Port McNeill’s 2017 five-year financial plan passed first reading last week.
Each year the town is required to prepare a five-year financial plan and accompanying annual property tax bylaw, which both must be passed by council before May 12.
According to Treasurer Dan Rodin’s report to council, the financial plan process begins with discussions with department heads, who are asked to estimate the cost of operating their department for 2017.
Quick facts from the financial plan report:
• council directed staff to add $40,000 to the financial plan for the purpose of a feasibility study of public facilities;
• A portion of business licence revenue is allocated to harbour operations in support of tourism;
• In 2017, the town expects a dividend distribution of $700,000;
• 2017 grants total $505,000 with the town also receiving a $1.6 million grant for waterline replacement;
• $338,000 in surplus funds from the previous year will fund Capital Works and Capital Purchases (Fire Department, Public Works, and the Harbour);
• Public works budget for 2016 was $434,000, actual cost was $490,000 due to increased staff hours and related benefit cost increases. 2017 is expected to reflect the 2016 experience;
• Capital expenditures totalling $3,284,000. The actual cost to the town, net of offsetting grants and use of reserve funds, is $1,588,000;
The financial plan process proposes a two-per-cent tax increase to assist in keeping afloat with inflation and known cost increases. The increase generates approximately $24,000;
• and the amount required to pay the interest and principal on municipal debt is approximately $227,000.
— Gazette Staff