City of Chestermere Proposed Financial Plan 2019 – 2023 October 30, 2018 Proposed Financial Plan 2019 – 2023 Agenda CAO Approach Overview Capital Plan Operating Plan Personnel Personnel In-Camera
2 CAO Approach Efficiencies $1,185,607 Reduction in Financial Plan Capital Project Organizational Service Alignment Contracted Services Personnel & Training IT Licenses & Printing Vehicle Equipment Leases
3 Overview Overview
Roles Economic Trends Financial Plan Process Accounting Dictionary Approach Proposed Changes to Property Tax Requirement Deliberations
5 Roles Overview Role of Government
NOTES * Where there are upper and lower-tier municipalities, responsibilities are divided between them ** Federal government influence has jurisdiction for offshore and norther resources, interprovincial and international trade, taxation and treaty making. Municipalities also have an effect on environmental policy through their jurisdiction in water and sewage, public transit, garbage collection, etc. *** Federal government influences these through funding transfers **** Municipalities collect property taxes. Provincial and federal governments levy sales and income taxes.
MFOA – Municipal Finance Officers of Ontario 7 Overview Role of Public versus Private Sectors
8 MFOA – Municipal Finance Officers of Ontario Overview Roles
Sample
9 MFOA – Municipal Finance Officers of Ontario Economic Trends Overview Economic Trends
11 https://www.alberta.ca/budget-economic-outlook.aspx Overview Economic Trends
12 https://economicdashboard.alberta.ca/#growth Overview Economic Trends
13 https://economicdashboard.alberta.ca/GrossDomesticProduct#type Overview Economic Trends
14 https://economicdashboard.alberta.ca/OilPrice Overview Economic Trends
15 https://economicdashboard.alberta.ca/#growth Overview Economic Trends
16 https://economicdashboard.alberta.ca Overview Economic Trends
17 https://economicdashboard.alberta.ca Overview Economic Trends
18 https://economicdashboard.alberta.ca/HousingStarts https://economicdashboard.alberta.ca/HousingStarts Overview Economic Trends
19 Overview Economic Trends
Description 2019 2020 2021 2022 2023
Calgary Economic Region (CER) 1,599,900 1,635,000 1,662,700 1,695,200 1,731,200 Total Population CER Population Growth 2.5% 2.2% 1.7% 2.0% 2.1% Rate Chestermere 21,232 21,732 22,887 24,958 27,801 Total Population Chestermere Population Growth 2.4% 2.4% 5.3% 9.1% 11.4% Rate
20 Calgary and Region Economic Outlook 2018 Fall Economic Trends Summary Provincial Economic Indices Agriculture & Forestry Consumer Activity Energy Business Activity Demographics & Population Industries Construction Economic Output & Productivity Labour 33 Indicators 22 Positive in Year over Year 1 Neutral 10 Negative
21 https://economicdashboard.alberta.ca/#dashboard Financial Plan Process Overview Financial Plan Process Spring 2018 Finalized the Review of 2018 Budget approved 0.913% increase Original Plan was 2.0% increase created a 1.087% reduction Summer 2018 Multi-year Financial Plan 2019 - 2023 Public Engagement Updated two Financial Policies Fall 2018 Internal Department Reviews Updated the third Financial Policy Presentation to Council of the Capital Plan
23 Accounting Dictionary Overview Accounting Dictionary
25 Overview Dictionary Financial Plan Identifies the change in Property Tax Requirement Budget Revenue equals Expenses Inform the Tax Rate Bylaw Formula 1% change in Property Tax Requirement $25 per year, per average household worth $500,000 $200,000 in Property Tax Revenue
26 Approach Overview Approach Ability to Pay Spending
28 Approach Ability to Pay Average Total Income per Household
2016 Census (2015 year)
Description Chestermere Calgary Alberta
Income $157,594 $137,333 $125,522 Amount of Property 1.8¢ 1.1¢ 1.3¢ Tax per Income $
29 Approach Ability to Pay
30 Approach Spending
31 Approach Spending Legislated Requirements 2019 Spending Requirement Examples Amount Elections, Emergency Mgmt, EPEA, FOIP, Health, Human Rights, Acts Irrigation, MGA, Peace Officers, Public Works, OH&S, Safety $ 13,843,186 Codes, Traffic Safety, Victims of Crime, WCB
Pension Local Authorities Pension Plan 1,073,119
Guideline Parent Link Guideline 49,253
Regulations Bee Act and Regulation, Traffic Control 32,525
Standards Alberta Employment Standards 14,200
Total $ 15,012,283 32 Approach Spending City Controlled Obligations 2019 Spending Initiative Examples Amount Family & Comm. Social Services, Fine Retentions Services, Leased Agreements $ 7,003,161 Vehicle Equipment, Parent Link, RCMP, Utilities, Victim Services Fire Equipment Maintenance, Health & Wellness, Parks Policies 2,180,391 Maintenance, RSA Deposits, Snow Clearing
Bylaws Elections, Exclusivity, Franchise Fee 1,629,386
Growth Memberships, Phones, Professional Licensing & Training, Tools 260,640
Operating Impacts Software licensing 50,000 from Capital Projects Total $ 11,123,577 33 Approach Spending Council’s Strategic Initiatives 2019 Spending Initiative Examples Amount 4.5 - Create a Physically & Socially Training for Protective Services, FCSS Program, $ 2,924,698 Connected Community Playground, Urban Beautification 4.1 – Staffing, Responsive Census, Professional Association & Membership 1,381,800 Government Fees, Communications Levels of Service, Members Fees, Preventative 4.2 – Responsible Spending 400,998 Maintenance on Buildings 4.4 – Promote Arts, Develop Canada Day, Water Festival, Winter Lights, Senior’s 103,205 Culture Tea
4.3 – Protect Chestermere Lake Weed Harvesting expenses, excluding Personnel 57,366
Total $ 4,868,068 34 Approach Spending Business Plan Initiatives 2019 Spending Initiative Examples Amount
Protective Services Enhanced Road Safety Initiative, Fire Prevention, SCBA Fit Training $ 1,007,698
Annual Report, Business Process Review, City App & Branding, Corporate Services CSMI Table Costs, Employee Engagement, Lemonade Day, Levels of 641,507 Services Construction Materials, Contracted Services, General Goods & Parks & Recreation 523,105 Supplies, Park Supplies, Utilities Dev. & Infrastructure Aerial Imagery, City Works, Fixed Assets Maintenance Program, 137,329 Services Offsite Levy Model
Comm. & Social Dev Community Needs Assessment, Community Vitality Grant 74,116
Total $ 2,383,75535 Proposed Property Tax Changes Overview Proposed Property Tax Changes Public Engagement Results were reductions except for Protective Services
$1,185,607 Reduction in Financial Plan Capital Project Organizational Service Alignment Contracted Services Personnel Donations Training IT Licenses & Printing Vehicle Equipment Leases
37 Overview Proposed Property Tax Change
2019 2020 2021 2022
- 1.8%
38 Overview Proposed 2019 Total Property Taxes
Total Residential Property Taxes $4,121
39 Overview Future Plans Proposed Annual changes to the Property Tax Requirement
2019 2020 2021 2022
- 1.8% + 3.7% + 5.2% + 3.8%
40 Council Deliberations 2019 Overview Deliberations
42 Overview Deliberations
43 Proposed Capital Plan 2019 - 2023 Capital Plan Agenda Public Engagement Efficiencies Projects Funding Sources
2019 – 2023 Capital Projects 100% Funded by Sources other than Property Taxes
45 Capital Plan Public Engagement 21% of the Public Engagement idea’s are in the Capital Plan • Chestermere Boulevard • Paradise Road Connection • Lake Strategy • Southshore Lakefront Park • Dam Remediation • Recreation Planning • Pathways & Trail Study
46 Capital Plan Efficiencies Asset Condition Assessment Vehicle Leases Capital Projects
47 Capital Plan Projects by Type
48 Capital Plan Projects by Department
49 Capital Plan Projects by Funding Sources
50 Funding Sources Grants
51 Funding Sources Grants
52 Funding Sources Restricted Surplus Accounts
53 Funding Sources Restricted Surplus Accounts
54 Funding Sources Debt
55 Proposed Operating Plan 2019 - 2022 Proposed Operating Plan 2019 - 2022 Public Engagement Overview Departmental Summary
57 Operating Plan Public Engagement Results were 223 respondents with a 95% accuracy within a margin of error +/-7%
-2.4% City Hall -1.5% Community Services -1.5% General Government -1.4% Parks & Recreation -1.3% Planning & Development -1.1% Roads & Infrastructure no change to Emergency Services +0.3% Policing & Enforcement
58 Operating Plan Public Engagement
59 Operating Plan Public Engagement
60 Proposed Operating Plan Operating Plan Overview
62 Operating Plan Overview
63 Operating Plan Overview
64 Operating Plan Overview
65 Operating Plan Overview
66 Operating Plan Overview
67 Operating Plan Overview
2018 Taxes $2,797 2019 Taxes $2,758 68 Departmental Summary Departmental Summary DIS – PW, Corp Prop, Common & PMO
70 Departmental Summary DIS – PW, Corp Prop, Common & PMO
71 Departmental Summary DIS – PW, Corp Prop, Common & PMO
72 Departmental Summary Protective Services
73 Departmental Summary Fire, RCMP, CPO & Emergency Mgmt
74 Departmental Summary Fire, RCMP, CPO & Emergency Mgmt
75 Departmental Summary Parks & Recreation
76 Departmental Summary Parks & Recreation
77 Departmental Summary Corporate Services
78 Departmental Summary Corporate Services
79 Departmental Summary DIS – Planning & Development Services
80 Departmental Summary DIS – Planning & Development Services
81 Departmental Summary City of Chestermere General
82 Departmental Summary Community & Social Development
83 Departmental Summary Community & Social Development
84 Departmental Summary Council & Mayor
85 Questions Comments Clarifications Council Remuneration Change to Legislation • CRA amendments to taxation for Elected Officials • 1/3 currently non-taxable portion of earnings to be taxable in 2019 • Financial Plan includes adjustment to remuneration to provide similar net pay for 100% taxable earnings
88 To Meet New Tax Legislation
Elected Officials Remuneration - Adjustment for Tax Legislation Change
2018 2019 Difference to Gross Salary
Mayor $ 65,000 $ 76,800 $ 11,800
Deputy Mayor $ 35,530 $ 40,500 $ 4,970
Councillor $ 30,530 $ 34,800 $ 4,270
Salary Adj. $ 38,120
* This will not result in an increased net pay for elected officials
89 Personnel Current Staffing
• Current FTE (full-time equivalent) 130.7 FTE • Head Count at peak season 184 • Staffing/retention pressures in some areas Staffing $13,788,507 = approximately 41% of operating budget
91 External Influences • Competing for talent • Forecasted salary with City of Calgary and increases regional communities • Morneau Shepell - • Positive growth in Canada avg. of 2.6% employment levels Alberta 2.7% • Aon - Canada avg. 2.8% • Increase to CPP rates • Conference Board of over the next 5 years Canada - 2.6%
92 City of Chestermere Comparators • Airdrie • Leduc • Beaumont • Okotoks • Cochrane • Rockyview County • High River • Stony Plain • Brooks** • Strathmore • Lacombe**
93 Pay Range View
$44 $55 COLA Pay range starts at MTR approx. 80% of job PROPOSED Range is MCI rate adjusted for inflation Movement Market Comparator through the range Increase adjusts Cost of Living is a combination positions for Adjustment based on of performance, comparable market Calgary CPI - July tenure and budget match approval toward job rate
94 Compensation Adjustments
MTR
(Movement Through the COLA for grid Range)
(Cost of Living Adjustment) MCI for April 2019 positions
(Market Comparator April 2019 Increase)
June 2019 for 2020
95 Compensation Adjustments
COLA 2.12% $160,000 Limited MTR $100,000 $260,000 CPP rate increasing 2019 – 2023 Total Compensation efficiency- applying for reduced EI rate
96 2019 REDUCTIONS - Tax Funded Positions 2019 ADDITIONS - Tax Funded Position Assistant Director of DIS -1.00 Corporate Strategy Officer -1.00 Director of Protective Svcs. -1.00 Admin. Assistant (CS) 0.50 Finance Admin (CS) -0.25 Asset Mgmt. Coord. 1.00 Fleet Services Supervisor -1.00 Executive Assistant 1.00 Manager of Ec. Dev. -1.00 RCMP/CPO Administrative 1.00 Project Mgmt. Coord. -1.00 Roads Oper. (Seasonal) 0.30 -6.25 -$816,538 3.80 $264,304
2019 REDUCTIONS - Grant Funded Position 2019 ADDITIONS - RSA Funded Position IT Help Desk Tech. 0.50 Finance Admin. (CS) -0.25 Safety Codes Officer (Bldg) 0.75 Comm. & Nbhd. Coord. -1.00 Subdivision Tech. 1.00 -1.25 2.25 -$917,658 $452,455
Net reduction tax funded positions -2.45 Net reduction tax funded -$552,234
97 Additional Positions - 2020 Position FTE Cost Communications Advisor 1.00 Community Peace Officer 1.00
Emergency Management Coord. .50 Firefighter 4.00 HR Assistant 1.00 Records Management 1.00 Seasonal - Parks .33
Total FTE 8.83 $ 637,769
98 Additional Positions - 2021 Position FTE Cost Deputy Fire Chief 1.00
Community Resource Worker 1.00 Roads Operator 1.00 Finance Clerk 1.00 IT Manager 1.00 RCMP Clerk 1.00 Building Maint. Labourer 1.00 PMO Admin. Assistant .50 Seasonal - Events .31 Municipal Intern 1.00 Total FTE 8.81 $ 583,873
99 Additional Positions - 2022 Position FTE Cost Administrative Assistant - CAO 1.00 Legislative Officer 1.00 Events Coordinator .50 Community Engagement Coord. 1.00 HR Advisor 1.00 Automotive Mechanic / EVT 1.00 Building Maintenance Labourer 1.00 Community Peace Officer 1.00 Seasonal - Parks .49 Total FTE 8.0 $ 505,360
100 Next Steps in Personnel Strategic Plan Goal 4.1.4: Ensure City is appropriately staffed • Conduct a review of the City’s Human Resource Policies and Procedures to ensure that they align with legislated changes and Council’s HR Policies & Procedures Framework Policy. • Conduct a review of the City’s organizational structure. • Conduct a review of spatial requirements • Comparables review – 2019 Q1 • Service Levels review – 2019 Q1 • Compensation review – 2019 Q3
101 In Camera (3 slides)
102 Questions Comments Clarifications