2022 Financial Plan
The Five-Year Financial Plan, which allocates the funds and resources to complete the work plans and business plan tasks, is developed based on City Council’s Strategic Plan, which sets the high-level goals and objectives for the community. The City of Port Moody’s Long Term Strategic Financial Framework, the Asset Management Investment Plan, the 2020 Climate Action Plan, as well as the various master plans guide the financial planning process to ensure resources and infrastructure are properly funded and spent in a financially sustainable manner.
The process begins with specific Budget Guidelines that are approved by Council to guide staff to prepare a sustainable Financial Plan, which considers the following:
- The services and level of service residents expect;
- Revenue including the relative level of taxation for residents;
- Businesses and diversification options;
- The level of taxation subsidies for programs; and,
- The level of funding for assets critical to deliver the services.
Delivering on Council’s priorities, while making sure we are planning for a sustainable future for our city and its residents, is an annual challenge. Specific challenges include funding the replacement and maintenance of critical assets, recruiting for skilled labour in a competitive employment market, incorporating new revenue opportunities under a limiting Community Charter, managing sustainable growth and development, and balancing the needs and wants of the community regarding the scope and breadth of services and/or the level of services delivered.
In developing the 2022 budget, the City was faced with the continued pressures and uncertainty around COVID-19, while looking to re-establish pre-pandemic levels of service and deal with the financial pressures of two years of austerity budgets in response to the pandemic.
The total 2022 staff budget submission was initially $3,606,166 which equates to an approximate 7.81% tax increase. This represented the budget staff felt, in their professional opinion, was required to move the City forward and deliver the level of service some of our neighbouring municipalities provide for their businesses and residents.
However, the Executive Leadership Team (ELT) recognized that taxpayers are facing difficult financial times, and that other municipalities may be more fortunate to have access to other funding streams not available to the City. ELT reviewed the staff budget submission and recommended several adjustment and reductions to decrease the overall tax increase. It must be noted that the recommended reductions did come with an added level of risk, and therefore, must be carefully considered and balanced against current and future service delivery impacts. These reductions (included the elimination of new positions funded through taxation) result in a proposed operating budget increase of $2,756,000 or an estimated 5.97%tax increase for the average residential property.
This budget was presented to the community in the 2022 Budget Consultation, which was facilitated through engage.portmoody.ca, the City’s online engagement hub. Participants registered to learn about the City’s financial plans and projects, share ideas, and provide feedback. Between February 8 and February 28, 2022, participants had access to the annual budget survey, budget resource information, FAQs, and could pose questions and comments to staff. 288 individuals completed the online survey and 146 (51%) individuals provided feedback or comments for Council members.
73% of survey respondents indicated that they received good (63%) or excellent (10%) value in relation to the taxes and utility fees that they pay. 49% of survey respondents wanted to maintain current service levels through a tax increase. 27% of respondents wanted to keep tax rate the same as last year through reduced services levels; in contrast, 12% wanted enhanced service levels through a larger tax increase.
The results from the public consultation undertaken for the 2022-2026 Five-Year Financial Plan were presented to the Finance Committee on March 15, 2022.
In an effort to further reduce the financial burden on taxpayers, Council approved further reductions to the 2022 budget. These included general budget adjustments ($310,000 – 0.67%), revenue adjustments ($117,500 – 0.25%), and service adjustments ($152,000 – 0.33%). These adjustments to the 2022 Financial plan resulted in a final 4.71% tax increase over 2021.
This represents a 3.71 per cent increase to the City’s operating budget, which covers spending related to the day-to-day operations of City departments, and a 1.0 per cent increase to the Asset Renewal Levy, which funds the replacement of existing critical infrastructure, amenities, and facilities. Review the 2022-2026 Five Year Financial Plan for more detailed information about our budget and financial plans.
