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 revenue is projected to increase by an average of 2.7% per year from 2018-2021.
This increase is primarily driven by the following broad financial assumptions, in line with the Long-Term Financial Sustainability Guidelines:
- Property tax increases in line with Conference Board of Canada forecasts for the period of 2018-2021
- Increased property taxes from new construction based on historical trends
- Property tax and utility fees combined, projected on average at approximately 3.1%-4.4% for 2018-2021
- Program fee and other user fee increases in line with inflation at 2%
- Growth in parking and bylaw revenues in 2017 due to increased parking activity and additional meter hours. Parking revenues are expected to increase in 2018-2021 in line with other user fees at 2%.
Operating expenditures are projected to increase by an average of 2.7% per year from 2018-2021.
This is primarily driven by the following assumptions:
- Increases in department budgets of 2.3% per year which will fund fixed-cost increases and operating impacts of capital projects with limited new investments in future budgets.
- 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, $0.6 million in 2020, and $0.6 million in 2021 based on planned borrowing to support the capital program.