COUNCIL MEETING ADDENDUM

Transcription

1 COUNCIL MEETING ADDENDUM December 3, :30 pm COUNCIL CHAMBERS 400 MAIN STREET SE Airdrie is a vibrant, caring community rich in urban amenities and opportunities for everyone. We value a healthy, sustainable environment connecting people and places. Pages 7. FINANCIAL POSITION Operating and Capital Budget (Lucy Wiwcharuk, Director, Corporate Services) Council is being presented with the Council Budget Committee recommended 2019 Operating and Capital Budgets for approval BYLAWS - Not Requiring Public Hearing 8.1 Bylaw No. B-45/ Fortis Franchise Fee (Shannon Schindeler, Manager of Treasury) Council is being asked to give three readings to Bylaw No. B-45/2018, being a bylaw to increase the Fortis Alberta franchise fee. 8.2 Bylaw Nos. B-42, B-43 and B-44/ Utility Bylaw Amendments (Monica Labait, Team Leader, Utility Administration) Council is being asked to give three readings to Bylaw Nos. B-42/2018, B- 43/2018, and B-44/2018, being bylaws to amend the rates in the Water, Sewer and Waste Management Utilities

2 COUNCIL AGENDA REPORT Meeting Date: 3 December 2018 Subject: Boards Routed Through: Operating and Capital Budget Council Budget Committee Date: 29 November 2018 Issue: Council is being presented with the Council Budget Committee (CBC) recommended 2019 Operating and Capital Budgets for approval. Background: Council is required to adopt an annual budget pursuant to Section 242(1) of the Municipal Government Act (MGA). Section 243(3) of the MGA requires that the annual municipal budget be balanced; that is, budgeted revenue and transfers must be sufficient to pay the budgeted expenditures and transfers. At the November 2, 2018 meeting, administration presented CBC with the 2019 proposed operating and capital budgets. The Committee deliberated over five meetings and prepared a recommended budget to Council. Programs and services were reviewed and revenues and expenses considered. The Committee made modifications and arrived at a budget that includes raising additional revenue. The increase in revenue will see City services maintained, strategy funded and community investment made. The following provides information related to financial goals, the overall budget, the operating and utility fund, the capital budget, and the effect to the average Airdrie household. Progression is detailed from the proposed budget to the budget that is before Council for endorsement (CBC recommended). The deliberation process produced significant documentation and analysis. This information can be found on the City s website included with the 2018 CBC agendas. Fiscal Sustainability Framework Earlier this year, Council approved the Fiscal Sustainability Framework and strategy. Through the process, Council financial policies were revamped and endorsed setting out direction and guidance for staff throughout the 2019 budget planning cycle. Included within the framework are five areas of strategies with a number of specific objectives 1

3 within each of the areas. The following list highlights areas addressed within the 2019 budget cycle. Ensuring Adequate Level of Funding: - The City s operating budget shows pressure on the revenue side. The 2019 budgets builds both tax and franchise fee revenue. User fee revenue will be more comprehensively addressed in the 2020 planning cycle. Strategic Use of Debt: - A new self-imposed debt limit has been endorsed within the Council Debt Policy and has been applied to the capital planning. Short falls in development levy revenue have been identified. Provide for Contingencies: Transfers to the General Operating Reserve have been maintained at 2018 levels and the fund grows steadily to the future. The three year budget sees part of these used to fund the $1.8MM investment in Blue Zone Community. The tax stabilization strategy has been addressed within the budget Council Budget Committee Recommended Budget The operating budget is made up of two parts: the General Operating Fund and the Utility Fund. The following section provides data associated with this budget as a whole. Further highlights of incremental changes are provided specifically to each of the two parts: CBC Recommended 2019 Budget Council Approved 2018 Budget Percent Change Revenue General Operations $(103,952,606) $(97,610,589) 6.50% Utility Operations (46,138,264) (46,094,625) 0.09% Total Revenue $(150,090,870) $(143,705,214) 4.44% Expenditures General Operations $110,412,694 $103,903, % Utility Operations 39,678,176 39,801,487 (0.31%) Total Expenditures $150,090,870 $143,705, % The annual budget and planning process prepares projections for years two and three. The recent work on fiscal policy and strategy looks to improve short and long term planning by bringing focus to not only the upcoming budget year, but strategically looking to the effects over future years as well. The table below details these projections Operating Plan 2021 Operating Plan Revenues $(156,256,618) $(164,317,340) Expenditures 160,454, ,417,402 Deficit $4,197,628 $9,100,062 2

4 The 2020 and 2021 forecast are reflective of the CBC recommendation to increase tax and franchise fee revenue. Where the Administrative proposed budget saw year two and three with deficits of $10MM and 16MM, the cumulative effect of additional revenue over brings greater community sustainability. The 2021 budget sees new community service coming on and the tax stabilization fund can be used to spread large expense increases over two to three years; tax rate increases are expected to stay stable General Operating Budget The purpose of the general operating fund is to facilitate the delivery of tax supported services to Airdrie citizens. As a municipality, it is a requirement of legislation that tax revenue be levied to fund the cost of City services. CBC Recommended 2019 Budget Council Approved 2018 Budget Difference Percent change Revenue $(103,952,606) $(97,610,589) $(6,342,017) 6.50% Expenses 110,412, ,903,727 6,508, % Contribution from Utility Fund $6,460,088 $6,293,138 $166, % The budget cycle saw City development type revenue plateau with very little change from one year to the next. Where prior years benefited from the additional funds from this revenue type, projections do not help to cover cost increases. The $6.3MM change in revenue year over year is primarily a result of changes in tax and franchise fee revenue specifically, $2MM in tax revenue growth and the $4.7MM in additional municipal tax as endorsed within the CBC budget. Expenses have increased by 6.26% ($6.5MM) in 2019; with growth (4.88%) plus inflation (2%) being 6.88%, overall expense increase falls in line with the Council s budget policy. The following changes were incorporated by the Committee and demonstrate moving from the administration proposed budget to the CBC recommended budget. Administration Recommended Budget Gap $5,641,730 Administration Adjustments to Proposed Budget Reduce Fire Overtime (100,000) Council Budget Committee Recommendations Additional RCMP Administrative Position 69,000 Reduce Cost of Living Factor non-unionized staff (225,000) Reduce Cost of Living Factor Council remuneration (2,000) Reduce Support for Council and Committee Meeting Recording (15,000) Electrical Franchise Fee increase (634,000) Tax Revenue Increase (4,734,730) 3

5 Balanced $0 The CBC recommended budget includes an additional $4,734,730 in tax revenue to close the budget gap as shown in the chart above. The estimated impact to the average residential homeowner with an assessed value of $404,000 is $144 annually. Tax Revenue Increase Additional Revenue Generated CBC Endorsed Municipal Services 1.29% 721,000 $22 Protective Services 5.18% 2,895,730 $88 Tax Stabilization Reserve 2.00% 1,118,000 $34 Estimated Annual Cost Average Airdrie Home Owner 8.47% 4,734,730 $144 As shown above, the most significant need to raise additional funds is related to the cost of protective services, making up more than half of the new revenue. Protective Services includes the following City functions: Police, Fire and Municipal Enforcement. The information that follows list new deliverables to the community made possible by raising additional revenue within the Operating Fund budget. CBC has endorsed moving forward on the fiscal sustainability strategy to keep future increases stable by directly moving 2% of the tax revenue increase into tax stabilization fund. This revenue is anticipated to first be used when the new library is build and opened (2020/2021) and City s fourth fire hall comes online in It is projected that the onset of these two new services will require $6 to 8MM in additional operating funds. In approximately six years, a new recreation centre will become operational and with that, operating costs will rise. Municipal Services currently being provided will be maintained. Four additional firefighters at a cost of $337,000. Six 2018 RCMP officers funded for full year in 2019 $1.2MM. Two additional RCMP officers ($280,000) bringing the total complement to 65 officers. 4.5 new full time equivalents added to RCMP administrative staff at a cost of $330,000. These new staff will help shift administrative type work away from officers giving officers more time in the field. $230,000 in financial resources have been included to launch the City s Economic Strategy implementation plan includes a visitor attraction strategy, economic impact events, branding exercise and various other economic projects. A new staff member will be added to the Economic Development team to build depth in the business unit and staff across the 4

6 organization will take part in moving this operating strategy forward for the community. The recent Council endorsed Youth and Domestic Violence Strategies will be implemented. $105,000 is included in the budget to provide these added services. Progress is being made with advancing a community ask for a new west side Recreation Centre. The 2019 budget includes funds to pay for the debenture cost of associated recreation centre lands in the amount of $740,000. $200,000 is includes as the final payment to the 2020 Alberta Games Committee. Investment in Blue Zone Community At the November 5, 2018 meeting, Council considered the request to invest in the City potentially becoming a Blue Zone Community and directed staff to include the report for funding within the proposed budget. CBC deliberated this item and directed Administration to include the amount of $600,000 in each budget year (2019, 2020 and 2021). The total City investment into this community initiative amounts to $1.8MM over the three years, includes three once annually payment of $500,000 and funds the addition of one City staff member. Funding for this initiative will be drawn from the General Operating Reserve and does not affect the tax base for Utility Budget (Environmental Services) The utility fund contains all the revenue and expenses necessary for providing water, sewer and waste services to the community. The fund is self-supporting, meaning that costs incurred to run the utility must be recovered through rates. CBC Recommended 2019 Budget Council Approved 2018 Budget Difference Percent change Revenue $(46,138,264) $(46,094,625) $(43,639) 0.09% Expenses 39,678,176 39,801,487 (123,311) 0.31% Contribution to the Operating Fund $(6,460,088) $(6,293,138) $(166,950) 2.65% In total, it is expected to cost $39.6MM to provide utility services in Over the course of 2018, a new contract for Calgary water services was negotiated and resulted in lower rates and projected costs. The lower cost of purchased services has allowed opportunity to progress on the Utility s strategy for improved sustainability and transfers to reserves to cover amortization have been increased. This strategy assists with future renewal of assets and aims to ensure that critical water services can be maintained without interruption. The water flat and variable rate has been reduced, the sewer rate will increase slightly and overall utility customers will see a reduction in annual cost. Waste and Recycling Services are also included within the utility, which will see an overall decrease of approximately $800,000 when compared to the 2018 budget. A majority of this decrease relates to favorable rates obtained through the competitive bid 5

7 process. Residents supporting and utilizing organic and recycling programs has led to reduced landfill disposal costs and increased waste diversion. The following details the recommended rate: Water Flat Daily Rate $0.64 $0.74 Sewer Flat Daily Rate $0.94 $0.98 Water Variable Rate $ $ Sewer Variable Rate $ $ Residential Collection Daily Rate $0.70 $0.82 Environmental Daily Rate $0.18 $0.18 Monthly Utility Bill -15 m 3 consumption $ $ Capital Budget The ten-year Capital Plan has identified approximately $683MM in capital investment. The plan includes various projects which meet the need for life cycling assets and constructing new. Administration put forward a proposed 2019 capital budget in the amount of $27,465,850. Reductions of $7,248,390 were made during two days of CBC capital budget deliberations. See table below for further information. Administration Proposed Budget $27,465,850 Administration Adjustments to Proposed Budget Secure Parking and Storage (budget reduced) (17,590) Land Acquisition (budget deferred) (7,180,800) Lifecycle Parks Pathways Program (budget reduced) (50,000) Final CBC Recommended Capital Budget $20,217,460 Over the next three years, the City s capital spending is projected to be within the $20.2MM - $103.6MM range. Capital plan for 2020/2021 includes some major projects such as the new library facility, the Yankee Valley CPR track underpass and building a new fire hall. The attached budget document provides more information related to the City s ten-year capital plan and specific projects. The municipal capital plan investment by function category is illustrated below. Project Type General Government Services $2.3MM $1.6MM $6.8MM 6

8 Protective Services 2.8MM 2.2MM 12.8MM Community Services 3.1MM 39.3MM 19.4MM Transportation, Public 3.3MM 55.3MM 12.1MM Works and Roads Environmental Services 8.7MM 5.1MM 4.6MM $20.2MM $103.5MM $55.7MM The funding sources for the next three years are illustrated below. Sources of Funding Grants $6.2MM $60.8MM $35.7MM Reserves $10.5MM $19.4MM $15.3MM Debentures $3.5MM $23.3MM $4.7MM Overall Effect on the Average Airdrie Resident To provide information on the anticipated holistic effect on annual budgets, the following is provided. Airdrie household will be effected by increases to franchise fees, tax revenue and environmental services (utility) rates. For 2019, the reduction in environmental services rates will provide some relief. The overall effect as estimated for a home assessed at $404,000 is projected to be $69 annually or $5.75 per month. Electrical Franchise Fee (2% increase from 15% to 17%) Municipal Tax (8.47% tax revenue increase) Environmental Services (water, sewer and waste management) CBC Recommended $15 $144 $(90) Total Cost per year $69 Overall, the CBC endorsed budget will move City operations toward sustainability and through resources targeted to strategy, shifts will being as Airdrie becomes the place to be. 7

9 Alignment with AirdrieONE: Annual budget and planning cycles align with the AirdrieONE governance principle aimed to promote effective decision making and fiscal sustainability. Boards Routed Through: Council Budget Committee as outlined throughout this report. Alternatives/Implications: 1. Accept the recommendation of Council Budget Committee to approve the 2019 Operating and Capital Budgets as presented. This option will allow Administration to begin implementing the plans and projects that have been included in the 2019 budget and prepare all necessary documentation for publication to the residents. 2. Amend the recommendation of the Council Budget Committee for the 2019 Operating and Capital Budget as presented. Council could choose to amend the budgets as presented and could provide direction to Administration regarding their areas of concern. The next regular Council meeting could facilitate the return of any requested information. 3. Table the recommendation of the Council Budget Committee for the 2019 Operating and Capital Budget as presented. If the 2019 Budget is not approved by year-end, an interim budget must be approved by Council prior to the end of the year. At a future meeting, Council will be required to rescind the interim budget and approve the 2019 Operating and Capital Budgets. Communications Plan: Corporate Communications will issue a press release and backgrounder on the 2019 budget subsequent to its adoption. The 2019 budget document will be available on the website once it is finalized and adopted by Council Budget Committee (early 2019). The Budget and Financial Planning department will be submitting the budget document to the Government Finance Officers Association (GFOA) for the Distinguished Budget Presentation Award. 8

10 Recommendation: That City Council: 1. endorses the recommendation of the Council Budget Committee to adopt the 2019 operating budget of $150,090,870 and the 2019 capital budget of $20,217,460; and 2. accepts the operating plans and capital plans for information. L. Wiwcharuk, BMgmt, CPA, CMA Director Corporate Services and CFO Palki Biswas, MBA Team Leader, Budget and Financial Planning Presenter: Department: Reviewed by: Attachments: Appointment: Lucy Wiwcharuk Corporate Services Lucy Wiwcharuk #1: CBC Recommended Operating and Capital Budget N/A 9

11 CBC Recommended Operating Budget/Plan Capital Budget/Plan Focused priorities for sustainable growth 10

12 Operating Budget Summary 11 1

13 City of Airdrie 2019 Budget Highlights Operating Budget Summary Financial Summary Summary By Fund % Actual Q3 Projection Budget Budget +(-) Plan Plan Revenues General Operations (91,001,705) (99,297,790) (97,610,589) (103,952,606) 6% (107,167,110) (111,921,122) Utility Operations (44,246,818) (45,949,504) (46,094,625) (46,138,264) (49,089,508) (52,396,218) Total Revenues (135,248,523) (145,247,294) (143,705,214) (150,090,870) 4% (156,256,618) (164,317,340) Expenditures General Operations 96,491, ,601, ,903, ,412,694 6% 118,183, ,316,383 Utility Operations 38,756,959 39,656,316 39,801,487 39,678,176 42,270,299 45,101,019 Total Expenditures 135,248, ,257, ,705, ,090,870 4% 160,454, ,417,402 Total Summarized by Fund (989,658) 4,197,628 9,100,062 CBC Recommended Budget 12

14 City of Airdrie 2019 Budget Highlights Operating Budget Summary Financial Summary By Activity % Actual Q3 Projection Budget Budget +(-) Plan Plan Revenues Net Property Taxes (50,205,124) (54,586,086) (54,586,086) (61,320,843) 12% (63,322,862) (65,322,862) Sales to Other Governments (218,126) (404,100) (237,745) (870,670) 266% (243,000) (243,000) Sales & User Charges (46,029,063) (48,509,590) (48,577,460) (50,617,304) 4% (53,885,858) (57,501,117) Other Revenues (22,040,414) (22,549,709) (22,561,954) (23,707,043) 5% (25,145,825) (26,381,565) Unconditional Grants (430,083) (418,565) (430,000) (420,000) (2%) (420,000) (420,000) Conditional Grants (3,871,299) (5,734,826) (4,163,960) (3,288,463) (21%) (3,217,366) (3,274,561) Drawn from Reserves (8,227,413) (9,396,406) (9,471,229) (5,715,407) (40%) (5,640,407) (6,532,605) Internal Recoveries (3,451,553) (3,648,012) (3,676,780) (4,151,140) 13% (4,381,300) (4,641,630) Total Revenues (134,473,075) (145,247,294) (143,705,214) (150,090,870) 4% (156,256,618) (164,317,340) Expenditures Salaries, Wages & Benefits 50,804,305 55,017,896 55,509,916 60,510,595 9% 65,796,305 71,716,215 Contracted & General Services 19,223,467 24,822,801 26,924,419 22,897,222 (15%) 23,648,957 24,129,557 Purchases from Other Governments 21,792,166 23,418,255 23,171,430 23,144,301 25,134,471 26,901,564 Materials, Goods, Supplies & Utilities 10,661,170 10,250,992 10,431,643 10,905,494 5% 11,129,393 11,846,713 Contributed to Capital 9,403 Added to Reserves/Allowances 16,610,665 13,301,887 11,671,287 15,809,089 35% 16,783,404 18,667,084 Bank Charges & Short Term Interest 377, , , ,300 6% 392, ,300 Long-Term Debt 7,304,217 7,271,570 7,168,695 7,494,749 5% 8,353,051 10,167,517 Internal Charges 3,451,278 3,648,012 3,676,780 4,151,140 13% 4,381,300 4,641,630 Other Transactions 76, , , ,000 (69%) 274, ,000 Grants to Groups & Other Organizations 4,162,388 5,339,373 3,999,594 4,563,980 14% 4,561,065 4,628,822 Total Expenditures 134,473, ,257, ,705, ,090,870 4% 160,454, ,417,402 NET COST/(GAIN) (989,658) 4,197,628 9,100,062 Personnel - Year Equivalents Year Equivalent: Full - Time % Year Equivalent: Part - Time % Total Personnel - Year Equivalents % Forecast Population Forecast Population 64,922 68,168 71,500 5% 74,300 77,000 Total Forecast Population 64,922 68,168 71,500 5% 74,300 77,000 Cost per Capita 2, , , % 2, , CBC Recommended Budget 13

15 City of Airdrie 2019 Budget Highlights Operating Budget Summary TAX-SUPPORTED By Activity % Actual Budget Q3 Projection Budget +(-) Plan Plan Revenues Net Property Taxes (50,205,124) (54,586,086) (54,586,086) (61,320,843) 12% (63,322,862) (65,322,862) Sales to Other Governments (171,006) (190,625) (353,100) (802,670) 321% (175,000) (175,000) Sales & User Charges (6,349,074) (6,662,201) (6,684,662) (6,785,677) 2% (7,109,112) (7,424,092) Other Revenues (21,747,096) (22,374,754) (22,355,681) (23,532,444) 5% (24,965,101) (26,194,410) Unconditional Grants (430,083) (430,000) (418,565) (420,000) (2%) (420,000) (420,000) Conditional Grants (3,871,299) (4,163,960) (5,731,556) (3,288,463) (21%) (3,217,366) (3,274,561) Drawn from Reserves (4,181,022) (5,746,183) (5,711,360) (3,878,169) (33%) (3,803,169) (4,695,367) Internal Recoveries (3,271,553) (3,456,780) (3,456,780) (3,924,340) 14% (4,154,500) (4,414,830) Total Revenues (90,226,257) (97,610,589) (99,297,790) (103,952,606) 6% (107,167,110) (111,921,122) Expenditures Salaries, Wages & Benefits 45,969,600 50,381,312 50,031,292 54,924,059 9% 59,828,199 65,575,734 Contracted & General Services 12,332,531 17,221,738 16,547,434 15,470,748 (10%) 16,117,479 16,521,143 Purchases from Other Governments 8,277,500 9,303,300 9,298,200 10,745,220 15% 11,474,120 12,130,060 Materials, Goods, Supplies & Utilities 7,010,479 7,518,905 7,612,338 8,088,494 8% 8,020,848 8,333,924 Contributed to Capital 9,403 Added to Reserves/Allowances 9,608,599 6,713,790 6,884,720 7,817,942 16% 8,606,190 9,556,190 Bank Charges & Short Term Interest 284, , , ,500 (4%) 286, ,500 Long-Term Debt 5,698,250 5,327,118 5,429,993 5,657,511 6% 6,266,606 8,081,070 Internal Charges 2,303,610 2,387,320 2,387,320 2,651,240 11% 2,767,940 2,899,940 Other Transactions 59, , , ,000 (70%) 255, ,000 Grants to Groups & Other Organizations 4,162,388 3,999,594 5,339,373 4,563,980 14% 4,561,065 4,628,822 Total Expenditures 95,716, ,903, ,601, ,412,694 6% 118,183, ,316,383 NET COST/(GAIN) 5,489,878 6,293,138 5,303,530 6,460,088 3% 11,016,837 16,395,261 Forecast Population Forecast Population 64,922 68,168 71,500 5% 74,300 77,000 Total Forecast Population 64,922 68,168 71,500 5% 74,300 77,000 Cost per Capita 1, , , % 1, , CBC Recommended Budget 14

16 City of Airdrie 2019 Budget Highlights Operating Budget Summary UTILITY-SUPPORTED By Activity 2017 Actual 2018 Budget 2018 Q3 Projection 2019 Budget Year-Over- Year Budget Change % +(-) 2020 Plan 2021 Plan Revenues Sales to Other Governments (47,120) (47,120) (51,000) (68,000) (20,880) 44% (68,000) (68,000) Sales & User Charges (39,679,989) (41,915,259) (41,824,928) (43,831,627) (1,916,368) 5% (46,776,746) (50,077,025) Other Revenues (293,318) (187,200) (194,028) (174,599) 12,601 (7%) (180,724) (187,155) Conditional Grants (3,270) Drawn from Reserves (4,046,391) (3,725,046) (3,685,046) (1,837,238) 1,887,808 (51%) (1,837,238) (1,837,238) Internal Recoveries (180,000) (220,000) (191,232) (226,800) (6,800) 3% (226,800) (226,800) Total Revenues (44,246,818) (46,094,625) (45,949,504) (46,138,264) (43,639) (49,089,508) (52,396,218) Expenditures Salaries, Wages & Benefits 4,834,705 5,128,604 4,986,604 5,586, ,932 9% 5,968,106 6,140,481 Contracted & General Services 6,890,936 9,702,681 8,275,367 7,426,474 (2,276,207) (23%) 7,531,478 7,608,414 Purchases from Other Governments 13,514,666 13,868,130 14,120,055 12,399,081 (1,469,049) (11%) 13,660,351 14,771,504 Materials, Goods, Supplies & Utilities 3,650,691 2,912,738 2,638,654 2,817,000 (95,738) (3%) 3,108,545 3,512,789 Added to Reserves/Allowances 7,002,066 4,957,497 6,417,167 7,991,147 3,033,650 61% 8,177,214 9,110,894 Bank Charges & Short Term Interest 93,728 70,800 91, ,800 30,000 42% 105, ,800 Long-Term Debt 1,605,967 1,841,577 1,841,577 1,837,238 (4,339) 2,086,445 2,086,447 Internal Charges 1,147,668 1,289,460 1,260,692 1,499, ,440 16% 1,613,360 1,741,690 Other Transactions 16,532 30,000 25,000 20,000 (10,000) (33%) 19,000 18,000 Total Expenditures 38,756,959 39,801,487 39,656,316 39,678,176 (123,311) 42,270,299 45,101,019 NET COST/(GAIN) (5,489,859) (6,293,138) (6,293,188) (6,460,088) (166,950) 3% (6,819,209) (7,295,199) Personnel - Year Equivalents Year Equivalent: Full - Time % Year Equivalent: Part - Time % Total Personnel - Year Equivalents % CBC Recommended Budget 15

17 Capital Planning Summary 16 6

18 City of Airdrie Ten-Year Capital Budget & Planning Summary For the Planning Period Projects Summarized by Type Engineering Structures 11,372,580 50,063,720 12,606,890 23,216,520 33,294,290 48,363,650 38,470,960 32,805,890 57,532,080 52,684,950 Building and Major Renovations 1,232,770 35,495,330 24,858,110 14,777,940 7,945,990 79,322,430 3,974,090 3,772, ,140 2,098,330 Machinery and Equipment 4,679,130 6,455,320 7,348,430 9,175,150 3,786,500 4,206,470 5,840,310 3,562,100 6,233,890 3,035,240 Motor Vehicles 2,130,780 5,636,800 2,127,910 6,082,160 5,755,340 1,814,720 7,918,710 1,333,950 5,262,280 2,377,120 Land and Improvements 802,200 5,915,060 8,758,740 10,459,290 2,864, ,510 1,932, , ,130 21,561,250 Total Project Costs 20,217, ,566,230 55,700,080 63,711,060 53,646, ,910,780 58,136,180 41,816,350 70,136,520 81,756,890 Projects Summarized by Service Area Community Services 3,118,860 39,231,470 19,403,540 8,489,980 11,660,640 79,330,570 2,988,870 2,192,550 2,641,830 3,872,570 Environmental Services 8,718,620 5,162,400 4,534,430 5,364,210 12,518,140 3,394,770 5,796,450 14,003,850 19,246,880 45,215,980 General Government Services 2,363,870 1,540,160 6,778,220 3,104,710 1,169,680 1,540,540 1,076,720 1,696,580 2,275,720 20,474,280 Protective Services 2,765,790 2,240,960 12,821,210 2,754,490 2,023, ,110 1,379, , ,660 Roads 91,200 1,808,480 1,586,610 3,404,380 3,054,610 2,279,420 1,863, , ,130 1,421,840 Transportation and Public Works 3,159,120 53,582,760 10,576,070 40,593,290 23,220,330 47,082,370 45,031,090 22,899,060 45,624,960 10,636,560 Total Project Costs 20,217, ,566,230 55,700,080 63,711,060 53,646, ,910,780 58,136,180 41,816,350 70,136,520 81,756,890 Sources of Funding Grants 6,217,560 60,778,770 35,716,610 29,151,920 9,541,630 20,828,860 13,669,030 7,369,900 15,170,840 18,582,020 Reserves 10,492,900 19,410,790 15,260,970 25,251,640 31,858,140 31,301,010 29,513,930 22,011,510 33,644,180 28,377,520 Debentures 3,500,000 23,295,970 4,716,000 9,301,000 12,240,690 81,774,410 14,946,720 12,428,440 21,315,000 34,790,350 Other 7,000 80,700 6,500 6,500 6,500 6,500 6,500 6,500 6,500 7,000 Total Project Costs 20,217, ,566,230 55,700,080 63,711,060 53,646, ,910,780 58,136,180 41,816,350 70,136,520 81,756,

19 City of Airdrie Ten-Year Capital Budget & Planning Summary For the Planning Period Estimated Debt Limit Calculations Provincial Debt Limit Calculation in comparison on our projected revenues -- how much room do we have after we remove our projected debt? Total Revenue - capital and operating (no grants) 146,720, ,440, ,196, ,850, ,102, ,174, ,930, ,830, ,434, ,630,091 Grossed up by 1.5 for calculation 220,080, ,660, ,294, ,775, ,154, ,261, ,396, ,246, ,151, ,945,137 Projected outstanding debt 75,081,120 92,380,260 99,835, ,001, ,736, ,659, ,697, ,173, ,813, ,870,998 Total debt under debt limit 144,999, ,279, ,458, ,773, ,417, ,602, ,698, ,073, ,337, ,074,139 Percentage of used Debt Limit 34% 40% 42% 39% 38% 60% 58% 54% 53% 56% Calculation in comparison on our required payments -- how much room do we have after we make our annual payments? Total Service on debt at.25 of revenue 36,680,046 38,110,007 40,049,022 42,962,502 46,025,693 49,043,569 52,232,686 55,707,716 59,358,595 63,157,523 Projected Total Services - debt payments 7,494,751 8,353,051 10,167,512 11,424,765 11,858,530 12,393,155 18,699,789 18,910,272 19,753,997 21,329,262 Total service on debt under limit 29,185,295 29,756,956 29,881,510 31,537,737 34,167,162 36,650,414 33,532,897 36,797,444 39,604,598 41,828,261 Percentage of Debt Payment Limit used 20% 22% 25% 27% 26% 25% 36% 34% 33% 34% City of Airdrie Self Imposed Debt Limits Condition - that tax supported debt payments are less than or equal to 10% of Net General Fund Operating Revenue Total non - utility supported debt payments = Tax + Roads Offsite 5,657,512 6,266,606 8,081,067 9,338,320 9,990,902 10,218,412 16,525,046 17,188,697 17,569,388 18,659,447 Less Non utility offsite levy funded payments = Roads Offsite 2,788,168 2,788,168 3,680,365 4,779,503 5,432,084 5,659,594 7,384,600 8,372,482 8,962,269 10,052,328 Net tax supported debt payments 2,869,344 3,478,438 4,400,702 4,558,817 4,558,817 4,558,817 9,140,446 8,816,215 8,607,119 8,607,119 Net General fund operating revenue = Total revenue - Utility revenue 88,186,729 90,274,641 93,544, ,524, ,797, ,700, ,731, ,580, ,345, ,541,038 Debt payments as a percentage of above 3.254% 3.853% 4.704% 4.535% 4.229% 3.940% 7.387% 6.650% 6.047% 5.642% Has the condition been meet (> or equal to 10%) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Condition - that utility supported debt payments are less than or equal to 25% of Net Utility Fund Operating Revenue Total utility supported debt payments (UT+UTO) 1,837,238 2,086,445 2,086,445 2,086,445 1,867,629 2,174,743 2,174,743 1,721,575 2,184,609 2,669,814 Less: utility offsite levy funded payments (UTO) 1,837,238 1,837,238 1,837,238 1,837,238 1,618,422 1,925,537 1,925,537 1,472,368 1,935,402 2,420,608 Net utility supported debt payments 0 249, , , , , , , , ,207 Net Utility fund operating revenue 45,161,397 48,420,274 51,634,761 54,817,001 58,417,454 62,150,131 66,567,781 71,040,054 75,528,834 80,584,367 Debt payments as a percentage of above 0.000% 0.515% 0.483% 0.455% 0.427% 0.401% 0.374% 0.351% 0.330% 0.309% Has the condition been meet (< or equal to 25%) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Condition - that growth and development debt financing are less than 50% of the capital budget Projected capital budget cost 0 38,274,770 5,245,000 18,676,000 24,690,690 39,417,000 30,208,700 24,964,440 42,630,000 30,556,710 Growth and Development debt financing 0 10,343,170 2,600,000 9,301,000 12,240,690 19,317,000 14,946,720 12,428,440 21,315,000 15,278,350 Debt financing as a percantage of Total Capital Budget cost 0.000% % % % % % % % % % Has the condition been meet Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 18 8

20 City of Airdrie Ten-Year Capital Budget & Planning Summary For the Planning Period Condition - offsite reserves will maintain sufficient minimum balances to cover 4 years of debt servicing payments Total Offsite reserves beginning balance 33,350,315 43,228,218 46,357,206 51,593,979 48,773,130 37,675,059 25,913,572 13,710,467 8,349,339-7,969,193 Current year developer funded debt payment x 4 18,501,627 18,501,627 22,070,414 26,466,965 28,202,026 30,340,524 37,240,544 39,379,402 43,590,683 49,891,743 Reserves' balances 14,848,688 24,726,591 24,286,792 25,127,014 20,571,104 7,334,535-11,326,972-25,668,935-35,241,344-57,860,936 Has the condition been meet Yes Yes Yes Yes Yes Yes No No No No Developer funded debt Information Developer funded - roads 2,788,168 2,788,168 3,680,365 4,779,503 5,432,084 5,659,594 7,384,600 8,372,482 8,962,269 10,052,328 Developer funded - utility 1,837,238 1,837,238 1,837,238 1,837,238 1,618,422 1,925,537 1,925,537 1,472,368 1,935,402 2,420,608 Total developer funded debt payments (G) 4,625,407 4,625,407 5,517,604 6,616,741 7,050,506 7,585,131 9,310,136 9,844,850 10,897,671 12,472,936 Debt Payment Affect on Operating Budget Debt payments on the basis of current debt 6,778,347 7,247,728 7,247,728 7,247,728 6,865,123 6,378,983 6,191,692 5,067,435 4,858,339 4,541,629 Add: New payments added 716,404 1,105,323 2,919,784 4,177,037 4,993,408 6,014,172 12,508,097 13,842,837 14,895,657 16,787,632 Total Debt Payments 7,494,751 8,353,051 10,167,512 11,424,765 11,858,530 12,393,155 18,699,789 18,910,272 19,753,997 21,329,262 Add increase to transfers to reserve for capital 1,287, , , , , , , , , ,690 Less: Developer supported repayment of debt = (G) 4,625,407 4,625,407 5,517,604 6,616,741 7,050,506 7,585,131 9,310,136 9,844,850 10,897,671 12,472,936 Add: Contributions directly from operating Total Impact on Operating Budget 4,156,714 4,516,175 5,599,909 5,258,024 5,433,024 5,145,524 9,690,903 9,331,791 9,238,346 8,708,636 Difference over (under) 2018 Operating Budget 552, ,072 1,995,806 1,653,921 1,828,921 1,541,421 6,086,800 5,727,689 5,634,243 5,104,533 Difference year over year 552, ,461 1,083, , , ,500 4,545, ,112-93, ,710 Debt per Capita Calculation Population projections = B 71,946 75,070 77,540 79,963 82,397 84,844 87,349 89,799 92,280 94,790 Outstanding Debt Developer funded debt Roads = Roads Offsite 21,084,217 29,224,506 38,938,043 44,701,804 48,867,034 64,164,874 73,997,862 74,806,442 83,831,687 77,916,086 Utility = UTO - Utility Offsite 14,469,809 13,072,212 11,625,933 10,129,156 12,911,332 11,405,640 9,848,616 14,632,740 19,353,684 32,121,597 Total developer funded debt = A 35,554,026 42,296,718 50,563,977 54,830,960 61,778,366 75,570,513 83,846,478 89,439, ,185, ,037,683 Utility Rate payer funded debt = UT - Utility = C 3,500,000 3,379,186 3,253,861 3,123,855 2,988,995 2,849,099 2,703,979 2,553,440 2,397,279 2,235,287 Tax payer supported debt = Tax = D 36,027,094 46,704,357 46,017,705 43,046,570 39,969,303 99,239,455 94,147,101 89,180,499 84,230,994 98,598,028 TOTAL OUTSTANDING DEBT 75,081,120 92,380,260 99,835, ,001, ,736, ,659, ,697, ,173, ,813, ,870,998 Debt Per Capita Developer funded Debt = A/B ,118 1,161 Utility Rate payer funded debt =C/B Tax payer supported debt = D/B ,170 1, ,040 Debt per capita 1,044 1,231 1,288 1,263 1,271 2,094 2,069 2,018 2,057 2,

21 10 Year Major Capital Budget Summary by Directorate 20 10

22 CITY OF AIRDRIE 10 YEAR MAJOR CAPITAL PROJECT SUMMARY BY DIRECTOR BUDGET YEAR 2019 PROJECT # AND PROJECT NAME Department Community Growth & Protective Services Design & Construction - 4th Fire Hall Fire Protection 1,644,680 12,501,930 2,540,910 Total Community Growth & Protective Services 1,644,680 12,501,930 2,540,910 Community Infrastructure Civic Spaces Corporate Properties 326, East Lake Hill Redevelopment Corporate Properties 2,256, ,760 10,127,000 1,966,220 2,846, Downtown Civic Spaces Corporate Properties 478,170 5,815, Land Acquisition Engineering Services 1,620,000 1,723,950 1,829, Water Supply Line to Calgary Engineering Services 178,080 1,827,000 14,988, South Regional Lift Station Engineering Services 250,500 2,313,200 11,872,000 12,180, st Ave Widening - 8th St to Woodside Dr Engineering Services 2,313, YVB CPR Grade Separation Engineering Services 38,274, YVB - 8 St to QEII (6 lane) Engineering Services 629,400 6,396, th Ave - 8 St to QEII (4 lane) Engineering Services 657,600 6,757, Highland Park Reservoir Engineering Services 8,220, Reservoir Pumphouse - West Airdrie Engineering Services 118,720 2,436,000 18,735, Veterans Blvd CPR Grade Separation Engineering Services 346,980 3,561, th Avenue - 8th St to QEII (2 lane) Engineering Services 675,720 7,633, Veterans Blvd - East Lake Blvd to East Lake Rd (4 lane) Engineering Services 438,400 4,504, th Avenue - Highview Gate to 800m East (2 lane) Engineering Services 2,070,000 11,262, th Avenue - 800m East to Range Road 292 (2 lane) Engineering Services 12,180, Upgrade Sanitary line - Bayside (450mm) Engineering Services 225,240 2,313, St - From YVB m S to 40 Ave (2 lane) Engineering Services 563,100 5,783, St - 40 Ave to 800m S (2 lane) Engineering Services 578,300 5,936, St - From 40 Ave - 800m S to 56 Ave (2 lane) Engineering Services 593,600 6,090, St - Veterans Blvd to 800m N Engineering Services 548,000 5,631, St - Hillcrest Wy to 400m S (4 lane) Engineering Services 548,000 5,631, St - from Hillcrest Wy 400m S to 56 Ave (4 lane) Engineering Services 563,100 5,783, Luxstone CPR Pedestrian Tunnel Engineering Services 520, Ave - Windsong Blvd to Carewest Engineering Services 1,552,500 5,245, Ave - Carewest to Cobblestone Blvd Engineering Services 5,330,000 5,480, Ave - Cobblestone Blvd to 24 St Engineering Services 5,631, YVB - Kings Heights Ga to RR291 (4 lane) Engineering Services 627,980 6,606, YVB - RR291 to RR292 (4 lane) Engineering Services 663,450 6,971, YVB - RR292 to City Limit (4 lane) Engineering Services 681,360 7,156, Reservoir Pumphouse - South East Airdrie Engineering Services 118, ,000 9,992, Veterans Blvd Widening - Reunion Gateway to Buffalo Rub Engineering Services 867, St - Veterans Blvd to Sagewood Dr (4 lane) Engineering Services 419,600 4,384, St - Sagewood Dr to YVB (4 lane) Engineering Services 115,660 1,187,200 12,180, St - Reunion to 800m North Engineering Services 517,500 5,330, Chinook Winds Park Site Development Parks Operations 2,043, Cemetary Development Parks Operations 1,560,000 2,116, Parkland Development Parks Operations 200,000 2,000, Parks Operations Building - Chinook Winds Parks Operations 120,240 1,208, , Regional - Ball Diamonds Parks Operations 3,703, Permanent Snow Storage Facility/Melt Site Public Works Roads 3,240,000 1,424,800 1,914,

23 CITY OF AIRDRIE 2019 CAPITAL PROJECT SUMMARY BY DIRECTOR TEN YEAR PLAN BUDGET YEAR 2019 PROJECT # AND PROJECT NAME Department Salt Storage Facility Public Works Roads 1,035,000 1,387, Equipment storage expansion Public Works Roads 1,066, Downtown Core Infrastructure Rehabilitation Program Sewer Utility 6,422,820 2,538,860 2,531, Transfer Site Expansion Waste and Recycling Services 75, , Recycling Facility Waste and Recycling Services 2,160, ,080 1,182, NE Reservoir upgrade Water Utility 90, , Water System Reinforcement. Water Utility 400, , , , , , , , , ,260 Total Community Infrastructure 8,041,010 53,993,950 20,973,910 38,329,090 30,378,170 45,880,380 39,853,710 30,304,470 48,153,480 50,286,260 Community Services Snow Melt Pit - Ron Ebbesen Arena Arena Operations 1,649, Change Room Upgrade - Plainmen Arena Arena Operations 362,250 4,615, Regional Recreation Centre - Preliminary Design and Servicing Community Development 511,030 6,164,880 76,957, Library Facility Community Development 445,800 27,607, CSR Front Desk Administration Genesis Place 543, South Park & Ride Transit 1,002,000 Total Community Services 445,800 29,514,630 4,615, ,030 7,814,840 76,957,410 Total 2019 MAJOR CAPITAL PROJECTS 8,486,810 85,153,260 38,091,440 41,381,030 38,193, ,837,790 39,853,710 30,304,470 48,153,480 50,286,

24 10 Year Minor Capital Budget Summary by Directorate 23 13

25 CITY OF AIRDRIE 10 YEAR MINOR CAPITAL PROJECT BUDGET SUMMARY BY DIRECTOR BUDGET YEAR 2019 PROJECT # AND PROJECT NAME Department Community Growth & Protective Services Secure Parking & Storage Police Protection 128,980 Total Community Growth & Protective Services 128,980 Community Infrastructure Land Acquisition Strategy Corporate Properties 520,200 19,512, Recreation Facility Land Development Corporate Properties 175,000 1,540,000 1,250,000 1,170, , Arterial Roadway Rehabilitation Engineering Services 900, , , , , , , , Collector Roadway Rehabilitation Engineering Services 360, , , , , , , , , , Local Roadway Rehabilitation Engineering Services 883, , , , , , , , , , Traffic Signals Engineering Services 377, , , , , , , , Traffic Calming - Centre Avenue Engineering Services 373, Traffic Calming - 1st Avenue Engineering Services 373, Arterial Landscaping Engineering Services 75,150 77,630 78,680 79,950 82,200 84,470 86,750 89,040 91,350 93, Soundwall - New and Replacement Program Engineering Services 414, , , , , Intersection Improvements Engineering Services 155, , , , , Pedestrian Linkages Engineering Services 157, , , CPR Upgrades and Improvements Engineering Services Nose Creek Bridge - Edwards Way Engineering Services 456, Nose Creek Bridge - 8 St North of Veterans Blvd Engineering Services 82,200 1,827, Nose Creek Bridge - TWP 274 Engineering Services 76,720 3,404, Traffic and Pedestrian Signal Rehabilitation Engineering Services 138, , , , , , , , , , Traffic Signal - 8 St and Bayside Dr South Engineering Services 360, Traffic Signal - 8 St - Luxstone Ld and Bayside Dr North Engineering Services 372, Bridge Culvert St South of TWP 274 Engineering Services 367, Bridge Culvert RR13 - North of YVB Engineering Services 373, Bridge Culvert RR13 - South of YVB Engineering Services 383, Bridge Culvert RR13 - South of TWP 274 Engineering Services 415, Bridge Culvert RR294 and TWP 264 Engineering Services 415, Bridge Culvert St - South of 40 Avenue Engineering Services 415, Bridge Willowbrook Dr Engineering Services 118, Lifecycle Parks Pathways Program Parks Operations 107, , , , , , , , , , Columbarium - Cemetery Parks Operations 92, , Lifecycle Playground Replacement Parks Operations 223, , , , , , , , , , Lifecycle Pedestrian Bridge Parks Operations 120, , , , , Spray Park Phase II Parks Operations 254, Land Improvment at 105 Towerlane Drive Parks Operations 186, Lifecycle - Outdoor Rinks Parks Operations 173, Erosion Control - Ridgegate Parks Operations 200, Liquid Calcium Storage Expansion Public Works Roads 91, , , Sewer Collection System Rehabilitation Program Sewer Utility 501, , , , , , , , , , Sierra Lift Station Sewer Utility 122, Oil Grit Separator Sewer Utility 624, , , , , South Res. Generator & Pump Upgrades Water Utility 225,240 2,299, Upgrade NE pressure zone control valves Water Utility 200,400 Total Community Infrastructure 4,882,320 6,585,890 5,116,630 7,172,400 4,809,070 5,335,810 6,030,320 5,715,290 9,231,720 24,354,320 Community Services 24 14

26 CITY OF AIRDRIE 2019 CAPITAL PROJECT SUMMARY BY DIRECTOR TEN YEAR PLAN BUDGET YEAR 2019 PROJECT # AND PROJECT NAME Department y Second Floor Renovation- Ron Ebbesen Arena Arena Operations 106, Lifecycle Roof Replacement - Plainsmen Arena Arena Operations 473, Lifecycle Parking Lot - Plainsmen Arena Arena Operations 365, Lifecycle RTU Phase 1 - Upstairs Meeting Rooms/CSR Area Genesis Place 253, Lifecycle Phase II HVAC Genesis Place 383, Lifecycle Phase II Roofsystem Genesis Place 548, Lifecycle Air Handling Units Genesis Place 512,680 1,825, , , , Lifecycle South Parking Lot Toplift Genesis Place 524, North parking lot Genesis Place 1,258, Transit Zone Improvements Transit 164, , , ,490 Total Community Services 164, ,180 3,608, , , , ,370 1,308,510 Total 2019 MINOR CAPITAL PROJECTS 5,175,980 7,461,070 8,724,980 8,086,900 5,192,780 5,808,810 6,548,690 5,715,290 10,540,230 24,354,

27 10 Year Lifecycle Capital Budget Summary by Directorate 26 16

28 CITY OF AIRDRIE 10 YEAR LIFECYCLE AND OTHER CAPITAL PROJECTS BUDGET SUMMARY BY DIRECTOR BUDGET YEAR 2019 PROJECT # AND PROJECT NAME Department CAO Office Lifecycle Council A/V Legislative Services 137, ,550 Total CAO Office 137, ,550 Corporate Services Enterprise Financial Software Financial Services 1,644, Lifecycle and New PC's Technical and Data Services 333, , , , , , , , , , IT Capital Budget Pool Technical and Data Services Lifecycle Storage Technical and Data Services Technology Infrastructure Lifecycle Technical and Data Services Technology Infrastructure New Technical and Data Services 404, , , , , , , , , , , , ,680 75,500 47, ,600 63, , , , ,040 59,830 81, , ,600 Total Corporate Services 932, , ,870 3,015,070 1,076,270 1,343, ,650 1,623,940 1,993, ,540 Community Growth & Protective Services Building Inspector Vehicles Building Inspections 37,860 38,160 41, SCBA System - Lifecycle Replacement Fire Protection 833, Lifecycle Unit 2305 (57 Aerial Unit) Fire Protection 1,605, Gas Detection System - Lifecycle Replacement Fire Protection 36, Thermal Imaging Cameras (TIC) Fire Protection 43, Mobile Command & Rehab Unit Fire Protection 416, New Municipal Enforcement Vehicles Municipal Enforcement 169,730 79,270 Total Community Growth & Protective Services 2,608, , ,470 38,160 77,760 Community Infrastructure Building Operations Van Building Operations 51, Lifecycle HVAC - Halls at the Town and Country Centre Building Operations 153, Lifecycle Roof - Halls at the Town and Country Centre Building Operations 474, Lifecycle - 21 ELH - Exterior Building Operations 97, Lifecycle - Nose Creek Museum - Roof Building Operations 237, Asset Management Program Enhancements Common Services 300, Water Main Oversize Engineering Services 150, , , , , Sewer Main Oversize Engineering Services 72,450 74,620 78,830 83, Lifecycle Unit 253 (Comm) Fleet Services 39, Lifecycle Unit 112 (P/W Grader) Fleet Services 405, Lifecycle Unit 216 (Fleet Truck) Fleet Services 126, Lifecycle Unit 107 (Shared Loader) Fleet Services 306, Lifecycle Unit 275 (Parks Truck) Fleet Services 46, Lifecycle Unit 279 (Build Ops Van) Fleet Services 58, Lifecycle Unit 282 (Parks Truck) Fleet Services 28, Lifecycle Unit 283 (Parks Truck) Fleet Services 28, Lifecycle Unit 291 (Water/Sewer Truck) Fleet Services 173, Lifecycle Unit 326 (Parks Tractor) Fleet Services 47, Lifecycle Unit 342 (Turf Sweeper) Fleet Services 45,