Bylaw No. 1008, 2021 Financial Plan Bylaw Amendment 2

TOWN OF PRINCETON

BYLAW 1008, 2021

FIVE YEAR FINANCIAL PLAN BYLAW AMENDMENT 2 2021 - 2025

A bylaw to amend the Financial Plan for the years 2021-2025

WHEREAS Section 165(2) of the Community Charter allows Council to amend a financial plan by bylaw at any time for certainty; NOW THEREFORE, the Council of the Town of Princeton, in open meeting assembled, enacts as follows:

1. That Schedules “B”, “C” and “D” of the Town of Princeton Five Year Financial Plan

No. 995, 2020 are hereby repealed and replaced with Schedules “B”, “C” and “D”, attached hereto and made part of the Bylaw, and the remaining Schedules “A” and “E” of the of the Town of Princeton Five Year Financial Plan No. 995, 2020 is the Financial Plan of the Town of Princeton, for the years ending December 31, 2021 to December 31, 2025

2. That this Bylaw be cited for all purposes as the “Town of Princeton Financial Plan

Bylaw 2021-2025 Amendment 2 No. 1008, 2021. READ A FIRST TIME this 14th day of July, 2021. READ A SECOND TIME this 14th day of July, 2021. READ A THIRD TIME this 14th day of July, 2021. REFERED TO A PERIOD OF PUBLIC CONSULTATION on July 22nd, 2021 and July 29th, 2021 of the Similkameen Spotlight Newspaper. ADOPTED this 3rd day of August, 2021.

Mayor Spencer Coyne CAO Lyle Thomas Original signed by Mayor Coyne Original signed by CAO Thomas Schedule “A”

TOWN OF PRINCETON

TAX RATE POLICY 2019

POLICY STATEMENT

The overall objective of the property tax rate policy is to achieve fairness and equity for all tax payers and provide a stable and competitive business environment.

The objectives of the property tax rate policy are to:

• Encourage reserves as a savings for future services; • make Princeton an attractive municipality in which to do business; and • keep residential property tax rates competitive to other municipalities in our region.

Council is committed to ensuring the future prosperity of our Town by ensuring capital funds are available in the future to afford necessary refurbishment and/or replacement of infrastructure.

To attract and retain both commercial and industrial enterprises, Council is committed to maintaining a competitive tax rate system so that commercial and industrial enterprises are paying their fair share of both capital and operating costs, but not more than a business elsewhere in a comparable municipality.

Council will work to keep residential taxes affordable in the Town of Princeton. Princeton’s residential property tax rate must remain competitive with comparable municipalities in the region. Dependence on taxpayer-funded revenues or reserves can be achieved by ensuring that the maximum amount of grants from other levels of government are investigated and/or secured before proceeding on capital projects.

The Town of Princeton is on the cusp of a positive growth curve. Consideration must be made to ensure the reserve amounts retained by the Town each year reflect the continued cost to maintain existing infrastructure. The goal of the financial plan is to retain at minimum the replacement cost of the capital assets of the town. By maintaining this standard, Council is working to ensure that there are enough reserves to replace infrastructure as it requires replacement.

BACKGROUND:

The system of property taxation provides a stable and consistent source of revenue for many services that are difficult or undesirable to fund on a user-pay basis. These include services such as fire protection, bylaw enforcement, libraries, street lighting and infrastructure. For these reasons, property value taxation will continue to be the primary source of municipal revenue.

Many municipal services, such as water and sewer usage, can be measured and charged for on a user-pay basis. This basis attempts to fairly apportion the value of a municipal service to those who make use of it. User fees and charges will continue to form the second largest portion of planned revenue. Council will perform regular reviews of revenue generating areas for appropriate application of rate increases and ensure utilities operate as self-supporting enterprise funds.

PERMISSIVE TAX EXEMPTIONS

Council believes that the Permissive Tax Exemption is an appropriate way to recognize the value of the services provided to the community by non-profit organizations. Council will consider permissive tax exemptions annually. All applications for permissive tax exemptions will be reviewed in accordance with the current Permissive Tax Exemption Policy. Permissive tax Exemptions will be reviewed to ensure that the organization and property still meets the criteria established by Council.

Schedule “B”

TOWN OF PRINCETON

FIVE YEAR CONSOLIDATED FINANCIAL PLAN 2021 – 2025

(in thousands of dollars)

REVENUES 2021 2022 2023 2024 2025

Municipal Taxation 3,160 3,393 3,644 3,915 4,206 Grants-in-Lieu 100 103 105 109 113 Parcel Tax 37 37 52 52 52 Federal and Provincial Grants 2,717 7,595 9,109 689 703 Regional District Contributions 702 691 700 709 718 Sale of Services 1,515 1,557 2,603 1,728 1,778 Licenses, Permits & Fines 81 84 86 89 92 Penalties & Interest on Taxes 34 34 34 34 34 Return on Investments 1,175 1,326 726 1,127 328 Sundry 320 626 633 639 646 Proceeds from Borrowing 650 1,500 1,200 1,200 1,200 Total Revenues 10,491 16,946 18,892 10,291 9,870

EXPENSES 2021 2022 2023 2024 2025

Capital Expenses 4,849 12,541 13,821 1,721 2,721 General Government Services 712 732 752 772 793 Discretionary Grants 45 45 45 45 45 Protective Services 228 208 212 217 223 Emergency Program 222 168 173 178 183 Transit Services 110 110 110 110 110 Economic Development 373 394 401 407 415 Visitor Information Centre 160 159 162 166 170 Public Works 1,543 1,611 1,697 1,787 1,876 Airport 35 38 41 44 47 Parks 79 81 84 86 88 Waste Management 817 840 865 891 917 Cemetery Services 58 59 62 63 65 Recreation and Leisure Services 1,136 1,164 1,196 1,543 1,592 Water System 564 580 597 615 635 Sewer System 332 343 356 368 379 Total Expenses 11,263 19,073 20,574 9,013 10,259 Net Revenue/(Expenditure) (772) (2,127) (1,682) 1,278 (389)

NET CHANGE IN RESERVE

FUNDS

2021 2022 2023 2024 2025

Net change in Future Amenity Reserve 227 (2,056) (1,384) 0 0 Net change in Water Reserve 87 (300) 0 0 0 Net change in Sewer Reserve 0 0 0 0 0 Net change in Industrial Park Reserve (421) (176) 0 0 0 Net change in Capital Works Reserve (62) 13 13 13 13 Net change in Infrastructure Reserve (60) 23 24 25 26 Net change in Fire Equipment Reserve 0 0 300 700 (1,000) Net change in Airport Reserve (181) 0 0 0 0 Net change in Unrestricted Surplus Reserve (362) 369 (635) 540 572 Total Net Change in Reserve Funds (772) (2,127) (1,682) 1,278 (389) Difference 0 0 0 0 0 Planned Sources of Revenue, 2021

Source of Revenue % of Total Revenue Dollar Value (in Thousands $) Municipal Tax Revenue 31.4 % 3,297 Government Grants 25.9 % 2,717 Direct Operating Grants 6.7 % 702 Sales of Services 15.2 % 1,596 Other, Including Investments 14.6 % 1,529 Proceeds of Borrowing 6.2 % 650 Total 100.0 % 10,491

Planned Distribution of Municipal Taxation for 2021

Property Class % of Total Property Taxation Dollar Value Residential (1) 36.1 % $1,155,354 Utilities (2) 1.3 % $41,224 Heavy Industry (4) 39.3 % $1,219,193 Light Industry (5) 7.4 % $236,682 Business and Other (6) 15.8 % $505,260 Recreation or Non-Profit (8) 0.1 % $2,297 Total 100.0 % $3,160,000

Schedule “C” Capital Expenditures and Sources of Funds

Note: As per the purchasing policy of the Town of Princeton (Policy No. 005-2012),

section 7(b)(i), the capital plan is created as listed in Schedule “B” of this bylaw and

these items are deemed supplemental to the single budget line item in Schedule “B”. Capital projects planned for the period from 2022 to 2025 are conceptual in nature and included on Schedule “B” as line items only and will be expanded upon in detail in future financial plans.

OCP/DCC Bylaws Maximum Amount of Expenditure: $100,000 Object: - To adopt a bylaw implementing development cost charges in the Town of Princeton - To update the existing Official Community Plan Source of Funding: Current Year Taxation

Fire Department Equipment Maximum Amount of Expenditure: $50,000 Object: - To replace the current exhaust system in the vehicle bays of the Princeton Volunteer Fire Department building. Source of Funding: 66.67% Current Year Taxation, 33.33% Shared Service Grant from the Regional District of Okanagan-Similkameen

Fire Hall Roof Replacement Maximum Amount of Expenditure: $65,000 Object: - To replace the roof of the Princeton Volunteer Fire Department building. Source of Funding: 66.67% Current Year Taxation, 33.33% Shared Service Grant from the Regional District of Okanagan-Similkameen

Downtown Beautification Maximum Amount of Expenditure: $230,000 Object: - To install a new façade for the Visitors Centre - To install a new public events sign outside of the Visitors Centre Source of Funding: Land Sales Reserve from the Princeton Industrial Park

Campground Capital Improvements Maximum Amount of Expenditure: $200,000 Object: - To install new washroom facilities Source of Funding: Federal and private Grant funding

New Vehicles / Public Works Equipment Maximum Amount of Expenditure: $75,000 Object: - To purchase a used skidsteer style piece of equipment for the Public Works department Source of Funding: Capital Asset Reserve

Paving Program Maximum Amount of Expenditure: $171,000 Object: - To pave various Town roads as determined by Town Staff in Spring 2021 Source of Funding: Federal Gas Tax Funding

Street Signage Replacement Maximum Amount of Expenditure: $30,000 Object: - Year three of a three-year project to replace the various style of street signs in the Town of Princeton with a standardized design. Source of Funding: Current Year Taxation

Flood Mitigation Maximum Amount of Expenditure: $100,000 Object: - To have an engineering firm assess the diking system of the Similkameen River in cooperation with the Village of Keremeos and the Regional District of Okanagan-Similkameen Source of Funding: UBCM Emergency Preparedness Program Grants

Land Acquisition Maximum Amount of Expenditure: $850,000 Object: - To purchase property. Source of Funding: Land Sales

Slope Stability Study Maximum Amount of Expenditure: $40,000 Object: - To have a geotechnical engineering firm assess several of the hillsides above Town property for potential land slippage and remediation suggestions. Source of Funding: Current Year Taxation

Airport Lighting Maximum Amount of Expenditure: $241,000 Object: - To install lighting on the runway of the Princeton Airport, allowing night operations. Source of Funding: 20% Current Year Taxation, 80% Airport Reserve derived from Infrastructure Grant Funding received from the Province of British Columbia in November 2020.

Landfill Operations & Closure Plan Maximum Amount of Expenditure: $60,000 Object: - To create a landfill operations & closure plan as required by the cost sharing agreement between the Town and the RDOS.

Source of Funding: 50% funding from cost sharing agreement with the RDOS, remainder current year taxation.

Princeton Health and Wellness Centre Maximum Amount of Expenditure: $1,000,000 Object: - To build an indoor aquatics facility and community centre. Costs to commence for the project in 2021 with an overall build of approximately three years at a cost of approximately $20 million. Source of Funding: 27% from the Future Amenity reserve, remainder from Infrastructure Grant Funding received from the Province of British Columbia during the build.

Second Bench Hillside Trail Maximum Amount of Expenditure: $75,000 Object: - To rebuild the pathway connecting Fenchurch Ave between the second and third bench residential areas. Source of Funding: Current year taxation

Memorial Park Concession Roof Maximum Amount of Expenditure: $50,000 Object: - To replace the roof over the concession area at the ball diamonds in Memorial Park. Source of Funding: 50% from a capital grant from the RDOS, remainder from current year taxation.

Groundwater Protection Strategy Maximum Amount of Expenditure: $27,000 Object: - To study how groundwater affects the existing water table and the municipal wells in accordance with the requirements of the Ministry of the Environment and Climate Change. Source of Funding: Current Year Taxation

Valve Exerciser Maximum Amount of Expenditure: $5,000 Object: - To purchase a piece of equipment to perform routine maintenance of the water system. Source of Funding: Current Year Taxation

Sewer System Improvements Maximum Amount of Expenditure: $850,000 Object: - To perform: o an assessment of the Fenchurch PS Forcemain; o an assessment of the Angela Ave Sewer River Crossing; o upgrades to the aeration system of the sewer lagoons; and o a replacement of two deficient sections of sewer in the Allison Flats neighbourhood Source of Funding: Federal Infrastructure Grant Funding

Water System Improvements Maximum Amount of Expenditure: $650,000 Object: - To study and then install a fourth source well. Source of Funding: Loaned funds, with temporary funding from the water system reserve until loaned funds are secured.

Schedule “D” Proposed Reserve Transfers & Adjustments for Non-Cash Transactions

Note: As per Section 165(8) of the Community Charter, the proposed transfers to or between funds must be set out for each reserve fund and for any accumulated surplus being added to or used for the fiscal year. Actual transfers between reserve accounts will be done by resolution of Council by the end of February 2022.

Proposed Transfers from Reserve

Planned Transfers to Reserve

2021 2022 2023 2024 2025

Future Amenity Reserve 497 509 521 0 0 Water Reserve 769 0 0 0 0 Sewer Reserve 0 0 0 0 0 Infrastructure Reserve 22 23 24 25 26 Capital Asset Reserve 13 13 13 13 13 Firehall Equipment Reserve 0 0 300 700 0 Unrestricted Surplus 0 369 0 540 572 Total Amounts to Reserve 651 914 858 1,278 611

Planned Transfers from Reserve

2021 2022 2023 2024 2025

Future Amenity Reserve 270 2,565 1,905 0 0 Firehall Equipment Reserve 0 0 0 0 1,000 Water Reserve 682 300 0 0 0 Industrial Park Reserve 421 176 0 0 0 Capital Asset Reserve 75 0 0 0 0 Infrastructure Reserve 82 0 0 0 0 Airport Reserve 181 0 0 0 0 Unrestricted Surplus 362 0 635 0 0 Total Amounts from Reserve 1,423 3,041 2,540 0 1,000

2021 2022 2023 2024 2025

Total Amounts from Reserves 651 914 858 1,278 611 Total Amounts to Reserves 1,423 3,041 2,540 0 1,000 Net Change in Reserves (772) (2,127) (1,682) 1,278 (389)

Proposed Non-Cash Adjustments

The budget as itemized in Schedule “B” is based on a cash basis. In generally accepted accounting standards, capital assets are not expensed fully in the year they are incurred, rather they are capitalized as long-term assets and expensed over several years as an amortization expense. This schedule performs these adjustments to confirm with the financial statements:

2021 2022 2023 2024 2025

Transfers from Capital Expenses to Asset Base 3,649 12,541 13,821 1,721 2,721 Amortization Expenses by Department: General Government 92 91 89 87 85 Protective Services 81 80 78 77 95 Public Works 716 717 719 708 697 Recreation & Leisure Services 67 255 440 431 423 Water 105 118 130 143 155 Sewer 137 155 167 179 190 Visitor Information Centre 22 21 21 20 20 Total Amortization 1,220 1,437 1,644 1,645 1,665 Total Non-Cash Adjustments 2,429 11,104 12,177 76 1,056 Net Unadjusted Change in Reserves (772) (2,127) (1,682) 1,278 (389) Net Adjusted Revenue (Expense) 1,657 8,977 10,495 1,354 667

Schedule “E”

TOWN OF PRINCETON

PERMISSIVE TAX EXEMPTION POLICY

POLICY STATEMENT

The Town of Princeton recognizes the significant value of volunteers, volunteer groups and agencies to the spiritual, educational, social, cultural, and physical well-being of the region. A property tax exemption is a means for Council to support organizations within the town that further Council’s objective to enhance the quality of life while delivering services economically to the citizens of the town.

1) PURPOSE

a) To provide clarity, consistency and certainty to the Town, the public and prospective applicants in processing applications for exemption from property taxes pursuant to section 224 of the Community Charter.

2) RESPONSIBILITIES

a) Council may: • Make revisions, additions or deletions to the Policy. • Receive delegations from non-profit organizations requesting a tax exemption under this policy. • Consider property tax exemption applications on an annual basis. b) The Director of Finance, Chief Administrative Officer or their delegate, shall: • Review the policy, from time to time, and provide Council with changes, if required. • Establish an application deadline. • Advertise the opportunity to apply for a property tax exemption in the local newspaper twice prior to the application deadline. • Ensure application forms are available at Town Hall. • Review all applications for completeness and contact the applicant if additional information is necessary. • Prepare a summary report of applications and bylaw for presentation to Council at their mid- September meeting for consideration, approval and adoption prior to October 31st of each year. • Ensure the advertising and public notice processes comply with Section 94 of the Community Charter. • Submit a public notice of the proposed bylaw to be placed in local newspapers. The notice will include: − Property subject to bylaw − Description of the proposed exemption − Number of years the exemption will be provided − Estimate of the amount of taxes that would be imposed on the property if it were not exempt for the year of exemption. c) The Applicant shall: • Submit a complete application to the Town on the approved form prior to July 31st of each year. • Provide the information required to adjudicate the application. • Appear before Council, if required. • Provide records and/or property to verify information provided in support of application.

3) PROCEDURES

a) Eligibility Criteria To be eligible for a property tax exemption an organization must comply with all of the eligibility criteria outlined below. The application forms and supporting documentation are an integral part of this policy. There is no obligation on the part of Council to grant property tax exemptions in any given year. The applicant(s) must: • qualify for an exemption under the provisions of the Community Charter general authority for property tax exemptions. (Section 224) • be in compliance with Town policies, plan s, bylaws, and regulations (i.e. zoning); • be a Non-Profit Organization; • not be in competition with for-profit business. • provide services or programs that are compatible or complementary to those offered by the Town. When a service or program is offered by a non -profit group or club, the community benefits from a more cost -effective provision of services; • provide a service that fulfills some basic need, or otherwise improves the quality of life for residents of the Town of Princeton. b) The principal use of property must meet Council’s objectives. The “principal use of the property” refers to the use related directly to the pri ncipal purpose of the organization owning the property. Property tax exemptions will be based on the principal use of the property, not on the non -profit or charitable services of the organization. c) The organization will provide benefits and accessibility to the residents of the town. specifically, members of the public, within the appropriate age range, are able to join a club or organization and participate in its activities for a nominal rate or fee; Town residents must be the primary beneficiaries of the organization’s services. The services provided on the property must be accessible to the public. Council may, at its discretion, provide partial exemptions. d) *removed October 7, 2019*; e) Organizations that provide short term housing with length of stay up to a maximum of two years, including emergency shelters, transitional housing, supportive housing for people with special needs, and group homes are eligible. f) Organizations that have a residence in the building or on the property will only be exempt if a caretaking function is performed and the property owner (organization) can provide a copy of an agreement demonstrating: • rent is not collected on the residence; and, • there is a caretaker agreement in place.

4) PUBLIC NOTICE

a) Successful applicants may be asked to publicly acknowledge the exemption.

5) DISCLAIMER

a) Council may, at its discretion, reject any or all applicants in any given year. b) Applications received after the deadline of July 31st will not be considered until the following year’s submissions to Council.

6) DURATION AND TERMINATION

a) Unless otherwise passed by Council, permissive tax exemptions will be for a ten (10) year duration b) Council may revoke a permissive tax exemption in any year of the ten (10) year period by bylaw if the group receiving the exemption violates this policy, no longer is eligible for an exemption as per this policy, or no longer qualify as per legislation (Community Charter).