Welcome to our President’s Summit

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Hashtag: #AUMAsummit

#AUMAsummit 1 Restoring the Advantage: How Municipalities & Industry Build Alberta

AUMA President’s Summit January 22 - 23, 2020

#AUMAsummit Purpose of Summit

• Demonstrate we are efficient, transparent & effective financial stewards • Build & commit to a positive path forward for all members • Support public conversation to assist a more open and constructive partnership with the province

3 Panel 1: Municipalities are Efficient & Effective Financial Stewards

• Conduct budget deliberations in public • Cannot run operational deficits • Capital borrowing limited in relation to revenue • Limited revenue options

4 Panel 2: Impact of Municipal Investments

• It’s more than roads, water, and rec centres • Investments create jobs & social benefits • Revenues from investments help fund community supports

5 Panel 3: Economic Development

• Number one priority of municipalities. • Opportunity to partner with builders, local businesses and innovators

6 What aspect of Alberta’s 2019-20 budget presents the greatest benefit for your municipality?

77%

Maintained levels of MSI was the most significant benefit for 12% 10% municipalities in 2019 2%

MSI funding Announcement of FCSS funding Other maintained at the the Local maintained at the planned level in Government Fiscal historical level 2019 Framework to start in 2022

Note: Responses to ‘Other’ consisted of proposed efforts to reduce provincial red tape associated with approvals or issues related to water and environmental protection.

7 What aspect of Alberta’s 2019-20 budget presents the greatest concern for your municipality?

68% The planned reductions to MSI in 2020 and 2021 21% present the 6% 5% greatest concern 0% for members Planned Reduction of Reduction of fine Lack of sharing Other reductions to Grants in Place revenue starting of cannabis- MSI in 2020 and of Property in 2020 related revenues 2021 Taxes funding

Note: Responses to ‘Other’ consisted of the combination of all reductions, the change in the funding process for parent link centres, changes in assessment of designated industrial property, and the changes to the police costing model.

8 Dialogue

• Open & honest dialogue • Transparent discussions • Share solutions

9 How has your sector been impacted by Alberta’s current fiscal reality? Member What initiatives have you implemented or plan to Survey implement to find cost efficiencies?

Most common examples Other cost savings • Organizational review and restructuring • Freeze employee salaries • Regional collaboration in service delivery • Increase options for part-time employment • Elimination of COLA • Lease vs. purchase options • Implement priority-based or zero-based • Centralize procurement processes budgeting • Reduce recreation services during low-use • Use of software to improve hours automation/efficiency • Change to bi-monthly billing • Increased focus on the approach to project • Eliminate dog licenses tendering • Use of solar power and LED lighting

11 Dennis Egert B.COMM, CPA COMMISSIONER, CORPORATE SERVICES, CITY OF

• Former CFO for The Monarch Corporation • Financial Controller at Dow Corporation • Audit Manager, KPMG, Germany • Former Governor, Medicine Hat College • Board member, Community Foundation of Medicine Hat & Southeastern Alberta

12 June Boyda B.SC, NACLAA L.II CHIEF ADMINISTRATIVE OFFICER, SUMMER VILLAGES OF , SILVER BEACH, & SUNDANCE BEACH

• Former Assistant CAO of Town of Millet • CAO for SV of Itaska Beach since 2006 • CAO for SVs of Sundance & Silver Beach since 2017 • Board member, Society of Local Government Managers

13 Kola Oladimeji MBA, CPA, CGA, FCA CHIEF FINANCIAL OFFICER, TOWN OF HIGH RIVER

• 7 years' experience in municipal finance • Financial leadership at Guinness & Diageo • Member of Government Finance Officers Association – US & • Distinguished Budget Award & Canadian Financial Reporting Award

14 Kinza Trimm CORPORATE EFFICIENCY & STRATEGIC INITIATIVES MANAGER, CITY OF

• Over 12 years of experience in local government • Corporate finance & admin • Lean Six Sigma Black Belt Certified

15 Panel Discussion • What strategies is your municipality implementing to respond to the new fiscal reality? Stewarding Taxpayer • What efficiencies have you found & how did you identify them? Dollars: • How are you engaging citizens in the budgeting Municipal Efficiency process? • How do you measure the overall performance of & Transparency your municipality? • How do you report to citizens on the financial health and overall performance of your municipality? • How are you planning for the future?

16 Table Discussion

Stewarding Taxpayer 1. Share examples of efficiency and Dollars: transparency in your municipality. Municipal Efficiency 2. What have you heard so far that provides the most compelling message of municipal & Transparency efficiency and transparency? 3. How can you share this message?

17 The Trickle Down: The Economic & Social Impact of Reduced Investments in Municipalities

AUMA President’s Summit January 22 – 23, 2020

#AUMAsummit Ken Gibson EXECUTIVE DIRECTOR, ALBERTA CONSTRUCTION ASSOCIATION

• ACA’s Executive Director since 2002 • ACA founded in 1959

19 Ron Glen MBA CHIEF EXECUTIVE OFFICER, ALBERTA ROADBUILDERS & HEAVY CONSTRUCTION ASSOCIATION

• Former Chief of Staff to Premier Ed Stelmach • CEO, ARHCA since 2017

20 John Ashton B.A. (POL. SCI.) EXECUTIVE DIRECTOR, ALBERTA SAND & GRAVEL ASSOCIATION

• Former Senior Associate, Alberta Counsel • Was Manager, Communications, Education & Research at AUPE • Experience as Director, Caucus Services, Alberta NDP

21 Mellissa Kraft DIP. PR, B.SC, PHEC EXECUTIVE DIRECTOR, FAMILY & COMMUNITY SUPPORT SERVICES ASSOCIATION OF ALBERTA

• Started with FCSS in Bruderheim & Viking / Beaver County in the 1990s • Formal education in family studies & PR • Leadership roles at Terra & AHS • Former Executive Director of Compassion House Foundation

22 Alberta Construction Profile

• Alberta’s construction industry • 52,000 construction firms • Contributes $27 billion to Alberta • 40% employ 20 or fewer people economy • 36% employ 21 – 100 people • 8% of GDP • 24% employ >100 people

• Construction projects • Employment • $45.3 billion underway • $1 billion invested in new buildings • Between 2015 – 2019: = 4,200 jobs • 78% civil / engineering • ~48,200 apprentices • 11% institutional • Oct 2015: 259,000 • 7% commercial • Oct 2019: 236,600 • 2% industrial • Decline of 8.6% (-22,400 jobs)

23 Alberta Construction Jobs

July 2019 Dec 2019

Banff-Jasper-Rocky Mountain House and 21100 19300 Athabasca-Grande Prairie-Peace River

Wood Buffalo – Cold Lake 9300 7300

Edmonton 94000 92700

Red Deer – Camrose – Drumheller 21100 23300

Calgary 83600 81300

Lethbridge - Medicine hat 14400 13100

24 Construction Projects

Volume of Work January 1 – 20 (2020 vs 2019) 2020 2019 Change Projects posted on BuildWorks Canada

Provincial 24 34 -29%

Municipal 48 30 +60%

All Projects 152 170 -11%

25 ARHCA Projects

• Employment by WCB Codes (2019): • 65,000 direct employees earning $4.0 billion in wages • Volume of work pre-recession: • Approximately 50:50 split between private and public sector • Private sector work decreased by 50% between 2014 - 2019 • Budget 2019 decreased spending on highway construction and rehabilitation by 40% (~$800 million) over four years • Ring Road projects are proceeding • Expecting more consolidation and insolvencies in small- and medium-size local companies this year

26 Sand & Gravel by the Numbers

• Albertans use 60 million tonnes of aggregate annually • Projected to need 1 billion tonnes to 2040 • 4,120 full-time jobs in the aggregate industry • Equivalent to the jobs created by building 1,767 houses

27 Sand & Gravel Consumption

• The core functions of municipalities rely on aggregate for maintenance & new projects. • Also critical for oil & gas, construction, & other sectors.

28 Family & Community Support Services Program

• 206 local FCSS programs • 1281 funded agencies / organizations • FCSS is available to 98% of Albertans • 1.2 million (i.e. 1 in 4) Albertans served • FCSS is prevention focused • $5 - $12 returned for every $1 invested in prevention • 50,727 volunteers = 2.3 million volunteer hours = $35 million at minimum wage

29 Panel Discussion

FOR ACA, ASGA, ARHCA: • How have your members been impacted to date and what is the outlook if municipal funding remains constrained? The Trickle Down: • What concerns do you have about the longevity The Economic & Social and safety of the roads and amenities your Impact of Reduced industry builds and maintains? Investments in • What are the long-term costs of deferring Municipalities infrastructure investments? FOR FCSSA: • What are the long-term costs and consequences of funding reductions to preventative social services?

30 Table Discussion The Trickle Down: The Economic & Social 1. What stood out the most from the panel Impact of Reduced discussion? Investments in 2. What impacts are the budget constraints Municipalities having on your community organizations and businesses?

31 Restoring the Alberta Advantage: How Municipalities & Industry Build Alberta

#AUMAsummit Patrick Shaver B.SC, M.ENG, MBA PRESIDENT, BILD ALBERTA ASSOCIATION

• Founder & President Avillia Developments • Project Manager, 2000 Summer Olympic Games • Consults to New South Wales Dept of Transportation, Australia

33 Ken Kobly CREDENTIALS GO HERE PRESIDENT & CEO, ALBERTA CHAMBERS OF COMMERCE

• President of ACC since 2005 • Board member of CGAA • Recipient Queen’s Golden Jubilee Citizenship Medal • 2018 Canadian Chamber of Commerce Executive of the year • Councillor & Mayor, Town of Beaumont

34 Christopher King EC.D, CECD PAST-PRESIDENT, ECONOMIC DEVELOPERS ALBERTA

• Manager of Economic Development, County of Grande Prairie • Certified Economic Developer • Former health region CAO & Director of Finance

35 Cheryll Watson VICE-PRESIDENT, INNOVATE

• Spearheaded global business evolution for Intuit • Launched products in India, UK, Australia, Canada, & Singapore • Setting the vision & strategy at Innovate Edmonton

36 Panel Discussion

• How has your sector been impacted by The Restoring the Alberta’s current fiscal reality? Alberta Advantage: • What municipal infrastructure investments How Municipalities & are most critical to supporting economic Industry Build Alberta development? • What social investments are most critical? • What innovative solutions can industry and municipalities implement to build Alberta?

37 Table Discussion

1. What part of the discussion resonated The Restoring the with you the most? Alberta Advantage: How Municipalities & 2. What are you doing to attract or foster Industry Build Alberta homegrown investment? 3. Where are the greatest opportunities for municipalities to support economic development?

38 What Happens Next

#AUMAsummit Taking the message forward

• Efficient & effective stewards of taxpayers’ dollars • Investments in municipalities is crucial to Alberta’s economy & society • Partners with the provincial government in boosting economic development

40 RMA reports that approximately $173 million in property taxes on oil and gas properties are currently unpaid to rural municipalities.

RMA is seeking the following changes: 1. That the MGA be updated so that oil and gas properties are subject to the same tax recovery tools, and that municipal property taxes be legally assured as a secured claim in the event of bankruptcy or receivership. 2. That unpaid property taxes be considered as grounds for the Alberta Energy Regulator to deny a license to operate in Alberta. Next steps

Submission to Premier: - efficient Communicate with Capture your thoughts - transparent citizens, MLAs, media - economic development

42 Spring Municipal Leaders Caucus

MARCH 25 & 26 WESTIN HOTEL, EDMONTON • Dialogues with Ministers • Policing • Media Panel • Partisan Politics • Red Tape Reduction • Fair Deal Panel

43 Continuing the conversation

Summer Municipal Leaders Caucus • Coming to a community near you in June

Annual Convention & Tradeshow • September 22 - 25, Calgary

44 President Summit Evaluation www.menti.com CODE: 31 29 09

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