City of Vancouver 2017 Budget

1 2017 BUDGETAND FIVE-YEAR financial PLAN1 | P a g e 13 December 2016 Council Approved 2017 Budget and Five-Year financial plan At the December 13, 2016 Council Meeting, Vancouver City Council approved an amended 2017 Operating Budget which includes $ additional contingency to address the fentanyl overdose crisis. This has resulted in a change to the original proposed property tax increase from to , raising the 2017 Operating Budget to $1,322 million. Balanced Operating Budget : $1,322 million (amended for $ million increase) Consolidated Budget (1) on financial statement basis: Capital Budget : $ million (no change) $ millions2016 Restated Budget2017 Approved BudgetNetChange($)Net Change (%)Revenues1,261$ 1,322$ 61$ & Transfers1,261$ 1,322$ 61$ Operating Budget - - - - $ millions2016 Budget on financial Statement Basis (2) 2017 Budget on financial Statement Basis (2)NetChange($)Net Change (%)

2 Revenues1,481$ 1,652$ 171$ & Transfers1,400$ 1,501$ 102$ Consolidated Budget81$ 150$ 69$ :(1) In order to present financial information on a consolidated basis, financial transactions between funds or entities have been removed.(2) Public Sector Accounting Board adjustments have been made, including amortization of tangible capital assets, net of debt payments/issues and reserve transfersIndicative City Property Tax Impact2016 Assessed Valueof Property(without Land Assessment Averaging)Estimated 2017 Tax Bill (CoV Portion)Change over 2016 Impact of additional strata unit assessed at $478,000$761$28+ $4 Median residential unit assessed at $936,000$1,490$56+ $7 Median single-family unit assessed at $1,386,000$2,207$83+ $11 Median commercial property assessed at $618,000$4,049$152+ $19 Indicative City Property Tax and Utility Fee ImpactESTIMATED2017 TAXBILL (CoV PORTION)

3 CHANGEOVER 2016 ESTIMATED2017 TAX BILL (CoV PORTION)CHANGEOVER 2016 Property Taxes ( increase)$2,207$83$4,049$152 Utility FeesWater$616$24$571$22 Sewer$384$39$392$40 Solid Waste$271$10$217$8 Total Utility Fees$1,271$73$1,180$70 Total City Taxes and Fees$3,478$156$5,229$222 MedianSingle-Family $1,386,000 MedianBusiness Property $618,000 Updated 2017 Budget Summary 2017 Increases - City Property Tax, Fees and ChargesProperty Fees (combined) single-family home combinedmunicipal property tax and utility Increases - All other FeesRecreation user other user Budget and Five-Year financial plan i Table of Contents Message from the City Manager .. 1 2017 Budget and Five-Year financial plan Highlights.

4 2 Part I: The City of Vancouver s Fiscal plan .. 6 Budgeting for results .. 6 Funding the Budget .. 6 Key steps in the 2017 Budget process .. 8 Service planning and Budget 9 City of Vancouver overview .. 10 Long-term priorities and strategic goals .. 10 Economic context .. 12 Local context .. 12 National/provincial context .. 14 Global context .. 15 Federal Budget and infrastructure partnership .. 17 Fiscally responsible .. 18 financial sustainability guiding principles .. 18 Progress with Council priorities .. 23 Housing, affordability and homelessness .. 23 Safety, inclusion and social services .. 32 Economic development .. 41 Greenest City .. 42 Value for money .. 46 Public engagement.

5 48 Public feedback highlights .. 50 Summary of Insights West research .. 55 Public feedback results .. 56 Competitive residential and business property taxes and fees .. 57 Property taxes .. 58 Utility fees .. 66 User fees .. 68 Operating Budget .. 70 Revenue highlights for 2017 .. 70 Expense highlights for 2017 .. 71 Operating revenues .. 72 2017 Budget and Five-Year financial plan ii Operating expenditures .. 74 Investments .. 76 Managing costs for existing services .. 79 Detailed Operating Budget table .. 83 Notes to Operating Budget table .. 93 Impact on property taxes and utility fees .. 97 Five-year financial plan .. 99 Capital Budget .. 103 10-year Capital Strategic Outlook .. 103 Four-year Capital plan .

6 103 New capital project Budget and funding .. 105 Infrastructure renewal to sustain services .. 106 Capital Expenditure Budget and five-year financial plan .. 107 Capital Expenditure Budget and five-year financial plan by service category .. 108 Top 10 projects and 111 Highlights of the Capital Budget and five-year financial plan .. 112 Consolidated Budget .. 130 Fund background .. 130 Other entities .. 132 Consolidation adjustments .. 136 Operating Budget basis of presentation .. 136 Changes in 2017 .. 138 Property Endowment Fund Budget .. 140 Property Endowment Fund Budget summary .. 141 Part II: Department Service Plans .. 145 Vancouver Police Department .. 146 Key services delivered.

7 146 Major accomplishments in 2016 .. 146 Plans for 2017 .. 150 Looking ahead, 2018 2021 .. 152 Department service metrics .. 152 Vancouver Public Library .. 159 Key services delivered .. 159 Major accomplishments in 2016 .. 160 Plans for 2017 .. 162 Looking ahead, 2018 2021 .. 162 Department service metrics .. 163 2017 Budget and Five-Year financial plan iii Vancouver Fire and Rescue Services .. 171 Key services delivered .. 171 Major accomplishments in 2016 .. 171 Plans for 2017 .. 173 Looking ahead, 2018 2021 .. 174 Department service metrics .. 175 Vancouver Board of Parks and Recreation .. 182 Key services delivered .. 182 Major accomplishments in 2016 .. 182 Plans for 2017 .. 187 Looking ahead, 2018 2021.

8 190 Department service metrics .. 192 Engineering Services .. 202 Engineering Services Project and Quality Management .. 202 Engineering Services Waterworks .. 204 Engineering Services Sewers and Stormwater .. 210 Engineering Services Zero Waste and Resource Recovery .. 216 Engineering Services Neighbourhood Energy .. 224 Engineering Services Public Works .. 229 Planning, Urban Design and Sustainability .. 247 Key services delivered .. 247 Major accomplishments in 2016 .. 248 Plans for 2017 .. 249 Looking ahead, 2018 2021 .. 251 Department service metrics .. 251 Development, Buildings and Licensing .. 258 Key services delivered .. 258 Major accomplishments in 2016 .. 259 Plans for 2017 .

9 260 Looking ahead, 2018 2021 .. 261 Department service metrics .. 262 Community Services .. 267 Social Policy and Projects .. 267 Cultural Services .. 271 Vancouver Civic Theatres .. 273 Housing Policy and Projects .. 274 Housing Operations .. 281 Services for the homeless .. 282 2017 Budget and Five-Year financial plan iv Mountain View Cemetery .. 284 Looking ahead, 2018 2021 .. 285 Vancouver Affordable Housing Agency .. 293 Key services delivered .. 293 Major accomplishments in 2016 .. 293 Plans for 2017 .. 293 Looking ahead, 2018 2021 .. 294 Department service metrics .. 294 Vancouver Economic Commission .. 295 Key services delivered .. 295 Major accomplishments in 2016 .. 295 Plans for 2017 .

10 303 Looking ahead, 2018 2021 .. 304 Corporate Support Services .. 306 City Manager s Office .. 306 City Clerk's Department .. 318 Finance, Risk and Supply Chain Management .. 323 Human Resources .. 329 Information Technology, Digital and 3-1-1 Contact Centre Services .. 331 Legal Services .. 337 Real Estate and Facilities Management .. 340 Department service metrics .. 346 Part III: Public Engagement Report .. 353 Part I: The City of Vancouver s Fiscal plan 1 Message from the City Manager Our Budget supports a livable, sustainable and equitable city Vancouver is an amazing city and we want to keep it that way. Like many cities, Vancouver has challenges with growth, increasing income disparities, demand for addictions and mental health services, climate change, housing affordability and infrastructure needs.