TAMRMS#: B06
5.1
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CAO Presentation of the Proposed Financial Plan and 2024 Budget
Presented by: William (Bill) Fletcher, Chief Administrative Officer
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RECOMMENDED MOTION(S)
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That the proposed City of St. Albert financial plan and 2024 budget be received as information and referred to the Committee of the Whole.
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PURPOSE OF REPORT
This report presents the Proposed Financial Plan and 2024 Budget for Council’s review, deliberation, and consideration of approval.
BACKGROUND AND DISCUSSION
The Municipal Government Act (MGA) requires a Council to adopt operating and capital budgets each year. The City’s business planning and budget process is a comprehensive undertaking that is guided by the Community Vision, Council’s Strategic Plan and the Services and Service Levels Inventory, to help ensure the plan and budget reflect needs and priorities identified by the community.
Like other municipalities in Alberta, and indeed across Canada, we continue to face significant inflationary pressures and reduced provincial capital grant funding while adjusting to decreased revenue in transit and recreation, reflecting changes in resident’s choices and lifestyles. As well, our city continues to grow both in terms of our population and expand geographically. St. Albert continues to be a desirable place to live, and this is a direct result of the excellent work Administration has done to bring Council’s vision to life and our employees’ dedication to delivering the services and programs upon which our residents rely.
The proposed 2024 budget focuses on maintaining the high standards expected for delivery of programs and services to the community, while responding to community growth. It emphasizes the need to invest in the future by enabling non-residential development, diversifying revenue and increasing connectivity throughout our city, to include growth areas. Our City remains dedicated to fiscal responsibility by constantly seeking opportunities for improvement, targeted investment in priority areas, and sound resource and financial management for the betterment of our residents, individually and collectively
In developing the 2024 proposed budget, Administration was guided by Council-approved services and service levels, Council’s Strategic Plan, and our Corporate Business Plan. These plans are forward-thinking, and priority driven which ensures that we are planning for the future, while delivering essential programs and efficient, effective services to the community today.
The proposed Municipal Operating Budget is $134.1 million, which yields an overall average municipal property tax increase of 5.5 per cent.
The proposed 2024 operating budget includes 17 new budget requests with no impact to taxes. These requests are to address the needs in some of the key service areas, maintain service delivery, and support projects that advance Council’s priority areas.
The proposed Municipal Capital Budget of $41.5 million includes 25 capital charters (requests for funding) focusing on repairing, maintaining and/or replacing existing municipal infrastructure, and 18 capital charters that address community growth.
The proposed Utility Operating Budget includes 5 new business cases to address required capacity to maintain delivery of utility services. The proposed monthly utility bill will yield an average increase of 7.2 per cent or a change of $10.44 per month compared to last year.
The proposed Utility Capital Budget of $22.4 million includes 13 capital charters focusing on repairing, maintaining and/or replacing existing utility infrastructure and 1 capital charter that addresses community growth.
In the near term, Administration will continue the priority work to implement Council’s priority of achieving long-term financial sustainability by proactively pursuing opportunities to diversify the City’s tax assessment base, primarily through the buildout of the Lakeview Business District. This will directly contribute to the maintenance of services and service levels to the community now and into the future.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
After this presentation, the 2024 Proposed Budget will be available for viewing on the City Website www.budget.stalbert.ca.
The following engagement opportunities will be available to gather community input:
From October 24 through November 7 a Cultivate the Conversation site will gather resident input on proposed budget and service provision. Findings will be shared with Council via slot memo by the end of the month.
IMPACTS OF RECOMMENDATION(S)
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.
The 2024 RMR (Repair, Maintain, Replace) budget was reviewed and approved by Council in June 2023. RMR capital charters support the maintenance of service levels. Capital projects relating to growth are reviewed during the budget deliberations.
The 2024 Growth budget for TRAN-004 Transit Growth Busses was reviewed and approved by Council in August 2023.
Compliance & Legal:
The MGA requires that Council adopt annual operating and capital budgets. The City follows Public Sector Accounting Standards (PSAB).
Program or Service:
The proposed Financial Plan and 2024 Budget form the basis of the City’s financial operations. The budgets support maintaining services and service levels, growth and strategic initiatives and investments based on the current Corporate Business Plan and the Services and Service Levels Inventory.
Organizational:
The proposed budget includes several business cases that will provide required resources to address capacity in some of the key service areas. These resources will help ensure that Council approved services and service levels can be maintained.
Risks
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ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
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ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Capital and Operating Budgeting - Stewardship of development of annual Capital and Operating Budgets for Municipal and Utility operations - Municipal/Utility Operating Budget Development and Multi-Year Operating Budget Submissions.
Business and Financial Analysis - Service Prioritization and Analysis - Priority Based Planning and Budgeting - Provision of services to assist Administration in prioritizing and analyzing services for decision making.
Strategic and Business Planning - Corporate Alignment and Planning - The City plans according to the City of St. Albert Strategic Framework Policy to align the City's short, medium and long-term operational efforts to the Community Vision and Pillars of Sustainability, and the City of St. Albert Council Strategic Plan. This includes the use of the Services and Service Levels Inventory as a basis for development of proposed budget to maintain Council approved services and service levels.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Sections 242 and 245 of the Municipal Government Act provide that a Council must adopt both an operating budget and a capital budget for each calendar year.
Section 283.1(2) also requires a municipality to prepare a written plan respecting its anticipated financial operations over a period of at least the next 3 financial years.
IMPACTS OF ALTERNATIVES CONSIDERED
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Report Date: October 24, 2023
Author(s): Darija Slokar, Manager, Strategic Services and Suzanne Findlay, Manager, Financial Services
Department: Finance and Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Bill Fletcher