SUPPORTS ITEM NO. 2 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 RECOMMENDATIONS 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. GENERAL MANAGER COMMENTS The General Manager of Corporate Services RECOMMENDS approval of the foregoing. COUNCIL POLICY 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. PURPOSE 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. DISCUSSION 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. COMPLETING THE BUDGET CYCLE 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. * * * * *