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