11 months ago

Long Range Financial Plan



Background Purpose Long-term financial planning combines financial forecasting with strategizing. It is a highly collaborative process that considers future scenarios and helps governments navigate challenges. The City of Mississauga’s LRFP is not intended to replicate the detailed Business Plan & Budget documents. It is intended as a major tool to set financial policies and help ensure the City remains in a strong financial position. The strength of a long-range financial plan lies in its connectivity with a corporation’s business planning and budget cycles. A long-range financial plan will guide the City in delivering its important services such as maintaining critical public infrastructure like roads, bridges, sidewalks, community centres, swimming pools and other programs which the City residents have come to rely on. Linking the LRFP into the annual budget process leads to more effective budgeting. Development of the LRFP helps identify potential funding gaps and provides strategies aimed at improving financial sustainability. Mississauga’s LRFP provides a 10-year projection of the City’s expenditures and revenues as they influence the operating and capital budgets of the City. It also examines the impacts on the City’s debt management practices, reserve and reserve fund balances and continued infrastructure investments. The City reflects a strong financial position with sound practices, manageable debt, prudent fiscal practices and a AAA credit rating as awarded by Standard & Poor’s Credit Rating agency. Notwithstanding these significant and strong attributes, the City of Mississauga still faces future financial challenges. Insufficient and inflexible revenue-raising tools to assist in funding infrastructure and other longer term expenditures, depleting reserves and inconsistent capital financing from senior levels of government are just a few of the factors affecting Mississauga’s financial future. Pressure to keep taxes low is also paramount in a volatile competitive economy. The LRFP is a key step the City has taken to ensure the City’s stable long-term financial future. The results of a recent budget public engagement process and Environics survey clearly demonstrate that citizens value City services. The LRFP will reassure Mississauga residents and businesses that Council and staff are taking a long-term, disciplined and integrated approach to managing and maintaining the City of Mississauga’s long-term financial condition so that these services can continue to be delivered in a cost effective manner. 8