The Financial Plan provides detailed funding requirements over the next 5 years and also articulates financial priorities and issues. It helps staff manage day-to-day operations by providing financial and policy information and by identifying financial and staffing resources available to provide services.
The Plan serves as a communication device that gives all readers a comprehensive look at the services provided by the City and the costs related to those services. The City's Financial Plan Summaries are available for download.
2022 - 2026 Financial Plan Overview:
The 2022 Financial Plan currently has a gap of $1,368,070 between total revenues and planned expenditures which equates to a 4.35% increase in property taxes to balance the budget.
A significant increase in expenditures this year relates to the settlement of the first RCMP union contract. The Federal Government negotiated the settlement which is retroactive to 2017. This RCMP cost has increased the overall tax rate by 4%.
The impact of a 4.35% property tax increase affects each class or type of property differently depending on how the individual property assessments have changed. The Province only allows municipalities to have one tax rate for all residential class properties. The assessed value of single family homes increased by 38% whereas multi-family homes have only increased half as much at 19%. When the overall tax rate increase of 4.35% is applied, it has a bigger impact on single family homes. Including utility rate increases, the impact on an average multi-family home, assessed at $489,329, would be a decrease of 0.23% or $4 and an average single family home, assessed at $1,211,484, would see an increase of 10.25% or $349.
The average business property will see an increase of 6.14% if their property tax assessment increased 15.76%. The average light industrial property will increase 6.12% if their property tax assessment increased 23.33%. For properties that have assessment changes higher or lower than the average, the property tax increase will also change.
Property Tax Deferment Program:
The Province has a Property Tax Deferment Program allowing residential taxpayers over 55 years old with 25% equity in their home, or families with children having 15% equity in their home, to enroll in the program. This may assist some taxpayers during times when the assessed values of their homes have increased so dramatically. For more information visit www.gov.bc.ca/propertytaxdeferment.
Just under a year ago, the City was excited about a bold vision with the adoption of the Nexus of Community Plan. However, COVID-19 has caused us to pause and reprioritize how we move forward during a world-wide pandemic. Even with supports from senior levels of government for the municipality, businesses and individual taxpayers, there is still much uncertainty about how 2021 will unfold.
We know that interest rates have reduced significantly affecting our investment income. The casino is currently closed so we have conservatively estimated that it will remain closed throughout 2021 and the City will not receive any casino revenues this year. Fortunately, the City has reserved some of the previously received casino proceeds so some of the Capital Improvement Plan projects can still move forward; however, other projects like the Engineering Operation Centre building will be deferred into the future.
During the recent provincial election, the Provincial government committed to bringing the SkyTrain to Langley City. To be ready for that, we need to forge ahead with our drafted plans including the Official Community Plan, Zoning Bylaw updates and the Nicomekl River District Neighbourhood Plan. Because land acquisition is a vital part of these plans, we are asking City Council to consider borrowing $7.5 million in 2021, rather than the full $50 million in borrowing being considered at this time last year. We may revisit other borrowing opportunities in future Capital Improvement Plans once the pandemic’s uncertainty is better understood. We believe this is a balanced approach to moving forward.
The 2021–2025 Financial Plan anticipates borrowing $7.5 million in 2021 to fund the investments. The investment will be repaid over a 15 year period through a property tax increase of 1.93%.
In 2021, the five year financial plan includes $48.3 million in operating expenditures and a further $18.8 million in capital expenditures. Approximately 85% of the operating expenditures are funded through property taxes and utility charges billed at the end of May each year.
New assessment growth in 2021 will generate $350,000 of additional tax revenues. The net increase in expenditures is $819,655, or a 2.75% tax increase, and the debt servicing cost from the Nexus Investment Plan is $576,580, or a 1.93% tax increase. The net taxation increase, therefore, is $1,396,235 or 4.68%.
Although the total net increase in expenditures results in a 4.68% overall taxation increase, including utility rate increases, the average changes in 2021 are as follows:
|Classification||Average Assessed Value||Annual Increase||Monthly Increase||% Increase|
Business class properties will see an average increase of 3.85% and Light Industrial properties a 5.05% increase. This rate maintains a competitive ratio between residential and business class properties, ensuring that Langley City remains an attractive municipality to establish a business.
The City of Langley’s 2021 Financial Plan provides several improvements to parks, focuses on infrastructure renewal and recreational opportunities, reinforcing Langley City’s reputation as the Place to Be!
View and download the 2021 - 2025 Financial Plan Bylaw No.3151
View and download the 2021 - 2025 Financial Plan Infographic
View and download the Property Acquisition Loan Authorization Bylaw, No. 3145 and Alternative Approval Process