2020 Annual Budget

2020

[2020 ANNUAL BUDGET] City of Fredericton 2020 General Fund Budget including Non-tax Revenue, General Revenue from Property Taxes and the Community Funding and Equalization Grant, Service Based Expenditures, Community and Strategic Partner Capital Grants, Capital Expenditures, Debt Service Costs, and estimates of Asset Depreciation at Fair Market Value for 2020. This budget is presented by the eight (8) Program Results areas.

GOVERNANCE & CIVIC ENGAGEMENT MOBILITY

Responsible and responsive; Vision, leadership, decisions Safe, accessible options for movement in and around the community

PUBLIC SAFETY ECONOMIC VITALITY

A strong, resilient and growing economy A safe and secure community

ENVIRONMENTAL STEWARDSHIP CORPORATE EFFICIENCY

A Clean, Green Community: Water, Land and Air Efficient, Effective and Responsive Internal Services

SUSTAINABLE INFRASTRUCTURE

LIVABLE COMMUNITY

A Vibrant Inclusive, Well-planned, Connected and Active Community Infrastructure ready for service at a cost we can afford

CONTENTS Section I – General Fund

Council’s Vision, Priorities and Approach for the 2020 budget ...... 4 Balanced Budget Based on Principles ...... 5 Affordability ...... 5 Chart 1: Comparison of increases in market assessments to inflation ...... 5 Chart 2: Slowing tax base revenue growth from market assessments and new construction ...... 6 Municipal Tax Effort...... 7 Tax Effort by Household Income...... 7 Tax Effort by Housing Type ...... 7 Table 1.Comparison of average annual New Brunswick municipal water and sewer rates ...... 8 Strategies to maintain reasonable residential property tax effort ...... 8 Corporate Strategy ...... 9 Corporate Strategy Results ...... 9 Managing the workforce ...... 10 Chart 5: Full Time Equivalent Employees - City of Fredericton 2003 – 2020 ...... 10 Innovation & Efficiency ...... 11 Chart 7: $9.7 Million Annual Recurring Savings ...... 11 $466,340 Saved in 2020 ...... 11 Public Value ...... 12 Budgeting for Results ...... 12 Maximize Value for Money ...... 12 Flexibility ...... 12 Debt and One-Time Capital ...... 13 Debt Principles ...... 13 Sustainability ...... 14 2020 Focused Service Improvements & Enhancements ...... 15 Results areas funded from General Revenue ...... 16 General Fund Budget Summary ...... 17 2020 General Fund Revenue & Expenditures - Presented By Results Area ...... 18 Detailed Service Costing By Result Area ...... 21 General Fund Budget Expenditures by Category ...... 25 Personnel Budget by Department ...... 26

Summary of Expenditure Changes...... 26 2020 Capital Budget ...... 27 General Fund Tangible Capital Asset Values and Infrastructure Deficit ...... 28 General Fund Long-term Financial Plan and Capital Policies ...... 29 Capital Budget Funding Allotment & Allocation ...... 30 General Fund Capital Budget Annual Comparison ...... 31 General Fund Capital Budget Annual Policy Target Comparison ...... 31 Capital Budget by Results Area ...... 32 Capital Budget Result Area Detailed Projects ...... 33 Capital Budget – Debt Service Cost by Results Area ...... 37 Non-tangible Capital Included in the Service Based (Operating) Budget ...... 38 Non-tangible Capital to be Included in the Service Based (Operating) Budget ...... 38 Non-tangible Capital – Continued ...... 39 2020 Grants ...... 40 2020 Grants and Contributions ...... 41 2020 Approved Strategic Partner Capital Grants Summary ...... 42 2020 Approved Community Funding Summary ...... 43 2020 Revenue ...... 44 2020 General Revenue ...... 45 General Fund Budget Dollar – Where It Comes From ...... 45 Summary of Revenue Changes ...... 46 2020 Revenue Changes...... 47 2020 Non-Tax Revenue Rate Changes ...... 52 2020 Community Funding Equalization Grant as % of Budget ...... 54 2020 Community Funding Equalization Grant ...... 55 2020 Community Funding Equalization Grant Trend ...... 56 2020 Unconditional Grant Comparison between Cities ...... 57 2018 - 2020 Unconditional Grant Comparison between Cities ...... 58 3 Cities Community Funding Equalization Grant Per Capita Comparison ...... 59 2020 Explanation of Community Funding & Equalization Grant ...... 60 Province of New Brunswick Community Funding & Equalization Grant ...... 60 The Core Funding Component ...... 60 The Equalization Component...... 60 The Equalization Component – Elements ...... 60

The Equalization Component – Standard Expenditure ...... 60 2020 GFEG for NB Cities ...... 61 News Release ...... 61 Community funding and equalization grants announced for 2020 ...... 61 Section II – Property Tax Information ...... 62 Section III – Utility Fund (Water and Sewer) ...... 86 Section IV – Council Resolutions ...... 96

COUNCIL’S VISION, PRIORITIES AND APPROACH FOR THE 2020 BUDGET "An inspired City with a sense of community, fostering innovative development, active living and a social, environmental and fiscal conscience" - 2016 Fredericton City Council Vision

In 2016, the Strategic and External Relations Standing Committee of Council facilitated a vision and priority setting session for the newly elected Fredericton City Council. The following were areas of focus that Council identified as key priority mandates throughout the four year term of Council:

• Make Fredericton the “City of Choice” for new residents & businesses;

• Increased focus and investment in Livable Community outcomes;

• Focus on sport and cultural tourism and alignment with City assets;

• Responsible spending with safe and secure infrastructure; and

• Strengthen alignment between Council’s decision making process and completed strategic and master plans

• In the 2020 budget planning process, City Council demonstrated a strong preference for a systematic approach to achieving the City’s vision. That approach includes the following four key elements:

1. Effective planning

• Long-term financial plan and financial forecasts

• Community & strategic plans with significant public input and engagement

• Corporate strategy to deal with risks and build a resilient organization

2. Focus and flexibility

• Set the vision and establish clear priority areas of focus

• Execute on long-term plans and community priorities by adopting a Budgeting for Results approach that allows flexible implementation of long-range plans

3. Service innovation and improvements

• Set a 2.25% improvement target which is equivalent to the average cost of municipal inflation.

• Use Lean Six Sigma and Value Stream Mapping as a means to improve service delivery and be innovative

• Partner with others as part of being a SMART Community

• Improving communiciations with our community about our community

4. Building an organization that is gaining efficiencies

• Execute a corporate strategy to engage and manage the workforce 4

BALANCED BUDGET BASED ON PRINCIPLES The 2020 General Fund budget has to incorporate additional costs as a result of a significant increase to WorkSafe premiums and the additional costs for temporary Policing costs to allow the Fredericton Police Department to stabilize from the tragic events that occurred in 2018. Despite these costs, all existing services are maintained. Many services have been enhanced and improved through efficiencies and innovation. This is made possible by being focused on priorities and flexible in how resources are used to provide services and using prior year surpluses due to good fiscal management. Over the past several years, there has been a strong focus on cultivating engagement with Council, with the public, and with City staff at all levels, in addition to the culture of continuous improvement. This has resulted in a 2020 budget that provides affordable services while delivering public value in a long-term sustainable way.

Market Assessment increases were the highest they have been in 6 years at 2.68% with a strong new construction growth at 1.41%. While market assessment increases are intended to cover growing costs of existing services, the new construction growth should allow the City to invest more in enhancing or improving services to increase the value provided to our residents and businesses. An overall 4.09% increase to our tax base shows a strong, growing community.

AFFORDABILITY In 2020, the City’s budget focuses on keeping things affordable and fair – meaning results are achieved for the community while maintaining a reasonable tax effort and staying accountable to the taxpayer.

The 2020 budget contains a modest 0.5 cent property tax rate decrease to adjust for higher than anticipated market assessment growth and to keep property tax bills more in line with the Consumer Price Index. This is following a 2019 1 cent tax rate increase to accommodate higher than anticipated Worksafe NB rates. The 2019 tax rate increase was the first increase since 2010 despite slowing growth in revenues. Property market value assessment increases have been lower than the Consumer Price Index for the past four years with 2020 rising slightly higher. This means that over the past 5 years the cost of property taxes has been less relative to other expenses and less than inflation.

CHART 1: COMPARISON OF INCREASES IN MARKET ASSESSMENTS TO INFLATION

CHART 2: SLOWING TAX BASE REVENUE GROWTH FROM MARKET ASSESSMENTS AND NEW CONSTRUCTION

MUNICIPAL TAX EFFORT

With the past trend of property tax assessments rising faster than CPI, the City was concerned that over time taxpayer affordability may be impacted. To better understand taxpayer affordability the City began tracking Municipal Tax Effort.

Municipal Tax Effort measures what percentage of household income is being used to pay for municipal property taxes and water and sewer rates.

Municipal Tax Burden Per Residential Unit Municipal Tax Effort = Household Income

TAX EFFORT BY HOUSEHOLD INCOME

For 2019, Fredericton’s overall Municipal Tax Effort was Income Range Avg. Municipal Avg. Municipal 4.6%. This means that for the average residential unit Tax Burden Tax Effort $ 25,000-40,000 $ 2,248 6.0% 4.6% of their household income pays for municipal $ 40,000-55,000 2,431 4.8% taxes and water and sewer rates. As shown in the chart, $ 55,000-70,000 2,889 4.4% as income ranges increase so does the amount of $ 70,000-85,000 3,385 4.3% municipal taxes paid; however, the amount of taxes $85,000-100,000 3,712 3.9% paid compared to income decreases. The City provides $100,000-115,000 4,286 4.1% a high level of service and value to all of its taxpayers $ 115,000-130,000 4,347 3.4% while still remaining affordable. Even for lower income > $ 130,000 5,179 3.2% ranges tax effort is still at an affordable level relative to Total $ 2,946 4.6% the services being provided.

TAX EFFORT BY HOUSING TYPE

Fredericton’s residents also have a choice when it comes to affordability as their housing decision can impact their Municipal Tax Effort. Data shows that residential homes and condos tend to have higher tax efforts on average than apartments, senior housing and mobile homes. Understanding tax effort relative to housing types allows citizens to make informed decisions that suit their needs and their level of affordability.

Municipal Tax Effort shows that Fredericton is an affordable city for its residents in which they can play a role in determining their level of affordability.

TABLE 1.COMPARISON OF AVERAGE ANNUAL NEW BRUNSWICK MUNICIPAL WATER AND SEWER RATES

Fredericton has one of the lowest average annual costs for municipal water and sewer consumers in the Province of New Brunswick. Residents receive high quality drinking water, and are provided with waste water management services that meet federal guidelines for environmental stewardship.

The 2020 Water & Sewer Utility budget includes an increase in both the fixed quarterly service charge and the consumption rate. This provides the City with additional predictable and stable revenue through the fixed rate while still providing customers that ability to conserve and save Municipality 2019 Yearly on their quarterly bill. Water and sewer is an infrastructure- Fredericton $819 intensive service and requires a significant investment each and every year. In 2020, the City continues to leverage Moncton $905 other government funding to help reduce our infrastructure Dieppe $940 deficit and continue to address Federal guidelines as set out to meet or exceed these guidelines on an annual basis. New Maryland $1,131 The City of Fredericton takes pride in the high quality service Saint John $1,428 provision that we provide to our 17,000+ customers.

STRATEGIES TO MAINTAIN REASONABLE RESIDENTIAL PROPERTY TAX EFFORT

Focus on Cost Efficiency  Reduce operating costs through efficiencies and eliminating waste  Leverage existing infrastructure by increasing infill density  Create additional value with affordable quality services and infrastructure that makes the City attractive to new residents and business and increases the population density

Diversify Revenue Base  Reduce tax reliance on residential property taxpayers  Focus on economic development to increase the size of the commercial tax base  Increase non-tax revenues

Increase Median Income  Focus on economic development to increase the size of the commercial tax base and employment opportunities  Foster entrepreneurship  Attract immigrants to start new business, buy existing business and offset the aging population

CORPORATE STRATEGY The City manages its risks related to slowing revenue growth, operating cost sustainability and continues to build a resilient organization capable of executing on Council’s vision and preparing for the City’s new Municipal Plan by using a corporate strategy focused on engaging the workforce in continuous improvement.

Engagement  Daily Management means getting the workforce involved in finding innovative solutions Attendance  Good attendance management means more capacity Manage the workforce  Optimize the size of the workforce through attrition and efficiencies Innovation & Efficiency  Lean Six Sigma culture of improving services and reducing waste Planning and Focus  Plan for the future (Municipal Plan, Corporate Strategic Plan)  Focus on Council priorities

CORPORATE STRATEGY RESULTS

The results of the corporate strategy lead to a flexible organization gaining efficiencies.

Process improvements and efficiencies mean more time for staff to Capacity Built focus on delivering quality services that are high priority

Deeply leveraging existing resources and creating internal efficiencies Costs Avoided has avoided the need to increase spending

Efficiency projects and managing the workforce create real budget dollar Budget Savings savings that are permanently removed from the budget

The culture of continuous improvements means services are Service Improvements continuously evaluated for improvement opportunities and better ways of delivering services

MANAGING THE WORKFORCE

Through the budget process the City is right-sizing staffing levels. In the past, the City grew staffing levels too quickly in too short of a time period to an unsustainable level. The workforce reduction strategy and efficiency efforts have allowed the City to return staffing to 2002 levels in most areas, which is a sustainable level for the organization. There are 5 full-time equivalent positions added to address growth in service delivery and strategic communications about the City.

CHART 5: FULL TIME EQUIVALENT EMPLOYEES - CITY OF FREDERICTON 2003 – 2020

Full Time Equivalents - 2003 - 2020

2000 658.75 2001 663.79 2002 663.54 2003 649.54 2004 656.04 2005 661.03 2006 666.58 2007 692.79 2008 708.79 2009 721.79 2010 717.40 2011 715.50 2012 718.50 2013 709.53 2014 701.23 2015 692.04 2016 686.54 2017 684.54 2018 683.54 2019 694.54 2020 699.54 600.00 620.00 640.00 660.00 680.00 700.00 720.00 740.00

FTE's Temporary Police

City Council, in an effort to enable the City of Fredericton Police Force to stabilize after tragedies that occurred in the City in 2018, agreed to a temporary increase to the Force’s complement by 10 Officers until the end of 2020. This results in a total of 699.54 full time equivalent personnel budgeted for 2020.

INNOVATION & EFFICIENCY

CHART 7: $9.7 MILLION ANNUAL RECURRING SAVINGS

Council avoided That’s like getting raising the tax 12 months of rate by 11¢ services for the price of 11

$466,340 SAVED IN 2020 Total Personnel Savings $68,344

 Rationalization of Full-Time vs Casual

Total Non-Personnel Savings $397,996

 Energy Efficiency Savings  Interest on Debt Balance  Phone Line Reductions  Commmittee Support 2019 Savings / Efficiencies Achieved $466,340

PUBLIC VALUE

BUDGETING FOR RESULTS • Transform dollars into results creating public value • Shown by cost of service, and results achieved • Budget is a one-year snapshot of a longer-term plan aimed at achieving the City’s vision

MAXIMIZE VALUE FOR MONEY Attraction & Retention (population growth) • Shows City is achieving results important to public – great place to live and do business. Creating Value for Residents • Service value outweighs additional costs. Creation and Implementation of Strategies/Plans – Execute • Municipal Plan • Historic Garrison District Plan • Officers Square Plan • City Centre Plan • Economic Development Strategy

FLEXIBILITY The budget focuses on being flexible – allowing room to address community priorities and changes in conditions. In the long-term financial plan, debt load is managed to allow room to address one-time capital to deliver on key strategic Council priorities – such as the planned contribution to the Performing Arts Centre or the acceleration of implementing the plan for improvements to Officer’s Square.

Flexibility allows the ability to:

• Adapt to changing needs/perceptions

• Accomplish community vision (Municipal Plan) and Council priorities over time and within a reasonable level of tax effort (affordability).

DEBT AND ONE-TIME CAPITAL

Flexibility for Council’s key strategic and significant capital initiatives

Debt Servicing Costs – principal and interest payments on long term borrowings.

• Used for major capital projects that provide long term value to citizens.

• Used for longer lived assets that benefits those paying for it over a long period of time (Intergenerational Equity).

One Time Funding – available in years where new debt is not incurred but maintains 8% capacity room for debt.

• Used to further key strategic Council priorities to meet the needs of the community.

DEBT PRINCIPLES • Debt is not used for on-going renewal, repairs and replacement projects. The City “doesn’t borrow to buy groceries or for household repairs”.

• Debt room is preserved to provide flexibility in financing long-term major capital priorities towards Council’s mandate every 4-8 years

• Debt financing spreads the cost of assets over a longer portion of their useful lives. Paid by those that use the assets over time.

• Good planning means that the people who benefit from an asset are also the ones who pay for it (intergenerational equity)

• Careful that debt servicing payments don’t reduce fiscal room and crowd out other spending and therefore Council Policy endorses an 8% limit on debt

SUSTAINABILITY Considering the impact of today’s decisions on future generations:

• Financial sustainability requires long-term planning; it does not just happen

• “spending the right money on the right things at the right time” within financial constraints

• “meeting existing service delivery without compromising the ability to meet future needs”

Fiscal Strategy – Capital Funding & Financing Balances Renewal with New, and aligns PAYGO and Debt

• PAYGO Capital and Debt ≈ 20% of budget

• Debt less than 8% of budget

• Infrastructure replacement funding strategy

• Reduce infrastructure deficit over 20 years

• Carefully managed capital asset management plan

• Preventative maintenance

• Rationalize, right-size and optimize existing infrastructure

• Tie to service delivery and demand

2020 FOCUSED SERVICE IMPROVEMENTS & ENHANCEMENTS

 Economic Vitality - support through community funding partner groups and continued investment in festivals and events

 Livable Community – Continued reinvestment in the downtown urban core, executing on the City Centre Plan with continued investments in the shared street concept with Officers Square and new park development as well as completion of major park plans

 Mobility – improving technology that makes using transit and parking services easier. Connecting bus stops to active transportation corridors with a focus in 2020 on accessibility. Implementing recommendations of the parking and transit studies.

 Alternative transportation focus on school zone pedestrian safety improvements, focus on neighborhood trails and park connections, trail connections for cycling and cycling infrastructure

 Public Safety- Additonal 10 temporary FTEs to allow the City’s Police Force to stabilize and continue to protect the public

 Corporate Efficiency – Digital Fredericton/Smart City implementation with continued focus on innovative core systems to support service delivery to residents through a connected community. Value stream mapping processes through the organization will standardize processes, eliminate waste and provide more value to taxpayers

RESULTS AREAS FUNDED FROM GENERAL REVENUE

The budget creates value through eight municipal Program Result Areas. Each Program Result Area has specific strategies and objectives outlined through the Municipal Plan, Master Plans and Studies. Council articulates priority areas of focus through the governance and civic engagement process throughout the year.

GENERAL FUND BUDGET SUMMARY

CITY OF FREDERICTON General Fund 2020 Annual Budget % of Budget 2020 2019 Revenue Warrant for Property Taxes 87.0% $ 108,183,452 $ 103,924,273 Community Funding and Equalization Grant 1.5% 1,890,636 1,832,790 Federal Payment in Lieu of Taxes 0.0% 1,742 - Non-tax Revenue 11.5% 14,302,776 14,408,352 Total Revenue 100% $ 124,378,606 $ 120,165,415

Operating Expenditures Personnel 53.5% 66,529,403 63,676,119 Non-personnel 26.2% 32,584,875 32,140,781 Total Operating Expenditures 79.7% $ 99,114,278 $ 95,816,900

Capital Expenditures Capital Expenditures 16.0% 19,855,855 18,650,185 Debt Service Costs 4.3% 5,408,473 5,698,330 Total Capital Expenditures 20.3% $ 25,264,328 $ 24,348,515

Total Operating and Capital Expenditures 100% $ 124,378,606 $ 120,165,415

Net Annual Cash Budget $ - $ -

Non-Cash Expense Asset Depreciation (Note 1) 20% $ 25,285,900 $ 25,550,620

Note 1: Asset Depreciation is estimated as the current replacement cost of assets at fair market value divided by the expected useful life. It shows the cost of using of assets for a given year.

2020 GENERAL FUND REVENUE & EXPENDITURES - PRESENTED BY RESULTS AREA

Programs and Services Detailed Cost 2020 2019 Change

General Revenue Real and Business Property $ (108,183,452) $ (103,924,273) $ (4,259,179) 4% Community Funding & Equalization Grant (1,890,636) (1,832,790) (57,846) 3% Payment in Lieu of Taxes (Federal) (1,742) 8,189 (9,931) -121% Consolidated Surplus (2nd Previous Year) (1,988,495) (2,271,017) 282,522 -12% N.B. G.I.C. - Assessment Costs 1,474,741 1,416,797 57,944 4% General Revenue Total $ (110,589,584) $ (106,603,094) $ (3,986,490) 4%

Governance & Civic Engagement Community Leadership $ 2,237,102 $ 2,431,636 $ (194,534) -8% Intergovernmental Affairs 78,016 110,941 $ (32,925) -30% Management Systems 2,429,666 2,079,140 $ 350,527 17% Governance & Civic Engagement Total $ 4,744,784 $ 4,621,717 $ 123,067 3%

Economic Vitality Business Attraction & Retention $ 1,042,026 $ 915,193 $ 126,833 14% Parking Management 142,423 (190,455) 332,878 -175% Tourism & Events Development 1,022,702 854,293 168,409 20% Tourism Marketing & Sales 4,082,284 3,954,664 127,620 3% Economic Vitality Total $ 6,289,435 $ 5,533,695 $ 755,740 14%

Environmental Stewardship Composting $ 12,642 $ 11,428 $ 1,214 11% Environmental Outreach 116,314 105,973 10,342 10% Solid Waste Management 3,149,223 3,039,910 109,313 4% Storm Water Management 1,717,602 1,606,366 111,236 7% Environmental Stewardship Total $ 4,995,780 $ 4,763,676 $ 232,105 5%

Programs and Services Detailed Cost 2020 2019 Change

Livable Community Arboriculture $ 1,526,201 $ 1,337,636 $ 188,565 14% Community Liaison & Social Outreach 157,126 164,510 (7,383) -4% Community Special Event Coordination & Support 838,246 754,390 83,856 11% Cultural Development 2,677,593 2,897,136 (219,544) -8% Development Approval 1,146,657 1,079,013 67,643 6% Heritage Planning & Conservation 217,419 206,329 11,091 5% Horticulture 1,253,900 1,122,018 131,882 12% Land Use Planning 750,770 597,920 152,850 26% Leisure and Recreation Development and Delivery 447,868 411,594 36,275 9% Parks and Playground Management 2,455,183 2,164,330 290,853 13% Recreation Facility Scheduling 8,680,690 8,428,877 251,813 3% Sport Field Management 667,818 556,332 111,486 20% Livable Community Total $ 20,819,471 $ 19,720,084 $ 1,099,387 6%

Mobility Chartered Busing $ 41,269 $ 38,266 $ 3,002 8% Dial-a-Bus Transit 659,879 596,675 63,204 11% Fixed Route Scheduled Transit 5,179,697 4,629,735 549,962 12% Roadway Management 19,515,801 20,171,982 (656,182) -3% Sidewalk Management 2,487,500 2,544,218 (56,718) -2% Taxi Industry Regulation 75,693 70,655 5,038 7% Trails Management 892,727 792,350 100,376 13% Transportation Network Management 1,190,347 1,252,485 (62,137) -5%

Mobility Total $ 30,042,912 $ 30,096,367 $ (53,454) 0%

Public Safety Animal Registration & Control $ 132,153 $ 127,577 $ 4,576 4% Building Construction Permission & Enforcement 337,743 97,770 239,974 245% Bylaw Enforcement 344,834 300,738 44,096 15% Emergency Preparedness 732,780 769,719 (36,939) -5% Fire Emergency Incident Mitigation 14,109,986 13,888,851 221,135 2% Fire Investigation 495,516 471,476 24,040 5% Fire Prevention & Inspection 2,336,732 2,186,531 150,201 7% Police - Maintain Peace and Order 5,801,944 5,618,914 183,030 3% Police - Protect Life and Property 5,131,465 5,010,480 120,985 2% Police - Prevent Crime and Harm 5,852,581 5,658,948 193,633 3% Police - Investigate Crime 5,923,399 5,748,428 174,971 3% Public Safety Total $ 41,199,132 $ 39,879,431 $ 1,319,701 3%

Programs and Services Detailed Cost 2020 2019 Change

Corporate Business Disruption Recovery Coordination (Business Continuity) $ - $ 4,991 (4,991) -100% Communications Management 517,431 616,126 (98,695) -16% Continuous Improvement 482,673 421,593 61,080 14% Facilities Management 6,595,218 6,210,822 384,396 6% Financial Management 1,352,245 1,425,402 (73,157) -5% Fleet & Equipment Management 4,160,557 4,195,607 (35,050) -1% Human Resource Management 1,141,530 968,839 172,691 18% Information Technology Solution Delivery 826,079 663,231 162,848 25% Information Technology Support 1,739,574 1,508,072 231,501 15% Insurance Coverage 105,618 100,885 4,733 5% Legal Services 760,348 738,714 21,634 3% Occupational Health & Safety 52,284 67,765 (15,481) -23% Public Procurement Management 435,872 347,059 88,813 26% Public Safety Service Request Management 1,151,784 995,770 156,014 16% Real Estate Management 1,990,245 1,891,598 98,646 5% Records Management 70,866 70,399 467 1% Request Management 338,495 362,850 (24,355) -7% Corporate Services Allocated to External Services $ (21,720,817) $ (20,589,723) $ (1,131,094) 5% Corporate Total $ - $ - $ -

Sustainable Infrastructure Capital Asset Management $ 1,399,313 $ 1,359,500 39,813 3% Capital Planning and Implementation 558,217 666,466 (108,249) -16% Capital Prioritization and Planning Management 529,396 1,136,037 (606,640) -53% Debt & Affordability Management 32,716 28,227 4,489 16% Debt Service Cost 5,408,473 5,698,330 (289,857) -5% New/Extension Capital Expenditures 6,090,476 4,611,600 1,478,876 32% Renewal/Rebuild Capital Expenditures 13,765,379 14,038,585 (273,206) -2% Sustainable Infrastructure Total $ 27,783,970 $ 27,538,745 $ 245,225 1%

DETAILED SERVICE COSTING BY RESULT AREA

Depreciation Non-personnel Non-Tax Cost Recovery Personnel Cost Net Cost (Non-Cash 2020 Cost Revenue Ratio Programs and Services Detailed Cost Expense) A B C D = A + B - (C) E G = C / (A+B+E) General Revenue Real and Business Property $ (108,183,452) $ (108,183,452) Community Funding & Equalization Grant (1,890,636) (1,890,636) Payment in Lieu of Taxes (Federal) (1,742) (1,742) Consolidated Surplus (2nd Previous Year) $ (1,988,495) (1,988,495) (1,988,495) N.B. G.I.C. - Assessment Costs $ 1,474,741 1,474,741 1,474,741 General Revenue Total $ 1,474,741 $ (1,988,495) $ (110,589,584) $ - $ (110,589,584)

Governance & Civic Engagement Community Leadership $ 562,588 $ 1,580,394 $ - $ 2,142,983 $ 94,119 $ 2,237,102 Intergovernmental Affairs 78,016 - - 78,016 - 78,016 Management Systems 1,840,415 563,965 - 2,404,380 25,286 2,429,666 Governance & Civic Engagement Total $ 2,481,020 $ 2,144,359 $ - $ 4,625,379 $ 119,405 $ 4,744,784

Economic Vitality Business Attraction & Retention $ 146,670 $ 883,861 $ - $ 1,030,531 $ 11,495 $ 1,042,026 Parking Management 532,521 1,523,149 (2,563,257) (507,587) 650,009 142,423 95% Tourism & Events Development 532,812 435,657 - 968,469 54,233 1,022,702 Tourism Marketing & Sales 581,289 2,183,048 - 2,764,336 1,317,947 4,082,284 Economic Vitality Total $ 1,793,292 $ 5,025,715 $ (2,563,257) $ 4,255,750 $ 2,033,685 $ 6,289,435 29%

Environmental Stewardship Composting $ 12,642 $ - $ - $ 12,642 $ - $ 12,642 Environmental Outreach 114,611 - - 114,611 1,703 116,314 Solid Waste Management 107,606 3,026,765 - 3,134,372 14,851 3,149,223 Storm Water Management 274,670 629,501 - 904,170 813,432 1,717,602 Environmental Stewardship Total $ 509,528 $ 3,656,266 $ - $ 4,165,795 $ 829,986 $ 4,995,780

Depreciation Non-personnel Non-Tax Cost Recovery Personnel Cost Net Cost (Non-Cash 2020 Cost Revenue Ratio Programs and Services Detailed Cost Expense) A B C D = A + B - (C) E G = C / (A+B+E) Livable Community Arboriculture $ 862,625 $ 478,700 $ - $ 1,341,324 $ 184,877 $ 1,526,201 Community Liaison & Social Outreach 82,588 67,212 - 149,799 7,327 157,126 Community Special Event Coordination & Support 225,794 467,373 - 693,167 145,079 838,246 Cultural Development 160,867 2,124,669 (8,300) 2,277,236 400,356 2,677,593 0% Development Approval 628,845 401,524 (78,000) 952,368 194,288 1,146,657 6% Heritage Planning & Conservation 163,165 46,033 - 209,198 8,222 217,419 Horticulture 837,546 270,966 - 1,108,512 145,388 1,253,900 Land Use Planning 419,889 330,882 - 750,770 - 750,770 Leisure and Recreation Development and Delivery 1,404,246 1,483,512 (2,592,926) 294,832 153,036 447,868 85% Parks and Playground Management 717,265 952,204 - 1,669,470 785,713 2,455,183 Recreation Facility Scheduling 2,413,008 3,328,374 (7,500) 5,733,882 2,946,807 8,680,690 0% Sport Field Management 241,064 82,934 (150,000) 173,998 493,820 667,818 18% Livable Community Total $ 8,156,903 $ 10,034,381 $ (2,836,726) $ 15,354,557 $ 5,464,914 $ 20,819,471 12%

Mobility Chartered Busing $ 37,804 $ 26,246 $ (25,000) $ 39,050 $ 2,219 $ 41,269 38% Dial-a-Bus Transit 285,585 371,231 (32,000) 624,816 35,062 659,879 5% Fixed Route Scheduled Transit 3,498,082 2,575,643 (2,041,050) 4,032,676 1,147,021 5,179,697 28% Roadway Management 3,482,286 5,279,829 (409,955) 8,352,160 11,163,640 19,515,801 2% Sidewalk Management 830,907 395,629 - 1,226,536 1,260,964 2,487,500 Taxi Industry Regulation 88,403 2,291 (15,000) 75,693 - 75,693 17% Trails Management 386,811 242,201 - 629,012 263,714 892,727 Transportation Network Management 497,085 596,796 - 1,093,881 96,466 1,190,347 Mobility Total $ 9,106,963 $ 9,489,867 $ (2,523,005) $ 16,073,825 $ 13,969,087 $ 30,042,912 8%

Public Safety Animal Registration & Control $ 20,017 $ 123,635 $ (11,500) $ 132,153 $ - $ 132,153 8% Building Construction Permission & Enforcement 806,708 333,748 (1,007,000) 133,456 204,287 337,743 75% Bylaw Enforcement 217,387 121,407 (26,000) 312,795 32,039 344,834 7% Emergency Preparedness 227,421 393,084 - 620,505 112,275 732,780 Fire Emergency Incident Mitigation 11,084,872 3,270,026 (1,319,141) 13,035,757 1,074,229 14,109,986 9% Fire Investigation 495,516 - - 495,516 - 495,516 Fire Prevention & Inspection 1,350,925 792,380 (5,000) 2,138,306 198,426 2,336,732 0% Police - Maintain Peace and Order 4,270,730 1,259,175 - 5,529,906 272,038 5,801,944 Police - Protect Life and Property 4,270,730 1,241,942 (653,246) 4,859,427 272,038 5,131,465 11% Police - Prevent Crime and Harm 4,270,730 1,304,737 (7,000) 5,568,467 284,114 5,852,581 0% Police - Investigate Crime 4,270,730 1,370,555 (2,000) 5,639,285 284,114 5,923,399 0% Public Safety Total $ 31,285,768 $ 10,210,689 $ (3,030,887) $ 38,465,570 $ 2,733,562 $ 41,199,132 7%

Depreciation Non-personnel Non-Tax Cost Recovery Personnel Cost. Net Cost (Non-Cash 2020 Cost Revenue Ratio Programs and Services Detailed Cost Expense) A B C D = A + B - (C) E G = C / (A+B+E) Corporate Communications Management $ 110,221 $ 407,210 $ - $ 517,431 $ - $ 517,431 Continous Improvement 408,423 74,250 - 482,673 - 482,673 Facilities Management 1,430,217 5,165,001 - 6,595,218 - 6,595,218 Financial Management 1,258,894 322,851 (229,500) 1,352,245 - 1,352,245 15% Fleet & Equipment Management 2,191,696 1,968,861 - 4,160,557 - 4,160,557 Human Resource Management 909,454 232,076 - 1,141,530 - 1,141,530 Information Technology Solution Delivery 714,979 111,100 - 826,079 - 826,079 Information Technology Support 942,619 796,955 - 1,739,574 - 1,739,574 Insurance Coverage 36,118 69,500 - 105,618 - 105,618 Legal Services 563,004 197,344 - 760,348 - 760,348 Occupational Health & Safety 52,284 - - 52,284 - 52,284 Public Procurement Management 367,379 68,493 - 435,872 - 435,872 Public Safety Service Request Management 2,210,225 72,465 (1,130,906) 1,151,784 - 1,151,784 50% Real Estate Management 182,519 1,807,726 - 1,990,245 - 1,990,245 Records Management 70,866 - - 70,866 - 70,866 Request Management 317,295 21,200 - 338,495 - 338,495 Corporate Services Allocated to External Services $ (11,766,191) $ (11,315,032) $ 1,360,406 $ (21,720,817) $ - $ (21,720,817) 6% Corporate Total $ - $ - $ - $ - $ - $ -

Sustainable Infrastructure Capital Asset Management $ 1,270,342 $ 122,338 $ - $ 1,392,680 $ 6,633 $ 1,399,313 Capital Planning and Implementation - 430,203 - 430,203 128,014 558,217 Capital Prioritization and Planning Management 128,597 400,184 - 528,781 615 529,396 Debt & Affordability Management 30,800 1,916 - 32,716 - 32,716 Debt Service Cost - 5,408,473 - 5,408,473 - 5,408,473 New/Extension Capital Expenditures - 6,090,476 - 6,090,476 - 6,090,476 Renewal/Rebuild Capital Expenditures - 13,765,379 - 13,765,379 - 13,765,379 Sustainable Infrastructure Total $ 1,429,739 $ 26,218,969 $ - $ 27,648,708 $ 135,262 $ 27,783,970

Capital $ (25,264,328) Personnel and Allocated Costs (10,405,785) (25,285,900) Grand Total $ 66,529,403 $ 32,584,875 $ (14,302,776) $ 25,285,900 $ - 11%

This page intentionally left blank

GENERAL FUND BUDGET EXPENDITURES BY CATEGORY

PERSONNEL BUDGET BY DEPARTMENT

SUMMARY OF EXPENDITURE CHANGES

Operating Expenditures Proposed 2020 2019 % Change Personnel 66,529,403 63,676,119 4.5% Non-personnel 32,584,875 32,140,781 1.4% Total Operating Expenditures $ 99,114,278 $ 95,816,900 3.4%

Capital Expenditures Capital Expenditures 19,855,855 18,650,185 6.5% Debt Service Costs 5,408,473 5,698,330 -5.1% Total Capital Expenditures $ 25,264,328 $ 24,348,515 3.8%

Total Operating and Capital Expenditures $ 124,378,606 $120,165,415 3.5%

2020

2020 Capital Budget

GENERAL FUND TANGIBLE CAPITAL ASSET VALUES AND INFRASTRUCTURE DEFICIT The total estimated replacement cost of the General Fund infrastructure is estimated to be seven hundred and eighty-nine million dollars ($789M) (see Chart 1 below). There are tangible capital assets owned by the City that have reached the end of their useful lives but have not yet been replaced. The current replacement cost of these assets is referred to as the infrastructure deficit and is estimated to be seventy four million dollars ($74M) (see Chart 2 below).

Chart 1.Total replacement value

Chart 2.Infrastructure deficit

GENERAL FUND LONG-TERM FINANCIAL PLAN AND CAPITAL POLICIES The City is addressing the infrastructure deficit through its fiscal policies and long-term financial plan. The Long-term Financial Plan (LTFP) prescribes the level of funding required for infrastructure renewal that will reduce the infrastructure deficit over a twenty year period. There are three key components of Council’s adopted financial plans and polices that make this strategy effective:

1. Fiscal policy requires that seventy five percent (75%) of the pay-as-you-go capital budget be spent on infrastructure renewal or rebuilding, and sets a target of no more than ten percent capital spending on new infrastructure; 2. The LTFP provides an additional five percent (5%) for infrastructure deficit funding each year; and 3. Debt service costs are limited to eight percent (8%) of the total budget to maintain sufficient pay-as- you-go capital budget.

With these financial plans and fiscal policies the infrastructure deficit will be reduced to thirty one ($31) over the next twenty years. Without the Council adopted LTFP and fiscal policies the infrastructure deficit would triple to an estimated two hundred and forty million dollars ($240M) in just the next fifteen years (see Chart 3 below).

Chart 3.Impact of infrastructure funding

CAPITAL BUDGET FUNDING ALLOTMENT & ALLOCATION The annual capital budget funding allotment is based on Council’s Long-term Financial Plan and policies for Capital Prioritization and Investment, and Debt Affordability Management. The budget follows the financial plans and policies by allocating seventy five percent (75%) of the annual pay-as- you-go base budget to infrastructure renewal, fifteen percent (15%) to capital maintenance and planning, and ten percent (10%) to new infrastructure. An additional five percent is added to the prior year’s renewal amount for infrastructure deficit funding.

Debt service costs are limited to eight percent (8%) of total revenues. Any amount of the debt service budget that is not committed to existing debt servicing costs are available in the capital budget as one-time capital amounts.

Table 1.Capital Budget Funding

Capital Budget Funding Capital Budget Policy 2020 Amount Annual pay-as-you-go capital budget 0% Increase over prior year $ 12,077,196 Infrastructure deficit funding 5% Increase over prior year renewal budget 6,600,443 Total pay-as-you-go capital budget 18,677,639 One time capital 8% Debt limit, less existing debt service costs 3,219,216 Total Funding Available for Capital Budget $ 21,896,855

Table 2.Capital Budget Allocation

Proposed Approved Policy 2020 Capital Budget Allocation Budget Budget Target Ratios Amount Tangible Capital - Infrastructure Renewal / Rebuilding 75% of annual pay-as-you-go capital budget $ 14,008,229 74% $ 13,765,379

Tangible Capital - New Infrastructure / Extension One time capital 3,219,216 3,250,000 10% of annual-pay-as-you-go capital budget 1,867,764 15% 2,840,476 Total New Infrastructure / Extension $ 5,086,980 $ 6,090,476

Total Tangible Capital $ 19,095,209 $ 19,855,855

Non-tangible Capital Assets * 15% of annual pay-as-you-go capital budget $ 2,801,646 11% $ 2,041,000

Total Capital Budget $ 21,896,855 $ 21,896,855

*Non-tangible capital asset spending is included in the operating budget.

GENERAL FUND CAPITAL BUDGET ANNUAL COMPARISON The tables below show a comparison of the annual amounts budgeted for tangible capital renewal and new investments. (Non-tangible capital budget allotments are included with the operating budget)

Approved General Fund Capital Budget Allotment 2020 2018 Budget 2019 Budget Approved Budget Regular Pay-as-you-go Capital $ 10,368,252 $ 9,828,453 $ 10,036,196 Infrastructure Deficit Funding 5,371,733 6,021,732 6,569,659 One-time Capital 2,662,000 2,800,000 3,250,000 Total $ 17,448,559 $ 18,650,185 $ 19,855,855

*One-time capital represents the portion of the capital budget available for debt repayments on future capital borrowing projects.

General Fund Capital Uses Summary

2020 2018 Budget 2019 Budget Approved Budget Replacement/Rebuild $ 13,061,985 $ 14,038,585 $ 13,765,379 New/Extension 5,340,000 4,611,600 6,090,476 Total Tangible Capital $ 17,448,559 $ 18,650,185 $ 19,855,855

GENERAL FUND CAPITAL BUDGET ANNUAL POLICY TARGET COMPARISON On average, over a three year period the capital budget policy targets have been met.

3 Year Capital Budget Category 2018 2019 2020 Average Replacement/Rebuild 74% 80% 74% 76% New/Extension 16% 10% 15% 14% Non-tangible Capital 10% 10% 11% 10%

CAPITAL BUDGET BY RESULTS AREA The capital budget is shown by program results area. Below is a summary of capital budget spending by results area. The following pages provide a detailed list of planned project expenditures by program results area.

2020 Capital Budget New/ Result Area Renewal/Rebuild Total Extension Economic Vitality $ 234,800.00 $ 40,000 $ 274,800 Environmental Stewardship 2,000,000 - 2,000,000 Livable Community 1,467,700 3,870,000 5,337,700 Mobility 7,426,600 1,465,000 8,891,600 Public Safety 945,279 111,976 1,057,255 Sustainable Infrastructure - 500,000 500,000 Corporate 1,741,000 53,500 1,794,500 $ 13,815,379 $ 6,040,476 $ 19,855,855

Capital projects are Approved that deliver on Council’s Vision of “An inspired City with a sense of community, fostering innovative development, active living and a social, environmental and fiscal conscience”.

The capital budget for 2020 builds on the following themes from Council’s vision:

• Responsible Infrastructure • Implementation of the City Centre Plan, Officer’s Square and Historic Garrison District Plans • Park Plan Implementation • Neighborhood Parks and Trails • Active Transportation • Accessible Transportation • Amenities that Attract • Sports Tourism • Renewable Energy • Corporate Efficiencies

CAPITAL BUDGET RESULT AREA DETAILED PROJECTS Economic Vitality

Renewal/Rebuild Parking Service - Modern Van $ 34,800 Parking Equipment Renewal (Meters and Pay Stations) 100,000 Parking Garage Repairs 100,000 Economic Vitality Total Renew al/Rebuild $ 234,800

New/Extensions Real Time Parking Technology - License Plate Recognition Readers $ 40,000 Economic Vitality Total New/Extension $ 40,000

Total Economic Vitality Capital $ 274,800

Environmental Stewardship

Renewal/Rebuild Storm Sewers Renewal $ 2,000,000 Environmental Stewardship Total Renewal/Rebuild $ 2,000,000

Total Environmental Stewardship Capital $ 2,000,000 Livable Community

Renewal/Rebuild Park Culvert Renewal $ 30,000 Parks and Trees - Side x Side Utility Vehicle 31,000 Recreation - 7 Passenger Van 34,600 Parks and Trees - 4X2 Extended Cab 36,200 Old Burial Ground Renewal 50,000 Trail & Pathway Renewal 50,000 Parks and Trees - 1 Ton Crew Cab 61,200 Parks and Trees - Chipper 73,500 Horticulture Renewal 75,000 Park Infrastructure Renewal 90,000 Arboriculture Renewal 100,000 Johnson Ave exterior renovation (Windows, siding, doors) 100,000 Building Services - Ice Resurface unit 139,200 Parks and Trees - 3 Ton Chip Truck 147,000 Emerald Ash Borer Action Plan (Remove and Replace) 150,000 Grant Harvey Mechanical Piping Repairs 150,000 Trail Culvert Renewal 150,000 Livable Community Total Renewal/Rebuild $ 1,467,700

New/Extensions Outdoor Aquatic Infrastructure Improvements $ 170,000 All Wheeled Sports Plaza (One Time) 200,000 Park Plan Implementation - Wilmot, Carleton, Odell, Killarney 200,000 Park Development 250,000 Frex Development 525,000 Indoor Aquatic Pool Development 525,000 Officer Square (One Time) 2,000,000 Livable Community Total New/Extensions $ 3,870,000

Total Livable Community Capital $ 5,337,700

Mobility

Renewal/Rebuild Unfinished topsoil $ 30,000 Court Upgrades 35,000 Parking/Transit Technology 50,000 River Street Reconstruction 50,000 Roadway Operations - Trackless Sander (2) 55,000 Pedestrian & Trail Crossing Improvements 75,000 Traffic Controller Renewals 85,000 Sidewalks and Lighting - Urban Design 105,000 Roadway Operations - 1 Ton Crew Cab with Dump (2) 124,000 Roadway Operations - 4X4 Extended Cab (3) 124,800 Pedway Deck Renewal 150,000 Roadway Operations - Trackless 169,000 Union Street Reconstruction / DMAF 200,000 Transportation Safety Improvements 300,000 Roadway Operations - Vacuum Sweeper 325,200 Roadway Operations - Loader 327,000 Sidewalk Renewal 350,000 Regent Street Reconstruction Phase 1 400,000 Brookside Drive Reconstruction Phase 1 500,000 Roadway Operations - Salt Truck (2) 571,600 Curb & Gutter Renewal 900,000 Asphalt Resurfacing 2,500,000 Mobility Total Renewal/Rebuild $ 7,426,600

New/Extensions Transit Technology - Strategic Plan Implementation $ 50,000 Land Purchases 100,000 Transit Technology - Passenger Counting 125,000 Transit Technology - On Board Security Cameras 150,000 Downtown Public Realm Upgrades 200,000 Active Transportation System Extension (Trails, Gaps) 250,000 Sidewalk & Subdivision Connection Extensions 250,000 Carleton Street Sidewalk & Public Realm 340,000 Mobility Total New/Extensions $ 1,465,000

Total Mobility Capital $ 8,891,600

Public Safety

Renewal/Rebuild RCMP Latent Prints $ 4,000 Gas Masks 10,000 Axon - Interview Rooms 10,294 Evidence.com license 17,185 Body Armour 20,000 Thermal imaging camera 20,000 Evidence Drying Cabinet 24,000 Throw Phones 26,400 Building Inspection - Mid Size Sedan 29,500 Fire - Modern Van 41,500 Fire - Paint and Body Work 43,500 Police - Unmarked Sedan (2) 57,000 Police - Marked SUV 68,200 Fire Station Improvements (Royal Rd, Kimble) 75,000 Bunker Gear Renewal 96,200 Fire - 4X4 Crew Cab (2) 112,500 Police Station Renovations 125,000 Police - Marked (2) & Slick Sedan 165,000 Public Safety Total Renewal/Rebuild $ 945,279

New/Extensions Vericom Accelerometer $ 6,881 Emergency Preparedness Webcam Technology 30,000 Key Tracer - Long Gun Locker and Radio Locker 75,095 Public Safety Total New/Extension $ 111,976

Total Public Safety Capital $ 1,057,255

Sustainable Infrastructure

New/Extensions Climate Change Mitigation / Adaptation $ 500,000 Sustainable Infrastructure Total New/Extension $ 500,000

Total Sustainable Infrastrucutre Capital $ 500,000

Corporate

Renewal/Rebuild Service Request Management Call Taking $ 15,000 Building Services - Cargo Van 39,500 Exchange Outlook to Cloud Migration 45,000 VeloCITY Service Request Management 60,000 Police and Fire Intranet SharePoint Refresh 75,000 Information Management Project and SharePoint Upgrades 75,000 Facility Roofing Repairs (Various locations) 85,000 HR Talent Management - Personal Profile 200,000 Regent Depot Site Works 300,000 Data Centre Infrastructure Renewal 346,500 City Hall Deep Retrofit 500,000 Corporate Total Renewal/Rebuild $ 1,741,000

New/Extensions Operational Data Collection IoT Projects $ 25,000 PoolWatch IoT Remote Monitoring 28,500 Corporate Total New/Extensions $ 53,500

Total Corporate Capital $ 1,794,500

CAPITAL BUDGET – DEBT SERVICE COST BY RESULTS AREA The annual commitments for debt service cost are shown below and summarized by result area. The total amount required to meet debt service commitments for 2019 is $5,698,330, which is 4.7% of the total budget.

2020 Debt Repayment Budget - By Program Results Area Result Area Debentures Leases Total Mobility $ - $ 98,080 $ 98,080 Livable Community 2,626,275 - 2,626,275 Economic Vitality 1,960,368 - 1,960,368 Public Safety 577,992 145,757 723,749 $ 5,164,635 $ 243,837 $ 5,408,472

Mobility Debt Service Cost Nova Bus Lease (Year 5 of 5) $ 98,080 Total Mobility Debt Service Costs $ 98,080

Livable Community Debt Service Cost Willie O'Ree Place $ 961,592 Grant Harvey Centre 1,226,317 Lady Beaverbrook Rink 174,637 Queen Square Pool 103,405 Royal Road Pool 103,405 Henry Park Pool 33,584 Marysville Pool 23,335 Total Livable Community Debt Service Cost $ 2,626,275

Economic Vitality Debt Service Costs East End Parking Garage $ 686,861 Convention Centre 1,273,507 Total Economic Vitality Debt Service Costs $ 1,960,368

Public Safety Debt Service Costs Two Nations Fire Station $ 577,992 Police Armoured Rescue Vehicle Lease (Year 4 of 6) 57,777 SCBA Equipment (Year 3 of 5) 87,980 Total Public Safety Debt Service Costs $ 723,749

Total Debt $ 5,408,472

NON-TANGIBLE CAPITAL INCLUDED IN THE SERVICE BASED (OPERATING) BUDGET Non-tangible capital asset (NTCA) expenditures are costs related to the stewardship and care of capital assets and infrastructure. These costs typically include pre-planning and design, professional services, long-term plans, consulting and public engagement, and maintenance and renewal of smaller assets that do not meet the dollar threshold of the capitalization policy.

NTCA expenditures are not included in the capital budget. Instead, they are included in the cost of service delivery and presented with the service based budget. Capital assets and infrastructure are used in the delivery of services so costs associated with infrastructure operations are linked to the services rendered in the service budget. This information is provided to communicate areas of emphasis related to capital planning, and to highlight the renewal and on-going care of existing infrastructure.

NON-TANGIBLE CAPITAL TO BE INCLUDED IN THE SERVICE BASED (OPERATING) BUDGET

Program 2020 Corporate Proceeds on Disposal of Existing Assets $ (110,800) Infrastructure as a Service - Data Backups 18,000 Grant Harvey (Building Design for Storing Floor) 20,000 Application Consulting and Support - Professional Services 25,000 Infrastructure as a Service 60,000 Buildings & Facilities Master Plan (Design/Studies) 75,000 Cybersecurity Development Initiatives 102,000 Office/Service Delivery Optimization Design 300,000 Corporate Total $ 489,200

Economic Vitality Signage $ 5,000 Guard Icon Renewal 10,000 Fredericton Tourism Website Development 15,000 Video Archive & Digital Development 15,000 Festival Infrastructure (small portable stage for special events) 20,000 Garrison Infrastructure 20,000 Digital Asset Development (Econ. Dev., Tourism, Culture) 25,000 Parking Structure Requirement Analysis 125,000 Economic Vitality Total $ 235,000

Environmental Stewardship Engineering Investigations & Design $ 250,000 Environmental Stewardship Total $ 250,000

NON-TANGIBLE CAPITAL – CONTINUED

Program 2020 Livable Community City Hall Flag Pole Installation $ 12,000 Special Event Asset Renewal 15,000 Public Art 30,000 Ballfield Design 50,000 Cultural Plan Implementation 60,000 Park Plan Detailed Engineering Design 100,000 Recreation Equipment Renewal 120,000 G&CS Planning & Studies (Frex) 125,000 City Centre Plan/Garrison Investigations and Design 200,000 Livable Community Total $ 712,000

Mobility Stop Sign Replacement $ 8,000 Bridge Inspection 10,000 Engineering - Police Traffic Education 10,000 Transportation Investigations & Design 100,000 Mobility Total $ 128,000

Public Safety Fentanyl Kits $ 5,000 AEDs x 2 7,800 RDC Ice/Water Rescue 10,000 Patrols Carbine Ammunition 12,000 Fire Hose 15,000 Drone 15,000 Tasers/Cartridges 15,000 Jaws of Life 17,000 Emergency Response Equipment 35,000 Fire Risk Assessment 95,000

Public Safety Total $ 226,800

2020

2020 GRANTS

2020 GRANTS AND CONTRIBUTIONS Grants and Contributions 2019 2020 Summary Approved Proposed

Strategic Partner Capital Grants (Note 1) $264,308 $264,308

Community Grants (Note 1) $260,000 $265,000 Arts, Heritage and Culture Grants 78,500 78,500 Major Events 100,000 100,000 Sport Tourism 55,000 55,000 Subtotal - Grants $757,808 $762,808

On-going contributions: Fredericton Playhouse Inc. (Note 2) $491,000 $535,600 Fredericton Public Library. (Note 2) 105,195 105,195 Total - Grants and Contributions $1,354,003 $1,403,603 Note 1. One-time reallocation from Strategic Partner Capital Grants to Community Grants due to unused SPCG in 2018 $37,500. Note 2. This is direct grant funding and does not include the City's cost of building capital and maintenance.

2020 APPROVED STRATEGIC PARTNER CAPITAL GRANTS SUMMARY

Strategic Partner Capital Grants 2020 2021 2022 2023 Recommended Beaverbrook Art Gallery Capital Campaign $1,000,000 total [20 year commitment 2012 - 2031 at $50,000/year] 50,000 50,000 50,000 50,000 UNB - "Forging our Futures" $1,500,000 total (15 year commitment 2009-2023 - $100,000/year) 100,000 100,000 100,000 100,000 Charlotte Street Arts Centre - $250,000 total [5 year commitment 2016-2020] ($90,000 in 2016; $50,000 2017-2019; $10,000 in 2020) 10,000 - - - Capital Winter Club - $250,000 total [4 year commitment 2019- 2022] ($40,000, $60,000, $75,000 for 2021-2022) 60,000 75,000 75,000 - Theatre New Brunswick - $49,308 total [2 year commitment 2019- 2020] ($24,308, $25,000) 25,000 - - - RECOMMENDED: Science East – South Back Wall Masonry Work [1 year commitment 2020 - $19,308] 19,308 - - - Available - 75,000 75,000 150,000 Total - Strategic Partner Capital Grants 264,308 300,000 300,000 300,000

Note: One-time reallocation from Strategic Partner Capital Grants to Community Grants due to unused SPCG (2018 $37,500; 2017 $90,000). 2018 remaining unused SPCG grant reallocated to Legislation budget - Housing First $35,692/year for 3 years (2018-2020).

2020 APPROVED COMMUNITY FUNDING SUMMARY

Community Grants 2019 2020 Community Grants Approved Recommended Fredericton Civic Pride Committee (Canada Day) * 37,500 37,500 Harvest Jazz & Blues Festival* 47,500 45,000 Multicultural Association 6,000 6,000 NB African Association 6,500 4,500 NB Highland Games & Scottish Festival* 24,000 21,500 Shivering Songs (Capital Arts Support) 7,000 6,500 The Notable Arts Theatre Company 5,000 4,500 NBEX* - 12,500 Subtotal - Festivals 133,500 138,000 Ambassadorship Grant / Travelling Athlete 2,000 2,000 Bard in the Barracks 7,000 6,500 Beaverbrook Art Gallery 30,000 27,500 Centre Communautaire Sainte-Anne* 2,500 4,000 Christ Church Cathedral 6,000 6,000 Fredericton Outdoor Summer Theater (FROST) 7,500 7,000 NB Youth Orchestra (Sistema NB) 22,500 22,000 Science East 22,000 21,000 York Sunbury Historical Society/Museum 27,000 26,000 Estey Art - 5,000 Subtotal - Other 126,500 127,000 Total - Community Grants 260,000 265,000

* - Additional supplemental funding from the Sustainability Festival fund.

2020

2020 REVENUE

2020 GENERAL REVENUE

GENERAL FUND BUDGET DOLLAR – WHERE IT COMES FROM

* Includes City related entities (FCC, NewMarket, eNovations) surplus', not available for City use

SUMMARY OF REVENUE CHANGES Proposed % Of Description 2019 Budget % Change 2020 Budget Budget Revenue Warrant for Property Taxes $ 108,183,452 103,924,273 4.10% 87.0% Community Funding and Equalization Grant $ 1,890,636 1,832,790 3.16% 1.5% Federal Payment in Lieu of Taxes $ 1,742 - N/A 0.0% Non-Tax Revenue $ 12,314,281 12,137,335 1.46% 9.9% Second Previous Years Surplus * $ 1,988,495 2,271,017 -12.44% 1.6% Total Revenue $ 124,378,606 120,165,415 3.51% * Includes City related entities (FCC, NewMarket, eNovations) surplus', not available for City use

CITY OF FREDERICTON

7.90% 8.00% 7.60% 6.98% 6.45% 6.56%

6.00% 5.03% 5.15%

4.00% 3.51% 3.29% 3.34% 2.86% 2.74% 2.76% 2.13% 2.00% 1.36% 1.34%

0.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2020 REVENUE CHANGES

Approved Proposed Description $ Change % Change Variance Explanation 2019 Budget 2020 Budget Interest on Investments 175,000 175,000 - 0% Interest On Past Due Accounts 4,500 4,500 - 0% Credit Card Cash Back 40,000 50,000 10,000 25% Increase in payment through Pcard resulting in higher cash back Financial Management Total 219,500 229,500 10,000 Municipal By-Law Fines 476,440 450,440 (26,000) -5% Discontinued use of Meter Smart Cards. Offset by additional revenue in Core Meter Smart Card Revenue 13,000 - (13,000) -100% Area Meters Core Area Meters 650,000 665,000 15,000 2% Increase based on usage Tannery Parking Lot 30,000 31,000 1,000 3% Increase based on usage Queen St. Lot (Cor. Queen & Westmorland) 53,000 53,000 - 0% Officers Square - Monthly Permits 11,391 16,000 4,609 40% Increase in monthly rate from $105 to $115 Officers Square - Daily Receipts 44,000 46,000 2,000 5% Increase based on usage Upper Queen (Lofood/Legion) 21,261 33,391 12,130 57% Increase in monthly rate from $60.00 to $80.00 Isaac's Way Lot 18,000 22,000 4,000 22% Increase due to additional spaces and based on usage York St. - Monthly Passes 49,487 51,600 2,113 4% Increase in monthly rate from $110 to $115 York St. - Daily Receipts 247,000 250,000 3,000 1% Increase based on usage Frederick Square - Monthly Passes 252,826 302,609 49,783 20% Increase in monthly rate from $80 to $100 Frederick Square - Daily Receipts 110,000 118,000 8,000 7% Increase based on usage East End Garage - Monthly Passes 242,435 269,217 26,782 11% Increase in monthly rate from $110 to $120 East End Garage - Daily Receipts 215,000 255,000 40,000 19% Increase based on usage Parking Management Total 2,433,840 2,563,257 129,417 Library Room Rental 1,500 1,500 - 0% Photocopier Recovery 6,800 6,800 - 0% Cultural Development Total 8,300 8,300 - Development Fees 75,000 78,000 3,000 4% Based on actual experience Development Approval Total 75,000 78,000 3,000 NYC Revenue 24,000 24,000 - 0% Indoor Pool - Program 162,117 167,117 5,000 3% Shift in revenue from General Admissions to Programs Indoor Pool - General Admissions 101,930 96,930 (5,000) -5% Shift in revenue from General Admissions to Programs Leisure and Recreation Development and Delivery Total 288,047 288,047 -

Approved Proposed Description $ Change % Change Variance Explanation 2019 Budget 2020 Budget Community Facilities 11,500 11,500 - 0% Community Facilities - O'Dell Lodge 19,855 19,855 - 0% Com Fac - Small Craft Aquatic Center 2,000 2,000 - 0% Community Schools 113,100 113,100 - 0% Killarney Lake Rotary Lodge 48,110 48,110 - 0% Outside User Fees (Arenas) 545,587 566,499 20,912 4% Increase based on assessment value of properties in the catchment areas ATM Revenue 7,500 7,500 - 0% Ice Rental - Lady Beaverbrook Rink 240,820 228,358 (12,462) -5% Based on actual scheduling of ice time Arena Infrastructure Fees ($10./hr ice rental) 17,530 16,430 (1,100) -6% Based on actual scheduling of ice time Ice Rental - York Arena 147,385 150,540 3,155 2% Based on actual scheduling of ice time Arena Infrastructure Fees ($10./hr ice rental) 10,790 10,860 70 1% Based on actual scheduling of ice time Canteen Rental - Willie O'Ree Place 6,000 6,000 - 0% Ice Rental - Willie O'Ree Place 433,380 438,165 4,785 1% Based on actual scheduling of ice time Building Rentals - Willie O'Ree Place 8,500 8,500 - 0% Community Room Rentals - Willie O'Ree Place 14,339 14,339 - 0% Advertising Revenue - Willie O'Ree Place 5,000 5,000 - 0% YMCA Lease Agreement - Willie O'Ree Place 37,629 28,000 (9,629) -26% Based on new agreement signed in 2019 Arena Infrastructure Fees ($10./hr ice rental) 31,720 32,560 840 3% Based on actual scheduling of ice time Canteen Rental - Grant*Harvey 3,500 3,500 - 0% Ice Rental - Grant*Harvey 362,160 384,435 22,275 6% Based on actual scheduling of ice time Pouring Rights 16,000 16,000 - 0% Community Room Rentals - Grant•Harvey Centre 6,200 6,200 - 0% Advertising Revenue 18,000 18,000 - 0% Arena Infrastructure Fees ($10./hr ice rental) 27,340 29,340 2,000 7% Based on actual scheduling of ice time Sports field Fees 61,824 61,824 - 0% Includes increase to Royals Field Game Fee from $36 to $43.20 per game Scotiabank Park North/South Naming Rights 150,000 150,000 - 0% Turf Fields 85,764 85,764 - 0% Recreation Facility Scheduling Total 2,431,533 2,462,379 30,846

Approved Proposed Description $ Change % Change Variance Explanation 2019 Budget 2020 Budget Transit Charters 25,000 25,000 - 0% Chartered Busing Total 25,000 25,000 - ParaTransit 30,000 32,000 2,000 7% Based on increased usage ParaTransit Total 30,000 32,000 2,000 Transit Fareboxes 450,000 480,000 30,000 7% Based on increased ridership Transit Pass Sales 580,000 640,000 60,000 10% Based on increased pass sales Transit Advertising 125,000 125,000 - 0% Transit Rider cards 390,000 405,000 15,000 4% Based on increased card sales STU U-Pass Program 210,000 260,300 50,300 24% Based on new agreement UNB Grad Student U-Pass Program 80,000 100,750 20,750 26% Based on new agreement NBCCD U-Pass Program - 30,000 30,000 N/A Based on new agreement Fixed Route Scheduled Transit Total 1,835,000 2,041,050 206,050 Roads and Streets - Provincial Routes 348,954 355,314 6,360 2% Based on rates provided by PNB Maintenance of Westmorland Street Bridge 54,641 54,641 - 0% Roadway Management Total 403,595 409,955 6,360 Operators 14,000 14,000 - 0% Drivers 12,000 - (12,000) -100% Based on recommendation to eliminate fees for Taxi drivers Taxi Industry Regulation Total 26,000 14,000 (12,000) 911 Dispatch (Woodstock) 64,000 64,000 - 0% Regional Fire Dispatch 524,129 527,138 3,009 1% Based on Agreement 911 PSAP Contract 535,221 539,768 4,547 1% Based on Agreement Public Safety Service Request Management Total 1,123,350 1,130,906 7,556 Dog Tags 14,000 10,000 (4,000) -29% Based on actual demand Impoundment Fees 1,500 1,500 - 0% Animal Registration & Control Total 15,500 11,500 (4,000) Plumbing Inspection Fees 130,000 110,000 (20,000) -15% Based on anticipated construction Building Permits 1,090,499 880,000 (210,499) -19% Based on anticipated construction Review of Property Files for Legal 17,000 17,000 - 0% Building Construction Permission & Enforcement Total 1,237,499 1,007,000 (230,499) Municipal By-Law Fines 26,000 26,000 - 0% By-law Enforcement Total 26,000 26,000 -

Approved Proposed Description $ Change % Change Variance Explanation 2019 Budget 2020 Budget St. Mary's First Nation Fire Services 279,868 286,901 7,033 3% Based on Agreement Based on Agreement, Fredericton's tax base growing more quickly than outside Fire (To LSD's) 939,319 925,240 (14,079) -1% areas Fire Prevention Revenue 16,050 5,000 (11,050) -69% Based on less demand for administrative services Haz Mat Supplies Recovery 107,000 107,000 - 0% Fire Emergency Incident Mitigation Total 1,342,237 1,324,141 (18,096) Fingerprinting (Police) 4,000 4,000 - 0% Security Clearance 66,000 66,000 - 0% Police Incident Prevention Total 70,000 70,000 - Sale Of Unclaimed Goods 2,000 2,000 - 0% False Alarms (Police) 7,000 7,000 - 0% Saint Mary's First Nation Policing Recovery 536,934 583,246 46,312 9% Based on Agreement Police Incident Response Total 545,934 592,246 46,312 Business 1,000 1,000 - 0% Municipal Licensing Total 1,000 1,000 - Property Tax Revenue 103,924,273 108,183,452 4,259,179 4% Based on a 4.09% Assessment Increase Community Funding and Equalization (Unconditional) Grant 1,832,790 1,890,636 57,846 3% Adjustment to base funding Payment in Lieu of Taxes (Federal) - 1,742 1,742 N/A Prior year was an expense 2018 surplus brought into 2020 budget per legislation. Includes $384,183 related to Fredericton Convention Center, NewMarket and eNovations. This money is not available for general City use, a corresponding expenditure is included in the Consolidated Surplus (2nd Previous Year) 2,271,017 1,988,495 (282,522) -12% budget for future capital needs within these entities. General Revenue Total 108,028,080 112,064,325 4,036,245 Total General Fund Revenue 120,165,415 124,378,606 4,213,191 3.51%

This page intentionally left blank

2020 NON-TAX REVENUE RATE CHANGES

Last Current Proposed Revenue Description Increase 2019 2020 Impact Royals Field Cost per Game 2019 $36.00 $43.20 $ 500 Frederick Square Garage Monthly Permit Fee * 2019 $80.00 $100.00 East End Garage Monthly Permit Fee * 2019 $110.00 $120.00 York Parking Lot Monthly Permit Fee * 2019 $110.00 $115.00 $ 95,460 Officer's Square Parking Lot Monthly Permit Fee * 2019 $105.00 $115.00 Upper Queen Parking Lot Monthly Permit Fee * 2019 $60.00 $80.00

Net Budget Impact $ 95,960

* Effective February 1, 2020 , remaining rate is effective January 1, 2020

This page intentionally left blank

2020 COMMUNITY FUNDING EQUALIZATION GRANT AS % OF BUDGET

2020 COMMUNITY FUNDING EQUALIZATION GRANT

City of Fredericton Community Funding & Equalization (Unconditional) Grant 2000 - 2020 $7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

2020 COMMUNITY FUNDING EQUALIZATION GRANT TREND COMMUNITY GRANT AS GROSS FUNDING & % OF YEAR BUDGET EQUALIZATION GROSS GRANT BUDGET 2000 54,407,458 6,902,156 12.69% 2001 55,827,789 6,211,671 11.13% 2002 57,468,529 6,211,671 10.81% 2003 59,045,135 6,211,671 10.52% 2004 62,969,186 5,590,504 8.88% 2005 67,028,170 5,590,504 8.34% 2006 71,424,779 5,590,504 7.83% 2007 77,064,425 5,702,314 7.40% 2008 82,445,566 5,816,360 7.05% 2009 88,708,301 5,816,360 6.56% 2010 93,173,545 5,816,360 6.24% 2011 97,972,486 5,758,196 5.88% 2012 101,565,122 5,643,032 5.56% 2013 104,094,373 4,294,351 4.13% 2014 106,313,245 2,994,192 2.82% 2015 108,560,122 1,713,004 1.58% 2016 111,747,186 1,756,295 1.57% 2017 113,158,309 1,800,174 1.59% 2018 116,918,458 1,821,738 1.56% 2019 120,165,415 1,832,790 1.53% 2020 124,378,606 1,890,636 1.52%

2020 UNCONDITIONAL GRANT COMPARISON BETWEEN CITIES

2018 - 2020 UNCONDITIONAL GRANT COMPARISON BETWEEN CITIES

3 CITIES COMMUNITY FUNDING EQUALIZATION GRANT PER CAPITA COMPARISON

2020 EXPLANATION OF COMMUNITY FUNDING & EQUALIZATION GRANT PROVINCE OF NEW BRUNSWICK COMMUNITY FUNDING & EQUALIZATION GRANT

Two components:

1. Core Funding 2. Equalization

The City of Fredericton received $1,890,636 in Core Funding and zero from Equalization.

Approved 2019 Approved 2020 DESCRIPTION $ Change % Change Budget Budget Community Funding and Equalization (Unconditional) Grant (1,832,790) (1,890,636) (57,846) 3%

THE CORE FUNDING COMPONENT

In 2020, $13,448,775 was distributed based on proportion of non-residential tax base (16 cents). This amount was not tied to expenditure need or capacity, provides funding to all municipalities and supports urban areas. The principles addressed are predictability, stability, simplicity, neutrality and accountability. Fredericton received $1,890,636 of the Core Funding component.

THE EQUALIZATION COMPONENT

In 2020, the pool is set at $53,233,424. This amount is tied to expenditure need and fiscal capacity. The principles addressed are equity, flexibility, neutrality, stability* and predictability*. *Predictability and stability of the total funding level and formula for allocation

Fredericton received zero ($0) from the equalization component.

THE EQUALIZATION COMPONENT – ELEMENTS

• Groups of Municipalities • Fredericton is in Group A with Moncton and Saint John • Fredericton gets $0 • Moncton gets $0 • Saint John gets $14.62 Million • Standard Expenditure • Density Adjustment (based on population/road km) • Equalization requirement (supposed to help maintain stable/average tax rate, etc.) • Policing Adjustment for municipalities under the Provincial policing services agreement (PPSA) • (N/A for Cities)  Adjustment for available funding

THE EQUALIZATION COMPONENT – STANDARD EXPENDITURE

• Certain costs removed from net budget to avoid double equalization and to control for neutrality: • Environmental Development Services (includes land use planning, economic development and tourism) • Cost of Assessment • Water Cost Transfer

2020 GFEG FOR NB CITIES

Local Governments 2019 Tax Base 2020 Tax Base 2018-2019 Core Funding Equalization Total Grant Growth (Loss) Component Component BATHURST 1,054,828,400 1,079,066,793 24,238,393 289,929 3,334,773 3,624,702 CAMPBELLTON 596,394,900 601,598,450 5,203,550 86,268 1,803,029 1,889,297 DIEPPE 3,158,918,100 3,272,404,203 113,486,103 1,095,459 - 1,095,459 EDMUNDSTON 1,436,009,300 1,450,782,700 14,773,400 354,473 5,210,347 5,564,820 FREDERICTON 7,303,077,073 7,601,756,637 298,679,564 1,890,636 - 1,890,636 MIRAMICHI 1,513,668,000 1,541,422,300 27,754,300 428,407 5,839,821 6,268,228 MONCTON 8,371,165,050 8,712,175,550 341,010,500 3,108,999 - 3,108,999 SAINT JOHN 6,923,084,249 7,050,026,572 126,942,323 2,588,366 14,616,390 17,204,756

TOTAL 50,649,579,828 52,091,145,505 1,441,565,677 13,448,775 53,233,424 66,682,199

Source: PNB website https://www2.gnb.ca/content/gnb/en/news/news_release.2019.11.0604.html

NEWS RELEASE Environment and Local Government

COMMUNITY FUNDING AND EQUALIZATION GRANTS ANNOUNCED FOR 2020

20 November 2019

FREDERICTON (GNB) – Local governments and local service districts will receive more than $75.5 million in community funding and equalization grants from the provincial government in 2020, an increase of about $416,000 over last year.

“We are pleased to share this information with local governments and local service districts as they prepare their budgets for the coming year,” said Environment and Local Government Minister Jeff Carr. “As we embark on property tax reform and other municipal reforms it will be important to work with our communities to ensure we give them the tools and flexibility they need to develop and grow.”

Local governments will have a core funding component of $13.5 million and an equalization component of about $53.2 million.

Local service districts will receive core funding of $2.6 million and a police equalization component of $4.4 million.

The community funding and equalization grant formula also includes a calculation for policing costs for communities served by the RCMP under the Provincial Police Service Agreement.

The list of Community Funding and Equalization Grants for municipalities and rural communities, and the list of municipal tax bases are available online.

Having vibrant and sustainable communities is one of the government’s key priorities. More information about the government’s priorities and measurements is available online.

2020

[PROPERTY TAX INFORMATION] City of Fredericton property tax base information for 2020 including historical comparison of the tax base and property tax rate, the formula for calculating the tax rate, and the estimated average tax bill increase. Includes information from Service New Brunswick on the 2020 Municipal and Rural Community Funding and Equalization Grant and Tax Base. Business Improvement Area tax rate and budget are provided. 64

CONTENTS 2020 General Fund Revenue ...... 62 Property Tax Base Growth ...... 63 Tax Base Increase Breakdown by Market Assessment and New Construction – ...... 64 Growth in the Property Tax Base ...... 65 Market Assessments Compared to NB CPI ...... 65 Market Assessment Vs. new Construction Increase ...... 66 Property Tax Base (Assessment) ...... 67 City of Fredericton – 2020 Financial Information ...... 68 Comparative Data for Warrant to be Raised by Tax Rate ...... 69 Tax Base for Rate (Inside and Outside) ...... 70 Formula For Calculation of Tax Rate 2020 ...... 71 Tax Rates 2010 – 2020 ...... 72 This page has been left blank intentionally ...... 73 2020 Property Tax Rates ...... 74 2020 Estimated Average Property Tax Bill ...... 75 SNB Assessments and Tax Base ...... 76 Downtown Fredericton Inc. 2020 Budget ...... 84 Business Fredericton North 2020 Budget ...... 85

2020 GENERAL FUND REVENUE WHERE THE MONEY COMES FROM

Residential Property Tax $ 64,162,998 51.6% Non-Residential Property Tax (Commercial) $ 44,020,454 35.4% Unconditional Grant $ 1,890,636 1.5% User Charges, Licenses, Fees, Fines & Other $ 14,304,518 11.5% $ 124,378,606

PROPERTY TAX BASE GROWTH

TAX BASE CITY OF FREDERICTON Property Tax Base Growth Year Tax Base % Change % Change 1990 2,273,085,650 11.61% 1991 2,477,563,200 9.00% 1992 2,606,858,150 5.22% 10.00% 1993 2,665,513,350 2.25% 1994 2,691,196,600 0.96% 9.00% 8.48% 8.56% 1995 2,760,830,500 2.59% 1996 2,796,200,150 1.28% 7.92% 1997 2,841,290,850 1.61% 8.00% 7.67% 7.28% 1998 2,922,028,500 2.84% 6.96% 1999 2,980,024,100 1.98% 7.00% 2000 3,067,724,255 2.94% 2001 3,138,633,450 2.31% 2002 3,228,429,489 2.86% 6.00% 5.43% 2003 3,345,073,426 3.61% 4.88% 4.88% 2004 3,628,724,282 8.48% 4.88% 5.00% 2005 3,906,904,494 7.67% 2006 4,178,933,263 6.96% 4.09% 3.85% 2007 4,536,560,139 8.56% 4.00% 3.61% 2008 4,866,745,536 7.28% 3.12% 2.94% 2009 5,252,355,062 7.92% 2.84% 2.86% 3.00% 2.70% 2010 5,537,706,643 5.43% 2.31% 2011 5,807,716,114 4.88% 1.98% 2.14% 2012 6,091,366,212 4.88% 1.69% 2.00% 1.61% 1.38% 2013 6,392,645,032 4.95% 2014 6,638,900,004 3.85% 2015 6,818,360,822 2.70% 1.00% 2016 6,933,624,190 1.69% 2017 7,029,225,653 1.38% 0.00% 2018 7,082,276,288 2.14% 2019 7,303,077,073 3.12% 2020 7,601,756,637 4.09%

TAX BASE INCREASE BREAKDOWN BY MARKET ASSESSMENT AND NEW CONSTRUCTION –

GROWTH IN THE PROPERTY TAX BASE

MARKET ASSESSMENTS COMPARED TO NB CPI

MARKET ASSESSMENT VS. NEW CONSTRUCTION INCREASE

CITY OF FREDERICTON INSIDE & OUTSIDE TAX BASE FOR RATE MARKET ASSESSMENT VS. NEW CONSTRUCTION INCREASE RESIDENTIAL VS. NON-RESIDENTIAL ASSESSMENT CHANGES

2019 2020 Difference % Difference

General Residential Property $4,366,267,475 $4,508,559,200 $142,291,725 3.26% Provincial Residential Property 880,055,100 889,975,800 $9,920,700 1.13% Federal Residential Property 3,292,900 3,551,000 $258,100 7.84% Non-Provincial Rate Residential Property $33,673,500 $34,394,600 $721,100 2.14% Total Residential $5,283,288,975 $5,436,480,600 $153,191,625 2.90%

General Non-Residential $1,702,515,900 $1,815,352,950 $112,837,050 6.63% Provincial Non-Residential 265,370,550 297,111,150 $31,740,600 11.96% Federal Non-Residential 51,701,248 52,605,837 $904,589 1.75% Non-Provincial Non-Residential 200,400 206,100 $5,700 2.84%

Total Non-Residential $2,019,788,098 $2,165,276,037 $145,487,939 7.20%

Total Inside & Outside Tax Base for Rate $7,303,077,073 $7,601,756,637 $298,679,564 4.09%

Overall Total % of Overall Description Amount Total Increase % of Total % Increase Increase Market Value Adjustments $195,455,907 298,679,564 65% 4.09% 2.68% New Construction 103,223,657 298,679,564 35% 4.09% 1.41% Total Tax Base Increase $298,679,564 100.00% 4.09%

PROPERTY TAX BASE (ASSESSMENT) BREAKDOWN FOR PERIOD 2003 – 2020

CITY OF FREDERICTON PROPERTY TAX BASE (ASSESSMENT) Breakdown for Period 2003 - 2020

RESIDENTIAL % NON-RESIDENTIAL % TOTAL TOTAL TOTAL YEAR TAX BASE CHANGE TAX BASE CHANGE TAX BASE % CHANGE $ CHANGE 2003 $2,258,929,000 3.69% $1,086,144,426 3.45% $3,345,073,426 3.61% $116,643,937 2004 $2,495,808,400 10.49% $1,132,915,882 4.31% $3,628,724,282 8.48% $283,650,856 2005 $2,697,296,994 8.07% $1,209,607,500 6.77% $3,906,904,494 7.67% $278,180,212 2006 $2,928,464,300 8.57% $1,250,468,963 3.38% $4,178,933,263 6.96% $272,028,769 2007 $3,216,338,000 9.83% $1,320,222,139 5.58% $4,536,560,139 8.56% $357,626,876 2008 $3,475,188,000 8.05% $1,391,557,536 5.40% $4,866,745,536 7.28% $330,185,397 2009 $3,730,235,200 7.34% $1,522,119,862 9.38% $5,252,355,062 7.92% $385,609,526 2010 $3,971,226,500 6.46% $1,566,480,143 2.91% $5,537,706,643 5.43% $285,351,581 2011 $4,192,356,500 5.57% $1,615,359,614 3.12% $5,807,716,114 4.88% $270,009,471 2012 $4,386,572,900 4.63% $1,704,793,312 5.54% $6,091,366,212 4.88% $283,650,098 2013 $4,595,310,800 4.76% $1,797,334,232 5.43% $6,392,645,032 4.95% $301,278,820 2014 $4,840,957,200 5.35% $1,797,942,804 0.03% $6,638,900,004 3.85% $246,254,972 2015 $4,939,551,100 2.04% $1,878,809,722 4.50% $6,818,360,822 2.70% $179,460,818 2016 $4,998,560,200 1.19% $1,935,063,990 2.99% $6,933,624,190 1.69% $115,263,368 2017 $5,074,139,200 1.51% $1,955,086,453 1.03% $7,029,225,653 1.38% $95,601,463 2018 $5,128,020,340 2.59% $1,954,255,948 0.99% $7,082,276,288 2.14% $148,652,098 2019 $5,283,288,975 4.12% $2,019,788,098 3.31% $7,303,077,073 3.90% $273,851,420 2020 $5,436,480,600 2.90% $2,165,276,037 7.20% $7,601,756,637 4.09% $519,480,349 *The above figures include the Federal Grant-in-Lieu property assessments from 1997 onward. 2020 Summary Residential Tax Base Increase $153,191,625 Non-Residential Tax Base Increase $145,487,939 Total Tax Base Increase $298,679,564

CITY OF FREDERICTON – 2020 FINANCIAL INFORMATION CITY OF FREDERICTON FINANCIAL INFORMATION FOR 2020

2019 2020 Variance Change Unconditional Grant $ 1,832,790 $ 1,890,636 $ 57,846 3.16% Non-tax Revenue including FPILT $ 14,408,352 $ 14,304,518 $ (103,834) (0.72)% Tax Base 7,303,077,073 7,601,756,637 $ 298,679,564 4.09% Expenditures $ 120,165,415 $ 124,378,606 $ 4,213,191 3.51%

Revenues: Unconditional Grant $ 1,832,790 $ 1,890,636 $ 57,846 3.16% Non-tax $ 14,408,352 $ 14,304,518 $ (103,834) (0.72)% Warrant $ 103,924,273 $ 108,183,452 $ 4,259,179 4.10%

Total Revenues $ 120,165,415 $ 124,378,606 $ 4,213,191 3.51%

Total Expenditures $ 120,165,415 $ 124,378,606 $ 4,213,191 3.51%

Property Tax Base (Combined) $ 7,303,077,073 $ 7,601,756,637 $ 298,679,564 4.09%

Inside Tax Base 7,138,582,473 7,433,024,337 $ 294,441,864 4.12% Inside Rate 1.4311 1.4311 0.00000

Outside Tax Base 164,494,600 168,732,300 $ 4,237,700 2.58% Outside Rate $ 1.0733 $ 1.0733 0.00000

Tax Rate (Combined) $ 1.4230 $ 1.4231 0.0001

2019 2020 Inside Warrant 102,158,738 106,372,433 Outside Warrant 1,765,535 1,811,019 103,924,273 108,183,452 2020 1¢ on the Tax Rate = 760,176 68

COMPARATIVE DATA FOR WARRANT TO BE RAISED BY TAX RATE

CITY OF FREDERICTON 2020 BUDGET Comparative Data for Warrant to be Raised by Tax Rate

2019 2020 Variance $ Variance Gross Expenditures $120,165,415 $124,378,606 $4,213,191 3.51% Less Non-Tax Revenue (including FPILT) 14,408,352 14,304,518 -103,834 (0.72%) Net Budget $105,757,063 $110,074,088 $4,317,025 4.08% Less Unconditional Transfer 1,832,790 1,890,636 57,846 3.16% Warrant to be Raised by a Local Rate $103,924,273 $108,183,452 $4,259,179 4.10%

REVENUES Unconditional Grant $1,832,790 $1,890,636 57,846 3.16% Non-Tax Revenue (including FPILT) 14,408,352 14,304,518 (103,834) (0.72%) Warrant 103,924,273 108,183,452 4,259,179 4.10% Total Revenues $120,165,415 $124,378,606 $4,213,191 3.51%

Property Tax Base for Rate (Inside) $7,138,582,473 $7,433,024,337 $294,441,864 4.12% Property Tax Base for Rate (Outside) 164,494,600 168,732,300 4,237,700 2.58% Total Tax Base $7,303,077,073 $7,601,756,637 $298,679,564 4.09%

Property Tax Rate (Inside) $1.4311 $1.4311 $0.0000 Property Tax Rate (Outside) $1.0733 $1.0733 $0.0000

TAX BASE FOR RATE (INSIDE AND OUTSIDE)

The City of Fredericton Tax Base for Rate (Inside and Outside) 2019 2020 Change INSIDE Property Tax Base - Residential $ 5,145,119,675 $ 5,294,684,100 2.91% Property Tax Base - Non-Residential $ 1,340,994,900 $ 1,442,356,500 7.56% Total Tax Base $ 6,486,114,575 $ 6,737,040,600 3.87% Plus 1/2 Non-Residential $ 670,497,450 $ 721,178,250 Total Municipal Tax Base $ 7,156,612,025 $ 7,458,218,850 4.21% Adjustment to Federal Tax Base ($ 18,029,552) ($ 25,194,513) Tax Base for Rate $ 7,138,582,473 $ 7,433,024,337 4.12% OUTSIDE Property Tax Base - Residential $ 138,169,300 $ 141,796,500 2.63% Property Tax Base - Non-Residential $ 17,550,200 $ 17,957,200 2.32% Total Tax Base $ 155,719,500 $ 159,753,700 2.59% Plus 1/2 Non-Residential $ 8,775,100 $ 8,978,600 Total Municipal Tax Base $ 164,494,600 $ 168,732,300 2.58% Adjustment to Federal Base $ - $ - Tax Base for Rate $ 164,494,600 $ 168,732,300 2.58%

TOTAL TAX BASE FOR RATE $ 7,303,077,073 $ 7,601,756,637 4.09%

Residential Tax Base $ 5,283,288,975 $ 5,436,480,600 2.90% Non-Residential Tax Base $ 2,019,788,098 $ 2,165,276,037 7.20%

$ 7,303,077,073 $ 7,601,756,637 4.09% 70

FORMULA FOR CALCULATION OF TAX RATE 2020

CITY OF FREDERICTON FORMULA FOR CALCULATION OF TAX RATE 2020

TAX BASE PER DEPARTMENT OF ENVIRONMENT AND LOCAL GOVERNMENT

Inside Tax Base for Rate: $7,433,024,337 Outside Tax Base for Rate: $168,732,300 TOTAL $7,601,756,637

CALCULATION

Step 1 Take 75 % of outside tax base plus inside tax base $7,559,573,562 Step 2 Divide the warrant revenue #REF! by the new tax base calculated in Step 1 1.4311 Step 3 Take 75% of the inside rate calculated in Step 2 1.0733 Multiply the inside tax base by the rate calculated in Step 2 divided by 100 (This is the inside Step 4 warrant revenue) 106,372,433 Multiply the outside tax base by the rate calculated in Step 3 divided by 100 (This is the outside Step 5 warrant revenue) 1,811,019 $108,183,452

SUMMARY

Inside Warrant $106,372,433 Outside Warrant $1,811,019 TOTAL WARRANT $108,183,452 71

TAX RATES 2010 – 2020

This page has been left blank intentionally

2020 PROPERTY TAX RATES 2020 PROPERTY TAX RATES NON-RESIDENTIAL (COMMERCIAL) 1). *Inside City Rate 1.4311 x 1.5 = 2.1467 2). (a) Provincial Tax Rate 1.4573 x 1.5 = 2.1860 3). Provincial Tax Rate (Assessment & Collection) 0.0194 4). Subtotal $4.3521 5). Business Improvement Area (BIA) 0.2000 6). Total Provincial Rate (Commercial) $4.5521 NON-OWNER OCCUPIED RESIDENTIAL 1). *Inside City Rate 1.4311 2). (b) Provincial Tax Rate 1.1233 3). Provincial Tax Rate (Assessment & Collection) 0.0194 4). Subtotal $2.5738 5.) Residential Tenancy Administration Fee 0.0486 6). Total Rate - Non-Owner Occupied $2.6224 RESIDENTIAL Inside Outside 1). City Rate $1.4311 $1.0733 2). Provincial Rate 1.1233 1.1233 3). Provincial Rate (Assessment & Collection) 0.0194 0.0194 4). Subtotal 2.5738 2.2160 5). Less Provincial Tax Credit (1.1233) (1.1233) 6). Total Tax Bill $1.4505 $1.0927

NOTES: *City receives the revenue. The 1.5 represents the business tax rate. *The above Property Tax Rates apply to all properties (land & buildings) within the City limits, per $100 of assessment. *Depending on the zoning, the City generally pays the Commercial Property Tax Rate (2 & 3 above). *The City also pays the BIA Rate of 20¢ on some buildings, such as City Hall, Police Station, Convention Centre and Parking Garages. *Residential Tenancy Administration Fee came into effect on 1992 December 11—which is a fee for the cost of the Rentalsman Office. *The combined tax base assessment 2020 over 2019 was increased by 4.09%. *The base used for 2020 to set the Tax Rate was $7,601,756,637 which included Federal properties. NON-RESIDENTIAL TAX RATE: *PNB levies a property tax on non-residential (commercial) property within municipal boundaries. A development in the downtown core pays a total rate of $4.5521. Of that total, the City of Fredericton collects $2.1467, or 49% of the total tax charged. PNB collects the majority of the property tax in the form of the Provincial Tax Rate, i.e. $2.1860 + 0.0194 = $2.205 per $100 of assessment. The BIA levy of 0.20 is a tax imposed upon businesses by themselves through Downtown Fredericton Inc. (a)Using PNB's 2020 rates. There was a 33¢ rate reduction to be phased-in over four years from 2013 - 2016. However, the rate reduced from $2.186 to $2.1035 in 2013; to $2.0210 in 2014; and in 2015, the rate returned to the original 2013 rate of $2.1860; remains unchanged for 2016 - 2020. (b) Using PNB's 2020 rates. There was a 33.4¢ rate reduction phased-in over four years 2013 - 2016, with the rate reduced from $1.4573 to $1.3973 in 2013; to $1.3373 in 2014; to $1.2773 in 2015; to $1.1233 in 2016; remains unchanged for 2017 - 2020.

2020 ESTIMATED AVERAGE PROPERTY TAX BILL

PROPERTY TAX BILL AVERAGE ASSESSMENT INCREASE EXAMPLE Assessed Value Based 2019 Inside Rate @ 2020 Inside Rate @ Assessed 2019 Upon Ave. Market Annual $1.4311 with Ave. Market $1.4311 with Ave. Market Value Assessment Increase of Change Assessment Increase Assessment Increase 2.68% 200,000 $2,862 205,360 $2,939 $77 250,000 $3,578 256,700 $3,674 $96 300,000 $4,293 308,040 $4,408 $115 400,000 $5,724 410,720 $5,878 $153

Cost of Assessment - coût de l'évaluation

Municipal Tax Cost of Municipality / Municipalité Base For Rate Assessment 2020 2020 Assiette fiscale Coût de municipale l'évaluation pour le taux

1 Bathurst 1,079,066,793 209,339 2 Campbellton 601,598,450 116,710 3 Dieppe 3,272,404,203 634,846 4 Edmundston 1,450,782,700 281,452 5 Fredericton 7,601,756,637 1,474,741 6 Miramichi 1,541,422,300 299,036 7 Moncton 8,712,175,550 1,690,162 8 Saint John 7,050,026,572 1,367,705

CITY TOTAL / TOTAL DE CITÉ 31,309,233,205 6,073,991

9 Beresford 288,508,350 55,971 10 Bouctouche 222,999,000 43,262 11 Caraquet 393,537,650 76,346 12 Dalhousie 229,194,000 44,464 13 Florenceville-Bristol 223,537,300 43,366 14 Grand Bay-Westfield 382,520,350 74,209 15 Grand-Sault/Grand Falls 554,786,400 107,629 16 Hampton 369,950,800 71,770 17 Hartland 85,446,400 16,577 18 Lamèque 98,664,100 19,141 19 Nackawic 93,299,500 18,100 20 Oromocto 1,221,435,050 236,958 21 Quispamsis 1,800,765,800 349,349 22 Richibucto 112,602,550 21,845 23 Riverview 1,561,936,900 303,016 24 Rothesay 1,330,037,450 258,027 25 Sackville 657,431,000 127,542 26 Saint Andrews 328,967,400 63,820 27 Saint-Léonard 80,009,200 15,522 28 Saint-Quentin 136,251,700 26,433 29 Shediac 709,243,100 137,593 30 Shippagan 242,721,900 47,088 31 St. George 139,243,600 27,013 32 St. Stephen 341,926,900 66,334 33 Sussex 420,413,200 81,560 34 Woodstock 516,065,950 100,117

TOWN TOTAL / TOTAL DE VILLE 12,541,495,550 2,433,052

35 Alma 30,008,150 5,822 36 Aroostook 10,169,550 1,973 37 Atholville 235,296,700 45,648 38 Balmoral 102,229,150 19,832 39 Bas-Caraquet 73,994,600 14,355 40 Bath 22,047,600 4,277 41 Belledune 388,591,000 75,387 42 Bertrand 62,026,950 12,033 43 Blacks Harbour 58,710,000 11,390 44 Blackville 49,918,450 9,684 45 Cambridge-Narrows 96,433,550 18,708 46 Canterbury 13,790,150 2,675 47 Cap-Pelé 207,962,950 40,345 48 Centreville 37,196,300 7,216 49 Charlo 86,896,150 16,858 50 Chipman 68,803,450 13,348 51 Doaktown 57,388,500 11,133 52 Dorchester 59,559,000 11,554 53 Drummond 54,900,750 10,651 54 Eel River Crossing 84,354,600 16,365 55 Fredericton Junction 42,145,750 8,176 56 Gagetown 62,584,800 12,141 57 Grand Manan 207,806,800 40,315 58 Grande-Anse 37,456,950 7,267 59 Harvey 20,910,400 4,057 60 Hillsborough 86,547,250 16,790 61 Lac Baker 64,153,200 12,446 62 Le Goulet 27,168,800 5,271 63 Maisonnette 26,775,550 5,194 64 McAdam 50,766,100 9,849 65 Meductic 14,639,650 2,840 66 Memramcook 324,948,900 63,040 67 Millville 9,920,400 1,925 68 Minto 105,854,850 20,536 69 Neguac 129,930,000 25,206 70 New Maryland 353,014,900 68,485 71 Nigadoo 55,394,000 10,746 72 Norton 78,301,050 15,190 73 Paquetville 53,404,550 10,360 74 Perth-Andover 120,002,850 23,281 75 Petit-Rocher 109,897,700 21,320 76 Petitcodiac 92,473,300 17,940 77 Plaster Rock 61,429,500 11,917 78 Pointe-Verte 44,085,600 8,553 79 Port Elgin 25,126,600 4,875 80 Rexton 84,920,500 16,475 81 Riverside-Albert 22,566,800 4,378 82 Rivière-Verte 40,485,300 7,854 83 Rogersville 57,034,550 11,065 84 Saint-Antoine 113,371,600 21,994 85 Saint-Isidore 51,280,050 9,948 86 Saint-Louis de Kent 61,104,700 11,854 87 Saint-Léolin 20,959,800 4,066 88 Sainte-Anne-de-Madawaska 44,604,600 8,653 89 Sainte-Marie-Saint-Raphaël 34,006,150 6,597 90 Salisbury 181,064,150 35,126 91 St. Martins 22,316,000 4,329 92 Stanley 30,161,150 5,851 93 Sussex Corner 102,652,500 19,915 94 Tide Head 61,360,950 11,904 95 Tracy 25,877,750 5,020

VILLAGE TOTAL / TOTAL DE VILLAGE 4,958,783,550 962,003 Rural Comm. Tax Cost of Rural Community / Communauté rurale Base For Rate Assessment 2020 2020 Assiette fiscale Coût de de comm. rurale l'évaluation pour le taux

1 Beaubassin-est 655,293,050 127,127 2 Campobello Island 98,329,000 19,076 3 Cocagne 216,512,350 42,003 4 Hanwell 531,500,000 103,111 5 Haut-Madawaska 284,419,150 55,177 6 Kedgwick 120,446,000 23,367 7 Saint-André 188,978,350 36,662 8 Upper Miramichi 116,617,500 22,624

TOTAL RURAL COMMUNITY / TOTAL COMMUNAUTÉ RURALE 2,212,095,400 429,147

Reg. Muni. Tax Cost of Regional Municipality / Municipalité Régionale Base For Rate Assessment 2020 2020 Assiette fiscale Coût de de muni. région. l'évaluation pour le taux 1 Tracadie 1,069,537,800 207,490

TOTAL REGIONAL MUNICIPALITY / TOTAL MUNICIPALITÉ RÉGIONALE 1,069,537,800 207,490

TOTAL ALL GROUPS / TOTAL DES GROUPES 52,091,145,505 10,105,683 2020 Tax Bases and Community Funding and Equalization Grant

Assiettes fiscales et Subvention de financement et de péréquation communautaires 2020

2019-2020 Core Funding Equalization Local Government 2019 Tax Base 2020 Tax Base Total Grant Growth (Loss) Component Component

($) ($) Croissance Composante Assiette fiscale Assiette fiscale Composante Subvention Gouvernement local (Perte) financement de 2019 2020 péréquation totale 2019-2020 base

ALMA 28,648,950 30,008,150 1,359,200 4,917 0 4,917 AROOSTOOK 10,079,400 10,169,550 90,150 310 105,541 105,851 ATHOLVILLE 221,648,200 235,296,700 13,648,500 N/A N/A 290,668 BALMORAL 98,313,550 102,229,150 3,915,600 8,508 102,392 110,900 BAS-CARAQUET 70,540,400 73,994,600 3,454,200 13,906 150,428 164,334 BATH 21,823,200 22,047,600 224,400 2,697 99,542 102,239 BATHURST 1,054,828,400 1,079,066,793 24,238,393 289,929 3,334,773 3,624,702 BEAUBASSIN -EST 634,922,250 655,293,050 20,370,800 55,005 0 55,005 BELLEDUNE 387,300,156 388,591,000 1,290,844 345,656 0 345,656 BERESFORD 281,851,450 288,508,350 6,656,900 46,844 861,774 908,618 BERTRAND 60,016,750 62,026,950 2,010,200 2,515 197,461 199,976 BLACK'S HARBOUR 61,350,400 58,710,000 (2,640,400) 28,356 242,579 270,935 BLACKVILLE 48,914,000 49,918,450 1,004,450 4,951 203,821 208,772 BOUCTOUCHE 219,289,400 222,999,000 3,709,600 55,271 0 55,271 CAMBRIDGE-NARROWS 95,084,350 96,433,550 1,349,200 752 0 752 CAMPBELLTON 596,394,900 601,598,450 5,203,550 86,268 1,803,029 1,889,297 CAMPOBELLO 95,787,800 98,329,000 2,541,200 1,736 0 1,736 CANTERBURY 13,793,900 13,790,150 (3,750) 490 95,712 96,202 CAP PELE 202,512,650 207,962,950 5,450,300 44,403 156,530 200,933 CARAQUET 386,549,900 393,537,650 6,987,750 86,688 945,937 1,032,625 CENTREVILLE 37,140,250 37,196,300 56,050 14,221 20,579 34,800 CHARLO 83,860,300 86,896,150 3,035,850 6,656 91,476 98,132 CHIPMAN 66,972,900 68,803,450 1,830,550 22,940 311,870 334,810 COCAGNE 210,993,800 216,512,350 5,518,550 N/A N/A 9,222 DALHOUSIE 225,636,600 229,194,000 3,557,400 35,311 1,367,249 1,402,560 DIEPPE 3,158,918,100 3,272,404,203 113,486,103 1,095,459 0 1,095,459 DOAKTOWN 56,463,100 57,388,500 925,400 20,357 199,635 219,992 DORCHESTER 58,889,500 59,559,000 669,500 35,444 55,927 91,371 DRUMMOND 54,200,100 54,900,750 700,650 4,417 0 4,417 EDMUNDSTON 1,436,009,300 1,450,782,700 14,773,400 354,473 5,210,347 5,564,820 EEL RIVER CROSSING 83,177,250 84,354,600 1,177,350 N/A N/A 394,022 FLORENCEVILLE-BRISTOL 219,154,400 223,537,300 4,382,900 125,423 0 125,423 FREDERICTON 7,303,077,073 7,601,756,637 298,679,564 1,890,636 0 1,890,636 FREDERICTON JUNCTION 41,365,400 42,145,750 780,350 1,831 71,578 73,409 GAGETOWN 59,893,550 62,584,800 2,691,250 2,438 0 2,438 GRAND BAY-WESTFIELD 375,785,600 382,520,350 6,734,750 14,310 630,704 645,014 GRAND FALLS 549,086,700 554,786,400 5,699,700 187,245 606,365 793,610 GRAND MANAN 200,289,150 207,806,800 7,517,650 31,418 243,984 275,402 GRANDE ANSE 36,906,850 37,456,950 550,100 6,095 439,712 445,807 HAMPTON 365,177,400 369,950,800 4,773,400 37,627 179,842 217,469 HANWELL 515,571,650 531,500,000 15,928,350 N/A N/A 43,376 HARTLAND 85,793,250 85,446,400 (346,850) 31,198 12,174 43,372 HARVEY 19,996,800 20,910,400 913,600 2,480 40,010 42,490 HAUT-MADAWASKA 266,228,400 284,419,150 18,190,750 N/A N/A 184,959 HILLSBOROUGH 85,182,400 86,547,250 1,364,850 6,162 253,032 259,194 KEDGWICK 119,322,750 120,446,000 1,123,250 21,936 260,472 282,408 LAC BAKER 62,563,600 64,153,200 1,589,600 1,012 0 1,012 LAMEQUE 94,306,100 98,664,100 4,358,000 25,876 150,241 176,117 LE GOULET 26,661,250 27,168,800 507,550 828 239,171 239,999 MAISONNETTE 25,707,250 26,775,550 1,068,300 2,620 67,804 70,424 MCADAM 50,094,900 50,766,100 671,200 10,100 535,695 545,795 MEDUCTIC 14,152,550 14,639,650 487,100 6,172 16,211 22,383 MEMRAMCOOK 316,302,900 324,948,900 8,646,000 20,816 1,134,984 1,155,800 MILLVILLE 10,229,400 9,920,400 (309,000) 356 84,247 84,603 MINTO 104,275,800 105,854,850 1,579,050 16,180 959,858 976,038 MIRAMICHI 1,513,668,000 1,541,422,300 27,754,300 428,407 5,839,821 6,268,228 MONCTON 8,371,165,050 8,712,175,550 341,010,500 3,108,999 0 3,108,999 NACKAWIC 91,843,500 93,299,500 1,456,000 34,629 0 34,629

1 / 2 2020 Tax Bases and Community Funding and Equalization Grant

Assiettes fiscales et Subvention de financement et de péréquation communautaires 2020

2019-2020 Core Funding Equalization Local Government 2019 Tax Base 2020 Tax Base Total Grant Growth (Loss) Component Component

($) ($) Croissance Composante Assiette fiscale Assiette fiscale Composante Subvention Gouvernement local (Perte) financement de 2019 2020 péréquation totale 2019-2020 base NEGUAC 128,640,200 129,930,000 1,289,800 24,021 267,894 291,915 NEW MARYLAND 346,887,100 353,014,900 6,127,800 6,235 0 6,235 NIGADOO 54,425,850 55,394,000 968,150 6,626 108,755 115,381 NORTON 75,778,950 78,301,050 2,522,100 4,510 232,780 237,290 OROMOCTO 1,203,101,550 1,221,435,050 18,333,500 574,123 0 574,123 PAQUETVILLE 51,933,050 53,404,550 1,471,500 9,015 0 9,015 PERTH-ANDOVER 118,115,500 120,002,850 1,887,350 25,494 249,995 275,489 PETITCODIAC 91,222,250 92,473,300 1,251,050 14,418 324,797 339,215 PETIT-ROCHER 107,150,300 109,897,700 2,747,400 11,832 471,717 483,549 PLASTER ROCK 60,764,500 61,429,500 665,000 16,657 297,361 314,018 POINTE-VERTE 42,868,850 44,085,600 1,216,750 1,132 163,815 164,947 PORT ELGIN 24,245,600 25,126,600 881,000 5,838 30,877 36,715 QUISPAMSIS 1,748,060,900 1,800,765,800 52,704,900 114,304 0 114,304 REXTON 82,741,700 84,920,500 2,178,800 7,880 0 7,880 RICHIBUCTO 109,076,350 112,602,550 3,526,200 46,604 41,302 87,906 RIVERSIDE-ALBERT 22,183,850 22,566,800 382,950 859 19,567 20,426 RIVERVIEW 1,518,568,050 1,561,936,900 43,368,850 175,429 2,507,774 2,683,203 RIVIERE-VERTE 39,731,800 40,485,300 753,500 1,859 93,188 95,047 ROGERSVILLE 56,557,600 57,034,550 476,950 7,403 436,638 444,041 ROTHESAY 1,293,791,950 1,330,037,450 36,245,500 128,335 0 128,335 SACKVILLE 634,635,750 657,431,000 22,795,250 67,548 0 67,548 SAINT ANDREWS 319,920,050 328,967,400 9,047,350 64,748 0 64,748 SAINT JOHN 6,923,084,249 7,050,026,572 126,942,323 2,588,366 14,616,390 17,204,756 SAINT LÉONARD 79,221,750 80,009,200 787,450 16,251 317,951 334,202 SAINT-ANDRÉ 191,116,000 188,978,350 (2,137,650) 66,241 0 66,241 SAINT-ANTOINE 111,287,500 113,371,600 2,084,100 12,222 317,692 329,914 SAINTE-ANNE-DE-MADAWASKA 44,439,200 44,604,600 165,400 2,903 192,283 195,186 SAINTE-MARIE-SAINT-RAPHAËL 33,232,500 34,006,150 773,650 3,032 237,070 240,102 SAINT-ISIDORE 49,191,250 51,280,050 2,088,800 6,630 19,353 25,983 SAINT-LÉOLIN 20,108,550 20,959,800 851,250 511 225,206 225,717 SAINT-LOUIS-DE-KENT 60,167,050 61,104,700 937,650 8,338 99,983 108,321 SAINT-QUENTIN 134,930,500 136,251,700 1,321,200 20,941 417,366 438,307 SALISBURY 179,275,400 181,064,150 1,788,750 36,900 168,040 204,940 SHEDIAC 682,166,400 709,243,100 27,076,700 148,698 443,285 591,983 SHIPPAGAN 239,196,300 242,721,900 3,525,600 45,861 403,340 449,201 ST. GEORGE 136,418,100 139,243,600 2,825,500 41,178 87,196 128,374 ST. MARTINS 21,951,400 22,316,000 364,600 1,977 0 1,977 ST. STEPHEN 338,618,950 341,926,900 3,307,950 112,190 1,496,704 1,608,894 STANLEY 29,980,800 30,161,150 180,350 3,482 2,139 5,621 SUSSEX 415,421,200 420,413,200 4,992,000 149,387 423,440 572,827 SUSSEX CORNER 101,434,500 102,652,500 1,218,000 13,937 24,641 38,578 TIDE HEAD 60,489,900 61,360,950 871,050 1,249 41,134 42,383 TRACADIE 1,036,231,050 1,069,537,800 33,306,750 N/A N/A 883,414 TRACY 25,734,250 25,877,750 143,500 959 154,099 155,058 UPPER MIRAMICHI 112,830,850 116,617,500 3,786,650 4,432 286,722 291,154 WOODSTOCK 506,937,600 516,065,950 9,128,350 164,947 690,423 855,370

TOTAL 50,649,579,828 52,091,145,505 1,441,565,677 13,448,775 53,233,424 68,487,860

2 / 2

SNB ASSESSMENT AND TAX BASE COMPARISONS / SNB COMPARAISONS - ÉVALUATION ET ASSIETTE FISCALE TAXING AUTHORITY/AUTORITÉ TAXATRICE: 300 DESCRIPTION: Fredericton SUB UNIT CODE/SOUS-GROUPE: 01 DESCRIPTION: Fredericton (Inside/intérieur)

Muncipality Type: City 2019 2020 Difference %

GENERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS GÉNÉRAUX: 4,228,205,775 4,366,871,100 138,665,325 3.28 PROVINCIAL RESIDENTIAL / BIENS RÉSIDENTIELS PROVINCIAUX: 879,947,500 889,867,400 9,919,900 1.13 FEDERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS FÉDÉRAUX: 3,292,900 3,551,000 258,100 7.84 NON-PROV-RATE RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS RÉSIDENTIELS: 33,673,500 34,394,600 721,100 2.14

TOTAL RESIDENTIAL PROPERTY / TOTAL DES BIENS RÉSIDENTIELS: 5,145,119,675 5,294,684,100 149,564,425 2.91

GENERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS GÉNÉRAUX: 1,118,988,700 1,193,806,700 74,818,000 6.69 PROVINCIAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS PROVINCIAUX: 175,385,400 196,545,500 21,160,100 12.06 FEDERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS FÉDÉRAUX: 46,487,200 51,866,900 5,379,700 11.57 NON-PROV-RATE NON RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS NON RÉSIDENTIELS: 133,600 137,400 3,800 2.84

TOTAL NON RESIDENTIAL PROPERTY / TOTAL DES BIENS NON RÉSIDENTIELS: 1,340,994,900 1,442,356,500 101,361,600 7.56

MUNICIPAL ASSESSMENT BASE / ASSIETTE D'ÉVALUATION MUNICIPALE: 6,486,114,575 6,737,040,600 250,926,025 3.87 PLUS 1/2 NON-RESIDENTIAL PROPERTY / PLUS 1/2 BIENS NON RÉSIDENTIELS: 670,497,450 721,178,250 50,680,800 7.56

TOTAL MUNICIPAL TAX BASE / ASSIETTE FISCALE MUNICIPALE TOTALE: 7,156,612,025 7,458,218,850 301,606,825 4.21

ADJUSTMENT TO FEDERAL BASE / AJUSTEMENT À L'ASSIETTE FISCALE FÉDÉRALE 18,029,552 (24.69%) 25,194,513 (30.97%) 7,164,962 39.74

MUNICIPAL TAX BASE FOR RATE / ASSIETTE FISCALE MUNICIPALE POUR LE TAUX: 7,138,582,473 7,433,024,337 294,441,863 4.12

MUNICIPAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS MUNICIPAUX: 20,538,800 20,832,800 294,000 1.43 MUNICIPAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS MUNICIPAUX: 74,552,800 76,214,100 1,661,300 2.23 TOTALLY EXEMPT PROPERTY RESIDENTIAL / BIENS RÉSIDENTIELS EXONÉRÉS: 76,324,700 76,611,500 286,800 0.38 TOTALLY EXEMPT NON-RESIDENTIAL / BIENS NON RÉSIDENTIELS EXONÉRÉS: 122,603,200 122,490,600 -112,600 -0.09

TOTAL EXCLUSIONS / TOTAL DES EXCLUSIONS: 294,019,500 296,149,000 2,129,500 0.72

TOTAL NUMBER OF PROPERTIES / NOMBRE DE BIENS SIGNALÉS: 19,051 19,087 36 0.19

Wednesday, November 13, 2019 Page 1 of 2 SNB ASSESSMENT AND TAX BASE COMPARISONS / SNB COMPARAISONS - ÉVALUATION ET ASSIETTE FISCALE TAXING AUTHORITY/AUTORITÉ TAXATRICE: 300 DESCRIPTION: Fredericton SUB UNIT CODE/SOUS-GROUPE: 02 DESCRIPTION: Fredericton (Outside/extérieur)

Muncipality Type: City 2019 2020 Difference %

GENERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS GÉNÉRAUX: 138,061,700 141,688,100 3,626,400 2.63 PROVINCIAL RESIDENTIAL / BIENS RÉSIDENTIELS PROVINCIAUX: 107,600 108,400 800 0.74 FEDERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS FÉDÉRAUX: 0 0 0 0.00 NON-PROV-RATE RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS RÉSIDENTIELS: 0 0 0 0.00

TOTAL RESIDENTIAL PROPERTY / TOTAL DES BIENS RÉSIDENTIELS: 138,169,300 141,796,500 3,627,200 2.63

GENERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS GÉNÉRAUX: 16,021,900 16,428,600 406,700 2.54 PROVINCIAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS PROVINCIAUX: 1,528,300 1,528,600 300 0.02 FEDERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS FÉDÉRAUX: 0 0 0 0.00 NON-PROV-RATE NON RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS NON RÉSIDENTIELS: 0 0 0 0.00

TOTAL NON RESIDENTIAL PROPERTY / TOTAL DES BIENS NON RÉSIDENTIELS: 17,550,200 17,957,200 407,000 2.32

MUNICIPAL ASSESSMENT BASE / ASSIETTE D'ÉVALUATION MUNICIPALE: 155,719,500 159,753,700 4,034,200 2.59 PLUS 1/2 NON-RESIDENTIAL PROPERTY / PLUS 1/2 BIENS NON RÉSIDENTIELS: 8,775,100 8,978,600 203,500 2.32

TOTAL MUNICIPAL TAX BASE / ASSIETTE FISCALE MUNICIPALE TOTALE: 164,494,600 168,732,300 4,237,700 2.58

ADJUSTMENT TO FEDERAL BASE / AJUSTEMENT À L'ASSIETTE FISCALE FÉDÉRALE 0 (0.00%) 0 (0.00%) 0 0.00

MUNICIPAL TAX BASE FOR RATE / ASSIETTE FISCALE MUNICIPALE POUR LE TAUX: 164,494,600 168,732,300 4,237,700 2.58

MUNICIPAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS MUNICIPAUX: 1,151,300 1,252,200 100,900 8.76 MUNICIPAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS MUNICIPAUX: 666,400 736,500 70,100 10.52 TOTALLY EXEMPT PROPERTY RESIDENTIAL / BIENS RÉSIDENTIELS EXONÉRÉS: 277,600 281,900 4,300 1.55 TOTALLY EXEMPT NON-RESIDENTIAL / BIENS NON RÉSIDENTIELS EXONÉRÉS: 2,410,200 2,521,300 111,100 4.61

TOTAL EXCLUSIONS / TOTAL DES EXCLUSIONS: 4,505,500 4,791,900 286,400 6.36

TOTAL NUMBER OF PROPERTIES / NOMBRE DE BIENS SIGNALÉS: 1,773 1,768 -5 -0.28

Wednesday, November 13, 2019 Page 2 of 2

DOWNTOWN FREDERICTON INC. 2020 BUDGET

Downtown Fredericton Inc. 2020 Budget

2020 2019 Revenue

BIA levy ($0.20/$100 of assessment @349,929,400) 699,859 651,357

Miscellaneous/Interest 7,500 3,000

Total Revenue 707,359 654,357

Expense

Business Development 83,000 85,500

Capital Projects 201,359 153,657

Marketing & Communications 105,000 105,500

Office Operation 62,700 63,350

Salaries, Benefits & Employee Costs 255,300 246,350

Total Expense 707,359 654,357

Net Income - -

BUSINESS FREDERICTON NORTH 2020 BUDGET

Business Fredericton North Inc. 2020 Budget

Revenues 2020 2019 BIA Levy @ $0.20/$100 assessment 100,145 92,731 Business Income 4,000 4,000 Employment Grants 4,000 4,000 Associate Memberships 4,000 5,000 Interest & Other 300 300 Sponsorship 2,100 2,100 Municipal Investment 50,000 25,000 Hawkins Golf 5,000 5,000 Savings 2,000 - Total Income 171,545 138,131

Expenses Advertising & Marketing 41,087 25,200 Contributions 500 500 Capital Work / Maintenance 5,000 1,000 Dues & Subscriptions 1,000 900 Events 8,400 4,258 Façade Grants 6,000 6,000 Insurance 3,000 3,000 Meetings & Travel 7,535 7,500 Miscellaneous 200 200 Payroll Expenses 76,000 70,000 Office & Administration 18,323 17,573 Professional Fees 2,500 2,000 Severance Saving 2,000 - Total Expenses 171,545 138,131 Net Income - -

Approved at Semi-Annual Budget Meeting Held October 1, 2019

2020

[UTILITY FUND (WATER & SEWER)] 2020 Water and Sewer Utility Fund Budget revenue and expenditures including detailed operating and capital budgets, water and sewer rates and rate history.

Section III – Utility Fund (Water and Sewer)

CONTENTS Water & Sewer Strategy ...... 86 Summary ...... 86 Rate Strategy ...... 86 Water & Sewer Bill Structure ...... 87 2020 Rate Increase Annual Impact for City Rate Payers ...... 88 The Long-Term Financial Plan Does Not Include Borrowing for Renewal ...... 88 History of Why Increases Are Required ...... 89 The importance of the investment made to keep our water safe and reliable...... 89 Service Disruptions Caused by Water Main Failures ...... 89 Water Main Breaks ...... 90 2020 Water and Sewer Utility Budget – Where the Budget Dollar Comes From ...... 90 2020 Detailed Water and Sewer Operating Budget ...... 92 Water and Sewer Budget Summary ...... 93 2020 Water and Sewer Capital Budget ...... 93 Water and Sewer Rates ...... 94 Water and Sewer Rate History ...... 95

WATER & SEWER STRATEGY GOAL

To continue to provide safe, reliable drinking water to customers and environmentally sound wastewater treatment at affordable rates competitive within the region, while addressing infrastructure needs to minimize service disruptions.

KEEPING YOU WATER SAFE AND CLEAN

SUMMARY • Rate increases are not taken lightly however increases are required to fund the system to make it sustainable and keep our water safe for residents. • Rate increases are offset by efficiencies found within operations and through funding from other levels of government. • Each year, more of the water & sewer bill continues to go directly towards infrastructure renewal than operations. This is in large part due to operating costs reduced by over 10% since 2012 due to efficiencies found. • The majority, or 99.9%, of the rate increase is directly applied to infrastructure renewal • Borrowing for infrastructure renewal simply delays the infrastructure issue and results in less funding available for renewal. It defers the problem, costs more and means less money available to put directly into infrastructure. It’s like using debt to fund annual household repairs.

RATE STRATEGY The Water & Sewer Long-term Financial Plan strategy is to take care of the infrastructure while minimizing rate increases and avoiding rate shock by:

1) Aggressively pursuing funding to pay for the cost for any new legislated water and wastewater standards so rate payers don’t pay for this cost; 2) Obtaining $40 million in other government funding over 10 years to go directly towards addressing the $186 million infrastructure deficit; 3) Reducing operating costs by $1,194,522 or 12.2% since 2012 and applying those savings directly to infrastructure renewal (see chart A below); 4) Not spending interest to borrow for renewal which would be equivalent to borrowing to finance on-going household repairs; 5) Acknowledging the significant infrastructure issue by addressing it in a planned manner and not deferring the problem for future generations to deal with at a much higher cost; and 6) Increasing rates consistently over time and keeping rates less than and competitive within the region.

CHART A

Water & Sewer Cumulative Budget Savings

$1,194,522 $1,200,000 $1,054,046

$1,000,000 $768,691 $800,000 $657,966 $670,094

$600,000 $505,560 $338,695 $400,000

$200,000

$- 2013 2014 2015 2016 2017 2018 2019 Budget Savings $338,695 $166,865 $152,406 $12,128 $98,597 $285,355 $140,476 Cumulative $338,695 $505,560 $657,966 $670,094 $768,691 $1,054,046 $1,194,522

WATER & SEWER BILL STRUCTURE A City of Fredericton Water & Sewer bill is made up of two components:

1) Fixed fee called a quarterly service charge a. Is used to fund infrastructure to get water to and from the customer and the operating costs associated with this infrastructure 2) Variable fee called consumption rate a. Is used to fund the operating costs associated with moving the water around and varies depending on the amount of water used by customers

Currently there is a mismatch between how revenue is generated and how it is spent. Eighty percent (80%) of the costs of the utility are fixed and do not change based on the amount of water used. The remaining 20% of the cost deals with the treatment of the water and wastewater based on volume consumed.

For the average household, the typical split on the water and sewer bill was 50/50 meaning half the bill is based on a fixed fee and half the bill is based on the amount of water used (consumption).

This means that customers still have the opportunity to save on their water bill by conserving and also allows the City to collect revenue to ensure appropriate levels of infrastructure renewal.

The rate structure is reviewed annually to determine the sustainability of the system compared with affordability.

2020 RATE INCREASE ANNUAL IMPACT FOR CITY RATE PAYERS The Water & Sewer rate increase will result in an increase to water & sewer bills by $21.00 annually or $1.75 monthly.

The majority or 99.9% of the rate increase goes directly towards infrastructure renewal – replacing old pipes and systems.

Chart B

Infrastructure Deficit based on 20 year Reinvestment 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 -

with 4% Rate Increase with 3% Rate Increase With no Rate Increase

THE LONG-TERM FINANCIAL PLAN DOES NOT INCLUDE BORROWING FOR RENEWAL Within the General Fund, the strategy has been to build up debt borrowing room for key strategic major Council priority projects. Borrowing is not used for on-going infrastructure renewal. Over a 10-year period of high growth years, money was set aside for this type of borrowing and was built into the budget. The City uses the Pay As You Go capital budget for the infrastructure renewal and only uses debt for flexibility to fund a key strategic Council priority every number of years.

Similarly, there is no borrowing in the water and sewer fund for infrastructure renewal projects. If there was debt financing over a 20 year period, a significant portion would go towards interest. That means, Water & Sewer would lose $58M to interest payments over 20 years. That’s money that now goes directly towards investment in infrastructure renewal.

This borrowing would only be a short-term fix and defers truly addressing the infrastructure issue. Once the borrowing is made, that funding is committed to make the debt payments for 20 years and cannot be used for infrastructure renewal in the following years until the debt payments are paid-off in 20 years. By following a Pay As You Go Model, every dollar of capital funding goes directly to infrastructure renewal. The infrastructure renewal required is year after year investment in replacing 1% of that infrastructure in addition to addressing the $140M infrastructure deficit, or backlog of old infrastructure needing replaced today.

HISTORY OF WHY INCREASES ARE REQUIRED 1) Water & Sewer infrastructure lasts a long time and until the early 2000s, there was no realization or emphasis on the requirement to build up funding to replace old infrastructure. Pipes and systems were within their life cycles. 2) Revenue was used for day to day operations and infrastructure extensions, not for replacing old infrastructure. 3) Over the period of 1990 – 2013, there were many years of no rate increases and in other years, increases that did not even keep pace with inflation. Also, increases were only applied to the consumption rate. Therefore the consumption and fixed rate ratio became off balance. a. From 1990-2004, over the 14 year period, there were eight (8) years of zero increases. b. For the other years, rate increases were low and did not keep pace with inflation. 4) The biggest portion of the revenue generated was based on consumption. Since 2005, consumption decreased 23.4% while the biggest portion of the cost is needed infrastructure replacement. For 2019, it appears that consumption is stabilizing resulting in higher ability to generate revenue to offset system expenses and infrastructure renewal. We anticipate that this trend will continue for 2020. 5) Looking at the situation today, the amount of infrastructure that should be funded for replacement annually (called “depreciation”) is $14.2 million. This does not include the additional backlog of over $186 million in old infrastructure needing replaced. The revenue generated to pay for infrastructure is $10.7 million. This means that the infrastructure deficit will grow by $3.6 million in 2020 alone excluding funding from other levels of government.

THE IMPORTANCE OF THE INVESTMENT MADE TO KEEP OUR WATER SAFE AND RELIABLE.

SERVICE DISRUPTIONS CAUSED BY WATER MAIN FAILURES Infrastructure Renewal is needed to continue to deliver high quality drinking water, and to minimize service disruptions. Boil orders can have a significant impact on residents. Failed water mains have been the number one cause of boil orders in New Brunswick over the past 10 years.

Since 2006, 118 different municipalities have reported boil orders to the New Brunswick Chief Medical Officer. Almost half of the boil orders reported were a result of water main breaks and loss of pressure in the water system.

Fredericton has had only one (1) wide-spread boil order in the past ten years lasting only three (3) days. This was a precautionary measure due to construction in that area and not the result of any contamination issue.

The City’s investments, targeted at areas with high water main breaks, have been successful in preventing serious service interruptions. However with older infrastructure, the City is still susceptible to water main breaks which cause service interruptions and impact residents. That is why the City has a plan to continue to focus on adequately addressing the infrastructure deficit and infrastructure renewal.

WATER MAIN BREAKS Infrastructure renewal helps keep water main failures from trending higher. This helps avoid service disruption due to contamination or boil orders.

Chart F

60 Water Main Failures Trend 48 43 43 40 39 41 36 38 32 37 32 28 29 20 21 20

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2020 WATER AND SEWER UTILITY BUDGET – WHERE THE BUDGET DOLLAR COMES FROM

100.0% 89.8% 80.0% 60.0% 55.7% 40.0% 31.6% 20.0% 6.6% 3.8% 4.3% 0.5% 2.0% 2.7% 0.5% 1.4% 0.4% 0.1% 0.4% 0.1% 0.2% 0.0%

Connections Consumption

City of Fredericton 2020 Water and Sewer Utility Budget Revenue

Water Supply and Wastewater Delivery Management 44% 43%

Other Transfers Fire Protection 8% 5%

Water Supply & Delivery $10,108,651 *Other Wastewater Management 9,888,490 Hydrant Rentals 1,000,612 Other* 1,662,622 Other Transfers 662,010 Total $21,659,763 Total 1,662,622

2020 DETAILED WATER AND SEWER OPERATING BUDGET

Description 2019 Budget 2020 Budget $ Change Water & Sewer W&S-Dept. Of Environment 1,000,612 1,000,612 - Surplus (2nd Previous Year) 662,011 1,862,191 1,200,180 1,662,623 2,862,803 1,200,180

Water Residential 6,793,470 6,981,640 188,170 Commercial 1,910,848 2,060,047 149,199 Industrial 12,206 13,187 981 City Of Fredericton 86,160 98,100 11,940 Province Of New Brunswick 245,298 239,172 (6,126) Government Of Canada 228,192 236,808 8,616 U.N.B. 242,661 260,767 18,106 St. Thomas University 29,668 28,950 (718) Private Hydrant Fee 103,850 104,780 930 9,652,353 10,023,451 371,098

Sewer Residential 6,606,150 6,994,194 388,044 Commercial 1,871,274 2,031,068 159,794 Industrial 16,150 11,354 (4,796) City Of Fredericton 74,891 86,461 11,570 Province Of New Brunswick 239,834 238,609 (1,225) Government Of Canada 223,901 231,072 7,171 U.N.B. 237,077 255,167 18,090 St. Thomas University 28,063 27,315 (748) 9,297,340 9,875,240 577,900

Common Services Connection And Service Charges 13,000 13,000 - Connection And Service Charges 13,000 13,000 - Certificates 8,000 10,000 2,000 Building Fire Protection Fee 60,450 61,950 1,500 Missed Appointment Fee 250 250 - Missed Appointment Fee 250 250 - 94,950 98,450 3,500

WATER AND SEWER GRAND TOTAL 20,707,266 22,859,944 2,152,678

2019 Budget 2020 Budget $ Change Water Supply and Delivery Revenue 9,734,053 10,108,651 374,598 Wastewater Management Revenue 9,310,590 9,888,490 577,900 Fire Protection Services 1,000,612 1,000,612 - Other Transfers (2nd Previous Year's Surplus) 662,011 1,862,191 1,200,180 20,707,266 22,859,944 2,152,678

WATER AND SEWER BUDGET SUMMARY

BY PERSONNEL & NON-PERSONNEL COSTS

2019 Budget 2020 Proposed $ Change % Change Water Supply and Delivery Revenue $ 10,743,665 $ 11,117,263 $ 373,598 3.5% Surplus - 2nd Previous Year 331,006 931,096 600,090 181.3% Personnel (2,409,674) (2,753,885) (344,211) 14.3% Non-personnel (2,228,215) (2,294,075) (65,860) 3.0% $ 6,436,782 $ 7,000,399 $ 563,617 8.8%

Wastewater Management Revenue 9,301,591 9,880,490 578,899 6.2% Surplus - 2nd Previous Year 331,005 931,095 600,090 181.3% Personnel (2,803,004) (2,759,892) 43,112 -1.5% Non-personnel (2,791,466) (2,767,850) 23,616 -0.8% $ 4,038,126 $ 5,283,843 $ 1,245,717 30.8%

Capital $ (10,474,908) $ (12,284,242) $ (1,809,334) 17.3%

Net Balanced Budget - - -

2020 WATER AND SEWER CAPITAL BUDGET

Infrastructure Renewal Water Supply & Delivery $ 6,857,875 Wastewater Management 5,131,367 Common Equipment 295,000

$ 12,284,242

WATER AND SEWER RATES

CITY OF FREDERICTON WATER AND SEWER RATES

Approved 2019 Approved 2020

Water Sewer Total Water Sewer Total

$0.91 $0.91 $1.82 $0.93 $0.93 $1.86

unmetered users (per Quarter)

$63.88 $63.88 $127.76 $65.24 $65.24 $130.48

Metric Rate Quarterly service charge $58.60 Consumption Rate $0.93 per Cubic Metre

Imperial Gallons Rate Quarterly service charge $58.60 Consumption Rate $4.23 per 1000 Gallons

Residential Meter $2.00

Water & Sewer Rate Comparison 2019 and Approved 2020 for a Typical Fredericton Residential Household City 2019 Yearly 2020 Approved Increase Fredericton $819 $840 $21

Based on 195 m3 annual consumption for each of water and sewer.

WATER AND SEWER RATE HISTORY

City of Fredericton Record of Water & Sewer Rates 1998-2020 Year Per M3 1998 46¢ 1999 47¢ 2000 47¢ 2001 47¢ 2002 49¢ 2003 49¢ 2004 49¢ 2005 51¢ 2006 53¢ 2007 55¢ 2008 57¢ 2009 61¢ 2010 66¢ 2011 71¢ 2012 76¢ 2013 82¢ 2014 83¢ 2015 84¢ 2016 84₵ 2017 84₵ 2018 89₵ 2019 91₵ 2020 93₵

Note: 93¢ for each of water & sewer for a total of $1.86 per m

2020

[RESOLUTIONS OF CITY COUNCIL]

City Council December 16, 2019

RESOLUTION NO: 1

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton approves and authorizes the General Fund Operating Budget for 2020, being:

The sum of $124,378,606 be the total operating budget of the Municipality, that the sum of $108,183,452 be the Warrant of the Municipality for the ensuing year, and that the tax rate(s) for the Municipality be inside $1.4311, outside $1.0733. The Council orders and directs the levying by the Minister of Environment and Local Government of said amount on real property liable to taxation under the Assessment Act within the Municipality of The City of Fredericton.

City Council December 16, 2019

RESOLUTION NO: 2

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton directs THAT the amount of $19,855,855 for the 2020 General Fund Pay As You Go Capital budget be approved in accordance with the Public Procurement Management Policy No: COR-POL-023, and

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton hereby authorizes and directs the Mayor and City Clerk to execute any CCDC2 and CCDC4 contracts for the acquisition of the assets and the completion of the construction projects listed and approved as part of the 2020 Capital Budget; and

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton hereby authorizes and directs the Mayor and City Clerk to execute any agreements of purchase and sale and such further legal transactional documents as required in relation to the approved construction projects that form part of the 2020 Capital Budget with content satisfactory to the Director of Engineering and Operations, or designate, and in a form and content approved by the City Solicitor, or designate; and

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton hereby directs that any 2020 capital budget savings within Corporate Fleet Capital be reallocated to the next top priority vehicle/equipment on the infrastructure deficit listing.

City Council December 16, 2019

RESOLUTION NO: 3

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton authorizes and approves the following as the Fredericton Police Force Operating Budget for 2020:

The sum of $18,039,678 be the total direct operating budget for the Fredericton Police Force which includes a Personnel budget of $16,851,735 with a full-time equivalent of 126, plus 10 temporary Officers as noted in Schedule A, a Non-Personnel budget of $1,365,082 and a Non-Tangible Capital budget of $443,462; and Schedule A:

Police FTE Complement 2020 Police Officers Approved Complement 104 TEMPORARY SUPPORT - 10 FTEs 10 Total Police Officer FTEs Including Approved Complement and Temporary Support 114 Civilian Staff 22 Total Police Department FTE Approved Complement and Over Complement 136

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton authorizes and directs the staff of the Legal Division to draft the appropriate by-law to amend By-Law No. A-6, A By-law Respecting the Table of Organization of the Fredericton Police Force to give effect to the Schedule A Fredericton Police Force, Full Time Equivalent Complement for 2020 as prescribed in this resolution.

City Council December 16, 2019

RESOLUTION NO: 4

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton approves and authorizes the following Recreation and Social Facilitation rates, effective January 1, 2020, as follows:

A. Royals Field Cost per Game be increased from $36.00 (HST extra) to $43.20 (HST extra)

City Council December 16, 2019

RESOLUTION NO: 5

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton authorizes and directs the staff of the Legal Division to prepare an appropriate by-law to amend By-law No. T-7, A By-law Relating to Parking Meters, Parking Zones, and Pay and Display Machines for the City of Fredericton, to reflect that the permit fees be increased as follows, effective February 1, 2020:

A. Frederick Square Garage Monthly Permit – be increased from $80.00 (incl. HST) to $100.00 (incl. HST)

B. East End Garage Monthly Permit – be increased from $110.00 (incl. HST) to $120.00 (incl. HST)

C. York Parking Lot Monthly Permit – be increased from $110.00 (incl. HST) to $115.00 (incl. HST)

D. Officer’s Square Parking Lot Monthly Permit – be increased from $105.00 (incl. HST) to $115.00 (incl. HST)

E. Upper Queen Parking Lot Monthly Permit – be increased from $60.00 (incl. HST) to $80.00 (incl. HST)

100

City Council December 16, 2019

RESOLUTION NO: 6

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton approves and authorizes the following amount as the Business Improvement Levy (Queen) for Downtown Fredericton Inc.:

CONDITIONAL TRANSFER FROM PROVINCIAL GOVERNMENT TO BUSINESS IMPROVEMENT CORPORATION

Business Business or Improvement Levy Property Assessment Rate $699,859 $349,929,400 $0.20

BE IT FURTHER RESOLVED THAT on the 16th day of December 2019 the Council of the Municipality of The City of Fredericton will enact a by-law imposing a business improvement levy on all non-residential property within the Business Improvement Area of the municipality that is liable to taxation under the Assessment Act within the Business Improvement Area of Queen Street as outlined in By-law No. L-13. The levy shall be in the amount of $699,859 at the rate of $0.20 and the Council of the City of Fredericton hereby directs and orders the Minister of Environment and Local Government to levy the said amount pursuant to provisions of the Business Improvement Area Act.

101

City Council December 16, 2019

RESOLUTION NO: 7

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton approves and authorizes the following amount as the Business Improvement Levy (Main) for Business Fredericton North Inc.:

CONDITIONAL TRANSFER FROM PROVINCIAL GOVERNMENT TO BUSINESS IMPROVEMENT CORPORATION

Business Business or Improvement Levy Property Assessment Rate $100,145 $50,072,600 $0.20

BE IT FURTHER RESOLVED THAT on the 16th day of December 2019 the Council of the Municipality of The City of Fredericton will enact a by-law imposing a business improvement levy on all non-residential property within the Business Improvement Area of the municipality that is liable to taxation under the Assessment Act within the Business Improvement Area of Main Street as outline in By-law No. L-15. The levy shall be in the amount of $100,145 at the rate of $0.20 and the Council of the City of Fredericton hereby directs and orders the Minister of Environment and Local Government to levy the said amount pursuant to the provisions of the Business Improvement Area Act.

102

City Council December 16, 2019

RESOLUTION NO: 8

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton approves and authorizes the following amount as the Utility Fund (Water and Waterwater) Operating Budget for 2020:

Pursuant to paragraph 117(4) of the Local Governance Act, the total budget for the Water and Wastewater utility for the ensuing year would consist of total revenues of $22,859,944, and total expenditures of $22,859,944.

103

City Council December 16, 2019

RESOLUTION NO: 9

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton authorizes and directs the staff of the Legal Division to prepare an appropriate by-law to amend By-law No. W-3, A By-law Respecting Water and Sewer Rentals, to reflect the following change, effective the 2nd quarterly billing in 2020:

• Increase the quarterly service charge from $56.95 to $58.60 for each of water and sewer; • Increase the consumption charge per cubic meter from $0.91 to $0.93 for each water and sewer; • Increase the quarterly flat rate commodity charge from $63.88 to $65.24 for each water and sewer

104

City Council December 16, 2019

RESOLUTION NO: 10

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton hereby authorizes and directs the staff of the Legal Division to prepare the appropriate by-law to amend By-law No. W-3, A By-law Respecting Water Rates and Sewer Rentals so that the bulk water rate be increased from $2.35 per cubic meter to $2.39 per cubic meter.

105

City Council December 16, 2019

RESOLUTION NO: 11

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton authorizes and approves the amount of $12,284,242 for the Water and Sewer Fund 2020 Pay As You Go Capital budget in accordance with the Public Procurement Management Policy No: COR-POL-023, and

106