to: mayor and councillors from: administration · 12/2/2019 · page 1 of 2 camrose arts council...

TO: Mayor and Councillors

FROM: Administration

NOTICE OF

COMMITTEE OF THE WHOLE COUNCIL MEETING C-19

LOCATION: City Hall Council Chambers

DATE: Monday, December 2, 2019

TIME: 2:00 PM Page

A. ADOPTION OF AGENDA: 1. Adoption of Agenda (Addition: Attachment to B-3 - Financial Details

Appendix; C-4, and C-5).

B. AGENDA ITEMS: 1. Camrose Arts Council - Annual Report.

3 - 6

2. 2019 Toilet Rebate Program - Year End Summary.

7 - 15

3. 2020 Budget Update.

16 - 24

4. Council Committee Updates from Council Members (Verbal).

C. CLOSED SESSION: 1. Intermunicipal Development Plan Status - FOIP Section 24(1).

2. Recreation Agreement - FOIP Section 24(1).

of 24

Committee of the Whole - Monday December 2, 2019

3. Personnel - CUPE - FOIP Section 17(1).

4. Camrose Public Library - Personnel - FOIP Section 17(1).

5. Tourism Camrose - Personnel - FOIP Section 17(1).

D. ADJOURNMENT: 1. Adjournment of Committee of the Whole Council C-19 held December

2, 2019.

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City of Camrose

Administrative Report

To: Committee of the Whole Council Date: December 2, 2019 From: Legislative Services Coordinator Re: Camrose Arts Council - Annual Report RECOMMENDATION: That Council accept the report for information. BACKGROUND: Under Bylaw 2946-17 - Camrose Arts Council Grant Funding Bylaw, one of the responsibilities of the Camrose Arts Council is to manage the grant program and report annually to Council on the administration and distribution of funds. The Camrose Arts Council has provided the attached Annual Report. Valerie Sims, Chair, Camrose Arts Council, will be in attendance to present the Annual Report to Council. ATTACHMENT:

Camrose Arts Council Annual Report

SUBMITTED BY: Jenny Wallace Legislative Services Coordinator

AGENDA ITEM B.1.

Camrose Arts Council - Annual Report. of 24

Camrose Arts Council

5204 – 50 Street

Camrose, AB T4V 0S8

City of Camrose

5204 – 50 Street

Camrose, AB T4V 0S8

RE: 2019 Report to Council

Dear Mayor and Council:

Please find attached a report of the activities and grant funding done by the Camrose Arts Council in

2019.

Through Council’s ongoing support of the Camrose Arts Council, we are able to fulfill our mission to:

foster, champion and promote arts and culture by distributing grants, and encouraging collaboration in

order to weave a rich tapestry of life for the City of Camrose.

Sincerely,

Val Sims

Chair, Camrose Arts Council

AGENDA ITEM B.1.


of 2

Camrose Arts Council

2019 Report to Council

Background

The Camrose Arts Council was established in 2017 with the purpose of:

Advocating for a collaborative arts and culture community within the city; Informing City Council about arts and culture activities; and To act as a governing body to distribute grants as delegated by the “Arts Council Grant Funding

Bylaw” for arts and culture initiatives.

Current members of the Camrose Arts Council Board are: Valerie Sims, Chair Lisa Borin Miller, Vice Chair Laurel Warkentin, Secretary Judy McLean Tanya Pattullo PJ Stasko, City Councillor Agnes Hoveland, City Councillor Administrative Support: Jane Cherry-Lemire, City of Camrose Arts Director

Accomplishments

Since inception, the Arts Council has worked tirelessly towards realizing the recommendations brought

forth by the 2016 Arts and Culture Master Plan. During 2019 the Arts Council:

Met with Stephen Williams, Grant Director of Edmonton Arts Council to find out more about how

EAC distributes grants;

Met with City Administration to discuss the Arts and Culture Master Plan;

Had pictures printed in the Camrose Booster of 2019 arts and culture grant recipients;

Reviewed their Terms of Reference and grant policies; and

Distributed $31,780 in grant funding to arts organizations in Camrose.

Grant Funding

The establishment of the Arts and Culture Grant Funding has systemized the process of funding for arts

and culture organizations in Camrose, and ensures that all organizations and artists have equal access to

funding from the City.

The Camrose Arts Council had two grant application intakes in 2019 – March 30th and September 30th.

There were 12 applications received from 7 organizations, with a total of $45,855 in grant monies

requested. The Arts Council distributed $31,780 to support ten arts events and initiatives in Camrose.

(See tables on page 2.) The Arts Council did not distribute all of the grant monies available this year due

to some applications not meeting the eligibility requirements and criteria in full or in part.

AGENDA ITEM B.1.


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Impact of Camrose Arts Council Grants in 2019

In distributing grant funds, the Arts Council aims to strengthen the community by supporting arts events

that demonstrate community value, have clear project goals, a reasonable budget, and further the

development of the arts through innovation, outreach, or building an audience for the arts.

The impact of events supported by the Arts Council in 2019 included:

a display highlighting the stories of past and present cultures of the Battle River region as part of

the Battle River Lt. Governor of Alberta Awards festival;

an educational video documenting the history of the Bailey Theatre;

bringing indigenous artists to Camrose to showcase indigenous culture;

supporting emerging writers through the publication of Wheat & Laurel, a literary journal; and

making theatre accessible to all through a “relaxed performance” of About Time Production’s

“Joseph and the Amazing Technicolour Dream Coat”.

The projects funded in the September 2019 application intake will ensure that accessible and innovative

arts events and programming will take place in Camrose in 2020. These will include:

bringing free family events to Camrose that highlight arts and culture;

assisting youth in accessing programs to develop theatrical skills; and

encouraging and celebrating emerging musicians in the community.

March 2019 Grant Funding

Organization Event/Initiative Event Date Grant

Canadian Northern (Meeting Creek) Historical Society

“In Their Footsteps” exhibit September 2019 $4,320

Bailey Theatre Bailey Theatre Video Project May-September 2019

$2,600

Camrose Arts Society Culture Days September 2019 $3,000

Camrose Arts Society Indigenous Peoples’ Day June 2019 $1,000

Total: $10,920

September 2019 Grant Funding

Organization Event/Initiative Event Date Grant

Camrose Arts Society Arts & Recreation in the Park June 2020 $3,000

Camrose Arts Society Indigenous Peoples’ Day June 2020 $2,500

Camrose Kinsmen Club KinFest Family Fun Festival August 2020 $3,000

About Time Productions Removing Barriers for Children and Youth to Participate in the Arts

June 2020 $2,500

Camrose and District Music Festival

2020 Music Festival April 2020 $5,000

Bailey Theatre “Matilda” musical January 2020 $4,860

Total: $20,860

AGENDA ITEM B.1.


City of Camrose


To: Committee of the Whole Council Date: December 2, 2019 From: Director of Engineering – Infrastructure & Planning Re: 2019 Toilet Rebate Program – Year End Summary RECOMMENDATION: THAT City Council receives this report as information. BACKGROUND: In 2008, the City of Camrose initiated a program that provides rebates to Camrose residents and business owners when they replace older, high-volume toilets with new low-flow models. The toilet is one of the largest contributors of indoor water usage, representing approximately 30% of total water use in a typical home. The intent of this program has been to encourage water conservation within the City by reducing the amount of water used by the toilet. Since 2008, a total of 1,343 toilets have been replaced. Most of the participants in the annual program are homeowners or tenants of single-family homes. In most of those cases, the number of toilets being replaced per utility account is one or two. However, a few multi-family residential apartment buildings and commercial / institutional buildings within the City have taken part in the program over the years, resulting in a significantly higher number of toilets being replaced in those years. For instance, one rebate application in 2010 saw 46 toilets within a single condo building being replaced at the same time. Additionally, in 2019, the City received and approved a rebate application for 64 toilets within a commercial property. As part of the program, the City typically runs a number of advertisements on the local news media, directing people to the City’s website where additional information and application forms can be found. Physical copies of the application form, as well as a “checklist” detailing all the requirements of the program, were also available at City Hall for use. The annual toilet rebate program is coordinated with the help of seasonal engineering co-op students, with support from a variety of other individuals from within Engineering and Finance. As a wrap up of the 2019 toilet rebate program, the program coordinator prepared the attached program summary. A couple of notable points from the 2019 program summary include:

The City approved a total of 59 rebate applications, representing the replacement of 132 toilets in 2019 (68 toilets from various single-family residences, and 64 toilets from a single commercial property).

Administration estimates that the average household will reduce their household water usage by 29 cubic metres of water per year and save up to $56 per year as a result of taking part in the program. These numbers are based on figures provided by the Alliance for Water Efficiency (www.home-water-works.org/indoor-use/toilets).

AGENDA ITEM B.2.

2019 Toilet Rebate Program - Year End Summary. of 24

http://www.home-water-works.org/indoor-use/toilets

Collectively, the 1,343 toilets that have been replaced are saving approximately 33,761 cubic metres of water per year. This represents approximately 1.64% of the total treated water that the City produced at the water treatment plant in 2018 (2,056,100 cubic metres).

Despite the significant amount of advertising that took place over the past number of years, the number of toilets replaced by single-family residential homes has been lower between 2015 and 2019 compared to what was seen in the first few years of the program. This is likely due to a couple of reasons:

Program participants in the earlier years were homeowners who were already undertaking renovations to their washrooms, or environmentally conscientious individuals who wanted to reduce their household water usage aside from a planned renovation. As the program continues to operate, it is likely that the uptake of toilet replacements within single-family residential homes will reduce as the City moves beyond the “early adopters” and “early majority”, and into the “late majority” and “laggard” categories of individuals (to use standard technology adoption terminology).

While many single-family homeowners have taken part in the program over the years, only a few larger multi-family residential properties and non-residential properties have participated in the program. The City could spend additional effort in future years to encourage multi-family residential and/or non-residential properties to take part in the program. One of the ways of accomplishing this may be further promote the City’s water audit program, where a City staff member will attend a home or business and conduct a free assessment of the various water-using fixtures and appliances within the building, and provide recommendations as to potential water savings. The City has offered this audit program in the past, with limited uptake from Camrose residents and businesses.

MUNICIPAL DIRECTIVES:

One of the focus areas in the City’s 2018-2022 Strategic Plan is to ensure long-term water sustainability. As the City continues to explore and implement new water conservation initiatives, Administration expects that the City will be building those programs on the success of the toilet rebate program.

IMPLICATIONS OF RECOMMENDATION:

None at this time. Administration is reviewing the results of the 2019 program to determine what changes could be implemented into future years of the program.

ATTACHMENTS:

2019 Toilet Rebate Final Report SUBMITTED BY: Jeremy Enarson, P.Eng. Director of Engineering – Infrastructure & Planning

AGENDA ITEM B.2.


TOILET REBATE PROGRAM SUMMARY 2019

Prepared by: Emily Baum November 14, 2019

AGENDA ITEM B.2.


Background

The toilet is one of the largest contributors of water usage attributing to approximately 30% of total

indoor water use. As a part of the City of Camrose’s initiative to conserve water, the city has offered a

toilet rebate program since the summer of 2008. The City’s goal is to remove toilets with high flush

volumes (greater than 13 litres) out of circulation and replace them with toilets of a low flush volume

(less than 6 litres). The rebate program is an effective solution to cutting down water usage as it does

not require active participation from the residents beyond replacing the old toilet.

Application Process

The toilet rebate program has continued to be run from July –September since the start of the

program. In order for an applicant to the eligible for the program, they must meet certain criteria. The

applicants’ toilet must have a flush volume of 13L or more and must be replaced with an approved

toilet with a flush volume of 6L or less and a MaP score (the number of grams of solid waste that a

particular toilet can flush and remove completely from the fixture in a single flush) greater than 300g.

The applicant must also provide pictures of the old toilet before installation, a picture of the old toilet

destroyed, and a picture of the new toilet installed along with the receipt. The purpose of the process

is to confirm that the old toilet is no longer connected to the Camrose water infrastructure. Once all

the requirements are met, the applicant qualifies for rebate of $70 on the first toilet and also receives

25% of the cost of any additional toilet replacements (up to $50/toilet).

Summary

The city received 59 applications from homeowners, tenants, and business owners. Of those, all 59 of

the applicants were successful, collectively replacing 132 high volume toilets. The replacement of

these toilets alone will save over 2,850 cubic metres (m3) of water per year and is estimated to save

the average household 29 m3 of water and around $56 on their utility bill per year.

Since 2008, the program has replaced a total of 1,343 toilets which saves over 33,761 m3 of water

annually. Collectively, the residents that participated in the toilet rebate program since 2008 will save

$64,787 on utility bills this year, which is $56 per household.

AGENDA ITEM B.2.


Toilet Rebate Statistics

Figure 1 displays the amount of water collectively saved each year since 2008 as higher volume toilets

are replaced with higher-efficiency models.

Figure 1: Water Conserved Annually

Assumed that each household flushes a toilet 11.5 times a day for 365 days a year.

Assumed 7 litres of water is saved every flush

The formula is the following: (# of households) *(# of flushes in a household per day) *(m3 saved per flush)*(# of days in year)

It is important to note that the formula was altered in 2019 to take into account the increased use of

toilets in a Hotel. In this case, each public toilet was considered its own “household” due to increased

use in public spaces. It was also assumed that the hotel had 65% occupancy, so out of the 36 private

toilets purchased, only 23 were considered its own “household”. Therefore the total number of

“households” used in 2019 was 97.

793

4,760

10,754

13,398

17,071

19,422

23,271

25,445

27,56129,559

30,911

33,761

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Wat

er C

on

serv

ed (

m3 )

Year

Water Conserved Annually

AGENDA ITEM B.2.


Figure 2 shows the total amount of water saved since the program started in 2008.

Figure 2: Total Amount of Water Conserved

793 5,55316,307

29,705

46,776

66,198

89,469

114,914

142,475

172,034

202,945

236,706

0

50000

100000

150000

200000

250000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Wat

er C

on

serv

ed (

m3)

Year

Total Amount of Water Conserved

AGENDA ITEM B.2.


Toilets Replaced Per Year

Figure 3 shows the amount of toilets that have been replaced per year. Looking at the trend, the

number of toilets replaced per year was much higher between 2009 and 2014, than between 2015

and 2018. A possible theory to explain the trend is that in the later years, fewer people had high

volume toilets to replace. It is also important to note that the sharp increase in the number of toilets

replaced in 2019 is due to the replacement of 64 toilets within a single commercial property. If those

toilets are subtracted from 2019’s total, the number of toilets replaced would be of a similar amount

to the 2015 – 2018 range.

Figure 3: Toilets Replaced Per Year

27

135

204

113

168

118131

89 92 87

57

132

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Toile

ts R

epla

ced

Year

Toilets Replaced Per Year

AGENDA ITEM B.2.


Money Saved per Year from Toilet Rebate Applicants Figure 4 shows the amount of money saved per year in utility fees by toilet rebate applicants. This is

the main incentive for most applicants, and as the number of successful applicant’s increases, it will

greatly reduce water consumption and cost the City less money to upkeep water infrastructure.

Figure 4: Money Saved Per Year from Toilet Rebate Applicants

Each household saves approximately $56 per year after replacing a high flush model to low flush model These values are calculated using the water utility rate of that particular year

$1,110

$6,902

$16,023

$21,035

$28,679

$33,600

$41,678

$47,175

$52,890 $56,724

$59,318

$64,787

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mo

ney

Sav

ed

Year

Money Saved Per Year From Toilet Rebate Applicants

AGENDA ITEM B.2.


Figure 5 shows the total amount of money saved by applicants since the start of the program in

2008.

Figure 5: Money Saved Per Year from Toilet Rebate Applicants

Conclusions & Recommendations

In conclusion, the toilet rebate program was a success, replacing 132 toilets this year, and bringing the

total number of toilets replaced by the program to 1,343 since 2008. This saves approximately 33,761

m3 of water annually. This program has proven to be very successful in conserving water and should

be continued into the future.

Every year, a majority of the rebates have been given to single-family residential properties. It may be

ideal to look for opportunities for multi-family residential properties and for non-residential properties

such as schools and hotels which have several toilet units. This can be accomplished by offering free

water audits to businesses recommending ways to cut down on water usage as done in the past. This

program was called the Water Consumption Assessment program.

$1,110 $8,012 $24,036

$45,071

$73,750

$107,350

$149,028

$196,203

$249,093

$305,817

$365,135

$429,922

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mo

ney

Sav

ed

Year

Total Money Saved From Toilet Rebate Applicants

AGENDA ITEM B.2.


City of Camrose


To: Mayor and Council Committee of the Whole Date: December 2, 2019 From: Travis Bouck Re: 2020 Budget Update

RECOMMENDATION:

That this update report be accepted as information and that direction be given to administration

to proceed with preparation of budget as discussed.

SUMMARY:

City Council Finance Committee met from November 19 – 22, 2019 to deliberate the 2020 City of

Camrose Budget, the 2021-2022 Operational Forecast Budget, and the 10-year Capital Plan. As

a result of these deliberations, Council is recommending:

0% property tax impact;

1% water and wastewater utility fee increase;

In response to a $420,000 reduction in infrastructure funding from the Government of Alberta, an increase to the electricity franchise fee (from 10%-13%) and an increase to the natural gas franchise fee (from 25%-27%);

Increased transfers to capital during 2020 to replenish the General Capital Reserve; and

Commitment to upgrading and maintaining local control of the 911 emergency dispatch service.

BACKGROUND: The 2020 Budget Planning kicked off with an open house event for the public on May 8th, 2019 from 3:00 – 6:00 pm at City Hall. 280 members of the public representing less than 1.5% of the total population attended the session. The open house event allowed the City of Camrose to share information with the public in respect to City projects and services as well as engage the residents for input to be considered in the 2020 Budget. Of the 280 attendees, a limited number participated in completing the survey questions and/or providing information for further consideration. However, the general indications from the members of the public that did attend and did participate was as follows:

Property taxes are thought to be high

Utility rates are thought to be comparable to other places

Quality of service is above average

AGENDA ITEM B.3.

2020 Budget Update. of 24

Municipal services received are above satisfactory and/or excellent value

Areas where there was some indication that increased service levels would be preferred were:

Bylaw enforcement

Sidewalk maintenance

Areas where there was some indication that service level decreases would be preferred were:

Golf course services

Airport services

Budget Planning Meeting

The Finance Committee held a meeting on July 15, 2019. The meeting focused on providing direction for the 2020 Budget process based upon service level increases and/or decreases combined with the current financial status of the City of Camrose.

The meeting provided information with respect to the projected municipal levy with no changes to the current service level. It also included the impacts of union agreements in effect and impacts of salary growth for non-union staff as well as inflationary impacts on other general operating costs. Information was also presented outlining the current capital plan, government funding and debt levels of the City and the uncertainty surrounding provincial and federal capital funding.

In summary, Administration was directed to examine and review a number of areas which would have an impact on the 2020 Budget:

Sidewalk maintenance

Airport – short-term and long-term options

Golf Course – short-term and long-term options

Summer staffing levels

Service Level Decrease

At the September 16th Council Meeting, Council passed a motion requesting that administration provide options around service level decreases for the budget process. This request was in

response to the July 15th Committee Meeting discussions, low growth projections, ongoing infrastructure needs, and anticipated provincial funding cuts.

Internal Budget Submissions and Discussions

Internal meetings with all City departments represented by respective General Managers / Directors were held October 14 – 25, 2019. Each department presented their detailed operating budget and plan for 2020 – 2022 as well as their capital plan for the 2020 – 2029. In addition, each department provided a listing of potential service level reductions for consideration.

Upon the conclusion of all departmental budget meetings, Administration was able to evaluate and revise to the proposed budget and potential service level reductions.

Finance Committee – 2020 Budget Meetings

The Finance Committee met on November 19 – 22, 2019 to evaluate the draft budget prepared by Administration. The meetings included information related to:

AGENDA ITEM B.3.


The operational budget for 2020 and the forecasted operational plan for 2021 and 2022

The capital budget for 2020 and the capital plan for 2021 – 2029

The current and projected financial position of the City of Camrose including projected reserve balances, provincial and federal government funding and debt levels

The Finance Committee of the City of Camrose Council heard presentations from every City department. Administration advised Council that the reductions in infrastructure funding from the Government of Alberta for 2020 are estimated to be $420,000 and are expected to reach $1,139,000 per year by 2022. In addition, other changes included within the provincial budget with respect to increasing the provincial portion of fine revenue, reducing the property tax rate applicable to provincial buildings and other increased costs for municipalities will effectively increase the City’s operating deficit by $210,000 in 2020 and $280,000 in 2021 and every year thereafter. Administration prepared 40 service level decrease options that spanned the organization in their impact. On November 22, 2019, Council provided direction to administration around various options with budget impacts. Council requested administration prepare the finalized budget with the following options included:

Property Tax Rate: Council is proposing a 0.0% property tax increase for the 2020 budget. This was made possible through efficiencies and service level decreases throughout the organization, delaying of some projects, and increasing franchise fees to be aligned with comparable municipalities. Even so, Council was able to direct $1.7 million into the General Capital Reserve to replenish the reserve.

Utility Rates: A 1% increase to water and waste water utility rates is proposed as part of this budget. Utility rate revenue is retained and utilized only for utility operations, infrastructure maintenance, and improvements. These funds cannot be utilized for general operational funding.

Franchise Fees: Council reviewed comparator municipalities to evaluate Camrose’s Franchise Fee competitiveness. Council is increasing the Franchise Fee for electricity from 10%-13% and the fee for Natural Gas from 25%-27%. This puts Camrose under the 50th percentile among comparators for electricity and slightly over the 50th percentile for natural gas and keeps the City competitive in the region. The main driving factor for franchise fee increases was a $420,000 reduction in provincial grant funding which will increase to over $1.1 million by 2022. Franchise fees are applicable to all users in the City, rather than a tax rate increase that only affects 86% of users. The revenue generated from the Franchise Fee increase will be transferred to the General Capital Reserve to replace the grant and funding reductions from the province.-

Capital Plan Reductions: Total spending within the 10-year Capital Plan for 2020-2028 was reduced by $3 million over projections from 2019 by downsizing, removing, or delaying some projects.

Service Level Reductions: o Reduction in frequency of mowing to various areas across the City including park

spaces, the airport, and the golf course o Reduce landscaping activities in various areas of the City including flowerbeds,

stump grinding, and major storm clean up

AGENDA ITEM B.3.


o Golf Course: Combined grounds and pro shop manager position reducing availability for golf pro lessons, restaurant operated by outside contractor, beverage cart service on a limited basis

o The Museum will only open during the summer tourist season.

Local 911 Commitment: The City is committed to maintaining 911 as a local service and, as such, is continuing to investigate the impacts and operational preparedness for technology changes in the 911 system.

Community Organizations and Committees Funding: The City recognizes the importance of all of Camrose’s committees, non-profit organizations, and service groups, however under the current fiscal restraints some groups have seen a reduction or elimination of funding.

IMPLEMENTATION OF RECOMMENDATION: Administration will prepare the complete finalized budget for approval at the December 16, 2019 Regular Council Meeting. SUBMITTED BY:

Travis Bouck General Manager Finance

AGENDA ITEM B.3.


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City of Camrose

2020 BUDGET UPDATE – FINANCIAL DETAILS APPENDIX 2020 Draft Budget – Reducing Operational Deficit and Increasing Transfer to Capital The 2019 budget forecasted for 2020 a $24,288k operational deficit (prior to transfers to capital). Based upon direction from Council, Administration presented a 2020 draft budget to the Finance Committee on November 19, 2019 containing a $22,868k operational deficit. The Finance Committee considered the additional options provided and directed Administration to make changes to further reduce the 2020 budgeted operational deficit to $21,866k.

In conjunction with the reductions in the operating deficit, the Finance Committee has directed Administration to increase the transfers to capital in order to replenish the General Capital Reserve which has been utilized for a portion of the increased construction costs of the Aquatic Center.

$20,500,000

$21,000,000

$21,500,000

$22,000,000

$22,500,000

$23,000,000

$23,500,000

$24,000,000

$24,500,000

2020 Forecast 2020 Budget - 1st Draft 2020 Budget - Finance Committee

2020 Budgeted Operational Deficit

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2020 Forecast 2020 Budget - 1st Draft 2020 Budget - Finance Committee

2020 Budgeted Transfer to Capital

AGENDA ITEM B.3.


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Change from November 22, 2019 Finance Committee Meeting: On November 22, 2019 Administration estimated the impacts of the changes on the 2020 budget and the estimated 2020 operational budget. Since November 22, 2019 Administration has had the opportunity to review the changes to ensure that the final budget to be presented for approval by Council on December 16, 2019 are correct. Upon review, the revised budget is noted as below with the changes from the November 22, 2019 estimates shown. 2020 Budget 2021 Forecast November 22: Operational Deficit $21,862k $22,909k December 2: Operational Deficit $21,866k $22,794k Difference +$4k -$115k The main difference between the November 22, 2019 estimate and the revised draft budget for 2020 is due to a change in the funding of the Camrose Public Library (CPL). The CPL has informed the City of Camrose that the budget request will be less than originally requested. The amount requested has been evaluated and Administration has updated the budget to reflect the 5% service level reduction consistent with Council’s previous direction to the revised amount requested by CPL. Total impact from November 22, 2019 is a decrease of funding to the CPL by approximately $45,000 to a new total of $578,000 for 2020. Other small variances related to changes identified during the budget meetings offset the CPL funding decrease resulting in no material impact on the November 22, 2019 version of the 2020 operating budget. Budget Highlights

PROPERTY TAX RATES

There is a 0% property tax impact proposed within this budget. This freeze on property taxes has been made possible even with lower growth than anticipated, the opening of a new aquatic facility and reductions to provincial operational funding as a result of the following:

Eliminating historical budget conservatism which generated significant surpluses

Service level reductions throughout the organization

Operational efficiencies identified throughout the organization

Staffing level decreases due to organizational changes and unfilled vacancies

Although the overall property taxes have not changed, it is likely that property owners will see some change on their property tax bill as a result of changes in assessed value. To generalize, if a property owner owns a property that increases in value compared to all other properties, that property owner will see an increase on their property tax notice in 2020. If a property owner sees a reduction in assessed value in comparison to all other properties, they would generally see a decrease on their property tax notice in 2020.

SALARY AND BENEFITS

Salary and benefits account for almost 50% of the City’s total general operating budget. During the budget review a number of potential service level reductions were evaluated. The service level

AGENDA ITEM B.3.


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reductions which will be implemented during 2020 have been made possible by organizational changes implemented during late 2019, existing vacancies that will not be filled and a reduction of seasonal staff throughout the organization. In addition, the annual compensation for staff has been reviewed; the following is a brief summary of the union agreements in effect and the assumptions included within the budget for non-union staff:

Mayor and Council – Effective 8.6% Reduction

In 2017, an independent study was completed and found that the Camrose City Council was significantly underpaid comparable to other communities. The community committee recommended a significant increase to annual compensation to the council members (excluding the Mayor). In order to catch up with other communities, their recommendation was for an annual 10% + CPI increase for a period of 4 years. Council decreased this amount to an annual 5% +CPI increase for a period of 4 years.

As per direction from Council, the 2020 draft budget contains an elimination of the planned ~ 6.6% (5% + CPI) increase in addition to a 2% rollback.

Grid adjustment – no adjustment for recommended 5% annual increase or 2% CPI increase

Rollback – 2% rollback

Non-union – Wage Freeze

In addition to the decrease of 4 positions within non-union staff, the 2020 draft budget contains a salary freeze for non-union staff during 2020:

Grid adjustment – 0% - no adjustment to grid for market review or cost of living adjustment (COLA)

Step Increase – 0% - no step increases for staff

Hiring Constraints –positions becoming vacant in 2020 will be under increased levels of scrutiny

Union – Canadian Union of Public Employees (CUPE) – Under Negotiation

The current CUPE union agreement expires December 31, 2019 and negotiations begin on December 3, 2019. As a result no additional information can be disclosed at this time.

Union – Camrose Police Association – As Per Agreement

The Police have an agreement in place until December 31, 2020. The agreement stipulates a 1.25% increase to their grid on January 1, 2020 and another 1.00% increase on December 31, 2020. No changes to the current agreement are included in the draft 2020 budget.

Casual / seasonal staff In summary, the following number of casual staff will be reduced in 2020 in comparison to 2019:

Public Works – 6 summer employees

Facilities – 2 summer employees

Parks – reduction from 17 to 16 weeks for summer employees

Parks – 6 summer employees

Engineering – 2 traffic counting positions

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Golf – 1 summer grounds employee

Golf – general reduction in pro-shop / restaurant casual staffing

Museum – general reduction in casual staffing

Utilities – 2 summer employees

AQUATIC CENTER – FUNDING, OPERATIONAL HOURS

The aquatic center is anticipated to be open to the public in mid-September, 2020. The new aquatic center will provide the residents of the region with a significant increase in service level with two basins including a competition pool, lazy river, accessible hot tub and steam room. The opening hours are expected to be similar to the opening hours of the previous aquatic center; however, due to the size and layout of the new aquatic center the hours available for the public to enjoy the facility will increase significantly. Please see the attached draft schedule for operating hours of the new aquatic center.

The anticipated total cost of the new aquatic center remains at $24 million. The construction project remains on time and within the expected revised budget. The annual operating deficit of the new facility will be approximately $1.2 million in comparison to $0.5 million while operating the previous aquatic center.

Plans are in place to begin significant recruitment of lifeguarding and administrative staff. Administration is expecting to hire 3 full time head life guards and up to 50 part-time casual guards.

FRANCHISE FEES

The Alberta provincial budget was released in October, 2019. One of the areas where funding was reduced was with respect to infrastructure funding. This infrastructure funding is currently granted to the municipalities within Alberta through the Municipal Sustainability Initiative (“MSI”) and the Basic Municipal Transportation Grant (“BMTG”). The Alberta government plans to replace the MSI and the BMTG with a new program – the Local Government Fiscal Framework (“LGFF”).

The change from MSI and BMTG to LGFF will reduce the amounts the City of Camrose receives by approximately $1.1 million per year from 2022. The reduction will be implemented over the period 2020 – 2022 with an expected reduction of $420,000 in 2020.

The City of Camrose depends upon the funding received to complete large infrastructure projects – road construction, sidewalks, swimming pools, hockey rinks, buildings and many other items. As a result, the City has decided to increase franchise fees on both electricity and natural gas to offset the provincial funding reduction in order to ensure that the infrastructure within the City does not deteriorate significantly.

The City of Camrose reviewed comparator municipalities to evaluate Camrose’s Franchise Fee competitiveness. The budgeted increase from 10% to 13% for electrical and from 25% to 27% for natural gas franchise fees puts Camrose below the 50th percentile among comparators for electricity and above the 50th percentile among comparators for natural gas.

With a proposed 3% increase to the franchise fees for electricity, the average homeowner will see a $23.76 increase to their bill annually. With a proposed 2% increase to the franchise fees for natural gas the average homeowner will see a $10.90 increase to their bill annually. Combined, the annual impact for the average homeowner is $34.66.

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UTILITY RATES

During the period 2011 – 2016 the City of Camrose was required to raise utility rates on water and waste water by a total of 24% in order to fund significant capital projects such as a new waste water treatment facility which is currently in the design phase. From 2017 – 2019 no increases have been made to these rates. As the City evaluates the continuing underground infrastructure deficits and other potential significant capital projects in the future, the City is proposing a 1% increase to both the water and waste water utility rates to avoid large increases in the future.

With the projected 1% increase the average homeowner will see a $10.55 increase to their total water and waste water bill annually.

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to: mayor and councillors from: administration · 12/2/2019 · page 1 of 2 camrose arts council...

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