regina proposing a 3.9 per cent tax hike for 2016 budget
DESCRIPTION
The city of Regina is asking for a 3.9 percent property tax increase and a 6 percent utility bill increase in the 2016 proposed budget.TRANSCRIPT
1
2016 Administration Budget Recommendations
November 13, 2015
2
Agenda
Strategic Context for Budget
Economic & Financial Conditions
Civic & Utility Operating Budget
Capital Budget
3
Disclaimer
This presentation has been prepared by City of Regina staff. It has not been adopted, approved, disapproved, or otherwise acted upon by City Council.
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Strategic ContextOur budget recommendations are guided by:
• Official Community Plan – Design Regina
• Corporate Strategic Plan (2014-17)
• Service level standards, including those that are regulated
They are affected by:• The need to continue to grow our infrastructure
funding
• Limited revenue tools at our disposal
• Increasing service demands
• The need to remain affordable for residents
5
Regina’s Planning Framework
7
Budget Challenges
• Lack of diversity in revenues means the City relies on property taxes and grants
• Aging infrastructure requires increased funding
• Community growth creates future infrastructureliabilities
• Rising costs put pressure on current services
• Ability to meet resident expectations with available funding
8
Infrastructure Challenges
• Infrastructure renewal is required to support• Residential streets
• Water and wastewater pipes
• Recreational facilities
• Other buildings
• Need to meet regulatory requirements
9
Budget 2016 Theme
Managing Progress: Doing What Matters Most
• Preserving resources for asset management including for residential roads
• Supporting a safe community
• Delivering on key community investments
• Maintaining existing services and service levels
• Maintaining affordability
10
City of Regina Our Environment
12
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
F
2016
F
2017
F
2018
F
2019
F
Perc
enta
ge G
row
thRegina Key Economic Indicators (2006 - 2019)
Regina GDP Growth Regina Unemployment Rate
13
Building Permits
14
Regina’s Competitive Tax Increases
15
**Winnipeg and Vancouver had no data provided for Two-Storey Houses
16
Expenditures Per Household
18
Provincial Revenue Sharing
19
Operating Revenues
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
% of total re
venu
es
Revenue Sources 2007 ‐ 2016 Other Revenues
Transfers fromReserves
Gas and ElectricalRevenues
Licenses, Levies andFines
Fees and Charges
Government Grantsand Transfers
Taxation
$216.2 $230.9 $250.3 $262.2 $280.4 $305.2 $333.1 $362.9 $388.6 $409.6
Total Revenue($M)
20Capital Funding Sources 2011-2015
Total Capital Plan $662 million
CurrentContributionsReserves
Debentures
DevelopmentChargesFederal Grant
Provincial Grant
Other
External GovernmentSources
23%City Own-Source
Funding77%
21
Capital Funding Sources 2016 - 2020
Total Capital Plan $540 million
CurrentContributionsReserves
Debentures
DevelopmentChargesFederal Grant
Other
Non-CitySources
13%City Sources
87%
22
Projected Reserve Balances
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Reserve Balances 2010-2020
Res
erve
Bal
ance
(000
's $
)
23
Projected Utility Reserve Balances
-
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
60,000.0
70,000.0
80,000.0
90,000.0
2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F
Utility Fund Reserve Balances 2010-2020
Res
erve
Bal
ance
(000
's $
)
24
Debt Projections
25Municipal Debt Levels
$‐
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Regina Saskatoon Calgary Edmonton Winnipeg
Deb
t per Hou
seho
ld
2011 2012 2013 2014 2015
26
Financial Condition - Sustainability Indicator
Sustainability Indicators 2010 2011 2012 2013 20142015 Forecast
2016 Budget
Ratio of Financial Assets to Liabilities 1.11 1.25 1.31 1.44 1.10 n/a n/aRatio of Net Debt to Total Revenue 0.21 0.18 0.15 0.13 0.34 0.35 0.34Total Debt Per Household $1,314 $1,081 $980 $928 $2,742 $2,737 $2,667
27
Financial Condition – Flexibility Indicators
Flexibility Indicators 2010 2011 2012 2013 20142015 Forecast
2016 Budget
Ratio of Debt Charges to Total Revenue 0.01 0.01 0.01 0.01 0.01 0.01 0.01Municipal Taxes as % of Household Income 2.15% 2.19% 2.24% 2.36% 2.66% 2.38% 2.45%Ratio of Total Municipal Revenue to Taxable Assessment 0.02 0.03 0.03 0.01 0.03 0.03 0.03
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Financial Condition – Vulnerability Indicator
Vulnerability Indicator 2010 2011 2012 2013 20142015 Forecast
2016 Budget
Ratio of Government Transfers to Total Revenue 0.20 0.14 0.14 0.13 0.13 0.13 0.13
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Summary• Regina’s current financial condition is relatively stable
• Heading in the right direction, BUT…• …we are not fully funding our long-term service costs
• Administration’s approach to budget development considers:
• Importance of maintaining affordable services• Expectation that we will strengthen the City’s financial condition• Maintain service levels
• Unknowns that could affect our ability to sustain current service levels:
• Asset condition• Succession planning
30
Budget ProcessCall for budget estimates – May 2015
Cross divisional team review • Recommendation to Executive Leadership Team
(ELT)
Citizen Budget Tool
ELT recommended 2016 Budget to Council
Public debate December 7, 2015
Council final approval
31
Citizen Budget Tool
• Open from October 13 to November 3
• 1,692 visitors and 200 responses (203% increase)
• Increase investment:
• Roadways & Transportation
• Infrastructure and Parks & Open Space
• Maintain investment:
• Community Investment
• Slight reduction in all other areas
• Average mill rate increase of 3.45%
32
Budget Book Updates
• Expanded information to reflect best practice and increased transparency
• General Fund
• Utility Fund
• Costing Fund
• Information on all costs and FTEs allocated to each fund
33
Performance Reporting
• Operational performance now being reported in budget
• Comparisons to Ontario Municipal Benchmarking Initiatives (OMBI) data in select areas
• This will continue to grow as we launch our participation in OMBI
34
2016 General Operating BudgetRecommendations
35
2016 Budget at a Glance
• Maintains service levels and minimize risks
• 2.9% tax increase plus 1% dedicated to residential road renewal
• 1% ($1.8M) approved by Council per year for 5 years (2015-2019)
• Tax supported permanent FTE growth 17.15
36
2016 Budget at a Glance
• Key investments:
• Strengthening front line police services
• Record funding levels for snow clearing and road infrastructure
• 5-year capital plan is the largest ever -- $1.08 billion
• Landfill Gas to Energy Project to become operational in 2016
• Drainage system upgrades to reduce flooding
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Taxation$205,068
49%
Licences, Levies and Fines
$14,282 4%
Government Grants and Transfers
$43,935 11%
Fees and Charges$64,083 15%
Gas and Electrical Revenues$43,010 10%
Other Revenues$39,270
9%
Regina Police Service$9,156 2%
Revenue Sources ($000’s)
Total Revenue$419 Million
392016 General Operating Expenses2016 Budget
($000's)
Salaries & Benefits 158,615.0
Office & Administrative Expenses 7,509.4
Professional & External Services 29,423.6
Materials, Goods & Supplies 7,530.5
Utilities and Other Costs 16,440.6
Intra-Municipal Services 40,036.4
Civic Operating Costs 259,555.5 Community Investment 11,189.6
Allocation to Capital 51,209.3
Transfers to Reserves 16,010.7
Civic Other Expenditures 78,409.6 Total Civic Expenditures 337,965.1
Regina Police Service 80,837.8
Total General Operating Expenditures $ 418,802.9
40
FTE Additions for 2016
Tax Supported FTE’s 26.15
Permanent 17.15
Temporary 9.0
Fee Supported FTE’s 17.3
Permanent 17.3
Total Civic FTE 43.45Police FTE increase 11.0Total = 54.45
41
2016 Utility Operating BudgetRecommendations
42
Utility Budget Highlights
• Investments in both Capital and Operating focused on meeting service levels
• Continuing to focus on system-wide improvements
• Wastewater Treatment Plant
• Long-term sewer trunk relief strategy
• Continuing to address key drainage issues
• 6% Utility rate increase (2016 and 2017)
• Average customer increase of just over $8.25/month
43
Utility Cost Comparisons for Average Household (2015)
Regina Calgary Edmonton Saskatoon Winnipeg
Total Annual Water 882.00 829.43 750.79 389.81 522.00
Total Annual Wastewater 659.01 646.63 734.32 240.62 820.80
Annual Drainage Infrastructure Levy 175.20 133.35 423.29 243.61
1-
Total Annual Utility Charges $1,716.21 $1,609.41 $1,908.40 $ 874.04 $1,342.80
Note1: Saskatoon’s infrastructure levy is not specific to the drainage infrastructure.
44
2016 Utility Operating Revenue
Water Revenue$61,633 49%
Wastewater Revenue
$47,105 37%
Drainage Infrastructure Levy $15,488 12%
Other Revenues$1,650 1%
Total Revenue $126 Million
45
2016 Utility Operating Expenses2016 Budget
($000's)
Expenditures
Salaries & Benefits 16,556.0
Office & Administrative Expenses 1,058.2
Professional & External Services 8,883.7
Materials, Goods & Supplies 3,080.9
Utilities and Other Costs 12,933.7
Intra-Municipal Services 24,949.9
Utility Operating Costs 67,462.4
Debt Servicing 1,402.3
Total Utility Operating Expenditures $ 68,864.7
46
2016 Capital BudgetRecommendations
47
• Non-tax revenue sources – like Service Agreement Fees – provide needed capital funds and have a positive effect on taxation levels
• Large, multi-year capital projects in this budget that anticipate funding commitments in 2016 and future periods
Highlights
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Proposed Five Year Capital PlanSummary of Five Year Capital Plan ($000's)
2016 2017 2018 2019 2020 Five Year Total
General Capital 132,727.5 119,361.2 135,482.6 78,945.3 73,516.9 540,033.5
Police Capital 2,747.0 3,036.9 3,057.9 3,223.3 3,261.0 15,326.1
Utility Capital 127,775.0 92,466.3 100,635.9 103,356.4 101,076.4 525,309.9
Total Expenditures 263,249.5 214,864.3 239,176.4 185,525.0 177,854.3 1,080,669.5
Funding Sources:
Current Contributions (General) 37,067.2 38,179.3 39,324.6 40,504.4 41,719.5 196,795.0
Current Contributions (Police) 2,747.0 3,036.9 3,057.9 3,223.3 3,261.0 15,326.1
Current Contributions (Utility) - 50.0 50.0 - - 100.0
Debt 12,859.0 2,500.0 2,500.0 2,500.0 2,500.0 22,859.0
Reserves 104,834.9 102,998.9 102,891.0 85,404.5 79,008.0 475,137.3
Government Grants * 63,248.8 16,233.8 15,833.1 14,563.1 11,088.0 120,966.7
Development Charges ** 16,850.5 36,147.3 39,968.0 38,413.8 36,831.8 168,211.3
Third Party Funding *** 25,642.1 15,718.3 35,551.8 916.0 3,446.0 81,274.1
Total Funding 263,249.5 214,864.3 239,176.4 185,525.0 177,854.3 1,080,669.5
* Government Grants includes Gas Tax, Building Canada Plan and P3 Federal Funding
** Development Charges Includes Servicing Agreement fees for Parks, Roadways and Utilities
*** Third Party Funding Includes funding from Private Sports Groups, Special Project Funding and Moose Jaw
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SummaryThe recommended 2016 budget maintains Regina’s property taxes as one of the lowest in Canada
The recommended 2016 budget maintains existing services and service levels, with enhancements that reflect priority areas identified by Council
2016 Budget supports:• Maintaining programs and services at 2015 levels
• Progress on the City’s largest ever five-year capital plan
• Fixing more residential streets via a dedicated tax levy
• Supporting a safe community with the addition of 8 new officers at the Regina Police Service
50
Summary
2016 Budget supports:• Improving transit service
• Partnering with the University of Regina on the Upassprogram - increase transit frequency and capacity on key transit routes
• Record level investment for snow clearing ($9.1 million )
• Continuing to focus on improving sewer and drainage service
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Interested members of the public are encouraged to get involved:
- Provide feedback to their Councillor
- Appear before Council as a special delegation on December 7, 2015
- Note that the Citizen Budget Tool will remain live indefinitely for educational purposes with results reviewed regularly.
Visit: Regina.ca
Public Input & Information
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Thank you