Presentation of DISTRICT OF HOUSTON TO 2014 Financial Plan

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Presentation of

DISTRICT OF HOUSTON

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What is a Financial Plan? Why?

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Prudent Planning!

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Legal Requirement, Community Charter (s165 & s166)



First year

of the plan is the budget or authority to expend funds.



Year two

is the authority to operate until the next annual 5-year

Financial Plan Bylaw is adopted.



Years two to five

are the municipality’s plans; they will / may change 

Years two to five

are the municipality’s plans; they will / may change

each year when a new plan is developed.

 Each year a number of factors will change the potential tax impacts in the plan.  Factors such as new construction or subdivisions, grants that become available

for projects, etc.

 PLEASE NOTE:

 The District’s public consultation process for the Financial Plan takes place during

open Finance Committee meetings and is finalized with this presentation of the plan.

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What’s new in 2010

 Improved infrastructure including Buck Flats Road & Mt. Davis Way

reconstruction. Start process for construction of a water treatment plant

 Better protection services with completion of emergency water well

generator, wildfire protection

 Green projects including the Woodstove Exchange Program, alternate energy

initiatives, creation of a solar energy demonstration site, working with the Regional District & H.O.P.E. on recycling

 Improved economic development & tourism an Economic Development  Improved economic development & tourism an Economic Development

Officer has been hired and the Community profile is being updated

 Improved leisure services with improved playground safety, starting a

downtown circle pathway, & Four Seasons bleachers refurbishment

 Major planning to include asset management, official community plan update  Continue development of the new Mountainview Cemetery

 Note: The Government sector accounting changes require a change from

cash based budget to include amortization of Tangible Capital Assets. 2010 is the first year which includes amortization in the Financial Plan. In the past the District has transferred to reserves in the Wastewater Fund & Equipment system sufficient to cover the annual amortization. The Water Fund and General Fund infrastructure require more funding to cover the amortization.

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Year 1 – 2010

 Base Expense Budget: decrease of $49K (less than .1%)

 Decreases in the base revenues combined with increases in some base costs, such as hydro

and fuel costs, caused a tighter budget in 2010.

 2009 projects to be completed in 2010 $2.4M funded by $1.71M in grants and $33K of 2009

municipal funding carried forward.

 Principal & Interest (at December 31, 2009):

 Fire truck capital lease to May 2010 payout, $25K  Solid waste truck capital lease to July 2011, $42K  Arena Geo thermal loan to 2014, $275K

 Leisure Facility loan to 2031, $2.2M

 Sewer extension loan to 2011, MFA deposit interest will likely cover the P & I after May 2010

 Major Projects ($8.9M, notes on ≥$50K):

Official Community Plan Update 2009/2010 ($50K)

 Official Community Plan Update 2009/2010 ($50K)

 Energy initiatives 2009/2010 ($100K with 100% grant funding)

 Downtown Circle pathway($536K with $442,500 grant funding-$262,500 approved to date)  Arena upgrades 2009/2010 ($112K with $41,000 grant funding for 2010)

 Wild Fire Mitigation 2008/2010 ($533K with 100% grant funding – part funding approved)  CN Rail bed (dike) assessment ($76K with 100% grant funding)

 Dike brushing ($100K) ($50K for each of 2009 & 2010)  Roads improvements ($1.042M with $1M grant funding)

 Water well emergency generator 2009/2010 ($224K with $192K grant funding)  Replace vehicles and equipment ($125K funded from reserves)

 New cemetery work in progress 2010 $94K ($164K 2006-2011)

 Water Treatment Plant 2010/2012 ($5.550M funded by $5.444M borrowing under a

Community Charter assent process)

 Taxation: overall increase of $53K (1.5%)

 Third year of tax rate re-alignment, with a focus to reduce reliance on Industrial Taxation

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2010 Taxation

Residential Business/Other Recreation/Non-Profit Farm

Grants in Lieu Water Frontage

Taxation Sewer Frontage Taxation Utility Major Industry Light Industry

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$7,686,905 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2010 EXPENDITURES $14,409,028 $810,050 $1,058,693 $1,179,771 $318,571 $326,252 $1,772,223 $19,006 $299,145 $383,529 $281,765 $273,118 $0 $1,000,000 $2,000,000 $3,000,000

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$1,721,561 $396,680

Year 1 2010 - Capital Funding $7,686,905

Reserves Borrowing Grants Operating

$125,000

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Year 2 – 2011



Assuming base costs & revenue increase of (2%) for

inflation



Assuming taxation increase (2%)



Major Projects ($651K, notes on ≥$50K):

 Leisure Services ($89K)

 Fire hall roof 2010/2011 (balance of $50K)  Pumper replacement (1970) by 4 year lease

General road maintenance ($150K)

 General road maintenance ($150K)

 Lights and arms at Benson Railway crossing ($150K reserve funding of

$78K)

 Replacement of vehicles and equipment ($82K, funded from reserves)  Water Treatment Plant 2010/2012 ($5.550M funded by $5.444M

borrowing under a Community Charter assent process)

 Water upgrades wellhead protection plan ($60K)  Waste Water ($nil)

 Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve

for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

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Year 3 – 2012



Assuming base costs & revenue increase of (2%) for

inflation



Assuming taxation increase (2%)



Major Projects ($576K, notes on ≥$50K):



General road maintenance ($194K)

General road maintenance ($194K)



General storm and drainage maintenance ($100K)



Replacement of vehicles and equipment ($194K, funded from

reserves)



Water Treatment Plant 2010/2012 ($5.550M funded by $5.444M

borrowing under a Community Charter assent process)



Wastewater ($nil)

 Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve

for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

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Year 4 – 2013



Assuming base costs & revenue increase of

(2%) for inflation



Assuming taxation increase (2%)



Major Projects ($710K, notes on ≥$50K):



General road maintenance ($173K)

Sidewalk improvements ($215K)



Sidewalk improvements ($215K)



Leisure Services development ($100)



Replacement of vehicles and equipment ($212K,

funded from reserves)



Water upgrades ($nil)



Wastewater upgrades ($nil)

 Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve

for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

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Year 5 – 2014



Assuming base costs & revenue increase of

(2%) for inflation



Assuming taxation increase (2%)



Major Projects ($547K, notes on ≥$50K):



General road maintenance ($102K)



Sidewalk improvements ($200K)



Sidewalk improvements ($200K)



Leisure Services development ($100)



Replacement of vehicles and equipment ($85K,

funded from reserves)



Water upgrades ($nil)



Wastewater upgrades ($nil)

 Note: The equipment system, Water Fund and Wastewater Fund transfers to reserve

for future capital expenditures are sufficient to cover the annual amortization budget. General Fund infrastructure requires more funding to cover the amortization.

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