City of White Rock staff and council have shed some light on questions raised in the community, in a discussion of a second draft of the 2025-29 Financial Plan at the most recent council meeting (Feb. 24).
Chief administrative officer Guillermo Ferrero and Mayor Megan Knight were at some pains to explain during the meeting that figures relating to city reserves and capital project roll-overs can be misinterpreted, if taken out of context.
In presenting the second draft, financial services director Candice Gartry told council it incorporates final departmental figures and reserve fund balance projections, and projects a tax increase of 4.94 per cent, consistent with the initial draft.
The financial plan bylaw will return to council at the March 10 meeting for first, second and third readings, she noted.
Ferrero and Knight's comments came after Coun. Christopher Trevelyan followed up on some questions raised earlier in the evening by Gary Gumley of the White Rock Homeowners and Taxpayers Society.
Gumley had noted that cash assets for the city currently stand at more than $180 million.
"We have cash assets for the city of approximately 182 million, just to be clear on that?" Trevelyan asked.
Ferrero agreed, although full details of all city assets – including city-owned land – were not to hand at the meeting.
"What I can tell you about the reserves and the cash – (is) that includes everything," Ferrero said.
He said that includes DCC (development cost charge) reserves, CAC (community amenity contribution) reserves, along with all capital projects approved by council.
"The important thing to remember for council and the community is that we have $180 million in reserves – roughly – but we have a deficit of our infrastructure of $1 billion – so you actually have only 20 per cent on your bank (amount) to be able to address necessities of the community for the next 20 years," he said.
"That's really the number that should be remembered."
Knight also took the opportunity to add some points.
"When someone gets up and says 'we have $182 million' – that $182 million is in all different reserves. So it's not like I can just go write a cheque for the pier, right?
"It's already been (earmarked) for our roads, our sewers, CACs, whatever it is. We've got $182 million total but it's all been specified in (different categories). If you had a pie chart, (these things) would all have a slice of it.
"It sounds wonderful, it sounds like we've got all this money just sitting there, but it's already been designated for a purpose."
Gumley had also asked about what appears to be low interest return on the city's cash assets, judging by current interest rates, but Ferrero answered that full information on interest income in 2023-24 won't be available until May.
Following up, Trevelyan wondered what kind of investments the city chooses for assets.
"Council passed a policy last year for investments by the City of White Rock," Ferrero said.
"Obviously the investments are very regulated, for a municipality, (and) they're very conservative. Short of interest rates on savings accounts, GICs, short and long-term deposits, we don't have much more.
"We don't have any Tesla stocks, so the community can rest assured that we didn't lose 18 per cent in the last couple of weeks – the investments the city makes are very conservative, because we are handling taxpayers' money."
Ferrero said current investments bring an average of 4.7 per cent interest.
He noted that investment revenue was much less 20 years ago, and added that, even as recently as four years ago, the annual average was $1.5 million.
Ferrero said that, as a result of doing better on investments, the city has since increased interest revenue, in the 2025 budget, to a projected $5 million.
"I hope the city can sustain that for the next few years, because, without having that revenue, we'll have to make up those extra millions," he said.
Trevelyan also revisited questions Gumley had about capital works project roll-overs from year to year, and new capital projects being added before others are completed.
"I think the point he was trying to make was, you've taken money for various (projects), not done them, and are taking more money for further projects," Trevelyan said.
"Should we not get some of those done, before we take money for the next project?"
In answer, Ferrero likened municipal budgeting for capital projects to putting money aside for household repairs.
"Let's say you have a roof in your house that needs repairs. Obviously, you put the money away for that project. Perhaps you don't get to do it that year because you have other priorities, but the project still remains, the roof needs to be replaced, it doesn't go away.
"In the meantime other things happen – you have a new water tank or you need to change the fencing. And that's how capital projects keep being added to the list.
"Council has the opportunity to add, remove or simply get rid of a capital project if you choose to – that's within the plan you approve, the financial plan.
"Obviously, yes, staff would wish to do all these capital projects as fast as possible, but, as you know, sometimes priorities do change, and we struggle with staffing levels and trying to get these things underway. Quite simply, sometimes, it's nearly impossible to do everything that we want to do for that year."
Unless it is a cosmetic project it doesn't go away, Ferrero said, and accumulated capital roll-over will continue every year until that project is completed.
"We can decide not to replace that roof – but there are risks."
