Budget 2024 - Town of Gibsons

Each year, Council and staff undertake a budgeting process that sets out the provision of essential services, planned initiatives and related financial parameters for the coming year and the next five years. The decisions made during this process are guided by the Strategic Plan, which helps define Council’s key areas of focus during their term.

We encourage our community to follow the annual budget process and to provide feedback to Council throughout.

How to get involved:

2024 Budget Highlights

May 7, 2024: Council has adopted the 2024-2028 Financial Plan and 2024 Tax Rate bylaw. See all the bylaws below:

Here’s what’s been approved:

  • 8% Overall Tax Increase (This includes 5% for future policing costs and 3% for general taxation)
    The owner of an average residential property valued at $920,560 would pay an additional $103.24 in municipal taxes.
  • 5% Water Rate Increase
    With water meters, users pay for what they use. A sample single-family residential property (160m3 over 6 month period) will pay an additional $45.47.
  • 5% Sewer Rates Increase
    An average single-family residential property will pay an additional $35.30.
  • $38 Garbage and Organics Fee Increase

1315, 2024 2024-2028 Financial Plan Bylaw for adoption

1316, 2024 Tax Rates Bylaw for adoption

1317, 2024 Community Recreation Facilities Parcel Tax Bylaw for adoption

1318, 2024 Sewer Parcel Tax Bylaw for adoption

1319, 2024 Water Parcel Tax Bylaw for adoption

April 23, 2024: Council gave 1st, 2nd and 3rd reading to Final Plan Bylaw & Tax Rate Bylaw

April 9, 2024: Staff presented the Final 2024 Budget Presentation to Council and were directed to prepare the Final Plan Bylaw & Tax Rate Bylaw for 1st/2nd/3rd readings for the Council Meeting on April 23.

The following motions were carried:

  • THAT the revised preliminary 5-year capital plan for general services be integrated into the 2024-2028 Financial Plan with the exception of the Dog Park and Pickleball projects which are to be removed from the capital plan and referred to the 2025 Parks Master Plan for discussion;
  • AND THAT the proposed budget for the Healthy Harbours Project be approved, with the 2024 portion being funded by accumulated surplus.
  • THAT the 2024 annual tax rates be prepared authorizing an overall 8% tax increase (reflecting 3% for general operations and 5% for future policing costs).
  • THAT the 2024-2028 Financial Plan Bylaw and the 2024 Annual Tax Rate Bylaw be prepared for Council approval.

March 19, 2024: The Committee discussed and recommended a revised version of the preliminary general services 5-year capital plan. Final budget recommendations were also provided which reflected an overall tax increase of 8% (3% for general operations and 5% for future policing costs). Direction was also provided to staff to prepare the Financial Plan and Annual Tax rate bylaws. At the Council meeting that evening, the Rates, Fees and Charges Amendment Bylaw No. 1196-23, 2024 was adopted, which reflects:

  • a 5% increase in Water Fees and Charges
  • a 5% increase in Sanitary and Storm Fees and Charges
  • an increase of $38 annually for Garbage and Organics User Rates

Bylaw 1196-23 and Schedules For Adoption.pdf (civicweb.net)

2024-03-19 Committee of the Whole – Preliminary 5-.pdf

2024 5yr Budget V1.xlsx (civicweb.net)

March 5, 2024: Staff were directed to explore reducing the proposed tax increase from 7.5% to 3%.

The preliminary budget has been revised to reflect a 3% increase instead of the 7.5% originally proposed.  The changes made to the budget proposal include removing the surplus, increasing revenues, considering service or information sharing with other local governments, and reducing professional services (e.g. legal services).

At that meeting, future policing costs were also discussed and an additional 5% increase was recommended, brining the total annual allocation to 15% of taxation revenue.

Background: At the Committee-of-the-Whole meeting on February 23, staff presented the general operations preliminary budget with a proposed tax increase of 7.5% and a projected surplus of $34,954. Council requested that staff revise the budget to reduce it to reflect 3% increase and remove the surplus.

February 23, 2024: The Director of Finance presented the Preliminary General Operations Budget at the Committee-of-the-Whole.

Total 2024 operating revenue (from all sources) reflects a proposed 7.5% tax increase and is budgeted at $9,684,034.

This is an overall revenue/funding increase of $937,804 (11%) as compared to the budget for the previous year. Total expenditures, debt payments and transfers to reserves are $9,649,080 or $1,075,350 (12.5%) higher than last year’s budget.

The net result is a budgeted surplus of $34,954. These funds can be used to support the partial financing of the current year capital/projects plan, transfers to reserves, and/or additional considerations of Council.

Council recommended that staff explore reducing the tax increase to 3% through initiatives such as increasing revenues, considering service or information sharing with other local governments, and reducing professional services (e.g. legal services) in the operating budget.

2024-02-23 Preliminary General Ops Budget Report

2024-2028 Preliminary General Operating Budget

February 7, 2024: Community Dialogue on Town Budget Priorities

The Mayor hosted a Community Dialogue at the Gibsons Public Market where members of the community were invited to ask questions and share their thoughts on their priorities for the 2024 budget.

2024 Budget Community Dialogue Presentation PDF

Notes from the Budget Community Dialogue

January 23, 2024: Staff presented the long-term financial plan and preliminary operations and capital budgets for the Town’s Water and Sanitary Sewer Services at the Committee-of-the-Whole.

Staff noted that both long-term financial plans are under significant pressure due to the combination of escalating construction costs, aging infrastructure, and the ongoing asset replacement backlog. Based on updated construction costs, the cost of addressing just the backlog translates into 28 million dollars being required to replace existing sewer infrastructure (95% are sewermains) and $12 million is required for water infrastructure (90% watermains).

A minimum 5% rate increase was recommended for 2024, recognizing that changes to Accessory Dwelling unit charges would also be affecting the rates this year, but noted that higher rate increases will be required in the future. A 5% increase for a single-family residential property would result in an additional $37.06 for sewer and $47.75 for water (sample household that used 320m3 per year).

For Sanitary Sewer, the user rate structures would be adjusted to apply one minimum charge per residential property and/or residential strata property, regardless of the number of accessory dwelling units, beginning April 1, 2024. Charges for Accessory Dwellings for Stream 2 RGAs will continue to be applied.

Furthermore, as per Council’s request, staff adjusted Garbage and Organics rate structures for consideration in the budget discussions.

The changes would include adjusting the user rate structures for Garbage and Organics services to apply one minimum charge per residential property and/or residential strata property, regardless of the number of accessory dwelling units, beginning April 1, 2024.

This option will remove the automatic charge applied to accessory dwelling units and will only apply the additional charges where service is required. This will result in a higher rate increase per user but will result in a fairer application of the user fees to those properties that use the service.

Related Documents:

2024 Sanitary Sewer LTFP Update

2024-01-23 Preliminary Sanitary Sewer and Water 5-Year Capital Plans Report

2024-2028 Prelim Sewer Capital Budget

2024-01-23 Prelim Sewer Ops Budget Report

2024-2028 Preliminary Sewer Operating Budget

2024 Water LTFP Update

2024-2028 Prelim Water Capital Budget

2024-01-23 Prelim Water Ops Budget Report

2024-2028 Preliminary Water Operating Budget

2024-01-23 Garbage and Organics Program Rate Increase

 

Upcoming Budget Meetings:

  • 23-Feb-24 – Council: Request for Pre-Budget Approvals /User Fee Increases – Council Direction to prepare bylaws
  • 23-Feb-24- Committee: Preliminary General Operations Budget
  • 05-Mar-24 – Council: Rates Fees & Charges Bylaw (1196) 1st/2nd/3rd readings (Water, Sewer, Garbage User Rates )
  • 05-Mar-24 – Council: General Operations Budget cont’d, Update #1 / Policing Report / Tax Burden
  • 19-Mar-24 – Committee: General 1 & 5 Year Capital/Project Plans
  • 19-Mar-24 – Council: Rates, Fees & Charges Bylaw 1196 adoption
  • 26-Mar-24 – Committee: CANCELLED
  • 09-Apr-24 – Council: Council direction (based on committee recommendations received). Summary Final Presentation from Director of Finance
  • 23-Apr-24 – Council: Final Plan Bylaw & Tax Rate Bylaw for 1st/2nd/3rd readings
  • 07-May-24 – Council: Final Plan Bylaw & Tax Rate Bylaw for adoption
  • 14-May-24 – Council: Deadline for Tax Bylaws

*Times may be subject to change, please confirm details one week prior to meeting.

View the full calendar at gibsons.civicweb.net

Operating Budget:
Some costs, like wages, road repairs, sewer treatment and other services are ongoing and similar from year to year. The cost of providing many of these services increases each year, due to the increasing costs of materials, wages, utilities and other factors. This is what we call the “base operating budget”. Changes to the base budget result in service-level changes and need to be approved by Council. Each year, staff submit their base operating budgets for Council’s consideration, as well as any new ongoing expenses or one-time operating expenses that may help to streamline existing processes or improve services for community members.

The general operating fund is our main operating fund that captures the costs associated with providing the following municipal services to residents and property owners:

  • Council
  • Corporate Administration
  • ICBC / Driver Services
  • Financial Services
  • Planning Services
  • Protective Services (Building, Bylaw, Animal Control)
  • Infrastructure Services
    • Municipal Buildings
    • Public Works
    • Roads, Drainage, Solid Waste, Snow Removal, Fleet
    • Parks and Cultural Services

Revenues collected to fund these municipal services include:

  • Property taxation
  • Garbage and Organic program user fees
  • Investment Income
  • Property rental income
  • ICBC / Driver Services commissions
  • Donations / Other recoveries
  • Planning and development-related licenses and permit fees
  • Operating grants from the Province of BC

Capital Budget:
Capital budget requests include major infrastructure projects like maintaining our roads, buildings and sewers, as well as major studies or assessments that are often contracted to a consultant. Some of these projects are required to maintain assets and infrastructure. Some are things that may improve physical spaces or provide new opportunities to help meet Council’s strategic goals.

General Operating Fund: The General Operating Fund is the Town’s main operating fund. It captures the costs associated with providing the following municipal services to residents and property owners:

  • Council
  • Corporate Administration
  • ICBC/Driver Services
  • Financial Services
  • Planning Services
  • Protective Services (Building, Bylaw, Animal Control)
  • Infrastructure Services
    • Municipal Buildings
    • Public Works: Roads, Drainage, Solid Waste, Snow Removal, District Energy Utility, Fleet
    • Parks and Cultural Services

Revenues to fund the services listed above come from:

  • Property taxation
  • Garbage and organic program user fees
  • Investment income
  • Property rental income
  • ICBC/Driver Services commissions
  • Donations/Other Recoveries
  • Planning and development related licenses and permit fees
  • Operating grants from the Province of BC

Budget Timeline Overview 2023-2027

October to January:

  • Staff prepare budget requests (Water, Sewer, General).

December to January:

  • Council workshop with staff on budget requirements for the upcoming year.
  • Through public engagement, Council hears from community members on their top priorities for the year.
  • With input from staff and community members, Council reviews input before formal deliberations begin.

January to February:

  • Council reviews operational and capital budget requests and considers early approval for projects.

March

  • Council continues with ongoing budget deliberations.
  • Council determines additional public engagement opportunities.

April

  • Operational and capital budget requests will be approved, deferred, or removed by Council.
  • Five-Year Financial Plan Bylaw is drafted for Council consideration.

May

  • Three readings and adoption of 5-Year Financial Plan.
    The Community Charter states that “each year, after adoption of the financial plan, but before May 15th, a council must, by bylaw, impose property value taxes for the year”.

Click here to view the full Budget 2023-2027 Timeline Overview

Click here to download the  2023 Budget Highlights PDF