Lake Country Approves 2010 Budget

Council met tonight to deliberate on the 2010 Annual Budget. All Council members were present and staff management was in attendance to provide the report and answer any questions. The approved budget will have to be formalized into a 5-Year Financial Plan Bylaw, which, along the Tax Rate Bylaw for 2010, must be approved by May 14, 2010. With Council's resolution tonight, staff have sufficient direction to take lake Country's budget to the next and final steps.

TAX INCREASE
The 2010 Budget was approved with a tax increase equivalent to 3.48%. This means an increase of $46.74 for a house assessed at $502,000. To put things in perspective, 1% increase applied to the whole community is equal to about $75,000.

This increase will maintain the same level and number of services residents are already receiving, plus will cover inflationary and contractual increases, items already approved by Council (i.e. an extra RCMP officer starting on July 1), adjustments required due to budget shortfalls (i.e. volunteer firefighter emergency call outs), the annualized increases of the prior year's budget decisions, and, finally, accommodate some supplemental requests for service adjustments.

SUPPLEMENTAL REQUESTS (ADDITIONAL MONEY TO THE BASE BUDGET)
Council met a few times to review staff proposals on supplemental requests. These requests, if and when approved, become part of the operational base budget and are annualized.

Council had much discussion about what should be approved for 2010 and decided to approve the following service increases for a total of $100,250:

• Additional support to the Chamber of Commerce ($5,000)
• Increase to the volunteer firefighters' stand-by pay ($10,000)
• Together with the Central Okanagan Regional District and other local governments in the region, fund an update on the regional aggregate supply and demand ($4,500 - one time only cost)
• Increase from part-time to full-time of 1 Facilities staff ($23,250)
• Hiring of 2 Summer Students to assist during busy summer park maintenance time ($4,000)
• Grant increase to the Lake Country Museum to assist with their operations ($8,500)
• Hiring of an extra Water Operator ($45,000)

Council also cut some existing budget. They cut $10,000 from the Community Hall Capital Improvement Grant Program and $30,000 in the Transit base operating budget.

The total Operating Budget for 2010 will be a bit short of $13 million.

2010 CAPITAL BUDGET (INFRASTRUCTURE & EQUIPMENT/APPARATUS)
The total cost of capital expenses for 2010 will be distributed as follows:

• General Capital Expenses - $3.2 million
• Water Capital Expenses - $6.4 million
• Sewer Capital Expenses - $0.9 million

Some of the capital expenses include provision of funds for the new Official Community Plan and Development Permit Guidelines, Heating and Air System in the RCMP building, a new Ladder Fire Truck and other equipment to increase response capacity of the Fire Department, placement of utilities in the Main Street underground, Bus Stop improvements, Signs for the new Tourism Sign program, fund for a study on a Glenmore Road Bike Path, completion of the Winfield Arena upgrades, Tennis Court construction, expansion (Stage 3) of the Wastewater Treatment Plant, expansion of Infiltration Galleries, Kal Lake Booster Pump, reservoir and Ultraviolet Disinfection (this project is funded also through federal and provincial government grants), Woodsdale Waterline expansion, and Lakepine Water Utility upgrade.

BUDGET SUMMARY AND CONSIDERATIONS
In addition to the General Budget, the District also operates water and sewer accounts that are separate. In addition to the tax increase for general expenses, Council, upon recommendation of the Water Advisory Committee, approved a Water Fee increase of $12 per year (2.6%) and a fee increase for agricultural properties of $1.50 per acre per year (2%). In other words:

• Property tax increase will be 3.48%;
• Water fee increase will be 2.6% (agriculture properties -2%);
• No increase to the sewer fees (0%);
• No increase to garbage fees (0%).

From my perspective as District Administrator and going through my first budget in Lake Country, I was pleased to observe the level of commitment of Council members and staff to the community. Although we are facing tough economic times, no increase to property taxes would damage the level of services provided to the community and seriously hinder future response to growth and quality of life. With an additional $47 a year, the taxpayers are receiving a good deal and laying the foundation for a sustainable response to a balanced approach to living in Lake Country, which will hugely pay back in the long term. Also, there are signs of recovery that will assist with future budgets. I personally believe that tax increase lower then 3.5% was reasonable and necessary.

In addition to this, we are also proactively bringing some services in house without extra cost to the taxpayers, in order to more promptly respond to a number of requests from our community.

One thing I wish to see in the future is the creation of a strategic approach to the budget and 5-Year Financial Plan through the implementation of a Corporate Plan based on Council priorities. This will be the next step.

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