The Village of Pemberton’s Committee of the Whole held its fourth budget session on Tuesday, March 16, looking at final tax implications for 2021 and the five-year year financial plan.
While there were only small tweaks to the 2021 budget—holding the line at a four per cent tax increase—Lena Martin, manager of finance and administration for the VOP, laid out the draft long-term financial plan.
“A long-term financial plan stimulates discussion and engenders a long-range perspective for decision makers,” she said, during the meeting, held via Zoom. “It can be used as a tool to prevent financial challenges; it stimulates long-term and strategic thinking; it can give consensus on long-term financial direction; and it is useful for communications with internal and external stakeholders.”
Consolidated view of five-year financial plan
The details laid out in the plan are based on an estimated consumer price index of 0.8 per cent for 2021, one per cent for 2022, 1.5 per cent for 2023, two per cent for 2024, and two per cent for 2025. In addition, growth and recovery from the COVID-19 pandemic were factored in. “We have also included additional capital projects that we have identified moving forward,” Martin said.
While the plan lists a surplus carry forward of $691,000 for 2021, the estimates aren’t available for the following four years.
“Where that is reflected is in… taxation value,” Martin said. “The taxation value between 2021 and 2022 is $900,000, but about $600,000 to $700,000 of that would be surplus that is potential to carry forward. The remainder is the five to seven per cent we will hopefully see in growth over the next five years.”
The numbers are similar from 2022 to 2025. “So, 2022 to 2023, we see a slight decrease in taxes,” Martin says, pointing to $3,301,619 and $3,257,112 in tax revenue, respectively. “That’s just less projects we’re working on.”
There’s a slight increase to $3,404,748 in 2024 and a higher increase in 2025 to $3,735,572.
“That’s mainly due to those very large projects that we want to keep on our mind, but we’re not sure if we’re going to complete in 2025. That would be things like the new fire hall or new municipal hall. We want to make sure we’re still having these discussions, but they may or may not start in 2025,” Martin said.
Administrative budget
Martin highlighted two capital projects in 2024: an estimate for a municipal hall building for $2 million and $150,000 for an electric vehicle charger at municipal hall if the building happens.
For 2021 (as had already been discussed) $45,000 is budgeted for a new bylaw truck with 2022 potentially seeing a $20,000 roof repair to the white building.
Fire department budget
“We’re limited on growth in the fire services agreement because it is a shared service with the Squamish Lillooet Regional District and the Lil’wat Nation, so growth is fairly steady here, and based on CPI,” Martin said. “The only differences are some estimates for potential future capital improvements, which would be the replacement of (fire) engine 10, engine 11, and potentially a new fire hall in the future.”
To that end, the capital budget for machine and equipment for 2021 is listed as $47,600, for 2022 it’s $582,500, for 2023 it’s $482,500, for 2024 it’s $72,500, and $7,500 for 2025. However, $12 million is set aside under capital building costs for a new fire hall in 2025, something that caught the eye of Councillor Ted Craddock.
“The numbers we got previous to this meeting were a high-level number of $6 million,” he said. “So I don’t think in four years from now that should double in cost. I certainly hope that’s a very, very high level.”
Staff clarified that the $12 million is a very high estimate for the sake of budgeting, but that it would never move forward without council’s approval.
Public works budget
“We have a lot of very high level and high-value projects,” Martin said. “We don’t have those future projects earmarked yet; we get those on an annual basis. We have some capital improvements that we’re looking at for public works and parks… Estimates are for equipment. As debts retire, we replace older equipment, heavy equipment with new equipment.”
For 2022, there has been discussion for drainage projects, the public works’ roof, and possibly the boardwalk. The total expenses from 2022 to 2025, however, remains steady around $1.6 million for 2022 and 2023 before dropping off to closer to $1.5 million in 2024 and 2025.
Water budget
“We’re seeing a lot more projects coming in for water and a lot more capital and future improvements that are required for water, which is why we have that reserve set aside, so that can help us do some mixed reserve spending and debt financing to do those improvements, and for the growth of the community,” Martin said.
Some projects on tap include a feasibility study for the Fernwood water main and a design and build over the five years for a new well. That culminates in $5 million estimated for 2025 to build the well.
Sewer budget
The sewer budget hasn’t seen any major increases in the last six to seven years, Martin noted. To that end, increases are on the way. (She also noted sewer and water rates are funded by user rates, not taxation.)
Next year, capital expenses are estimated at $350,000, including an inflow infiltration study and a Walnut lift station improvement.
Then, for 2023, drainage improvements and lift station improvement is on the work plan for total capital expenses of $200,000.
“Eventually, we will also look at planning for a future wastewater treatment plant, which will be more in the 10-year range,” she said.
The committee voted to have staff prepare the five-year financial plan, which includes the 2021 budget, and for it to be brought forward at the next council meeting.
