How do we determine how City funds are spent?
Every year the Financial Planning Department collects information from department managers to determine what funds will be needed over the next 5 years for operations and projects. From this information, decisions must be made to keep taxes affordable while maintaining quality programs and services for citizens.
The City of Nanaimo was recognized for exceptional work on our 2015-2020 Financial Plan by the Government Finance Officers Association!
Citizens have an opportunity to provide their input and engage in budget discussions once a Draft Financial Plan is presented to Council. Here is how:
- Attend Council Meetings on Budget discussions
- Participate in the eTown Hall meetings (the last eTown Hall meeting was held in November 2015, no further scheduled dates at this time)
20 Year Investment Plan
On April 5, 2017, staff presented a 20 Year Infrastructure Investment Plan to Council. The plan included projected investment required over the next twenty years for current infrastructure renewal, for new/upgraded infrastructure required due to growth and for specific investment.
Development of the City's first 20 Year Infrastructure Investment Plan was led by the City's Asset Management Steering Committee and included input from the DCC Review Committee. Both committees have representation from across the organization including engineering, development, facilities, IT and finance disciplines.
The 20 Year Infrastructure Investment Plan identified a projected infrastructure investment need of $1.1 billion with current funding strategies providing $794 million. The total potential funding gap is $258 million. The gap is comprised of a funding shortfall of $117 million in development contribution charges for new and upgraded infrastructure required due to growth and $141 million for infrastructure renewal funded from general revenues and reserves. Council approved the following recommendations to close the funding gap:
- Continuation of 1% annual increase to property taxes to 2022 for contributions to the General Asset Management Fund Reserve
- Completion of the DCC Review and adoption of new rates bylaw
- Continued development of the City's asset management capacity
The 2017 - 2021 Financial Plan includes a 1% property tax increase each year for contribution to the General Asset Management Reserve. The new DCC rates bylaw is expected to be adopted later in 2017. The City's Asset Management Steering Committee is currently leading several key initiatives.
Find the report at 20-Year-Investment-Plan.
Annual Financial Plans
2017 - 2021 Financial Plan
The financial plan process is informed by policies and plans endorsed by Council, including the Official Community Plan (OCP) and the Strategic Plan. In compliance with the Community Charter, the Financial Plan is developed through public consultation and Council direction. Prior to May 15th each year, Council must adopt both a Five Year Financial Plan bylaw and a Property Tax Rates bylaw.
In 2013, Council approved an annual 1% increase in property taxes for five years ending in 2017, and annual increases to sanitary sewer and water fees for contributions to asset management reserve funds. These reserves fund many asset renewal projects.
Core Services Review
A Core Service Review was completed in 2016. Work on many of the recommendations commenced in 2016. As recommendations are reviewed and approved by Council, they will be incorporated in the City's financial plans.
Strategic Plan Update
Council completed a Strategic Plan updated in 2016. The purpose of the update was to build upon the community vision, values and commitments made under the City's previous 2012 - 2015 Strategic Plan. Five priority projects and two key initiatives were identified for 2016 - 2019. The five projects include 1 Port Drive/South Downtown Waterfront Development, Beban Park Facilities Redevelopment Master Plan, Sports and Entertainment Centre, Waterfront Walkway and Georgia Avenue Pedestrian/Cycle Bridge. The two initiatives are Affordable Housing and Property Acquisition.
Calendar and Public Consultation
2016-JUL-25 - eTown Hall - focused on strategic priorities
2016-OCT-04 - Finance and Audit Committee Meeting - Budget Review
2016-NOV-01 - Finance and Audit Committee Meeting - Budget Review
2016-NOV-16 - Finance and Audit Committee Meeting - Budget Review
2016-DEC-12 - Finance and Audit Committee Meeting - Budget Presentation
2016-DEC-19 - 2017 Five Year Financial Plan Bylaw and 2017 Utilities and Fees and Charges Bylaw approved by Council.
2017-JAN-09 - 2017 Five Year Financial Plan Bylaw adopted by Council. Referred to as the Provisional 2017 - 2021 Financial Plan.
2017-JAN-APR - Change updated to Provisional 2017 - 2021 Financial Plan.
2017-APR-12 - 2017 - 2021 Financial Plan Update presented to the Finance and Audit Committee.
2017-APR-19 - 2017 - 2021 Financial Plan Update presented to the Finance and Audit Committee with Council directed changes.
2017-APR-24 - 2017 - 2021 Financial Plan Budget Bylaw Amendment and 2017 Property Taxes Bylaw approved by Council.
2017-MAY-01 - 2017 - 2021 Financial Plan Budget Bylaw Amendment and 2017 Property Taxes Bylaw adopted by Council. Referred to as the Annual 2017 - 2021 Financial Plan.
Distinguished Budget Presentation Award
The City of Nanaimo has received the Distinguished Budget Presentation Award for the past three years. This is the highest form of recognition in government budgeting and represents "best practices" in the field.
The City plans to submit the 2017 - 2021 Financial Plan for award consideration.