2020 Budget Presentation 1 1 The Strategic Plan is the direction - - PowerPoint PPT Presentation

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2020 Budget Presentation 1 1 The Strategic Plan is the direction - - PowerPoint PPT Presentation

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2020 Budget Presentation 1 1 The Strategic Plan is the direction set by Council that guides Administration. The Strategic Plan Implementation includes comprehensive coordinated plans detailing the organizational work to achieve the

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2020 Budget Presentation

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2020 Budget Presentation

  • The Strategic Plan is the direction set by Council

that guides Administration.

  • The Strategic Plan Implementation includes

comprehensive coordinated plans detailing the

  • rganizational work to achieve the direction.
  • The Budget implements the course of direction

for 2020 and beyond.

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2020 Budget Presentation

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  • Manage Community Growth
  • Foster Economic Vitality
  • Provide Quality Community

Infrastructure

  • Promote Environmental

Excellence

  • Provide Strong Governance
  • Maintain a Healthy and

Safe Community

  • Enhance Organizational

Excellence

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2020 Budget Presentation

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2020 Budget Presentation

Long‐Term Financial Health Framework

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  • The budget process begins each spring

with identifying budget priorities, and is finalized upon Council approval in December.

  • The portion of funding that comes

from taxes is used to build the community and is treated with care, prudence and respect.

  • It is vital that residents and

businesses have opportunities to provide feedback throughout the process.

Public Participation Highlights

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2020 Budget Presentation The 2020 Let’s Talk Budget 2020 was an online survey available to both businesses and residents for 4 weeks in May 2019.

  • Council remains committed to maintaining the high quality of life that residents enjoy and this

survey helped Town Council to be more transparent, collaborative and strategic in program and service delivery.

  • The survey focused on the operating portion of the annual budget.

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Public Participation Highlights

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2020 Budget Presentation

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Public Participation Highlights

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2020 Budget Presentation

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2020 Budget Presentation

  • 2% property tax increase for 2020 ( Council Approved on December

9,2019)

  • 2021 and beyond: residential tax increase for typical residence of 4%
  • For 2020, maintain the non‐residential tax rate ratio of 150%
  • 10 year capital plan required
  • Target service level reviews for the following areas:

I. Affordable Housing II. Parking Enforcement

Council’s Budget Guideline Highlights

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2020 Budget Presentation

2020 Budget Guideline Considerations

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Uncertainties:

  • National and provincial economic

conditions

  • Impacts from Federal and/or

Provincial elections

  • Factoring in a decline or loss of

provincial long‐term funding

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2020 Budget Presentation

Known Provincial Impacts on Budget

  • Loss of 10% of fine revenue ($0.060M)
  • Grants in Place of Taxes Impact ($0.020M)
  • Subsidies ‐ No change to FCSS and Police Grant
  • Alberta Capital Financial Authority (ACFA) Elimination
  • Municipal Sustainability Initiative (MSI) ending and a new

Local Government Fiscal Framework (LGFF) replacement

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2020 Budget Presentation

Growth Assumptions

  • 2020 – 2021 population increase:

1% per year; 2% per year after 2025

  • Development Acres

20 acres of development per year

  • Housing starts (R1 & R2):

150 per year

  • Housing starts (Multi‐family):

50 per year

  • Housing Completions (R1 & R2):

150 per year

  • Housing Completions (Multi‐family): 50 per year
  • Assessed Value:

$450,000/home, $300,000/multi‐family

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2020 Budget Presentation

Capital Budget 2020

Sub Total 17.955 Estimated Carry Forward Capital Amount 7.070 Net Pre‐approved Projects from 2019 Budget 13.738 Council Approval of Capital Project List 38.764

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Wastewater Treatment Plant Upgrade (Project 176‐178) 11.72 Solar Community Generation (Project 119) 1.50 Okotoks Community Campus (Project 135) 1.01 Northridge Drive Urbanization (T7) (Project 4) 0.75 Fleet Asset Replacement Program (Project 49) 0.56 Veteran's Way Pedestrian Corridor Phase C (T4B) (Project 65) 0.55 Information Technology Program (Project 164,165) 0.40 Deep Utility Replacement Program (Project 157) 0.35 Others 1.11

Ma Major Capital al Pro Projects 2020 2020 ($M ($M)

Total 17.955

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2020 Budget Presentation

10 Year Capital Plan – Strategic Direction $181M Total Projects

CAPI CAPITAL PR PROJECTS

TIM TIMELIN LINE

2020 2020 2021 2021 2023 2023 2024 2024 2025 2025 2026 2026 2027 2027 2028 2028 2029 2029 $93.2M Provide Quality Infrastructure $0.1M Foster Economic Vitality $69.1M

Manage Community Growth

$2.6M Promote Environmental Excellence $1.8M Provide Strong Governance $9.9M Strengthen Health & Safe Community $3.9M Enhance Organization Excellence 2022 2022 15

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2020 Budget Presentation

2020 Capital Plan Sanitary System Projects

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2020 Budget Presentation

2020 Capital Plan Transportation Projects

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2020 Budget Presentation

2020 Capital Project Funding

Grants 24% Offsite Levies/Debt 47% Reserves 29%

2019 CAPITAL PROJECT FUNDING

Grants Offsite Levies/Debt Reserves Grants 13% Offsite Levies/Debt 70% Reserves 17%

2020 CAPITAL PROJECT FUNDING

Grants Offsite Levies/Debt Reserves 18

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2020 Budget Presentation

2020 Capital Financial Strategy

Grants: $4.63M Reserve: $5.55M Transportation Offsite Levies: $0.27M Utilities Offsite Levies/Debt: $8.59 M

2019 Financing $19.04M

Grants Reserve Transportation Offsite Levies Utilities Offsite Levies/Debt Grants: $2.03M Reserve: $3.20M Transportation Offsite Levies: $0.98M Utilities Offsite Levies/Debt: $11.740 M

2020 Financing $17.95M

Grants Reserve Transportation Offsite Levies Utilities Offsite Levies/Debt 19

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2020 Budget Presentation

Capital Budget Realities

  • The Province’s newly released budget confirms that the current MSI Program

will be replaced by the Local Government Fiscal Framework. The new fiscal framework will be legislated and provide long term sustainable funding.

  • Currently the Town receives approximately $6M in MSI. Council budget

guidelines had forecasted that we would only be receiving about $3M annually.

  • Our best estimate of future MSI Capital funding is approximately $3.9M as of
  • 2022. The program allocation and methodology has not been formally

established.

  • The Town is in the process of updating its offsite levy bylaw and is in

conversations with developers about new funding and financing options. This may have impacts on future debt levels and cash flow.

  • Two (2) major capital projects account for 67% of the 2020 Capital

Expenditures.

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2020 Budget Presentation

Debt & Town Debt Maximum Limit

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Debt Servicing & Maximum Limit

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Reserves Review

Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Operating Budget: 2020 Budget with Forecast 2020 ‐2024 ($M)

Category 2020 2021 2022 2023 2024 Revenue 62.60 63.71 65.85 68.00 70.46 Expense 55.89 55.57 56.03 56.34 57.05 Excess Revenues

  • ver Expenditures

6.71 8.14 9.82 11.66 13.41 Debt Principal 3.48 1.27 1.50 1.39 1.16 Transfers to (from) Capital Reserves 1.76 6.69 7.71 9.00 10.46 Transfers to/(from) Operating Reserves 1.47 0.18 0.61 1.27 1.79

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(Draft only subject to change for Council requested changes ) Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Operating Budget: Revenue & Expense Summary 2020 ($M)

Category Total Utility Tax Revenue 62.60 14.75 47.85 Expense 59.37 10.19 49.18 Sub‐Total 3.23 4.56 ‐1.33 Reserves 3.23 2.90 0.33 Net ‐ 1.66 ‐1.66

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Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Comparison: Total Revenue by Category 2020 to 2019 ($M)

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Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Comparison: Total Expenditures by Category 2020 to 2019 ($M)

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Contracted & General Services: $15.56M, 25% Long Term Interest: $0.63M; 1%

Materials, Goods, Supplies: $3.3M; 5%

Other Expenditures: $0.35M; 1% Purchases from other Govt's: $5.18M; 8% Salaries, Wages, Benefits: $27.48M; 44% Bank Charges & Short Term Investment: $0.08M; 0% Utilities: $3.31M; 5% Debt & Reserves: $6.71M; 11%

2020 EXPENDITURES $62.6M

Contracte d & General Services Long Term Interest Materials, Goods, Supplies Other Expenditu res

Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Operating Budget: Total Expenditure by Division 2020 ($M)

Community Services: $12.77M Utilities: $8.04M Protective Services: $10.31M Administration: $10.90M Operations & Infrastructure: $9.23M Development Services: $4.65M Major Project Support: $3.23M Debt Principal Payments: $3.48M

20% 13% 17% 17% 15% 7% 5% 6%

EXPENDITURES $62.6M

Community Services Water, Sewer & Waste Mgmt Protective Services Administration Operations & Infrastructure Development Services Major Project Support Debt Principal Payments 28

Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Operating Budget Highlights

2.00%

PROPOSED TAX INCREASE

$3.86

PROPOSED MUNICIPAL PROPERTY TAX INCREASE FOR A TYPICAL DWELLING (excluding requisitions)

Pe Per Mon Month RESIDENTIAL AVERAGE (based on assessed value

  • f $450,000)

2020 2019

TOTAL MUNICIPAL TAXES (excluding requisitions) $2,373 $2,327

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2020 Budget Presentation

Budget Detail by Division: Utilities

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2019 Community Utility Rate Comparison

*Bi-Monthly and based on 38m3 of water consumption.

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Draft only. Subject to change as requested from Council

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2020 Budget Presentation

Oper Operating ing Budg Budget Hi Highli ghligh ghts ts

3% Increase for

  • Recreation fees and facility rental

rates

2.39% average increase for

  • Water
  • Sewer
  • Storm
  • Waste

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2020 Budget Presentation

Cos Cost Sa Savings, vings, Efficien ficiencie ies & Effectiv ivenes eness

Examples of Corporate Efficiencies & Effectiveness Initiatives:

  • Incorporation of a 1.4% vacancy factor to reflect historic activity
  • Use of partnerships and practicum personnel
  • Creation of numerous information technology enhancements to

assist staff with data

  • Removal of municipal census in 2020
  • Facility maintenance focused on energy efficiencies
  • Investment in equipment to provide more efficient services (garbage

collection, snow removal)

  • Aggregate futures energy procurement (electricity, natural gas and

fuel)

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2020 Budget Presentation

2020 Service Level Reviews

Service Level Review – Downtown Parking and Snow Removal

Division: Protective Services Business Centre: Municipal Enforcement Service(s) being delivered:

  • Service level reviews of enforcement for snow route maintenance and

downtown parking enforcement were completed to determine the efficiency and effectiveness of the service.

Service Level Review – Affordable Housing

Division: Development Services Business Centre: Planning Service(s) being delivered:

  • A service level review of Affordable Housing was requested by Town Council

as part of the 2020 budget guidelines.

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2020 Budget Presentation

Ra Rates & Fees ees fo for 2020 2020

  • Council direction for fees and charges is provided by the

Rates and Fees Bylaw.

  • The first reading of this bylaw was approved by Council
  • n November 25.
  • The second and third readings approved by Council on

December 9.

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2020 Budget Presentation

St Staffing fing

$24.4M 2019 2019 $27.5M 2020 2020 OUR OUR ST STAFF AFF CO CONS NSISTS TS OF OF

278 278 EM

EMPL PLOYEE EES: S:

  • 239

239 permanen permanent fu full ll‐tim time & permanen permanent part part‐tim time posi positions

  • ns
  • 39

39 non non‐perm permanen anent posi positions

  • ns

(se (season sonal, l, on

  • n‐call,

ll, te temp mpor

  • rar

ary)

FTE = Full Time Equivalent A unit of measure that is equal to the full time hours for one position

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New Positions Included FTE Budget ($M)

Financial Services

1.00

Fire Services

3.00

New FTE's for 2020

4.00 Annualized 2019 FTEs 2.70

Total New 6.70 0.617

Transfer of EPCOR employees to Town

15.0 1.703 Total 21.70 2.320

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2020 Budget Presentation

Counci Council appr approved ed Budg Budget chan changes on

  • n December

December 9,2019 2019

Council made the following Budget changes:

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 2020 Capital ‐ Project # 71: Off leash dog park for Northridge drive $0.275 M be eliminated  2020 Operating ‐ Add a new operating project for $0.080M to remove a structural post from the Piper Arena funded from the general operating reserve  Reduce 2020 Property Tax increase from 3% to 2%

  • ffset by a reduction in expenses and adjust 2021 to

2024 years for the impact

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2020 Budget Presentation

Questions?

38 Photo by Verna Thomas Photo by Stephanie Janes