2009 Annual Financial Report

8/6/2019 2009 Annual Financial Report

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Reection.

Guidance.

Corporation of the City of Airdrie, Alberta, Canada

ANNUAL REPORT

December 31, 2009


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2 City of Airdrie|2009 Annual Report

2009 City of AirdrieAll rights reserved

Tis Annual Report has beenprepared and compiled bythe City of Airdrie FinancialServices Department

For additional copies,contact ara Richards [email protected] 403.948.8800

City of Airdrie400 Main Street SEAirdrie, AB 4B 3C3tel (403) 948-8800fax (403) 948-6567www.airdrie.ca

celebrating

100 years ofhistory, communityand opportunity.

Glenbow Archives NA-1231-1


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City of Airdrie|2009 Annual Report

INTRODUCTORY INFORMATION

Vision and Mission Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Message from the Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Message from the City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

City Prole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

City Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2009 Highlights and Achievements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Financial Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Corporate Scorecard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Corporate Successes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

FINANCIAL DISCUSSION AND ANALYSIS

Financial Management and Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Consolidated Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Consolidated Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Long erm Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Looking to the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Management Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

CONSOLIDATED FINANCIAL STATEMENT

Consolidated Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Consolidated Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Consolidated Statement of Change In Net Financial Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Consolidated Statement of Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Notes to Consolidated Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Schedule 1 Schedule of angible Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Schedule 2 Schedule of Property axes Levied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Schedule 3 Schedule of Government ransfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Schedule 4 Schedule of Consolidated Expenses by Object. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

STATISTICAL INFORMATION

Statistical Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

contents


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Canadian

Award forFinancial

ReportingPresented to

City of Airdrie

Alberta

For its Annual

Financial Report

for the Year Ended

December 31, 2008

A Canadian Award for Financial Reporting

is presented by the Government Finance Officers

Association of the United States and Canada

to government units whose annual financial reports

achieve the highest program standards for Canadian

Government accounting and financial reporting.

President

Executive Director


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Corporation of the City of Airdrie, Alberta, Canada

2009 Annual Report

Produced by the Financial Services Department o the City o Airdrie in cooperation with

all civic departments, ofces and agencies.


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Building for the future on our foundations of quality of life,economic diversity and a vibrant sense of community.

By ensuring these quality essential municipal services are in place:

Planning and development management Infrastructure management Safety and security Social planning to facilitate the social well-being of individuals and families

Protection and management of parks and open space Facilitation of recreation, sport and cultural opportunities

Our operating philosophy ensures:

Vision-driven governance and management

Exemplary customer service Openness with integrity Entrepreneurial and innovative thinking A team approach eective partnerships and collaboration with stakeholders

Support for a highly valued and eective municipal workforce Fiscal responsibility making optimal use of resources and eective stewardship

of capital assets

vision

Airdrie is a vibrant, caring community rich in urbanamenities and opportunities for everyone.

We value a healthy, sustainable environment connecting

people and places.

mission


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he City of Airdrie made history in2009. We hosted several signicantevents including the 55 Plus Games, Airdrie Regional Air Show, and our

own centennial celebrations, on top ofour regular events. Tis put Airdrie onthe map, with accomplishments thatwill live forever in this community. Tegroups of dedicated volunteers workedtirelessly and selessly, helping to build

an overwhelming sense of communityspirit and pride.

Positive Growth

We worked hard to not raise taxes any

more than necessary, knowing everyoneis feeling the pinch this year. Even withthis increase, Airdrie has one of thelowest average municipal property taxes

when compared to other municipalitiesof similar size.

We saw development in Airdrie

bouncing back in 2009 with very positiveresidential and commercial growth. When comparing to global economies

and the US, we are faring quite well withall our values increasing. Te City of

Airdrie saw $201 million in constructionvalue in 2009 compared to $184 millionin 2008.

Te City of Airdries population is also

booming, with the ocial 2009 censusresult at 38,091, an 11.65 per centgrowth rate, which is the highest its beensince the late 1970s. Tis phenomenalgrowth shows Airdrie continues to thrive

with a strong advantage for attractingboth new residents and businesses. Evenin these economic times, our thrivingand diverse community is prosperingand our future looks bright.

As proof of the strong Airdrie economy,the City was recognized by AlbertaVenture magazine in their annual op10 Communities o Do Business feature

as one of Albertas best communities forbusiness. In addition to being recognizedas one of the top 10 communities forbusiness, Airdrie was also identied asone of ve Growth Nodes in Alberta for2009. Te growth in the local market hasprovided sustainable opportunities for

entrepreneurs and businesses resultingin multi-million dollars of investmentin residential, commercial and industrialdevelopments. 2010 promises to be a

year of continued exceptional growth.

Quality of Life

Te 2009 Citizen Satisfaction Surveyresults indicated the City was on the right

track to serving our communitys needs, with residents giving Airdrie a high-ranking 98 percent rating for quality oflife. More than 80 percent of respondentsbelieved the overall quality of Airdrie civic

services is good and 93 percent, agreed

they considered their community a safeplace to live. Te City continues to strivewith a number of initiatives to maintainand enhance safety in our community.

One of the new programs was the new Airdrie Community Resource Unit(CRO). Te CRO is a collaborativecommunity policing program, withthe Airdrie Royal Canadian Mounted

Police (RCMP), the City of Airdrie,school divisions and other community

partners, building bridges between youthat risk and police by providing earlyintervention and positive interaction.

Te members will work collaboratively with community partners and agencies with a proactive approach in order toaddress challenges that our youth are

Reecting on ourhistory, living inthe moment, andplanning or the

uture.

mayors message


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facing. Community prevention is

vital for a healthy community. Tisprogram is about interacting with ouryouth, coaching and providing them with life skills, accountability andthe information they need to make

informed choices when in negative

peer-pressured environments.

Tis last December we were soproud to open Phase II of Genesis

Place. Phase II is a multi-purposefacility that will provide for a varietyof community needs. Tis facility will increase tourism and allow forhosting of regional, provincial and

national events, such as trade shows,conferences, sporting events and

much more. Planning for Phase IIIhas already begun, which includesadding two indoor ice surfaces.

Building Better Communities

We have also been busy gatheringfeedback from the community to

create the AirdrieONE plan. Tisnew community plan will replacethe current Municipal DevelopmentPlan. Te goal of this plan is to bring

together, in one document, the goalsand objectives of all of the Citymaster plans and community-basedinitiatives. AirdrieONE will ensurethat the community as a whole ismoving in the same direction with

regards to creating sustainable,attractive, functional communities.We will continue to gather feedbackfrom citizens in 2010 in the creationof this plan.

In the fall of 2009, we were sopleased to host the Sustainable

Speaker Series with ve renownedCanadian and American speakersdiscussing dierent aspects ofsustainability and their importancein a growing and thriving city such

as Airdrie. Te series was a part of theCitys commitment to educating andworking on the Airdrie SustainabilityPlan. Tis year we are exploringnew and innovative ideas to further

community sustainability.

City Council continued to work with Airdrie Housing Limited, anon-prot organization dedicated to

facilitating and managing aordable

housing in Airdrie. Airdrie HousingLimited was able to secure a grantto purchase the Mountain View Apartments in Airdrie, allowing

aordable rental units to becomeavailable immediately upon vacancy. Airdrie City Council also approvedthe re-zoning of a portion of theMonklands site, allowing for Habitat

for Humanity to propose a buildin 2010. We are looking forward

to their proposal to provide homeownership for residents who mightnot otherwise aord a place of theirown.

Airdrie Emergency Services

In 2009, Airdrie City Council decided

to terminate the service agreementbetween the City of Airdrie and Alberta Health Services, divestingEmergency Medical Services on June

30, 2010. Tis resulted in the City of Airdrie operating a stand-alone re

department.

We have planned in our 2010 budgetfor the costs of the divestiture of

Genesis PlacePhase II


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the ambulance services and are dedicated to working

with Alberta Health Services in the next few monthsof transition, ensuring no disruption of services to ourcitizens.

Building Relationships

Te City of Airdrie is carving out its place in Alberta

and we are reaping the benets of a higher prole withour provincial government as we work closely withvarious ministries to improve our services and plan a

sustainable future.

Te City continues to work with our regional neighbours,Rocky View County, City of Calgary and with theCalgary Regional Partnership. For the last couple of

years, we have collaborated with Rocky View County inthe creation of the Intermunicipal Development Plan,which outlines our growth boundary. In 2010, we will

be proceeding with the expansion of our boundaries.

Te City of Airdrie will also be connecting with theCity of Calgary in the fall of 2010. Airdrie commuterswill gain access to a two-way intercity express connectorservice to Calgary. We will also be working to improve

our local Airdrie transit service frequency, connections,and reliability.

Whats in store for 2010?

I am looking forward to many more successes and

growth of our City in 2010. We will have muchmore to celebrate with the creation of our AirdrieOneCommunity Plan, expanding our borders, sustainableinitiatives, new commuter options and a fall municipal

election.

Mayor Linda Bruce

Mayor, City o AirdrieApril 19, 2010


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Within the context of a global economicrecession, the City of Airdrie entered2009 uncertain as to the impact it wouldhave on its budgeted operations and services

to Airdrie residents. With disciplinedbudgeting and a careful monitoring ofresources, the City experienced a positiverebound from 2008. Paced by growth ofover 11%, the City saw increases in housingstarts by 124, building permits by 751 andconstruction value by $17 million over theprevious year. Tese are all positive signs forgrowth leading into 2010.

In its annual report of nancial indicators,Alberta Municipal Aairs now benchmarksAirdrie with ve other Alberta cities, all largerin population. Te City of Airdrie continuesto perform well, having the lowest averagenet municipal property taxes per capita andthe lowest operating expenditures per capitaamong many indicators. Tis serves asfurther evidence that the City is positioned

well nancially for the future.

City of Airdrie sta was acknowledgedfor many accomplishments during 2009.Te City of Airdrie was recognizedinternationally for the AirdrieNOW website

and for our online census system. Tenancial services team also won a nationalaward for excellence in nancial reportingfor a second consecutive year. No lessimportant, many sta worked side by side

with organizers and volunteers to host therst ever Airdrie Regional Air Show, the 55Plus Games, and the celebration of Airdriescentennial.

Operationally, 2009 marked continuedsuccess and some dicult decisions.

Among the many successes were thelaunch of AirdrieNOW, online censushosting for other communities, thecompletion of a business continuity planin anticipation of the pandemic, and anagreement with Rocky View County ongrowth areas for each jurisdiction. Givingsignicant community direction, Council

endorsed a transit service and investmentplan and a ve-year waste plan fromEnvironmental Services. Finally, afteryears of providing the community with an

ecient and integrated model for re andambulance service, Council exhausted allavenues of negotiation to keep the model,before deciding on the divestiture ofambulance service late in the year.

Capital investments in 2009 werehighlighted by the completion of Phase 2of Genesis Place, the construction of theYankee Valley Boulevard / Queen ElizabethII Highway underpass, the purchase of anadjacent site to grow our Parks and Public Works operations, and the signicantcompletion of the Chinook Windsskateboard park as well as parking. Also ofnote is the design of a main west side rehall and a satellite station in Kings Heights.

Looking ahead to 2010, sta will continueto be challenged in a recovering economy.Of signicance will be the transitionof ambulance service to Alberta HealthServices, annexation, the continuation ofthe AirdrieONE plan, and the launch ofthe new inter city express service, better

connecting Airdrie to Calgary with transitservice. As a new City Manager, I am proudto be part of an exceptional sta teamthat continues to commit to providingexcellent service to our residents.

On a personal note, I congratulate GeorgeKeen on his retirement as City Manager atthe end of January this year. He has beena great leader, has taught me well, andhas laid a solid foundation for the Cityto move from Good to Great. I look

forward to the journey!

Paul Schulz

Chie Administrative Ofcer, City o AirdrieApril 19, 2010

Te City takesgreat pride in itssound fnancialmanagement.

city managers message


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city prolehe City of Airdrie, Alberta celebrated its 100th Anniversary on September 10, 2009. Airdrie was incorporated as avillage in 1909, a town in 1974 and a city in 1985. Te name Airdrie means Te Kings Height. A unique featureof our city is that its elevation makes it one of the highest cities in Canada.

Airdrie is the eighth largest city in Alberta with a population of 38,091 (2009 Civic Census) and its area covers

approximately 34 square kilometers. It is located in the Calgary-Edmonton Corridor (Queen Elizabeth II Highway Provincial Highway #2) 32 kilometers north of the Calgary city centre.


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city government

City Council fulls the legislativefunction of the Citys municipalgovernment and is comprised of amayor and six aldermen, who areelected by the citizens of Airdrie everythree years. Te mayors position is

full-time while the aldermanic rolesremain part-time. Te majority of

committees undertaken by electedocials occur during the eveningand weekend hours. Most elected

ocials retain full-time employmentin addition to their role as alderman.

Council is responsible for establishingcorporate policy and direction forboth the short and long term. Council

also sets the strategic priorities forCity sta on an annual basis. Councilmeetings are held on the rst andthird Mondays of each month at 7:00p.m. in Council Chambers. Should a

Council meeting fall on a statutoryholiday, the meeting is held at thesame time and place on the nextbusiness day (uesday).

Te following Boards, Committees

and Commissions exist to provideinput and advice to City Counciland include: Airdrie Environmental Advisory Board, Airdrie MunicipalLibrary Board, Community Services

Advisory Board, Assessment ReviewBoard, Finance Advisory Committee,

Municipal Planning Commission,Municipal Police Committee andthe Subdivision and Development

Appeal Board.

Council Members(left to right): Shawn Howard, Glenda Alexander, Richard Siemens, Linda Bruce, Kelly Hegg, Marlene Weaver, Fred Burley

City Council


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LegislativeServices &Corporate

Communications

Financial

Services

IT Data

Services

IT Technical

Services

Procurement

& Accounts

Payable

Assessment,

Taxation &

Utilities

City Council

City Manager (CAO)

Paul Schulz

Director of People

& Organizational

Effectiveness

Judy Molnar

Director of

Corporate Services

Jana Jaeger

Director of

Community

Safety

Mark Locking

Director of

Community

Infrastructure

Lorne Stevens

Director of

Community

Services

Michelle Lock

Human

Resources

Business

Strategy

Building

Inspections

RCMP

Administration

Disaster

Services

Emergency

Services

Municipal

Enforcement

Public

Works

Fleet

Services

Environmental

Services

Planning,

Parks &

Sustainability

Equipment

Training

Engineering

Services

BuildingOperations &

Corporate

Properties

Transit

Genesis Place

& Arena

Operations

Community

Development &

Social Planning,

Arts & Culture

Economic

Development

City of Airdrie Organizational Structure

City Administration

he Chief Administrative Ocer (CAO) or City Manager reports directly to Council. He is responsible for providingCouncil with information and advice on policy matters and ensures that Councils decisions, policies and programsare implemented. Te City Manager also ensures that the City maintains strategic partnerships and alliances.

Te Corporate Planning eam, consisting of the City Manager, ve Directors, and three employees-at-large are responsiblefor overall leadership to the organization and for creating the corporate culture. Tey administer the Citys operating andcapital budgets and are accountable for long-range and corporate plans for the organization.


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City Services

he organization reporting tothe City Manager is structuredinto ve directorates: Community

Infrastructure, Community Safety,

Community Services, Corporate

Services, and People and Organizational

Eectiveness.

Community Infrastructure provides

engineering services, environmental

services, equipment training,

infrastructure repair and maintenance,

eet services, operation of water and

wastewater facilities, planning, parks

and sustainability. Planning provides

land-use planning and subdivision and

development services. Parks providesmaintenance of the Citys parks and

open spaces, playground and rink

maintenance, and operation of the

Citys cemetery.

Community Safety includes building

inspections, emergency services, disaster

services, municipal enforcement and

police. Services include inspection

services for new and existing buildings,

medical, re and rescue services, disaster

services in the event of a community-

wide crisis, bylaw enforcement, business

and animal licensing, animal control,

and police protection contracted

through the RCMP.

Community Services co-ordinates the

delivery of and long-range planning

for recreation, culture, transit and

social services in Airdrie. Services

include the operation of a wide variety

of recreational and cultural activities

and facilities. ransit oers a xed

route in the city and an after-hours

Dial-A-Bus system. Social Planning

supports community human services,

volunteerism and long-range socialplanning. Library services are provided

on Councils behalf through the Airdrie

Public Library, a controlled corporation

of the City. Building operations and

management of corporate properties

are also part of Community Services.

Economic Development provides the

marketing of Airdrie to prospective

businesses and business development in

the community.

Corporate Services co-ordinates the

Citys insurance and risk management

program, records management,

legislative services to Council and

Council boards, external legal services

and corporate communications,

nancial and information technology

services to the City including

administering and co-ordinating City

budgets, long-term borrowing, cash

and investing activities, accounting and

nancial reporting for the City and

its controlled corporations, accounts

payable and receivable, procurement,

information technology systems

and support, property assessment

and taxation, and utility billing

administration.

People and Organizational Eectiveness

provides resources, support, payroll

and a safe work environment to City

of Airdrie employees. It also develops

and implements the corporate strategic

plan and supports departments in the

preparation of annual business plans.

Airdrie celebrates 100 years of history built on pioneer spirit, community pride

and opportunity for the future.


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highlights and achievementsCouncil revisited and conrmed their six primary focus areas, with long-term objectives and new initiatives identiedunder each for 2009. Te description of the objectives and results of the initiatives are presented in the following table.

COUNCILS STRATEGIC PRIORITIES, NON-FINANCIAL GOALS AND OBJECTIVES

Strategic Priority Desired Outcome Status

Growth Management Implement the rst phase of thegrowth strategy

Implement the Citys Economic

Development strategy to targetspecic business sectors

As follow up to the Citys Growth Strategy and as accepted byCouncil last fall, Airdries long term growth has been discussed withRocky View County during this years Intermunicipal Committeemeetings. The County and City agreed on growth areas for bothjurisdictions and presented the concept at two public open housesin June. The next steps are to complete an update to the currentIntermunicipal Development Plan and to start preparing anapplication for annexation based on the agreed upon concept.

In implementing the Citys economic development strategy, target

sector research reports were completed, and the department isin the process of developing a marketing plan specic to the fourtarget sectors. Also, a business visitation program commencedwithin these sectors.

InfrastructureManagement

Explore alternate methods ofcoordinating infrastructuredevelopment to minimizecumulative nancial impact andservice disruption to the resident

Review current road standards

based on a just-in-timephilosophy

Actively participate in the CalgaryRegional Partnerships Exploring

New Transit Paradigms Acrossthe Region project

Investigate connector service

options to Calgary and/or to theCalgary transit system to meetthe growing need of the city

The City has convened a shallow utility committee to reviewexisting planning, construction coordination, communicationand corridor planning processes. The intent is to identify processand communication improvements which are going to require anongoing eort and commitment involving the City and shallowutility companies.

Engineering Services has implemented a new phased approach for

arterial roadways that can be applied in many instances dependingon site specic circumstances. This approach is to constructthe centreline median and a single lane in either direction in thepermanent alignment, which allows for additional intersectionturning lanes to be added in stages and for ultimate four or sixlaning to be deferred.

Mayor Bruce, Chair of the CRP, has been involved in developmentof a long term regional transit vision and plan in support of theRegional Land Use Plan directions. The CRP is considering a fullpackage of options for regional transit in the future.

The Community Development department continues to investigate

connector service options. The City has partnered with CalgaryTransit for the development of a transit strategy. Council adopteda transit strategy in the fourth quarter that will see the start of newroutes and an inter-city express bus (between Calgary and Airdrie)in the fall of 2010.


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Community Well-Being

Advocate to senior levels ofgovernment to ensure thatAirdries Integrated EmergencyServices delivery model ispreserved

Support the eorts of localcommunity groups in hostingthe Alberta 55 plus SummerGames and in organizingAirdries Centennial celebrations

On April 1, 2009, the Province took over responsibility forambulance service and contracted the City to deliver the service fortwo years. Sta continued to dialogue with the Province throughthe transition period but was asked to make changes to Airdriesintegrated service and meet the criteria of Alberta Health Services.

Council disagreed with the request and entered into mediation todevelop an agreement with the Province. In the end, agreementcould not be reached on options put forward by the City andCouncil decided to divest of ambulance services as of June 30, 2010.

Plans for both activities were well established by communityvolunteers, and sta played key roles in the support and provisionof resources to ensure both events were celebrated in a mannerthat engaged Airdrie residents and created a sense of pridein the community. These celebrations showcased Airdrie as avibrant, caring community and allowed residents and visitors anopportunity to experience Airdrie and all it has to oer. Sta hadalso assisted local groups with incorporating the Centennial theme

into community events. Centennial fundraising and marketingeorts were successful. The legacy art project was selected anderected in its permanent location in front of City Hall. Both eventswere an unqualied success with feedback from all stakeholdergroups being extremely positive.

CollaborativeRelationships

Partner with other agencies/business partners to assessthe potential of developinga specialized post-secondaryinstitution(s) in Airdrie, or oflocating a satellite campus here

Implement strategies resultingfrom completion of the CalgaryRegional Partnerships regionalplan

Design the necessaryinfrastructure to support thelong-term policing needs of thecommunity

To date, the mayor and senior sta have met with one post-secondary institution to discuss their interest in Airdrie.

The Calgary Metropolitan Plan was passed by the members ofthe Calgary Regional Partnership members on June 19, 2009. TheProvince will now go through a process to give the Plan legislativeeect. This is expected by mid-year 2010. Planning will undertakereviews of both the Airdrie City Plan and Land Use Bylaw in 2010and will ensure that the relevant policies from the regional plan areincluded in this review and potential revisions brought forward toCouncil.

Sta continues to work with the RCMP on the location and designof a policing facility that will benet the community in the longterm. Land required from the Province that was necessary for anew large multi-disciplined facility is not forthcoming so other

options are being considered.


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OrganizationalExcellence

Align the Citys policies and planswith the new vision, once thathas been established, includingrevisiting the organizationsmission statement

Implement strategies resultingfrom the employee surveyfollow-up

The new City of Airdrie Vision was adopted in November 2008.Business Strategy undertook a process for CPT to revisit thecorporate Mission Statement in the fall of 2009. This process willbe completed in the rst quarter of 2010. CPT will discuss aligningthe Citys policies and plans with the new Vision and Mission

Statement as part of this process.

The employee survey has now been fully reviewed and discussed.There are specic strategies coming forward through CorporateCommunications to keep the principles of Good to Great and theorganizations culture more in the forefront. In addition, leadershiphas been discussed with the CPT group. Ways to be more strategic,more visible and connected are being reviewed. New traininginitiatives are being investigated as are opportunities to improve/expand team leader skills as they work with their areas. HumanResources is putting together a tool kit for Team Leaders in 2010and is looking at specic courses to add to and improve the skills ofthe organizations people to lead.

Environment Identify the next steps inexpanding recycling initiatives

Measure carbon footprint ofAirdrie

Develop a brand basedon Airdries environmental

standards for civic buildings

Review the Citys subdivisionservicing agreement in order tomore eectively address issuesrelated to construction litter

Ensure that the City is doing itspart to provide adequate meansfor residents to dispose of litter

Environmental Services has recently requested competitiveproposals for a variety of waste collection and recycling services.The feasibility and cost-eectiveness of these proposals is currentlybeing reviewed.

There has been no progress to date on this initiative.

Corporate Properties has been conducting research and haspresented a report to CPT. This report will be going forward to City

Council in early 2010.

Changes have been proposed to the subdivision servicingagreement, and these changes are being nalized with thedevelopment community.

Garbage bins have been added throughout Airdrie. The parksdepartment is now changing four hundred garbage cans threetimes a week in summer months. Throughout the remainingmonths garbage is collected once or twice a week. This does notinclude special events with user groups now having garbage andrecycle bins available for community events. The TD Bank donationhas been used to purchase receptacles to be distributed in frontof major facilities in the next few months. Specically, recycle andgarbage receptacles have been added to First Avenue and fouradditional dog bag dispensers have been added along the Canalspathways and in Nose Creek Park. A pilot project involving theuse of white dog bags in dispensers along Thorburn pathways isunderway. The pilot project is to assist sta in safely identifyinggarbage during clean up.


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nancial goalsOne of the nancial goals for 2009 was to complete the gathering and valuation of historical capital asset informa-tion to implement depreciation in the nancial records, commencing January 1, 2009. Processes were establishedfor the ongoing additions, disposals and valuation of new assets particularly related to infrastructure assumed from thedevelopers upon completion of subdivisions.

Improvements in the documentation, tracking and reporting of capital projects was a priority for the city as anincreasing number of projects are multi-year projects or are carried over from previous years which complicates theaccounting. Capital budget software was implemented during the year and has simplied the process dramatically.Similar improvements for grant administration and reporting are also a priority particularly due to the receipt of anadditional $80 million in funding over the next ten years.

For subsequent years, the major goal is to gradually increase the annual contribution to reserves equivalent to a percentageof total assets. Increasing contributions to reserves is necessary to ensure that a combination of resources is available tonance capital projects and ongoing maintenance of existing facilities and infrastructure.

ORGANIZATIONAL

EXCELLENCE

CUSTOMER

INTER

NA

LPROCE

SS

FIN

AN

CIA

L

LEARNINGA

NDG

ROW

TH

GROWTH

MANAGEMENT

COLLABORATIVE

RELATIONSHIPS

COMMUNITY

WELL-BEING ENVIRONMENT

INFRASTRUCTURE

MANAGEMENT

COUNC

ILSSTRATEGICFO

CUSAREAS

CORPORATE SCORECARD

Te Corporate Scorecard provides a quick snapshotof progress towards the Citys targets for key strategic

objectives, incorporating the four perspectives ofcustomer, nancial, internal process and learning. Keyresult areas are mentioned below.

CustomerIs the organization delivering the services our customers

want?As resources become increasingly scarce due to

our communitys exceptional growth, it is vital that theCity targets those resources towards the provision ofthose services that our customers value most.

Strategic Objectives Measures 2008 Actual 2009 Actual

Provide ease of trac ow Citizen Survey concern rating 54% 31%

Improve access to health care Citizen Survey concern rating 18% 12%

Provide leisure opportunities for

families

% change in concern rating on

Citizen Survey

Not in top 5

concerns

Not in top 5

concerns

Manage growth eectively Citizen Survey rating 60% 59%


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Financial

Is the service delivered at a good price?Given that the major source of revenues comes directly from taxpayers, it is imperativethat the City is scally responsible with municipal funds, and strives to provide good value for the residents tax dollar. It isalso important to ensure that alternate sources of funding are sought, rather than relying strictly on the taxpayer.


Improve assessment split Actual assessment split (residential

vs. non-residential)

86/14 85/15

Ensure sound scal stewardship Number of points in audit

management letter

0 2

Minimize tax increases, while

planning prudently for the

future

Citizen Survey rating of value for

tax dollar

72% 70%

Internal ProcessesCan we improve upon a service by changing the way it is delivered?Eective and ecient processes and business practicesare essential to improving service delivery and maximizing resources, which in turn impact customer satisfaction. Teorganization needs to remain exible and keep bureaucracy to a minimum, in order to respond to a rapidly changingenvironment.


Improve productivity Operating costs/capita $1,401 $1,467

Expand stakeholder

involvement

Number of meetings with the M.D. 10+ 11

Enhance service

delivery

Citizen Survey rating of Quality of Services 82% 83%

Improve eciency Citizen Survey rating of

Eciency of Services

79% 78%

Communicate with

stakeholders

Accomplished

or not

5 external publications

distributed; 12 editions

of e-newsletter;

Centennial

marketing; internal

communications

initiated

5 external publications created

and distributed; 41 news releases;

6 brochures; Twitter and web

enhancements; 12 editions of

e-newsletter; Genesis Place branding;

Mayors radio show; Centennial and

Air Show marketing /media; internal

communications initiated


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Learning and Growth

Is the organization maintaining employee training and technology or continuous improvement? In our rapidly-changing,knowledge-based environment, the corporate culture must support a mind-set of continuous learning and opencommunication, retain and attract high-calibre employees, and encourage the use of technology as a tool to supportecient and eective business processes.


Actively promote our culture % of employees stating that the City

is a good place to work (bi-annual

survey)

97% 98%

Customer Satisfaction

he City conducts an annual comprehensive Citizen Satisfaction Survey to assess our customers perception of theorganizations performance. Equally important, the survey is used to determine issues that are of concern to the

community and to identify the services deemed most important to Airdrie residents, and the quality of those services.Te results are vital to Council and to the Administration in setting direction.

Te overall Citizen Satisfaction Index increased slightly to 3.83 from 3.81 in 2008 (out of a possible ve). Of particularsignicance was a 23% drop in resident concern about infrastructure, trac and roads, which is likely a reection of

some major road and interchange enhancements completed in the past year. Once again, given the continued highgrowth in the community and the associated pressures that can arise related to that, these ratings continue to reectthat Airdrie residents feel generally very positive about their community. Te consultant that conducts the Citys surveyindicated that, of 17 municipalities that they survey, Airdrie has the highest quality of life indicator of the group.

CITIZEN SATISFACTION SURVEYYear-over-Year comparison

Key Indicator

100

90

80

70

60

5040

30

20

10

0Managing

the affairs ofthe community

ManagingGrowth &

Development

Quality ofServices

Efficiencyof Services

Value forTax Dollar

Qualityof Life

SafeCommunity

2009200820062005 2007


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corporate successes

Population

he citys population has increased 99% since 2000 to 38,091 based on the 2009 Municipal Census which is completed

in April of each year.

10,000

20,000

30,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

40,000

Population

GROWTH MANAGEMENT

Te citys growth started slowly but steadily during the rst quarter of the year and began to pick up in the last halfof the year. Te changes are demonstrated in population, assessment growth and increasing building permit activity.


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Property Assessment andTaxation

Assessment growth continues to bemainly in residential assessment withthe percentage of non-residentialassessment decreasing from 20.1% in

1998 to 14.62% in 2009. Te totalnumber of new parcels increased 4%over the previous year to a total of15,707 taxable parcels.

Residential assessment generates 85%of the total tax revenue, while non-residential contributes 15% of the taxrevenue.

City Council approved a 4.3% taxincrease for 2009 which generated

$971,145 in new tax revenue. Te Cityachieved excellent statistical results todate for Airdrie, with a 98.1% median

assessment level for residential and a98.9% median assessment level fornon-residential assessments. Nineappeals were heard before the AirdrieAssessment Review Board (ARB) out of

15,707 parcels. wo appeals were heardat the Municipal Government Board.

4,000,000,000

1,000,000,000

2,000,000,000

3,000,000,000

5,000,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

0

2

4

6

8

10

12

Assessment/Tax Rate Comparison

AssessedV

alue

TaxRate

Non-residential Assessment

Residential Assessment

Municipal Tax Rate Non-residential

Municipal Tax Rate Residential

7,000,000,000

6,000,000,000

02009

Building Permits

he total number of building permits and addition of single familydwellings increased in 2009. otal permits were 2,881 (2008 2,130)

an increase of 35%, and 816 single family dwellings were constructedcompared to 568 in 2008 - an increase of 43.7%. 650 R1 and R2 residenceswere completed in Airdrie in 2009, up from 540 in 2008 bringing thetotal number of dwellings to 14,487. Multi-residential construction (R3s& R4s) increased 295% from 42 units to 166 in 2009.

While housing starts had declined considerably, 603 houses were recorded

by the end of November. Tis exceeded the number of homes beingconstructed in St. Albert, Grand Prairie and Red Deer - all with muchlarger populations than Airdrie -during the same period of time.

Te number of homes constructedin Airdrie was approximately 4%of the total number of homesconstructed in all of Alberta.Tis is compared to 5% in 2008

(Source: Canada Mortgage andHousing Corporation).

otal construction values increasedto $201.5 million, an increase of

$17.5 million from 2008 ($184million).

4,000

4,500

-

500

1,000

1,500

2,000

2,500

3,000

3,500

NO.O

FUNITS/PERMITS

Building Statistics

$300,000,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$500,000,000

BUILDINGVALUE

200920012000 2002 2003 2004 2005 2006 2007 2008

$350,000,000

$400,000,000

$450,000,000

# Single Family Dwellings Building/HVAC permits Total Building Value


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Residential

otal house (R1) permits exceeded the number of homes being constructed in several similar-sized Alberta communitiesduring the same period of time.

House (Single Family Dwelling) Permits Starts January to December 2009

City/Town 2009 New Builds Population (Approximate)

Airdrie 654 38,091

Chestermere 121 12,589

Cochrane 416 15,424

Stony Plain 145 12,400

Spruce Grove 234 23,326

St. Albert 300 58,501

Fort Saskatchewan 289 17,469

Grande Prairie 314 50,227

Lethbridge 687 85,492

Red Deer 497 89,891

Leduc 322 10,226

Tree new residential neighbourhoods were approved including Hillcrest, Midtown and Bayview Bayside.


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Commercial and industrial construction was down slightlyfrom 2008; however, 2009 nished o strongly. Airdrie

recorded $40.4 million in construction value. Major projectsincluded:

Airdrie Business Licenses by Category, 2009

CategoryNumber of Business

Licenses Issued% of all Businesses

% of all Airdrie-based

Businesses

Commercial or Industrial Business 598 26% 42%

Home-Based Business 800 34% 55%

Massage Therapist Practitioner 47 2% 3%

Non-residential (out-of-town) Business 879 38% n/a

Total 2,324 100% 100%

Source: City o Airdrie Business Licensing

Business License Growth

Alberta is known for its entrepreneurial spirit and Airdrie is no exception. Almost 2/3 of our storefront businesses

are classied as self-employed, and a further 800 residents run home-based businesses. Te competitive economicenvironment and Airdries superb quality of life resulted in a 5.1% increase in business licenses issued in 2009.

2009 also saw continued diversication in the types ofbusinesses and the range of products and services oeredlocally.

Te most active industry continued to be construction,reective of the increasing commercial and industrial, aswell as stable residential construction in the city.

Airdrie is experiencing a rise in the retail tradeand professional, scientic and technical sectors.Manufacturing and transportation and logistics rmscontinue to help diversify Airdries economy.

Airdrie has a thriving home-based business sector whichaccounts for 55% of all Airdrie-based businesses.

Unemployment Rate

Calgary Metropolitan Area 7.2% (Source: StatisticsCanada, December 2009)

Airdrie 1.4% (Source: Airdrie Civic Census, May 2008)(Note: 3,145 people or 12.07% did not respond to this question)

Commercial & Industrial Construction Growth New south east re hall Sobeys grocery store New Atco Gas building New strip malls

Hotel expansion New Shoppers Drug Mart

Brewsters Restaurant owerlane Mall exterior upgrade


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Labour Participation Rate

Calgary Metropolitan Area 77.4% in January 2009, 76.3% in January 2010 (Source: Statistics Canada) Airdrie 79.3% (Source: Statistics Canada, 2006 Census)

Growth Statistics At A Glance 2009 2008

Population growth 11.65% 8.26%

# of acres developed 118 258

Parcel growth 4% 12.9%

# supplementary assessment 798 990

Total construction value $201,500,000 $184,000,000

Permit revenue $1,808,660 $1,677,138

Total # inspections permits 2,816 6,739

R1, R2 permits 650 568

Multi-family permits 166 42

Planning Department Successes: Annexation discussions were initiated Growth work was completed An ecological assessment was completed Smart Growth land use bylaw work was initiated

New developments were introduced to the city at Dickson Crossing and downtown


26/78


Engineering Department successes:

On budget and substantial comple-

tion of Veterans Blvd 8th Street

to 24th Street- Veterans Boulevard was reconstruct-

ed to four lane divided standard

On budget and substantial comple-

tion of 8th Street 1st Avenue toVeterans Blvd- Street reconstruction to four lane

divided standard

In cooperation with Rocky View

County the facilitation of an in-

ter-regional transportation networkstudy- Identied the major road network

linking the two municipalities

Completion of the Main StreetRoad Diet Study- Identied opportunities to en-

hance Main Street to create a morepedestrian friendly environment

Public Works Department

Successes: A new valve design was installed in

2007 at the South Reservoir, as the

old design was experiencing erosionwhich could lead to failure if unde-tected. Te new valve was checked

at 3, 6 and 18 months, showing nosign of cavitation wear. It is an-

ticipated that this valve should be

in service for many years to comewithout any trouble. Another valvehas been purchased for the newNortheast Reservoir.

A new service request system nallybecame a reality. Previously, stahad been responding to resident re-quests by writing up a paper formof their concerns. Now when a resi-

dent calls to report an issue, an ap-plication logs all the details of the

call allowing sta to respond moreeciently to calls, which increasesthe levels of service.

Sta is utilizing GPS in the devel-opment stages of a valve exercis-ing program. Waterline valves willbe systematically located, exercised

and repaired if need be. Tis will bea multi-year project to proactivelyensure that our water supply system

is reducing water loss from leakingvalves and, in the event of a main-line break, the main can be isolated.

Tis reinforces the Citys steward-ship and sustainability values.

In the last four years, the City of

Airdrie has acquired three sander

units that are capable of preciseproduct placement on winteryroads. Product is placed on the

road instead of in the boulevard,reinforcing the Citys commitmentto environmental stewardship.

In 2009, the decision was made to

convert the gravel surface on 24thStreet between Yankee Valley Blvdand Veterans Blvd to recycled as-phalt millings mixed with emul-sion, creating a hard packed sur-face that resembles a paved road.

Te improved 24th Street has held

up all season which has a resultedin operational cost savings andthe added benet of easier snowploughing. It is anticipated that the

surface will last two to three yearswith minimal maintenance beforerequiring reclamation.

In April 2009, a Public Works In-

frastructure Repair Crew was addedto the stang complement, along

with an additional hydrovac unit.Te business case that was preparedto justify this innovative new ven-

ture will be utilized to measure thesuccess of this crew and report theresults back to Council in futureyears.

Infrastructure Management


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Parks Department Successes:

Te new skate park is 90% complete Te tennis courts at East Lake were

completed Additional pathways were completed

Bert Church eatre Successes:

Te 2009 Centennial Concert Se-ries (featuring Barney Bentall, SassJordan, & Michelle Wright) largelypaid for itself with the revenue gen-erated from ticket sales

otal Program Fees collected in the2009 budget year for the Profession-

al Performing Arts Series exceededprojections by more than $8,000

Te Teatres overall operating bud-get for 2009 was brought in at 96%(95% revenues 96% expenditures)

Community Services Successes:

Youth Outcomes

In February 2009, City Council ap-proved the City of Airdrie YouthStrategy which is a policy document

that guides the City of Airdrie towards greater youth friendliness.It provides a framework to engageyouth in the community in ways thatresult in lasting relationships.

Hyjinx had an exciting year in2009; continuing to move towardsan advocacy role for youth in theCity of Airdrie. Activities included:

- meeting with sta from GenesisPlace to discuss oonie eenNight events

- hosting a youth week event andhelping to promote other youth week events happening aroundthe city

- auctioning o forty miniaturepieces of art created by childrenand youth, in lieu of pledges forthe Canadian Cancer Society Relayfor Life, raising just under $400

- hosting its 5th annual SilentNight fundraiser, raising over$1,000 through a silent auction

for the Airdrie and DistrictHumane Society

- volunteering for a number oflocal events including: AirdrieCentennial, eens After Hours,Volunteers of the Year Awards,Go Girl, Empty Bowls, and theMayors Run

Social Outcomes

In 2009, the City funded elevenpreventive social programs thatenhance the quality of life ofAirdrie residents: Airdrie & DistrictVictim Assistance, Airdrie Boysand Girls Club, Airdrie Food Bank,R.J. Hawkey Breakfast Program,Meals on Wheels, mPower YouthMentoring, Family and CommunityResource, Information and Referral,

Counselling, Airdrie SeniorsOutreach and Volunteer Airdrie.Residents who have attended these

programs reported having: Learned new strategies to help

them cope with crisis (77%) Actively participated in the

community through volunteerism(92%)

Improved relationships with theirpeers, families and community (82%)

Gained new information aboutavailable resources in the community(77%)

Increased their awareness of socialneeds (34%)

Gained resources to liveindependently (77%)

Skate Park / AEAA

Te Citys Community Developers worked with the Airdrie Extreme Athletics Association (AEAA) toassist with fundraising eorts andcommunity consultation for a newconcrete skate park. After a number

of successful fundraising eorts,including the second annual Grind& Grill, the group was able to raise$30,000 towards the park. Te hard work put forward by the group isabout to pay o the Citys newskate park is under construction andis due to open on July 1, 2010.

Construction of the Skate Park

Community Well-Being


28/78


55+ Games

Members of the Airdrie communityembraced the prestigious appoint-

ment of hosting the 2009 Alberta55+ Summer Games. Under thetheme of Soaring Spirits and Win-ning Hearts, a Board of Directorsand a variety of committees and vol-

unteers collectively worked togetherto engage and build community andensure that Airdrie put on a spectac-ular show for athletes, participantsand spectators alike. Te 55 Plus

Summer Games provided an enter-taining and rewarding opportunity

for staying active and living a healthylifestyle. Activities ranged from ath-letics, cycling, tennis and swimmingto disc golf, darts, oor curling and

bocce, as well as an arts and culturalcomponent. Te variety of activitiespromoted participation from any de-mographic, be it the hardcore athleteto the most creative of artist over the

age of 55.

Airdrie Regional Air Show

Te inaugural Airdrie Regional Air

Show held on July 22, 2009 was hosted

through the joint eorts of volunteers,

sponsors and local municipalities.

With less than seven months to plan

and prepare, a core committee of vol-

unteers from all over southern Alberta

was formed, and necessary partner-

ships with sponsors were entered into.

Te Airdrie Regional Air Shows suc-

cess of drawing approximately 25,000

spectators proved that Airdrie and re-

gion were hungry for aviation events of

this magnitude. Aerial acts included:Te Canadian Forces Skyhawks, Ca-

nadian Forces Snowbirds, Carol Pilan

Wingwalker, Dan Buchanan Hang

Glider, F-18 Hornet, F-86 Hawk One

Sabre, Harvard piloted by Jim Hry-

mack, Kent Pietsch, MX-2 piloted

by Rob Holland, P-51D Mustang,

Pitts S2S- piloted by Bill Carter and

team Rocket. Ground displays that

included 100 Years of Automobile

display to keep with the theme of 100years of powered ight in Canada and

Airdries 100th Birthday.

Airdries Centennial Celebration

On September 10, 2009 Airdriecelebrated its centennial. o markthis important occasion, thecommunity undertook an ambitious

series of centennial projects andembarked on a year-long celebration.Tese projects were an ideal way ofcelebrating 100 years of history whileengaging the community, dening

Airdries identity and buildingcommunity pride.

2009 Alberta Museums Association

Outreach Award

On October 1, 2009, the City of Airdrie Centennial Committee washonoured by the Alberta Museum Association with the 2009 AlbertaMuseums Association Outreach

Award for the projects contributionto local and provincial history.Te Outreach Award recognizesexceptional people and projectsmaking distinctive contributions

to the broader community ordemonstrates innovative waysof promoting awareness of local

heritage. Te Airdrie CentennialProject is being recognized because

of the number of outreach initiativeshighlighting Airdries dynamic rolein the history of Alberta. Projectsinclude a Google Earth virtual realityhistoric town tour; a research kit for

students and community archives; anoral history DVD; a commemorativehistory book; timeline brochure; andmany other successful initiatives.

Olympic Torch Relay Run

Airdrie was chosen as a stop on the2010 Olympic orch Relay Run.


29/78


Organizational Excellence

Information Technology

Department Successes:

Te City won the URISA Exemplary

Service in Government Award forits Online Census, a collaborative

inter-departmental eort

Replaced corporate rewall to beable to meet the needs/demands of

the corporation

Implemented new corporatenetwork design including upgradednetwork switches in preparation for

future growth

Implemented an internet reputationsystem, allowing the corporation to

be more accountable when usinginternet resources

Department awarded Spirit ofInnovation award in Kamloops,BC for the Citys implementationof the Mobile Mesh Network

Implemented bio-token for remoteaccess

Installed bre optic cable to connectKing Heights Fire Hall and South

Reservoir

Expanded the access points formobile wireless computing

Financial Services Department

Successes:

Te City of Airdrie FinancialServices eam was awarded with

the Canadian Award for FinancialReporting (CAnFR) from theGovernment Finance Ocers Association (GFOA) of Canadaand the United States for its 2008

Annual Report. Te award isfor excellence in Governmentalaccounting and nancial reportingand represents a signicantaccomplishment by a municipal

government and its management.

Te City of Airdrie budget teamreceived the Distinguished Budget

Presentation Award from theGFOA, reecting the commitmentto meeting the highest principles ofgovernmental budgeting

Financial Services implementeda software product for budgetingpurposes which has signicantlystreamlined the Citys budgetingprocess

Sta was able to access fundingthrough several Economic StimulusPlans including the RecreationalInfrastructure Program, theCommunities Component of

the Build Canada Fund, and the

National rails Coalition railConstruction Program. Te Citywas able to utilize funding throughall of the Provincial Government

programs and was able to adaptand utilize funding programs that werent specically targeted to Airdries type of situation. In all,almost $8 million in funding was

accessed in addition to Airdriesnormal allotment.

Grant funds were also obtainedand utilized to fund communityprograms such as the Airdrie

Centennial, the 55 Plus Games,and the Olympic festivities.

People and Organizational

Eectiveness Department

Successes:

A complete review of the Safetyprogram has been completed andwork on the safety manual is moving

forward. raining was completedin re extinguishers and in auditortraining, the City welcomed a newsafety coordinator, and all WCBtracking and incident tracking

processes have been updated

Human Resources completed theCitys bi-annual salary survey,

and hired a new HR generalistto continue to move the Citystraining program forward

Payroll moved to a more

sustainable paperless pay statementprocess, conducted a businessprocess overview and a payrollaudit readiness assessment, whilemaintaining stang levels bycreating eciencies, even as the

organization grows

Te Business Analysts roles wereredened, and the group is servingthe organization by developing

business cases for requests,

assisting with process reviews,and serving as project leads oradvisors on a number of corporateimplementations and projects

Te Call Centre has developed acontingency plan in the event of aneed for backup stang, and hasdeveloped a detailed proceduremanual

Te Citys mission statement review

and interim integrated communitysustainability plan are both nearingcompletion


30/78


Economic Development

Department Successes:

Launch of AirdrieNOW Cam-

paign and Website Winner of International Econom-

ic Development Councils 2009Best Website and New MediaAwards

Economic Development Associa-tion of Canada Website, Prole

and New Media Finalists

Launch of AirdrieNOW witterand Blog

Small Business Week Nomineesand Mayors Report to the Com-munity on AirdrieNOW V

Daycare bylaw change to open upnew districts for daycares

First Business Leaders Breakfast

BizPal rst anniversary - rankingthe city in the top dozen for num-

ber of visits in Canada with 1,800BizPal Visitors

Launch of Business Visitation Pro-gram (BVP) in conjunction withthe new Business Retention and

Expansion (BR&E) Strategy. Teprimary goal of the visitation pro-gram is to identify and implementpractices to better serve the Airdriebusiness community

Airdrie op 10 Communities to doBusiness - Airdrie is one of Albertasbest communities for business.

AirdrieLIFE a op en Cover inProvincial magazine Competition

op 5 Reno-Friendly Cities: AirdrieGets Honorable Mention - Airdriereceived an honorable mention in

the February/March 2009 issue ofCanadian Contractor magazine asbeing a renovation friendly city

AirdrieLIFE and Frog Inc. (part-

ners) announced as a nalist for the

Alberta Business Awards of Dis-tinction

Assessment Department Successes:

Airdrie was the successful bidder ona ve-year assessment services con-tract with Cochrane

Collaborative Relationships Public Safety

Airdrie Municipal Enforcement

Successes:

Held another successful bicycle

rodeo in June, with approximately150 youth attending

wo Airdrie ocers received theirinstructor status for self-defense

training

Airdrie, in conjunction with theRCMP, Calgary Police Services,

Calgary Fire, Public Health andsurrounding enforcement agenciesconducted a very successful baby car

seat check in Airdrie in November

Municipal Enforcement, inconjunction with Business Licensingand Economic Development, wasinstrumental in bringing forwarda taxi bylaw which was passed by

Council in December


31/78


nancial discussion and analysis

he Annual Report communicates with Airdrie residents and businesses regardingthe Citys nancial performance in 2009. Information regarding signicant nancial

management policies, economic events and highlights of corporate achievements arepresented. It contains the audited nancial statements consistent with principles andstandards for nancial reporting established by the Public Sector Accounting Board of theCanadian Institute of Chartered Accountants as required by the Municipal Government Actof the Province of Alberta.

For the year ended December 31, 2009

In just 100 years, Airdrie has gone rom a dusty village to oneo Canadas astest growing cities. Airdries next 100 years are

sure to be just as impressive.


32/78


nancial management and controlStrategic Plans, BusinessPlans and Budgets

Te annual Citizen Satisfaction andbi-annual Employee SatisfactionSurveys are conducted in January.Tis information, along with anenvironmental scan held in Marchof each year, provides a strongfoundation for City CouncilsStrategic Planning sessions, which areconducted in April. Participating in

this process are members of Counciland members from a number ofCouncils boards, along with theCitys Corporate Planning eam.

Individual departmental businessplans are then developed with clearly-dened short-term goals identied,ensuring that Councils initiativesare addressed and resourced in thebudget. In conjunction with thebusiness plans, departments are

required to determine their stangfor the next three years by the end ofMay. Te preparation of the capitalbudget commences in June and isnalized in late fall. A corporateStrategic Planning Calendar with keydates and budget deadlines assists theorganization in this process.

Te three-year operating budget isprepared at the departmental levelinitially during September and

October, driven by the business plangoals and departmental initiatives andpresented to the Corporate Planningeam. Te rst draft of the budgetis presented to the Finance AdvisoryCommittee in November, whereit is again reviewed and modiedif necessary. Te Finance Advisory

Committees recommendationthen goes forward to Council, withanticipated approval of the rst yearand subsequent years accepted forinformation in December.

Accounting Process

Te City of Airdrie maintainsan accounting system consistent with accepted standards for localgovernment accounting in Alberta

and Canada, and with CICAguidelines relative to accounting forlocal governments. Te nancial andaccounting services are administeredunder the direction of the Directorof Corporate Services.

Interim FinancialReporting

Te City prepares comprehensivequarterly Business Planning and

Budget updates that are presentedto the Corporate Planning eam,Finance Advisory Committee andCouncil. Tis document reportson progress toward completionof City Councils StrategicPriorities, departmental businessplans and goals, and projects. Aprojected variance for revenue andexpenditures compared to budgetis prepared, indicating whether asurplus or decit is anticipated. If it

appears that a decit is projected, theCity takes the necessary actions toeliminate this possibility.

Financial Statements

Te City of Airdrie is required byprovincial legislation to prepareannual nancial statements by May

1 for the immediate preceding year.Tese statements are in accordance with generally accepted accountingprinciples (GAAP) for municipalgovernments recommended fromtime to time by the Canadian Instituteof Chartered Accountants (CICA),and any modication of the principlesor any supplementary accountingstandards or principles established bythe Minister by regulation.

Audit ProcessAuditors and Audit Report

Pursuant to the MunicipalGovernment Act, City Councilmust appoint one or more auditorsfor the municipality. In June, 2009,PricewaterhouseCoopers LLP wasawarded the contract for auditservices for the scal years ending2009, 2010 and 2011. Te Citysauditors must report to City Councilon the annual nancial statementsand nancial information return ofthe municipality.

Finance AdvisoryCommittee

Te Finance Advisory Committee,comprised of four members ofthe public and three members ofCouncil, sets the nancial directionof the organization by reviewingand recommending to Council theestablishment of short, medium andlong-range plans for maximizing theeciency and utilization of the Citysnancial resources.

Te Committee reviews and makesrecommendations to Council on

Financial Discussion & Analysis


33/78


the annual operating and capitalbudgets and on any policy orprocedure the Committee deemsnecessary; adjustments to the budget

that occur throughout the year andrecommends sources of funding forthose adjustments; the Audit FindingsReport, Annual Financial Reports andFinancial Information Returns. Teyalso review the recommendations of the

Auditors Year End Management Letter.

Te Committee reviews the monthlyInvestment Portfolio and the quarterlyBusiness Planning and Budget updatesand then forwards them to Council forinformation.

Financial Policies

Formal Council-approved policiesinclude: a Debt Management Policy,an Investment Policy, a CorporateReimbursement Policy, PurchasingGuidelines and an UnbudgetedExpenditures Policy, Reserves Policyand angible Capital Asset Guidelines.

Debt Management Policy

Te City of Airdrie has a formalDebt Management Policy. Te policysets forth the parameters for issuingdebt, managing outstanding debtand provides guidance regarding thetiming and purpose for which debtmay be issued, types and amounts ofpermissible debt. Te City will onlyuse debt nancing for capital projectsand will not use it for operationalpurposes, unless approved by Council.

Investment Policy

Te Citys investment policy statesthat its funds will be invested in aprudent manner, provide optimuminvestment returns within theprescribed limits while ensuring thesafety of capital, meet the Citys cashow requirements and conform to all

appropriate City policies, Provincialstatutes and regulations. A primeobjective is to mitigate credit risk andinterest rate risk.

Te policy outlines the objectives ofsafety and structures the portfoliointo operating and non-operatingcomponents. Te policy coversStandards of Care includingprudence, ethics, conict of interestand delegation of authority. It deneseligible investments, asset mix,diversication, competitive bids,payment, safekeeping and reporting.Te investment policy was updatedat the end of 2008.

Unbudgeted Expenditure Policy

Pursuant to the MunicipalGovernment Act, an expendituremay only be made if it is included inthe operating or capital budgets orotherwise authorized by City Council,for an emergency, or legally requiredto be paid. Te City of Airdrierecognizes that circumstances arisethat result in changes to programs

and services planned for in the annualoperating and capital budgets.

Te policy limits a councillorsliability for the City potentiallymaking expenditures that are notauthorized and provides guidelinesand proper authorization forCouncil and Administration toimplement budget changes ina responsible, timely manner.Tis policy covers issues dealing

with: budget administration,compensating expenditures exclusiveof the corporate contingency,compensating expenditures usingthe corporate contingency and non-compensating expenditures.

Corporate Reimbursement Policy

Te City of Airdrie reimburses for

reasonable, legitimate and necessaryexpenditures incurred by individualswhile representing the City, engagingin ocial City business, attending

meetings, conferences, seminars orother training opportunities.

Te policy provides guidelines tosta for consistency, accountabilityand clearly denes authority toattend, funding source, permittedexpenses, payment limits andreporting requirements. It is assumedand expected that expenses will beconsistent with the best interest of theCity and its desire to minimize costs.

Tis policy addresses administration,claims from petty cash fund;issuance and use of corporatecredit cards; issuance of funds inadvance of expenditures; qualiedreimbursable expenses; travellingexpenses and limits; reimbursementfor training and education purposes;and professional and individualmemberships.

Purchasing Guidelines

Te purchasing guidelines ensurethat the expenditure of public fundsis managed in a manner whichmaximizes the benets to the City,and therefore to the public. Allpurchases are to satisfy the criteriaof economy, eciency, equity,environment and ethics.

Te scope of the policy covers roles andresponsibilities of purchasing servicesand other departments, delegation of

purchasing authority, condentialityof information, acquisition fromstores, acquisition of goods/servicesvia purchase order, completion ofpurchasing documents, routing ofdocuments, tendering proceduresand signing authority for leases,contracts and agreements.



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Reserves Policy

Te Reserves Policy denes capital,operating and developer/ositelevy reserves. Te policy establishes

reserve limits, includes a scheduleof all reserves which identies theirpurpose, sources of funding, ceilings,application of funds, duration, whether it is interest bearing and whether separate bank accounts arerequired.

Te guidelines identify how reservetransactions, redesignations, revisionsand new reserve requests are approvedand funded. All expenditures from

reserves, redesignation of reservefunds or approval to inter-reservefunds must be obtained prior to thetransaction occurring.

Tangible Capital Asset Guidelines

Council approved the angibleCapital Asset Guidelines inpreparation for depreciation of the

citys capital assets commencing in2009.

Te objective of this policy is toprescribe the accounting treatmentfor tangible capital assets so thatusers of the nancial statementscan discern information about theinvestment in property, plant andequipment and the changes in suchinvestments. Te principal issuesin accounting for tangible capital

assets are the recognition of assets,the determination of their carryingamounts and amortization changes,and the recognition of any relatedimpairment losses.

Te policy provides accountabilityover tangible capital assets gatheringand maintaining information needsto prepare the nancial statements.

Te policy outlines the denitions oftangible capital assets, betterments,expected useful life, fair value, capitalleases and the asset register.

Policy statements include thecapitalization thresholds, categories ofassets, valuation methods, ownershipfor tracking and maintaining assets,requirement for annual review,componentization, amortization,disposal, what is to be maintained

in the asset register and reporting. Aschedule of recommended maximumuseful life is included in the policy.


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nancial highlights

Recent Accounting Pronouncements

Te nancial statements are prepared in accordance with Canadian generally accepted accountingprincipals for governments established by the Public Sector Accounting Board (PSAB). 2009 was therst year municipalities were required to adopt new nancial reporting standards and tangible captialasset reporting under PSAB. Some of the major changes in reporting include the valuation of tangible

capital assets and the recording of amortization, revenue recognition associated with contributed assetsas well as the elimination of reporting on funds.


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Excess of revenue over expenses for the scal year endedDecember 31, 2009 is $49,708,030. Tis represents a42.6% decrease from December 31, 2008 or $36,784,944.Tis consolidated statement of operations includesthe Citys operating capital activity as well as nancial

operations related to Airdrie Mainstreet Square.

Revenue

otal revenue for 2009 totalled $114,329,020, a decreaseof $26,835,409 (19%) from 2008. Actual revenue was$16.8 million less than budget expectations or 12.8%lower.

Te major categories of revenue are:Municipal taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21%User fees and sale of goods . . . . . . . . . . . . . . . . . . . . 19%Contributed assets . . . . . . . . . . . . . . . . . . . . . . . . . . 19%Government transfers . . . . . . . . . . . . . . . . . . . . . . . . 18%Development levies . . . . . . . . . . . . . . . . . . . . . . . . . 10%Licences, permits, nes and rental revenues . . . . . . . 4%Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . 4%Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3%Franchise fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1%Penalties and sales to other governments. . . . . . . . . 1%

100%

Te consolidated statement of operations on a PSABbasis recognizes contributed assets as revenue. Te valueassociated with contributed assets is $22.2 million in 2009as compared with $53.9 million in 2008. Contributedassets are recognized as revenue in the year in whichnal acceptance certicates are issued to developers andsubdivisions become the responsibility of the City.

Te consolidated statement of operations also includesrevenues which are associated with the funding of capital

assets, specically a signicant portion of grant transfers($13,300,488). A large portion of reserves are held forcapital projects and a portion of interest revenue is alsoassociated with the funding of assets purchased ($321,445).Grant transfers remained fairly stable year over year with$20.2 million recognized in 2009 as compared to $18.1million in 2008.

Revenue from development levies is collected assubdivisions are approved pursuant to the subdivision

Contributedassets19%

Investmentincome

4%

Franchise &concession contracts

1.0%

User fees &sales of goods

19%

2009 Revenue

Licences, permits,fines, & rental income

4%

Net municipalproperty taxes

21%

Penalties & sales toother governments

1%

Government

transfers18%

Developmentlevies 10%

Other3%

servicing agreement. Te funds are used to help buildreserves for future funding of capital. otal revenue fromdevelopment levies was $11.2 million in 2009 as comparedto $15.6 million in 2008.

Revenue was very close to budget in most areas with the

exception of penalties on unpaid taxes which were 60%higher than budget or $187,704; investment income which was 65.5% higher or $1,603,565, rental income which was $217,660 higher than budget or 20% andother revenues which were 22% lower than budget or$805,450. Actual government grants are signicantly lowerthan budget and are in direct relationship with capitalexpenditures being much less than expected. Governmenttransfers tied to capital are recorded when the capitalpurchase is made. Development levies are less than budgetby approximately $5 million. Estimates were based on 180acres of development. Actual development was only 118acres which impacts the amount of levies to be collected.

User fees are derived from almost all areas of the citysoperations and include revenue from the utility operations(water, sewer and waste management fees), re andparamedic responses fees.

Other revenue includes the sale of recycled material,certain rebates, developer paid capital improvements andother miscellaneous revenues.

consolidated statement of operations


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Expenses

he City spent $64,620,990 to operate municipalservices, an increase of $9,949,535 (18.2%) over2008. Actual expenditures were less than budget by

$3,838,766 or 5.6%. Savings occurred across manydepartments.

Te expenditures by department are:Protective Services . . . . . . . . . . . . . . . . . . . . . . . .21%Environmental . . . . . . . . . . . . . . . . . . . . . . . . . . .16%

Recreation & Culture . . . . . . . . . . . . . . . . . . . . . .15%G en e r a l G o ve rn men t . . . . . . . . . . . . . . . . . . . . . . 1 4 %Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .14%ransportation . . . . . . . . . . . . . . . . . . . . . . . . . . .10%Planning & Development . . . . . . . . . . . . . . . . . . 9%

Public Health & Welfare . . . . . . . . . . . . . . . . . . 1%100%

Te same total expenditures by category are:Salaries, wages and benets . . . . . . . . . . . . . . . . . .40%

Contracted services . . . . . . . . . . . . . . . . . . . . . . . .14%Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .14%Purchases from otherGovernments . . . . . . . . . . . . . . . . . . . . . . . . . . . .13%Materials/supplies . . . . . . . . . . . . . . . . . . . . . . . . . 8%

Grants to groups. . . . . . . . . . . . . . . . . . . . . . . . . . 8%

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . 2%Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . 1%100%

Planning &Development

9%

Public health& welfare

1% Environmental16%

Generalgovernment

14%ProtectiveServices

21%

Transportation10%

2009 Expenses

Recreation &Culture15%

Amortization14%

Sales, wages& benefits

40%

Purchasesfrom othergovernments

13%

Grants togroups & otherorganizations

8%

Materials, goods,supplies & utilities

8%

Interest onlong-term debt

2%

Other1%

Contracted& generalservices

14%

2009 Expenses by Object

Amortization14%

Salary and benet cost increases accounted for $2.88million of the total expenditure increases year over yearand were within 2% of budget or $618,300

Contracted services increased by $1.1 million from the

previous year. Tese costs were, however; well under budget

by $1.9 million. Te following is a list of some of the major

cost reductions/savings that occurred during the year :- Savings in training and travel across the organization

amounted to $360,000 - Water and Sewer: $251,000 savings to underground

infrastructure as there were fewer repairs than

anticipated and lower costs for the repairs that weremade

- I: $112,000 savings due to contract dollars for assetmanagement, document management, and DRPguides carried forward into 2010 in addition to overallsavings in technology costs totalling $68,000

- Building Operations: $42,000 increase in the cost of

waste collection as well as savings in repair costs due to

more repairs being completed in-house- Roads: $98,000 under budget due to reduction in

spring road failures


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- Legislative Services: $47,000 savings in cost of

insurance and budgeted deductible costs as well as$25,000 savings in budgeted legal proceedings cost

- Parks: $90,000 in uncompleted pathways

- Emergency Services: $125,000 savings in the cost oflaundry, dispatch and medical direction due to costbeing absorbed by Alberta Health

- Engineering: $100,000 under budget as various studieswere carried forward to 2010

- Planning: $40,000 carried forward to 2010 forAirdrieONE contract

- ransit: $223,000 in savings as the commuter service

was delayed to 2010- Business Strategy: $80,000 savings due to changes

made to sustainability plan

Purchases from other governments, which includespurchases of water and sewer from the City of Calgaryand policing services from the RCMP increased by$0.95 million year-over-year. Te increase is due to theincreased population and resulting consumption and rateincreases for water and sewer. RCMP cost increases were

due to new members added to the Airdrie detachment.Actual costs for the year were $523,900 under budget aspurchases from the City of Calgary for water and sewerwere $615,500 below budget and RCMP contract costs

closed the year $44,000 over budget. Materials, goods, supplies and utilities increased by

$0.9 million year-over-year and are largely driven byadditional consumption related to populat

2009 Annual Financial Report

Documents

Transcript of 2009 Annual Financial Report