LONG TERM FINANCIAL PLAN Implements Responsible Financial - - PowerPoint PPT Presentation

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Nov 24, 2022 454 likes •622 views

LONG TERM FINANCIAL PLAN Implements Responsible Financial Management as directed by the Strategic Plan Creates funding certainty and transparency for citizens, Open Governance and decision-making improvements Guides a comprehensive

SLIDE 1

LONG TERM FINANCIAL PLAN

Implements Responsible Financial Management as directed by the Strategic Plan
Creates funding certainty and transparency for citizens, Open Governance and decision-making improvements
Guides a comprehensive sustainable financial management approach to Policy & Procedure
Takes a long horizon perspective to provide sustainable funding to existing programmes and services
Directly supports the statutory requirement in the MGA of three year operational and five year capital budgets
Eliminates wide fluctuations and spikes in property taxes to create predictable revenues and programme funding
Achieves new funding models to end or substantially reduce subsidies on fee based programmes and services

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2020-2022 Draft Budget

December 11, 2019

SLIDE 3

Taxation History

2019 2018 2017 2016 2015 2014 2013 Residential

6.099 5.803 5.532 5.476 5.0557 5.825 5.81 $1,830 $1,741 $1,660 $1,643 $1,517 $1,748 $1,743

Non - Residential

7.289 6.816 6.376 6.251 6.312 6.474 6.465 $2,187 $2,045 $1,913 $1,875 $1,894 $1,942 $1,940

Since 2013 Residential Taxes Have Increased $87.00 which is an AVERAGE of $12.42/Year (.8% annually) or $1.03/Month

SLIDE 4

Mill Rate Adjustment History

.8 %

Average Annual Residential Tax Increase

ver 7 Years

2013 Mill Rate 5.81 Residential Mill Rate 2019 Mill Rate

6.099

2013

2019

SLIDE 5

Residential/Non-Residential Tax Allocation

2019 Long Term Financial Plan Assessment Taxation Assessment Taxation Residential 84% 81% 84% 76% Non Residential 16% 19% 16% 24%

SLIDE 6

SLIDE 7

Solid Financial Strategy Summary

RESPONSIBLE FINANCIAL MANAGEMENT PREDICTABILITY OF REVENUE AND EXPENDITURES PREDICTABILITY OF TAXES SELF SUPPORTING UTILITIES EQUITY BETWEEN RESIDENTIAL AND NON-RESIDENTIAL TAXES RESERVES TO SUPPORT INFRASTRUCTURE PARTNER FUNDING MODELS FOR FACILITIES, PROGRAMS & SERVICES

SLIDE 8

DRAFT BUDGET HIGHLIGHTS

CAPITAL BUDGET OF $13,640,000

New Town Hall & Strathmore Commons
Fire Engine Replacement
Infrastructure Renewal

BALANCED OPERATIONAL BUDGET OF $37,744,000 CONTRIBUTION TO RESERVES FOR LONG TERM FISCAL SUSTAINABILITY

SLIDE 9

2020 Budget Pressures: Cost Increases/Revenue Decreases

Expense: Increase:

RCMP Contract $145,000 Utilities (Natural Gas, Electricity, Garbage) $203,564 Interest on LT Debt and Principle Payments $585,000 Requisitions $260,828 Janitorial $57,265 Insurance $26,569 Salaries, Wages & Benefits (Fire, WCB) $385,790 Grants to Organizations $59,500 Transfer From Reserves $318,072 Government Grants $72,000 Revenue Decrease: Interest Income Drop $123,330 Revenue Decrease Licenses & Permit $112,000

Total $2,349,118

SLIDE 10

Cost Savings, Efficiencies & Effectiveness

Budget Areas Savings Found Conferences: $32,520 Business Travel & Events: $23,177 Repairs & Maintenance: $202,505 Contracted Services: $335,777 Advertising & Promotion: $75,561 Printing & Binding: $30,000

Total $785,890

Council Budget Has Also Been Reduced by 15%

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2020 BUDGET PRESSURES RECREATION FACILITY SUBSIDIES

2018 Operating Subsidies for the Family Centre, Aquatic Centre & Civic Centre was $2.8 million 2019 Operating Subsidies for the SMP Sports Centre, Family Centre, Aquatic Centre & Civic Centre was $3.2 million 2020 Operating Subsidies for the SMP Sports Centre, Family Centre, Aquatic Centre & Civic Centre was $3.2 million

25 CENTS OF EVERY TAX DOLLAR COLLECTED SUBSIDIZES RECREATION

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2020 PROPOSED CAPITAL BUDGET

Administration $6.8 Million

Municipal

building

FF&E

Fire & Emergency Services $850,000

Engine 2 replacement
Equipment

Recreation & Culture $4.0 Million

Strathmore commons
Equipment & Building

maintenance

Pathways (new &

repairs) Utilities $1.5 million

Strathmore Lakes

repairs

Lift station upgrades
WWTP aeration

system

Equipment

upgrades/repairs Roads $450,000

Centre street upgrade
Engineering for capital

projects

Wheel chair ramp

program

Crosswalk program

Common Services $70,000

Attachments

for equipment

SLIDE 13

2020 REVENUE BY CATEGORY

Property taxes 50% User fees sales

f goods

42% Government transfers for

perating

3% Other revenues 2% Licences and permits 2% Investment Income 1%

SLIDE 14

2020 EXPENSES BY CATEGORY

Salaries, wages and benefits 31.0% Contracted and general services 25.6% Materials, goods, supplies and utilities 9.5% Interest on long term debt 4.9% Requisitions 13.9% Other expenditures 2.6% Transfers to Individuals and

rganizations

0.7% Transfers to local boards and agencies 0.2% Bank charges and short term interest 0.1% Amortization of tangible capital assets 11.5%

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2020 OPERATIONAL BUDGET

Council 0.9% Administration 13.8% RCMP 6.4% Fire 4.3% Emergency Services 0.6% Municipal Enforcement 1.4% Common Services 6.2% Roads 9.1% Storm Sewer 1.2% Water 10.9% Sanitary Sewer 9.7% Garbage 2.5% FCSS 1.3% Cemetery 0.2% Planning & Development 2.8% Handibus 0.9% Community Development 0.8% Recreation 10.9% Community Facilities & Functions 2.2% Requisitions 13.9%

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Residential @ 4.9% Assessed Value: $300,000 2019 Taxes: $1830.00 2020 Taxes: $1920.00 Yearly Increase: $89.67 Monthly Increase: $7.47 Reserve increase: $0

RESIDENTIAL 4.9%, NON-RESIDENTIAL 6.9%

Non-Residential @ 6.9% Assessed Value: $300,000 2019 Taxes: $2,186.00 2020 Taxes: $2,336.83 Yearly Increase: $150.83 Monthly Increase: $12.57 Reserve increase: $0 Non-Residential @ 6.9% Assessed Value: $3,000,000 2019 Taxes: $21,860.00 2020 Taxes: $23,368.34 Yearly Increase: $1508.00 Monthly Increase: $125.70 Reserve increase: $0