April 4, 2018 Introduction Welcome to Chestermere Residents Our Mayor and Councillors Our City Team
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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