For Immediate Release

May 8, 2014


Tel: 250-392-2311
Fax: 250-392-4408
450 Mart Street
Williams Lake, BC
V2G 1N3
2014 Budget and 2015-2018 Financial Plan

At a special meeting of Council May 6
th
, Council adopted the 2014 budget and 2015-2018 Financial Plan, and
gave three readings to the Tax Rate Bylaw.

The 2014 budget totals $31.99 million, a reduction from $32.5 million in 2013, and operating costs total
$19.69 million. Operating costs have been reduced by $388,000, while levels of service will remain unchanged. For
the third year in a row, the budget does not contain any long-term or short-term borrowing, and there are no
changes to the water and sewer utility rates.

The budget and financial plan reflect Councils commitment to the improvement of City streets in a strategic
and fiscally responsible manner and its commitment to long-term strategic financial management. A 3% tax revenue
increase will see 1% go to addressing inflationary costs, and 2% toward future pavement management projects.

The financial plan calls for this annual tax revenue increase of 2% to provide a stable source of revenue
towards annual roadway projects that addresses the infrastructure deficit in the community. The funding of capital
roadway projects will be a combination of the dedicated tax levy, reserve account transfer and potentially future
short term borrowing as required.

The budget and financial plan address three objectives to support the Citys goals to operate an efficient and
self-sufficient municipality while maintain a well-serviced, safe, livable, and sustainable community:
1) A long-term financial management strategy, which includes addressing the annual rate of inflation, and
increase reserve account balances;
2) A long-term pavement management program, whereby streets prioritized in a pavement management
study will be improved in a strategic and fiscally responsible manner;
3) Establishment of core and non-core service levels for activities and programs that harmonize the diverse
needs of all residents, businesses, and visitors with fiscal priorities and limitations.
The tax revenue increase would mean an additional $23.47 per $100,000 of assessed value for the residential
rate class, an additional $63 per $100,000 for the business rate class, and $340 per $100,000 for the major industry
rate class. The City receives 39% of its tax revenue from the residential class, 26% from the Business class, 23%
from Major Industry, and 12% from other rate classes (Light Industry/Utilities/Farm Rec-Non Profit).

A home assessed at $300,000 will pay $1,765.50 for the municipal portion of property taxes, which is
roughly 51% of the total tax bill. A business assessed at $500,000 will pay $6,355 for the municipal portion of
property taxes. The City also collects taxes on behalf of the province and the Cariboo Regional District.

Highlights from the $12.3 million capital budget include repaving portions of 2nd and Pigeon Avenues, and
reconstruction of Borland Street between 4th and 7th Avenues, and a pedestrian underpass linking the River Valley
and Stampede grounds trail systems. The pedestrian underpass project will be funded completely by senior
government grants and funding programs. There are also $1.7 million in sewer system projects and $1.1 million in
water system projects. A list of capital projects are attached below this release.

Assessment growth accounted for $90,964 in additional revenue for the City. The tax rate increase will add
another $336,106.

This budget again demonstrates Councils commitment to smart planning for the future, says Mayor Kerry
Cook. We accomplished the South Lakeside paving and widening project without borrowing because of previous
planning, so we know laying the groundwork for the future is the best way to address the Citys $50 million
infrastructure debt without borrowing from our taxpayers. We are planning ahead to maintain streets each year
according to a pavement management plan before they deteriorate further, and at a much higher cost.

Council and staff have done their due diligence by finding $388,000 in efficiencies to reduce the operating
budget. While a tax increase may not be popular, it is the sustainable, strategic way to address our needs
responsibly, without saddling future Councils with depleted reserves and additional long-term debt.

The Tax Rate Bylaw will be considered for adoption at the May 13 regular meeting of Council.


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For more information, contact:
Ken MacInnis
Communications Coordinator
250-392-8488