News Release
Council Adopts 2011-2015 Financial Plan
The District of West Kelowna’s $101.5 million 2011 Budget and the municipality’s 2011-2015 Financial Plan were adopted April 26. The municipal portion of this year’s budget contains more than $80.3 million in revenues and matching expenditures. The remaining $21.2 million is collected and transferred to other levels of government.
Mayor Doug Findlater said the 2011 Budget includes key capital works. Most notably, West Kelowna will complete millions of dollars worth of sanitary sewer service extensions, and road upgrades and rehabilitation.
“Some of the municipality’s older neighbourhoods have homes with failing septic systems and one of Council’s highest priorities since 2009 has been to ensure that sanitary sewer service was extended to those areas,” said Findlater. “Last year, sewers were extended to 500 homes in the Gates/McGinnis neighbourhoods in Glenrosa; Pineridge Place in Westbank and the Hudson Road area of Lakeview Heights. Work that began in 2009 in the Ranch Road/Country Pines area of Glenrosa was also completed in 2010. This year, sewers will be extended to 450 homes around Thacker and Hayman Roads in Lakeview Heights and Dunbarton Road in Glenrosa. In 2012 sewer extensions will reach Webber Road North and McIver Road in Glenrosa as well as Boucherie Road North and Applegreen Court and Cameron Road in Lakeview Heights. ”
Findlater also noted that a Citizens’ Survey conducted in the fall indicated road upgrades remained a top priority. Council responded by supporting $1.25 million in road rehabilitation work throughout West Kelowna in 2011. A further $1.25 million worth of upgrades will begin on extending the popular Gellatly Recreational Corridor later this spring, the Mayor stated.
“For the third straight year our residents told us they wanted to see our aging roads upgraded. And for the third year in a row, Council is committing more than one million dollars towards improving this important infrastructure.”
This year’s budget includes a 2.24 per cent tax increase, which Council was able to reduce from an originally forecast 4.07 per cent. Findlater credited staff for finding operational efficiencies in the transit system that would reduce costs without impacting service. This year qualified homeowners are eligible for a Homeowner Grant $200 greater than in prior years. The municipal portion of property taxes on an average West Kelowna home, assessed at $475,000, will be $1,423.65 in 2011—an increase of $31.19 over 2010. The increase is necessary to bolster the new municipality’s reserves. By the end of 2011, the District of West Kelowna will have $20.4 million in reserves. By 2015, reserves are forecast to be $32.2 million.
“A Westside Governance Study recommended tax increases of five per cent annually for the first five years of incorporation, to ensure West Kelowna started off on good financial footing. Council and staff have worked together to build reserves while keeping tax increases to less than three per cent in each of the past three budget years.”
For more information on the District of West Kelowna’s 2011 Budget and 2011 to 2015 Financial Plan, go to www.districtofwestkelowna.ca, under Departments/Finance/Budget.
Media Contacts:
Mayor Doug Findlater, District of West Kelowna
Jim Zaffino, Chief Financial Officer
Kirsten Jones, Communications Supervisor
BACKGROUND
Details of the 2011-2015 Financial Plan and 2011 Budget are as follows:
Total Revenues: The total municipal tax requisition in 2011 is $22.3 million; this represents 22 per cent of the District’s total revenue. The other 78 per cent of revenues consist of:
- $24 million, or 24 per cent, from sale of municipal services
- $21.2 million, or 21 per cent, collected for other levels of government
- $11 million, or 11 per cent, from grants from senior government
- $ 9.9 million, or 10 per cent, from borrowing (sewer extensions)
- $7.7 million, or seven per cent, from miscellaneous revenue
- $3 million, or three per cent, transferred from reserves
- $2.3 million, or two per cent, from transfers from senior government
Reserves: $7.6 million will be put in reserves in 2011 bringing total reserves to $20.4 million by the end of the year. Reserves are forecast to be $32.2 million at the end of 2015.
Capital Budget: Council supports $4 million in capital projects this year, including:
- Sanitary sewer service extensions: $18.8 million
- Gellatly Road upgrades from Powers Creek going north: $1.25 million
- Road rehabilitation: $1.25 million
- HVAC installation at Johnson Bentley Memorial Aquatic Centre: $195,000
- HVAC equipment for the new Westbank Museum building: $65,000
- Pedestrian walkways: $250,000
Supplemental Requests: Services will be added or improved in the following areas:
- Support new Bylaw Adjudication process
- Increase contingency fund for Johnson Bentley Memorial Aquatic Centre
- Develop a sustainable asset management strategy
Three additional, permanent, full time staff will be hired:
- Facility Operator o Irrigation Systems Specialist
- Land Agent and Intergovernmental Liaison Officer
- Summer students will also be hired in some departments, accounting for a total of three FTEs (full time equivalent positions)
The supplemental requests break down as follows:
- $331,513 in the 2011 tax year
- $470,697 in the 2012 tax year
- $289,075 in the 2013 tax year
- $248,673 in the 2014 tax year
- $208,138 in the 2015 tax year
Tax Multiplier Adjustments: The Utilities Multiplier will increase from 6 to 7, meaning a utility pays $7 in municipal taxes for every $1 a residential property owner pays. The Light Industry Multiplier will decrease from 3 to 2.8. The rates are similar to those in nearby municipalities.
Grants In Aid: Council supports requests for financial assistance from the following nonprofit organizations:
- Bridge Youth and Family Services: $3,000
- Gellatly Bay Trails and Parks Society: $2,000
- Okanagan Boys’ and Girls’ Club Restorative Justice: $3,500
- West Kelowna Citizens Patrol Society: $5,000
- West Kelowna Yacht Club: $5,000
- Westside Canadian Red Cross: $11,700
- Westside Celebration Society (Westside Daze): $16,000
- Westside Health Network Society: $7,000
- Westside Parent Participation Preschool: $1,000
- Westside Residents and Business Association: $600
- Okanagan Symphony Orchestra: $5,000 (from Council’s 2010 Contingency Fund)
Non-cash Grants In Aid: Facility rental fees will be waived for these nonprofit organizations:
- Emergency Social Services: $205
- Girl Guides of Canada: $672
- Lakeview Heights Thursday Nighters’ AA Group: $1,000
- Mount Boucherie Figure Skating Club: $41,000
- Royal Canadian Legion (Remembrance Day Ceremonies): $1,600
- Westside Girls’ Softball: $400
- Westside Minor Baseball: $5,400
- Westside Minor Football: $800
- Westside Minor Hockey: $142,400
- Westside Ringette: $26,200
- Westside Youth Soccer: $1,200
Council Remuneration: Council’s remuneration will remain the same in 2011 as it was in 2010. Council’s Remuneration and Expenses Provisions Policy suggests remuneration be reviewed in January each year using the median salaries of Mayors and Councillors in a comparative group of municipalities. The review indicated salaries should increase for West Kelowna Mayor and Council but Council waived the policy and declined a raise in 2011.
