New Westminster is getting a jump on parts of the 2023 budget – but the new council will still get to deal with the operational budget and will get a final say on everything.
At Monday’s meeting, council endorsed a framework and timelines for next year’s budget.
The plan is to have the current council approve 2023 user fee rate increases (various fees charged by the city) and the 2023 capital budget in October – before the Oct. 15 civic election.
In a report to council, staff say this would provide the “critical information” required to forecast the impact on next year’s property tax and utility rates, as well as allow staff to focus on bringing the new council up to speed and to host a budget introduction and educational session about the existing five-year financial plan – while still allowing major capital projects and programs to proceed as planned.
Under the proposed timeline for the 2023 budget, council would first consider the user fees in September. It would approve the user fees and have a capital budget workshop on Oct. 3.
In November – following the civic election – staff would provide the new council with a budget introduction and overview, have a workshop with council on the utility budget and provide an update on the capital and operating performance (for the third-quarter of 2022). After considering the proposed utility rate increases in November, it recommended that council adopt the 2023 utility rates in December.
It’s also anticipated that council and staff would have budget workshops in December, with consideration of the 2023 draft budget and the five-year financial plan bylaw taking place in January and February.
The date of adopting the2023 budget is yet to be determined.
“I do know we have fallen into a best practice of trying to have the budget largely approved by the end of the year, and that makes a lot of sense in most years,” said Mayor Jonathan Cote. “But I think in an election year, obviously, that’s a little bit more of a challenge and I think we just need to make sure that we are giving ourselves time for the new council, and likely recognize that next year’s budget will likely be a few months into the new year.”
In recent years, city council has sought to approve the budget by the end of the year, as that timeline allows staff to get to work on delivering items included in the annual budget.
Cote questioned staff about the plan to approve most of the capital budget before the election.
Finance director Harji Varn said that’s recommended in consideration of the fact the city already has an approved five-year financial plan in place. As of February 2022, she said the capital plan includes $453 million for existing projects, with $170 million of those items in the works right now – of which about $20 million has been spent so far on those committed projects.
“Three of the major projects, we will be completing in 2023,” she told council Monday night. “And we still have quite a balance of capital projects that will be brought forward to council within the existing plan.”
Varn said the items in the capital budget are “not new news” as they have already been publicly approved and are on the go.
Cote, who isn’t seeking re-election, said he’s comfortable having the current council approve the capital budget when it comes to “rollover projects” that have been previously approved or projects that may be time sensitive, but he thinks any new capital items should be considered by the new council.
“I do believe the new council really does need to not only deal with the operational budget but really does need to be fully brought up to speed with the capital budget,” he said. “I am comfortable, as we move into the fall, engaging particularly when it comes to rollover projects or ones that are kind of more maintenance and time-sensitive with this council, but I do think time does need to be spent with the new council on the capital budget.”
Varn assured Cote that the new council would be able to provide input into the capital and the operational budgets.
“This approach and this budget framework does allow for the new council to be onboarded and to deliberate ahead of the final approval of the budget,” she said. “Also, there is a quarterly budget process that allows for quarterly capital adjustments.”
Follow Theresa McManus on Twitter @TheresaMcManus
Email tmcmanus@newwestrecord.ca
