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Preliminary Operating Budget 2013 Preliminary Operating Budget City of Winnipeg 2013 - 2015 Preliminary Operating Budget WINNIPEG, MANITOBA, CANADA To obtain copies of this document, please contact: The City of Winnipeg City Clerks Department Council Building, 510 Main Street Winnipeg, Manitoba R3B 1B9 Telephone Number: 311 Toll Free : 1-877-311-4WPG(4974) City of Winnipeg website: www.winnipeg.ca Table of Contents Overview 2013 – 2015 Preliminary Operating Budget Presentation ....................................................... 1 Socio-Economic Information ................................................................................................. 15 OurWinnipeg ......................................................................................................................... 21 Budget Process ..................................................................................................................... 24 Financial Management Plan Update ..................................................................................... 26 Financial Summary ........................................................................................................................... 1 Infrastructure Renewal and Public Works ...................................................................................... 3 Property and Development ............................................................................................................ 77 Protection and Community Services .......................................................................................... 111 Executive Policy ............................................................................................................................ 183 Appendices Appendix 1 - Financial Summary Tax Supported ......................................................................................................................... 1 Utility Operations ..................................................................................................................... 9 Special Operating Agencies ................................................................................................. 15 Appendix 2 - Grants ....................................................................................................................... 19 Appendix 3 - Reserves .................................................................................................................. 23 Appendix 4 - Tax Supported Transfers from Other Funds ......................................................... 25 Appendix 5 – 2013 Operating Budget Reconciliations Restatement of 2012 Adopted Operating Budget ................................................................. 27 Transfer to Capital ................................................................................................................. 28 Variances Net of Transfer to Capital ..................................................................................... 29 Appendix 6 - Schedule of Fees and Charges ............................................................................... 31 Appendix 7 - 2013 Advertising reductions ................................................................................... 35 Appendix 8 - 2013 Consulting reductions .................................................................................... 37 Appendix 9 - Local Street Renewal Reserve ................................................................................ 39 1 Table of Contents (con’t) Appendix 10 - Destination Marketing Fund .................................................................................. 41 Appendix 11 - Services by Policy Area ......................................................................................... 43 Appendix 12 - Operating Budget Recommendation No. 17 - Miscellaneous Plan No.14193 ... 45 Appendix 13 - 2012 Consolidated Budget .................................................................................... 47 2 Letter from the Mayor and the Chairperson of the Standing Policy Committee on Finance January 9, 2013 TO ALL MEMBERS OF COUNCIL Re: Preliminary 2013 Operating Budget and Financial Plan for 2014 and 2015 Today we are pleased to table the Preliminary 2013 to 2015 Operating Budget. This three-year financial plan sets the future direction for our City. Today is also the first time we are tabling both operating and capital budgets together. A combined tabling of the budget documents allows a better integration and streamlining of the budget process. This approach facilitates an earlier adoption of the operating budget. This budget focuses on Winnipeggers’ priorities: public safety and city streets. The Police Service and Fire Paramedic Service budgets for 2013 are a combined $406.2 million, or 44% of the City’s tax supported budget. This investment is an increase of $31.3 million compared to 2012, and adds resources for an additional ambulance and 12 paramedics as well as 10 communications/dispatch staff. In order to increase capital investment in local streets, we are establishing the new Local Street Renewal Reserve. A 1% tax increase will fund this new reserve to ensure an annual dedicated funding stream for local streets. The Public Works Department budget is $182 million in 2013, an increase of $12.9 million compared to last year. This departmental budget also includes an enhanced management program for Dutch Elm Disease (DED) to protect the City’s elm tree canopy. The proposed program effectively doubles the annual DED budget and is subject to matching funding from the Province. In addition, this budget continues the phase in of a 1 in 10 year pruning cycle with a $250,000 increase every year. Winnipeg continues to have property taxes well below the average of Canadian cities. In order to address our inflationary pressures and service costs, a 2.87% tax increase is also included in the 2013 operating budget. Important investments in front line service departments include $111.1 million for Community Services and $42.2 million for Planning, Property and Development. Included in the latter budget is an increase of $500,000 to improve permit turn-around time. We continue to support the needs of taxpayers and the community through these services. The City’s operating grant to the Assiniboine Park Conservancy has been maintained at $11.867 million in 2013, this is in addition to the significant capital funding also provided. Recognizing that the City must deliver services as effectively and efficiently as possible, the City will accelerate the Alternative Service Delivery (ASD) review and implementation process. Approximately $2 million has been set aside as a corporate ASD savings target in each year. 3 Consistent with previous years, we want to continue to foster new business and provide real opportunity in our City. The Small Business Tax Credit will be maintained at the 2012 level to provide a full rebate of municipal business tax for the City’s smallest businesses. All businesses with an annual rental value of $22,680 or less (41.4% of businesses) will receive a tax credit reducing their business tax to zero. The Transit program has increased to $168.8 million in 2013, requiring a City contribution to Transit of $45.8 million. The City’s Water, Sewer and Solid Waste utility operations include ongoing initiatives such as Council’s waste minimization program and phasing in changes due to environmental and legislative requirements. These programs are a significant part of the budget tabled today. The City recognizes the longstanding funding received from the Province for operating priorities. Unfortunately, future budget challenges require new funding models and new revenue streams, including growth revenues, to ensure long term financial sustainability for our City. We believe this budget is a responsible and balanced approach to create a strong foundation going forward. We invite all Councillors and citizens to continue the discussions to finalize this 2013 budget and the financial framework for future years over the next number of weeks. Respectfully submitted, Sam Katz, Mayor Russ Wyatt, Deputy Mayor, and Chairperson, Standing Policy Committee on Finance 4 OPERATING BUDGET RECOMMENDATIONS 1. a) That the 2013 Preliminary Operating Budget, including the budgets for reserves (Appendix 3), be approved and forwarded to all Members of Council for their review, and b) That the 2014 and 2015 projections be received as information on the preliminary financial plans for those years. 2. That the City’s mill rate be increased by 2.87% for the purpose of raising revenue as required for the annual operating estimates, and an additional 1% to be dedicated to the renewal of local streets, lanes and sidewalks, resulting in a 2013 mill rate of 14.600. 3. a) That a new Local Street Renewal Reserve be established in accordance with Section 289 of the City of Winnipeg Charter, b) That the Director of Public Works be the Fund Manager, c) That the purpose of the reserve be to increase funding for the renewal of local streets, lanes and sidewalks, d) That the funding source be dedicated property tax revenue transferred from the General Revenue Fund, and e) That a 2/3 vote of Council is required in order for the use of funds to be other than those stipulated. Note: A long term proposal for sustainable funding for the renewal of local streets is included in Appendix 9. 4. a) That the City’s business tax rate remain unchanged at 5.9% for 2013; and b) That Council enact the attached Small Business Tax Credit by-law under
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