ATTACHMENT A

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

LANGLEY 2009 - 2013 FIVE YEAR FINANCIAL PLAN BYLAW 2009 NO. 4738

EXPLANATORY NOTE

The 2009 - 2013 Five Year Financial Plan Bylaw No. 4738 authorizes the expenditure of
funds for the Municipality. The 2009 - 2013 Five Year Financial Plan Bylaw is prepared
pursuant to Section 165 of the “Community Charter” and is required to be adopted by Council
prior to the Tax Rates Bylaw and May 14, 2009.

An expenditure that is not provided for in the 2009 - 2013 Five Year Financial Plan is not
lawful.
 ATTACHMENT A

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

Langley 2009 - 2013 Five Year Financial Plan Bylaw 2009 NO. 4738

A bylaw to establish the Five Year Financial Plan from 2009 to 2013.

WHEREAS Section 165 of the “Community Charter” requires that the Corporation of the Township of
Langley adopt a Five Year Financial Plan prior to approval of the Tax Rates Bylaw by May 14, 2009:

NOW THEREFORE, the Local Government Council of The Corporation of the Township of Langley, in
Open Meeting Assembled, ENACTS AS FOLLOWS:

1. This bylaw may be cited for all purposes as the “Langley 2009 - 2013 Five Year Financial Plan
Bylaw 2009 No. 4738.”

2. Schedule “A”, being the Financial Plan, attached hereto and forming part of this bylaw is hereby
adopted as the 2009 - 2013 Five Year Financial Plan of The Corporation of the Township of
Langley.

3. Schedule “B”, being the Revenue Plan Objectives and Policies, attached hereto and forming part
of this bylaw is hereby adopted as the 2009 - 2013 Five Year Financial Plan of The Corporation of
the Township of Langley.

READ A FIRST TIME the 06 day of April , 2009

READ A SECOND TIME the 06 day of April , 2009
READ A THIRD TIME the 06 day of April , 2009
RECONSIDERED AND ADOPTED the day of , 2009

Mayor Deputy Township Clerk

 ATTACHMENT A -- SCHEDULE "A"

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

Langley 2009-2013 Five Year Financial Plan Bylaw 2009 No 4738
Schedule "A" - Five Year Financial Plan

2009 2010 2011 2012 2013

$ $ $ $ $
EXPENDITURES
Operating plan
Municipal Services 130,069,195 130,050,811 135,172,461 141,037,917 147,498,844
Current Debt Service - Principal & Interest 4,903,896 6,800,655 8,447,087 4,703,916 4,407,740
Contribution to Funds and Reserves 18,303,945 7,435,978 9,853,797 12,438,509 14,516,588
Operating Plan Sub-Total 153,277,036 144,287,444 153,473,345 158,180,342 166,423,172

Capital plan 230,845,540 40,605,064 44,275,899 44,996,073 49,326,919

Total Financial Plan Expenditures 384,122,576 184,892,508 197,749,244 203,176,415 215,750,091

REVENUES
Operating Plan
General Property Taxes 53,880,696 57,666,466 61,717,240 66,051,568 70,689,298
Other Levies
Transportation Levy 13,516,181 14,467,353 15,485,108 16,574,106 17,739,333
Stormwater Levy 5,116,088 5,476,053 5,861,216 6,273,340 6,714,312
Parks Levy 5,302,006 5,673,147 6,070,267 6,495,186 6,949,849
23,934,275 25,616,553 27,416,591 29,342,631 31,403,494
Sale of Services
Water User Rates 10,471,816 11,204,843 11,989,182 12,828,425 13,726,415
Sewer User Rates 8,172,423 8,744,493 9,356,607 10,011,569 10,712,379
Solid Waste User Rates 3,270,172 3,835,575 4,352,860 4,461,681 4,573,223
Other Sale of Service 17,122,039 17,133,289 17,144,819 17,156,639 17,168,754
39,036,450 40,918,200 42,843,468 44,458,315 46,180,772
Other Revenues 15,871,298 15,581,996 15,653,182 15,726,147 15,800,936
Transfer from Prior Year's Surplus 16,520,332 464,080 - - -
Transfer from Other Funds & Reserves 4,033,985 4,040,150 5,842,864 2,601,681 2,348,671
Operating Plan Sub-Total 153,277,037 144,287,446 153,473,345 158,180,342 166,423,172

Capital Plan
Contribution from Current Year Revenue 6,655,715 5,807,823 8,175,642 10,710,354 12,738,433
Grants 53,840,451 0 0 0 0
Transfer from Prior Year's Surplus 35,302,537 - - - -
Transfer from DCC Reserves 38,197,893 10,450,716 11,335,732 10,345,644 10,938,911
Transfer from Reserves 37,169,755 17,687,200 18,354,700 17,597,000 19,149,500
Private Funds and Other Sources 27,345,897 6,659,325 6,409,825 6,343,075 6,500,075
Debt - Internal and External 32,333,292 - - - -
Capital Plan Sub-Total 230,845,540 40,605,064 44,275,899 44,996,073 49,326,919

Total Financial Plan Revenues 384,122,576 184,892,508 197,749,244 203,176,415 215,750,091

Bylaw No. 4738 ATTACHMENT A
Page 2 …

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

Langley 2009 - 2013 Five Year Financial Plan Bylaw 2009 NO. 4738

SCHEDULE “B” – REVENUE PLAN OBJECTIVES AND POLICIES

In accordance with the Community Charter disclosure requirements the Township of Langley
discloses the following information.
• the proportions of revenue proposed to come from the various funding sources
• the distribution of property taxes among property classes; and
• the use of permissive tax exemptions.

Proportion of total revenue

Operating Budget Capital Budget

Revenue Source
Funding Sources Funding Sources
Property taxes 35% 3%
Utility Levies 16% 0%
User fees and charges 25% 0%
Other sources 24% 83%
Proceeds from borrowing 0% 14%
Total 100% 100%

The proportion of total revenue raised from each funding source in 2009 is presented in the table
above. Property taxes form the greatest proportion of the operating revenue for the Township.
Property taxes provide 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, policing
services, transportation and so forth. For these reasons, property taxation will continue to be the
major source of the Township’s revenue.

User fees and charges is the second largest portion of general operating revenue. Many Township
services, such as water, sewer, and garbage collection are charged on a user-pay basis which
ensures they are paid for by the taxpayers receiving these services.
Bylaw No. 4738 ATTACHMENT A
Page 2 …

Distribution of 2009 property taxes among the various property classes

Property Property tax

Property Class Description
Class Revenue %
1 Residential 60.54%
2 Utilities 1.22%
4 Major Industry 0.26%
5 Light Industry 6.88%
6 Business 29.97%
8 Recreation 0.39%
9 Farm 0.74%
Total 100.00%

The distribution of property tax revenue among the various property classes is presented in the table
above. The practice of Council has been to set tax rates in order to maintain reasonable tax stability
in compliance with the Community Charter. This is accomplished by maintaining the proportionate
relationship provided above between the property classes. (Property classes are defined and values
determined by the British Columbia Assessment).

Use of Permissive Tax Exemptions

The total revenue foregone for permissive exemptions granted for the 2009 taxation year is
approximately $185,000. These permissive exemptions support Council policy that grants permissive
exemptions only to those not-for-profit organizations that provide a valuable service to the community.
The Township’s permissive exemption policy and practice provides permissive exemption for bona
fide community halls; community halls or facilities operated by charitable and other not-for-profit
organizations; religious institutions and private schools; and heritage properties.
 ATTACHMENT A

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

LANGLEY ANNUAL RATES AND TAX COLLECTION BYLAW 2009 NO. 4741

EXPLANATORY NOTE

Bylaw No. 4741 provides for the 2009 levying of rates for General Municipal, Parks,
Transportation, Stormwater, Regional Library and Greater Vancouver Regional District
purposes.

The bylaw is a requirement of Section 197 of the Community Charter. The Community
Charter states that this bylaw must be adopted after adoption of the Five Year Financial
Plan and must be adopted by May 14th of each year.
 ATTACHMENT A

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

LANGLEY ANNUAL RATES AND TAX COLLECTION BYLAW 2009 NO. 4741

WHEREAS it is deemed necessary and desirable to provide for the levying of rates for
municipal, parks, transportation, stormwater, library and Greater Vancouver Regional District
purposes for the year 2009;

AND WHEREAS it is deemed desirable to provide for a later due-date for submission of the
Home Owner Grant application pursuant to sections 235 and 236 of the Community Charter;

NOW THEREFORE, the Municipal Council of the Corporation of the Township of Langley, in
Open Meeting Assembled, ENACTS AS FOLLOWS:

1. This bylaw may be cited for all purposes as the “Langley Annual Rates and Tax
Collection Bylaw 2009 No. 4741.”

2. The following rates are hereby imposed and levied for the year 2009:

a) For general purposes, on the value of land and improvements taxable for general
municipal purposes, rates appearing in Column “A” of Schedule “A” attached.

b) For purposes of the Transportation Utility, on the value of land and improvements
taxable for general municipal purposes, rates appearing in Column “B” of Schedule “A”
attached.

c) For purposes of the Stormwater Utility, on the value of land and improvements taxable
for general municipal purposes, rates appearing in Column “C” of Schedule “A”
attached.

d) For purposes of the Parks Utility, on the value of land and improvements taxable for
general municipal purposes, rates appearing in Column “D” of Schedule “A” attached

e) For Regional Library purposes, on the value of land and improvements taxable for general
municipal purposes, rates appearing in Column “E” of Schedule “A” attached.

f) For the Greater Vancouver Regional District purposes, on the value of land and
improvements taxable for hospital purposes, rates appearing in Column “F” of Schedule
“A” attached.

3. The minimum amount of taxation upon a parcel of real property shall be One Dollar
($1.00).

4. The taxes for the current year as shown on the real property tax roll shall be payable on or
before on the 2nd day of July 2009, and there shall be added to taxes remaining unpaid
after the aforementioned date, Ten Percent (10%) of the amount.
Bylaw No. 4741 ATTACHMENT A
Page 3…

5. Where a penalty addition would otherwise be applied and a property owner is eligible for
and subsequently claims the current year Home Owner Grant and applies to the Director
of Finance for such Grant no later than August 31st, 2009, the penalty above shall not be
applied to the portion of the taxes outstanding which is equal to the year’s current Home
Owner Grant.

6. Pursuant to sections 235 and 236 of the Community Charter, the municipal tax
collection scheme shall apply unless a property owner makes an election under section
236 on or before July 2nd, 2009.

READ A FIRST TIME the 06 day of April , 2009

READ A SECOND TIME the 06 day of April , 2009
READ A THIRD TIME the 06 day of April , 2009
RECONSIDERED AND ADOPTED the day of , 2009

Mayor Township Clerk

 Bylaw No. 4741 ATTACHMENT A
Page 4…

THE CORPORATION OF THE TOWNSHIP OF LANGLEY

LANGLEY ANNUAL RATES AND TAX COLLECTION BYLAW 2009 NO. 4741

SCHEDULE A - Revised

Rates per $1,000 of Assessment Value

A B C D E F

Fraser Greater
Property Property Class General Transportation Stormwater Parks Valley Vancouver
Class Description Purposes Purposes Purposes Purposes Regional Regional
Library District Levy
Levy
1 Residential 1.94250 0.48733 0.18445 0.19150 0.11297 0.06596

2 Utility 17.28100 4.33510 1.64089 1.70350 1.00540 0.23090

3 Supportive
0.00 0.00 0.00 0.00 0.00 0.00
Housing

4 Major Industrial 6.71950 1.68565 0.63804 0.66240 0.39090 0.22430

5 Light Industrial 6.19160 1.55321 0.58791 0.61030 0.36040 0.22430

6 Business &
6.05010 1.51771 0.57448 0.59640 0.35130 0.16160
Other

7 Managed Forest 0.00 0.00 0.00 0.00 0.00 0.00

Seasonal/
8 2.96410 0.74360 .281450 0.29220 0.17280 0.06600
Recreational

9 Farm 6.03930 1.51503 0.57346 0.59540 0.35130 0.06600

 REPORT TO

MAYOR AND COUNCIL

PRESENTED: APRIL 6, 2009 - REGULAR MEETING REPORT: 09-43

FROM: FINANCE DIVISION FILE: 1700-60
1840-30
SUBJECT: 2009 – 2013 FIVE YEAR FINANCIAL PLAN BYLAW and
2009 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW

RECOMMENDATION(S):
That Council give first, second and third reading to the Langley 2009 – 2013 Five Year Financial
Plan Bylaw 2009 No. 4738; and further
That Council give first, second and third reading to the Development Cost Charge Reserve
Fund Expenditure Bylaw 2009 No. 4739.

EXECUTIVE SUMMARY:
The Community Charter requires Council to adopt the Langley 2009 – 2013 Five Year Financial
Plan Bylaw before the Annual Tax Rates Bylaw and no later than May 14, 2009. The Five
Year Financial Plan Bylaw No. 4738 will establish the budget for revenues, expenditures, and
transfers for 2009 – 2013 for the Township’s funds.

The 2009 operating budget includes non-discretionary adjustments for salary and wage
increases for staff, annualization of costs pertaining to 2008 new programs and/or services,
contract commitments and minor inflationary adjustments for such items as natural gas and
electricity. The only service enhancement is the implementation of full time fire service at
Walnut Grove Fire-hall.

The 2009 Township budget reflects a 5% property tax and levy rate increase for all funds except
for the Solidwaste (garbage collection) which is slightly higher to fund the increased new
garbage collection contract. The 2009 revenue increase was achieved through a reduction of
funding to capital projects elimination of some vacant staff positions and other measures in
order to reduce the impact of the major cost drivers.

For 2009, the impact to a typical household with all services and with property assessed at
approximately $473,000 is an increase of $121 for the year or $10 per month. The total
municipal bill for this household receiving all services increases from $2,021 in 2008 to $2,142
in 2009; and for a household not receiving water, sewer or garbage collection the municipal bill
increases from $1,283 in 2008 to $1,347 in 2009. Fire, Police and Transportation account for
the majority of the tax increase.

In the table below, showing the 2009 property tax and levy increase allocation, universal
services are paid for by all taxpayers while user pay services are only paid for by those who
subscribe to the particular service.
2009 – 2013 FIVE YEAR FINANCIAL PLAN BYLAW and
2009 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW
Page 2 . . .

Universal Service Annual Increase Monthly Increase

Parks $ 4 $0.33
Transportation (roads) $ 11 $0.92
Stormwater $ 4 $0.33
General Tax - Fire $ 25 $2.08
General Tax - Police $ 26 $2.17
General Tax - All Other $ (6) $(0.50)
Total $ 64 $ 5.33

User Pay Service Annual Increase Monthly Increase

Water $ 15 $1.25
Sewer $ 15 $1.25
Solidwaste (garbage collection $ 27 $2.25
Total $ 57 $ 4.75

In accordance with the Community Charter disclosure requirements, the Langley 2009 – 2013
Five Year Financial Plan Bylaw 2009 No. 4738 will also discloses the following information:
• the proportions of revenue proposed to come from the various funding sources
• the distribution of property taxes among property classes; and
• the use of permissive tax exemptions.

In addition, Council must adopt a Development Cost Charge Reserve (DCC) Fund Bylaw
authorizing the expenditure of funds from the DCC Reserve. Development Cost Charge
Reserve Fund Bylaw 2009 No. 4739 will authorize the expenditure of funds from the
Development Cost Charge Reserve for 2009 DCC capital projects as well as DCC capital
projects in progress from prior years (carryforwards).

PURPOSE:
The purpose of this report is to bring forward the 2009 – 2013 Five Year Financial Plan and the
2009 Development Cost Charge Expenditure Bylaws for the first three readings.
2009 – 2013 FIVE YEAR FINANCIAL PLAN BYLAW and
2009 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW
Page 3 . . .

DISCUSSION/ANALYSIS:
2009 – 2013 Five Year Financial Plan
The 2009 – 2013 Five Year Financial Plan was developed based on resolutions and information
from various discussions with Council and the Finance Committee. Council received the results
of the public consultation on the 2009-2013 Financial Plan on April 3, 2009 and is scheduled to
hear more input at the Council meeting on April 6, 2009.

The 2009 – 2013 Five Year Financial Plan includes property tax growth for 2009, from new
construction, estimated at $2.06 million, one-time adjustments and operating carryforwards
representing projects and programs in progress to be completed in 2009. A listing of the 2009
Capital requests is attached as Attachment “C”.

Parks Utility is a new utility being proposed in 2009. The utility includes all park design,
acquisition, maintenance and any other related activities such as trails, park amenities, and
boulevard trees. Major funding is through property tax revenue based on property assessments
as these are universal services. The establishment of the Parks Utility enables the Township to
better communicate with taxpayers through isolating the cost of providing this service.

The 2009 Provisional Operating and Capital budget reflects non-discretionary expenditures
identified for 2009 based on ongoing contracts and implementation of a new fire hall as
approved by Council in 2008. Revenues are reflected based on a 5.0% property tax and levy
increase for 2009 plus funding from new construction projected at a growth rate of 2.0 % for
property tax assessments and 3% growth factor for water, sewer and solid waste.
Major incremental cost drivers for the 2009 Budget include the following:

Amount
Salary, Wages, Benefits & other $ 3,589,000
Firehall to full time service - salaries $ 1,376,000
Other contract cost increases & utilities $ 1,414,000
Policing contract increase $ 1,355,000
Garbage collection contract increase $ 1,200,000
Recycling contract increase $ 1,200,000
Sewer Levy/Water purchase/Provision for debt $ 979,000
Total $11,113,000

Property Taxation
The household impact of a 5% increase on property taxes & levies for a property assessed at
$473,000 receiving all utility services is an additional $121 for the year of $10 per month. The
total municipal bill for a household receiving all services increases from $2,021 to $2,142 per
year or $179 per month. For a property not receiving water, sewer and garbage collection
services the additional cost is $64 for the year or $5 per month and the total municipal bill
increases from $1,283 to $1,347 per year or $112 per month.
2009 – 2013 FIVE YEAR FINANCIAL PLAN BYLAW and
2009 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW
Page 4 . . .

2009 Capital Program Requests

The 2009 Capital Budget also has significant budget pressures. The main cost driver for the
Capital Budget is the escalation in the construction index in recent years. The construction index
has increased 47% between 2002 and 2007 and was not expected to decrease to the previous
3% per year level until 2011. The impact on our capital program has been significant in that our
revenue sources for capital have not increased at the same rate as the construction index. This
is especially true for Development Cost Charge projects where the DCC rates increases have
been significantly lower than the construction index increases. There are currently not enough
funds in the DCC reserves to fund the committed DCC capital program; therefore some projects
are on hold until there are enough funds for the projects.

Capital Funding
Capital projects are only partially funded from General and Utility Funds revenues with the
majority of the funding coming from sources such as reserves and surplus, development cost
charges receipts, senior government grants, local area service funds and as a last resort from
debt financing.

Debt financing is a viable method of funding long term capital projects which provide a benefit to
current and future taxpayers. This method ensures that all that will benefit will pay for the
projects over time. It is difficult to save for large infrastructure projects, therefore borrowing
ensures that required infrastructure is not unreasonably delayed and the annual payments are
manageable. The debt servicing, principal and interest, cost for $10 million borrowed for 20
years is $940,000 per year.

The table below shows potential debt reflected in the 2009 to 2013 Five Year Financial Plan for
various capital projects. The amounts for the years subsequent to 2009 and 2010 are potential
debt which can be borrowed externally or internally and which will be decided upon in future
years.
Carryforward
Potential Debt in $000’s 2009 2010 2011 2012 2013
from 2008
Transportation 4,763,367 7,568,925 - - - -
Sewer 8,500,000 - - - - -
Water 4,500,000 - - - - -
Stormwater 7,001,000 - - - - -

Total Potential Debt 24,764,367 7,568,925 - - - -

The new Public Sector Accounting Board recommendations for accounting for tangible capital
assets now requires us to record all tangible assets on the balance sheets, amortize all tangible
assets and record the amortization expense on the income statement. The amortization
expense is comparable to putting money aside in reserves for future capital renewal or
replacement. Staff are working on implementing these guidelines and will report to Council
when the work is completed.

New Community Charter requirements for Financial Planning

New financial planning requirements introduced for the 2008 Financial Plan will continue to be
phased in over the next few years as Council and staff review current policies and practices.
The disclosure requirements are as follows:
2009 – 2013 FIVE YEAR FINANCIAL PLAN BYLAW and
2009 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW
Page 5 . . .

The financial plan must set out the objectives and policies of the municipality for the
planning period in relation to the following:
(a) for each of the funding sources (property value taxes, parcel taxes, fees other
sources, and borrowing), the proportion of total revenue that is proposed to come from
that funding source
(b) the distribution of property value taxes among the property classes that may be
subject to the taxes
(c) the use of permissive tax exemptions

The data presented below, which will form part of the Langley 2009 – 2013 Five Year Financial
Plan Bylaw 2009 No. 4738, is based on past practices and discussion on changes to these
established allocations will follow in future budget sessions.

Proportion of total revenue

Operating Budget Capital Budget

Revenue Source
Funding Sources Funding Sources
Property taxes 35% 3%
Utility Levies 16% 0%
User fees and charges 25% 0%
Other sources 24% 83%
Proceeds from borrowing 0% 14%
Total 100% 100%

The proportion of total revenue raised from each funding source in 2009 is presented in the
table above. Property taxes form the greatest proportion of the operating revenue for the
Township. Property taxes provide 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, policing services, transportation and so forth. For these reasons, property taxation
will continue to be the major source of the Township’s revenue.

User fees and charges is the second largest portion of general operating revenue. Many
Township services, such as water, sewer, and garbage collection are charged on a user-pay
basis which ensures they are paid for by the taxpayers receiving these services.

Distribution of 2009 property taxes among the various property classes

Property Property tax

Property Class Description
Class Revenue %
1 Residential 60.54%
2 Utilities 1.22%
4 Major Industry 0.26%
5 Light Industry 6.88%
6 Business 29.97%
8 Recreation 0.39%
9 Farm 0.74%
Total 100.00%
2009 – 2013 FIVE YEAR FINANCIAL PLAN BYLAW and
2009 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW
Page 6 . . .

The distribution of property tax revenue among the various property classes is presented in the
table above. The practice of Council has been to set tax rates in order to maintain reasonable
tax stability in compliance with the Community Charter. This is accomplished by maintaining the
proportionate relationship provided above between the property classes. (Property classes are
defined and values determined by the British Columbia Assessment).

Use of Permissive Tax Exemptions

The total revenue foregone for permissive exemptions granted for the 2009 taxation year is
approximately $185,000. These permissive exemptions support Council policy that grants
permissive exemptions only to those not-for-profit organizations that provide a valuable service
to the community. The Township’s permissive exemption policy and practice provides
permissive exemption for bona fide community halls; community halls or facilities operated by
charitable and other not-for-profit organizations; religious institutions and private schools; and
heritage properties.

Development Cost Charges Reserves and Expenditures

Council must adopt a Development Cost Charge Reserve (DCC) Fund Bylaw authorizing the
expenditure of funds from the DCC Reserve. Development Cost Charge Reserve Fund Bylaw
2009 No. 4739 will authorize the expenditure of funds from the Development Cost Charge
Reserve for 2009 DCC capital projects as well as DCC capital projects in progress from prior
years (carryforwards).

Respectfully submitted,

Hilary Tsikayi
DIRECTOR
for
FINANCE DIVISION
ATTACHMENT “A” Langley 2009 – 2013 Five Year Financial Plan Bylaw 2009 No. 4738

ATTACHMENT “B” Development Cost Charge Reserve Fund Expenditure

Bylaw 2009 No. 4739

ATTACHMENT “C” 2009 Capital Requests and Funding Sources

and 2010 – 2013 Capital funding envelopes
 REPORT TO

MAYOR AND COUNCIL

PRESENTED: APRIL 6, 2009 - REGULAR MEETING REPORT: 09-46

FROM: FINANCE DIVISION FILE: 1970-02
SUBJECT: 2009 LANGLEY ANNUAL RATES AND TAX COLLECTION BYLAW FOR UNIVERSAL
SERVICES

RECOMMENDATION(S):
That Council give first, second and third readings to the Langley Annual Rates and Tax
Collection Bylaw 2009 No. 4741.

EXECUTIVE SUMMARY:
The Community Charter requires Council to adopt a bylaw imposing general variable tax levies
for the current year by May 14, 2009 and after the adoption of the Five Year Financial Plan.

Columns "A", "B", “C”, “D”, “E” and "F" of Schedule "A" attached, identify the tax rates which are
required to generate the revenue reflected in the 2009 component of the Langley 2009 – 2013
Five Year Financial Plan Bylaw 2009 No. 4738.

The Langley Annual Rates and Tax Collection Bylaw 2009 No. 4741 reflects a 5.00% ($64 per
average household) general property tax and levy increase. The property tax and levy impact to
a typical household with property assessed at $473,000 is an increase of $64 consisting of the
following:
Service Annual Increase Monthly Increase
Parks Levy $ 4 $0.33
Transportation Levy $ 11 $0.92
Stormwater Levy $ 4 $0.33
General Tax - Fire $ 25 $2.08
General Tax - Police $ 26 $2.17
General Tax – All Other $ (6) $(0.50)
Total $ 64 $ 5.33

The 2009 Budget emphasizes the community’s police, fire and transportation networks, with
initiatives to keep the Township of Langley safe, protected and on the move. There were
significant cost drivers in 2009 for salary and wage agreements; implementation of full-time fire
service at the Walnut Grove Fire-Hall; police contract increase; and recycling contract increase.
The revenue increase was achieved through a reduction of funding to capital projects and
elimination of some vacant staff positions.

PURPOSE:
The purpose of this report is to bring forward the Langley Annual Rates and Tax Collection
Bylaw 2009 No. 4741 for the first three readings.
2009 LANGLEY ANNUAL RATES AND TAX COLLECTION BYLAW FOR UNIVERSAL SERVICES
Page 2 . . .

DISCUSSION/ANALYSIS:
In accordance with the Community Charter, Council is responsible for establishing 2009 tax
rates in the following areas:
• General Municipal Services (general property taxes);
• Parks Service Levy; (new utility this year)
• Transportation Service Levy (roads);
• Stormwater Service Levy;
• Fraser Valley Regional Library Levy; and
• Greater Vancouver Regional District Levy;
Columns "A", "B", “C”, “D”, “E” and "F" of Schedule "A" attached identify the tax rates which are
required to generate the revenue reflected in the 2009 component of the Langley 2009 – 2013
Five Year Financial Plan Bylaw 2009 No. 4738.

General Municipal Property Taxes

Based on the Revised Assessment Roll, the recommended 2009 general tax rates will generate
$53,880,700 in General Revenue. Schedule "A" to Bylaw No. 4741 summarizes the tax rates
by class. The calculation of these rates is consistent with prior years' calculations and reflects a
5.00% tax increase. For a typical household with property assessed at $473,000 the property
tax equates to approximately $936 for the year or $78 per month. The general tax of $936 is
comprised of $183 for Fire services, $389 for Policing services and $364 for all other services
which include Community Development; Recreation & Culture; Corporate Administration;
Finance and Human Resources.

Parks Service Levy

The Parks Utility is being established this year to provide funding for the design, development,
operation and maintenance of the Township’s parks and open space system. Based on the
Revised Assessment Roll, the recommended 2009 Parks Service levy will generate $5,302,000
in Parks Service revenue. Schedule "A" to Bylaw No. 4741 summarizes the tax rates by class.
This levy equates to approximately $85 for the year or $7 per month for a typical household
assessed at $473,000

Transportation Service Levy

Based on the Revised Assessment Roll, the recommended 2009 Transportation levy will
generate $13,516,200 in Transportation Utility revenue. Schedule "A" to Bylaw No. 4741
summarizes the tax rates by class. This levy equates to approximately $233 for the year or $19
per month for a typical household assessed at $473,000.

Stormwater Service Levy

Based on the revised assessment roll, the recommended 2009 Stormwater levy rates will
generate $5,116,100 in Stormwater Utility revenue. Schedule "A" to Bylaw No. 4741
summarizes the tax rates by class. This levy equates to approximately $85 for the year or $7
per month for a typical household assessed at $473,000.
2009 LANGLEY ANNUAL RATES AND TAX COLLECTION BYLAW FOR UNIVERSAL SERVICES
Page 3 . . .

Regional Library Requisition

The Fraser Valley Regional Library requisition is a category which is a component of the
General Tax Levy. It was separated from the General Tax Levy in 1988 to enable taxpayers to
identify the cost of this specific service which Council has limited control. The total Fraser
Valley Regional Library requisition for 2009 is $3,132,155, an increase of 4.57% over the 2008
requisition of $2,995,263.

Greater Vancouver Regional District Levy

The Municipality's tax rates for the Greater Vancouver Regional District levy are calculated by
allocating the total amount required to be raised to the various property classes using the
Hospital Assessment base, applied to Provincially established tax rate ratios (class multiples).
The Greater Vancouver Regional District Levy requisition for 2009 is $1,659,568, an increase of
2.11% over the 2008 requisition of $1,625,258.

Respectfully submitted,

Hilary Tsikayi
DIRECTOR OF FINANCE
for
FINANCE DIVISION

ATTACHMENT A Langley Annual Rates and Tax Collection Bylaw 2009 No. 4741