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The original item was published from 5/10/2016 2:12:04 PM to 5/12/2016 3:58:36 PM.

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Posted on: May 10, 2016

[ARCHIVED] Five Year Financial Plan Amendment Process Underway

The Cowichan Valley Regional District (CVRD) is in the process of amending its 2016-2020 five year Financial Plan to include 2016 budget adjustments approved by Committees and Commissions subsequent to the CVRD Board of Directors’ (the Board) December 09, 2015 adoption of the 2016-2020 five year Financial Plan. This proposed amended Financial Plan will go before the Board for consideration June 08, 2016.

In addition to amendment requests, fundamental changes in the CVRD’s budgeting process were implemented for the 2016-2020 Five Year Plan. One significant change was the earlier adoption of the budget by the Board. The 2016 Budget was adopted December 09, 2015 and therefore 2016 budgets were adopted before year end deficits were known. The CVRD is legislatively required to fund deficits in the following year and as such budget amendments are required for those budgets that incurred deficits in 2015. The significant budget amendments are detailed below.

The Arbutus Ridge Sewer System 2016 budget is proposed to be amended to reduce capital spending by $2.5M as well as Long Term Debt by the same amount. This work has been rescheduled to 2018 to accommodate completion of various approval processes.

It is proposed that the Solid Waste Management budget be amended to accommodate a $124,085 2015 deficit as well as significantly reduce its 2016 capital spending by $1.78M from $2.53M. A capital project originally scheduled to begin construction in 2016 has been rescheduled to 2017. The remaining work in 2016 will now be partially funded through $450,000 in Gas Tax funding allowing budgeted Long-Term Debt to be reduced by $2.23M.

The CVRD is currently working on the Cowichan Valley Trail – Malahat connection building the trail from South Shawnigan Lake to the Capital Regional District boundary. This project was allocated $300,000 of Gas Tax funding which now needs to be included as an amendment to the budget. The total project is estimated to cost $2.59M.

The Community Health Network was successful in its request for an additional $240,000 in grant funding from the Vancouver Island Health Authority. It is proposed that this budget be amended to account for the increased funding.

$100,000 of Gas Tax funding was allocated by the Board to the Burnum Park Water System in order to fund design work for system upgrades. An amendment is proposed to include the Gas Tax funding in the 2016 budget as well as increase capital spending by the same $100,000.

In order to accommodate a reduction in various capital funding sources, an amendment is proposed for the Lambourn Sewer System to utilize $83,446 of its 2015 surplus.

In total there are 33 functions with proposed amendments. These include the aforementioned amendments as well as various other minor changes as well as adjustments to accommodate prior year deficits.

Click on the link below to view components of the proposed amended 5 Year Plan.
•Proposed Amended 2016 - 2020 5 Year Financial Plan

For further information please contact:
Lyle Smith

Proposed Amended 2016 - 2020 5 Year Financial Plan