TAMRMS#: B06
7.1
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Capital Funding Alternatives
Presented by: Stephen Graham, Senior Business Analyst, Financial Services
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RECOMMENDED MOTIONS
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1. That Policy C-FS-05 Budget and Taxation Guiding Principles (Section 14.b.ii) be amended to distribute new assessment growth as follows:
a. 25% to offset the base budget
b. 10% to increase contributions to life cycle reserves
c. 65% to fund new initiatives
2. That Policy C-FS-05 Budget and Taxation Guiding Principles (last paragraph of Section 14.a) be replaced as follows:
"As part of the annual budget the equivalent of a 1.50% property tax increase, less the amount calculated in Section 14.b.ii, be included in the municipal tax requirement and specifically targeted to capital reserves to support the repair, maintenance and replacement of existing capital assets."
3. That this planned increase remain in effect at the stated levels until the earlier of 2040 or the point in time that more robust data from the asset management plan suggests that an alternate plan or schedule is warranted with the first reassessment scheduled no later than 2027.
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PURPOSE OF REPORT
In June 2019, Council was presented with a recommendation to increase property taxes by 1.5% for 20 years to close a funding gap related to RMR (Repair, Maintain, Replace) capital requirements. This recommendation followed two previous presentations in March and June 2019. Council supported the recommendation to a limited degree, approving a three-year 1.5% tax increase to support the RMR funding requirements. A subsequent motion was put forth by a member of Council requesting alternative solutions to the RMR funding gap. This paper addresses that motion. The analysis used to prepare this report only considers municipal assets (excluding land). Utilities capital assets are funded through utilities rates and therefore are not a part of this analysis.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Strategic ...
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