The Municipal Budget

There are two components to the municipal budget:

• The Capital Plan that pays for construction or improvement of assets like buildings or new infrastructure;
• The Operating Budget which is the day to day running of the City.

Think of the Capital Plan as the mortgage and the Operating Budget as monthly expenses.

The City of Vancouver is required by law to bring in a balanced budget - the City cannot run a deficit. The primary revenue source for municipalities is property tax (62% in 2009). Whether you own or rent, you pay property tax - directly or through your rent.

There is general information on the 2009 Operating Budget here.

The budgeting process usually begins in the fall of each year, when staff present initial budget estimates to council. Council approves or adjusts this first draft of the budget, then a series of public meetings and mail-outs seek input from citizens. The process must finish by the end of May so Council can pass the budget in time for the fiscal year beginning June 1.

In 2009, Mayor and Council are accelerating the process to have the budget completed by the end of December 2009, to allow the City to focus on the Olympic Winter Games in January and February. They presented preliminary estimates in September.

In 2009, Vancouver City Council will follow this timeline to develop
the Annual budget:

May 2009

• Vancouver Services Review (VSR) initiated

September to October

City Council will:

• Approve budget timeline
  • Public consultation program
  • Target property tax increase
• Set utility budgets and fees
• Accept reports on major funding requests
• Review detailed administrative budgets
• Corporate Management Team strategy sessions
• Staff briefings with City Council, Boards and Union Executives
• Preliminary property assessment roll information
• Accept staff reports
• Operating budget – “Interim Estimates” presented October  
  Download the budget here.
  

October 26 to early November

• Public consultation
• Public consultation results on Property Tax Policy Review Commission’s final recommendations reported to City Council
• City Council set direction on property tax redistribution and land assessment averaging

Late November to end of December

• The “Interim Estimates and Public Consultation Results” updates
• December 15 The “Final Estimates” report presented to Council for adoption
• final budget strategy
• City Council approves final operating budget & property tax increases
• City Council sets tax rates

May 2010

• Council Report with 2010 Property Taxation Bylaws and Averaging Resolution.