April 4, 2018 Introduction Welcome to Chestermere Residents Our Mayor and Councillors Our City Team
Presentation & Deliberations April 4 If Required April 11 2018 Municipal Budget Review Agenda 2017 Motions Strategic Plan Economic Climate Comparatives Organizational Chart Operating Budget Updates Capital Budget Updates List of Recommendations Deliberations Pat Vincent, Interim CAO 2017 Motions 417-17 November 6, 2017 Council directed Administration to provide a Staff Report regarding the review of the approved 2018 Capital & Operating Budgets for the November 20 Council Meeting
424-17 November 20, 2017 Council accepted the Staff Report as Information 2017 Motions Staff Report Staff Report Recommendations
Follow the Multi-Year Budget Policy that allows for changes to the Operating and Capital Budgets which occurs in the Spring time, ahead of the Tax Rate Bylaw
Council complete Strategic Planning followed by Council Budget Direction that will inform Department Business Plans Pat Vincent, Interim CAO Strategic Plan Strategic Plan Brenda Hewko, Controller Economic Trends Oil and Gas represents 29% Alberta GDP Economy-wide growth over the long term does depend on success of O/G industry Pipelines stalemate keeps the oil land locked and hinders growth
NAFTA uncertainties hinders growth Economic Trends Population Growth 2018–2041 Calgary Metropolitan Area 620,000 Chestermere 34,500 Market Share 5.6%
Historical Perspective 1986-2016 2.7% 2001-2006 4.7% 2006-2011 3.6% 2011-2016 2.9% Economic Trends 2018 Population 20,331 2041 Population 54,500 Annualized Rate 4.4%
Sensitivity Testing 3.4% Population in 2041 46,900
Historical Perspective 2011-2016 6.07% Economic Trends Summary Alberta is diversifying the Economy Chestermere is diversifying the housing stock Chestermere is strategically located to attract Growth
Double the historical pace of infrastructure development
Administration is in the early stages of analyzing the long range impacts of this pace of development City of Chestermere Performance Brenda Hewko, Controller Comparatives Comparatives Comparatives Comparatives Comparatives Comparatives Comparatives Comparatives 2016 Ratio / 1000 Municipality Population FTE Pop Leduc 30,498 340 11.148 High River 12,920 132 10.217 Spruce Grove 33,640 272 8.086 Chestermere + CUI 19,715 134 6.797 Stony Plain 16,127 108 6.697 Sylvan Lake 14,310 94 6.569 Okotoks 28,016 181 6.461 Cochrane 25,122 162 6.449 Beaumont 17,720 114 6.433 Strathmore 13,327 84 6.303 Airdrie 61,842 375 6.064 Average 7.443 Estimate FTE 146.73 Difference 12.73 % increase 9.5% $ increase, 2016 AFS $ 12,474,050 $ 1,185,050 Comparatives Comparatives Comparatives Comparatives Comparatives Comparatives Summary Revenue Below the Median on Residential Tax per capita Mid Range for Tax & Utility per capita On par with the Median for Non-Residential Expense At (or near) the bottom of the Range for all Expense Types City is under-staffed Brenda Hewko, Controller Organizational Chart Organizational Chart Organizational Chart Organizational Chart Organizational Chart Brenda Hewko, Controller Overview Personnel Community Services Corporate Services Development & Infrastructure Services Protective Services Overview 2018 Budget Expenses 2018 Budgeted Operating Expenses Salaries, Wages and $ 12,551,727 39% Benefits Amortization and 7,333,582 23% Depreciation Contracted and 6,155,268 19% General Services Materials, Goods and 5,084,561 16% Supplies Transfers to 656,285 2% Individuals and Interest on Long 273,510 1% Term Debt Bank Charges 124,955 0% Total $ 32,179,888 Overview 2018 Property Tax Requirement 2018 Property Tax Requirement is based on the Budget Municipal Taxes in 2017 $ 19,368,498 2% equates to 387,370
Extra Information
Change for Property Tax Property Taxes each Percent Requirement per year $500,000 Home 1% $ 193,685 $ 5
2% $ 387,370 $ 10
3% $ 581,055 $ 15 Operating Budget Adjustments Overview
Overview Council's Strategic Plan Initiatives 821,545 Council's Departmental Budget Adjustments -13,335 Legislated, Personnel, Carbon Tax, Fuel, Insurance & Utility Costs 345,417 Reduction in attempt to mitigate tax requirement increases -260,558 Change in Funding using RSA -226,000 Contrary to Strategic Plan 4.1.4 - funding through vacancies -96,473 Total $ 570,596 Operating Budget Adjustments Strategic Plan
Connection to Strategic Plan 2018-2022 Goal 4.1.1 Responsive Government 29,000 4.1.2 Intergovermental Relationships 1,777 4.1.4 Ensure the City is Appropriately Staffed 164,700 4.2.1 Responsible Spending -200,701 4.3.1 Protect Chestermere Lake as a Signficant Recreational Asset 25,545 4.5.1 Create a Physically and Socially Connected Safe Community 555,723 4.5.2 Develop the recreation potential of Chestermere 91,026 Departure from 4.1.4 Ensure City is Appropriately Staffed -96,473 Total $ 570,596 Personnel Key Challenges Personnel Result of being Under Staffed lack of or decreased quality of information presented to Council for decision making Lowering Morale Less Efficiency and Productivity Increasing Turn-over Impacts due to loss of History
Vacancies Transferring of workloads Increasing stress on Staff Operating Budget Summary Personnel
Connection to Strategic Plan 2018-2022 Personnel 4.1.4 Ensure the City is Appropriately Staffed 96,473 4.2.1 Responsible Spending 154,717 4.5.2 Develop the recreation potential of Chestermere 48,597 Departure from 4.1.4 Ensure City is Appropriately Staffed -96,473 Total 203,314 Strategic Initiatives Personnel Strategic Plan 4.1.4 Ensure The City is Appropriately Staffed
Organizational Review for Strategic Alignment Human Resources Policies and Procedures parallels with legislated changes and Council’s HR Framework Spatial requirement is reviewed to match municipal service needs Community Services Operating Budget Community Services
Vision
an active, healthy and connected community
Mission
through community leadership & engagement we
create an inclusive place to live, learn and play Organizational Chart Service Area Key Challenges Community Services Community & Social Parks & Recreation Development Insufficient land or Space limitations Parent Link Centre & Family & resources to build/replace Community Resource fenced off-leash areas, Centre outdoor rinks, pathway Mass Transportation for Growing pressures as families living beyond walking distance expectations for service Staffing resources is above levels to increase, capacity due to the number constructed amenities, of inquiries and events grow, open space complexities of each inquiry Solution for CRCA Operating Budget Summary Community Services
Connection to Strategic Plan 2018-2022 Community & Social Development 4.2.1 Responsible Spending 1,997 Operating Budget Summary Community Services
Connection to Strategic Plan 2018-2022 Parks and Recreation 4.2.1 Responsible Spending -64,253 4.3.1 Protect Chestermere Lake as a Signficant Recreational Asset 25,545 4.5.2 Develop the recreation potential of Chestermere 42,429 Strategic Initiatives Community Services Develop an “Amazing Chestermere” initiative to encourage community collaboration, connectedness and creativity Identify needs and opportunities for diversity in housing options in collaboration with neighbouring municipalities and provincial agencies Maintain the recreational potential of the lake by minimizing weed infestations Promote and support the arts Be prudent in managing the lake, with an eye to future sustainability Grow awareness of current programming provided by the City and community groups Corporate Services Operating Budget Corporate Services
Vision
Champions of Organizational Excellence by providing expertise and
support in a collaborative and respectful environment
Support the Municipality
Communications, Economic Development, Events, Finance, Human
Resources, Information Technology, Legislative Services, Safety and
Office of the CAO Organizational Chart Service Area Key Challenges Corporate Services Stretched resources: Staff wear multiple hats with not enough depth at times to cover everything and limited time for significant projects. Business Analytics: The stress placed on our department and the entire organization continues to rise with higher expectations from citizens and more demands for open government and transparency. There is significant pressure to increase services through substantially increased population growth while keeping budgets and staffing low. The market and economy is under significant pressure which means that we need to be more flexible. The organization is in a state of continuous development and improvement. While this can be exciting we need to ensure that we are managing the challenges effectively so that we are successful. With limited and stretched resources, change management is often neglected. Operating Budget Summary Corporate Services
Connection to Strategic Plan 2018-2022 Corporate Services 4.1.1 Responsive Government 29,000 4.1.4 Ensure the City is Appropriately Staffed 66,727 4.2.1 Responsible Spending -279,368 Total -183,641 Strategic Initiatives Corporate Services Implement an electronic agenda software and televise Council meetings Implement innovation through IT with security improvements, disaster recovery, audio visual, fiber optics Enhance financial reporting to align with the audited financial statements Hire a consultant to conduct an Organizational review Implement a public engagement program Resident Satisfaction Survey is completed Development & Infrastructure Services DIS Operating Budget DIS
Responsibility
All aspects of planning and development, plus maintenance of City roads,
equipment and buildings
Team
Common Administration, Corporate Buildings, Development, Engineering
Services, Fleet Maintenance, Geographic Information Systems, Planning,
Permits, Project Management, Purchasing and Roads Organizational Chart Service Area Key Challenges DIS Planning & Development Roads The establishment of a Growth City owned buildings and building Management Board and other equipment are nearing the end of proposed amendments to the their expected life cycle Municipal Government Act (MGA), Spatial requirements require will require additional staff resources reviewing to ensure adequate The holistic and comprehensive space is available to meet current relationship between the City and municipal service needs, and plan CUI continues to evolve for the future staff needs A lack of water and sewer services In anticipation of a loss of valuable currently in the 2009 annexed lands retiring staff in the next 5 years, has resulted in limited development succession planning is needed driven revenue Lack of certainty of future Development revenue will also be provincial government grant dependent on the state of the funding to municipalities economy, which is a primary factor in market demand for commercial, industrial and residential development Operating Budget Summary DIS – Planning & Development
Connection to Strategic Plan 2018-2022 DIS-Engineering, GIS, Planning 4.2.1 Responsible Spending -8,835 Operating Budget Summary DIS – Public Works
Connection to Strategic Plan 2018-2022 DIS-Common Services, Corporate Properties, PMO & Roads 4.2.1 Responsible Spending -145,668 Strategic Initiatives DIS Continue the implementation of the new Municipal Development Plan (MDP) including review of the Land Use Bylaw. Develop a Communication Plan and implementation strategy to link into new approaches and opportunities to communicate with the Public on future development proposals and other development related issues. Review internal organizational structure to ensure effective execution of work based on priorities. Establish an asset management database with supporting information as required to assist with capital planning. Tender the next portion of the Township Road 240 Project (Township Road 240, Range Road 282, Southlink Bridge and Connector) Protective Services Operating Budget Protective Services
Primary Goal A safe place to live and to work in partnership to provide an excellent, cost effective service that will:
Reduce risk by providing protective community safety services, Respond quickly to emergencies with trained staff working to an appropriate level of service; and Restore and maintain the high quality of life in the community.
Team Organizational Chart Service Area Key Challenges Protective Services The Protective Services Department faces the ongoing challenge of being able to meet the need of the ever growing community with the appropriate level of response. As the population (residential and commercial) increases so will the ability for additional funding. Sustainability will only be achieved if all avenues for financial support remain open Staffing levels are inadequate for workload and growth goals Geographic: Development on West and South segments of the City are becoming a challenge to accomplish ideal response times. Studies are required to determine locations of additional facilities Information Technology: Investment in higher functioning software’s are required to enhance day-to-day work operations and reporting functions, as well as develop operational analytics / forecasting Key Challenges Protective Services Training: Updates to Alberta Labor Standards create budget challenges and operational shortfalls Wages: Work with Human Resources and within budgetary confines to ensure fair and competitive wage structure (FIRE) Emergency Operating Guidelines: Current EOG taken from neighboring fire department requires revamp and authorship to Chestermere specific standards and deployment across all shifts (CPO) Communications: Current safety concerns with radio system – RCMP on AFRRCS, CPO’s on legacy system. Interoperability issue. (CHEMA) Staff capacity issues during long-term events. Explore regional partnership mobilization and strategies Review need for Protective Services Director position vs. direct report to CAO Operating Budget Summary Protective Services
Connection to Strategic Plan 2018-2022 Protective Services 4.1.2 Intergovermental Relationships 1,777 4.2.1 Responsible Spending -44,408 4.5.1 Create a Physically and Socially Connected Safe Community 555,723 Total 513,092 Strategic Initiatives Protective Services (FIRE) Initiate the development of a Fire Master Plan for the City of Chestermere (FIRE) Position and wage review. Work with HR to ensure adequate staffing structure and compensation alignment (CPO) Review enforcement related Bylaws to ensure they are appropriate for service requests from the public (additions to Community Standards bylaw) (CPO) Investigate the feasibility of in vehicle ticket printing (CHEMA) Completion of MEMP (CHEMA) Command staff training and table top exercise(s) (RCMP) Bring Staffing levels up to full-complement Brenda Hewko, Controller Capital Budget Adjustments Overview
Overview Council's Strategic Plan Initiatives 1,350,000 Legislated Changes 30,000 Change in Funding Source 226,000 Delay in Project - 1,579,000 Total $ 27,000 Capital Budget Adjustments Strategic Plan
Connection to Strategic Plan 2018-2022 Goal 4.2.1 Responsible Spending - 495,000 4.3.1 Protect Chestermere Lake as a Signficant Recreational Asset 315,000 4.5.1 Create a Physically and Socially Connected Safe Community 15,000 4.5.2 Develop the recreation potential of Chestermere 192,000 Total $ 27,000 Capital Budget Adjustments Funding Sources
Funding Sources Federal Gas Tax - 1,579,000 Municipal Sustainability Initiative 1,209,000 RSA Lifecycle 58,000 RSA New Equipment 189,000 RSA Recreation 150,000 Total $ 27,000 Capital Budget Grants Capital Budget Grants Capital Budget Restricted Surplus Accounts Capital Budget Debt Brenda Hewko, Controller Overview 2018 Property Tax Requirement 2018 Property Tax Requirement is based on the Budget Municipal Taxes in 2017 $ 19,368,498 2% equates to 387,370
Extra Information
Change for Property Tax Property Taxes each Percent Requirement per year $500,000 Home 1% $ 193,685 $ 5
2% $ 387,370 $ 10
3% $ 581,055 $ 15 Operating Budget Adjustments Overview Overview Council's Strategic Plan Initiatives 821,545 Council's Departmental Budget Adjustments -13,335 Legislated, Personnel, Carbon Tax, Fuel, Insurance & Utility Costs 345,417 Reduction in attempt to mitigate tax requirement increases -260,558 Change in Funding using RSA -226,000 Contrary to Strategic Plan 4.1.4 - funding through vacancies -96,473 Total $ 570,596 Totals $-237,614 is -1.3% reduction to property tax requirement equates to $-6.14 per $500,000 home per year List of Recommendations Operating
$ Change per Impact To Property Council's Strategic Plan Initiatives % Change $500,000 Home Tax Requirement per year Communications 25,227 Yes 0.130% 0.65 Engagement Survey 25,000 Yes 0.129% 0.65 Expenses for Term Position 1,500 Yes 0.008% 0.04 Organizational Review 45,000 Yes 0.232% 1.16 Recreation 9,025 Yes 0.047% 0.23 Staffing Lake Weed Removal 33,597 Yes 0.173% 0.87 Staffing RCMP 570,723 Yes 2.947% 14.73 Staffing Recreation 15,000 Yes 0.077% 0.39 Staffing Term Position 96,473 Yes 0.498% 2.49 Total $ 821,545 4.242% $ 21.21 List of Recommendations Operating
Impact To Property $ Change per Council's Departmental Budget Adjustments % Change Tax Requirement $500,000 Policy #835 Remuneration 30,000 Yes 0.155% 0.008 Expenses for Term Position 1,500 Yes 0.008% 0.000 Conferences & Training -19,384 Yes -0.100% - 0.005 Events -25,451 Yes -0.131% - 0.007 Total -$ 13,335 -0.069% - 0.003 Capital Budget Adjustments Overview
Overview Council's Strategic Plan Initiatives 1,350,000 Legislated Changes 30,000 Change in Funding Source 226,000 Delay in Project - 1,579,000 Total $ 27,000 List of Recommendations Capital
Impact to Property Projects Tax Requirement Boat Launch Exit Arm 12,000 No CRCA 150,000 No Harvester 203,000 No Harvester-Coverall 100,000 No IT Innovation for Security, Audio, Visual 833,000 No Legislated Changes 30,000 No Multi Purpose Rink/Court - Planning 42,000 No Vehicle 10,000 No Change in Funding Source 226,000 No Delay in Projects - 1,579,000 No Total 27,000 Deliberations