Port Moody 2012 Annual Report: Land sales (finite revenues) not sustainable asset funding strategies

Port Moody 2012 Annual Report: Land sales (finite revenues) not sustainable asset funding strategies

Confused Pooh

 

 

 

 

 

 

 

 

 

Not long ago, the City of Port Moody stated that land sales are not a sustainable method to raise revenue, as land is a “finite” asset.

Now, in 2016, city land – and potential sale of – is under review.  Areas include the public works yard, former fire hall site, Kyle Centre, and former Barnet land fill site.

The next “Community Fair” open house for the public will be on Saturday, June 25th at Kyle Centre from 1:00 pm to 5:00 pm.  This is a very important discussion.

Most recent MCCA post on this subject:
Community consultation — city-owned lands and neighbourhoods

Image below, Port Moody City Hall
PoMo city hall and blue trees

Excerpts below are from 2010 and 2012 City of Port Moody Annual Reports.  To view complete reports, click on the links.

PoMo Annual Report, 2010 (published 2011)

Message from the Mayor (Joe Trasolini)
Page 3
During the Official Community Plan (OCP) process, we heard that you value Port Moody’s small town charm. We welcome new residents as neighbours and partners in preserving Port Moody’s small town values. Boutique shopping, wide sidewalks and pedestrian plazas in new developments help create a village atmosphere. Public art, festivals and special events bring us together to enjoy our treasured parks and heritage, creating a vibrant Port Moody, City of the Arts.  The City’s new OCP is a demonstration of how carefully we have listened to your concerns for transportation to catch up to our growth. [Ed. note: the “new OCP” adopted in 2011 has now been replaced; it was “re-opened” in 2012 and a very different version adopted in 2015.]

Paul Rockwood, Chief Financial Officer
Page 26
The City’s 2010 increase to the accumulated surplus was mostly a result of the City selling valuable, non-renewable assets (land sales), which is not sustainable over time.

Page 31
The City recognized that amenities and infrastructure provided by either developers or funded from finite revenues such as land sales, were not sustainable asset funding strategies.

PoMo Annual Report, 2012 (published 2013)

Message from the Mayor (Mike Clay)
Page 3
The asset levy and the asset reserve have both been increased to ensure the funds are available for replacing our assets without having to borrow. The fire hall debt was increased as planned by $3 million in 2013 for a total of $9 million in debt levy to be borrowed over the next 30 years.

Paul Rockwood, Chief Financial Officer
Page 25
The City had established an Asset Renewal Levy as a part of a long term strategy to provide sustainable capital funding to replace and maintain critical infrastructure. In 2012, the levy was again increased in line with the strategy to meet annual capital needs.

Page 39
Financing capital improvements through debt is an important consideration and a standard funding practice utilized by all municipalities, especially as cities become built out and the more traditional methods of financing through land sales and developer contributions are not as prevalent.

Page 41
The City recognized that amenities and infrastructure provided by either developers or funded from finite revenues such as land sales was not sustainable asset funding strategies. In 2012, the City reaffirmed its strategy to build sustainable asset funding into its base budget by increasing funding for the dedicated Asset Renewal Levy.

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Public awareness is very important!  Attend the open house, review the information, ask questions, and provide your feedback.

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2 Responses to Port Moody 2012 Annual Report: Land sales (finite revenues) not sustainable asset funding strategies

  1. Pat says:

    Flip flop. Why?

  2. ray burr says:

    Something to think about the next time you Mr. mayor and the Counsellors vote on densification.
    A MAN CEASES TO BE A TRUE PUBLIC SERVANT IF HE LINES HIS POCKETS WITH THE SPOILS OF OFFICE OR IF HE PLACES PERSONAL AMBITION ABOVE THE COMMON GOOD

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