CS&B COMMITTEE AGENDA
                                           APRIL 24, 1997

                             ADMINISTRATIVE REPORT

                                           Dated: April 15, 1997
                                           C.C. File No. 1605-1

   TO:       City Services and Budgets Committee

   FROM:     Director of Finance

   SUBJECT:  1997 Operating Budget:  Final Report


                THAT Council approve the final 1997 Operating Budget Revenue
        and Expenditure  estimates as  presented in this  report and
        summarized  in  Appendix  1  and instruct  the  Director  of
        Finance  to  bring the  1997  Budget  Resolution and  Rating
        By-laws to Council on May 13, 1997.


                The  General   Manager  of  Corporate   Services  RECOMMENDS
        approval of the foregoing.


   The Vancouver Charter requires the Director of Finance to present
   the estimates of  revenues and expenditures to Council  not later
   that  April 30 each  year and for  Council to adopt  a resolution
   approving  the budget  and a  rating by-law  establishing general
   purpose tax rates as soon thereafter as possible.

   On  April 8,  1997, Council  approved the recommendations  of the
   Director of Finance contained  in the interim report on  the 1997
   Operating   Budget.     These   recommendations   provided  final
   instructions  to  bring  the   budget  into  balance,   including
   application of a 4.5% general purposes tax increase.


   The  purpose of  this  report is  to  bring forward  for  Council
   approval  the  final adjustments  necessary  to  ensure that  all
   appropriate revenue and expenditure estimates are included in the
   1997 Operating Budget.


   Since Council approved the interim  estimates, the final steps to
   complete  the 1997 Operating Budget cycle have been taken.  These
   include  adjustments to  reflect  final  approval  of  transition
   funding  for  new revenues  approved  by  Council; allocation  of
   general  turnover provision  to  departments;  the allocation  of
   funding for new and  non recurring items in  the budget; and  the
   final adjustments to Contingency Reserve.

   The 1997 Operating  Budget, upon which the Budget Resolution will
   be based, is summarized in Appendix 1 of this report.


   As  noted above,  completion of  the 1997  Operating Budget  will
   require a formal resolution by Council and adoption of the rating
   by-law to  establish 1997 general  purposes tax rates.   However,
   before  that resolution can be approved, Council will be asked to
   give consideration to a series of property tax related issues.

   In a separate report before Council this  day are recommendations
   of  the  Director of  Finance related  to  the 1997  Property Tax
   Limitation (Capping) Program and  a consideration item related to
   additional taxation policy options put forward by the Director of
   Finance and two consideration  items put forward by  the Citizens
   Advisory Committee on Property Taxation.  While decisions flowing
   from  consideration   of  these   issues  could  impact   on  the
   distribution of  the taxation  burden among  the classes and  the
   development  of final tax rates, they will not change the general
   purposes tax levy presented in Appendix 1 of this report.

   Based on decisions from  this taxation policy report, the  Budget
   Resolution, necessary  special  resolutions related  to  taxation
   averaging,  and  capping and  the Rating  By-laws will  be before
   Council on May 13, 1997 for final approval.

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