TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: April 22, 2024 Report No. FIN-24-010
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: 2024 Financial Plan and Tax Rates Bylaws
RECOMMENDATION:
Recommendation
That Council approve Council Policy FIN-23 Financial Sustainability, Revenue and Tax; and that Council give first, second and third readings to Financial Plan Bylaw, 2024, No. 3137 and Tax Rates Bylaw, 2024, No. 3138 as attached to Staff Report FIN-24-010.
Body
EXECUTIVE SUMMARY:
The Community Charter requires municipalities to adopt Financial Plan and Tax Rate Bylaws prior to May 15 each year. The annal financial plan covers a five-year period and must set out the policies and objectives for the planning period. The tax rates bylaw is required for the Township to impose property value taxes to meet its obligations.
BACKGROUND:
The Financial Plan Bylaw, Tax Rates Bylaw, and the Financial Sustainability, Revenue, Tax Policy documents have been formulated based on Council discussions and direction. During meetings held in February, March and April, Council received information about the Township’s budget process and the revenue required to support their desired service levels. During these meetings, the Policies and Objectives were reviewed and the supplemental operating and capital requests were approved based on staff recommendations.
During its meeting on April 8, 2024, Council was presented with 3 tax rate scenarios for consideration. These scenarios outlined the tax revenue amount required to balance the 2024 budget as well as the impact on an average taxpayer within each property class. During this meeting, Council gave direction to proceed with a scenario which would see the generation of a 7.72% increase in the required revenue from all classes to balance the budget. The impacts of these increases are reflected in the attached bylaws.
ANALYSIS:
Adoption of the Financial Plan and Tax Rates Bylaws are required prior to May 15 each year under existing legislation. Once adopted, the bylaws would provide certainty to all Township departments regarding the availability of financial resources to fund the municipal operations and capital projects required to achieve Council’s desired service levels. As well, it would allow for staff to prepare for the issuance of notices and collection of property value taxes required to fund operations and maintain service levels.
Council Policy FIN-23 Financial Sustainability, Revenue and Tax attached to the report outlines the approved policies and objectives that will guide the Township in meeting its financial obligations. Previously, a policy document has been attached annually to the Financial Plan Bylaw however this year, the content from this document has been converted into a formal policy for improved reference, structure and maintenance. The Council Policy, once approved, will be attached to the Financial Plan Bylaw as Schedule A.
OPTIONS:
1. That Council approve Policy FIN-23; and give first, second and third readings to Financial Plan Bylaw, 2024, No. 3137 and Tax Rates Bylaw. 2024, No. 3138.
2. That Council amend Council Policy FIN-23 and/or the Financial Plan and Tax Rates Bylaws and approve the amended policy if required and give first, second and third readings, as amended.
COUNCIL PRIORITY:
Good Governance
FINANCIAL IMPACT:
Adoption of the Financial Plan and Tax Rates Bylaws prior to May 15 are necessary from a regulatory and service delivery perspective.
COMMUNICATIONS/ENGAGEMENT:
Once adopted, communication will be initiated through the Township’s website and social media regarding the tax revenue increase and other key financial plan details. Also, an information insert will be generated to accompany each property tax notice to be mailed in May. This insert will outline tax rate information as well as information about the tax deadline and available payment methods.
TIMELINES & NEXT STEPS:
This decision will allow for the financial plan and tax rate data to be uploaded into the Township’s financial systems and will facilitate the generation and issuance of property tax notices in May.
REPORT REVIEWED BY:
1. Deb Hopkins, Director of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Financial Plan Bylaw, 2024, No. 3137
2. Financial Plan Bylaw Schedule A - Council Policy FIN-23 Financial Sustainability, Revenue and Tax
3. Financial Plan Bylaw Schedule B - Five Year Financial Information
4. Tax Rates Bylaw, 2024, No. 3138
5. Tax Rates Bylaw Schedule A - Tax Rates