The District of Sechelt’s five-year financial plan proposal for 2022 to 2026 was presented to its Committee of the Whole on the afternoon of Nov. 10.
The municipality started the coming year’s budget approval process about a month earlier than it has in the past. In a press release issued Nov. 9, Mayor Darnelda Siegers stated that, “Early approval allows for projects to start at the beginning of the year and can help to streamline operational processes. This will be an exciting year with many of our upcoming projects being funded by grants.”
The general operating budget proposal for 2022 calls for $16.3 million in spending. If current service levels and 2021 property tax levels were maintained that budget is underfunded by $803,296.
Early in the 149-page budget document, staff explain that “a 1% tax increase equals $108,620” in revenue. A property tax increase of 7.4 per cent would be needed to cover the expenses projected for 2022. A recent Council practice of applying a three per cent tax hike to bolster the municipality’s capital renewal program, if continued in 2022, would be responsible for just under half that amount. The rest is attributed to higher costs for RCMP expenses, the 2021 increases to the municipal staff complement, legal, training, insurance, fuel, and other items.
Next year’s tax increase could balloon over 15 per cent, as Sechelt would also need to add another 8.5 per cent to 2021 tax levels to fund the $931,000 in new operating requests made in the proposal for 2022. Those asks include adding six more staff members in the coming year.
In 2021, Sechelt tax rates were increased by 9.5 per cent over the previous year’s levels.
The press release also announced that one-hour online public participation meetings about the proposal would be hosted Nov. 15 at noon and 7 p.m. Council deliberations on the 2022 budget are set for Nov. 30 and Dec. 1 during full-day committee of the whole sessions.
On the capital expenditure side, a $6-million budget is projected for 2022. Capital projects are funded through reserves, grants and borrowing, and do not directly impact the year’s taxation rates.
The highest price of the 23 proposed capital projects is the $1.2 million replacement of the Wakefield Road sewer lift station. That work has been an identified priority for the past three years and the subject of unsuccessful grant applications. In 2022, Sechelt plans to complete the project by using reserve funds and borrowing $857,000.
The second most costly capital budget item is the $936,000 Inlet Avenue reconstruction project. Sechelt is awaiting news on its $717,000 grant application for that work to improve the walkability of the section between Cowrie and Dolphin streets. That location is the site of two re-development proposals, the new sites of the Sechelt Legion and the six-story residential-commercial Telus Living project.
New in this round of capital budget business case presentations is the inclusion of a staff estimate on the financial impact that the proposed capital projects will have on future years’ operating budgets.
The 2022 budget also contemplates fee increases. Garbage fees a projected to go up by 12.5 per cent or $27 to $243 a year for residential customers. Sewer user fees are proposed to go up by five per cent or $29 per year for the average residential property owner.
Follow-up public information sessions about the 2022 budget are proposed for Dec. 13, with details on those events to be announced. Plans are in place to introduce the financial plan bylaw for initial readings at the Dec. 15 council meeting. Municipal financial plan, fee amendment and taxation rate bylaws must be adopted by May 15 of the year to which they apply.
CUTLINE: (District of Sechelt) Sechelt’s 2022 Provision Budget – Version 1 features a photo of the artwork entitled “Regeneration”, installed in 2015 in the municipality’s Spirit Square sculpture garden on its cover.
