Town of Peace River Approved 2018 Operating and Five Year Capital Budgets
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Town of Peace River Approved 2018 Operating and Five Year Capital Budgets GFOA Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Town of Peace River, Alberta for the Annual Budget beginning January 01, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. BUDGET MESSAGE Our Mission Our mission is to provide excellent, efficient and effective delivery of public services for the economic, environmental, social and cultural well‐being of our community. Our Vision Our vision is that the Town of Peace River be the community of choice in the Peace Region. Approved 2018 Operating & Capital Budget 3 BUDGET MESSAGE Prepared by the Contents Town of Peace River Corporate Services Department 9911 100 Street Page PO Box 6600 Introduction Peace River, AB T8S 1S4 Guide to the Budget Document 5 Executive Summary 6 p (780) 624‐2574 Town Profile 8 f (780) 624‐4664 Governance 9 Organizational Chart 10 Budget Guidelines For more information contact Budget Guidelines 11 Greg Towne, Director of Corporate Services and Economic Basis of Budgeting 11 Budget Review Process 12 Development Fund Accounting 13 at the above address, Funds 13 [email protected] or (780) 624‐2574 Fiscal Guidelines 14 Fiscal and Accounting Policies 14 or Budget Schedule 17 Budget Calendar 17 Budget Overview Allan Schramm, Manager of Finance Sources and Uses of Funds 18 at the above address, Consolidated Budget Summary 20 [email protected] or (780) 624‐2574 Water and Wastewater Rates 21 Service Level Initiatives 22 Explanation of Service Level Initiatives 22 Expenditures by Department 24 Net Expenditures by Department 25 Description of Revenues and Expenditures 26 Approved Departmental Budgets Legislative Services 28 Administrative Services 29 Corporate Services 30‐37 Engineering & Infrastructure 38‐42 Community Services 43‐52 Water & Wastewater 53‐55 Corporate Expenses 56‐57 Capital Budget Capital Budget Planning 58 Capital Improvement Plan Funding 59 Long Term Debt 60 Approved 2018 Capital Budget 61 Five Year Capital Plan, by Year 64‐69 Five Year Summary and Funding 70‐73 Appendices Appendix I • Glossary 74 Appendix II • Abbreviations 77 Appendix III • Staffing 78 Appendix IV • Three Year Operating Budget 79 Appendix V • Chart of Accounts 86 v 2.00 Approved 2018 Operating & Capital Budget 4 BUDGET MESSAGE Guide to the Budget Document The primary purpose of this document is to provide Council and citizens with a comprehensive overview of the town’s approved budget, town services and operations, and the resources that fund those services. This document first outlines the goals and issues involved in developing the budget. Then, it provides a discussion on the financial structure of the town with an overview of the town’s various funds, where the money comes from and how it is spent. Details about the budget, forecasted revenue and appropriated expenditures follow, along with an in‐depth look at town departments and programs. In addition to this document Town staff receives a detailed line item budget document to assist them throughout the year. Budget Detail Presented in this section are summaries and details of the Introduction approved 2018 operating budget by department. For The purpose of this section is to provide the reader with comparison, the 2017 approved budget and 2017 general information about the town’s history and projected actual amounts are presented alongside the economy. The town’s governance and organizational 2018 figures. Following the departmental summaries is structures are also in this section. information on the town’s revenues. Budget Guidelines Capital Budget Budget guidelines gives readers information on the This section discusses the capital improvement plan and process used to create the budget, guiding principles and details the approved capital outlay and projects that are parameters in budget preparation and assumptions within included in this budget. There is also information and the budget. A description of the funds used by the town forecasts on the town’s long term debt and funding are shown, guidelines and policies are summarized to sources for the capital program. assist readers, and the budget schedule and calendar are shown. Budget Overview Information in this section should give the reader an understanding about the services the town provides to our citizens and the costs incurred in the provision of those services. It includes the sources of funding that support the town’s operations and capital needs and expenditures to provide services to residents. This section also contains summaries of the 2018 budget with base budget and Council adjustment information, explanations of Council adjustments and departmental and fund summaries. Approved 2018 Operating & Capital Budget 5 BUDGET MESSAGE Details on the budget summary can be found on Table 1 Executive Summary on page 20. The Approved 2018 Operating and Capital Budget In addition to maintaining existing services, Council continues with the framework, principles and foundation approved service level adjustment options for 2018, started last year to present a comprehensive financial plan including: and communication document to Council, ratepayers and increased funding to the Town’s Downtown residents of the Town of Peace River. Beautification Program, funds for aboriginal outreach purposes, Management and staff have spent a significant amount of additional funds for local economic development time preparing detailed work plans and budget to ensure initiatives, the efficient operation of the Town and the responsible approval on an intern Archivist Assistant at the utilization of taxes collected from ratepayers. museum, and purchase of booking software for recreation Overall, operating expenses are budgeted to decrease programs and facilities. $55,760 or 0.3% compared to 2017. However, the approved budget shows increases in capital costs of More information on approved service level adjustments $383,830 or 9.6% ‐ this reflects the need to fund our can be found on page 22. capital program and maintain aging infrastructure. To promote proactive budgeting a 3‐year operating budget To offset these increases, Council approved a 2.8% is also presented in the budget document, starting on page increase in tax revenues collected by the Town. Factoring 78. in other changes to assessments such as new construction, building additions or property sales, ratepayers should expect to see tax bill increases of around 2.4%, on average. Council also approved a 36 cent increase in water rates which equates to a 7.8% rate increase. This amount is profoundly needed to fund water and wastewater projects which are projected to exceed $16,648,850 over the next five years. Approved 2018 Operating & Capital Budget 6 BUDGET MESSAGE Capital Budget Looking Ahead The 2018 Capital Program includes 26 projects totalling During priority workshops, Council has collectively $22.48 million. A summary listing of the projects can be identified key priorities to target during their term: found in the table below: manage the tax burden to property owners, improve efficiencies within the organization and Project Amount continue and strengthen existing partnerships, Hardware Replenishment 27,500 improve recreation service delivery and Total Information Systems 27,500 infrastructure, and Command Truck 64,000 build capacity for operating and capital programs Smoke Generator & Safety Mannequin 15,000 within the budget. Hazmat Truck Scene Lights 10,700 Total Fire Protection 89,700 Neighbourhood Inf. Program 2,290,000 The approved budget meets all these objectives. Operations Fleet Vehicles 36,100 Operations Heavy Equipment 182,000 This budget document was created as a communication Total Works & Equipment 2,508,100 tool for the residents of Peace River. This document is the Instrument Approach Upgrades 25,200 result of a significant amount of work by Council and staff, TP312 5th Edition Update 10,000 as many hours were spent identifying, developing and Operations Fleet Vehicles 37,000 confirming goals, developing operating plans and Total Airport 72,200 prioritizing programs and projects. Peace Regional Recreation Centre 16,175,000 Lower West Peace – Dyke Stairs 16,000 Pool – Filter Tank Bridge 10,500 Pool – Hot Water Tank 130,000 Saddleback Playground 462,000 Upper West Peace Trail 27,000 Total Recreation & Cultural 16,820,500 Operations Fleet Vehicles 42,400 Lift Station #4 60,750 Shaftesbury Sewer Main – Pt 1 120,000 Shaftesbury Sewer Main – Pt 2 120,000 Lift Station #5 Upgrade 90,000 Reservoir 365 Upgrade 325,400 Water Trmt Plant Boiler Upgrade 452,400 Weberville Drying Beds 594,000 Sewer Trmt Plant Sludge Press 790,500 STP Aeration Tank Cleaning 371,250 Total Water & Wastewater 2,966,700 Total 22,484,700 As mentioned before, the capital requirements facing the Town are significant and capacity needs to be built into tax rates and water rates to fund the capital improvement plan. Approved 2018 Operating & Capital Budget 7 COMMUNITY PROFILE The Peace River economy is resource and agriculture Town Profile based including, oil, natural gas, and forestry sectors. The Town has had the opportunity to take advantage of an Situated approximately 490 km northwest of Edmonton abundance of established and potential energy reserves and 195 km northeast of Grande Prairie, the Town of which fuel a thriving oil and gas industry, substantial forest Peace River is the second largest urban centre in reserves that feed a thriving forestry industry and fertile northwestern Alberta and provides a full range of farmland that produces traditional grain crops (25% of institutional, recreational, cultural and commercial services Alberta’s canola and 83% of the province’s forage seed are to the Peace region.