Bylaw No. 1045, 2023 Five-Year Financial Plan Bylaw

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TOWN OF PRINCETON

BYLAW 1045, 2023

FIVE YEAR FINANCIAL PLAN BYLAW 2024 - 2028

A bylaw to adopt the Financial Plan for the years 2024-2028

WHEREAS Section 165 of the Community Charter requires the Council to prepare and adopt a Financial Plan for the five-year period for the years 2024 to 2028; NOW THEREFORE, the Council of the Town of Princeton, in open meeting assembled, enacts as follows:

1. That this Bylaw be cited for all purposes as the “Town of Princeton Five Year

Financial Plan Bylaw 2024-2028 No. 1045, 2023”.

2. Schedules “A”, “B”, “C”, “D”, “E”, “F” and “G” attached hereto and made part of the

Bylaw, is hereby adopted and is the Financial Plan of the Town of Princeton, for the years ending December 31, 2024 to December 31, 2028

3. The Town of Princeton Financial Plan Bylaw 2023-2027 No. 1035, 2023 is hereby

repealed. READ A FIRST TIME THIS 7th day of November 2023 READ A SECOND TIME THIS 7th day of November 2023 REFERRED TO A PERIOD OF PUBLIC CONSULTATION and published notices in the local newspaper on this 29th day of February 2024 and this 7th day of March 2024 READ A THIRD TIME AS AMENDED THIS 3rd day of April 2024 ADOPTED 17th day of April 2024

Mayor Spencer Coyne CAO Lyle Thomas Original signed by CAO Thomas Original signed by Mayor Coyne Page 2

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 Page 3

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.

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Schedule “B”

TOWN OF PRINCETON

FIVE YEAR CONSOLIDATED FINANCIAL PLAN 2024 – 2028

(in thousands of dollars)

REVENUES 2024 2025 2026 2027 2028

Municipal Taxation 4,450 4,818 5,222 5,665 6,151 Grants-in-Lieu 454 467 480 494 508 Parcel Tax 37 37 37 37 37 Federal and Provincial Grants 19,545 27,498 714 729 729 Regional District Contributions 1,695 1,922 590 590 590 Sale of Services 4,734 2,209 2,275 2,330 2,342 Licenses, Permits and Fees 125 128 132 136 136 Penalties and Interest on Taxes 40 40 40 40 40 Return on Investments 5,073 3,325 2,350 1,150 1,150 Sundry 2,446 956 970 983 983 Proceeds from Borrowing 4,750 2,079 0 0 0 Total Revenues 43,349 43,479 12,810 12,154 12,666

EXPENSES 2024 2025 2026 2027 2028

Capital Expenses 39,873 37,305 1,725 225 225 General Government Services 1,354 1,367 1,442 1,447 1,455 Discretionary Grants 150 105 105 105 105 Protective Services 277 286 296 308 319 Emergency Program 430 181 182 182 182 Transit Services 135 139 143 148 152 Economic Development 512 487 494 503 511 Visitor Information Centre 387 399 411 422 432 Municipal Campground 240 248 255 263 271 Public Works 2,046 2,102 2,159 2,218 2,245 Airport 188 193 199 205 210 Parks 150 157 165 174 182 Waste Management 826 851 876 903 929 Cemetery Services 82 84 86 88 88 Recreation / Leisure Services 1,228 1,246 1,278 1,313 1,332 Water 878 795 816 839 850 Sewer 763 775 786 801 802 Total Expenses 49,519 46,720 11,418 10,144 10,290

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NET CHANGE IN RESERVE FUNDS 2024 2025 2026 2027 2028

Net change in Future Amenity Reserve (3,709) 111 126 142 158 Net change in Capital Works Reserve 16 16 16 16 16 Net change in Infrastructure Reserve 30 31 31 32 32 Net change in Land Sales Reserve (1,000) 0 0 0 0 Net change in Water Reserve (1,000) 14 41 42 31 Net change in Sewer Reserve (33) 13 16 0 0 Net change in Development Cost Charge Reserve 322 500 500 500 500 Net Change in Fire Department Capital Reserve 400 (1,000) 400 400 400 Net change in Growing Communities Fund Reserve 0 (1,989) 0 0 0 Net change in Consolidated Cash Reserve (1,196) (937) 262 878 1,239 Total Net Change in Reserve Funds (6,170) (3,241) 1,392 2,010 2,376 Difference 0 0 0 0 0

Planned Sources of Revenue, 2024

Source of Revenue % of Total Revenue Dollar Value (in Thousands $) Municipal Tax Revenue 11.4 % 4,941 Government Grants 45.1 % 19,545 Direct Operating Grants 3.9 % 1,695 Sales of Services 11.2 % 4,859 Proceeds from Borrowing 10.9 % 4,750 Other, Including Investments 17.5 % 7,559 Total 100.0 % 43,349

Planned Distribution of Municipal Taxation for 2024

Property Class % of Total Property Taxation Dollar Value Residential (1) 34.4 % $1,699,983 Utilities (2) 10.0 % $496,702 Heavy Industry (4) 33.1 % $1,636,898 Light Industry (5) 7.4 % $365,051 Business and Other (6) 15.0 % $739,542 Recreation or Non-Profit (8) 0.1 % $2,824 Total 100.0 % $4,941,000

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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 2025 to 2028 are conceptual in nature and included on Schedule “B” as line items only and will be expanded upon in detail in future financial plans.

Capital Items for the Fiscal Year ending December 31, 2024:

Land Purchases (Project No. 2024-001) Maximum Amount of Expenditure: $150,000 Department: General Government Object: - To purchase land for municipal purposes Source of Funding: Land Sales Reserve

Campground Capital Improvements (Project No. 2023-006) Maximum Amount of Expenditure: $150,000 Department: Economic Development Object: - To install new washroom facilities at the Princeton Municipal Campground Source of Funding: Federal Economic Development Grant

Bridge Street Park (Project No. 2023-007) Maximum Amount of Expenditure: $200,000 Department: Parks Object: - To add an amphitheatre to the new park on Bridge Street. Source of Funding: Federal Economic Development Grant

Princeton & District Arena Improvement Project (Project No. 2023-016) Maximum Amount of Expenditure: $391,000 Department: Recreation & Leisure Services Object: - To acquire a new ice resurfacing machine and ice edging machine using electrical power - To acquire and install solar panels for the arena roof to offset the arena’s electricity use and carbon footprint Source of Funding: General Taxation, contributions from the Regional District of Okanagan-Similkameen, federal green infrastructure grant funding, and the arena reserve.

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New Vehicles / Public Works Equipment (Project No. 2024-003) Maximum Amount of Expenditure: $600,000 Department: Public Works / General Government Object: - To purchase equipment for the Public Works Department - To purchase new vehicles for the Building Services and Bylaw Department Source of Funding: Short-Term Borrowing (Municipal Finance Authority Equipment Purchasing Program)

Airport Lighting Project (Project No. 2023-021) Maximum Amount of Expenditure: $1,080,000 Department: Airport Object: - To install new lighting on the runway at the Princeton Aerodrome Source of Funding: Provincial Infrastructure Grant, Land Sales Reserve and Surplus Operational Revenue

Airport Fuel System Replacement Project (Project No. 2023-022) Maximum Amount of Expenditure: $215,000 Department: Airport Object: - To install a new fueling system and new fuel tanks at the Princeton Aerodrome Source of Funding: Surplus Operational Revenue and the Land Sales Reserve

Second Bench Hillside Trail (Project No. 2023-023) Maximum Amount of Expenditure: $100,000 Department: Parks Object: - To rebuild the pathway connecting Fenchurch Ave between the second and third bench residential areas. Source of Funding: Surplus Operational Revenue

Fire Hydrant Replacement (Project No. 2023-028) Maximum Amount of Expenditure: $20,000 Department: Public Works Object: - To replace obsolete fire hydrants within Town limits. Source of Funding: Surplus Operational Revenue

Generator – Ponderosa Lift Station (Project No. 2023-029) Maximum Amount of Expenditure: $38,000 Department: Sewer Object: - To supply and install an emergency generator for sewerage at the Ponderosa Lift Station, preventing possible backflow issues on the third bench residential area Source of Funding: Sewer Reserve

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Storm System Study (Project No. 2023-031) Maximum Amount of Expenditure: $100,000 Department: Public Works Object: - To investigate and find deficiencies in the storm water system in the Downtown area, plan for major repairs in future capital budgets and make minor repairs Source of Funding: Infrastructure Grant Funding

Industrial Park Water Main Loop (Project No. 2023-032) Maximum Amount of Expenditure: $1,100,000 Department: Public Works Object: - To procure and install a water main loop within the industrial park for the purposes of providing water to the temporary housing project on Stan Thompson Drive Source of Funding: Provincial Flood Assistance Grant

Rocklin Ave & Highway 3 Improvements (Project No. 2023-033) Maximum Amount of Expenditure: $50,000 Department: Public Works Object: - To make safety improvements to the intersection of Rocklin Avenue and Highway 3. Source of Funding: Surplus Operational Revenue

SCADA (Project No. 2023-047) Maximum Amount of Expenditure: $200,000 Department: Water Object: - To supply and install a new SCADA monitoring system to replace the system destroyed by lightning. Source of Funding: Insurance Claim

Culbertson Lift Station (Project No. 2023-033) Maximum Amount of Expenditure: $685,000 Department: Water Object: - To supply and install a new design, including building and mechanical parts for the machinery at the Culbertson Lift Station. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority) and Development Cost Charges

Hauled Liquid Waste Pit (Project No. 2023-050) Maximum Amount of Expenditure: $30,000 Department: Sewer Object: - To complete the construction of a fourth liquid waste pit. Source of Funding: Regional District of Okanagan-Similkameen Capital Grant Page 9

Landfill Scale Replacement (Project No. 2023-054) Maximum Amount of Expenditure: $60,000 Department: Waste Management Object: - To supply and install new vehicle scale at the Princeton Landfill. Source of Funding: Land Sales Reserve / Surplus Operational Revenue

Park Refurbishment/Upgrades (Project No. 2023-057) Maximum Amount of Expenditure: $50,000 Department: Parks Object: - To replace portions of parks that have been destroyed by the 2021 Tulameen River Flooding Event Source of Funding: Disaster Financial Assistance Program of Emergency Management BC

Memorial Park (Project No. 2023-063) Maximum Amount of Expenditure: $25,000 Department: Recreation & Leisure Services Object: - To supply funding for the provision of pickleball courts at Memorial Park, provisional on a grant received by the Princeton Pickleball Association Source of Funding: Future Amenity Fund and Deferred Revenue

Visitor Centre Roof (Project No. 2024-008) Maximum Amount of Expenditure: $50,000 Department: Economic Development Object: - To replace visitor centre roof Source of Funding: Land Sales Reserve

Vehicle Replacements – Flood (Project No. 2023-065) Maximum Amount of Expenditure: $652,000 Department: Public Works Object: - To replace vehicles damaged in the November 14, 2021 Tulameen River flooding event. Source of Funding: Insurance proceeds, Provincial Grant through Emergency Management BC and the Capital Works Reserve Fund

Public Works Yard Replacement (Project No. 2023-066) Maximum Amount of Expenditure: $3,925,000 Department: Public Works Object: - To replace the Public Works Yard building that was damaged during the November 14, 2021 Tulameen River flooding event - To demolish the former Community Services Building that was damaged during the November 14, 2021 Tulameen River flooding event. Source of Funding: Insurance proceeds Page 10

Lift Station and Sewer Line at Lagoons (Project No. 2023-067) Maximum Amount of Expenditure: $1,300,000 Department: Sewer Object: - To replace undersized lift station and sewer line outside sewer lagoons. Source of Funding: Provincial Recovery Grant

Sewer Trunk Main Replacement (Project No. 2023-069) Maximum Amount of Expenditure: $2,200,000 Department: Sewer Object: - To replace the main trunk sewerage line from the Tulameen River crossing through the downtown area (via a route to be determined by the Public Works Department) to the Fenchurch Sewer Lift Station. Source of Funding: Borrowed Funds (Long Term Borrowing through the Municipal Finance Authority)

Infrastructure Master Plan (Project No. 2023-072) Maximum Amount of Expenditure: $100,000 Department: Public Works Object: - To conduct a study and create a master plan that will provide medium and long-term (up to 25 years) maintenance and replacement needs for the Town’s water and sewer systems. Source of Funding: Borrowed Funds (Long Term Funding through the Municipal Finance Authority)

Angela Avenue Sewer Lift Station (Project No. 2023-073) Maximum Amount of Expenditure: $1,000,000 Department: Sewer Object: - To design and construct a new sewer lift station as the current design for the main trunk line replacement through the downtown core requires this facility. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Decommissioning of Wells 1 & 2 and Replacement Facilities (Project No. 2023- 074) Maximum Amount of Expenditure: $4,600,000 Department: Water Object: - To decommission the two wells located in Memorial Park as the infiltration risk to these facilities exceeds Health Authority guidelines. Also includes funding for the design and supply of two new wells at alternate locations within the Town, disinfection facilities for the water drawn and connection to the Town’s water supply. Source of Funding: Provincial Grant through Emergency Management BC

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Age Friendly Assessment and Plan and Poverty Reduction Plan (Project No. 2023- 076) Maximum Amount of Expenditure: $130,000 Department: General Government (Corporate Department) Object: - To adapt municipal planning strategies using age-appropriate strategies. - To adapt municipal planning strategies using poverty reduction strategies, Source of Funding: Grant provided by UBCM

Brown Bridge Deck & Railing Repairs (Project No. 2023-077) Maximum Amount of Expenditure: $250,000 Department: Public Works Object: - To install necessary engineering upgrades to the Brown Bridge Source of Funding: UBCM Gas Tax Funds

Statues (Project No. 2024-009) Maximum Amount of Expenditure: $50,000 Department: Economic Development Object: - To procure and install more bronze statues throughout the Town of Princeton Source of Funding: Land Sales Reserve

Riverside Tulameen River Crossing (Project No. 2023-097) Maximum Amount of Expenditure: $2,151,000 Department: Sewer Object: - To repair the sewer crossing of the Tulameen River by the Riverside Community Centre with a new directional drilling pipe and a sewer pump station. Source of Funding: Disaster Financial Assistance Program of Emergency Management BC and Federal Infrastructure Grant Funding combined with Long-Term Borrowing through the Municipal Finance Authority.

Recreation Master Plan (Project No. 2023-086) Maximum Amount of Expenditure: $80,000 Department: Parks & Recreation Object: - To develop an overall Town operating and capital plan for the Parks & Recreation Department Source of Funding: Surplus Operational Funding

Zoning Bylaw (Project No. 2023-090) Maximum Amount of Expenditure: $120,000 Department: General Government (Corporate Department) Object: - To update the Town’s Zoning Bylaw Source of Funding: Surplus Operational Funding

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Urban Wildlife and Deer Select Committee (Project No. 2023-093) Maximum Amount of Expenditure: $25,000 Department: Protective Services Object: - To create a plan to manage wildlife within Town boundaries Source of Funding: Surplus Operational Funding

Recreational Facility Phase 2 (Project No. 2024-010) Maximum Amount of Expenditure: $5,630,000 Department: Parks & Recreation Object: - To study, design and construct a recreational facility. Source of Funding: Infrastructure Grant, Future Amenity Fund Draw, Sales of Sponsorship, Land Sales Reserve, RDOS Capital Funding and Short-Term Borrowing through the Municipal Finance Authority

Recreational Facility Phase 3 (Project No. 2024-011) Maximum Amount of Expenditure: $6,000,000 Department: Parks & Recreation Object: - To study, design and construct a recreational facility. Source of Funding: Infrastructure Grant, Future Amenity Fund Draw, Sales of Sponsorship, Land Sales Reserve, RDOS Capital Funding and Short-Term Borrowing through the Municipal Finance Authority

Water Meter Reader (Project No. 2024-012) Maximum Amount of Expenditure: $800,000 Department: Water Object: - To procure sufficient water meters to supply and install one for every residential water customer within the Town of Princeton without a water meter and to implement a full metered water service within the Town. Source of Funding: Water reserve

Ground Works – Downtown Plaza (Project No. 2024-013) Maximum Amount of Expenditure: $75,000 Department: Parks & Recreation Object: - To supply and install adequate ground cover for the outdoor plaza on Bridge Street. Source of Funding: Land Sales Reserve

Annex Third Floor Renovations (Project No. 2024-014) Maximum Amount of Expenditure: $30,000 Department: Protective Services Object: - To renovate the Town Hall Annex building’s third floor for provision of an Emergency Operations Centre. Source of Funding: UBCM EOC Grant Page 13

Ladder Truck (Project No. 2024-018) Maximum Amount of Expenditure: $75,000 Department: Protective Services Object: - To procure a ladder truck for use of the Princeton Volunteer Fire Department Source of Funding: Fire Department Equipment Reserve Fund

Former Public Works Road Banking Project (Project No. 2024-016) Maximum Amount of Expenditure: $1,500,000 Department: Civil Works Object: - To rebuild the diking system along the former Public Works Yard dike. Source of Funding: Provincial Grant through Emergency Management BC

Replacement Administrative Program (Project No. 2024-017) Maximum Amount of Expenditure: $50,000 Department: General Government Object: - To supply and install a replacement administrative and accounting program for the Town of Princeton Source of Funding: Surplus Operational Revenue

Boardwalk Project (Project No. 2024-019) Maximum Amount of Expenditure: $400,000 Department: Public Works Object: - To supply and install replacement sidewalks along Bridge Street Source of Funding: Land Sales Reserve

Campground Water System Project (Project No. 2024-021) Maximum Amount of Expenditure: $71,000 Department: Civil Works Object: - To supply and install a water system for the Princeton Municipal Campground that meets modern-day standards for water quality. Source of Funding: Provincial Grant through Emergency Management BC

Cenotaph Concrete Replacement Project (Project No. 2024-022) Maximum Amount of Expenditure: $550,000 Department: Public Works Object: - To supply and install a new surface at Veterans Square. Source of Funding: Surplus Operational Revenue

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Museum Structural Rebuild Project (Project No. 2024-023) Maximum Amount of Expenditure: $200,000 Department: Public Works Object: - To rebuild the front of the Princeton & District Museum building repairing cracked structural damage. Source of Funding: Surplus Operational Revenue

Parks Irrigation System Project (Project No. 2024-021) Maximum Amount of Expenditure: $115,000 Department: Public Works Object: - To supply and install new irrigation equipment at Town Parks. Source of Funding: Infrastructure Grant Funding

Paving Program (Project No. 2024-007) Maximum Amount of Expenditure: $2,240,000 Department: Public Works Object: - To reconstruct various sidewalks within Town boundaries according to a

schedule as proposed by the Infrastructure and Public Works departments.

- To reconstruct various downtown roads within Town boundaries affected by the November 2021 Tulameen River Floods according to a schedule as proposed by the Infrastructure and Public Works departments. Source of Funding: Provincial Grant through Emergency Management BC and Surplus Operational Funds

Industrial Park Signage (Project No. 2024-026) Maximum Amount of Expenditure: $20,000 Department: Economic Development Object: - To install signage identifying the Princeton Industrial Park Source of Funding: Rural Dividend Grant

Visitors Centre Electric Signage (Project No. 2024-027) Maximum Amount of Expenditure: $50,000 Department: Economic Development Object: - To replace the old public events electronic sign outside the Princeton Visitors Centre with a new model. Source of Funding: Rural Dividend Grant

Tulameen Ave Retaining Wall Replacement (Project No. 2024-028) Maximum Amount of Expenditure: $400,000 Department: Public Works Object: - To replace a deficient retaining wall under Tulameen Avenue. Source of Funding: Provincial Infrastructure Grant Page 15

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. Actual transfers between reserve accounts will be done by resolution of Council by the end of February 2025.

Proposed Transfers to or from Reserve:

Planned Transfers to Reserve

2024 2025 2026 2027 2028

Future Amenity Reserve 96 111 126 142 158 Water Reserve 0 39 41 42 31 Sewer Reserve 12 13 16 0 0 Infrastructure Reserve 30 31 31 32 32 Capital Asset Reserve 16 16 16 16 16 Land Sales Reserve 1,048 2,025 1,250 50 50 Firehall Equipment Reserve 400 400 400 400 400 Development Cost Charge Reserve 1,000 500 500 500 500 Growing Communities Fund Reserve 0 0 0 0 0 Unrestricted Surplus 0 0 262 878 1,239 Total Amounts to Reserve 2,602 3,135 2,642 2,060 2,426

Planned Transfers from Reserve

2024 2025 2026 2027 2028

Land Sales Reserve 2,048 2,025 1,250 50 50 Water Reserve 1,000 25 0 0 0 Sewer Reserve 45 0 0 0 0 Future Amenity Reserve 3,805 0 0 0 0 Firehall Equipment Reserve 0 1,400 0 0 0 Proceeds of Borrowing 1,450 679 0 0 0 Development Cost Charge 678 0 0 0 0 Growing Communities Fund 0 1,989 0 0 0 Unrestricted Surplus 1,196 937 0 0 0 Total Amounts from Reserve 13,522 8,455 1,250 50 50

2024 2025 2026 2027 2028

Total Amounts from Reserves 13,522 8,455 1,250 50 50 Total Amounts to Reserves 2,602 3,135 2,642 2,060 2,426 Net Change in Reserves 10,920 5,320 (1,392) (2,010) (2,376)

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Proposed Non-Cash Adjustments

The budget as itemized in Schedule “B” is based on a cash basis. 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 conform with the financial statements of the municipality:

2024 2025 2026 2027 2028

Transfers from Capital Expenses to Asset Base 39,253 37,305 1,725 225 225 Expected Amortization Expenses by Department: General Government 105 103 101 99 97 Economic Development 48 72 71 71 71 Protective Services 77 194 190 186 182 Public Works 959 958 967 951 935 Recreation & Leisure Services 346 345 346 340 335 Civil Works (Water + Sewer) 596 1,147 1,124 1,101 1,079 Total Amortization 2,131 2,819 2,799 2,748 2,699 Capital Plan Adjustments 37,122 34,486 (1,074) (2,523) (2,474) Net Unadjusted Change in Reserves 10,920 5,320 (1,392) (2,010)

(2,376) Net Adjusted Revenue (Expense) (26,642) (29,166) 318 (513) (98)

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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 Page 18

− 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, plans, 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 principal 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*; Page 19

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).

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Schedule “F”

TOWN OF PRINCETON

RESERVE FUND ENABLING

As per Section 188 (1) of the Community Charter, the following reserve funds are established for the Town of Princeton:

Definitions:

Cash Based Reserves Reserves, when the sum of funds is aggregated, add to the amount of cash and cash equivalents held by the Town at a given time. Cash based reserves are detailed below as per operating reserve funds and capital reserve funds. Capital reserve funds are protected by the capital purpose restrictions in Sections 188 (b), (c), (d) and (e) and

Section 189 of the Community Charter

Non-Cash Based Equity Accounts Accounts that are required in the financial statements to arrive at statements that meet the requirements of Generally Accepted Accounting Principles.

Park Land Reserve Cash Based Capital Reserve - The reserve will be credited with o Interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter; and,

o Under Section 188(2)(b), the reserve will be credited with proceeds from: ▪ sale of park land ▪ disposal of park land in accordance with Section 27(2)(b) of the Community Charter ▪ provision of park land on subdivision in accordance with Section 510(14) of the Local Government Act. - Use of funds is limited to o the acquisition of park lands in accordance with 188(2)(b) of the Community Charter. Land Sales Reserve Cash Based Capital Reserve - The reserve will be credited with o Interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter; and,

o Under Section 188(e) of the Community Charter, the reserve will be credited with proceeds from: ▪ gain on sale of land and improvements. - Use of funds is limited to: o the payment of any debt remaining in relation to the property. o acquisition of land, improvements, and other assets of a capital nature.

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Landfill Closure Reserve Cash Based Capital Reserve - The reserve will be credited with o Interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter; and,

o the estimated amount of funds needed to close the landfill adjusted for the usage of the landfill as conducted during the Town’s annual financial audit. - Use of the funds is limited to: o site operations, remediation, closure, and post-closure monitoring of the Princeton & District Landfill. Water System Reserve Cash Based Operational Reserve - The reserve will be credited with o Interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any surplus amounts from the revenue derived from user fees in the water system less operational funds expended and capital funds expended as authorized by the financial plan for the water system for a given fiscal year; o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o the opening balance of the water system improvements reserve as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021; and, - Use of the funds is limited to: o Operational funds to facilitate the provision of services to users of the Town’s water system; o Capital projects to facilitate the provision of water to users of the Town’s water system by transferring the funds to the Water System Capital Reserve; or o Capital projects to facilitate the provision of water to users of the Town’s water system of a capital nature but are deemed operational due to minimal expense amounts as prescribed in the Town’s capital asset policy.

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Sewer System Reserve Cash Based Operational Reserve - The reserve will be credited with o Interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any surplus amounts from the revenue derived from user fees in the sewerage system less operational funds expended and capital funds expended as authorized by the financial plan for the sewerage system for a given fiscal year; o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o the opening balance of the sewer system improvements reserve as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021; and, - Use of the funds is limited to: o Operational funds to facilitate the provision of services to users of the Town’s sewerage system; o Capital projects to facilitate the provision of sewerage to users of the Town’s sewerage system by transferring the funds to the Sewer System Capital Reserve; or o Capital projects to facilitate the provision of sewerage services to users of the Town’s sewerage system of a capital nature but are deemed operational due to minimal expense amounts as prescribed in the Town’s capital asset policy. Future Amenity Reserve Cash Based Capital Reserve - The reserve will be credited with o Interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o None, any or all dividends payable from the Vermilion Forks Community Forest Corporation in a given fiscal year; o None, any or all net taxation from the lands annexed into the Town of Princeton under Order in Council No. 831 on December 31, 2015; o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o The opening balance of the Future amenity reserve as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o direct operational costs of the lands annexed into the Town of Princeton under Order in Council No. 831 on December 31, 2015. o The construction of facilities or amenities that directly improve the quality of life of residents of the Town of Princeton.

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Firehall Equipment Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o none, any or all dividends payable from the Vermilion Forks Community Forest Corporation in a given fiscal year granted by resolution of Council; o none, any or all net taxation from the lands annexed into the Town of Princeton under Order in Council No. 831 on December 31, 2015 allocated by resolution of Council; o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o By the opening balance of the Firehall equipment and Fire department capital - RDOS amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o capital costs for equipment relating to the operation of the Princeton Volunteer Fire Department o capital costs for the building and improvements housing the Princeton Fire Hall PXA Grounds Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o by the opening balance of the PXA grounds amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o capital costs for equipment relating to the operation of the Princeton Exhibition Grounds o capital costs for the building and improvements housing the Princeton Exhibition Grounds Arena Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o by the opening balance of the arena amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o capital costs for equipment and building improvements relating to the Princeton & District Arena. Page 24

Road Paving Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o by the opening balance of the road paving amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o capital costs for eligible improvements to items identified as eligible for Federal Gas Tax funding as per the agreement between the Government of Canada and the Union of BC Municipalities as this agreement applies to the Town of Princeton. Industrial Park Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o by the opening balance of the industrial park amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o capital costs for eligible improvements to the Princeton Industrial Park, designated as areas within District Lot 932 of the Kamloops Division of the Yale Land District. Infrastructure Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any amounts council grants by resolution from the consolidated cash surplus reserve account; o amounts levied under the Town of Princeton Infrastructure Levy Bylaw No. 958, 2019; and, o by the opening balance of the infrastructure reserve amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o capital costs for infrastructure costs as directed by Council under the Financial Plan.

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Capital Equipment Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter;

o any amounts council grants by resolution from the consolidated cash surplus reserve account; and, o by the opening balance of the capital works and machinery amounts as described in Note 9 of the Consolidated Financial Statements of Town of Princeton for the year ended December 31, 2021. - Use of the funds is limited to: o purchase of new machinery or equipment that is replacing existing machinery or equipment that was credited to the reserve in previous or current years. Cemetery Care Fund Reserve Cash Based Capital Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter; and,

o amounts received and directed to the care fund as defined by Part 7 of the Cremation, Interment and Funeral Services Act. - Use of the funds is limited to: o legal use of funds defined by Part 7 of the Cremation, Interment and Funeral Services Act. Deferred Revenue Reserve Cash Based Operational Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter; and,

o amounts received for capital or operational projects for any municipal purpose that have not been substantially completed. - Use of the funds is limited to: o The disposition of the funds for completion of the projects for which the funds are received as defined in the financial plan. Consolidated Cash Reserve Cash Based Operational Reserve - The reserve will be credited with o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter; and,

o any cash amounts not allocated to a capital or an operational reserve. - Use of the funds is limited to: o Operational or capital expenses defined in the Financial Plan as defined by

Division 5 of the Community Charter.

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Growing Communities Fund Reserve Cash Based Capital Reserve - The reserve will be credited with o Funds received from the Province of British Columbia from the Growing Communities Fund; and, o interest earned on any existing money earned on the reserve fund as per

Section 189 (1) of the Community Charter.

- Use of the funds is limited to: ▪ Public drinking water supply, treatment facilities and water distribution; ▪ Local portion of affordable/attainable housing developments; ▪ Childcare facilities; ▪ Municipal or regional capital projects that service, directly or indirectly, neighbouring First Nation communities; ▪ Wastewater conveyance and treatment facilities; ▪ Storm water management; ▪ Solid waste management infrastructure; ▪ Public safety/emergency management equipment and facilities not funded by senior level government; ▪ Local road improvements and upgrades; ▪ Sidewalks, curbing and lighting; ▪ Active transportation amenities not funded by senior level government; ▪ Improvements that facilitate transit service; ▪ Natural hazard mitigation; ▪ Park additions/maintenance/upgrades including washrooms/meeting space and other amenities; ▪ Recreation-related amenities; and, ▪ Uses as passed by Town of Princeton Council Resolution 2023 -055- RES and Town of Princeton BC Growing Communities Reserve Fund Bylaw No. 1037, 2023. o Further to the above-noted capital costs, one-off costs can include: ▪ Costs of feasibility studies (including infrastructure capacity assessment); other early-stage development work; costs of designing, tendering and acquiring land (where it is wholly required for eligible infrastructure projects); constructing eligible infrastructure projects; and, in limited situations, non-capital administrative costs where these are necessary, for example adding staff capacity related to development or to establish complementary financing for local government owned infrastructure or amenities. Long Term Loan Reserve Non-Cash Based Equity Account - The reserve will be credited with o amounts the municipality will be liable for more than 12 months into the future. Deferred Revenue Offset Reserve Non-Cash Based Equity Account - The reserve will be credited with o the equivalent amounts that are in the deferred revenue reserve to balance both these reserves to a zero balance. Page 27

o as deferred revenue is defined to be a liability under Generally Accepted Accounting Principles, the amount of equity that can be allocated to deferred revenue is zero. Investment in Capital Assets Non-Cash Based Equity Account - The reserve will be credited with o the amount of Tangible Capital Assets the Town of Princeton possesses. Unrestricted Surplus Non-Cash Based Equity Account - The reserve will be credited with o any amount not allocated to another reserve in this schedule.