Budget and Financial Plan

Overview and context

This draft budget is presented in a time of ongoing uncertainty in the financial environment.  High inflation, high interest rates, lingering impacts of the COVID-19 pandemic including supply chain issues and the potential for a recession are all factors contributing to this uncertainty.  These factors impact the ongoing business of the Township resulting in a fiscally challenging environment which is expected to persist for the remainder of the year.

This draft financial plan as presented provides for the continuation of services as well as enhancements to services which have been deemed to be a priority by Council.  Some of those priorities are improved public safety, faster development application processing and planning for future amenities within the rapidly growing community.

To provide additional flexibility in a year of ongoing uncertainty, the capital budget has been adapted to provide more ability for Council to adjust the plan as the year progresses and priorities evolve or financial information changes.  The majority of previously approved and commenced projects with no additional funding requests in 2023 are moving forward as planned.  These have been prioritized based on outstanding commitments, safety risk mitigation and sensitive timelines.  Those projects requiring new funding and all new projects will be evaluated by Council to ensure alignment with current priorities.  The objective is to sustain existing infrastructure, ensure health and safety and plan for future new infrastructure to support a fast- growing community.

Budget sessions have been posted on the website at TOL.ca after each presentation and feedback will continue to be solicited thru March 27, 2023.

Universal services budget 

Universal Services includes Parks, Transportation Utility, Stormwater Utility, and General (which includes Fire, Police, Recreation & Culture, Facilities, and General Government).

The Draft 2023 budget reflects an overall property tax increase of 4.92%.  In establishing this budget and the resultant tax rate, all costs and sources of revenue were carefully reviewed to reduce the impact of inflation as much as possible.

Highlights – universal budget

Base Budget Cost increases net of efficiencies:  Inflationary increases are impacting the cost to deliver services across all operating divisions.  The cost of contracted services in areas such as recycling, traffic control, mowing services, natural gas costs, and animal control services have all increased to maintain current service levels.  This also includes the cost of general wage increases due to inflationary pressure and the offsets of cost cutting measures taken.

• Firefighters:  This increase includes the costs for the annualization of 6 firefighters added in 2022 as well as the addition of 11 firefighters in October 2023.
• RCMP:  This includes both the annual increase for the currently contracted officers, as well as the addition of five new officers in July of 2023. 
• Bylaw Enforcement Officers:  Three officers and their required equipment has been added to the budget starting April 1,2023.
• Additional Staffing:  This includes staffing to improve service levels in areas of development application processing, finance, and tree protection.
• Removal of COVID restart grant:  In 2022, this grant from the provincial government was included in revenue to offset the impacts of the loss of recreation revenues and other costs associated with the ongoing pandemic.  This was a one-time funding source and is no longer available, therefore is being removed as a revenue source.
• Contribution to Capital:  The contribution from operating budget to the capital budget was suspended this year to ease the pressure on the budget and allow for a reevaluation of the overall capital program to ensure alignment with Council priorities.

The household impact of the proposed increase for 2023:

The table itemizes the changes to the budget and the resultant annual property tax increase for a representative household: 

Highlights - user pay utilities

The most significant increase in the User Pay Utilities costs is the increase in the regional costs budget items.  In the water utility, this is due to the increased purchase of water from Metro Vancouver because of the closure of the Fort Langley well and the cancellation of the Brookswood Murrayville water project.  In addition, Metro Vancouver increased their water rates by 2.8%.  In the sewer utility the increase in regional purchases is a result of a 9.1% rate increase from Metro Vancouver.

Solid waste rates have been frozen for several years but in the current year there have been significant increases in the collection and disposal costs resulting in the rate increase. 

Funding for the capital program comes from sources such as reserves and surplus, development cost charges receipts, senior government grants, local area service funds and, as a last resort, from debt financing.  This year the capital program in the universal budget is not funded through general revenues as noted above with the removal of the Contribution to Capital in Universal Services budget.  Contribution to capital remains as a funding source in the Utility capital budgets.

The majority of previously approved and commenced projects with no additional funding requests are moving forward as planned.  These have been prioritized based on outstanding commitments, safety risk mitigation and sensitive timelines (except where they have been suspended or cancelled by direction of Council).

The remaining projects will be funded through funding envelopes provided in the budget bylaw.  Reports will be brought to Council for consideration and approved on the individual merits of the projects and alignment with Council priorities.

• Complete this survey.
• Email to budget@tol.ca.
• Call 604-533-6022.