Policy 7.2.5 Incorporation Study Cost Allocations

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POLICY – 7.2.5 Incorporation Study Cost Allocations Page 1 
 
Policy: 7.2.5 
Approved By: Trust Council 
Approval Date: September 18, 1998 
Amendment Date(s):  December 4, 1998; December 6, 2012 
Policy Holder: Director of Administrative Services 
 
INCORPORATION STUDY COST ALLOCATIONS 
Purpose 
To provide the methodology for providing information about planning costs for a Local Trust Committee (LTC), 
should an Incorporation Study Committee request such information within an Incorporation Study. 
Principles 
1. to provide relevant information to a community that is considering incorporation; 
2. to ensure consistency of information for consideration by Incorporation Study Committees; 
3. to ensure procedural certainty for dealing with Incorporation Study Committee requests for information. 
 
A. Definitions 
n/a 
B. Policy 
1. Information Sections and Related Methodologies 
1.1 Cost to Islands Trust for Providing Planning Services  
One of the primary goals of an Incorporation Study is to establish the current costs for 
providing planning services to the area that is considering incorporation. However, the 
implicit goal is also to provide typical or average costs to avoid variations in particular 
costs that may be affected by events in a particular fiscal year. 
There are three planning offices in the Islands Trust organization. The current offices 
are listed below, along with the local trust committees (LTCs) that are served by each: 
 Southern Planning Office – Galiano, Mayne, North Pender, Saturna, South Pender; 
 Salt Spring Office – Salt Spring; 
 Northern Office – Denman, Gabriola, Gambier, Lasqueti, Hornby, Thetis, Executive 
(Ballenas-Winchelsea Islands). 
The planning staff in each of the three offices uses the time collection system to 
record their work activities and to identify the LTC for whom the work was conducted. 
This information is used to allocate costs for staff and facilities to LTCs in the creation 
of the Allocated Financial Statements for a particular fiscal year. 

POLICY – 7.2.5 Incorporation Study Cost Allocations Page 2 
To develop the costs for providing planning services as an input into an Incorporation 
Study, several methods are used depending on the cost item being considered: 
 Direct budgeted costs – some costs are directly allocated to an LTC, for example, 
the LTC Local Expense budget; 
 Allocated budgeted costs – costs that are provided through a planning office use 
this allocated approach. The budgeted amount is allocated to an LTC based on the 
time allocation from the most recent Allocated Financial Statements. For example, 
the staff salary and benefit costs would be allocated to an LTC in this manner; 
 Five year average of actual costs – for costs that vary widely depending on the 
activity in a particular year, a five-year average of actual costs is used. Legal costs 
for bylaw litigation are an example of when this approach would be appropriate; 
 Budget estimate – some costs that are

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