2024 Financial Plan
Citizens were able to provide comments online for Council’s review and consideration for the Draft 2024 - 2028 Consolidated White Rock Financial Plan from Jan. 11 to 23, 2024.
The draft 2024 - 2028 Financial Plan recommends an average property tax increase of 4.82%. This equates to an average property tax increase of $203 for an average sing-family household, and an average increase of $79 for an average multi-family, or strata, household.
When combined with utility increases, an average single-family would expect to see an average combined increase of $344, or 5.59%. For an average multi-family, or strata unit, the expected average combined increase is $135, or 5.69%.
The Draft Financial Plan prioritizes community needs, elevates service delivery, and reinforces Council’s strategic vision across six critical domains:
- Community
- Housing & Land Use
- Infrastructure (Built and Natural Environment)
- Local Economy
- Organization & Governance
- Waterfront
It reflects the high inflation rates being experienced across the nation, previously approved commitments, and a modest increase in asset improvement funding due to the need to grow capital funding for aging infrastructure.
| Budget Impact to Average Single-Family Household in 2024 | ||||
|---|---|---|---|---|
2023 | 2024 | Change $$ | % of Change | |
| Property Taxation | ||||
Municipal Operations | $ 2,363 | $ 2,353 | $ 46 | -0.23% |
Police Service | 1,007 | 1,089 | 82 | 1.92% |
Asset Improvement | 840 | 972 | 134 | 3.13% |
| Total Property Taxes | $ 4,211 | $ 4,414 | $ 262 | 4.82% |
| Utilities | ||||
Drainage Utility Charge | $ 579 | $ 612 | $ 33 | 1.69% |
Solid Waste Utility Charge | 355 | 412 | 57 | 2.91% |
Sewer Utility Charge | 278 | 293 | 15 | 0.77% |
Water Utility Charge | 744 | 780 | 36 | 1.84% |
| Total Utilities | $ 1,956 | $ 2,097 | $ 141 | 7.21% |
| Total Annual Cost | $ 6,167 | $ 6,511 | $ 403 | 5.59% |
| Budget Impact to Average Strata Unit in 2024 | ||||
|---|---|---|---|---|
| 2023 | 2024 | Change $$ | % of Change | |
| Property Taxation | ||||
Municipal Operations | $924 | $ 921 | $ (3) | -0.18% |
Police Service | 395 | 426 | 31 | 1.91% |
Asset Improvement | 329 | 381 | 52 | 3.15% |
| Total Property Taxes | $ 1,648 | $ 1,728 | $ 79 | 4.82% |
| Utilities | ||||
Drainage Utility Charge | $ 174 | $ 184 | $ 10 | 1.35% |
| Sewer Utility Charge | 278 | 293 | 15 | 2.02% |
Water Utility Charge | 289 | 320 | 31 | 4.18% |
| Total Utilities | $ 741 | $ 797 | $ 56 | 7.55% |
| Total Annual Cost | $ 2,389 | $ 2,525 | $ 135 | 5.69% |
Staffing Levels and the impact the Unallocated Operating Surplus has on Financial Planning
In March of 2022, Councillor David Chesney made a request of City Staff to provide him with “a list of staff members, their job titles and a brief description of their positions”. This request was part of the Finance and Audit committee review of the 2022 Financial Plan by Mayor Walker and the City Council at that time.
In May of 2022, it was disclosed that a staff list had been provided to city council but that list was not made available to City of White Rock Tax Payers.
In September of 2022 a Freedom of Information request #2022-20 was filed. The following information was provided from City Staff:
“As of September 2018, there were 142 Regular Full Time (RFT) plus 7 Regular Part Time (RPT) and Temporary Full Time (TFT) for a total of 149 positions. As of September 2022, there were 159 RFT and 4 RPT positions.”
City Staff were asked to provide details of the positions that were listed in the FOI response an incomplete list was provided in November of 2022.
In order to acquire that information a follow-up FOI request eventually had to be filed in March of 2023.
Would City Council ask City Staff to provide a document that updates the FOI 2023-29 dated may 24, 2023 and ask for a report that defines the staff positions that were not filled in 2023 and the contribution the staffing deficit made to the Operating Surplus of 2023.
In conclusion, the financial plan reflects the fact that City Staffing was one of the major contributing factors to the operating surplus of 2022. “The unallocated operating surplus of 2022 is largely due to employee turnover and unfilled positions, tangible capital asset maintenance projects that were deferred, lower than budget amortization due to not completing all planned tangible capital asset projects in the year and not needing the full amount of the operating contingency funds put aside in the 2022 budget.” (Letter of transmittal – 2022- Page 3)
Gary Gumley,
White Rock Resident.
Capital Asset Carry Overs– Impact on effective Financial Planning
On June 26, 2023 City Staff provided City Council with an “amendment” to the 2023 Financial Plan by-law number 2458 which had been presented to council on April 17, 2023.
113 projects were deferred in that amendment which passed without question or discussion, representing a total of 29 million dollars in allocated funding.
The Financial plan at that time did not include any specific information about the number of projects that were supposed to be completed in 2022 but were not. The by-law was provided to place on the record the scope of the projects that were not completed but for which the cash would be made available from the City of White Rock tax payers, City Reserves or from Federal and/or Provincial grants that might be provided by those levels of government.
There was little explanation provided as to why these projects were not completed in 2022. Some of the projects have been deferred for a number of years. There was minimal explanation of which projects had been already funded by the tax payers and/or allocated as expenditures from reserves.
11 million dollars of the total deferral was for the completion of the restoration of the White Rock Pier which was damaged in the winter 2019 and partially repaired in 2020.
This amendment was titled: “Asset Improvement (Capital” Details – Projects Carried Over from 2022 to 2023.
This list is instrumental in understanding the scope of work regarding Capital Projects completed by City Staff in a fiscal year.
Would City Council request that City Staff provide the “Projects Carried Over” list to the tax payers of White Rock in time for the impact of the “carry over” amount on the 2024 to 2028 financial plan to be fully understood prior to the second draft being placed before council on February 12, 2024?
City Council and the tax payers of White Rock should be advised by City Staff, how long all the Carry Over projects have been on the list prior to approving the draft financial plan.
This information is highly material to deciding the final amount of any requested property tax increase for 2024.
Gary Gumley,
Resident of White Rock
2023 Operating Surplus and Cash Reserves. - Vital information should not be witheld from council
Last year, on June 12, 2023, an operating surplus of $18.7 million was reported by KPMG as part of the 2022 “Financial Audit” of the City of White Rock.
The City of White Rock had revenues from its day-to-day operations (such as taxes, fees, and other income) that exceeded its operating expenses by 18.7 million dollars.
According to financial experts, an “operating surplus” at the municipal government level can be used in various ways, for example:
1. Saving for the Future: The city may choose to save the surplus for future needs or emergencies, creating a financial cushion. White Rock's financial cushion was $154 million dollars on December 31, 2022.
2. Investing in Infrastructure: The funds could be directed towards infrastructure projects, improving public facilities, roads, or other essential services. The Capital Asset infrastructure Carry Forward for 2022 was $29 million.
3. Reducing Debt: The surplus could be used to pay down existing debts, reducing the city's financial liabilities. The City has no debt, except for the loan that made it possible to purchase the water facility.
4. Lowering Taxes or Fees: The city might opt to give back to the community by reducing taxes or fees for residents and businesses. The total approved tax increase for 2023 was 2.4 million dollars. (page 34 of the 2024 financial plan)
City Staff allocated the “operating surplus” by placing $15.3 million in “Reserves” or “Savings for the Future” with the balance of 3.4 million allocated to an undefined “emergency fund”.
Last year, City Council was not informed about the “operating surplus” for 2022 until June 12 when the “Statement of Financial Information” was released in conjunction with the KPMG audit. On that date, it was learned for the first time that the City of White Rock had an 18.7 million dollar operating surplus in 2022.
At the City Council meeting, Councillor Trevelyan asked a question about the status of the “unallocated surplus” and he was told by the City Staff that the cash formed part of an “emergency fund” to cover “unbudgeted expenses”. (Video June 12 council meeting at 24 minutes)
What Councillor Trevelyan could have asked is why those funds could not have been applied to reducing the “tax increase” for 2023 significantly lowering the burden on our tax payers and meeting the stated campaign goals of all of the elected members of City Council.
Why do we need to wait until June to receive this vital information about the use of our surplus taxes and the status of our cash reserves?
Surely if City Council had that information, they could make an informed decision about what to do with the previous year operating surplus prior to deciding to “increase taxes”.
Apparently, the "operating surplus reveal" is going to be repeated again this year unless City Council decides that a more proactive protocol be followed. (Jan 10 2024 email from the CAO)
Gary Gumley,
White Rock Resident
Access to Information – Crucial Financial Planning estimates required.
On January 15, City Council approved the KPMG audit plan of the 2023 financial statements. Why did nobody ask the question as to why the audit team meets with city staff in November and December to plan for the audit, but the actual process of “completing data extraction” does not commence until March of 2024?
Why isn’t it possible to provide a simple “draft” overview of the financial position of the City within 30 days of the end of the previous fiscal period? This would enable City Council and the Taxpayers of White Rock to secure crucial planning information about the “operating surplus”, “cash and cash equivalents”, “Capital Asset – carry forwards” and “staffing levels”. The information can then be factored in for consideration as part of the 2024 financial planning process in a timely manner?
Waiting for the “Audit Report” to be completed and delivered in June distorts the financial planning process as non-disclosure of the operating surplus for the previous year until June is surely counter-productive to effective financial planning.
Gary Gumley - White Rock Resident
Another 6+% increase for the status quo services? And the water up 4.18%?
Not impressed.
Another 6+% increase for the status quo services? And the water up 4.18%?
Not impressed.