1. Financial Plan 2014-2018 & Property Tax Policy Erin Anderson Director of Financial Services April 7, 2014

2. Community Charter Requirements  Section 165(1) “A municipality must have a financial plan that is adopted, by bylaw, before the annual property tax bylaw is adopted.”

3. 2014-2018 Financial Plan  Updated as information becomes available  Capital Project List – General

4. Administration Projects Audio/Visual Equipment - Council Chambers Citizen Surveys City Hall City Hall Reserve DCC Review DCC Review - indepth Electronic agendas Electronic records management system Telephone System Waterfront Property

5. Development Projects Boundary Expansion Directional Signage Directional Signage implementation (Consultant) Downtown Parking Signage Downtown Wayfinding Signs First Nations Protocol Waterfront Area Plan Zoning Bylaw

6. Emergency Services Fire Services & Police Emergency Services Back up generator - FJCC Storage container - FJCC Fire Fire Hall Reserve Firefighters Turn-out Gear Fire Hall Upgrade Police Close Circuit Video Equipment (Mandatory 2015) RCMP building generator

7. General & IT General Infrastructure Deficit allocation Information Technology Active Network Software (Class) start-up VMHOST3 Mobile Version of Website Sharepoint Server Vadim - upgrades to platform support & Vadim Open

8. Parks Bleachers for Base Ball fields Dog park Dugouts & storage roofs Dugouts & storage roofs Aggie Holland creek Ball Field Washrooms Holland Creek Bridge Replacement Holland Creek Trail assessment/improvements Holland Creek Trail improvements Holland Creek Trail washrooms Information Boards - Holland Cr 6th & Methuen LMS Walkway Lot 108 Phase 2 Soccer nets Trans Canada Trail feasibility study (grant dependent) Transfer beach foreshore improvements Transfer Beach Picnic tables Tree replacement Program

9. Playgrounds Recreation Playgrounds Aggie Field playground Playground - Transfer Beach Root Street playground Transfer Beach Playground (Rotary) Recreation Expand fitness centre - FJCC Fitness Equipment - FJCC Weight Machines

10. Building Maintenance Lower parking lot paving -FJCC 2nd Floor Air Handling Unit- FJCCMachine Shop Building Condition Assessment Admin office roof Air Handling Unit - FJCCMain pool sand filter – FJCC Air Handling Unit - City HallOasis Pool - Boilers – FJCC Boiler Retrofit - PWOasis Swimming Pool filter – FJCC Change room floor replace - FJCCPool vacuum – FJCC Charging Station - FJCCReception Area safety upgrades- FJCC Direct Digital Control System - FJCCRemote Lighting software - Aggie & FF Domestic Hot Water Boiler Shower - FJCCRooftop Air Handling Unit-Aquatics - FJCC Energy upgrades - FJCCShower Flooring - Forrest Field Floor scrubber - FJCCSportsman shelter Roof TB Heater washroom - Transfer BeachSwimming Pool Boilers - FJCC Kinsmen Shelter Roof - TBWashroom upgrades- Aggie Lighting upgrades - AggieWater fountain Forrest Field Lighting Upgrades - FJCCWater hydration stations - FJCC Locker replacement - FJCCWhirlpool Boiler - FJCC

11. Public Works Projects Annual sidewalk repairsMaster Transportation Plan Communications System UpgradeOrnamental Streetlights - inspection Dogwood Drive Bridge Capacity AssessmentParking at aggie Equipment - BobcatPavement Management Strategy Equipment - SanderPavement Reconstruction Equipment replacementPavement replacement Equipment Replacement - 3 pickupsPaving: 4th Ave, Methuen to Belaire Geotechnical Investigation 2nd AvenuePublic Works Wash Station and Liquid Collection GIS implementationSafety Upgrades to 1st Avenue Golf course culvert replacementSecond Road Egress to Marina Gourlay Janes park retaining wall replacementSidewalk repairs High St sidewalk & gateway - only if High St developmentSubdivision Bylaw Industrial Access Road - South Ladysmith - (split)Symonds reconstruction Work order/asset softwareWalking Path Storm main Replacement Storm Water Asset Replacement Symonds storm sewer replacement

12. Property Taxation Policy direction

13. Requirements of the Community Charter  S.165  Objectives and Policies for the planning period  Portion of revenue from:  Property Taxes  Parcel Taxes  Fees  Other  Borrowing

14. 2013-2017 Policy  The Town will review all user fee levels to ensure they are adequately meeting both the capital and delivery costs of the service.

15. Sources of Revenue Revenue2013 % total 2014 DRAFT % total Property Taxes $6,781,99929.99%$7,035,34028.11% Grants in Lieu 158,2500.70%165,1630.66% Parcel Taxes 1,349,8505.97%1,389,8145.55% User fees & Charges 3,059,32713.53%3,049,66612.19% Other Sources 454,9212.01%484,4221.94% Borrowing 4,729,00020.91%4,060,00016.22% Government Grants 1,313,0515.81%5,336,77721.32% DCC's & Reserves 381,6251.69%331,6251.33% Own Funds 4,085,43918.06%2,850,84511.39% Library 303,4561.34%328,0181.31%

16. Distribution of Property Tax  The residential property class provides the largest proportion of property tax revenue. This is appropriate as this class also forms the largest portion of the assessment base and consumes the majority of Town services.

17. 2013 Property Tax Objective  In 2013, maintain the Major Industry (Class 4) tax dollar levy. Over 2014-2017, reduce the share of property tax paid by Class 4 by at least 2 percent.  In 2013, Council directed the Residential Class (Class 1) tax increase to be no more than 5% after new construction figures and that the Business/Other Class (Class 6) increase be no more than half of the Residential (Class 1) increase. Over 2014-2017, maintain the Class 6 tax levy increase to be no more than half of the Class 1 tax levy increase.

18. 2013 Property Tax Distribution Policy  Supplement, where possible, revenues from user fees and charges to help to offset the burden on the entire property tax base as a result of the reduction in the tax share paid by major industry (Class 4).  If a tax shift to other property classes is required as a result of the reduction in the tax rate to major industry (Class 4), Residential (Class 1) should be the first to absorb any such shifts.  Continue to maintain and encourage economic development initiatives designed to attract more light industry, retail and commercial businesses to invest in the community. New investment from these areas will help offset the reduction to major industry (Class 4) while providing more revenue for the Town.  Align the distribution of tax rates among the property classes with the social and economic goals of the community, particularly to encourage economic and environmental sustainability opportunities.  Regularly review and compare the Town’s distributions of tax burden relative to other municipalities in British Columbia.

19. 2009 – 2013 Distribution of Property Tax

20. How does Ladysmith compare? Difficult to compare…

21. Ranking of Class 1  Provincially  115/161 for rate (4.8096)  95/161 for percentage of taxes (69%)  118/161 for per capita ($588)

22. Residential Class % of Total Assessment

23. Ranking of Class 4  Only ranking municipalities with Class 4  104/105* for rate (97.3893)  44/77 for percentage (13%)

24. Major Industry Class % of Total Assessment

25. Class 4 Properties - $945,952 Owner2013 Assessment2014 Assessment Western Forest Products Inc4,019,0003,479,000 Western Forest Products Inc 5,244,0005,507,000 Doman-Western Lumber Ltd 424,000423,000 Oak Bay Marina Ltd 11,200 Western Forest Products Inc 14,900 Total (Class 4)Assessment9,713,1009,435,100

26. Does Council wish to continue with the policy of levying the Class 4 properties at a total dollar value of $945,952?

27. Ranking of Class 6  129/161 for rate (14.7969)  64/161 for percentage of taxes (16%)

28. Business/ Other Class % of Total Assessment

29. Does Council wish to maintain the current policy: Over 2014-2017, maintain the Class 6 tax levy increase to be no more than half of the Class 1 tax levy increase.

30. Recreation Non-profit Class % of Total Assessment

31. Ranking of Class 8  33/161 for rate (2.7162)  51/161 for percentage of taxes (0%)  Only 4 Properties:  Ladysmith 2101 Home Society  Oak Bay Marina (2 properties)  Ladysmith Maritime Society (non-exempt portion)

32. Recommendation: Increase the tax reliance on Class 8 to reflect the assessment changes to this Class.

33. Questions?

34. Provincial Multiples  Class 1 Residential 1.0 : 1  Class 2 Utilities 3.5 : 1  Class 4 Major Industry3.4 : 1  Class 5 Light Industry3.4 : 1  Class 6 Business/Other2.45 : 1  Class 7 Managed Forest3.0 : 1  Class 8 Recreation1.0 : 1  Class 9 Farm1.0 : 1