2019 BUDGET SUMMARY March 12, 2019

Budget Process Each department submits core, supplemental and capital requests Finance prepares preliminary figures regarding the additional tax revenue required to balance the budget Senior staff meet to deliberate and agree on potential budget reductions to achieve varying levels of tax increases consider available staff and time resources ability to defer items prioritization of all requests

OPERATING

Creation of Scenarios Anticipated revenue calculated based on range of percentages Property tax revenue estimated based on Completed Roll assessed values (Increase of $378M or >10.6%) PILT revenue based on assessed value figures provided by Public Works Canada (Increase of $47M or 4.5%) Calculations could change slightly once final assessed values produced (March 31) or if items are added/removed from Financial Plan

Revenue Increase Class BCA Increased Value PILT Increased Value 2018 Mill Rate Additional Revenue 1 $362,282,900 $23,628,000 3.698280 $1,427,206 2 64,500 19.26066 1,242 4 958,200 (2,378,700) 30.41794 (43,209) 5 1,566,500 15.59522 24,429 6 13,255,450 23,384,100 11.88120 435,322 8 252,700 2,662,000 4.247850 12,381 Total $378,380,250 $47,295,400 1,857,371

Fiscal Challenges Within the draft Financial Plan there are supplemental increases for the police and library budgets as well as negotiated and estimated wage and benefit increases. The 2018 budget commitments amount of $210,469 consisted of: Municipal Flooring and Painting Traffic Study Costs Development Services Departmental Changes With a motion to be discussed later tonight about the South Island Prosperity, if this expenditure were to be approved by Council, the percentage increase relating to these items as they stand would be almost 3%

Operating Requests Total Core Expenditure Increase = $121,168 (0.60% increase) Excluding wage increases and EHT impact Total Supplementals = $1,470,166 Previously Approved = $34,621 Discretionary = $1,435,545

Scenario #1 – Budget Target @ 1%

Scenario #2 – Budget Target @ 2%

Scenario #3 – Budget Target @ 3%

Budget Reductions @ 3%

Scenario #4 – Budget Target @ 4%

Budget Reductions @ 4%

Scenario #5 – Budget Target @ 5%

Budget Reductions @ 5%

MUNICIPAL COMPARISONS Municipality 2018 Residential Mill Rate 2018 Total Taxes and Charges Esquimalt 3.6983 $4,025 Central Saanich 2.8621 $4,574 Colwood 3.0381 $3,538 Langford 2.4624 $2,906 Oak Bay 2.4748 $7,516 Saanich 2.9529 $5,412 Sidney 2.4815 $4,151 Victoria 3.2889 $5,416 View Royal 2.3822 $3,560

MUNICIPAL COMPARISONS Municipality 2018 Business Mill Rate Esquimalt 11.8812 Central Saanich 6.1520 Colwood 13.3449 Langford 7.1411 Oak Bay 6.2902 Saanich 12.5655 Sidney 7.0680 Victoria 11.6261 View Royal 8.5761

CAPITAL

CAPITAL REQUESTS – FUNDING SUMMARY

CAPITAL REQUESTS – DEFERRED

Council Direction Alternatives: Direct staff to present tax rate calculations based on a recommended tax rate increase scenario Revise recommended scenarios and direct staff to present tax rate calculations based on amended scenario Direct staff to present additional tax revenue increase scenarios