2022 Budget Presentation - presented April 4

Department Area Community Services Report to Council Date

1

2022 Operating Budget Revenues General Operating

$22,193,619

Utilities Operations

$9,046,037

Total Revenues

$31,239,656

Expenses General Operating

$22,644,110

Utilities Operations

$9,046,037

Total Expenses Total Funding Gap

$31,690,147 $450,491

2

2022 PRESSURES Salaries/Wages – 2.33% COLA, return to steps, market Training/Conferences back to ‘pre-covid’ IT Increases – monthly licenses/software costs Organizational Review HR Market Survey Annexation order in court approved RCMP Pay Increase RCMP Retro Pay – This will come from reserves Addition of second deputy fire chief (budget ½ year, July 1 start) CP rail cantilever repairs (100K) Economic Development strategy/investment & attraction tools Canada Day/Community Events back to pre-covid PortaPottie maintenance back to pre-covid 3

RELIEFS Increased assessment Increased Revenue Fortis Franchise Fee Increased Revenue ATCO Franchise Fee Back to pre-covid revenues at Rec Facilities Planning and development (permits) back to pre-covid Economic Development grant opportunities

4

Business Case #1

Organizational Review Independent review of the organization • Identify any areas that may hinder service delivery • Identify any gaps that need to be filled • Identify better alignment of our organization • Overlaps of service delivery • Red tape reduction • Recommend structural change to the organization

Budget Impact – $60,000

5

Business Case #2

Economic Development Direct economic development in a strategic direction and create a new approach to economic planning and action in the Town Three critical areas • Business Retention and Expansion • Development and execution of an economic strategy • Extensive industry and community stakeholder engagements • Marketing and communications plan • Investment Attraction • Investment attraction strategy • Investment readiness system • Streamlining regulatory processes • Removing barriers to investment • Marketing and communications plan • Business Creation • Development and execution of a business stimulation strategy • Marketing and communications plan

Budget Impact – Olds destination Collective Fund – revision to policy 6

General Government General Government sees an increase of 1.6% or $180K over last year. This is an increase in the total amount of revenue available to support the requirements of the other town operations

Highlights Include: •

Increased Assessment –

2.5% Residential

–

0.6% Non-Residential

•

Increased revenue from Fortis Franchise Fee (increase in usage, no change to fee)

•

Increased revenue from ATCO Franchise Fee (increase in usage, no change to fee)

7

Council Council sees an increase of 1.5% or $7K over last year

Highlights Include: • •

Increases to Fees, Travel and Conferences (post-covid return) Laptop allowance – $1,500/elected official per 4 year term. This is in place of paper copies – corresponding decrease in printing – 3 year payback

8

Financial Services Financial Services sees an increase of 3.4% or $36K over last year

Highlights Include: • • • • • •

Increase to Conferences, Travel and Training (post-covid return) Increases to monthly licensing (Microsoft, security) Begin transition to sharepoint (records management, file sharing) Institute a password management software across the organization Increase computer replacement program budget Increased banking and visa/mastercard fees 9

Office of the CAO Office of the CAO sees an increase of 9.7% or $90K over last year

Highlights Include: • • • •

Increase to Conferences, Travel and Training (post-covid return) Organizational Review Compensation review (this is normally done every 2nd year – last one was done in 2019) Strategic Planning Sessions (offsite)

10

RCMP RCMP sees an increase of 13.5% or $182K over last year

Highlights Include: • • • •

Increase to RCMP contract (does not include retro pay) Building repairs/maintenance (flooring, paint, office reconfiguration) Decreased provincial fines revenue 2021 there was a transfer to reserves for the retro pay – nothing budgeted in 2022 for this.

11

Fire Fire Services sees an increase of 6.0% or $49K over last year

Highlights Include: • • • • •

Addition of second Deputy Fire Chief (July 1 start date, allocated 50% fire and 50% emergency management) Increase to Conferences, Travel and Training (post-covid return) Increase to honorariums to align with increased members and 2021 actual Increase to repairs and maintenance building – industrial washing machine needs repairs Increase to uniforms/turnout gear – membership up to 48 from 43 12

Emergency Management Emergency Management sees a decrease of 15.2% or $16.5K over last year

Highlights Include: • • •

Addition of second Deputy Fire Chief (July 1 start date, allocated 50% fire and 50% emergency management) Decrease is due to staffing allocation changes from 2021 to 2022 COVID expenses were not budgeted – this accounts for variation in budget vs. actuals 2020 and 2021

13

Municipal Enforcement Municipal Enforcement sees a decrease of 0.5% or $2K over last year

Highlights Include: • •

Increase to Conferences, Travel and Training (post-covid return) Implementation of new RMS/E-ticketing software – decrease in annual costs

14

Common Services Common Services sees an increase of 0.6% or $2.5K over last year

Highlights Include: • •

Maintaining two locations Still trying to figure out what normal costs for the new operations centre will look like

15

Roads Roads see an increase of 4.4% or $77K over last year

Highlights Include: • •

CP Rail repairs to cantilever at 50th street. 50/50 costs share with CP Decreases to R&M Vehicles and Contracted Services to align with actuals

16

FCSS FCSS remains at/near $58K tax requirement

Highlights Include: • •

Provincial grant requires 20% contribution from Municipality ($58K) In addition to funding to community groups FCSS also supports: – – – –

Welcoming and inclusive communities Great neighbours program FCSS Counselling Volunteer Appreciation

17

NU2U NU2U operates on a full cost recovery model providing any surpluses in the form of grants to the community

18

Cemetery Cemetery sees an increase of 11.5% or $12K over last year

Highlights Include: •

Reduction in revenues to align with actuals

19

Planning and Development Planning and Development sees a decrease of 14.8% or $78K over last year

Highlights Include: • • •

Building inspector moved to contract vs. employee Increase in building permit revenue (post-covid) GIS expenses reduced – one time increase in 2021 for ortho photos

20

Economic Development Economic Development sees a decrease of 11.5% or $19K over last year

Highlights Include: • • • • • •

Development of an economic strategy Development of an “Invest Olds” website Commissioning of digital marketing services Development of investment and tourism attraction tools (print/digital publications, videos) Funding opportunities for grants Shift in how the Destination Olds Collective Fund is allocated 21

Sunshine Bus Sunshine Bus sees an increase of 45.7% or $15.5K over last year

Highlights Include: • •

Change in staffing allocations Reduction of revenues to reflect actuals

22

Recreation Administration Recreation Administration sees a decrease of 5.8% or $41.5K over last year

Highlights Include: • • •

Change in salary allocations (reduction in this area) Increase to Conferences, Travel and Training (post-covid return) Decrease to software used within community services

23

Aquatic Centre Aquatic Centre sees an increase of 19.9% or $103K over last year

Highlights Include: •

Return to pre-covid – –

•

Repairs and maintenance building – –

• •

Increased revenues Increased part-time/casual (lifeguards) staffing costs Replace sinks Front Counter Renewal

Increase to Conferences, Travel and Training (post-covid return) Purchase CPR Manequins and AED trainers 24

Sportsplex Sportsplex sees an increase of 8.8% or $43.5K over last year

Highlights Include: • • •

Change in salary allocations (reduction in this area) Increase to Conferences, Travel and Training (post-covid return) Increase to pre-covid revenues

25

Parks Parks sees an increase of 12.6% or $112.5K over last year

Highlights Include: • •

Summer staff return to pre-covid and allocations change Increases to R&M equipment, goods and supplies, signage/lighting, and skatepark

26

Special Events The special events in the Town of Olds includes events such as Canada Day and Olds Fashioned Christmas.

Previous events also include the Holiday Train and the Winter Games.

ATCO funding is applied to this department as it is available to offset the tax requirement.

Highlights Include: •

All events back to ‘normal’, includes: –

•

Canada Day

Reduction in Olds Fashioned Christmas donations

27

Splash park Splash Parks sees an increase 39% or $12K over last year

Highlights Include: •

Increase to repairs and maintenance – –

Actuators (replacement due to moisture issues) Controllers and SD card (these are spare parts. These items run the entire park, if one goes down it is a 1 to 2 month delay in getting the parts)

28

Sports Fields Sports Fields see an increase of 12.9% or $45.5K over last year

Highlights Include: •

Increases to portapotties in Sportsfields – –

Back to pre-covid Increased number at Rotary Athletic Park

29

Campground Campground remains status quo. The Campground is maintained and run by the Olds Lions Club.

Lease payments are paid to the Town of Olds annually based on revenues received by the Olds Lions Club. There are no changes to this area in 2022.

30

Museum Museum remains status quo. The Museum is run by the Olds Historical Society.

The Town of Olds maintains the building and provides quarterly support to the Olds Historical Society for an annual operational grant total of $50,000.

ATCO Franchise fee is used to cover the costs of the museum at this time.

31

Evergreen Centre The Evergreen Centre remains status quo. The Evergreen centre is operated by the Evergreen Club.

While the Evergreen Club does minor maintenance on the building. The Town of Olds is responsible for all capital costs.

ATCO Franchise fee is used to cover the costs of the Evergreen Centre at this time.

32

Library Library sees an increase in ATCO funding needed of 3.4% or $17K over last year

Highlights Include: • •

Increase to Library board equal to COLA (2.33%) Increase from Parkland Regional Library

33

Heritage, Arts and Culture Heritage, Arts and Culture sees a decrease in ATCO funding needed of 24.5% or $25K over last year

Included in this area are events such things as National Indigenous Peoples day, Culture Days and Heritage Day. Our Heritage, Arts Advisor is also involved in the Public Arts Advisory Committee, Heritage preservation and the Museum

Highlights Include: • •

Changes to staff allocations Increase to Community Events General

34

Franchise Fee Allocations 2019 Actual

2020 Actual

2021 Actual

2022 Budget

Street Lights

421,819

430,864

434,860

435,000

General Revenue

832,328

1,002,414

1,056,094

1,108,899

1,254,147

1,433,278

1,490,954

1,543,899

Special Events

26,380

78,966

117,923

138,383

Museum

61,092

63,717

65,291

84,421

Evergreen Centre

4,653

7,912

5,022

8,155

Library

485,869

493,474

490,267

507,389

Heritage

104,352

97,990

94,496

75,964

0

0

2,367

157,938

73,840

51,141

0

0

756,186

793,200

775,366

972,250

FORTIS

Total Fortis ATCO

General Revenue Reserves

Total ATCO

35

Utilities The Town of Olds operates its utility system on a ‘cost-recovery’ basis. Tax dollars are not used to subsidize the utility rates •

The utility system consists of storm water management, water distribution, wastewater collection, and solid waste management.

•

Water and wastewater rates have two components: a fixed or base rate and a consumption rate.

•

The solid waste rate is a fixed rate each month. It covers all costs relating to the collection and disposal of recycling material, composting material and waste material.

•

Storm water is currently funded through the wastewater fixed rate.

36

2022 Utility Rates 2019

2020

2021

2022

Water Base Rate Consumption Rate

12.83 2.79

12.83 2.84

12.83 2.89

12.83 2.99

Waste Water Base Rate Consumption Rate

18.40 4.43

18.40 4.48

18.40 4.53

18.40 4.61

Solid Waste

26.42

24.30

24.30

24.30

$129.85

128.73

129.73

131.53

Average Utility Bill*

*consumption based on average residence of 10 cubic meters Increases to water and wastewater consumption rates come from increases to rates from the water and wastewater commissions.

37

Storm Water Storm Water is funded through wastewater rates.

There is a decrease of 27.8% or $15K over last year

Highlights Include: •

Focus on catch basins - shifting

38

Water Water sees an increase in total expenses of 3.5% or $110K over last year

Highlights Include: • • • • • •

Increase to consumption rates of 0.10 cents – increase from water commission was 0.11 cents Increase to Conferences, Travel and Training (post-covid return) Increase to water meter budget – align with actuals Vac truck lease up in 2022 – anticipating increased costs for new lease Transfer to capital for MIP program and slide in service body Transfer from Utility Operating Reserve required to balance - $204,848 39

Waste Water Waste Water sees an increase in total expenses of 0.6% or $26.5K over last year

Highlights Include: • • • • •

Increase to consumption rates of 0.08 cents – increase from waste water commission was 0.08 cents Increase to Conferences, Travel and Training (post-covid return) Vac truck lease up in 2022 – anticipating increased costs for new lease Transfer to capital for MIP program Transfer to Utility Operating Reserve - $206,586 40

Solid Waste Solid Waste sees an increase in total expenses of 2.7% or $29K over last year

Highlights Include: • • • •

Solid waste rates remain the same Increases to pickup fees (both residential and 3yd bins) Increase in requisition from commission Transfer from Utility Operating Reserve required to balance - $65,930

41

Utility Reserves Projections

As per policy the Utility Operating Reserve should be maintained at a max of 5% of the annual operating expenditures related to water, wastewater, storm and solid waste. For 2022 this would be $452,361

42

Operating Reserves Projections

43

2022 Tax Rate Impacts – 0% Residential

Municipal Education Seniors TOTAL

2021 AVG $308,578 $ 1,833 $ 789 $ 119 $

2,741

2022 AVG $316,298 $ 1,879 $ 843 $ 116 $

2,838

Change $ 46 $ 54 $ (3) $

97

2.5% 2.5% 6.8% -2.5% 3.5%

Non-Residential

Municipal Education Seniors

2021 AVG $909,624 $ 7,394 $ 3,662 $ 350

2022 AVG $915,490 $ 7,442 $ 3,531 $ 334

Change $ 48 $ (131) $ (16)

0.6% 0.6% -3.6% -4.6%

TOTAL

$

$

$

-0.9%

11,406

11,307

(99)

44

Inflation 2018 - 2021 Inflation vs. tax rate increases Assessment Increase due to Inflation Tax Rate Increases Total Increases Alberta Inflation year over year Difference

2018 -1.63% 2.00% 0.37%

2019 0.64% 2.00% 2.64%

2020 -1.95% 0.00% -1.95%

2.47% -2.10%

1.73% 0.91%

1.11% -3.06%

2021 TOTAL 0.40% -2.55% 0.00% 4.00% 0.40% 1.45% 3.19% -2.79%

8.50% -7.05%

2022 – Assessment Increased due to inflation = 1.85% 2022 – January/February Alberta Inflation = 5.17%

45

2022 Tax Rate Impacts – 2% Residential

Municipal Education Seniors TOTAL

2021 AVG $308,578 $ 1,833 $ 789 $ 119 $

2,741

2022 AVG $316,298 $ 1,917 $ 843 $ 116 $

2,876

Change $ 84 $ 54 $ (3) $

2.5% 4.6% 6.8% -2.5%

135

4.9%

0.6% 2.7% -3.6% -4.6%

Non-Residential

Municipal Education Seniors TOTAL

2021 AVG $909,624 $ 7,394 $ 3,662 $ 350

2022 AVG $915,490 $ 7,590 $ 3,531 $ 334

Change $ 196 $ (131) $ (16)

$

$

$

11,406

11,455

49

0.4% 46

Debt Projections

 Between 2022 and 2025 five (5) of our current debentures will reach end of life  There are projected increases to debt in 2024 for south reservoir relining and in 2029 for north reservoir replacement 47

Recommendations for funding the Gap

48

Capital Reserve Projections

49

Capital 2022

50

Capital 2023

51

52