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

Property Taxes – a historical perspective 2

Property Taxes – a historical perspective Property taxes as a percentage of household income. 3

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 4

Delivering on Council’s vision through the Strategic Plan 5

Operating Budget Highlights - Tax 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 6

Investing in our Strategic Priorities through our Operating Budget 2020-2022 Proposed Operating Budget - Strategic Plan Investments 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 2020-22 Proposed Operating Book – Page #12 7

Investing in our Strategic Priorities through the Capital Budget % of Total $ 2020- T otal $ 2023- Total 2022 2029 Total $ B udget Criteria ($000's) ($000's) ('000's) Dollars 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% 2020 – 2022 Proposed Capital Budget book Page 4 8

2020-22 Proposed Operating Book – Page #30 9

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 10

Proposed Tax increase 2020 – 2022 (for 2020) 2020 Proposed 2020 Proposed Assessment 2020 Proposed Budget Category Property Tax Net Spending ($) 1 Growth ($) 2 Property Tax (%) ($) (1,783,296) Base Budget 2,546,022 762,726 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% 2020-22 Proposed Operating Book – Page #27 11

Proposed Tax increase 2020 – 2022 (for 2021) 2021 Proposed 2021 Proposed 2021 Proposed Assessment Budget Category Property Tax Net Property Tax Spending ($) 1 Growth ($) 2 ($) (%) (1,100,000) Base Budget 1,951,450 851,450 1.1% Operating Impact of 670,716 670,716 0.8% Capital & Growth 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% 2020-22 Proposed Operating Book – Page #27 12

Proposed Tax increase 2020 – 2022 (for 2022) 2022 Proposed 2022 Proposed 2022 Proposed Assessment Budget Category Property Tax Net Property Tax Spending ($) 1 Growth ($) 2 ($) (%) (1,100,000) Base Budget 2,070,025 970,025 1.2% Operating Impact of 410,157 410,157 0.5% Capital & Growth 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% 2020-22 Proposed Operating Book – Page #27 13

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. 14

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 . 15

Changes by service areas over 2020 - 2022 Service Delivery Area 2020 ($) 2020 (%) 2021 ($) 2021 (%) 2022 ($) 2022 (%) Operating Transfers to 1,954,994 1.5% 1,088,905 1.0% 1,849,883 1.6% Capital/Reserves Parks, Recreation, Community and 1,394,479 1.1% 693,802 0.6% 264,220 0.2% Culture Transportation and Development 404,597 0.3% 399,439 0.4% 366,729 0.3% Services Waterloo Public Library 172,742 0.1% 794,117 0.7% 517,196 0.5% Fire Rescue and Municipal 374,185 0.3% 415,920 0.4% 568,254 0.5% Enforcement 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% 2020-22 Proposed Operating Book – Page #28 16

Operating Budget Highlights - Enterprise Enterprise Utility Services – 2020 Operating Budget 17

Enterprise Utility Services – 2020 Capital Budget funding 18

Enterprise Utility – Proposed rate increase 2019 2020 Increase Actual Proposed Increase (%) Rates ($) ($) ($) 6.0% City Portion of Rate - Water 0.8251 0.8747 0.0496 2.6% City Portion of Rate - Sanitary Sewer 1.1939 1.2249 0.0310 4.0% Sub-total - City Portion / m 3 2.0190 2.0996 0.0806 1.9% Region Portion of Rate - Water 1.0749 1.0953 0.0204 3.9% Region Portion of Rate - Sanitary Sewer 1.2561 1.3051 0.0490 Sub-total - Region Portion / m 3 2.3310 2.4004 0.0694 3.0% TOTAL VOLUMETRIC RATE /m 3 4.3500 4.5000 0.1500 3.4% 2019 2020 Increase Actual Proposed Increase (%) Rates ($) ($) ($) 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 19

Enterprise Utility –– Annual Household Impact of Proposed Rate increase Increase 2019 *** 2020 *** Increase over total Average Household Annual Impact ($) ($) ($) 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 **** 410.54 426.95 16.41 1.5% (Water/Sanitary) City Utilities Rate - Region Portion **** 473.63 488.50 14.87 1.4% (Water/Sanitary) 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 20

Aligning with our Long Term Financial Plan Long Term Financial Plan Projected Condition of Tax Base Assets in Budget Scenario (Status Quo) LTFP Report – CORP2019-075 pg. 10 21

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 22

Long Term Financial Plan LTFP Tax Base Infrastructure Funding Target Increase (2019-2043) 23

Capital Budget 2020 – 2022, 2023 – 2029 forecast Capital Budget Overview $294M $659M 2020 – 2022 Proposed Capital Budget book Page 11 24

Funding Overview 2020 – 2022 Proposed Capital Budget book (data) Page 15 25

Capital Investment over the 10 year period 26

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 outlining the rationale and funding strategy. This provides Council additional oversight, 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. 27

Project Classification 2020 – 2022 Proposed Capital Budget book (data) Page 5 28

Overview of Capital Budget by Department 2020 – 2022 Proposed Capital Budget book (data) Page 13 29