Town bylaw 1054: Bylaw No. 1054, 2025 Five Year Financial Plan 2025-2029

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TOWN OF PRINCETON

BYLAW 1054, 2024

FIVE YEAR FINANCIAL PLAN BYLAW 2025 - 2029

A bylaw to adopt the Financial Plan for the years 2025-2029

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 2025 to 2029; 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 2025-2029 No. 1054, 2024”.

2. Schedules “A”, “B” , “C”, “D”, “E” and “F” 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, 2025 to December 31, 2029

3. The Town of Princeton Financial Plan Bylaw 2024-2028 No. 1045, 2023 is hereby

repealed. READ A FIRST TIME THIS 28th day of November 2024 READ A SECOND TIME THIS 28th day of November 2024 REFERED TO A PERIOD OF PUBLIC CONSULTATION and published notices in the local newspaper on this 6th day of March 2025 and this 13th day of March 2025. READ A THIRD TIME AS AMENDED ON THIS 16th day of April 2025 ADOPTED THIS 7th day of May 2025

Mayor Spencer Coyne CAO Lyle Thomas Original signed by Mayor Coyne Original signed by CAO Thomas 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 2025 – 2029

(in thousands of dollars)

REVENUES 2025 2026 2027 2028 2029

Municipal Taxation 4,765 5,004 5,258 5,526 5,811 Grants-in-Lieu 456 474 492 513 533 Parcel Tax 38 38 38 38 38 Federal and Provincial Grants 22,697 1,386 589 610 631 Regional District Contributions 826 296 296 296 296 Sale of Services 3,065 2,158 2,255 2,356 2,462 Licenses, Permits and Fees 1,320 1,333 347 361 376 Penalties and Interest on Taxes 82 86 88 92 97 Return on Investments 1,009 1,604 841 894 960 Sundry 3,357 224 232 240 250 Proceeds from Borrowing 2,840 - - - - Total Revenues 40,455 12,603 10,436 10,926 11,454

EXPENSES 2025 2026 2027 2028 2029

Capital Expenses 46,193 1,812 1,835 395 395 General Government Services 2,252 2,379 2,435 2,535 2,638 Discretionary Grants 68 68 68 68 68 Protective Services 729 739 748 759 770 Transit Services 162 169 175 182 190 Economic Development 218 219 219 220 220 Visitor Information Centre 372 384 400 417 433 Municipal Campground 242 252 262 272 283 Public Works 1,961 2,036 2,111 2,191 2,274 Airport 27 27 29 30 31 Parks 115 119 124 129 134 Waste Management 539 560 582 606 631 Cemetery Services 85 90 93 97 100 Recreation / Leisure Services 1,082 1,110 1,157 1,200 1,246 Water 622 641 662 684 705 Sewer 495 504 511 519 530 Total Expenses 55,162 11,109 11,411 10,304 10,648

NET CHANGE IN RESERVE FUNDS 2025 2026 2027 2028 2029

Reserve Additions 1,759 2,455 782 809 841 Reserve Deductions 16,466 961 1,757 187 35 Additions to (Deductions from) Reserve Funds (14,707) 1,494 (975) 622 806 Difference 0 0 0 0 0

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Planned Sources of Revenue, 2025

Source of Revenue % of Total Revenue Dollar Value (in Thousands $) Municipal Tax Revenue 11.8 % 4,765 Government Grants 57.2 % 23,153 Direct Operating Grants 2.0 % 826 Sales of Services 7.6 % 3,065 Proceeds from Borrowing 7.0 % 2,840 Other, Including Investments 14.4 % 5,806 Total 100.0 % 40,455

Planned Distribution of Municipal Taxation for 2025

Property Class % of Total Property Taxation Dollar Value Residential (1) 40.2 % $1,914,788 Utilities (2) 1.2 % $58,247 Heavy Industry (4) 30.8 % $1,465,189 Light Industry (5) 8.3 % $396,288 Business and Other (6) 19.4 % $926,899 Recreation or Non-Profit (8) 0.1 % $3,588 Total 100.0 % $4,765,000

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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 2026 to 2029 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, 2025:

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

Culbertson Lift Station (Project No. 2023-048) Maximum Amount of Expenditure: $1,266,000 Department: Sewer Object: - To supply and install a new expanded design of the Culbertson Lift Station, including building and mechanical parts for the machinery. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority), Sewer Operational Reserve Funds 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

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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 Improvements (Project No. 2024-006) Maximum Amount of Expenditure: $130,000 Department: Parks Object: - To supply and install certain playground structures within Town of Princeton parks. - To supply and install playground structures to replace the destroyed play structure at the park behind the former Community Services building on Lime St. Source of Funding: Funding from Disaster Financial Assistance through the Province of British Columbia and surplus operational revenue.

Water Park Replacement (Project No. 2025-018) Maximum Amount of Expenditure: $400,000 Department: Parks Object: - To replace portions of water 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 Tennis Court Resurfacing (Project No. 2025-004) Maximum Amount of Expenditure: $130,000 Department: Parks Object: - To resurface the tennis courts at Memorial Park Source of Funding: Surplus operational revenue.

Public Works Yard Replacement (Project No. 2023-066) Maximum Amount of Expenditure: $300,000 Department: Public Works Object: - To supply the new Public Works Yard building with contents that were originally damaged during the November 14, 2021 Tulameen River flooding event Source of Funding: Insurance proceeds

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Bulk Water Filling Station (Project No. 2025-006) Maximum Amount of Expenditure: $200,000 Department: Water Object: - To supply and install a new paid use bulk water filling station at Memorial Park Source of Funding: Water Operating Reserve

Lift Station and Sewer Line at Lagoons (Project No. 2023-067) Maximum Amount of Expenditure: $1,294,596 Department: Sewer Object: - To replace undersized lift station and sewer line outside sewer lagoons. Source of Funding: Borrowed Funds (Long Term Borrowing through the Municipal Finance Authority)

Sewer Trunk Main Replacement (Project No. 2023-069) Maximum Amount of Expenditure: $2,000,000 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)

Angela Avenue Sewer Lift Station (Project No. 2023-073) Maximum Amount of Expenditure: $3,000,000 Department: Sewer Object: - To design and construct a new sewer lift station for residential expansion and because the current design for the main trunk line through the downtown core requires this facility. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority), Sewer Operating Reserve Funds, Developer Contributions and Development Cost Charges

Decommissioning of Wells 1 & 2 and Replacement Facilities (Project No. 2023- 074) Maximum Amount of Expenditure: $300,000 Department: Water Object: - To finish landscaping and cleanup at new replacements for Wells 1 & 2 including treatment facilities. Source of Funding: Provincial Grant through Emergency Management BC

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Statues (Project No. 2025-101) 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

Caboose Refurbishment (Project No. 2024-002) Maximum Amount of Expenditure: $30,000 Department: Economic Development Object: - To repair the historical caboose structure located along the KVR Trail Source of Funding: Surplus Operational Funding

Visitors Centre Sign Replacement (Project No. 2024-027) Maximum Amount of Expenditure: $50,000 Department: Economic Development Object: - To remove and replace the lighted signboard outside the Princeton Visitors Centre Source of Funding: Surplus Operational Funding

Industrial Park Expansion (Project No. 2025-011) Maximum Amount of Expenditure: $200,000 Department: Economic Development Object: - To correct a swail on three industrial lots Source of Funding: Industrial Park Reserve, then Land Sales Reserve

Riverside Tulameen River Crossing (Project No. 2023-097) Maximum Amount of Expenditure: $2,053,974 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: Federal Infrastructure Grant Funding

Nechiefman to Pine Gravity Feed (Project No. 2025-019) Maximum Amount of Expenditure: $300,000 Department: Sewer Object: - To install a gravity feed of the sewer system from Nechiefman St to Pine Street as was identified by the Town Engineering Contractor. Source of Funding: Borrowed Funds (Long Term Borrowing through the Municipal Finance Authority).

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Westridge Klargester SCADA Panel (Project No. 2025-020) Maximum Amount of Expenditure: $150,000 Department: Sewer Object: - To supply and install a SCADA system at the Westridge Klargester to enable live monitoring of systems. Source of Funding: Sewer Operating Reserve

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 (Project No. 2024-010) Maximum Amount of Expenditure: $16,475,246 Department: Parks & Recreation Object: - To study, design and construct a recreational facility. Source of Funding: Infrastructure Grant, Future Amenity Fund Draw, Sales of Sponsorship, and Short-Term Borrowing through the Municipal Finance Authority

Arena Condenser & Compressor (Project No. 2025-010) Maximum Amount of Expenditure: $165,000 Department: Parks & Recreation Object: - To supply and install a new condenser/compressor for the Princeton & District Arena Source of Funding: Surplus operating revenue

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

Fire Truck (Project No. 2024-004) Maximum Amount of Expenditure: $1,202,000 Department: Protective Services Object: - To procure a required fire suppression vehicle for use of the Princeton Volunteer Fire Department Source of Funding: Fire Department Equipment Reserve Fund

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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: Surplus operational revenue

Situation Table (Project No. 2024-009) Maximum Amount of Expenditure: $60,000 Department: Protective Services Object: - To provide materials and training to form a situation table for use in Emergency Management. Source of Funding: Provincial Grant Funding

Miscellaneous Fire Department Equipment (Project No. 2024-031) Maximum Amount of Expenditure: $50,000 Department: Protective Services Object: - To purchase equipment for the use of the Princeton Volunteer Fire Department as required. Source of Funding: Fire Department Grant Funding through the Union of BC Municipalities.

Fire Hall #2 (Project No. 2025-001) Maximum Amount of Expenditure: $4,448,000 Department: Protective Services Object: - To construct a fire hall and training facility Source of Funding: Growing Communities Fund Reserve, then infrastructure funding grant through the Province of British Columbia, then a Long-Term Loan Authorization through the Municipal Finance Authority.

Animal Pound Building (Project No. 2025-002) Maximum Amount of Expenditure: $200,000 Department: Protective Services Object: - To construct an animal pound facility for bylaw officer use in animal control purposes Source of Funding: Insurance proceeds from the 2021 Tulameen River Flooding event.

Fire Department Training Facility (Project No. 2025-012) Maximum Amount of Expenditure: $300,000 Department: Protective Services Object: - To supply material for a training facility for use of the Princeton Volunteer Fire Department Source of Funding: Grant Funding through the Union of BC Municipalities

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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

Computer Hardware Replacement (Project No. 2025-015) Maximum Amount of Expenditure: $30,000 Department: General Government Object: - To replace obsolete computer hardware Source of Funding: Surplus Operational Revenue

Bylaw Compliance Project (Project No. 2025-016) Maximum Amount of Expenditure: $295,000 Department: General Government Object: - To update any bylaws within the Town of Princeton due to recent changes in housing legislation by the Province of British Columbia - To implement a dispute mechanism into administering bylaws Source of Funding: Provincial Grant funding and surplus operational revenue.

Town Annex Heating Upgrades (Project No. 2025-021) Maximum Amount of Expenditure: $200,000 Department: General Government Object: - To supply and install a new heating system at the Town Hall Annex building Source of Funding: FortisBC grant and surplus operational revenue.

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

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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: Surplus operational funding

Paving Program (Project No. 2025-100) Maximum Amount of Expenditure: $295,000 Department: Public Works Object: - To reconstruct various roads and sidewalks within Town boundaries according to a schedule as proposed by the Infrastructure and Public Works departments. Source of Funding: Federal funding through the Canada Community Building Fund and Paving Reserve Funds

Demolition of Masonic Hall (Project No. 2025-014) Maximum Amount of Expenditure: $165,000 Department: Public Works Object: - To remediate hazardous materials inside the former Masonic Hall and demolish the building. Source of Funding: Surplus operational revenue

Adaptations to Dump Truck (Project No. 2025-020) Maximum Amount of Expenditure: $45,000 Department: Public Works Object: - To supply and install needed components to the Town dump truck. Source of Funding: Surplus operational revenue

Residential Water Metering (Project No. 2024-012) Maximum Amount of Expenditure: $1,900,000 Department: Public Works Object: - To supply and install water meters to all residential water services. Source of Funding: Provincial Grant Revenue Page 14

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 2026.

Proposed Transfers to or from Reserve:

Planned Transfers to Reserve

2025 2026 2027 2028 2029

Sewer Reserve 44 43 44 45 47 Water Reserve 247 247 239 271 309 Consolidated Cash Reserve 168 138 61 59 109 Land Sales Reserve 3 736 35 34 33 Parkland Reserve 4 4 5 5 5 Firehall Equipment Reserve 415 435 457 480 504 PXA Reserve 1 1 1 1 1 Landfill Closure Reserve 13 13 14 15 15 Capital Works Reserve 19 20 21 22 23 Infrastructure Fund Reserve 9 11 13 15 17 Water & Sewer Project Reserve 22 19 19 20 21 Climate Action Reserve 16 17 18 19 20 DCC Reserve 1,187 1,253 273 294 317 Total Amounts to Reserve 2,173 2,964 1,228 1,308 1,429

Planned Transfers from Reserve

2025 2026 2027 2028 2029

Sewer Reserve 314 50 35 20 8 Water Reserve 230 0 0 0 0 Indigenous Engagement Reserve 41 0 0 0 0 Consolidated Cash Reserve 1,333 761 1,672 117 0 Land Sales Reserve 192 50 50 50 50 Future Amenity Reserve 3,946 0 0 0 0 Firehall Equipment Reserve 1,278 0 0 0 0 Paving Reserve 100 0 0 0 0 Capital Works Reserve 45 0 0 0 0 Water & Sewer Project Reserve 5,728 100 0 0 0 Growing Communities Fund Reserve 2,047 0 0 0 0 Total Amounts from Reserve 16,466 961 1,757 187 58

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2025 2026 2027 2028 2029

Maximum Expected Balance of Reserves, Beginning of Year 22,986 8,693 10,696 10,167 11,288 Total Amounts to Reserves 1,759 2,455 782 809 864 Interest Accruals 414 509 446 499 565 Total Amounts from Reserves 16,466 961 1,757 187 58 Net Change in Reserves (14,293) 2,003 (529) 1,121 1,371 Maximum Expected Balance of Reseves, End of Year 8,693 10,696 10,167 11,288 12,659

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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 44,033 1,872 2,635 395 395 Expected Amortization Expenses by Department: General Government 96 95 93 91 89 Economic Development 35 35 36 36 36 Protective Services 199 196 193 190 187 Public Works 813 812 830 819 809 Recreation & Leisure Services 381 373 366 359 352 Civil Works (Water + Sewer) 594 599 603 591 579 Total Amortization 2,118 2,110 2,121 2,086 2,052

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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. Indigenous Engagement Reserve Cash Based Operational Reserve - The reserve will be credited with o Funds received under Agreement No. EMCR24425 between the Minister of Emergency Management and Climate Readiness and the Town of Princeton ($40,000); 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: o Fiscal supports toward the implementation of the Indigenous Engagement Requirements in the Emergency and Disaster Management Act.

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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. 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

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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. 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.

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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. 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.

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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.

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Climate Action Reserve Cash Based Capital Reserve - The reserve will be credited with o Funds received from the Province of British Columbia from the Local Government Climate Action Program; 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: ▪ Projects that assist the municipality reach legislated climate targets; or ▪ Projects that assist the municipality achieve provincial climate goals outlined in the CleanBC Roadmap to 2030 or the Climate Preparedness and Adaptation Strategy. 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. 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.