The City of Vancouver last week provided a glimpse of what its 2013 budget is likely to look like.
Its 2013 Budget Outlook document did not provide an exact projection for how big the operating budget would be in comparison to its 2012 $1.13 billion operating budget.
http://vancouver.ca/files/cov/City-of-Vancouver-2013-Budget-Outlook-2013-09-27.pdf
Staff are expected to present an estimate in December for how big the operating budget will be in 2013.
The outlook did list some potential revenue and expenditure changes in 2013 that add up to $10 million less revenue next year than in 2012.
Extra revenue is expected to come from:
- new tax revenue from new construction ($3 million);
- higher revenue from development permits and licences ($2 million);
- increased user fees ($3 million);
- increased property taxes ($12 million) and
- increased utility revenue ($14 million).
Expense hikes are expected to come from:
- costs for new programs (between $3 million and $5 million);
- other service pressures ($10 million);
- increases in capital program costs and fixed costs such as fuel, leases and insurance ($8 million);
- increases in wages and benefits ($7 million); and
- utility costs ($15 million).
The document noted that wage increases from collective agreements will also raise expenses but that the size of that increase is not yet known.
“The city will look at opportunities to bring the budget into balance by refining the estimate and by looking for opportunities to continue to transform the organization and find innovative ways to deliver on the increasing demand for services while maintaining a reasonable cost structure,” the document said.
The city’s capital budget for 2013 is expected to be $250 million, which is up from the current $246 million forecast for 2012.
