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2019 Operating Budget OverviewFinancial Challenge:
Maintaining Vision, Managing Expectations
Craig Curtis, City ManagerJanuary 8, 2019
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“Times and conditions change so rapidly that we must keep our aim constantly focused on the future.”
Walt Disney
“Real vision demands that we make tough choices. Real vision is responsible and paid for.”
Michael F. Easely
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2018 / 2019 Budget Process
September 5, 2018
December 11, 2018
November 19 & 20, 2018
October 24, 2018
September 2018
January 8 - 18, 2019
July 2018
May 2, 2018
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Budget Public Meeting
Budgets Submitted by Departments
Mid-year Budget Review
City Manager Review
Capital Budget Council Briefing
Operating Budget Council Briefing
Council Considers Operating Budget
Council Considered Capital Budget
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Capital and Operational Planning
• The Strategic Plan is the direction set by Council that guides Administration.
• Strategic Plan Implementationincludes comprehensive, coordinated plans detailing organizational work to achieve the direction.
• The Budget implements the course for 2019.
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Innovative ThinkingInspired Results
Vibrant Community
Our Vision5
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Our Mission
The City of Red Deer works together to provide leadership and sustainable municipal services for our community.
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Operational Planning
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Budget Process
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2009 – 2011 Strategic PlanPrimary Themes & Implementation
Downtown - Greater Downtown Action Plan- Riverlands Area Redevelopment Plan- Downtown Investment and Attraction Plan
Environment - Environmental Master Plan - Waste Management Master Plan- Corporate Greenhouse Gas Study- Greening the Fleet Study- District Energy Feasibility Study (Draft)- Community Energy & Emissions Plan (Draft)
Culture - Culture Vision
Governance - Governance & Policy Committee
Parks - River Valley & Tributaries Concept Plan
Growth - Intermunicipal Development Plan- Municipal Development Plan
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Intermunicipal Development Plan / Growth
• A joint City County meeting is held every year when the City presents its land requirements for growth in order to confirm the current status of growth and land absorption.
• On October 15, 2018 the City of Red Deer announced its intent to proceed with a study to confirm the next phase of annexation within the growth area.
• The direction of growth has a major impact on the need for infrastructure and consequently the Capital Budget and Plan.
• City Council has directed through planning documents and infrastructure studies that Red Deer should grow to the northeast and north of Highway 11A. These are the primary areas for infrastructure investment in capital planning for the next 10 years.
• Revisions to the Municipal Government Act have a strong focus on Intermunicipal collaboration which includes mandatory requirements for regional land use planning as well as the delivery and funding of regional services. All municipalities outside of Edmonton and Calgary that share a common boundary must adopt an Intermunicipal Collaboration Framework (ICF) by April 1, 2020.
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Intermunicipal Development Plan / Growth2017/18 Implementation
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• ICFs are intended to provide for integrated and strategic planning, delivery, and funding of intermunicipal services. ICFs must address transportation, water and wastewater, solid waste, emergency services, recreation, and any other services that benefit residents in more than one of the municipalities that are parties to the framework.
• Both City and County Administrations are in the process of reviewing our existing agreements and plans. The following steps will require discussions and negotiations on the development of the ICF and may require IDP amendments to bring it in compliance with the ICF.
• The City was awarded a grant from AB Municipal Affairs to assist this work over the next year.
• The IDP outlines growth areas for The City and the County and a collaborative planning area.Administrations for Red Deer County and the City of Red Deer meet monthly to renew applications in the City’s growth area and the collaborative area.
Strategic Direction 2012 - 2014Healthy Community
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Strategic Direction 2012 – 2014Goals: Six Themes
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Economy Shift our primary economic development focus and activity to within Red Deer.• Economic Development Strategy Prioritization• Downtown Investment and Attraction Plan• Downtown Residential Attraction Study (Underway)IMPLEMENTATION STAGE
Design Design and plan our community to reflect our character and values.• Neighbourhood Planning and Design Standards• Engineering Design Guidelines Revision• Character StatementsIMPLEMENTATION STAGE
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Movement Design for and facilitate integrated movement.• Mobility Playbook• Multimodal Transportation Plan IMPLEMENTATION STAGE
Identity Identify and promote our Red Deer identity.• Identity Narrative• Promotional VideosIMPLEMENTATION STAGE
Strategic Direction 2012 – 2014Goals: Six Themes
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Strategic Plan 2015 - 2018
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Strategic Plan 2015 – 2018Goals: Three Themes
Dialogue Engage our community and enhance our relationships.
Financial Leadership Build a sustainable financial foundation for current services and future community investment.
Community Amenities Create great spaces and places for all Red Deerians to experience.
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The Dialogue Charter was developed under the former Strategic Plan (2009-2014) and is continued under the current Strategic Plan (2015-2018).
The majority of outcomes and strategies outlined in relation to public engagement have been achieved. This includes the research and development of a Public Participation Framework.
The “Public Participation Toolbox” was adopted by Council in 2015 and is part of current practice.
The City won the 2015 AUMA Sustainability Award for its work on governance and public engagement.
DialogueEngage our Community and Enhance our Relationships.
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Council agreed upon a series of advocacy priorities to meet the outcomes listed in the Charter. The following advocacy priorities have been successful over the last 5 years.• Provincial funding for the extension of the runway at the
Red Deer Regional Airport.• Provincial development of the new interchange on Highway
2 south of the city.• Funding for the Gary W. Harris Canada Games Centre at
Red Deer College to host the 2019 Canada Winter Games.• Funding for the Red Deer Justice Centre.• The transition of Red Deer College to University status.
Ongoing advocacy initiatives include:• Expanded facilities at the Red Deer Regional Hospital.• Provincial funding for a 24/7 shelter with wraparound
services.
DialogueEngage our Community and Enhance our Relationships.
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Financial LeadershipCreating a Sustainable Financial Foundation.
Council has adopted detailed Budget Guidelines since 2015 which provide clear policy direction for both Capital and Operating Budgets.
The Audit Committee adopted a series of financial metrics which will be included in policy.
New Federal and Provincial programs are being monitored and considered in financial planning.
Modified Capital and Operating Budget format to show projects and initiatives by function, not by Divisions and Departments.
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Community AmenitiesPlanning Great Spaces and Places for Community Living.
• A major community consultation on community amenities was completed in 2015 to assist Council’s decision making regarding the Capital Budget and 10 Year Capital Plan.
• Consultation included three phases; Development, Prioritization and Confirmation. Based on a series of criteria a prioritized list of community amenities was established.
• The Capital Budget and 2019-2027 Capital Plan includes 17 of the top 20 ranked amenities in various stages of development from feasibility studies to full implementation.
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City of Red Deer Sustainability Pillars
EnvironmentalMaster Plan
Governance Framework
Social Policy
Framework
Culture Vision
Economic Development
Strategy
2018/2019 Update
Ongoing Review
Implementation ImplementationImplementation
2018 Strategic Overlay Under Development
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
2018 Citizen Satisfaction SurveyFinal ReportJune 2018
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QUALITY OF LIFE
Overall Quality of Life
Q2. How would you rate the overall quality of life in the City of Red Deer today? Would you say very good, good, poor, or very poor?
Base: All respondents (n=300)
Very Good/Good93%
Very Poor/Poor7%*
2006(n=300)
2008(n=300)
2011(n=300)
2012(n=300)
2013(n=300)
2014(n=302)
May 2015(n=300)
Dec. 2015(n=300)
July 2016(n=300)
June 2017(n=300)
June 2018(n=300)
Very good/good 97% 95% 97% 98% 97% 98% 98% 97% 98% 97% 93%
Very good 49% 38% 47% 49% 46% 48% 35% 40% 39% 38% 30%
*Rounding
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SATISFACTION WITH CITY SERVICES
Overall Satisfaction with the Overall Level and Quality of City Services
Q7. Please tell me how satisfied you are with each of the following services provided by the City of Red Deer. The first one is the overall level and quality of services provided by the City of Red Deer. Our scale is very satisfied, somewhat satisfied, not very satisfied, or not at all satisfied.
Base: All respondents (n=300)
Satisfied92%
Not Satisfied8%
2006(n=300)
2008(n=300)
2011(n=300)
2012(n=300)
2013(n=300)
2014(n=302)
May 2015(n=300)
Dec. 2015(n=300)
July 2016(n=300)
June 2017(n=300)
June 2018(n=300)
Very/Somewhat satisfied 98% 91% 94% 93% 93% 95% 92% 95% 97% 92% 92%
Very satisfied 43% 28% 33% 41% 34% 29% 32% 38% 39% 37% 35%
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Municipal Government Performance
Municipal government, including Council and Administration as a whole
Council, excluding Administration
Administration, excluding Council
Very/Somewhat satisfied
2014(n=302)
May 2015(n=300)
Dec. 2015(n=300)
July 2016(n=300)
June 2017(n=300)
June 2018 (n=300)
Municipal government, including Council and Administration as a whole 84% 87% 91% 90% 87% 86%
Council, excluding Administration 84% 84% 89% 90% 87% 79%
Administration, excluding Council 80% 84% 89% 89% 87% 77%
Q6. Taking everything into account, how satisfied are you with the way the City of Red Deer’s…is going about running the community? Are you very satisfied, somewhat satisfied, not very satisfied, or not at all satisfied?
Base: All respondents (n=300)
Very/Somewhat satisfied
86%
79%
77%
2017: 3%
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SATISFACTION WITH CITY SERVICES
Satisfaction with Specific City Services
Q7. Please tell me how satisfied you are with each of the following services provided by the City of Red Deer. The first one is the overall level and quality of services provided by the City of Red Deer. Our scale is very satisfied, somewhat satisfied, not very satisfied, or not at all satisfied.
Base: All respondents (n=300)
Satisfied
Recreational and cultural facilities
Police services
Maintenance, cleaning and upgrading of streets and sidewalks
Traffic management including traffic calming and improving the flow of traffic
Snow removal
91%
82%
82%
74%
64%
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TAXATION
Value for Taxes
Good Value85%
Poor Value13%*
2006(n=300)
2008(n=300)
2011(n=300)
2012(n=300)
2013(n=300)
2014(n=302)
May 2015(n=300)
Dec. 2015(n=300)
July 2016(n=300)
June 2017(n=300)
June 2018(n=300)
Very/fairly good 91% 80% 86% 84% 83% 84% 83% 88% 82% 80% 85%
Very good 27% 19% 20% 20% 18% 24% 16% 28% 18% 19% 24%
Q8. Thinking about all the programs and services you receive from the City of Red Deer, would you say that overall you get good value or poor value for your tax dollars? (Is that very or fairly good/poor value?)
Base: All respondents (n=300)
*Rounding
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TAXATION
Balancing Taxation and Service Delivery Levels
Q9. Municipal property taxes are the primary way to pay for services provided by the City of Red Deer. Due to the increased costof maintaining current service levels and infrastructure, the City of Red Deer must balance taxation and service delivery levels. To deal with this situation, which one of the following four options would you most like the City of Red Deer to pursue?
Base: All respondents (n=300)
Increase Taxes51%
Cut Services39%*
*Rounding
Increase taxes ‐ to enhance or expand services
Increase taxes ‐ to maintain services at current levels
Cut services ‐ to maintain current tax level
Cut services ‐ to reduce taxes
None
Don't know
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CITIZEN PRIORITIES AND EXPECTATIONS
Top Three Priorities for The City to Address Over the Next 12 Months: Key Themes (Unprompted)
Multiple Responses
Note: A “NET” is a combination of 2 or more mentions that cover a
specific theme
QE1. Thinking about all of the priorities that exist in the City of Red Deer today, please tell me the top three priorities that you feel the City should address over the next 12 months.
Base: All respondents (n=300)
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ISSUE AGENDA
Most Important Local Issues: Key Themes
Q1. In your view, as a resident of the City of Red Deer, what is the most important issue facing your community, that is the one issue you feel should receive the greatest attention from your local leaders? Are there any other important local issues?
Base: All respondents (n=300)
Multiple Responses
Note: A “NET” is a combination of 2 or more mentions that cover a
specific theme
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CITY COMMUNICATIONS
Preferred Methods of Communication from The City of Red Deer
Q11. And what methods would be best for the City of Red Deer to communicate information to you? Any others?
Base: All respondents (n=300)
Social media (Twitter, Facebook, etc.)
Text/ text messages
Telephone
Newspaper
Newsletter/pamphlet/flyer/brochure
Radio
City website
Internet (unspecified)
TV
Billboards/ signs
Other
None/ nothing
Don't know
Multiple Responses2017
23%
19%
‐
5%
19%
19%
9%
13%
17%
8%
4%
5%
11%
5%
1%
Budget Open House80+ Attendees.
Online SurveyA total of 188 respondents completed the survey.
Let’s Talk: Staff and Council consulted with over 100 residents during that event.
Budget Public EngagementApproximately 368 Red Deerians Engaged
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Budget Public Engagement Combined Survey Results: Value for Taxes
Ipsos Results97% Very Good/Good
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Budget Public Engagement Combined Survey Results Value for Taxes
Ipsos Results85% Very Good/Good
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Budget Public Engagement Combined Survey Results: Balancing Taxation with Service Delivery
25%
24%
27%
15%
Ipsos Results
59%Increase
taxes
51%Increase
taxes
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Budget Public Engagement Combined Survey Results: Top Priorities
Twelve Month Priorities Banister Research(Web Based Survey)• Police Sources/Public Safety 51% • Snow Removal Services 18% • Road Maintenance/Repairs 17%• Recreational Services/Programs 14%• Homelessness Services 12%
Ipsos Results (Random Survey Statistically Accurate)• Crime 48%• Transportation 35%• Municipal Government Services 26%• Social 25%• Recreational Services 19%
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Budget Public Engagement Combined Survey Results: Top Priorities
Twelve Month Priorities Budget Open House/Lets Talk• Recreational, Parks and Culture• Policing and Crime• Roads, Transportation and Transit• Infrastructure• Economy and Budget• City Government
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Service Enhancement or Reduction Priorities:
Banister SurveyWhat Services Would You Like To See Increased or Enhanced?59% of Respondents • Policing/Law Enforcement 27%• Recreation Services/Programs 19%• Snow Removal Services 15%• Arts and Cultural Services 9%
What Services Would You Like To See Cut?39% of Respondents • Snow Removal Services 18%• Public Transit Services 15%• Recreation Services/Programs 14%• Arts and Culture Services 8%
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Mid Sized Cities Outlook 2018/19
Recognizing the valuable role that Canada’s mid-sized cities play as regional hubs and economic engines in their respective areas, Mid-Sized Cities Outlook 2018 provides a snapshot of these cities’ economic situation and performance over the past decade, as well as a near-term economic growth forecast for eight select cities.
Document Highlights• Red Deer’s economy, after expanding strongly in 2017, is forecast to grow
more slowly this year. Real GDP should rise by 2.8% in 2018 and by 2.2% in 2019.
• Moderate output growth will slow employment gains to 1.8% in 2018 and to 1.4% in 2019 following 5.0% growth in 2017.
• The original job increases will reduce unemployment rate from 8.0% in 2017 down to 7.3% in 2018 and 6.5% in 2019.
• The construction sector is forecast to continue its modest recovery with output growing by 3.1% in 2018 and a further 1.6% in 2019.
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City of Red Deer Budget Outlook
• The impact of prior Council decisions already impact the 2019 Budget by the equivalent of a 3.38% budget increase. A large portion of the increase is a result of the 10 additional RCMP members.
• The impact of the Capital Contribution (Amenities and Growth) is an additional 1%.
• The large Provincial deficit will impact Provincial grants to municipalities in the future.
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City of Red Deer Budget Outlook
• The City’s applications to the new Federal Infrastructure Program have not yet been adjudicated.
• Construction rates continue to be down from projections resulting in major reductions in offsite levy and land sales revenue. Revenue projections for the next few years have been adjusted accordingly.
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Budget Financial Challenges / Opportunities
2019 Construction rates are down significantly, resulting in major reductions in offsite
levy and land sales revenue. The reduction in offsite levy revenue has a major impact on the Capital Budget
and Plan and resulted in internal borrowing to fund growth infrastructure on an interim basis.
In 2019 the anticipated tax revenue from new growth is projected as $1.1 million which is $1.5 million lower than a good growth year.
There has been a reduction in revenues for recreation and transit which has been slow to recover after the recession.
The utilities of water, wastewater, and EL&P have also experienced lower levels of use with decreased economic activity.
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Budget Financial Challenges / Opportunities
There is a potential to receive new revenue through the new Investing in Canada Infrastructure Grant Program. This program is administered by the Province under a bilateral agreement and municipalities are required to use MSI funding as the Provincial matching dollars.
The Municipal Sustainability Initiative (MSI) Program has been a major source of funding for municipalities. This program is ending in 2019 and Provincial budget documents indicate a decrease in funding in the future.
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Budget GuidelinesFinancial Parameters
1. A 1% Capital contribution (amenities and growth) amount in the 2019 Operating Budget.
2. A 1% Capital contribution (amenities and growth) amount in the 2020-2022 Operating Plan.
3. A property tax revenue requirement of no more than 2.5% for the 2019 Operating Budget (including the 1% Capital contribution).
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Budget GuidelinesFinancial Parameters Continued
4. A property tax revenue requirement of no more than 2.5% (including the 1% capital contribution) for the 2020-2022 Operating Plan.
5. That the 2019-2028 Capital Budget and Plan not exceed the approved 75% of the Provincial debt limit as per Council policy.
6. Reserves will maintain a positive balance.
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Budget TimingOperating Budget
Operating Budget: January 8th through 18th, 2019
Council will consider:
Operating Budget 2019 Approval (and future year funding as identified).
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The overall theme for the 2019 Operating Budget is:
“Financial Challenge: Maintaining Vision; Managing Expectations.”
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Operating Budget Key Drivers Continued
The need to align all new service plan initiatives with the Strategic Direction and the priorities established by Council.
The need to accommodate the cost of initiatives approved in 2018 but not fully funded in the 2018 Budget.
The need to maintain an “acceptable” level of maintenance without significant cost increases.
The need to fund the increased operating costs of new community amenities including those developed for the Canada Winter Games.
The need to adhere to the Budget Guidelines and Financial Policies approved by Council.
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2019 Capital Budget
The 2019 Capital Budget was adopted by Council on November 20, 2018.
The approved 2019 Capital Budget is $121,042,000 compared to $80,735,000 in 2018 and $ 104,972,000 in 2017.
The 2019 direct tax supported impact of the Capital Budget on the Operating Budget is $ 526,054 or the equivalent of a 0.39% tax increase.
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2019 Operating Budget Recommendations
The 2019 Operating Budget was prepared based on the following:
• The Budget Guidelines adopted by Council on April 30, 2018.
• The overall direction in the 2015 - 2018 and 2019 - 2022 Strategic Directions.
• The changing economic situation in the Province.
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Division Priorities, Initiatives and Service Plans
Divisional Priorities / Initiatives
Strategic Direction
Core Business & Programs
Implementation
Corporate Planning Considerations
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Organizational Chart
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City Manager’s Division
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• Strategic Plan Update
• Intermunicipal Development Plan (IDP) / Intermunicipal Collaboration Frameworks (ICF)
• City Identity: Image and Branding
• Sustainability Pillars Review and Integration
• Media Relations Strategy
• Enterprise Business Plan: EBP Team
• Community Engagement
• Notify Red Deer
• Diversity Initiatives / Welcoming and Inclusive Community
• Aboriginal Relations / Truth and Reconciliation / UAVS
• Advocacy Initiatives
• City Manager Priorities
City Manager’s Office, Human Resources, Communications & Strategic Planning
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Corporate Services Division
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Financial Services, Revenue & Assessment, Information Technology Services, Legislative Services
• Enterprise Business Applications (EBA) Budget Software• Risk Management Strategy / Cyber Security• MGA Amendments / Implementation• Information Technology Strategic Plan• Value for Money Audits• Collections Storage• Enterprise Asset Management• Radio System Upgrade (AFRCCS)• Evaluation of a Stormwater Utility
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Development Services Division
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Engineering Services, Electric Light & Power, Public Works, Environmental Services
• Future Growth Strategy / Intermunicipal Development Plan• Environmental Master Plan Update• Greenhouse Gas Inventory, Climate Change, Greening the Fleet,
Community Energy and Emissions Plan• Waste Management Master Plan: Implementation of CART
System• Stormwater Utility Study• Multimodal Transportation Plan Implementation• Municipal Government Act / Offsite Levies Review
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Planning Division
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Planning Services, Inspections & Licensing, Land & Economic Development
• Future Growth Strategy / Intermunicipal Development Plan (IDP)
• Intermunicipal Collaboration Frameworks (ICFs)
• Multimodal Transportation Plan Implementation
• Greater Downtown Action Plan (GDAP) / Riverlands
• Downtown Investment and Attraction Plan (DIAP)
• Land Use Bylaw Update
• Community Standards Bylaw
• Area Structure Plans
• Economic Development Strategy: Priorities
• Land Development: Land Bank
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Community Services Division
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Recreation, Parks & Culture, Social Planning, Transit
• 2019 Canada Winter Games / Facility Development / Mobilization Plan• Community Services Operational Audit• Cultural Facility Needs Assessment• Games Plaza / Downtown Culture Centre• Social Policy Framework Implementation• Poverty Initiatives / Program Accessibility / Fee Assistance Program• Community Safety Strategy• Integrated Housing Model• Homeless Shelter Advocacy• FCSS Program Delivery• Multimodal Transportation Plan: Transit Plan
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Protective Services Division
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RCMP, Municipal Policing, Emergency Services, Security
• Annual Policing Plan (APP)• Community Safety Strategy• Crime Prevention Centre• Traffic Safety Plan• Security Plan• Emergency Management / Preparedness• Emergency Services Operational Review• Rough Sleeper Camp Cleanup
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Strategic Plan 2019 - 2022
GOALS
Red Deer is:
• A Safe Community
• A Socially Responsible City
• A Chosen Destination
• An Economic Leader
In addition under the sustainability pillars.
• Red Deer has an Environmental Plan
• Red Deer has a Cultural Vision
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Red Deer is a Safe Community
Red Deer is a safe and secure community. Safety is strengthened through a focus on enforcement, as well as prevention, intervention, and education.
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• Approved funding for 10 new police officers, 4 of whom will be dedicated to downtown enforcement and patrols. (50% in 2018 & 50% in 2019).
• Recommend advance funding 5 additional members in 2020 to be dedicated to APP priorities. Plan for January 2020 start.
• Continued support for the implementation of the recommendations from the Community Safety Ad Hoc Committee as outlined in their their report “Towards a Vision of a Safe Red Deer.”
Red Deer is a Safe Community
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Red Deer is a Safe Community
• Recommended funding for the Central Alberta Crime Prevention Centre (CACPC).
• An increase in the policing contract with the RCMP to maintain the current complement of officers and support services.
• An increase in the budget to accommodate the shortfall in the regular and special policing grant from The Province.
• Increased advocacy efforts with the review of The Police Act to correct the inequity between Provincial funding for urban and rural areas. This inequity creates a differential in tax rates, which encourages fringe development.
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Safety
• Recommended additional Police resource to support The Central Alberta Child Advocacy Centre.
• Recommended additional funding for the cleanup of rough sleeper camps in conjunction with social supports.
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Red Deer is a Socially Responsible City
Red Deer offers a welcoming community where everyone can enjoy a high quality of life. As a community, together we advocate for much needed social infrastructure and build a resilient community.
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Red Deer is a Socially Responsible City
Equitable Services and Impact• A limited increase in Recreation, Parks and Culture and
Transit fees and charges in recognition of the current economy.
• The Provincial Government has granted $19.7 Million to Edmonton and Calgary to subsidize transit over the next three years. Mid-sized cities, including Red Deer, representing over 900,000 Alberta residents have been denied funding.
• Continued Fee Assistance Program provided to eligible residents to participate in RPC Programs.
• Continued funding of 211 Service to connect residents with community program supports and opportunities in a large range of languages.
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Housing• Continued implementation of the Plan to End Homelessness
and the allocation of Provincial and Federal funding through the Community Housing Advisory Board (CHAB).
• Continued support and resources to partner with the Province in the development of an Integrated Housing Framework which would develop a new and more effective governance framework for affordable and seniors housing.
Poverty Prevention and Reduction• Continued funding and delivery of the Family and
Community Support Program which focuses on “prevention” initiatives throughout the community.
• Ongoing advocacy to the Provincial and Federal Governments with regard to shelter, affordable housing and a local treatment centre.
• Continued support for the Central Alberta Poverty Reduction Alliance (CAPRA) in completing a needs assessment towards a Poverty Reduction Strategy.
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Social and Cultural Diversity
• Ongoing funding for a Diversity & Inclusion Specialist in Human Resources to work with The City and the community.
• Proposed funding for diversity initiatives in the community in conjunction with the Welcoming and Inclusive Community (WIC) Network.
• Proposed funding for initiatives in conjunction with the Urban Aboriginal Voices (UAVS) governance framework.
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Red Deer is a Socially Responsible City
• Enhanced advocacy efforts to the Province in support of social infrastructure to respond to crime, addictions and social disorder including a 24/7 shelter with wrap around services and a local treatment centre.
• Continued support for The City’s role in the implementation of the Drug and Alcohol Strategy based on the four pillar approach of prevention, treatment, enforcement and harm reduction.
• The implementation of a coordinated needle pick up strategy throughout the city to combat the downstream impact of the Province’s needle distribution program.
Social Disorder and Addictions
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Red Deer is a Chosen Destination
We are a four-season destination where visitors and residents enjoy our parks, trails and distinctive amenities, all within our “city within a park”. Centrally located in the province, we attract events that generate investment and enhance our community identity.
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Red Deer is a Chosen Destination
• Proposed funding and support for the 2019 Canada Winter Games which is estimated to have an impact of over $130 Million in the community.
• Build on the success of attracting major conferences and events to the city such as the Hlinka Gretzky Cup, The Canadian Finals Rodeo (CFR) and AUMA.
• Proposed restructuring of The City’s role in economic development and tourism with increased resources to promote our central location as a “city in a park”.
• Establish a Bid Committee of community partners to attract events that generate investment and maximize the use of our distinctive amenities.
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Red Deer is an Economic Leader
We have a strong, dynamic economy, fostered by entrepreneurship and innovation. Leveraging our central location, Red Deer is an economic hub with a revitalized downtown and diverse local economy.
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Red Deer is an Economic Leader • The objective of the budget is to keep tax increases as
low as possible, recognizing the need to maintaininfrastructure and operate services which residents relyon.
• In the Ipsos Survey, residents favour tax increases tomaintain rather than enhance services. This is reflectedin the Budget Guideline and debt policy.
• Continue to maintain a low ratio between residentialand commercial taxes. Red Deer has one of the lowestcommercial tax ratios and rates of comparable cities.
• Continued funding for the implementation of the policies in the Economic Development Strategy and the Downtown Investment and Attraction Plan (DIAP). A recommended economic development resource in 2019/2020 to support local business development.
• Recommended ongoing funding for The City’smembership in the Central Alberta EconomicPartnership (CAEP).
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Red Deer is an Economic Leader
• Continued implementation of the Riverlands area which will provide a high density residential / commercial development linking downtown with the river valley park system. This is considered a major economic building block for downtown redevelopment.
• Recommended funding to explore annexation options leading to a potential notice of intention to annex in 2019.
• Recommended resources and funding to the development of an Intermunicipal Collaboration Framework with The County by April 2020.
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Red Deer has an Environmental Plan
Red Deer actively enhances its rich natural environment and minimizes its ecological footprint through City leadership, collaboration and active stewardship.
We are a leading example of a resilient community in which urban and natural systems are effectively integrated to the benefit of both.
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Environmental Plan
• Approved funding to complete the updated Environmental Master Plan (EMP) which will provide a framework for action over the next five years.
• Recommended funding for initial implementation of the EMP.
• Continued support and new funding for the implementation of the Waste Management Master Plan which includes a wide range of initiatives and incentives to reduce, recycle and reuse. Full implementation of the CART collection system in 2019.
• Continued support for Greening the Fleet initiatives and new transit vehicles and amenities through Federal and Provincial funding.
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Environmental Plan
• Major savings have been incurred as a result of conversion of streetlights and traffic lights to LED and initial solar panel installations.
• New funding for the upgrade of The City’s stormwater system following the direction in the Stormwater Master Plan. Funding has also been recommended to continue to study the establishment of a separate Stormwater Utility.
• Continued support for the maintenance of The City’s park system including new additions as well as increased capital funding for tree planting and replacement following the 2017 wind storm.
• Major expansion of the wastewater treatment plant to include phosphorous reduction and treatment of biosolids.
• Expansion of water treatment plant to include a residuals management system to improve water quality.
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Red Deer has a Cultural Vision
Red Deer is a vibrant city with an authentic identity where history is honoured, spaces and places help people connect. Diversity is valued and respected, creative expression and innovation are encouraged, and ctizens have a sense of pride and belonging.
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Cultural Vision
• Continued funding for many of the initiatives outlined in the Red Deer Community Culture Vision.
• The Central Elementary School, in conjunction with the Gary W. Harris Celebration Plaza, has been renovated for interim use by the Canada Winter Games Host Society and for relocation of The City’s Culture Services Section back into the Downtown core. Recommended funding for operations in 2019 and 2020.
• A feasibility study is currently underway for a future Cultural Facility in the city.
• Recommended 33% increase in funding for cultural groups through the Community Culture Development Fund for 2 years to address sustainability issues for cultural groups.
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Investment Priorities
The recommended budget includes investments in the following priority areas:
• Prior Year Budget Approval• Base Budget Items• Maintenance and Modifications• Accommodating Growth• Changing Service• Strategic Priorities
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Operating Budget
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2019 Prior Year Budget Approval
• Value for Money Audit, Recreation, Parks & Culture: $150,000 (One Time)• Municipal Government Act Regulations Implementation:$103,940 (One Time)• Canada Winter Games Value in Kind: $689,000 (One Time)• Canada Winter Games Corporate Mobilization: $232,450 (One Time)• Public Lands Act Compliance: $167,000 (One Time)• Annual Policing Plan Member Resourcing (10 Officers): $566,100 (Ongoing)• Northside Community Centre (2019): $423,665 (Ongoing)• (2019): $280,657 (One Time)• (2020): $425,020 (Ongoing) • Drug and Rough Sleeper Debris Cleanup: $200,000 (One Time)
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Base Budget
• Subdivision Revenue Adjustment: $40,000 (Ongoing)$40,000 (One Time)
• Provincial Police Funding Shortfall (3 Officers): $175,000 (One Time)• RCMP Member Fee Agreement Increase: $174,805 (Ongoing)• Tax Loss Provision: $200,000 (One Time)• Construction Growth Revenue: ($1,100,000) (Ongoing)• RPC Revenue Adjustment: $304,620 (Ongoing)
$100,000 (One Time)• Operating Impact from Capital (2019): $130,000 (Ongoing)• (2020): $96,000 (Ongoing)• Transit Revenue Adjustment: $100,000 (Ongoing)• $100,000 (One Time)• Gas Franchise Fee Reduction (2019): $290,000 (Ongoing)• (2020): $300,000 (Ongoing)• Personnel Provision: $2,635,905 (Ongoing) • Municipal Consent and Access Fee 0.9% Increase: ($1,002,299) (Ongoing)
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Maintenance and Modification
• Legal Services; Municipal Government Act Compliance: (2019) $50,000 (Ongoing)
(2019) $287,400 (One Time)(2020) $144,416 (Ongoing)(2020) $39,750 (One Time)
• Grant Specialist, Full Time After Canada Winter Games: $53,781(Ongoing)• Business License Fees: ($315,104) (Ongoing)• Stormwater Additional Funding Under Master Plan: $150,000 (One Time)• New Transit Building Operating Impact: $51,210 (Ongoing)
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Accommodating Growth
• Victims of Crime Fund: $150,000 ($150,000) Grant
• Regional Transportation Pilot: ($27,989) (One Time)
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Changing Service
• Stormwater Utility Study (2019): $155,833 (One Time)(2020): $190,000 (One Time)(2021): $ 34,167 (One Time)
• SWIT Transit System (2019): $63,903 (Ongoing)(2020): $63,903 (Ongoing)
• Central School Culture Section Operating (2019): $129,616 (Ongoing)(2019): $30,000 (One Time)(2020): $75,326 (Ongoing)
• G.H. Dawe & Collicutt Centre Reduced Hours (2019): ($150,439) (Ongoing)$ 37,611 (One Time)
• Reduce Sunday Transit Service to 1 hour: ($689,425) (Ongoing)$174,784 (One Time)
• Reduce Statutory Holiday Transit Service to 1 hour: ($156,721) (Ongoing)$27,604 (One Time)
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Strategic Priorities
• Growth Study (Exploration): $500,000 (One Time)• Intermunicipal Collaboration Frameworks: $100,000 (Grant funded)• Economic Development (2019): $80,891 (Ongoing)
(2019): $10,646 (One Time)(2020): $49,254 (Ongoing)
• Tourism Initiatives (2020): $274,532(Ongoing)(2020): $10,646 (One Time)(2021): $32,909 (Ongoing)
• Community Services Master Plan (2020): $100,000 (One Time)• 1% Amenity and Growth Allocation: $1,324,500 (Ongoing)• Police Resourcing Annual Policing Plan (2020): $729,999 (Ongoing)• Community Safety Strategy: $124,100 (One Time)
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Agencies / Other
• Red Deer Regional Airport: $255,000 (Previously Approved)• Central Alberta Economic Partnership: $48,954 (Ongoing)• Red Deer Public Library: $103,732 (Ongoing)• WEES & MAG Contract: $45,385 (Ongoing)• Central Alberta Crime Prevention Centre: $160,121 (One Time)• UAV Society Support: $20,000 (One Time)
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Addressing Community Safety
In the Ipsos survey respondents identified crime and community safety as the top priority which The City should address over the next year.
The largest investment in this Operating Budget relates to community safety in the following ways:
• Annual Policing Plan 2018/19; 10 New Officers: $566,100 (Ongoing)
• Annual Policing Plan 2020; New Resources: $729,999 (Ongoing)
• Police Resource; Child Advocacy Centre $158,000 (Ongoing)
• Drug & Rough Sleeper Camp Debris Clean Up: $200,000 (One Time)
• $200,000 (Previously approved)
• Provincial Police Funding Shortfall; 3 Officers: $175,000 (One Time)
• RCMP Member Fee Agreement Increase: $174,805 (Ongoing)
• Central Alberta Crime Prevention Centre: $160,121 (One Time)
• Community Safety Strategy: $124,100 (One Time)
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Addressing Community Safety Cont’d.
Additional Actions:• Implementation of the Community Safety Strategy outlined in “Towards a Vision
for a Safe Red Deer.”• Ongoing advocacy to the Provincial Government to address the four pillars
outlined in the Drug and Alcohol Strategy:
o Prevention
o Harm Reduction
o Treatment
o Enforcement
• Ongoing advocacy to the Provincial and Federal Governments with regard to a shelter, affordable housing and a treatment centre.
• Ongoing advocacy to the Provincial Government to reduce downstream impacts of needle debris in the community through the needle distribution program. Financial impact estimates $200,000 plus $80,000 Provincial Grant.
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The Financial Bottom Line
The Operating Budget consists of the following four components:
• Prior Year Carry Forwards
• Impact of Prior Year Budgets
• Funding Adjustment Recommendations (FAR’s)
• Cost Savings
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Operating Budget
Prior to including the FAR’s, the impact on property tax is as follows:
Prior Year Carry Forwards TBD
Impact of Prior Year Budgets $4,511,027
Net Increase 3.4%
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2019 Operating Budget
• The value of the FAR’s as originally submitted in July was $12,350,161
• The FAR’s in combination with the Base Budget and the Impact of Prior Year Budgets would have resulted in a tax increase of 12.39%.
• The City Manager, the EBP Team and the Corporate Leadership Team jointly reduced these requests to a proposed tax impact of 2.5%.
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2019 Operating BudgetAs Recommended
The 2019 Operating Budget as recommended to Council has an increase of $3,336,384 or the equivalent of a 2.50% tax increase.
(1.5% + 1% for Capital and Amenities and Growth).
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City of Red Deer Tax Increases 1988-2019 (proposed)
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City of Red Deer Tax Increases 2009-2019 (proposed)
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There is a tendency to view City budget documents as being where vision meets reality.
City Budget documents must be considered as the means of implementing Council and community vision.
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Thank you.
