2020 2022 Operating & Capital Budget 2023 2029 Capital - - PowerPoint PPT Presentation

2020 – 2022 Operating & Capital Budget

2023 – 2029 Capital Forecast

December 9, 2019

Presented by : Keshwer Patel Commissioner, Corporate Services, Chief Financial Officer & Treasurer

2

Property Taxes – a historical perspective

3

Property taxes as a percentage of household income.

Property Taxes – a historical perspective

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Agenda today

• 1. Operating Budget highlights

a) Tax based budget b) Enterprise (Utility) Budget

• 2. Aligning with our Long Term Financial Plan
• 3. Capital Budget highlights
• 4. An Overview of Reserves, reserve funds & Debt
• 5. Household Impact
• 6. Next Steps

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Delivering on Council’s vision through the Strategic Plan

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Funding local operations

Starting with the 2019 budget, it should be noted that:

• 64% of our budget is tax

based at $117.3 million in

• expenses. Through user

fees and other revenues, the amount funded through property taxes is $75M.

• 36% of our budget is

enterprise where the user fees and rates cover all the expenses of $64.3M

2020-22 Proposed Operating Book (data) – Page # 35

Operating Budget Highlights - Tax

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Investing in our Strategic Priorities through our Operating Budget

2020-22 Proposed Operating Book – Page #12

Strategic Priorities 2020 ($) 2021 ($) 2022 ($) TOTAL ($) Equity, inclusion and a sense of belonging 190,000 20,000 20,000 230,000 Sustainability and the environment 457,355 1,575,453 1,675,466 3,708,274 Safe, sustainable transportation 131,300 23,500 6,700 161,500 Healthy community & resilient neighbourhoods 1,168,292 841,156 751,339 2,760,787 Infrastructure renewal 2,857,438 2,290,409 2,640,958 7,788,805 Economic growth & development 270,154 9,757 78,882 358,793 Supporting the Strategic Plan Guiding Principles 380,300 324,272 125,000 829,572 Total Strategic Plan Investments 5,454,839 5,084,547 5,298,345 15,837,731 2020-2022 Proposed Operating Budget - Strategic Plan Investments

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Investing in our Strategic Priorities through the Capital Budget

2020 – 2022 Proposed Capital Budget book Page 4

Criteria

Total $ 2020- T 2022 ($000's)

• tal $ 2023-

2029 ($000's) Total $ ('000's) % of Total udget Dollars B EQUITY, INCLUSION and a SENSE of BELONGING $1,478 $1,178 $2,656 0.4% SUSTAINABILITY and the ENVIRONMENT $21,553 $22,567 $44,120 7% SAFE, SUSTAINABLE TRANSPORTATION $9,693 $18,821 $28,514 4% HEALTHY COMMUNITY and RESILIENT NEIGHBOURHOODS $38,341 $79,733 $118,074 18% INFRASTRUCTURE RENEWAL $151,286 $216,182 $367,467 56% ECONOMIC GROWTH & DEVELOPMENT $42,566 $9,565 $52,131 8% SUPPORTING the STRATEGIC PLAN GUIDING PRINCIPLES $29,101 $16,702 $45,803 7% Total Capital Budget $294,017 $364,748 $658,765 100%

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2020-22 Proposed Operating Book – Page #30

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Analysing the Budget Changes

Base budget issue paper IP1 Op impact issue paper IP2 Service level change paper IP3 Infrastructure investment IP4 All of the above found on website Budget 2020-22

2020-22 Proposed Operating Book – Page #24

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Proposed Tax increase 2020 – 2022 (for 2020)

2020-22 Proposed Operating Book – Page #27

Budget Category 2020 Proposed Spending ($) 1 Assessment Growth ($) 2 2020 Proposed Property Tax Net ($) 2020 Proposed Property Tax (%) Base Budget 2,546,022 (1,783,296) 762,726 1.0% Operating Impact of Capital & Growth 524,000 524,000 0.7% Sub-Total 3,070,022 (1,783,296) 1,286,726 1.7% Service Level Changes 788,548 788,548 1.1% Infrastructure Investment 509,825 509,825 0.7% TOTAL 4,368,395 (1,783,296) 2,585,099 3.4%

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Proposed Tax increase 2020 – 2022 (for 2021)

2020-22 Proposed Operating Book – Page #27

Budget Category 2021 Proposed Spending ($) 1 Assessment Growth ($) 2 2021 Proposed Property Tax Net ($) 2021 Proposed Property Tax (%)

Base Budget 1,951,450 (1,100,000) 851,450 1.1% Operating Impact of Capital & Growth 670,716 670,716 0.8% Sub-Total 2,622,166 (1,100,000) 1,522,166 1.9% Service Level Changes 216,727 216,727 0.3% Infrastructure Investment 916,683 916,683 1.2% TOTAL 3,755,576 (1,100,000) 2,655,576 3.3%

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Proposed Tax increase 2020 – 2022 (for 2022)

2020-22 Proposed Operating Book – Page #27

Budget Category 2022 Proposed Spending ($) 1 Assessment Growth ($) 2 2022 Proposed Property Tax Net ($) 2022 Proposed Property Tax (%)

Base Budget 2,070,025 (1,100,000) 970,025 1.2% Operating Impact of Capital & Growth 410,157 410,157 0.5% Sub-Total 2,480,182 (1,100,000) 1,380,182 1.7% Service Level Changes 106,114 106,114 0.1% Infrastructure Investment 1,356,536 1,356,536 1.6% TOTAL 3,942,832 (1,100,000) 2,842,832 3.4%

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Our tax increases – a brief reflection

Base budget increases + Operating Impact of Capital increases have stayed close to inflation. 2020 – 2022 increases are also projected to be around the current inflation.

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Our tax increases – a brief reflection

Increases above inflation in the proposed 2020 – 2022 budget relate to service level changes and increased investment in infrastructure.

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Changes by service areas over 2020 - 2022

2020-22 Proposed Operating Book – Page #28

Service Delivery Area 2020 ($) 2020 (%) 2021 ($) 2021 (%) 2022 ($) 2022 (%) Operating Transfers to Capital/Reserves 1,954,994 1.5% 1,088,905 1.0% 1,849,883 1.6% Parks, Recreation, Community and Culture 1,394,479 1.1% 693,802 0.6% 264,220 0.2% Transportation and Development Services 404,597 0.3% 399,439 0.4% 366,729 0.3% Waterloo Public Library 172,742 0.1% 794,117 0.7% 517,196 0.5% Fire Rescue and Municipal Enforcement 374,185 0.3% 415,920 0.4% 568,254 0.5% Facility Design and Management 455,765 0.4% 145,479 0.1% 172,892 0.2% Civic Administration (388,367)

• 0.3%

217,914 0.2% 203,658 0.2% TOTAL 4,368,395 3.4% 3,755,576 3.3% 3,942,832 3.4%

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Enterprise Utility Services – 2020 Operating Budget

Operating Budget Highlights - Enterprise

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Enterprise Utility Services – 2020 Capital Budget funding

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Enterprise Utility – Proposed rate increase

Rates 2019 Actual ($) 2020 Proposed ($) Increase ($) Increase (%) City Portion of Rate - Water 0.8251 0.8747 0.0496 6.0% City Portion of Rate - Sanitary Sewer 1.1939 1.2249 0.0310 2.6% Sub-total - City Portion / m3 2.0190 2.0996 0.0806 4.0% Region Portion of Rate - Water 1.0749 1.0953 0.0204 1.9% Region Portion of Rate - Sanitary Sewer 1.2561 1.3051 0.0490 3.9% Sub-total - Region Portion / m3 2.3310 2.4004 0.0694 3.0%

TOTAL VOLUMETRIC RATE /m3 4.3500 4.5000 0.1500 3.4%

Rates 2019 Actual ($) 2020 Proposed ($) Increase ($) Increase (%) City Stormwater - Res Medium / month 11.92 12.75 0.83 7.0% City Service Fee - 15mm Meter / month 3.20 3.26 0.06 1.9%

TOTAL FIXED FEES / MONTH 15.12 16.01 0.89 5.9%

City Utilities – 2020 Rate report – Page #9

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Enterprise Utility –– Annual Household Impact of Proposed Rate increase

Average Household Annual Impact 2019 *** ($) 2020 *** ($) Increase ($) Increase

• ver total

cost (%) City Utilities Rate - City Stormwater * 142.31 152.17 9.86 0.9% City Utilities Rate - City Water Service Fee ** 38.33 39.06 0.73 0.1% City Utilities Rate - City Portion **** (Water/Sanitary) 410.54 426.95 16.41 1.5% City Utilities Rate - Region Portion **** (Water/Sanitary) 473.63 488.50 14.87 1.4% TOTAL COST 1,064.81 1,106.68 41.87 3.9% * Residential Medium Tier ** 15mm Water Service Charge *** Effective date of Feb. 1 for 2019-2020 rates **** Using average consumption - 17m3/month

City Utilities – 2020 Rate report – Page #11

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Long Term Financial Plan

Projected Condition of Tax Base Assets in Budget Scenario (Status Quo)

LTFP Report – CORP2019-075 pg. 10

Aligning with our Long Term Financial Plan

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Long Term Financial Plan

Projected Condition of Tax Base Assets with 2020-2022 Increased Infrastructure Funding Included (Proposed Budget)

LTFP Report – CORP2019-075 pg. 12

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Long Term Financial Plan

LTFP Tax Base Infrastructure Funding Target Increase (2019-2043)

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Capital Budget Overview

$294M $659M

2020 – 2022 Proposed Capital Budget book Page 11

Capital Budget 2020 – 2022, 2023 – 2029 forecast

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Funding Overview

2020 – 2022 Proposed Capital Budget book (data) Page 15

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Capital Investment over the 10 year period

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Capital Classification

The Routine and Non–routine project classifications were introduced in 2015 and have provided significant efficiencies for both Council and staff, by allowing lower value and “business as usual” projects to proceed expeditiously. Routine projects may proceed once the budget has been approved by Council, on February 10, 2020. Non-routine projects return to Council after budget day with a formal report

• utlining the rationale and funding strategy. This provides Council additional
• versight, and the opportunity to review and consider further project detail for

these projects that are of high interest or financially material, before they move forward.

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Project Classification

2020 – 2022 Proposed Capital Budget book (data) Page 5

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Overview of Capital Budget by Department

2020 – 2022 Proposed Capital Budget book (data) Page 13

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Operating Impact of Capital Budget

COMMITTED – Operating Impact of projects approved in 2019 $1.1M ACTIONABLE – Operating Impact of projects budgeted in 2020-2022 $2.6M FORECAST – Operating Impact of projects budgeted in 2023-2029 $6.2M Total Operating Impact of Capital over 10 year projection $9.9M

2020 – 2022 Proposed Capital Budget book Page 65

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Overview of Reserve & Reserve funds

2020 – 2022 Proposed Capital Budget book (data) Page 79

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Debt / Borrowing

2020 – 2022 Proposed Capital Budget book Page 96 & 97

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Debt / Borrowing

2020 – 2022 Proposed Capital Budget book Page 104

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Household Impact of Proposed 2020, 2021, 2022 budget

2020-22 Proposed Operating Book – Page #31 $ Impact % Impact $ Impact % Impact $ Impact % Impact *Property Tax Increase - City of Waterloo 44.43 $ 3.4% 44.62 $ 3.3% 47.13 $ 3.4% **City Utilities Increase to Average Household - City Portion 27.00 $ 27.09 $ 23.39 $ Total Increase to Average Household - City of Waterloo 71.43 $ 71.71 $ 70.52 $ City Utilities Increase to Average Household - Region Portion 14.87 $ 18.47 $ 20.29 $ Total Annual Increase to Average Household 86.30 $ 90.18 $ 90.81 $

** Based on average water consumption of 17 m3 per month ** Based on Medium Residential Stormwater Category

2020

* Based on 2019 average assessed value of $394,400 as provided by the Region of Waterloo

2021 2022

2020-2022 Approved Operating Budget Annual Impact per Average Household

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Comparison with our peers

2020-22 Proposed Operating Book – Page #33-34

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Property taxes as a percentage of household income.

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Next Steps

Public Engagement survey

Dec 10 to January 11, 2020

Department Business Plan Presentations

Integrated Planning and Public Works Monday, January 13, 2020 CAO, Corporate Services, Library Monday, January 20, 2020 Community Services Monday, January 27, 2020

Capital Day-project classification

Monday, February 3, 2020

Budget Day

Monday, February 10, 2020

Opportunity for residents to attend these meetings and offer their perspective.

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Questions?