2019–2023 Financial Plan Buchanan Square On the Cover: Located on Burlington Drive next to Coquitlam City Hall, Buchanan Square is a large 0.72 acre public open space consisting of an upper-level and lower- level outdoor plaza. This plaza is an important public interface between City Hall and the Coquitlam RCMP building. In 2019, the City plans to enhance and improve Buchanan Square in City Centre to create a more usable public space that reflects the City’s identity and meets the community’s changing needs. CITY OF COQUITLAM, BRITISH COLUMBIA 2019–2023 Financial Plan ii City of Coquitlam | 2019–2023 Financial Plan Contents Reader’s Guide iv CHAPTER 6: 2019 Five-Year Operating Plan 57 Revenues 57 Distinguished Budget Presentation Award v Taxation 57 Fees, Rates & Charges 60 Coquitlam City Council vi Grants 60 Investment Income 60 Message From Mayor Richard Stewart vii Casino Revenue 61 Other Revenue 61 CHAPTER 1: Executive Summary 1 Revenues—Sewer & Drainage 61 Revenues—Water 62 CHAPTER 2: Coquitlam—A Thriving City 2019 Operating Plan By Department 63 with Community Focus 3 City Manager’s Office 64 Deputy City Manager’s Office 66 Coquitlam—The Early Years 4 Coquitlam Fire/Rescue 70 Coquitlam Profile & Demographics 4 Coquitlam RCMP Detachment 72 City Government Overview 6 Finance & Technology 75 2019 Organization 8 Engineering & Public Works 78 CHAPTER 3: Integrated Planning Framework 9 Planning & Development 85 Parks, Recreation & Culture 89 Strategic Planning 10 Strategic Initiatives 95 Strengthen Neighbourhoods 12 Expand Local Jobs, Local Prosperity 14 Chapter 7: 2019 Five-Year Capital Plan 97 Increase Active Participation Capital Planning Process 97 & Creativity 16 2019–2023 Capital Plan 98 Enhance Sustainability of 2019 Capital Project Details 100 City Services & Infrastructure 18 Funding Sources 104 Achieve Excellence in Debt Borrowing 105 City Governance 20 Infrastructure Sustainability— Business Planning 22 Asset Management 106 Financial Planning 26 2018/2019 Financial Planning Appendix 109 Process Schedule 27 Glossary of Terms 109 CHAPTER 4: Financial Policies, 2019 Five Year Financial Plan Bylaw 111 Fund Structure and Reserves 29 Financial Policies 29 Fund Structure 32 Capital Reserve Funding 34 Statutory Reserve Funding 40 Utility Reserve Funding 42 Operating Reserve Funding 45 CHAPTER 5: Financial Plan Overview 49 Budget Context 49 Key Budget Assumptions 50 Consolidated Statement of Financial Activities 52 Statement of Activities by Fund 53 Employee Base—FTE Analysis 54 City of Coquitlam | 2019–2023 Financial Plan iii Reader’s Guide This budget document provides an overview of the 2019–2023 Financial Plan, including the City’s integrated planning process, details about key elements of the Financial Plan and 2019 budget, impacts to residents and a look forward to the future of Coquitlam. The 2019 – 2023 Financial Plan is organized into the following chapters: 1. Executive Summary Provides a summary of the 2019–2023 Financial Plan including key highlights and impact to residents by way of tax and other rate changes. 2. Coquitlam Overview Provides an overview of the City of Coquitlam’s history, location, population and demographics as well as the governance structure. 3. Integrated Planning Framework Outlines Coquitlam’s corporate planning framework including the Strategic Plan, Business Plan and financial planning processes. 4. Financial Policies, Fund Structure and Reserves Highlights the financial policies and regulatory requirements related to the development of the City’s Financial Plan. This section also identifies Coquitlam’s financial fund structure, which is a combination of the general fund, utility funds, reserve and trust funds, and includes a summary of reserve funding. 5. Financial Plan Overview Provides an assessment of the internal and external conditions affecting the City of Coquitlam along with the City’s major fund balances, consolidated financial summary, and staffing history. 6. 2019 Five-Year Operating Plan Outlines the Five-Year Operating Plan and identifies major revenue sources, budget increases and departmental budget details including related key performance measures. 7. 2019 Five-Year Capital Plan Outlines the Five-Year Capital Plan and includes the City’s approach to capital planning, guiding principles, funding sources, and a summary of capital projects by category. This section also outlines the City’s sustainable asset management program. 8. Appendix Provides a glossary defining terms that are either technical in nature or have a unique meaning for the City of Coquitlam. iv City of Coquitlam | 2019–2023 Financial Plan Distinguished The Government Finance Officers Association (GFOA) of the United Budget States and Canada presented a Distinguished Budget Presentation Presentation Award to City of Coquitlam, B.C. for its annual budget for the fiscal Award year beginning January 1, 2018. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, operations guide, financial plan and as a public communications device. This award is valid for a one-year period only. We believe our current document continues to meet the program requirements and we are submitting it to GFOA to determine its eligibility for another award. City of Coquitlam | 2019–2023 Financial Plan v Coquitlam City Council Mayor Richard Stewart Councillor Brent Asmundson Councillor Trish Mandewo Councillor Craig Hodge Councillor Dennis Marsden Councillor Steve Kim Councillor Teri Towner Auditors: KPMG LLP Councillor Bank: Chris Wilson Scotiabank Councillor Bonita Zarrillo vi City of Coquitlam | 2019–2023 Financial Plan Message From Mayor Richard Stewart The City of Coquitlam’s 2019–2023 Public Safety Financial Plan outlines our five- To support the efforts of the Coquitlam RCMP, we’re adding year operating and capital budget. four new officers to support traffic, as well as some emerging This plan is developed annually areas including a greater focus on youth, sex crimes and by City Council, with support from staff and input from domestic violence. the community, and addresses priorities identified by our community. The Economy Expanding local jobs, local prosperity is an important goal Our Council places a high importance on strong fiscal for the City under our Strategic Plan. In 2019, we’ll continue management. In fact, Coquitlam has seen 10 years of to support our Tourism, Economic Development, business declining tax increases. This year’s increase to the base retention and Business LinQ programs. budget—the municipal portion of the tax increase—is 2.05%. This ranks among the lowest tax increases over the past Technology Improvements 21 years. However, new for 2019 is the Provincial Employer Several initiatives aim to make the City more available, Health Tax, which adds an additional 0.51% to the property interactive and efficient than ever before including new tax increase. For the average homeowner, this works out to online engagement tools, new Parks, Recreation & Culture an estimated increase of $57 in 2019. online registration system, a City services mobile app, increased and improved WiFi services in public facilities, Some of the key areas of investment this year include: enhanced eServices and a new website. Transportation The 2019–2023 Financial Plan demonstrates our Transportation continues to be a priority for residents, so commitment to fiscal responsibility while still providing we’ll invest $124 million over the next five years into road the policies, programs and services to support the changing expansion, rehabilitation and repaving, and infrastructure needs of a rapidly-growing and thriving community. management. This includes funding for the sidewalk program to increase safety and walkability, street lighting LED conversion program, cycling paths and greenways. Parks and Trails Parks and trails are also important to residents and so we have budgeted $89 million over the next five years to support Richard Stewart this area. Projects in 2019 include new and revitalized parks Mayor including Riley, Town Centre, Cottonwood and Brookmere parks. This also includes Phase 3 of our Park Blitz program refreshing older parks in Southwest Coquitlam; 2019 will focus on Oakdale, Guilby, Ranch and Lower Lougheed parks. Capital Infrastructure Approximately $457 million has been earmarked for capital infrastructure needs over the next five years. Key projects coming from existing reserve funds include: h replacement of Place Maillardville, h a new Park ’n Ride in Burquitlam, h improvements to Buchanan Square, h improved streetscapes through our Frontage Works Program, and h aesthetic and safety improvements through our Neighbourhood Enhancement Blitz. City of Coquitlam | 2019–2023 Financial Plan vii CHAPTER 1: Executive Summary In compliance with the Community Charter, Coquitlam City development revenues, general and utilities revenues, Council adopted the 2019–2023 Financial Plan in March reserves and grants. In addition to the funding required to 2019. The plan supports Coquitlam’s 2016–2019 Strategic maintain existing service levels, the 2019 operating budget Plan and provides the resources required to deliver the City’s includes additional funding to enhance police services, services. The plan is based on financial planning and analysis, planning and development, parks, recreation and cultural staff input, public consultation and Council direction. It also services, administrative services, and operating costs for complements Coquitlam’s 2019