2015 - 2018 budget report

2015 -2018Budget Report

CITY COUNCILMessage from the Mayor

We’ve developed this document to help residents have a better understanding what goes into creating, reviewing and approving the City’s budget. Our goal is to be as transparent as possible and demonstrate the process we use to deliver the services, programs and infrastructure you count on.

Even though you might not realize it, the City’s budget isn’t that much different from what you might do at home or at your business. Our budget is broken into two parts - the Operational Budget and the Capital Budget.

At home, your Operational Budget would include day-to-day expenses like groceries, utilities, rent or mortgage payments, insurance, fuel, clothing, and assorted other costs. At the City, our Operational Budget includes many of the same things: utilities and insurance for all City operated facilities, fuel for equipment like graders and salaries for staff such as the 12 new RCMP officers that will be added over this term.

On the other hand, the Capital Budget is for things that are a large, or one time, expense - the kinds of things that you might only do once and while. In your life this might be buying a home, remodelling or major repairs, getting a new car or buying that big new TV. At the City, our Capital Budget funds major road improvements, fleet additions like new transit buses, new facilities or major renovations like re-opening the Leisure Centre.

The City’s four-year budget (from 2015 to 2018) was completed in two parts: the Operational Budget was finalized on Dec. 15 and the Capital Budget on Jan. 15.

However, completing these budgets was actually just part of a process that began early in 2014 when Council developed its 2015-2018 Strategic Plan. In that plan Council set the priorities that City departments used to build their budgets. Focus areas in Council’s Strategic Plan include:

• Optimizing Existing Services • Strengthening Our Core • Exploring New Directions • Capitalizing on Growth

How do these priorities influence the projects we do? For example, you will see that Council approved significant reinvestment in South Bear Creek Park on both the operational and capital sides of our budget - these investments are a result of Council’s priority of Optimizing Existing Services.

At this point, we predict a maximum municipal property tax increase of 4.2% in each of the four years. Having said that, budgets are reviewed each fall to ensure we are on course and so emerging issues can be addressed. Last term we were able to deliver lower-than-forecast tax increases and we hope to do the same again this term. I encourage residents to review further budget details by visiting: www.cityofgp.com/budget

Sincerely,

Mayor Bill Given Produced by the Communications and Citizen Engagement and Finance DepartmentsFor more information email [email protected]

BUDGET OVERVIEW2014 2015 2016 2017 2018

Capital Budget $38,575,383 $55,221,324 $51,630,038 $33,364,538 $31,737,538Operating Budget $140,781,514 $147,407,440 $152,876,070 $160,548,815 $168,195,198

The Capital Budget pays for the things we build, renovate and rehabilitate. You see the Capital Budget at work in the construction and renovation of facilities, the repaved road in your neighbourhood and the new park where your kids play.

In the past, we have addressed key growth and renewal projects for our community, such as the construction of our beloved Eastlink Centre and Montrose Cultural Centre a new Firehall on the west side of the city and the investment in many new roadways, trails and traffic signals – all working to benefit and transform our community.

You see the Operating Budget in action every time you have an interaction with the City – whether you’re perusing cityofgp.com for the latest updates, pulling over for a fire truck rushing to an emergency, or talking to one of our staff at the Citizen Contact Centre.

The City of Grande Prairie’s Operating Budget projects the revenues and guides the spending for our civic services and future projects. These are essential to operating the city and include services ranging from enforcement, fire rescue, and snow clearing to road rehabilitation, park maintenance, and recreation centres.

PROPERTY TAXES AND THE BUDGETA property tax rate increase of 4.2% was implemented for each year in 2015-2018. The City has $8.5 billion in assessment, with growth pegged at $2.5 million per year.

To calculate property tax, Council establishes mill rates that will cover the City’s costs. These include:

• A General Municipal Mill Rate – This rate is set by the City of Grande Prairie and this portion of your property taxes is used to fund municipal services and programs specifically for Grande Prairie residents.

• School Levy – To generate revenue for educational services, the provincial government and local school boards use property assessments to determine appropriate mill rates. The school mill rate is calculated by the Province/School Boards in much the same way City Council determines its municipal mill rate.

• Property tax Calculation: (Assessment/1000) x Total Mill Rate=Taxes Collectedeg. $335,000 (the average assessment value of a house in Grande Prairie) X 11.9345 = $3,998.06 of tax collected 1000

2014 Rates Residential Non-ResidentialMunicipal Mill Rate 9.5903 15.3855School Levy 2.3442 3.4628Total Property Mill Rate 11.9345 18.8483

Property tax rates for 2015 will be determined in April after the provincial education requisition is announced.

OPERATING BUDGET

CAPITAL BUDGET

YOUR TAX DOLLARS AT WORK BY SERVICE AREA

SOURCE OF REVENUES BY CATEGORY

Net of Revenue and Expenditures for 2015Service Area/Expenditure Amount Percentage

City Manager $1,652,671 1%Community Growth $7,007,515 6%

Community Living $27,713,956 22%Community Safety $45,854,980 37%

Corporate Services $1,878,894 2%School Levy;

Revenue forwarded to the Province/School Boards

$18,457,694 15%

Capital Projects; Funds used to maintain

or improve City infrastructure such as roads or bridges

$7,968,898 6%

Debt Servicing $14,276,089 11%

Total $124,810,697

Revenue Source Amount PercentageConcessions & Franchises $10,437,140 5%

Grants & Transfers $4,150,626 2%Interest on Investments $4,997,101 3%

Other Revenues $13,122,102 7%Property Tax $124,930,683 64%

Transfer from Reserves $5,885,000 3%User Fees $30,131,172 16%

Total $ 193,653,824

Axis

Title

CORPORATE SERVICES2014 2015 2016 2017 2018

Capital Budget $3,724,249 $10,378,700 $1,795,000 $2,760,000 $3,445,000Operating Budget $45,553,025 $45,366,027 $47,350,699 $ 49,747,886 $ 53,033,202

Departments:• Finance Responsible for accounts payables and receivables, financial reporting, pay and benefits, operating and capital budgets, and financial internal controls.• Assessment and Taxation• Legislative Services Handles all aspects of Council and Committee meetings, records management, protection of privacy, legislative guidance, co-ordinates municipal census, and management of election process.• Purchasing• Facility Maintenance Takes care of maintenance and repair of all City facilities. • Fleet Services Manages all aspects of upkeep and care of City vehicles and equipment.• Information Technology Services

CITY MANAGER2014 2015 2016 2017 2018

Operating Budget $2,903,523 $2,617,351 $2,771,681 $ 2,778,504 $ 2,854,578Service Area/Expenditure Amount PercentageCity Manager $1,652,671 1%

Community Growth $7,007,515 6%Community Living $27,713,956 22%Community Safety $45,854,980 37%

Corporate Services $1,878,894 2%School Levy;

Revenue forwarded to the Province/School Boards

$18,457,694 15%

Capital Projects; Funds used to maintain

or improve City infrastructure such as roads or bridges

$7,968,898 6%

Debt Servicing $14,276,089 11%

Revenue Source Amount PercentageConcessions & Franchises $10,437,140 5%

Grants & Transfers $4,150,626 2%Interest on Investments $4,997,101 3%

Other Revenues $13,122,102 7%Property Tax $124,930,683 64%

Transfer from Reserves $5,885,000 3%User Fees $30,131,172 16%

Departments:• City Manager and Mayor’s Office• Human Resources• Organizational Development Conducts impartial internal business reviews to ensure maximum value, with a focus on value for money and efficiency.

COMMUNITY GROWTH2014 2015 2016 2017 2018

Capital Budget $4,264,334 $255,000 $340,000 $155,000 $335,000Operating Budget $7,737,224 $8,211,864 $8,272,906 $8,493,312 $8,614,443

Departments:• Economic Development, Land and Web Management Assists in processes that enhances the economic diversity of the region while improving the quality of life.• Communications and Citizen Engagement Corporate messaging, citizen engagement, social media, media relations, the Citizen Contact Centre operations, as well as brand management.• Revolution Place• Planning and Development Manages all aspects of statutory land use plans and policies, and amendments to non-statutory planning documents, as well as, reviewing and deciding on all major/minor development applications, and issuing development permits.• Environmental Stewardship Advocates and provides education about environmental initiatives in the City and region.• Geographic Information Systems

COMMUNITY SAFETY2014 2015 2016 2017 2018


Departments:• Engineering Oversees expansion and replacement of new infrastructure such as sidewalks, roads, bridges, and the storm drainage system, as well as, monitoring and managing of traffic control.

• Transportation Services Responsible for snow removal and maintenance of roadways, traffic control systems, and storm drainage systems.• RCMP• Bylaw Enforcement• Fire Services• Crime Prevention Administers a variety of programs and initiatives to recognize, address and reduce crime.• Inspection Services Responsible for issuing permits and scheduling inspections for building, plumbing, gas, electrical, HVAC, and lot grading.• Emergency and Disaster Planning

COMMUNITY LIVING2014 2015 2016 2017 2018


Departments:• Community Social Development Connects people to community resources, engages individuals and groups to address community social issues like homelessness, youth services and affordable housing.• Transit• Aquatics and Wellness Eastlink Centre, Leisure Centre, and Bear Creek Pool.• Culture and Heritage• Sports and Recreation• Parks Operations

Preferred Future

We are an innovative centre of excellence and a hub for business incubation. We continually seek out best practices. We understand the evolution of our region and are willing to take risks in order to find solutions that will benefit the residents of our communities. We maximize the use of land through creative design strategies.

City Council’s Strategic Directions- Explore alternate governance models- Explore best practices and models- Balance residential and non-residential development- Develop residential infill strategies

Corresponding Budget Highlights• $10,000 to the Volunteer Services Bureau for a youth related program• $150,000 over four years for City website development• $6,100 additional per year for Legion Remembrance Day ceremonies• $50,000 will be funded annually for Nitehawk operations• $450,000 per year for the Playground Replacement Annual Program

COUNCIL FOCUS AREA 2: EXPLORING NEW DIRECTIONS

COUNCIL FOCUS AREA 1: OPTIMIZING EXISTING SERVICES

Preferred Future

The City of Grande Prairie meets community needs by providing well-integrated services that efficientlyand effectively maximize the use of our resources. We have undertaken a community needs assessment tobetter understand those community needs. We continually refine how we provide services and strive for bestpractices. We leverage performance through the use of a well-educated and informed staff.

City Council’s Strategic Directions- Explore opportunities to partner in municipal service delivery- Partner with community groups- Explore issues around affordability- Enhance tourism

Corresponding Budget Highlights• $25,000 in additional funding each year for the Parks Improvement grants• $150,000 in four-year budget for the Low Income Recreation Access Program, up from $90,000• $12,000 added to the sponsorship budget• $22,500 from 2015-2017 for Technical Search and Rescue, with an increase to $25,000 in 2018• $5 million for City Service Centre renovations• $340,000 for refurbishment of the Wee Links golf venue• $117,000 in 2015 and $116,000 in 2016 funding for Nitehawk• $400,000 for construction of a new baseball diamond in South Bear Creek Park in 2016• $300,000 over four years for Muniportal replacement and modernization• $125,000 in 2016 for Online Service Request system replacement

COUNCIL FOCUS AREA 3: CAPITALIZING ON GROWTH

COUNCIL FOCUS AREA 4: STRENGTHENING OUR CORE

Preferred Future

We are adaptable to growth and change. We take advantage of trends and build on the current momentum to attract development. We have a well-developed small business and retail base. Residents realize value for their taxes. We have a young diverse community that is engaged in creating the city that people choose to live in. Infrastructure is well maintained and meets the needs of the community. Opportunities for education allow students to remain in the city. Growth maximizes infrastructure and reduces the impact on the environment.

City Council’s Strategic Directions- Ensure planning considers full spectrum of services provided by the City- Use best practice models to take advantage of industry trends- Invest in infrastructure to meet burgeoning demand and future needs- Increase the length and depth of our planning documents in order to better prepare for the future

Corresponding Budget Highlights• $5.5 million - 92 St. twinning (100 Ave. to 116 Ave.)• $6.75 million - 68 Ave. twinning (108 St. to Poplar Dr.)• $60,000 in 2016 for a boom lift purchase at Revolution Place • $400,000 - Bear Creek Corridor Study• $2.1 million in 2017 and $2.19 million in 2018 in operations funding for the re-opening of the Leisure Centre

aquatics programming• $110,000 a year in Grande Prairie Youth Shelter funding• $2.7 million in funding for 12 additional RCMP officers over the next four years

Preferred Future

Grande Prairie has a vibrant urban core that meets the needs of residents and visitors. As an all-season, multi-purpose neighbourhood, our downtown is a defining element of the city. It is a pedestrian friendly, accessible gathering place, well served by transit. Downtown is an active, attractive and inclusive focal point for the community. Our city centre is a place where people live, work and play.

City Council’s Strategic Directions- Develop a vision and plan for an energetic downtown- Enhance community mobility- Promote residential development- Explore alternative models of land development

Corresponding Budget Highlights• $2 million - Montrose Greenway Concourse• $20 million - Downtown rehabilitation and streetscape upgrades• $75,000 - Jubilee Park enhancements• $400,000 - Transportation Master Plan• $600,000 a year for new sidewalks and pathways• $150,000 a year for crosswalk and intersection improvements

2015 - 2018 budget report

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