includes decreases in

Labour Relations as a result of several members giving notice of their intent to discontinue full

membership in the function. In addition, one-time equipment upgrades for the Global

Positioning System included in 2011, have been removed.

It should also be noted that the Labour Relations budget is funded from reserves for 2012

pending completion of the function review currently in progress.