City of Revelstoke starts budget season with 5% increase on the table

By Bryce Borlick/Revelstoke Mountaineer

The City of Revelstoke has published their draft five-year budget, and council will get down to their first discussion of the document on Feb. 9.

The budget calls for a 5% increase across virtually all property classes, but that number will change as items are added and removed over the budget discussion cycle, which will take place over the next couple of months.

The budget report’s author, acting Director of Finance Tania McCabe, notes that this proposed increase is based on “core” services only, and there is a long list of extra items attached to the budget for council consideration. This will mean likely additions to the budget, although subtractions from the core budget are also possible.

“This is a core budget and only includes the budget dollars required to maintain the city’s current level of service,” McCabe writes. “There are also new capital and non-core operating items requested which represent operating or capital initiatives that would improve service levels, address safety or risk issues, protect municipal assets, etc. A list has been provided that identifies these items, along with their financial impact.”

This list of ‘extra’ items includes things like renovations to the community centre, Centennial Park boat ramp repairs, baseball field dugouts, curb replacement projects, and a couple dozen more. The largest item by far is $900,000 per year for a pavement replacement program. (See the full list in the budget document by following the link below).

The city’s operating expenses are $19.6 million, with $7.6 million of that coming from employment costs. The report says these costs have risen by 9.62 percent from 2016 due to union-contracted wage increases and benefit costs. Despite this increase, the city’s projected surplus from general operations is growing.

“The five-year outlook in the general operating fund shows an improving trend with an excess of revenues over expenditures increasing each year,” the report notes.

Revelstoke’s total reserve is expected to reach $6.9 million in 2017, while debt will reach $18.1 million.

“The City’s current and increasing debt levels are of concern,” McCabe writes. “A longer-term plan should be developed to minimize the city’s debt, which should include options for early debt retirement.”

Capital project expenditures are projected to be $8.7 million for 2017, with $6.2 million going toward utilities and $2.5 million covering general expenses.

New construction, such as the new Shell station, is forecast to contribute $144,000 in additional tax revenue in 2017.

Engineering and Public Works department capital costs of $1.3 million for 2017 are driven mainly by road infrastructure upgrades near the Trans-Canada Highway intersection, as well as storm sewer expansion.

The proposed skateboard park is expected to be the largest capital expenditure for the recreation department, totaling $450 thousand in grants the city will receive for the project. The city has budgeted only $25,000 for the project. The arena and Williamson’s Lake Campground upgrades will require significant expenditures in the future, with the exact figures still to be finalized by council.

Improvements to the city’s water system are projected to cost $2.7 million in 2017, with the Farrell Road fireflow, the Illecillewaet crossing, and the Thomas Brook water line taking the lion’s share. The water line expansion to the airport is $2.2 million future infrastructure upgrade with funding coming from grants.

City operations budgets span a five year period, as required by the Community Charter, and are reviewed annually. The current 2017 draft budget is a preliminary projection that will be revised by council before being submitted for public comment.

Follow this link to view the draft 2017 City of Revelstoke budget.