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Financial Planning Process
2016-2020 FINANCIAL PLAN
The City uses an accrual basis for
budgeting that reports income when
earned and expenses when incurred,
matching income with their related
expenses.
In addition, the Financial Plan has been
prepared based on the Legislative British
Columbia Community Charter which
differs from the City’s Audited Financial
Statements that are prepared under Public
Sector Accounting Board (PSAB)
guidelines for financial statement
presentation. Those differences include:
Reporting for expenditures, including
all transfers to other funds and
authorities; and
The treatment of capital expenditures,
which differ from the financial
statements where all capital
expenditures are capitalized as assets.
Other Financial Planning policies include:
The Consolidated Financial Plan
includes all components and
represents all revenues and
expenditures that the City intends to
make for the period; and
Appropriated surplus monies
potentially available for appropriation
by individual departments are
included in the respective
Departmental Financial Plans.
Appropriated surplus funds that are
not retained by individual
departments, are recorded separately.
FINANCIAL PLANNING PRINCIPLES
This Financial Plan has been prepared
using the Principles of Municipal
Governance as outlined in the Community
Charter, Section 1 (1). The rationale for
incorporating a set of principles into a
decision-making process of public office is
twofold. First, principles provide structure
and commonality in situations where the
interests and objectives of affected parties
differ. Second, explicit reference to
principles makes the political decision
process more comprehensible, which in
turn fosters a greater degree of public
confidence.
The City has developed a set of principles
to guide the financial planning process and
the preparation of operating and capital
plans. Individually, each principle
represents an objective, which is deemed
to have positive consequences for the City
over the long-term. Collectively, these
principles provide a reference for aligning
financial planning objectives with other
City objectives, thereby helping to preserve
the ongoing financial health of the City.
These principles are of two types: those
related to both the Capital and the
Operating Financial Plan and those specific
to the Operating Plan.
BASIS OF BUDGETING AND FINANCIAL PLANNING POLICIES
AMENDMENT TO THE FINANCIAL PLAN AFTER THE FINAL ADOPTION
In certain instances, Financial Plan appropriations may be amended after Council has
adopted the Plan. Any changes made after the Financial Plan By-law has been adopted
require a Financial Plan Revision By-law.
Changes are tracked during the year and new spending is temporarily funded through
contingencies. At the end of the year, Council adopts a revised Financial Plan By-law to
incorporate these changes.
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