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
2020-2022 Draft Budget December 11, 2019
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
Mill Rate Adjustment History Residential Mill Rate 2013 2013 Mill Rate 2019 Mill Rate 5.81 6.099 - .8 % Average 2019 Annual Residential Tax Increase over 7 Years
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%
Solid Financial Strategy Summary EQUITY BETWEEN SELF SUPPORTING RESIDENTIAL AND UTILITIES NON-RESIDENTIAL TAXES RESERVES TO PREDICTABILITY SUPPORT OF TAXES INFRASTRUCTURE PARTNER PREDICTABILITY OF RESPONSIBLE FUNDING MODELS REVENUE AND FINANCIAL FOR FACILITIES, EXPENDITURES MANAGEMENT PROGRAMS & SERVICES
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
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
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 Council Budget Printing & Binding: $30,000 Has Also Been Total $785,890 Reduced by 15%
2020 BUDGET PRESSURES RECREATION FACILITY SUBSIDIES 2018 Operating Subsidies for the Family Centre, Aquatic Centre & Civic Centre was $2.8 million 25 CENTS OF EVERY TAX 2019 Operating Subsidies for the SMP Sports Centre, Family DOLLAR Centre, Aquatic Centre & Civic Centre was $3.2 million COLLECTED 2020 Operating Subsidies for the SMP Sports Centre, Family SUBSIDIZES Centre, Aquatic Centre & Civic Centre was $3.2 million RECREATION
2020 PROPOSED CAPITAL BUDGET Recreation & Culture Administration Fire & Emergency Services $4.0 Million $6.8 Million $850,000 • Strathmore commons • Municipal • Engine 2 replacement • Equipment & Building building • Equipment maintenance • FF&E • Pathways (new & repairs) Utilities Roads Common Services $1.5 million $450,000 $70,000 • Strathmore Lakes • • Centre street upgrade Attachments repairs • Engineering for capital for equipment • Lift station upgrades projects • WWTP aeration • Wheel chair ramp system program • Equipment • Crosswalk program upgrades/repairs
Investment Other revenues Income 2% 1% Licences and permits Government 2% transfers for operating 3% 2020 REVENUE BY CATEGORY Property taxes User fees sales 50% of goods 42%
Bank charges and Transfers to local short term interest boards and agencies 0.1% 0.2% Transfers to Individuals and organizations Amortization of 0.7% tangible capital assets Other expenditures 2020 EXPENSES BY 11.5% 2.6% CATEGORY Salaries, wages and benefits 31.0% Requisitions 13.9% Interest on long Materials, term debt Contracted and goods, supplies 4.9% general services and utilities 25.6% 9.5%
2020 OPERATIONAL BUDGET Council 0.9% Requisitions Administration Community Facilities & 13.9% 13.8% Functions 2.2% RCMP 6.4% Community Development Recreation 0.8% Fire 10.9% Emergency Services 4.3% 0.6% Handibus Municipal Common Services 0.9% Enforcement 6.2% Planning & 1.4% Development 2.8% Cemetery FCSS Roads 0.2% Sanitary Sewer 1.3% 9.1% 9.7% Garbage 2.5% Water 10.9% Storm Sewer 1.2%
RESIDENTIAL 4.9%, NON-RESIDENTIAL 6.9% Residential @ 4.9% Non-Residential @ 6.9% Non-Residential @ 6.9% Assessed Value: Assessed Value: Assessed Value: $300,000 $300,000 $3,000,000 2019 Taxes: $1830.00 2019 Taxes: $2,186.00 2019 Taxes: $21,860.00 2020 Taxes: $1920.00 2020 Taxes: $2,336.83 2020 Taxes: $23,368.34 Yearly Increase: $89.67 Yearly Increase: $150.83 Yearly Increase: $1508.00 Monthly Increase: $7.47 Monthly Increase: $12.57 Monthly Increase: $125.70 Reserve increase: $0 Reserve increase: $0 Reserve increase: $0
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