1 2 The City of Spruce Grove is in a time of transition and is - PDF document

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The City of Spruce Grove is in a time of transition and is shifting to operating as a mid- size city. With this shift comes a variety of opportunities and challenges that need to be addressed in the coming years. Over the past few years the City has been in the fortunate position of having a significant amount of growth. Investments and decisions were made based on our prosperity and those growth rates, including investing in capital and services that have resulted in a new Protective Services building, a new RCMP facility through a partnership with the Town of Stony Plain, improved underground infrastructure and local transit, along with a variety of service enhancements to our community. However, growth rates have now slowed down and the City’s debt servicing costs, combined with inflation, added staffing requirements to respond to previous years’ growth, and launching a local transit service, have had a significant impact on the financial position. The City’s financial position presents challenges and changes to the current financial trajectory need to be implemented. As a result, Administration recommends that 2020 be a reframing year where Administration will confirm fiscal philosophies, align planning processes and review service delivery in response to Council’s strategic direction. The 2020 -2022 Recommended Corporate Plan was built with this change in strategy and direction in mind and it represents only what Administration believes is critical to proceed in 2020. 3

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Our capital budget represents 27% of the overall budget or $32.3 million dollars. Our operating budget makes up the remaining 73%, or $86.5 million dollars. 9

The capital spending in 2020 is distributed by type of expenditure as shown in this graph. 10

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Note that the 2019 and 2020 numbers would’ve been higher had financial strategy 1 not been implemented. 14

MSI funds were used to eliminate $4.4 million of 2019 debt and $1.4 million of 2020 debt. As a result, we’ve realized $241,307 in debt service savings. The municipal fund, which by policy should be at 20%, is now at 17.58%, up from 16.8% prior to implementation of financial strategy 1. Note that the two major initiatives that are impacted by this strategy are the protective services facility and industrial water main & surface rehab initiative. 15

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