1998 Operating Budget: Final Report

ADMINISTRATIVE REPORT
Dated: April 22, 1998
Author/Local: Ken Bayne/7223
CC File No: 1605
TO: Vancouver City Council
FROM: Director of Finance
SUBJECT: 1998 Operating Budget: Final Report
RECOMMENDATIONS
THAT Council approve the final 1998 Operating Budget Revenue and Expenditure estimates as summarized in Appendix 1 by approving the budget resolution attached as Appendix 2, and instruct the Director of Finance to submit the 1998 Rating Bylaws to Council on May 12, 1998.
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 bylaw establishing general purpose tax rates as soon thereafter as possible.
On April 7, and April 9, 1998, Council considered recommendations of the Director of Finance contained in the interim report on the 1998 Operating Budget. These recommendations provided final instructions to bring the budget into balance, including application of a 2.0% general purposes tax increase.
PURPOSE
The purpose of this report is to bring forward for Council approval the final estimates of the 1998 Operating Budget and to recommend adoption of the Budget Resolution that constitutes Council’s formal approval of the estimates.
DISCUSSION
On April 7 and April 9, 1998, Council approved the final measures to bring the 1998 Operating Budget into balance, including the imposition of a 2.0% general purposes tax increase.
Since Council approved the interim estimates, the final steps to complete the 1998 Operating Budget cycle have been taken. These include, adjustments to reflect Council’s approval of the first phase of the two-year budget planning process; the allocation of funding for new and non recurring items in the budget; final adjustments to Contingency Reserve; and, application of the 2.0% general purposes tax increase.
The 1998 Operating Budget is summarized in Appendix 1 of this report, and forms the basis upon which the Budget Resolution, attached as Appendix 2, is developed. It is the recommendation of the Director of Finance that Council adopt this resolution.
COMPLETING THE BUDGET CYCLE
As noted above, completion of the 1998 Operating Budget will require a formal resolution by Council and adoption of the rating bylaw to establish 1998 general purposes tax rates. The resolution attached to this report is developed on the basis of the estimates as amended by Council on April 9, 1998, including the increase in general purposes taxes.
In a separate report before Council this day is the recommendation of the Director of Finance related to a 1998 Property Taxation Options and three consideration items related to additional taxation policy options put forward by the Director of Finance and/or the Citizens Advisory Group on Property Taxation. The 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, however, they will not change the general purposes tax levy presented in Appendix 1 of this report.
Based on decisions from this taxation policy report, a series of special resolutions related to averaging of land values for taxation purposes and the Rating Bylaws will be before Council on May 12, 1998 for final approval.
Appendix 2
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
THAT WHEREAS, the Vancouver Charter, Section 219 requires that the Director of Finance submit to Council by April 30 each year the detailed estimates of revenue and expenditure of the City for the year;
AND WHEREAS, the Vancouver Charter, Section 372 requires that Council adopt the estimates of revenue and expenditure for the City as soon thereafter as possible;
AND WHEREAS, in decisions made on February 17, 1998, Council established guidelines within which the 1998 Operating Budget should be reviewed by the Director of Finance;
AND WHEREAS, Council has reviewed the Interim Report on the 1998 Operating Budget submitted by the Director of Finance on April 7, 1998 and April 9, 1998, and approved final measures to bring the estimates into balance, including approval of a 2.0% general purposes tax increase;
AND WHEREAS the total estimated expenditures of the City to pay all debts and obligations of the City falling due in the year 1998, exclusive of the amounts required for school, the Greater Vancouver Regional Hospital District, the Greater Vancouver Regional District, the British Columbia Assessment Authority, the Municipal Finance Authority, and B.C. Transit purposes and not otherwise provided for, as amended by Council, amount to $539,618,900;
AND WHEREAS the total estimated expenditures as aforesaid is the sum of the appropriation requests of all departments and boards properly supported by detailed analyses of those expenditures and listings of the salaried staff;
AND WHEREAS the total estimated revenue of the City for 1997 from sources other than real property taxes, as amended by Council, amounts to $187,927,700;
AND WHEREAS the amount of the General Tax Levy so required is $351,691,200;
THEREFORE be it resolved that the said estimates, both as to totals and individual items pertaining thereto, of the Director of Finance as so amended by Council be and the same are hereby adopted by Council.
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