Context Report and Long Range Financial Plan

E D M O N T O N
Context Report
and
Long Range Financial Plan
Presentation to City Council
May 11, 2004

E D M O N T O N
Index
Report summary 3
2005 Business plan and budget process 4
Plan Edmonton 5
Planning environment 6
Well managed, competitive city 7
Progress with other orders of government 13
Edmonton’s Growth 14
Long Range Financial Plan 15
Opportunities and choices 25
Priority areas for service issues 26
Next steps 27
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Report summary
• Information report: no decisions today
• Review by Council committees: May, June
• Committees to recommend guidelines to
Council
• Recommended guidelines to Council June 15
• Council decisions June 24
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
2005 business plan and budget process
7
News Releases, Web-site, Citizen Action Centre, Advertising, Edmonton This Quarter
Citizens and
Stakeholders
(Communication
and Input)
Citizen and
Stakeholder
Written
Submissions
Results of ‘03
Community
Dialogue Session
and Citizen
Satisfaction
Survey
Web-Survey
Results
Public Forum
(Nov 22/23)
Mall/Library
Sessions
(mid-late Nov)
1
Council and
Committees
TODAY
Four Pillars (Mar 22,
Four
Apr
Pillars
15, May
(Mar
10,
22,
Apr
May
15, May
20/21)
10,
May 20/21)
Review Budget and
3 Receive 4 Review
Service
Budget
Delivery
and 5
Receive
Updated Service
Guidelines
Delivery
Updated
at
Context
Guidelines
Committees
at
Context
Report
(May
Committees
Report
14, 17, 19
(May 11) (May
June
14,
2,
17,
3,
19
(May 11)
4)
June 2, 3, 4)
Wrap Up
Wrap
(Jun
Up
17)
(Jun 17)
Receive
Committee
Receive
Recommended
Committee
Recommended
Guidelines
Guidelines
(Jun 15)
(Jun 15)
5
Approve
Approve
Budget and
Budget and
Service Delivery
Service Delivery
Guidelines
Guidelines
(Jun 24)
(Jun 24)
6
Receive
Receive
Proposed
Proposed
Business Plans
Business Plans
and Budget
and Budget
(Nov 4)
(Nov 4)
8
Approve
Approve
2005 Budget
2005 Budget
and 3 Year
and 3 Year
Business Plans
Business Plans
(by Dec 15)
(by Dec 15)
2
Savings Strategies (interface with Council as results available)
Administration
Update
Context
Report
Develop
2005 Budget
and 3 Year
Business Plans
Context Report and 9 Long Review Range of Financial budget-related Plan policy issues May through 11, 2004 Committees (by Jun 24)

E D M O N T O N
Plan Edmonton: the source of direction
Economic
Development
Leadership and
Regional Development
Services to People
Quality
of Life
for
Residents
Infrastructure Development
and Maintenance
Planned Growth
Organizational
Excellence
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Planning environment
• Well managed, competitive city
• Progress with other orders of government
• Operating and capital gaps persist
• Opportunities and choices
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Well managed, competitive city
City spending
($millions)
1000
800
600
400
200
0
39.5%
23.7%
-5.4%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Budget
Actual Adjusted for Population Adjusted for Population and Inflation
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Well managed, competitive city
Staff per capita
12000
16
Full-time Equivalents
10000
8000
6000
4000
2000
11.5% decline in
FTEs per capita
15.5
15
14.5
14
13.5
13
FTE/1000 Population
0
12.5
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Total FTEs
FTEs per capita
Context Report and Long Range Financial Plan May 11, 2004

4216 4303
Ottawa
Toronto
Brampton
Regina
E D M O N T O N
Well managed, competitive city
Property tax and utility rates
5,000
4,500
4,000
3760 3810 3861 3931 3974 4037 4061
3,500
3041 3074 3132 3143 3192 3247 3287 3322 3337 3453 3506 3514 3619 3637
3,000
2,500
2,000
2803
2683
Dollars
1,500
1,000
500
Hamilton
Grande Prairie
Victoria
Medicine Hat
Red Deer
Fredericton
Surrey
Burnaby
St. John's
Calgary
Lethbridge
Laval
Saint John
Halifax
0
Vancouver
Winnipeg
EDMONTON
Montreal
Kitchener
Saskatoon
London
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Total tax revenue growth, 1990-2002
Adjusted for population, inflation
20
15
16.1
10
9.7
5
2.6
0
-5
Federal
Provincial
Calgary
-2.7
Edmonton
Source: Canada West Foundation,
presentation, March 22, 2004
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Well managed, competitive city
Edmonton household spending
Clothing
4%
Household Operation
4%
Shelter
16%
Insurance & Pension
Contribution
Recreation
5%
7%
Other
17%
Food
10%
Context Report and Long Range Financial Plan May 11, 2004
Transportation
15%
City
Property
Tax
1%
Provincial
Income Tax
6%
Federal
Income Tax
15%

Importance Rating
Well managed, competitive city
5.0
4.0
3.0
2003 Citizen
Satisfaction
Survey
Primary areas for
improvement
11
12
13
15
16
Note: Quadrant axes set at 3.7 mean
satisfaction rating, 4.1 mean importance
rating
2.0 3.0 4.0 5.0
5
14
17
21
19
22
10
Satisfaction Rating
1
18
9
6
4
3
8
20
2
7
1. Police Services
2. Fire Rescue
3. Emergency Medical Services
4. Public Library
5. Public Transit
6. Garbage & Recycling
Collection
7. Parks & Green Spaces
8. Recreational Facilities
9. Recreational Programs
10. Sewer Services
11. Winter Road Maintenance
12. Summer Road
Maintenance
13. Rush Hour Traffic Flow
14. Economic Development
15. Assessment & Taxation
16. Subsidized Social Housing
17. Social Programs &
Services
18. Community Development
19. Permit & Inspection
Services
20. Attractions
21. Land Use Planning
22. Bylaw Enforcement

E D M O N T O N
Progress with other orders of government
Recent good news about new fiscal deal:
• GST rebate
• Police funding
• Ambulance
Work continues:
• Minister’s Council
• Prime Minister’s External Advisory Committee on
Cities and Communities
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Edmonton’s Growth
Growth creates service demands
• Economic growth
• Population growth
average 3.5 per cent/year to
2009
about 9,000 new people/year
• Population mix
sectors
• Service demands
75 years-plus, “at risk”
growing
Basic services, income gap,
affordable housing,
homelessness
Context Report and Long Range Financial Plan May 11, 2004

Long Range Financial Plan
E D M O N T O N
Operating and capital gaps continue to grow
$600
$500
(millions)
$400
$300
$200
$442
Capital
$100
$295
Operating
$157
$0
$38
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Operating projections
$1,600
$1,500
$1,400
$1,300
Service
Issues
$157M
(Millions)
$1,200
$1,100
Gap $38
Revenue
$1,000
2004 Recosted Expenditures
$900
$800
$700
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Increasing reliance on property tax
100%
80%
24%
User Fees, Fines, Permits (share drops 4%)
20%
60%
51%
Tax Revenues (share increases 7%)
58%
40%
20%
25% Other Revenue (share drops 3%)
22%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Realty assessment growth
Assessment ($B)
2.500
2.000
1.500
1.000
0.500
3 Year Average Value of
Real Growth $1.5 B
+4.7% ($16 M)
+3.6% ($14 M)
Projected
Actual
0.000
2001 2002 2003 2004 2005
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Other revenue sources
Proportions relatively flat over time
100%
90%
80% 43%
Epcor Dividends (share increases 2%)
45%
70%
60%
50%
23%
40%
Franchise Fees (share increases 2%)
25%
30%
20%
17% Other (share drops 5%)
12%
10% 10% EdTel (no change)
10%
7% Investments (share increases 1%)
8%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Service issues
$250
$200
Other & support to external agencies
New service
Infrastructure maintenance
Growth
(millions-tax levy)
$150
$100
$256
$50
$44
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
10-year capital plan
($ millions)
900
800
700
600
500
400
300
200
100
0
Infrastructure Gap $4.1 billion
Funded Capital Plan $3.0 billion
2004-13
LRFP
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
2005-2014 funded investment ($3.0B)
Other
11%
Planned
Growth
30%
Infrastructure &
Physical
Environment
59%
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
2005-2014 unfunded investment ($4.1B)
Other
2%
Infrastructure &
Physical
Environment
37%
Planned Growth
61%
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Capital financing (funded)
Tax Supported
Debt
400
350
Federal
Infrastructure
Program
Grants
Developer
(Partnership)
Local Impr./ Other
300
($ millions)
250
200
150
100
50
Fuel Tax Rebate
Debentures
Reserves
Retained Earnings
General Financing
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
External
Funding
(37%)
Internal
Funding
(63%)
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Opportunities and choices
Operating
• Property and business tax increase at MPI
• Tax base: real growth 3.6 per cent realty, 0.5%
business
• EMS tax levy reallocation to high priority service
issues
• Confirming police priorities
• $3.5 million savings
Capital
• One per cent for tax-supported borrowing
• GST to capital projects
• General financing pool increase @ Construction Price
Index*
*Non-residential
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Priority areas for service issues
Major priorities for civic programs include:
• growth demands
• environmental concerns
• service sustainability
• corporate events commitments
Context Report and Long Range Financial Plan May 11, 2004

E D M O N T O N
Next steps
• Special Community Services Committee
meetings: May 14 and June 2
• Special Transportation and Public Works
Committee meetings: May 17 and June 3
• Special Executive Committee meetings:
May 19 and June 4
• Council meetings: June 15 and June 24
Context Report and Long Range Financial Plan May 11, 2004