Context Report and Long Range Financial Plan Presentation to City Council May 11, 2004 E D M O N T O...

Context Report and

Long Range Financial Plan

Presentation to City CouncilMay 11, 2004

E D M O N T O N

Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N

Index

Report summary 32005 Business plan and budget process4Plan Edmonton 5Planning environment 6Well managed, competitive city 7Progress with other orders of government13Edmonton’s Growth 14Long Range Financial Plan 15Opportunities and choices 25Priority areas for service issues 26

Next steps 27


E D M O N T O N

Report summary

•Information report: no decisions today

•Review by Council committees: May, June

•Committees to recommend guidelines to Council

•Recommended guidelines to Council June 15

•Council decisions June 24


E D M O N T O N

2005 business plan and budget process

Four Pillars (Mar 22, Apr 15, May 10,

May 20/21)

Four Pillars (Mar 22, Apr 15, May 10,

May 20/21)

Administration

ReceiveCommittee

RecommendedGuidelines

(Jun 15)

ReceiveCommittee

RecommendedGuidelines

(Jun 15)

Receive Proposed

Business Plans and Budget

(Nov 4)

Receive Proposed

Business Plans and Budget

(Nov 4)

Approve2005 Budgetand 3 Year

Business Plans(by Dec 15)

Approve2005 Budgetand 3 Year

Business Plans(by Dec 15)

Develop 2005 Budget

and 3 YearBusiness Plans

Council and

Committees

Public Forum(Nov 22/23)

Mall/LibrarySessions

(mid-late Nov)

Citizens and Stakeholders

(Communication and Input)

ApproveBudget and

Service DeliveryGuidelines

(Jun 24)

ApproveBudget and

Service DeliveryGuidelines

(Jun 24)

News Releases, Web-site, Citizen Action Centre, Advertising, Edmonton This Quarter

Update ContextReport

Wrap Up (Jun 17)Wrap Up

(Jun 17)

Review Budget and Service Delivery

Guidelines atCommittees

(May 14, 17, 19June 2, 3, 4)

Review Budget and Service Delivery

Guidelines atCommittees

(May 14, 17, 19June 2, 3, 4)

Savings Strategies (interface with Council as results available)

Results of ‘03Community

Dialogue Sessionand CitizenSatisfaction

Survey

Citizen andStakeholder

WrittenSubmissions

Web-SurveyResults

ReceiveUpdatedContextReport

(May 11)

ReceiveUpdatedContextReport

(May 11)

Review of budget-related policy issues through Committees (by Jun 24)

1

2

3 4 5

6

7

8

9

5

TODAY


E D M O N T O N

Infrastructure Development and Maintenance

Leadership and Regional Development

Services to People Planned Growth

Economic Development

Organizational Excellence

Quality of Life for

Residents

Quality of Life for

Residents

Plan Edmonton: the source of direction


E D M O N T O N

Planning environment

• Well managed, competitive city

• Progress with other orders of government

• Operating and capital gaps persist

• Opportunities and choices


E D M O N T O N

Well managed, competitive city

0

200

400

600

800

1000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

($m

illi

on

s)

Actual Adjusted for Population Adjusted for Population and Inflation

Budget

39.5%

23.7%

-5.4%

City spending


E D M O N T O N

0

2000

4000

6000

8000

10000

12000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Fu

ll-t

ime

Eq

uiv

alen

ts

12.5

13

13.5

14

14.5

15

15.5

16

FT

E/1

000

Po

pu

lati

on

Staff per capita

Total FTEs FTEs per capita


11.5% decline in FTEs per capita


E D M O N T O N

Property tax and utility rates


26832803

3041 3074 3132 3143 3192 3247 3287 3322 33373453 3506 3514

3619 36373760 3810 3861

3931 3974 4037 40614216

4303

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Do

lla

rs


E D M O N T O N

Total tax revenue growth, 1990-2002

Source: Canada West Foundation, presentation, March 22, 2004

Adjusted for population, inflation

9.7

16.1

2.6

-2.7-5

0

5

10

15

20Fe

dera

l

Edm

onto

n

Cal

gary

Prov

inci

al


E D M O N T O N

Other17%

Federal Income Tax

15%

Provincial Income Tax

6%

Shelter16%

Insurance & Pension Contribution

5%

Clothing4%

Recreation7%

Food10%

Transportation15%

CityProperty

Tax1%Household Operation

4%

Edmonton household spending


3.0

4.0

5.0

2.0 3.0 4.0 5.0

Satisfaction Rating

Imp

ort

an

ce

Ra

tin

g

Primary areas for improvement

1

6

8

74

3

5

2

20

910

19

1817

16

15

12

14

11

13

21

22

1. Police Services2. Fire Rescue3. Emergency Medical

Services4. Public Library5. Public Transit6. Garbage & Recycling

Collection7. Parks & Green Spaces8. Recreational Facilities9. Recreational Programs10. Sewer Services11. Winter Road

Maintenance12. Summer Road

Maintenance13. Rush Hour Traffic Flow14. Economic Development15. Assessment & Taxation16. Subsidized Social

Housing17. Social Programs &

Services18. Community

Development19. Permit & Inspection

Services20. Attractions21. Land Use Planning22. Bylaw Enforcement

Note: Quadrant axes set at 3.7 mean satisfaction rating, 4.1 mean importance rating

2003 Citizen Satisfaction Survey

Well managed, competitive city Well managed, competitive city


E D M O N T O N

Recent good news about new fiscal deal:•GST rebate

•Police funding

•Ambulance

Work continues:•Minister’s Council

•Prime Minister’s External Advisory Committee on Cities and Communities

Progress with other orders of government


E D M O N T O N

Growth creates service demands

•Economic growth average 3.5 per cent/year to 2009

•Population growth about 9,000 new people/year

•Population mix 75 years-plus, “at risk” sectors growing

•Service demands Basic services, income gap, affordable housing,

homelessness

Edmonton’s Growth


E D M O N T O N

Operating and capital gaps continue to grow

$0

$100

$200

$300

$400

$500

$600

(millions)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Long Range Financial Plan

Operating

Capital

$38

$295

$442

$157


E D M O N T O N

Operating projections

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(Mill

ions

)

2004 Recosted Expenditures

Revenue

$157M

Gap $38

Service Issues


E D M O N T O N

Increasing reliance on property tax

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other Revenue (share drops 3%)

Tax Revenues (share increases 7%)

24%

51%

20%

58%

User Fees, Fines, Permits (share drops 4%)

25% 22%


E D M O N T O N

Realty assessment growth

0.000

0.500

1.000

1.500

2.000

2.500

2001 2002 2003 2004 2005

Ass

ess

me

nt (

$B

)

Projected

Actual

3 Year Average Value of Real Growth $1.5 B

+4.7% ($16 M)

+3.6% ($14 M)


E D M O N T O N

Other revenue sources

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EdTel (no change)

Other (share drops 5%)

43%

23%

45%

25%

Epcor Dividends (share increases 2%)

10% 10%

Proportions relatively flat over time

Investments (share increases 1%)

Franchise Fees (share increases 2%)

17% 12%

7% 8%


E D M O N T O N

$0

$50

$100

$150

$200

$250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(mill

ions

-tax

levy

)

$256

Service issues

Other & support to external agenciesNew service

Infrastructure maintenanceGrowth

$44


E D M O N T O N

0

100

200

300

400

500

600

700

800

900

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

($ m

illio

ns)

Funded Capital Plan $3.0 billion

Infrastructure Gap $4.1 billion

2004-13 LRFP

10-year capital plan


E D M O N T O N

Planned Growth

30%

Other11%

Infrastructure & Physical

Environment59%

2005-2014 funded investment ($3.0B)


E D M O N T O N

2005-2014 unfunded investment ($4.1B)


E D M O N T O N

General Financing

Reserves Retained Earnings

Debentures

Local Impr./OtherGrants

Fuel Tax Rebate

Federal Infrastructure

ProgramDeveloper

(Partnership)

0

50

100

150

200

250

300

350

400

($ m

illio

ns)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Tax Supported Debt

Capital financing (funded)

ExternalFunding(37%)

InternalFunding(63%)


E D M O N T O N

Opportunities and choicesOperating• Property and business tax increase at MPI• Tax base: real growth 3.6 per cent realty,

0.5% business• EMS tax levy reallocation to high priority

service issues• Confirming police priorities• $3.5 million savings

Capital• One per cent for tax-supported borrowing • GST to capital projects• General financing pool increase @

Construction Price Index**Non-residential


E D M O N T O N

Priority areas for service issues

Major priorities for civic programs include:

• growth demands

• environmental concerns

• service sustainability

• corporate events commitments


E D M O N T O N

• Special Community Services Committee meetings: May 14 and June 2

• Special Transportation and Public Works Committee meetings: May 17 and June 3

• Special Executive Committee meetings: May 19 and June 4

• Council meetings: June 15 and June 24

Next steps

Context Report and Long Range Financial Plan Presentation to City Council May 11, 2004 E D M O N T O...

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