TAMRMS#: B06
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Omnibus
Notice given by: Mayor Heron
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POSTPONED MOTION:
recommendation
That Administration adjust the 2020 Municipal and Utility operating and capital budgets based on all late-breaking changes or discovered discrepancies including the following:
1. That the 2020 municipal operating budget be amended to reduce the expected revenue related to provincial offences/fines for $620,000 related to amendments to provincial regulations which changes the municipal share of fines from 73.3% down to 60%.
2. That the 2020 municipal operating budget be amended to reduce the expected revenue related to the Grants in Place of Taxes (GIPOT) program for $37,500 related to provincial budget changes to reduce these grants amount by 50% over 2 years
3. That the library be funded in the amount of $4,661,900.
4. That the Arts and Heritage Foundation be funded in the amount of $1,801,500
5. That the 2020 Family festival funding in the amount of $100,000 be discontinued and the tax rate be reduced accordingly.
6. That Administration reduce the operating budget by $200,000 , with no impacts to service levels, to offset the 2019 Provincial budget impacts.
7. That the 2020 Municipal Growth Capital recommendation of # capital growth projects be funded in the amount of $ and # projects be postponed. (the number of projects and # will be known at the end of the capital deliberations)
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POSTPONED MOTION ADMINISTRATIVE BACKGROUNDER
Administration’s Understanding of Intent Motion:
To capture all late- breaking changes or discovered discepancies that occured since the puclic release of the 2020 proposed budget.
Operational or Organizational Impacts if Motion is Approved:
None identified
Financial Implications of Motions:
If this motion passes, all financial implications described in the body of this report will be incorporated in the budget being brought to Council for approval on December 16, 2019
Stakeholder Consultations:
Background:
1. On March 24, 2019 the Government of Alberta released their 2019/2020 budget. The provincial regulation which stipulates the revenue sharing formula for provincial fines was amended to reduce the municipal revenue portion from 73.3% to 60%. This change results in an expected annual revenue reduction for the City of $620,000.
2. On March 24, 2019 the Government of Alberta released their 2019/2020 budget. The government has decided to reduce the amount of funding to municipalities for the Grants in Place of Taxes (GIPOT) program. As government buildings are exempt from municipal property taxes, this grant program was intended to fill that revenue gap however the provincial budget indicates the overall grant will be reduced by 50% over the next 2 years. The impact to St. Albert is a revenue loss of $37,500 in 2020 and an additional loss in 2021 of $37,500.
3 & 4 Budgets for the library and AHF are included in the proposed budget within a larger line item. These motions are intended to provide transpancy to the agencies themselves and the public in terms of the amount specifically allocated to these programs.
5. This was related to the 5 year ($100K/yr) funding starting in 2016 for the 3 community festivals (Eek, 7 music fest and night of artists.) Funding was set to expire at the end of 2020 however none of these festivals are going ahead this year and no other group has indicated interest. We are committed to about $10,000 for night of artists in 2020 however there is enough remaining in the reserve to cover this and no further budget allocation is required.
6. This is being put forth as an overall corporate adjustment at this time. Administration will be working with departments to determine the most strategic place for reductions that have no or limited impact to services
7. This is a clarifying motion that summarizes the results of the original proposed capital budget alongside the results of deliberation of postponed motion and provides clarity that the projects that remained on the unfunded list are "postponed" to a future year.
Report Date November 21, 2019
Author: Diane McMordie
Department: Finance & Assessment
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble