Annual Budgets

The City is proposing to collect more in property taxes this year to cover rising costs related to factors such as: inflation; labour costs including WorkSafeBC premiums; employee benefits; insurance; improvements to services, facilities, and infrastructure; and increased demand for City services. Nearly eight (7.99) percentage points (equal to $3,866,000) of the proposed 11.33 per cent tax rate increase would be used to fund increases to the operating budget to maintain the same levels of service provided in 2022.

One percentage point (equal to $485,000) is for the Asset Renewal Levy, which funds the replacement of existing critical infrastructure, amenities, and facilities. And just under one (0.93) percentage point (equal to $450,000) is due to the 2021 change in use of property owned by Mill and Timber Products Limited, which moved from the heavy industry tax classification (Class 4) to business/other (Class 6). The remaining percentage point (1.41), representing net new funding of $687,000, would address increased demand for services.

Read more about what’s behind the proposed tax rate increase in City staff’s 2023-2027 Draft Five Year Financial Plan report presented to Council at the February 21, 2023 Finance Committee meeting. You can also watch a video recording of the meeting.

What’s driving increases to the budget? The following are the drivers for 2023:

Revenue

• Development and construction related application and permit revenues, investment and grant revenue are projected to increase by $1,423,000 (2.93%).
• Recreation revenues, digital billboard and transit shelter revenues, and Lease revenues for City-owned facilities are projected to decrease by $389,000 (0.80%).

Salaries and benefits

• Salaries and wages have increased by $1,725,000 (3.56%), representing estimated collective agreement increases for all the bargaining units and management.
• General benefits have increased by $395,000 (0.81%) for WorkSafeBC premiums, extended health benefits, the employer portion of the Canadian Pension Plan (CPP), Employment Insurance (EI), and the Employer Health Tax.

Operating expenses

• Operating expenses are increasing by $492,000 (1.01%), representing inflationary increases for operating expenses such as insurance, equipment, contracted services, utilities, legal services, professional services, leases, etc.

Reserve transfers

• Transfers to and from reserves are increasing by $1,415,000 (2.92%). This increase is primarily related to the increase in development related revenues noted above.

The 2023 increase for City services is $2,993,000 (6.17%).

The Port Moody Police submitted their Provisional Budget in November 2022, and their amended budget on February 21, 2023 which had minor adjustments based on updated information, and represents an increase of $878,000 (1.81%) over 2022 (excluding new position request).

The subtotal for operations (City and Police) is an increase of $3,871,000 (7.99%) for 2023.

Capital asset levy

• The Capital Asset Levy has increased by an estimated 1% or $485,000 to ensure that the Asset Reserve and associated capital envelopes have sufficient funds to renew and replace critical city infrastructure.

Growth stabilization reserve

• The Mill and Timber site on the Port Moody waterfront was reclassified from a Class 4 (Heavy Industry) to Class 6 (Business/Other) in 2021, resulting in a significant tax shift for 2021. The City utilized the Growth Stabilization Reserve to smooth the impact over three years. The reserve transfer was reduced by $450,000 in 2023 (year three of three), which represents a 0.93% tax increase.

The total before reinstated new service or new funding requirements to meet increasing service demand is a 2023 budget increase of $4,806,000 or 9.92%.

New revenue

• Preliminary estimates for 2023 Growth or Non-Market Change (NMC) are $700,000 (1.44%). These figures may be further refined as updated information is received from BC Assessment.

Reinstated services

• The reinstated services, removed in the 2020 austerity budgets total $294,000 (0.61%) for city and community events.

New positions to meet service demands

• Staff have submitted a variety of new positions to meet ongoing service demands across the city.  This totals $897,000 (1.85%) and represents 8.63 FTEs funded through taxation.

New operating expenses to meet service demands

• Staff have submitted a variety of new operating expenses to meet ongoing service demands across the city.  This totals $196,000 (0.40%).

The total draft budget increase, including reinstated new service and new funding requirements to meet increasing service demand is $5,493,000 or 11.33%.

Our operating budget covers spending related to the day-to-day operations of City departments. These daily expenses help to keep our streets and homes safe, and ensure that we have clean water running through the taps, garbage and recycling trucks on the road, and recreational and cultural facilities open for the public. Typical examples of operating expenses are:

• employee salaries and wages
• supplies, materials, and equipment
• property, liability and vehicle insurance
• maintenance

The City's capital budgets fund larger, long-term projects, mostly related to maintaining, upgrading, and replacing the City's infrastructure and facilities. It's important to make long-term plans for scheduled maintenance and replacement of these valuable, tangible capital assets to ensure they are in place to deliver services. The capital budget works to advance Council’s strategic plan within our long-term financial capacity.

Types of projects funded

• budget guidelines approved by Finance Committee – July

• budget packages distributed to departments – July

• budgets drafted by departments – July to September

• department budget reviews with Finance – September to November

• Council deliberations – October to April

• public consultation – February

• public budget presentations – December to April

• Council adopts budget – historically, April and May

• tax rates set – prior to May 15 (as per Community Charter)

• taxes due on first business day after July 1st (covering costs for services from January 1 to December 31)

See the table below for 2022/2023 milestone dates as well as links to City Council meeting agendas, presentations, and videos.