Date:  April 2, 1997
                                           CC File No. 1605-1

   TO:       Vancouver City Council

   FROM:     Director of Finance

   SUBJECT:  1997 Operating Budget:  Interim Report


        A.   THAT Council approve the interim estimates of the 1997
             Operating Budget as reviewed in this report and presented in
             Appendix 1.  The interim estimates represent a balanced budget
             position, including the provision for a 4.5% general purposes
             tax increase as approved by Council.

        B.   THAT Council approve the provision of $1,837,600 in transition
             funding to annualize new revenues within the 1997 estimates,
             source of funding to be $1,531,600 through a reduction in the
             provision for Capital from Revenue and $306,000 from the
             elimination of the balance in the Demolition Fee Reserve.

        C.   THAT Council instruct the Director of Finance to submit the
             final report on the 1997 Operating Budget to City Services and
             Budgets Committee on April 24, 1997 for  in principle 
             approval.   Final budget approval and presentation of the
             appropriate rating bylaws is anticipated to be before
             Committee on May 15, 1997.

        D.   THAT Council approve the Park Board Global Budget of
             $37,184,200, including $258,400 for added basic costs.

        E.   THAT Council approve the purchase of the following vehicles
             from the Plant Account:

             Engineering - Sewers     1 Service Van       $38,000
             Property Management      2 - 3/4ton Vans     $45,000

        F.   THAT the City Debenture issue, Bylaw# 5257, be redeemed in
             June 1997, and that the unfunded principle repayments due at
             that time be funded from the Debt Charges Equalization Reserve
             ($746,000) and the Water Rates Stabilization Reserve


        The General Manager of Corporate Services, with the concurrence of
        the Corporate Management Team, RECOMMENDS approval of A to F.


   The Vancouver Charter requires that the operating estimates of the City
   be reported to Council by April 30 each year.  There are generally three
   reports to Council in the budget building process. 

   The Preliminary Budget Report provides Council with the first indication
   of the budget requests from Departments and Boards and seeks Council
   guidance on the policies that will govern the administrative review of
   the estimates.  This report was considered by Council on February 4 and
   subsequent action on the estimates was taken on February 6 and 20.

   The Interim Report summarizes the results of the detailed administrative
   review of the budget and seeks Council approval to finalize the
   estimates, bringing the budget into balance.

   The Final Report on the Operating Budget presents the finalized revenue
   and expenditure estimates including any final adjustments approved by
   Council at the interim report stage.


   The purpose of this report is to review the 1997 Operating Budget as
   revised since Council considered the Preliminary Report on February 4
   and to seek Council approval of the measures necessary to finalize the
   estimates.  The report also reviews the Park Board Global Budget
   arrangement and recommends a funding level for parks and recreation
   programs for 1997.


   On December 10, 1996, the Director of Finance presented the projections
   for the 1997 Operating Budget to Council.  Those projections, including
   the reduction of $17.2 million in transfer payments from the Provincial
   Government, indicated that the City faced a potential general purposes
   property tax increase of 8.2% for 1997.

   Council authorized a comprehensive public consultation process called
    City Choices  that included an information flyer delivered to Vancouver
   residents, an Angus Reid Group survey of public opinion and the Mayor s
   Forum, involving meetings with community groups and individuals.

   On February 4, 1997, Council received the 1997 Operating Budget -
   Preliminary Report and approved a series of recommendations dealing with
   new revenues and expenditure reductions aimed at addressing the budget
   difficulties.  In addition, Council approved a 4.5% general purposes tax
   increase to bring the budget into balance.

   Following from the approvals, Council approved further adjustments to
   the Operating Budget estimates on February 6 and 20, 1997.  These
   included elimination of the 50% municipal assist component of Regional
   DCCs, reduction in contract services with Tourism Vancouver and specific
   adjustments to departmental budgets.

   Following these actions, the Operating Budget was referred to the Budget
   Office and departments for more detailed review to ensure that the
   estimates included only sufficient funding to provide for approved
   programs and staffing, with adjustments to accommodate normal workload
   changes or for items that addressed safety concerns or that demonstrated
   economic benefit.  During Budget Review, staff also reviewed the new
   revenues approved by Council and identified the necessary transition
   funding to annualize the estimates in the 1997 Operating Budget.


   Staff have now completed a detailed administrative review of the revenue
   and expenditure estimates according to the instruction provided by
   Council on February 4.  That review involved meetings between Budget
   Office and departmental staff to ensure that individual department
   budgets included only enough funding to maintain programs, services and
   staffing at current levels and that additional funding requests could be
   justified on the basis of Council approvals, health and safety concerns
   or increased workload.  Using the overall  budget envelope  established
   by Council and defined by a combination of new revenues, expenditure
   reductions and a 4.5% general purposes tax increase, the 1997 Operating
   Budget has been brought into a balanced position.

   The following table summarizes the current position of the operating

          Taxation Revenue            $358,257,400 
          General Revenue              164,701,800
          Transfers from Reserves       15,309,300   $538,268,500

          Departmental Expenditures   $449,892,800
          Debt Charges                  69,092,300
          Regional Sewerage Charges     21,901,900
             Transfers to Reserves      14,206,800    555,093,800 

        Net Budget Position                          ($ 16,825,300)

        Revenue Transition Funding (Recommendation B)    1,837,600 
        Tax Increase @ 4.5%                          14,987,700 

        Interim Budget Position               $                 0 

   Additional information on the revenue and expenditure estimates is
   provided in the Appendices.  Appendix 1 summarizes the adjustments made
   to the preliminary estimates during budget review and which are
   reflected in the interim estimates.  Appendix 2 summarizes the
   recommended estimates, along with comparison information from the 1996
   Operating Budget.  The accompanying booklet entitled,  1997 Operating
   Budget, Interim Report (limited distribution) provides additional detail
   of the 1997 interim estimates.

   1.   Revenue Estimates

   The 1997 interim estimates include a revenue budget of $553,562,200,
   including provisions for the general purposes tax increase approved by
   Council and for the transition funding necessary to annualize the new
   revenues approved by Council.  This represents an increase of 1.9% or
   $10.3 million over the 1996 final budget level.

   a)   Taxation Revenue

   Overall, taxation revenue at $373,245,100 has increased by $19. 4
   million from the 1996 budget.  The most significant component of that
   increase is almost $15.0 million in additional revenue associated with
   the 4.5% increase in general purposes taxes.  The balance of the
   increase is accounted for by:

   -    new construction value added to the 1997 Assessment Roll which
        converts to $4.8 million in new tax revenue.  This compares with
        new construction taxes of $6.7 million in 1996 and reflects both a
        slowing of development in the City and a shift to residential (from
        commercial) development, which is taxed at a lower rate;

   -    a reduction in the revenues anticipated from interest on arrears
        taxes.  Lower arrears at the end of 1996 is directly responsible
        for this $300,000 decrease; and

   -    payments in lieu of taxes from senior governments and other exempt
        properties are expected to remain flat in 1997, the result of
        overpayments made by BC Gas in 1995 and 1996, as well as changes in
        the inventory and value of grantable properties held by other
        levels of government.

   The 1997 estimates include a provision of $2.0 million for taxes
   write-offs related to assessment appeals.  This provision is identical
   to the 1996 level and reflects a continuing concern about the number and
   value of assessments under appeal.  Currently, the City has limited
   specific reserves for funding reductions associated with successful
   assessment appeals and staff continue to monitor activity at the
   Assessment Appeal Board.

   b)   General Revenue

   Non-taxation revenues originate from a variety of sources including fees
   and charges, utility fees, rental income associated with city-owned
   property, short term interest earnings and funding from the Provincial
   Government.  Overall, the 1997 estimates reflect a reduction in these
   revenues totalling approximately 4.8% or $8.4 million.  The primary
   components of this reduction are:

   -    Council is aware of the significant reduction in funding from the
        Provincial Government in 1997.  In November, 1996, the government
        announced elimination of a series of programs through which funding
        was provided to the City, leading to a $17.2 million shortfall in
        the 1997 budget.  The most significant reduction was in the Local
        Government Grants program where a reduction of  $14.5 million has
        been accommodated in the budget.

   -    Police Cost Sharing from the Provincial Government has also been
        eliminated at a cost of $794,000.

   -    Short term interest earnings are expected to suffer a significant
        reduction in 1997, totalling 30% or $4.1 million.  This follows
        from a combination of lower capital fund cash balances and
        significantly reduced yields on the City s short term investments.

   -    Miscellaneous Fees and Receipts decline by $0.7 million primarily
        because the City will no longer receive recoveries for services
        provided to the Vancouver Health Board.  Where possible, offsetting
        expenditure reductions have been taken from the departmental
        expenditure estimates.

   -    Sundry Property Rental revenues will declined by $535,300 as a
        result of Council s decision to divert net income from the Mole
        Hill neighbourhood to upgrading of the buildings.  There has also
        been changes changes in the inventory and valuation of city-owned
        sites which impacts on rents-in-lieu of taxes.

   -    at the preliminary estimate stage of the Operating Budget, Council
        approved new and increased fees and charges in several areas that
        are reflected in the Interim Estimates.  These revenues are
        reported at levels anticipated from partial year implementation
        with transition funding provided elsewhere in the budget to
         annualize  them.  These increased revenues can be seen in Licence
        Fees, On-Street Parking, Bylaw Fines and Development & Building

   -    Waterworks revenue has increased by 13.4% reflecting the increased
        expenditures in the Water Utility.  Council approved 1997 Water
        Rates in December, 1996.

   c)   Transfers from Reserves/Funds

   The 1997 interim estimates contain funding totalling $15.6 million from
   several sources outside the Operating Budget:

   -    a transfer of $87,500 from Revenue Surplus for CityPlan
        representing the final transfer from the original funding approvals
        by Council.  This transfer was documented in the report to Council
        in October 1996.  Ongoing funding for neighbourhood visioning
        projects is provided in the Planning Department budget beginning in

   -    the surplus on the City s Sinking Fund, at $7.2 million.

   -    the annual funding from the Property Endowment Fund is continued at
        $7.0 million.

   -    transfer of $765,000 from the Hastings Park Reserve to fund the
        City s building maintenance obligations at Hastings Park until the
        lease with the PNE Board expires.

   -    transfer of the balance in the Demolition Fee Reserve of $306,000. 
        This transfer follows from Council s earlier decision to divert
        revenue from the Residential Demolition Fee to the Operating Budget
        and to close the Reserve.  This one-time transfer is part of the
        revenue initiative transition funding that is discussed later in
        this report and is included as Recommendation B.

   -    transfer of the interest earnings of the Art Gallery Reserve to
        partially offset the City s operating grant to the Vancouver Art

   2.   Expenditure Estimates

   The interim budget expenditure estimates are also recommended at
   $553,512,200, reflecting a balanced budget position.  This represents an
   increase of $10.3 million or 1.9% over the final 1996 expenditure

   a)   Departmental Expenditures

   Departmental expenditures have increased $11.15 million to $449.9
   million, an increase of or 2.5% over the 1996 final budget.

   In developing the 1996 estimates, departments were guided by the
   individual targets that were developed by the Budget Office and formed
   part of the preliminary estimates.  These targets gave consideration to
   increased salary, wage and benefit increases (although not a general
   wage increase) as well as increases in general and specific expenditure
   inflation.  Where appropriate, funding was also provided for  added
   basic  which is the cost of new or expanded programs and services
   approved by Council over the last two years and added to the budget in

   In meeting their budget targets, departments were forced to make choices
   among competing demands for resources and, in some cases, reallocations
   of funding has taken place to accommodate those demands that were of a
   high priority.  One of the objectives of the budget review process was
   to ensure that, where reallocations were made, departments could provide
   adequate justification.  The results of that review have identified no
   significant changes in the on-going programs that are funded in the
   budget and no changes in staffing except those approved by Council.

   The expenditure estimates also reflect the full impact of expenditure
   reductions approved by Council on February 6 and February 20, 1997. 
   These reductions total $3.8 million are spread throughout the estimates.

   The following summarizes some of the more significant changes in
   departmental estimates using the 1996 final budget as the comparison:

   -    General Administrative includes most of the internal service
        departments, including the City Manager, Corporate Services, Human
        Resources, Legal Services and the City Clerk.  There are many
        components to the recommended reduction in the funding dedicated to
        this area, however, the most significant are:

   -    funding for the November 1996 election has been removed from the
        budget representing a reduction of approximately $900,000.  As
        Council directed when establishing the 1996 Operating Budget, the
        1997 estimates include funding for 1/3 of the 1999 municipal
        election which will be reserved, thereby eliminating the triennial
        impact on the budget.

   -    the final installment ($325,000) in the build-up of the Staff
        Training and Development Program funding approved by Council in

   -    Other General Government includes those estimates that are
        inter-departmental or corporate in nature and tend to vary
        significantly from year-to-year.  In addition to the annual
        expenditure and recovery items included in this area of the budget
        on an ongoing basis, there are three more significant components:

   -    $1.28 million to allow continuation the Better City Government

   -    $1.0 million in computer replacement funding, part of the ongoing
        program begun in 1996 to update computer equipment in the City to
        accommodate the Information Technology Strategy of the Better City
        Government Program.

   -    $2.0 million for new and non-recurring items which will be
        allocated to departmental budgets to provide for normal replacement
        of furniture and equipment and for one-time items that provide a
        payback or are health and safety related.  The departmental
        allocation will be reflected in the final estimates.

   -    The Property Management area of Corporate Service has expanded the
        building services it provides to city buildings and buildings it
        manages on behalf of the Vancouver Health Board and Provincial
        Government (Non Revenue Housing).  The group currently leases two
        service vans which should be replaced with purchase vehicles to
        reduce costs.  It is recommended that these vans be funded by the
        Plant Account.

   -    The increase in the Community Services Administration estimates
        represents a shift of funding rather than a real increase in costs
        as the business group including Planning, Permits & Licences,
        Social Planning, Carnegie Centre and Downtown South Gathering Place
        reorganizes its administrative functions to a more centralized

   -    The estimates for the Planning department include a variety of new
        revenue supported programs in the zoning and development control
        area as well as the addition of $580,000 of funding for the next
        phase of CityPlan and $187,000 to support the Interim RS Zoning

   -    The reduction in the Police Department estimates arises from the
        impacts of the budget reductions and new revenues approved by
        Council earlier in the budget process, from increased revenues and
        recoveries in the department and from revised projections on
        manning costs at the department.

   -    There are a variety of adjustments that have impacted on the
        expenditure estimates in Permits and Licences, however, in every
        case, they have been offset by increased revenues reported
        elsewhere.  The adjustments include:  Salary adjustments
        ($190,000); Structural Review consultants ($400,000); Regional DCC
        Administration ($120,000); Document Imaging and Business Licence
        Systems ($400,000); Problem Premises support ($200,000); and,
        Address Change administration ($190,000).

   -    There have been many changes in the Public Works section of the
        expenditure estimates, however, most reflect the impact of
        inflationary adjustments and removal of one-time funding added in
        1996 as well as a continuing reorganization of the department s
        activities, rather than significant changes in programs.  The
        variances to 1996 also reflect the impact of new revenue and
        expenditure reduction initiatives undertaken as part of the budget

        -    The most significant area of increased expenditures is in
             Sanitation as a result of continuing cost increases at the
             Vancouver Landfill and Vancouver South Transfer Station
             related to meeting the conditions of the City s operating

        -    Parking Program revenues and expenditures have increased as a
             result of the approval of the extended on-street parking
             program and the resident parking permit program.  Estimates in
             this area have also been adjusted to remove one-time funding
             in 1996 for replacement of parking meters.  It is anticipated
             that a second phase of this program will be reported to
             Council in the near future.

        -    During budget review, the City Engineer identified the need to
             increase funding for maintenance of sewer pump stations  That
             funding was from within the overall budget target for the
             department by reallocating funding from lower priority
             programs.  That higher level of maintenance will require the
             acquisition of an additional service van for Sewers
             operations.  It is recommended that funding for the van be
             provided from the Plant Account.

   -    the elimination of local government funding programs by the
        Provincial Government has impacted the expenditure estimates in a
        variety areas, including Social Planning, Carnegie Centre, the
        Grant Programs, Park Board and Housing Programs.  These reductions
        total approximately $1.9 million compared to 1996.

   -    following discussions with the Britannia Community Services Centre
        during budget review, agreement was reached to achieve budget
        reductions totalling approximately $35,000.  These reductions are
        consistent in application and scale with those imposed on the Park
        Board.  The Master Agreement governing the operation of Britannia
        has been in place for over 20 years and both sides agree that a
        review of the agreement is appropriate.  Staff will begin
        discussions with the Britannia Community Servces Soceity during
        1997 with a report back to Council on issues that require

   b)   Debt Charges

   The growth in debt charges reflects continuation of the borrowing
   program related to the 1994-1996 Capital Plan.  The net increase in debt
   charges from 1996 to the 1997 interim estimate stage is $3.2 million or
   4.9%, bringing debt charges to $69.1 million.

   In June 1997, the City has the opportunity to exercise an  early
   redemption  feature in one of its outstanding debentures.  Bylaw 5257 is
   a $10 million, 10 3/8%, 20-year issue due to mature in June 1999. 
   Provision was made in the initial debenture issue for an earlier
   redemption, and the City can save interest costs by retiring this
   debenture in June 1997.  At the call date, there will be an outstanding
   principal balance of approximately $1.5 million which can be paid from
   the Debt Payment Equalization Reserve ($746,000) and the Water Rates
   Stabilization Reserve ($746,000).  Interest savings in 1997 will be
   $510,000 accruing to the Operating Budget (Sewers) and the Water
   Utility.  Over the two year period to normal maturity, the City will
   save approximately $2.075 million in interest costs.  The interim
   estimates include provision for this early retirement and is recommended
   in this report.

   Since 1993, Council has approved rebates of interest on City debentures
   held in the Capital Financing Fund sufficient to reduce the effective
   interest rate earned by the fund to the current market levels.  In 1996,
   rebates totalling $2.0 million were approved reducing the effective
   borrowing costs to 8.0%.  The 1997 budget projections and the
   preliminary estimates included an additional rebate provision reducing
   interest costs on these debentures to 6.5% and these rebate amounts are
   continued in the interim estimates.

   The 1997 interim estimates do not include a provision for borrowing
   costs associated with a 1997 debenture issue.  At present, it is
   anticipated that any borrowing in 1997 will be deferred until the fall
   so that no current year interest or principle repayment costs will be
   incurred until 1998.

   c)   Greater Vancouver Sewer and Drainage District

   The final requisition from the GVS&DD for sewer purposes has been
   received by the City and reflects an increase of $86,900 over the
   preliminary estimates.  Regional sewerage costs have increased by 6.5%
   over the 1996 level and this increase has been accommodated within the
   budget envelope established by Council in February.  

   In addition, Council eliminated the 50%  municipal assist  portion of
   the new regional development cost charges when dealing with the
   preliminary estimates and funding for that program has been removed from
   the budget.

   d)   Transfers to Reserves and Funds

   Transfers to reserves and funds have declined by $5.3 million from the
   1996 final budget and are recommended at $12.7 million.  The most
   significant changes are:

   -    a reduction of $1.8 million in the provision for Capital from
        Revenue to provide transition funding for new revenues approved by
        Council.  This change is discussed more completely below.
   -    the costs associated with the operation of the Vancouver Landfill
        and the City s recycling programs have resulted in the transfer to
        the Solid Waste Capital Reserve becoming a draw from the reserve. 
        This has resulted in an effective reduction in this expenditure
        estimate of $2.4 million.

   -    elimination of the Demolition Fee Reserve, $600,000.  These
        revenues are now retained in the Operating Budget.

   -    reduction in the City s obligations related to maintenance of
        Hastings Park , $735,000

   -    provision for the 1999 Municipal election, $300,000.

   e)   Contingency Reserve

   The interim estimates include a contingency reserve provision of $2.3
   million.  Of this amount approximately $750,000 is required to fund
   fringe benefit cost increases in departmental budgets.  This allocation
   will be completed by the final estimate stage.  In addition there are
   several budget items for which discussion continues prior to funding
   being allocated to individual budgets.  It is anticipated that the
   general provision available for Council to deal with emergent issues
   during the balance of the year will be in the range of $1.5 million,
   comparable to actual expenditure levels in recent years.

   The Director of Finance notes that there are several items that may
   impact on the 1997 Operating Budget before the year is out which are not
   specifically provided for in the interim estimates.  There is no
   provision for negotiated increases in salary and wage costs for City
   employees.  The Corporate Management Team has indicated that any such
   costs in 1997 would be funded with further expenditure reductions.  The
   budget includes provision for APEC costs at the level approved by
   Council ($350,000 City cost) although the potential to exceed that level
   is apparent based on discussions with the Police Department.  It is also
   noted that there is no funding provided for maintenance of Hastings Park
   once the PNE lease expires in September, although the anticipation is
   that the Hastings Park Reserve would be the source of any necessary
   funding.  The ongoing concern about the level of outstanding assessment
   appeals was noted earlier in this report.  Our conclusion is that, while
   the 1997 interim estimates reflect a balanced position, there is very
   little room within these estimates for new or unexpected expenditures. 


   When Council dealt with the preliminary estimates on February 4, 1997,
   the following  recommendation was approved:

        K.   THAT funds designated as Capital from Revenue on the
             lower priority list supplied by the Corporate Management
             Team dated January 31, 1997 to include items such as the
             Library Outreach Program, the upgrade of the Orpheum
             washrooms, etc., be considered for annualizing and
             transitioning revenue increases and service reductions
             and be provided on a one-time basis with specifics
             reported back to Council at an appropriate time. 

   The interim estimates include the 1997 impact of the revenue increase
   and expenditure reduction initiatives approved by Council at its
   meetings of February 4, February 6 and February 20, 1997.  No transition
   funding is necessary for the expenditure reduction proposals as
   departments were able to make the necessary adjustments to accommodate
   the annual savings.  Staff have reviewed the estimates of new revenues
   and are recommending transition funding to annualize the following

        Development and Trade Fees    $   600,000
        On-Street Parking Program         600,000
        Bylaw Fines                       561,600
        Police Revenues                    50,000
        Property Tax Search Fees.          26,000
             Total                    $ 1,837,600

   Consistent with Council s recommendation, this transition funding has
   been provided in the interim estimates by reducing the provision for
   Capital from Revenue.  The impact of this allocation is that projects or
   programs of this value and currently included in the Capital Plan and
   funded from revenue will have to be eliminated.  Council need not make
   the decision on which projects or programs are to be reduced at this
   time.  The 1997 Capital Budget will be before Council on May 8, 1997, at
   which time allocation of funding from the Operating Budget, including
   reductions sufficient to offset this transition funding, will be made.


   The 1997 interim estimates make full provision for the Park Board Global
   Budget of $36,148,200, including added basic funding of $258,700.  The
   provision has been calculated by City and Board staff according to the
   agreed upon principles.  The revenue and expenditure estimates for 1997,
   with comparable figures for 1996 are:

        Gross Revenue       21,552,700     23,203,100
        Gross Expenditure   58,700,900     60,166,800

        1997 Net Budget     37,148,200     36,963,700     0    0.4%

   The change in revenue and expenditure estimates in 1997 reflect the
   impact of a variety of adjustments.  The most significant, and visible,
   of these is the revenue and expenditure reduction resulting from the
   closure of Fraserview Golf Course for renovation in 1997.  One of the
   conditions of the financing plan for this project is that closure of the
   golf courses will have no impact on the level of operating funding
   provided by the City under the global budget and the recommended funding
   levels are consistent with that condition.  The Park Board estimates
   have also been adjusted for $754,000 in net reductions directed by
   Council as part of the preliminary estimates, including $54,000
   representing the City s 1/3 share of new revenues generated by the
   Board.  Finally, the global budget includes $979,000 in funding for the
   new Roundhouse Community Centre scheduled to open in 1997.

   The recommended global budget also includes $258,700 in added basic
   costs associated with new operating costs arising, primarily, from the
   Board s capital program.  These new expenditures are summarized as

   Systems Infrastructure   $ 54,300  operation and maintenance of the new
                                      Community Centre computer system.
   Building Maintenance       17,000  maintenance costs associated with
                                      building renovation and upgrading.
   Park Infrastructure
    Maintenance               64,000  maintenance of park furniture and
   Street Trees               80,000  maintenance of 2,700 new street
   Playfield Maintenance      24,100  maintenance of upgraded play fields.
   Park Maintenance           19,300  maintenance of new parks.
   Total                     258,700

   The recommended global budget should provide for the City portion of
   parks and recreation expenditures for 1997. 


   This report presents the interim results of the 1997 Operating Budget
   building process.  It presents a balanced budget position for Council s
   consideration which includes a 4.5% general purposes tax increase as
   approved by Council on February 20, 1997.


   On Thursday April 24, 1997, City Services and Budgets Committee will
   receive a report summarizing the final adjustments to the 1997 Operating
   Budget for approval in principle.  This report will satisfy the
   Vancouver Charter requirements for the estimates to be presented to
   Council by April 30 each year.  Also before Committee on April 24 will
   be a report from the Director of Finance outlining property tax options
   for 1997, including the impacts of a differential tax increase across
   the property classes and a tax capping program for Class 6 Business and
   Other properties.

   On May 8, 1997, City Services and Budgets Committee will receive a
   report on the 1997 Capital Budget including recommendations for
   allocating Capital from Revenue funds to individual capital projects.

   On May 15, 1997, City Services and Budgets Committee will receive a
   report from the Director of Finance presenting the final Operating
   Budget Resolution and Rating Bylaws for consideration.  This report will
   reflect the final impact of decisions made regarding taxation policy
   measures, including a 1997 tax capping program.  Action on these items
   will finalize the budget process.

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