Bylaw No. 1062, 2025 Five Year Financial Plan Bylaw 2026-2030

TOWN OF PRINCETON

BYLAW 1062, 2025

FIVE YEAR FINANCIAL PLAN BYLAW 2026 - 2030

A bylaw to adopt the Financial Plan for the years 2026-2030 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 2026 to 2030; 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 2026-2030 No. 1062, 2025".

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, 2026 to December 31,2030

3. The Town of Princeton Financial Plan Bylaw 2025-2029 No. 1054, 2024 is

hereby repealed. READ A FIRST TIME THIS 13th day of January 2026 READ A SECOND TIME THIS 13th day of January 2026 REFERED TO A PERIOD OF PUBLIC CONSULTATION and placed in the local newspaper on March 12th, 2026, and March 19th, 2026 READ A THIRD TIME AS AMENDED this 15th day of April 2026 ADOPTED this 13th day of May 2026 Origina! signed by Deputy Mayor ESiott Origimt signed by CAO Thomas Deputy Mayor George Elliott CAO R. Lyle Thomas Page 1 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 equityfor 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 2 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. Page3 Schedule "B"

TOWN OF PRINCETON

FIVE YEAR CONSOLIDATED FINANCIAL PLAN 2026 - 2030

(in thousands of dpllars)

REVENUES

Municipal Taxation Grants-in-Lieu Parcel Tax Federal and Provincial Grants Regional District Contributions Sale of Services Licenses, Permits and Fees Penalties and Interest on Taxes Return on Investments Sundry Total Revenues

EXPENSES

Capital Expenses General Government Services Discretionary Grants Protective Services Transit Services Economic Development Visitor Information Centre Municipal Campground Public Works Airport Parks Waste Management Cemetery Services Recreation / Leisure Services Water Sewer Total Expenses ^2026 5,058 395 20 14,885 833 2,361 ^40~ 92 400 5,298 29,582 2026^ 19,773 1,809 ^786^ 163 531 ^72 ^3T 2,377 26 T09^ 567 64 1,459^ ^3T 748 29,917 ~202T 5,479 -425 ^20 -l7T22- 847 ^,470 ~253 96 200 ^,272 13,184 ^202T 5,355 1,839 ^-80T 171 "593 ~389 -243~ 2,574 28 -H4 595 67 T,468^ -753~ 719 ^\5J74 2028 5,927 ^5T 20 1,128 850^ 2,584 265 100 200^ 0 11,531 2028 195 1,930^ -65- 818 180 ^18" 409 255 2,672 ^9~ 120 625 70^ 1,544 791 746 11,067 2029 6,422 494 20 1,073 853 2,708 278^ ^06 ^00 0 W/\5A 2029 ^w 2,029 65 833 189 611 428 26T 2,724 31 126 ^56^ 74 1,620 824 765^ 11,437 ^030^ 7,117 527 ^Q 1,072 856 2,839 ^94" 111 200 0 13,036 2030^ 1,046 2,174 ^-852 198 630^ ^5T ^8T 2,793 ^2 i3T ~68Q~ 79 1,70V ^64" 789 12,775^

NET CHANGE IN RESERVE FUNDS

Additions to (Deductions from) Reserve Funds Difference ^2026 (335) 0 2027 (2,590) 0 2028 464 ^ 2029^ 717 -0- 2030 261 0 Page 4 Planned Sources of Revenue, 2026 Source of Revenue Municipal Tax Revenue Government Grants Direct Operating Grants Sales of Services Other, Including Investments "TotaT % of Total Revenue 17.1 % 51.6% 2.0% 8.0 % 20.5 % 100.0% Dollar Value (in Thousands _$)_ 5,058 15,280 -833 ^,36T 6,050 29,58r Planned Distribution of Municipal Taxation for 2026 Property Class Residential (1) Utilities (2;T Heavy Industry (4) Light Industry (5) Business and Other (6) Recreation or Non-Profit (8) Total % of Total Property Taxation 37.5 % 3.5% 33.5% 7.5 % 17.9% 0.1 % 100.0% Dollar Value $1,898,034 $175,850 $1,695,654 $376,753 $903,862 $3,497 $5,058,000 Page 5 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 2027 to 2030 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, 2026: 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 Funds Allocated in Previous Years: $30,824 Allocated for Current Financial Plan: $1,235,176 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: $40,000 Department: Sewer Object: To complete the construction of a fourth liquid waste pit. Source of Funding: Regional District of Okanagan-Similkameen Capital Grant Landfill Scale Software Replacement (Project No. 2023-054) Maximum Amount of Expenditure: $60,000 Department: Waste Management Object: To supply and install new software for the vehicle scale at the Princeton Landfill. Source of Funding: Land Sales Reserve Page6 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 Riverflooding event Source of Funding: Insurance proceeds Sewer Trunk Main Replacement (Project No. 2023-069) Maximum Amount of Expenditure: $2,300,000 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 PublicWorks Department) to the Fenchurch Sewer Lift Station. 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) 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 sewerpump station. Source of Funding: Federal Infrastructure Grant Funding Caboose Refurbishment & Airplane/Weathervane Signage (Project No. 2024-002) Maximum Amount of Expenditure: $50,000 Department: Economic Development Object: To repair the historical caboose structure located along the KVR Trail To create or replace signage at the weather vane airplane at thePrinceton Aerodrome Source of Funding: Surplus Operational Funding Vehicle Replacements (Project No. 2024-003) Maximum Amount of Expenditure: $18,000 Department: Solid Waste Object: To procure a new truck for collection of garbage. Source of Funding: Capital Works Reserve Page 7 Fire Truck (Project No. 2024-004) Maximum Amount of Expenditure: $1,202,000 Funds Allocated in Previous Years: $198,744 Allocated for Current Financial Plan: $1,003,256 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 Park Improvements (Project No. 2024-006) Maximum Amount of Expenditure: $224,000 Department: Parks Object: To supply and install certain playground structures within Town ofPrinceton 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. Situation Table (Project No. 2024-009) Maximum Amount of Expenditure: $60,000 Funds Allocated in Previous Years: $22,400 Allocated for Current Financial Plan: $37,600 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 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 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 Page8 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 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. 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 Arena Compressor (Project No. 2025-010) Maximum Amount of Expenditure: $200,000 Department: Parks & Recreation Object: To supply and install a new compressor for the Princeton & DistrictArena Source of Funding: Surplus operating revenue 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 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: Fire Department Reserve Fund Page 9 Bylaw Compliance Project (Project No. 2025-016) Maximum Amount of Expenditure: $165,000 Funds Allocated in Previous Years: $25,632 Allocated for Current Financial Plan: $139,368 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. 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 and surplus operational revenue 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 Paving Program (Project No. 2025-100) Maximum Amount of Expenditure: $191,000 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 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 ofPrinceton Source of Funding: Land Sales Reserve Page 10 Westridge Klargester Replacement (Project No. 2026-001) Maximum Amount of Expenditure: $557,000 Department: Sewer Object: To replace the Klargester mechanism atWestridge Source of Funding: Water & Sewer Project Reserve Well 4 Replacement (Project No. 2026-002) Maximum Amount of Expenditure: $6,458,000 Funds Allocated in Previous Years: $265,785 Allocated for Current Financial Plan: $6,192,215 Department: Water Object: To rebuild Well 4 for climate resiliency Source of Funding: Federal infrastructure grant and water reserve Dike Ownership Study (Project No. 2026-003) Maximum Amount of Expenditure: $400,000 Department: Public Works Object: To study the different stakeholders along the Tulameen River in preparation for implementation of the Town's flood management plan. Source of Funding: DRIF (Disaster Resilience and Innovation Funding) program through the Provincial and Federal Governments. Town Hall Security Upgrades (Project No. 2026-004) Maximum Amount of Expenditure: $60,000 Department: General Government Object: To renovate the Town Hall building by securing access to office space Source of Funding: Land Sales Reserve Accessibility Assessment & Plan (Project No. 2026-005) Maximum Amount of Expenditure: $50,000 Department: General Government Object: To assess and adapt into a plan various buildings within the Town of Princeton for accessibility by the physically disabled Source of Funding: Surplus Operational Revenue Hazard Risk and Vulnerability Assessment (Project No. 2026-006) Maximum Amount of Expenditure: $84,000 Department: Protective Services Object: To engage the Princeton Emergency Program members with local first nations in compliance with the Emergency and Disaster ManagementAct Source of Funding: Indigenous Engagement Reserve Fund Page 11 Climate Action Reserve Project (Project No. 2026-009) Maximum Amount of Expenditure: $195,000 Department: Public Works Object: To perform a capital project to be named later at Council's discretion that satisfy the requirements of the Climate Action Reserve: • 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. Source of Funding: Climate Action Reserve Fenchurch Lift Station Replacement (Project No. 2026-010) Maximum Amount of Expenditure: $25,000 Department: Sewer Object: To begin plans for replacement of the Fenchurch Lift Station and move itto the parking lot beside the Bridge St Plaza. Source of Funding: Provincial Grant provided from the Union of BC Municipalities Sidewalk Replacement on Bridge St. (Project No. 2026-011) Maximum Amount of Expenditure: $194,000 Department: Economic Development Object: To replace a section of sidewalk on Bridge St Source of Funding: Paving budget Page 12 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 in the first quarter of 2027. Proposed Transfers to or from Reserve: Planned Transfers to Reserve Sewer Reserve Water Reserve General Operations Reserve Land Sales Reserve Parkland Reserve Fireball Equipment Reserve PXA Reserve Landfill Closure Reserve Capital Works Reserve Infrastructure Fund Reserve Water & Sewer Project Reserve Future Amenity Fund Reserve Total Amounts to Reserve 2026 768 867 15,415 6 2 ^\5 T 6 w 29 68 471 18,058 2027 903^ ^12~ 9,524 T T 430 T ^~ 13 31 ^ ^36 12,368 2028 933^ ^53 11,033 7 ^ 440 1 T 12 32 ^ ^58~ 13,978 2029^ 969 1,002 9,993^ 7 3 455 T 7 12 ^3 0 603 T3,08T 2030 1,005 1,050^ 11,670 7 3 42 1 ^ ^M~ 34 0 6W 14,473 Planned Transfers from Reserve Sewer Reserve Water Reserve Indigenous Engagement Reserve General Operations Reserve Land Sales Reserve Future Amenity Reserve Firehall Equipment Reserve Industrial Park Reserve Paving Reserve Capital Works Reserve Climate Action Reserve Water & Sewer Project Reserve Total Amounts from Reserve 2026 ^8T 1,039 84 i0,234 ^3~ 200 1,378 147 382 18 ^98 3,489 18,079^ 2027 719 753 0 10,282 0 ^ 0 0 ^ 0 0 2,889^ 14,643 2028 746 791 ^ 11,663 0 0 0 0 T ~0 0 0^ 13,200 2029 765^ ~Q24 0 10,418^ ^ ~0 0 ^ 0 0 ^ ~0 12,007 2030 789 864 ^ 11,729 0 0 450 0 ^ -0- 0 0 13,832 Page 13 Total Amounts to Reserves Less: Total Amounts from Reserves Net Change in Reserves 2026 18,058 18,079 ~(21T 2027 12,36T 14,643 (2,275) 202T 13,978 13,200 T78~ 2029 13,087 12,007 1,080 2030 14,473 13,832 642 Net Change In Reserve Interest Accruals Net Change in Reserves (335) 314 ~(21T (2,589) 314 (2,275) 464 314 778 717 ^63~ 1,080 261 381 642 Expected Balance of Reserves, Beginning of Year Net Change in Reserves Expected Balance of Reserves, End of Year 13,426 ~(21T 13,405 13,405 (2,275) 11,130 11,130 T78~ 11,908 11,908 1,080 12,988 12,988 042 13,630 Page 14 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 15 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. o 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 applicants) 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. Page 16 d) removed October 7, 2019*; e) Organizations that provide short term housing with length of stay up to a maximum of two years, including emergency shelters, transitional housing, supportive housing for people with special needs, and group homes are eligible. f) Organizations that have a residence in the building or on the property will only be exempt if a caretaking function is performed and the property owner (organization) can provide a copy of an agreement demonstrating: • rent is not collected on the residence; and, « there is a caretaker agreement in place.

4) PUBLIC NOTICE

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

5) DISCLAIMER

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

6) DURATION AND TERMINATION

a) Unless otherwise passed by Council, permissive tax exemptions will be for a ten (10) year duration b) Council may revoke a permissive tax exemption in any year of the ten (10) year period by bylaw if the group receiving the exemption violates this policy, no longer is eligible for an exemption as per this policy, or no longer qualify as per legislation (Community Charter). Page 17 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. Page 18 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 resen/e 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. Page 19 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. Page 20 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 9of 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 Page 21 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 tothe Town of Princeton. Page 22 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. Page 23 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 ofthe 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. General Operating 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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33 SK

<H> =F or !&- <f> (D f CD ub (p (t» 33f-Utl if)0 5 ilTti 3T- 30 (D w (D (I) 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. Page 26 Schedule "G" Reconciliation of Previous Year Financial Plan WHEREAS Section 165 (2) of the Community Charter states: "For certainty, the financial plan may be amended by bylaw at any time", the following actual values are hereby allocated for the

2024 Fiscal Year:

REVENUES

Municipal Taxation Grants-in-Lieu Parcel Tax Federal and Provincial Grants Regional District Contributions Sale of Services Licenses, Permits and Fees Penalties and Interest on Taxes Return on Investments Sundry Proceeds from Borrowing Total Revenues

EXPENSES

Capital Expenses General Government Services Discretionary Grants Protective Services Emergency Program Transit Services Economic Development Visitor Information Centre Public Works Airport Parks Waste Management Cemetery Services Recreation / Leisure Services Water Sewer Total Expenses Revenue Over Expenses FP2025 4,450 454 37 19,545 ^,695 4,734 125 ^0 5,073 2,446 4,750^ 43,349 39,87y ^354" 150 ^7T ^30 135 512 ^8T 240 2,046 188^ ^\50 826 82 1^228^ 878 49,519 (6,170) Actual 4,726 465^ ^0 2,744 1,126 2,459 80 122 48T ^95" 0 13,224 7,103 1,83T 4 277 302 159^ 487 431 i^3or ~w 83 652 5CT 1,327 809 TIT 18,300 (5,076) Page 27 NET CHANGE IN RESERVrFUNDS Net change in Operational Surplus Funds Net change in Capital Reserves and Deferred Revenues Net change in Sewer Reserve Net change in Water Reserve Net change in Indigenous Engagement Fund Reserve Net change in Land Sales Reserve Net Change in Parkland Reserve Net change in Future Amenity Reserve Net Change in Fire Department Capital Reserve Net Change in PXA Capital Reserve Net Change In Industrial Park Reserve Net Change in Landfill Closure Reserve Net Change in Paving Reserve Net change in Capital Works Reserve Net change in Infrastructure Reserve Net change in Water & Sewer Project Reserve Net change in Growing Communities Fund Reserve Net change in Climate Action Reserve Total Net Change in Reserve Funds Proceeds from Borrowing Net change in Other Reserves (Non-Cash and Consolidated Cash Reserves) Amortization Expense (Non-Cash) Addition (Removal) of Capital Assets Asset Adjustment Total Net Change in Reserve Funds Difference FP2024^ ^1,196) 322 w(i,oooT 0 (1,000) ^ (3,709) 400 T^ 0 0 ^"so" 0 ^ ^~ (6,170) 0 ^ ~0 0 0 (6,170) 0 Actual ~Wn -i,3iT w20 44 8 3 160^ ^33- ~Q~ 4 ^ T8T 13 ^iW (1,865) 7130T T152T 0 "(813T 1,676^ (6,817) (1,031) (5,075) ^ Page 28