2018-2022 Financial Plan

FINANCIAL PLAN OVERVIEW

Infrastructure Maintenance & Renewal

2017

2018

Increase

Annual Contribution

$5,145,000

$5,839,000

$694,000

Comments: We have a substantial infrastructure renewal/

maintenance deficit that we are starting to address. We do not have to do this and could continue to defer this item. Timely maintenance and renewal can help avoid larger expenditures later and that is why we recommend that we not defer this item.

Pay me now — Pay me later!

Fire Department

2017

2018

Increase

Annual Costs

$10,788,000

$11,161,000

$373,000

Comments: The largest portion of the increase in the Fire Department is related to the wages and benefits of the full time firefighters that are determined under a collective agreement. No additional personnel are included in the budget. For the department to hold the line in its increase, it would have to take one truck out of service which would reduce costs by $500,000. This is not recommended as our response times to calls for service will increase.

Further, the composite model that we have spent some time developing may be compromised. This increase differs from the Fire Department item in the Conceptual Overview of Expenditures chart due to $50,000 of growth funding reported separately.

Parks, Recreation & Culture

2017

2018

Increase

Master Plan Funding

$700,000

$1,168,000

$468,000

Comments: The Parks, Recreation & Culture Master Plan was adopted in 2010 through community consultation. There are a number of priorities in the plan that this funding could be allocated toward, the specifics of which will be determined by Council. We could push back the phased-in funding which would delay planning and implementation of those priorities. The 2018 funding includes the amounts needed for debt payments and operating costs for a number of Parks & Recreation projects approved in 2017. The final approval for these projects is subject to the approval of the electors. Drainage Improvements 2017 2018 Increase Annual Levy $995,000 $1,228,750 $233,750 Comments: Parts of the community have high potential for flooding and we have been trying to systematically make improvements to our drainage system. An increase of $233,750 was planned for 2018, but we do not have to do this. Contribution to Reserves 2017 2018 Increase Fire Department $1,925,000 $2,028,000 $103,000 Capital Works 830,000 920,000 90,000 Equipment Replacement 2,160,000 2,185,000 25,000 Comments: The City relies on Reserve Funds to manage large expenditures and the above-noted increases in contributions were planned for 2018. These systematic contributions allow us to deal with large Capital items without having to pass large tax increases on to our citizens. As Council is aware, detailed analysis on all of our reserves is done to make sure that the balance is adequate. We do not have to set aside this additional money into reserves, but reserves help us smooth the impact of larger costs over time and remove volatility in fees and charges.

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