Budget and Financial Plan

Overview and context

This draft budget is presented in a time of continued uncertainty in the financial environment. While inflation is returning to anticipated rates, interest rates remain relatively high, and the Canadian dollar has declined. These factors impact the ongoing business of the Township and while there has been improvement, it is still a fiscally challenging environment which is expected to persist into the five-year plan.

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 and planning for future amenities within the rapidly growing community.

Capital projects which were previously approved and commenced are moving forward as planned. Those projects requiring new funding will be evaluated by Council to ensure continued 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.

Universal services budget 

Universal services includes parks, transportation utility, stormwater utility, and general (which includes fire, police, bylaw enforcement, recreation and culture, facilities, and general government).

The draft 2025 budget reflects a core services increase of 3.58% or $92.29 for the average residential home with a value of $1,502,344. In establishing this budget and the resultant tax rate, all costs and sources of revenue were carefully reviewed.

Household impact

The household impact of the proposed 3.58% increase for 2025:

Highlights - core services budget

Core municipal services

Significant changes:

• Salary, wages and benefits: the increase in salary and wages reflects trends in the labour market including union wage settlements and other issues with respect to recruitment and retention issues. These are regional trends across all sectors.

Operating efficiencies and cost cutting:

• A review of departmental budgets was undertaken by staff resulting in efficiencies and cost savings with no impact on services.
• Staff will continue to work toward finding a permanent cost saving of $1.25 million to eliminate the need within the budget for a one-time transfer from prior year surplus.
• The Recycle BC program adjusted rates to reflect updates in the recycling collection program which resulted in an increase to recycling revenue of $1.1 million.
• Council approved the repayment of the Langley Events Centre debt in 2024 resulting in a reduction of debt payments of $1.3 million.
• Other significant increases include additional insurance costs of $534,000 due to increases in worldwide insurance rates, the addition of final costs for the snow and ice control sidewalk program totalling $495,000, the return of the museum operating costs in anticipation of the reopening of $402,000, and items preapproved by Council totalling $916,000. This is offset by a reduction in the transfer to the Public Works Equipment reserve of $750,000 while a review is done of fleet requirements.
• There are also revenue increases of over $2.1 million including anticipated revenue increases for building permits and application fees.

Protective services

Significant changes:

RCMP

• This includes the annual increase for the current contracted officers of $3 million, as well as the annualization of the two RCMP officers from 2024 ($365,000).
• We are proposing the addition of two new RCMP officers in August of 2025 ($209,000). 
• In addition, there are also costs for civilian staffing, telecommunications and Next Gen911 funding.  These costs are offset by a proposed increase in the transfer from RCMP reserve of $750,000.

Fire

• This includes the annual contract increases ($1.36 million), the addition of 11 firefighters on January 1, 2025 ($1.25 million), training expenses, and protective clothing and uniforms with some savings from reduction in paid call expenses.

Bylaw Enforcement

• This includes the contract increases, the addition of two bylaw enforcement officers on February 1, 2025 ($201,000), the annualization of three bylaw enforcement officers from 2024 ($164,000), overtime costs, and bylaw enforcement vehicle rental costs.

The table below summarizes the changes to the base budget:

Infrastructure renewal

Increased budget has been put towards infrastructure renewal with additional contributions to reserves.

 Household impact

The household impact of the proposed 0.92% increase for 2025:

Library services

Consistent with prior years, the costs to operate the Township’s libraries are being presented separately and include increases which are part of our service contract with Fraser Valley Regional Library as well as costs to operate the facilities.

Highlights - library services

Fraser Valley Regional Library contract increase: This increase was a result of anticipated wage increases from contract negotiations, new wage settlements, and increased costs of library materials.

Contribution to library reserve fund: The contribution has been increased to establish a fund for future library infrastructure in the Township.

Household impact

The household impact of the proposed 9.10% levy increase for 2025:

Highlights - user pay utilities

The most significant increase in the user pay utilities costs is the increase in the regional cost budget items. Metro Vancouver increased their water rates by 7.2%.

In the sewer utility, the increase in regional purchases is a result of a 46.9% rate increase from Metro Vancouver. Of this increase 62% is related to the North Shore Wastewater Treatment Plant liquid waste levy.

Due to significant increases in the contract for the collection and disposal costs, solid waste rates have also increased.

User fee increases will provide funding for expenditure increases for salaries and wages, utility contracts, service and maintenance contracts, debt repayments, and operating costs for the water, sanitary sewer, and solid waste infrastructure.

In addition, the transfers to reserves in water and sewer were increased for new infrastructure and replacement of current infrastructure.

Household impact

The household impact of proposed changes to the utility user pay levies for 2025 is shown in the table below.  This information is based on a representative household with an assessed value of $1,502,344. An estimated growth rate for new users joining the system has been estimated at 2.00% for water and sewer and 1.11% for solid waste.

Current year proposed changes as follows:

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 debt financing.

The previously approved and commenced projects are moving forward as planned. The remaining projects will be funded through funding envelopes provided in the budget bylaw. The bylaw considers that funds will be received during the year.

Projects will only be approved if sufficient funds are available. Reports will be brought to Council for consideration and approved on the individual merits of the projects and alignment with Council priorities.

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