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Five-year financial plan

2018 Budget
 (11.5 MB)

2018 Budget Highlights
 (670 KB)

The purpose of the five-year financial plan is to provide a longer-term projection on our revenues and expenses, as well as insights on potential pressures and risks.

Many decisions have multi-year impacts. Developing an operating plan for the five-year period will enable more informed planning and decision making.

Operating revenues are expected to increase by an average of 4.4% per year from 2018-2022.

Operating revenues

  • Property tax increases are projected to be on average 3.9% for the period of 2018-2022
  • Increased property taxes from new construction based on historical trends
  • Property tax and utility fees combined, projected on average at approximately 4.7%-5.5% for 2018-2022
  • Program fee and other user fee increases in line with inflation at 2%
  • Higher licence and development fees in 2018 and 2019 are in line with the 2017 review of fees for Rezoning, Development, Building and other related permits conducted in late 2017. These fees are increased to offset costs that will be added in 2018 and 2019.
  • Growth in parking and bylaw revenues in 2018 due to increased parking activity and additional meter hours.

Operating expenditures

Operating expenditures are projected to increase by an average of 4.4% per year from 2018-2022.

This is primarily driven by the following assumptions:

  • Increases in department budgets in line with forecasted inflation over the five years will fund a portion of fixed cost increases.
  • Expenditures in 2018 and 2019 reflect higher staffing costs in Development, Buildings, and Licensing; Planning, Urban Design, and Sustainability; Engineering Services; Human Resources and Legal Services, in line with the 2017 permit fee review.
  • Increases to regional utility charges are assessed by Metro Vancouver to fund regional infrastructure improvements, including costs associated with the Iona Island Wastewater Treatment Plant site preparation for secondary treatment.
  • General debt charges are expected to increase by $1.5 million in 2018, $1.6 million in 2019, and $0.6 million in the years 2020, 2021, and 2022, based on planned borrowing to support the capital program.
  • The 2019-2022 plan includes funding for operating impacts of capital projects, multi-year impacts of implementing the VPD Operational Review recommendations, limited new investments in future budgets as well as transfers to replenish the general revenue stabilization reserve. These were drawn down due to snow readiness and other emerging events.