2019 Budget Overview
For 2019, Council is considering an increase of $1,461,253 to the General Operating Fund Budget. This represents a tax increase of 4.62% or $90.49 in additional municipal tax to the average home (based on the 2018 average home value for Mission: $667,875).
This post offers a basic overview of the preliminary 2019 budget under consideration. Read the January 22, 2019 Budget Summary Agenda Package for a more detailed set of reports and figures – or watch the webcast.
Comparing Tax Rates
Let’s start by looking at Provincial data to compare the taxes paid on the average home in Mission with other neighbouring municipalities.
The chart below shows Mission’s ranking as fourth lowest when comparing the total 2018 property taxes for municipal services and from other taxing authorities that are levied on the average assessed home in each community.
This includes levies for local general municipal services, regional district services, school taxes and other taxing authorities In Mission, the average assessed home of $667,875 paid $3,264 in total to all taxing authorities for 2018 property taxes on their annual property tax notice.
This graph does not include charges for Local Improvements, special area taxes or user fees for water, sewer, or curbside collection of garbage and recycling nor does it take into consideration the Provincial Home Owner Grant program where eligible home owners can apply to the Province and deduct $570 or $845 from their property tax notice.
Changes to the Operating Budget
To help explain the budget more clearly we have broken it down into three categories: Maintaining Existing Services, Increased Service Levels, and New Construction/Property Tax Revenue Estimate.
Maintaining Existing Services
To maintain services staff have budgeted $1,538,158 in expenditure increases for the operating budget in 2019. These expenditures are offset by $1,197,846 in increased revenues, leaving a total of $340,312 requiring funding to maintain existing services.
The most significant impacts to ongoing operating budgets are:
- Staffing related costs (contractual and step increases).
- RCMP contract increase and integrated police services.
- Funding for transit.
This represents a potential tax impact of 1.08% or $21.15 for the average home.
Increased Service Levels
There is an additional $340,409 in funding required for previously-approved initiatives. These include:
- $160,700 in operating costs for the Welton building as staff relocate.
- $135,000 for one new RCMP member (this is the last of the new members approved in 2015 and was added in 2018 but funded from one-time savings and surplus).
- $27,359 for utilities expenses in municipal buildings leased to non-profits.
- $16,000 for rent at the Visitor Information Centre.
- $1,350 for the Project529 / 529Garage bicycle registration system/tracking
These expenditures create a proposed tax increase of 1.08%.
Proposed Initiatives/Spending Packages
Council is also considering $742,437 in new spending to fund a selection of the spending packages presented by staff. As presented below:
The $7,500 in one-time spending and $201,150 ongoing for two full-time and one part-time clerk positions supporting RCMP Administration is to improve transcription, file management and property control. This spending package is a response to the Jordan decision that created a new ceiling of 18 months between the charges and trial for provincial court without preliminary inquiry, or 30 months in other cases.
New Construction/Property Tax Revenue Estimate
An additional $300,000 of new property tax revenues due to estimated new construction has a potential tax reduction of -0.96%.
New Provincial Payroll Tax
The new BC Payroll Tax will generate an additional cost of $338,095 or 1.07% to the municipality.
Combined Changes to the Operating Budget
The $340,312 maintain existing services and complete previously approved initiatives of $340,409, combined with the $742,437 in new spending and the $338,095 for the new BC Payroll Tax offset by the new construction of $300,000 create a Net Total increase to the Operating Budget of $1,461,253.
This represents a potential tax increase of 4.62% or $90.49 for the average home in Mission.
Water, Sewer and Waste
There are a number of increases to fees related to water, sewer and drainage. These are to fund operating expenses and maintenance and to allow for increased transfers to reserves in response to the recently completed Abbotsford-Mission Joint Wastewater Master Plan and the Joint Water Master Plan.
- Drainage levy increase of 9.75%
- Flat Rate water utility user fee increase of $5.28 approximately 1%
- Flat Rate sewer utility user fee increase of $20.76 approximately 5%
- No increases to curbside pick-up user fees.
We will be launching a formal public consultation on the 2019 budget very soon. We will invite you personally if you have taken part in previous consultation and engagement opportunities with the municipality and provided your email address. Watch our website and social media for the link. Hard-copies of all surveys will also be available at municipal hall.
Fore more detail on the 2019 budget review the January 22 Budget Meeting Agenda or watch the webcast of the meeting.