TAMRMS#: B06
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2018-2020 Proposed Business Plan and 2018 Budget
Presented by: Kevin Scoble, City Manager
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RECOMMENDATION(S)
recommendation
That the Proposed 2018-20 City Business Plan + 2018 Budget be received as information and referred to the Special Council meeting scheduled on Thursday, November 9th, 2017.
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PURPOSE OF REPORT
This report presents the Proposed 2018-20 City Business Plan + 2018 Budget for Council’s review, deliberation and consideration of approval. The Proposed 2018-20 City Business Plan + 2018 Budget was distributed to Council Members via the Council website prior to distribution of the is agenda report.
COUNCIL DIRECTION
On March 6, 2017 Council passed the following motion:
(AR-17-056)
That the proposed "2018 Council Budget Calendar" provided as an attachment to the March 6, 2017 agenda report titled "Budget Calendar", be approved.
On June 12, 2017 Council passed the following motions:
(AR-17-066)
That the 10 Year Municipal RMR Capital Plan, provided as an attachment to the June 12, 2017 agenda report entitled "Approval of 2018-2027 Municipal RMR Plan", be approved for planning purposes.
That Administration proceed with preparatory work towards the execution of the 2018 Municipal Capital RMR projects.
(AR-17-305)
That the 10 Year Utility RMR Capital Plan, provided as an attachment to the June 12, 2017 agenda report entitled "Approval of 2018-2027 Utility RMR Plan", be approved for planning purposes.
That Administration proceed with preparatory work towards the execution of the 2018 Utility Capital RMR projects.
On July 10, 2017 Council passed the following motion:
(AR-17-068)
That the 10 Year Municipal Growth Capital Plan, provided as an attachment to the July 10, 2017 agenda report titled “Approval of 2018-2027 Growth Plan”, as amended, be approved; and
That Administration prepare and present a funding recommendation and further recommended amendments to the 10 Year Municipal Growth Capital Plan for the 2018 budget to be included as part of the 2018-2020 Proposed Business Plan and Budget in November 2017.
BACKGROUND AND DISCUSSION
The Municipal Government Act (MGA) requires that a Council must adopt annual operating and capital budgets each year.
The City’s Proposed 2018-2020 Business Plan and Proposed 2018 Budget takes into account this requirement while ensuring the City maintains current levels of service to the community, delivers on the City's Strategic Plan, Council priorities and makes progress towards the Community Vision.
The business plan and budget are complementary, with resourcing required to support both existing service levels and new initiatives that arise from projects identified in various planning documents previously approved by Council for planning purposes, and new resource requests to accommodate growth.
In this context, Administration is proposing a Municipal Operating Budget of $103 million, which yields an overall average municipal property tax increase of 2.9 per cent. This includes five base business cases valued at $364 thousand which are needed to meet statutory/regulatory requirements and to maintain service levels. To maintain service levels into the future, Administration is proposing 20 new investments (business cases). These business cases are necessary to maintain the City’s capacity to serve a growing number of residents over a wider geographical area. The growth business cases will be funded through new residential and non-residential construction in St. Albert, which provides the City with new assessment revenue not previously received (i.e., growth paying for growth). The new assessment growth revenue is forecasted to be approximately $2.6 million for 2018.
The Proposed Municipal Capital Budget is $29 million with 32 capital charters focusing on repairing, maintaining and/or replacing existing infrastructure, and 17 capital charters that address community growth.
The Proposed Utility Capital Budget of $12.0 million to fund 11 capital charters are to focus on repairing, maintaining and/or replacing existing infrastructure, and 3 capital charters that address utility growth. To account for capital initiatives, the rates include a Supplemental Capital Contribution (SCC) fee. In addition, four new operating business cases and operating impacts from capital projects have been incorporated into the proposed rates. The proposed average monthly bill for 2018 is $147.11, an increase of 2.1 per cent from last year.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
1. The Community Satisfaction Survey took place from February 27th to March 22th. The survey is conducted biennially to gauge community opinions and perceptions about quality of life, safety, overall satisfaction with City services, facilities and service expectations. It is one of many important tools to help identify community priorities, opportunities for improvement for future planning and to benchmark with other municipalities.
A total of 400 telephone interviews took place and 593 online surveys were completed. Results of the survey where considered for development of the proposed budget, especially input for services and service levels.
2. World Cafe Discussion with residents - The facilitated discussion is being organized for November 7, 2017. For this discussion, about 40 residents are randomly invited to participate to obtain insight into community priorities for services and input into Council priorities. Input received during this session will be considered by Council during budget deliberations.
3. Community Open House is being organized for November 8, 2017 to provide the community with the proposed business plan and budget and to obtain input from the community for Council’s consideration during the budget deliberations. This is an open meeting for all community members to attend.
4. The 2018-20 Business Plan and Budget will be uploaded to the City's website after the November 6th meeting.
IMPLICATIONS OF RECOMMENDATION(S)
a) Financial:
• Consistent with Council Policy C-FS-05 Budget and Taxation Guiding Principles, using the Services and Service Levels Inventory as basis, the operating budget is developed on the principle of sustaining current programs and level of services. RMR capital charters and operating business cases support the maintenance of service levels. Recommendations for new programs and/or service level adjustments are presented as Growth business cases. Capital projects relating to growth are also reviewed during the budget deliberations.
b) Legal / Risk:
• The MGA requires that Council adopt annual operating and capital budgets.
• The City follows Public Sector Accounting Standards (PSAB).
c) Program or Service:
• The 2018 Operating, Utility and Capital budgets form the basis of the City’s financial operations. The budgets support maintaining service levels, growth and strategic initiatives directly aligned to the St. Albert Strategic Plan, and integrate Council direction that may have had implications for the planning period.
d) Organizational:
• The budget requests a moderate level of additional staff to support City services due to growth for Municipal and Utility operations.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
N/A
STRATEGIC CONNECTIONS
a) City of St. Albert Strategic Plan (Policy C-CG-02)
Pillars of Sustainability
SOCIAL - We are a friendly and inclusive community of passionate equals, where everyone feels a sense of belonging. We believe that community starts with the person next door.
ECONOMIC - We prosper and excel through a strong and diverse economy that is supported by forward-thinking commerce, outstanding local businesses and a dynamic downtown core.
BUILT ENVIRONMENT - We build our community towards the future to sustain balanced development, with a reverent eye to the past, honouring our unique settlement history and distinct identity.
NATURAL ENVIRONMENT- We protect, embrace and treasure our deeply-rooted connections with the natural environment through championing environmental action.
CULTURE - We are proud of our storied history that has fed and nurtured our festive and culturally-rich community.
Governance Strategy
Council is committed to ensuring that the City of St. Albert is a responsive, accountable government that delivers value to the community.
Service Delivery Strategy
Council is committed to ensuring that the City of St. Albert is engaging residents to identify opportunities to improve delivery of services to the community.
b) Long Term Plans (e.g. MDP, Social Master Plan, Cultural Master Plan, etc.)
• Long Term Plans Including:
• City of St. Albert Strategic Plan
• Cultural Master Plan
• Environmental Master Plan
• Recreation Master Plan
• Social Master Plan
• Economic Development Master Plan
• Red Willow Park Master Plan
• Stormwater Master Plan
• Tourism Master Plan
• Transportation Master Plan
• Utility Master Plan
• Fire Services Long Range Plan
• Public Works Long Term Department Plan
• Transit Long Term Department Plan
• Servus Place - A Plan for the Future 2013
• Information Technology Long Term Department Plan
• Management Plans
• Big Lake Basin Stormwater Management Plan
• Integrated Pest Management Plan
• Parks and Open Spaces Management Plan
• St. Albert Heritage Management Plan
c) Corporate Objectives (See Corporate Business Plan)
• Attract and retain high quality employees
• Deliver programs and services that meet or exceed our standards
• Exercise strong fiscal management
• Ensure our customers are very satisfied
d) Council Policies, Bylaws or Federal/Provincial statutes
• City of St. Albert Strategic Plan C-CG-02
• Strategic Framework C-CG-06
• Budget and Taxation Guiding Principles C-FS-05
• Outside Agency Budget Guiding Principles C-FS-12
e) Other Plans or Initiatives (Business Plans, Implementation Strategies, etc.)
• Services and Service Levels Inventory
Report Date: November 6, 2017
Author(s): Darija Slokar
Committee/Department: Corporate Services
General Manager: Michelle Bonnici, GM of Corporate Services
City Manager: Kevin Scoble