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

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 direction. • The Budget implements the course of direction for 2020 and beyond. 2020 Budget Presentation 2

• 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 2020 Budget Presentation 3

2020 Budget Presentation 4

Long ‐ Term Financial Health Framework 2020 Budget Presentation 5

Public Participation Highlights • 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. 2020 Budget Presentation 6

Public Participation Highlights 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. 2020 Budget Presentation 7

Public Participation Highlights 2020 Budget Presentation 8

2020 Budget Presentation 9

Council’s Budget Guideline Highlights • 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 2020 Budget Presentation 10

2020 Budget Guideline Considerations Uncertainties: • National and provincial economic conditions • Impacts from Federal and/or Provincial elections • Factoring in a decline or loss of provincial long ‐ term funding 2020 Budget Presentation 11

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 2020 Budget Presentation 12

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 2020 Budget Presentation 13

Capital Budget 2020 Major Capital Ma al Pro Projects 2020 2020 ($M) ($M 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 Total 17.955 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 2020 Budget Presentation 14

10 Year Capital Plan – Strategic Direction $181M Total Projects TIM TIMELIN LINE 2020 2020 2021 2021 2025 2025 2026 2026 2028 2028 2029 2029 2022 2022 2023 2023 2024 2024 2027 2027 $93.2M Provide Quality Infrastructure $0.1M PROJECTS Foster Economic Vitality $69.1M Manage Community Growth CAPITAL PR $2.6M Promote Environmental Excellence $1.8M Provide Strong Governance CAPI $9.9M Strengthen Health & Safe Community $3.9M Enhance Organization Excellence 2020 Budget Presentation 15

2020 Capital Plan Sanitary System Projects 2020 Budget Presentation

2020 Capital Plan Transportation Projects 2020 Budget Presentation

2020 Capital Project Funding 2020 CAPITAL PROJECT FUNDING 2019 CAPITAL PROJECT FUNDING Grants Reserves 13% 17% Grants Reserves 24% 29% Offsite Levies/Debt 70% Grants Offsite Levies/Debt Reserves Offsite Levies/Debt 47% Grants Offsite Levies/Debt Reserves 2020 Budget Presentation 18

2020 Capital Financial Strategy 2020 Financing $17.95M Grants: $2.03M Reserve: $3.20M 2019 Financing $19.04M Utilities Offsite Grants Levies/Debt: Grants: $4.63M $8.59 M Reserve Utilities Offsite Levies/Debt: Transportation Offsite $11.740 M Grants Levies Utilities Offsite Reserve Levies/Debt Transportation Transportation Offsite Offsite Levies: Levies $0.98M Utilities Offsite Reserve: Levies/Debt $5.55M Transportation Offsite Levies: $0.27M 2020 Budget Presentation 19

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. 2020 Budget Presentation 20

Debt & Town Debt Maximum Limit 2020 Budget Presentation 21

Debt Servicing & Maximum Limit 2020 Budget Presentation 22

Reserves Review Draft only. Subject to change as requested from Council 2020 Budget Presentation 23

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 (Draft only Draft only. subject to Subject to Expense 55.89 55.57 56.03 56.34 57.05 change for change as Council requested Excess Revenues 6.71 8.14 9.82 11.66 13.41 requested from Council over Expenditures changes ) Debt Principal 3.48 1.27 1.50 1.39 1.16 Transfers to (from) 1.76 6.69 7.71 9.00 10.46 Capital Reserves Transfers to/(from) 1.47 0.18 0.61 1.27 1.79 Operating Reserves 2020 Budget Presentation 24

Operating Budget: Revenue & Expense Summary 2020 ($M) Category Total Utility Tax Revenue 62.60 14.75 47.85 Draft only. Subject to Expense 59.37 10.19 49.18 change as requested Sub ‐ Total 3.23 4.56 ‐ 1.33 from Council Reserves 3.23 2.90 0.33 Net ‐ 1.66 ‐ 1.66 2020 Budget Presentation 25

Comparison: Total Revenue by Category 2020 to 2019 ($M) Draft only. Subject to change as requested from Council 2020 Budget Presentation 26

Comparison: Total Expenditures by Category 2020 to 2019 ($M) Draft only. 2020 EXPENDITURES $62.6M Debt & Reserves: Subject to $6.71M; 11% Contracte Utilities: $3.31M; Contracted & General d & change as 5% Services: $15.56M, General requested 25% Services from Council Long Term Long Term Interest Interest: $0.63M; 1% Bank Materials, Charges & Goods, Short Term Materials, Goods, Supplies Investment: Supplies: $3.3M; $0.08M; 0% 5% Other Expenditu Other Expenditures: res $0.35M; 1% Salaries, Wages, Purchases from other Govt's: $5.18M; 8% Benefits: $27.48M; 44% 2020 Budget Presentation 27

Operating Budget: Total Expenditure by Division 2020 ($M) EXPENDITURES $62.6M Major Project Support: $3.23M Community Services Debt Principal Payments: Water, Sewer & Waste Mgmt $3.48M Development Services: Protective Services $4.65M Administration Community 6% Services: $12.77M Operations & Infrastructure 5% Development Services 7% 20% Major Project Support Debt Principal Payments Operations & Infrastructure: $9.23M 15% 13% Utilities: $8.04M Draft only. Subject to 17% 17% change as requested Administration: Protective Services: $10.90M $10.31M from Council 2020 Budget Presentation 28

Operating Budget Highlights $3.86 Per Pe 2.00% Month Mon PROPOSED MUNICIPAL PROPOSED TAX PROPERTY TAX INCREASE FOR A TYPICAL DWELLING INCREASE (excluding requisitions) RESIDENTIAL AVERAGE 2020 2019 (based on assessed value of $450,000) TOTAL MUNICIPAL TAXES $2,373 $2,327 (excluding requisitions) 2020 Budget Presentation 29

Budget Detail by Division: Utilities 2019 Community Utility Rate Comparison *Bi-Monthly and based on 38m3 of water consumption. 2020 Budget Presentation 30

Draft only. Subject to change as requested from Council 2020 Budget Presentation 31