Proposed 2016 Budget – West Vancouver Services and Assets

The District of West Vancouver needs a Long Term Financial Plan (LTFP), for resiliency, to provide high levels of services and to manage its assets in the best possible way. Many of the pieces for a successful LTFP are already in place, but key pieces are missing.

The focus in 2016 is on filling in the missing pieces, particularly in terms of asset management.

Three public open houses were held in January 2016 as well as an online survey. We will be reporting back soon. 

Information from Open Houses:

Open House January 21, 2016 - Budget Q & A

Open House January 27, 2016 - Budget Q & A

Open House January 28, 2016 - Budget Q & A

Rich in assets

West Vancouver is quite rich in assets, with two relatively new recreation centres, unique assets like the seawall, many kilometres of roads, sidewalks, streetlights, and traffic lights, parks, playgrounds and sport fields, to name but a few.

This public infrastructure is worth over $1 billion, and does not include utilities. Over the next 50 years, the majority of these will need to be replaced, and, over the life of these assets, they will require major capital investment if they are not to seriously deteriorate.

To support these public amenities, West Vancouver has relatively few properties, low density, and no industrial property tax base.

Maintaining our assets

The District needs to fund about $13.9 million in assets annually. Over the next 20 years, $300 million needs to be spent to maintain these assets (excluding utilities).

Proposed Solution: Three Steps

  1. Set up a system of asset reserves
  2. Set up a system of funding the reserves through an asset levy
  3. Provide graduated annual increases to the level of asset levy funding

Establishing an asset reserve

A key to managing municipal assets is the establishment of asset reserves, funded by a dedicated taxation stream called an asset levy. These reserves then provide the flexibility and accountability to invest in municipal assets in a thoughtful and considered manner.

The District of West Vancouver is proposing to establish three asset reserves:

  • Capital Facilities
  • Infrastructure
  • Equipment

Proposed 2016 operational increase and asset levy

The proposed increase to the operating budget is 2.09%. In addition to that, we are exploring options on the best way to implement an asset levy.

Proposed Asset Levy Options

One-year levy – a single levy in 2016 is the best option. It would provide the required investment for 2016 and future years. This would allow West Vancouver to replace assets at the ‘optimum’ point, avoiding costly maintenance that does not prolong asset life, and providing the best value for money. The impact on the average taxpayer would be a single levy of $354 in 2016.

Four-year phased levy – a levy phased over four years would provide the minimum investment to meet 2016 critical needs. The levy would then be built up to the required level over the next three years. The impact on the average taxpayer would be a single levy of $255 in 2016, with smaller payments over the next three years until a total of $354 has been reached.

Seven-year phased levy – a levy phased over seven years would provide the minimum investment to meet 2016 critical needs. The levy would then be built up to the required level over the next six years. However, each year that required investment is not made, a deficit builds up of assets that are not being maintained at the optimal level and asset performance deteriorates. The impact on the average taxpayer would be an additional $152 in 2016, with smaller payments over the next six years until a total of $354 has been reached.

Ten-year phased levy  1% per year for ten years to build up to the required level. This option would meet funding requirements over time, but would not meet 2016 critical requirements. The critical point is where the risk of failure starts to climb. At this point, repairs are required just to keep the asset functioning, and, even then, may not be sufficient. The impact on the average taxpayer would be an additional $34 in 2016, with equal payments over the next nine years until a total of $354 has been reached.

Impact of 2016 increases on average taxpayer’s total municipal tax bill:

Open Houses

Three Open Houses about West Vancouver’s proposed 2016 budget and asset levy were held in January.

A presentation was made at the beginning of each open house, with a question period to follow. A copy of this presentation is available for download (below) in addition to notes from the question periods:

Presentation for Open Houses: Proposed 2016 Budget

Open House January 21, 2016 - Budget Q & A

Open House January 27, 2016 - Budget Q & A

Open House January 28, 2016 - Budget Q & A

Property assessments and taxes

Just because a property’s assessed value goes up, this does not mean that property will pay higher taxes. Assessments are used only to determine what share of the overall tax burden a property will pay, relative to the other properties in the same community. It's like a unit entitlement in a strata, except that it changes each year. In any given year, a property may pay a lower or higher share.

If the property goes up in value more than the average property, its share will go up. A property could go up in value, but go up less than the average increase, and that property’s share will actually decrease. In the District in 2016, almost every property has seen a significant increase in value, but some have increased more than others.

Those properties where the value increase has been greatest will see the greatest rise in taxes. This will happen regardless of whether the District implements an asset levy or not.

Homeowner grants

Property assessments will also affect the Provincial Home Owner Grant program. Although the program is adjusted each year so that 90% of the owner-occupied properties in the province qualify for it, this means that the top 10% of properties by value do not qualify. Many of the top 10% properties are in West Vancouver.

In 2016, 393 properties in the District that received some amount of Homeowner Grant will no longer qualify for any grant.

43 properties that received the full grant in 2015 will not receive any grant in 2016; 27 of these were getting the Regular Grant ($570), and 16 were receiving the Additional Grant ($845).

Resident owners aged 55 or older, and resident owners supporting children under 18, have the option to defer some or all of their taxes.

Video - asset management explained

News

Council Briefs - January 25, 2016

The following items were considered by Council at the January 25 meeting:Read More

Traffic changes at Taylor Way and Marine Drive aimed at helping ease congestion

The District of West Vancouver and the Ministry of Transportation and Infrastructure are making changes to traffic signals at the intersection... Read More

Tides influence evening work on the Lawson foreshore

Work continues to move environmentally suitable material from the Municipal Hall construction site to the foreshore between 15th and 18th Streets.Read More

District of West Vancouver officially files opposition to Trans Mountain Expansion Project

“We believe that the benefits of the project do not outweigh the potential negative impact of a spill, and the applicant has failed to address this,” says Mayor Michael Smith.Read More

Council Briefs - January 11, 2016

The following items were considered by Council at the January 11 meeting:Read More

Construction Updates

Police Services and Municipal Hall construction

Construction of the new Police Services and Municipal Hall project is underway. 

The south entrance on the main level of Municipal Hall is open as usual, but the lower and lower main entrances on the south side are closed during construction.

Esquimalt Avenue is now closed between 16th and 17th Streets for the duration of the project.

Police Services & Municipal Hall Project

Orchill Road Upgrade

Orchill Road and Gleneagles Golf Course parking lot and pedestrian safety upgrades began the week of October 19 and were expected to take 12 weeks. Periodic road and sidewalk closures can be expected. Please follow detours and directions from on-site traffic control staff. All facilities remain open during construction, including the Appleback Grill Restaurant, Gleneagles Golf Course and the Gleneagles Community Centre..

Orchill Road Upgrade

For more information and updates:

2016 Projects Timetable

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Contact

West Vancouver Municipal Hall
750  17th Street
West Vancouver BC V7V 3T3

Hours: 8:30 a.m. - 4:30 p.m.
Monday to Friday
604-925-7000

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Open Houses - Ambleside Waterfront Concept Plan

Public consultation on the Ambleside waterfront plan is underway this month and we want your feedback.

Ambleside Plan - The Vision 
Find out what's in the plan and ask questions

February 10 | 6:30-8:30 p.m.

Open Houses
Learn about the details and provide feedback

Wednesday, Feb. 17 | 4-7 p.m.

Thursday, Feb. 25 | 4-7 p.m.

Tuesday, March 1 | 4-7 p.m.

Ambleside Waterfront Plan Consultation

Council's Priorities

Growth and change in West Vancouver present new challenges, and Council’s priorities reflect that.

Council's Seven Priorities

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Notices

Notices of upcoming public hearings and public meetings and statutory notices are posted here.

Notice of Consideration regarding Development Variance Permit Application 15-065 (1290 Queens Avenue) (for consideration at the February 15, 2016 regular Council meeting)

Notice of public hearing regarding proposed Zoning Bylaw 4662, 2010, Amendment Bylaw 4873, 2015 (636 Clyde Avenue) (public hearing scheduled for February 22, 2016)

Notice of Consideration regarding Development Permit Application 15-090 and Temporary Use Permit Application 15-056 (2989 Cypress Bowl Lane) (for consideration at the February 22, 2016 regular Council meeting)

Notice of Consideration regarding Development Permit Application 16-004 (2976, 2978, 2980, 2982, 2986, and 2988 Burfield Place) (for consideration at the February 22, 2016 regular Council meeting)