1. CALL TO ORDER 2. ADOPTION OF AGENDA 3. ADOPTION OF MINUTES 4. INFORMATION 5. PUBLIC HEARINGS 6. PRESENTATIONS 7. BYLAWS 8. UNFINISHED BUSINESS

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1 AGENDA Council of the City of Lacombe Monday, October 22, 2018 at 5:00 PM in Council Chambers Time Agenda Item Presenter Regular Meeting of Council 1. CALL TO ORDER 2. ADOPTION OF AGENDA 3. ADOPTION OF MINUTES October 9, INFORMATION Council Mailbox 5. PUBLIC HEARINGS 6. PRESENTATIONS Business Incubator, Central Alberta (BICA) (Ian Foster/Dr. Louicius Michel) 7. BYLAWS Financial Services Bylaw 460 (Henner s Stormwater Outlet Borrowing) (Second/Third Reading) Planning and Development Services Bylaw (Land Use Bylaw Update) (Alignment with Modernized Municipal Government Act) (First Reading) 8. UNFINISHED BUSINESS Sr. Mgr de Bresser Mgr Bonnett 9. NEW BUSINESS Financial Services 2019 Operating Budget 2019 Capital Budget Ten Year Capital Plan ( ) CAO Goudy Sr Mgr de Bresser Sr Mgr de Bresser

2 Council & Legislative Fall Coffee with Council Financial Services Property Tax Request Dir Vaughan Sr Mgr de Bresser 10. REPORTS Mayor and Council Creasey; Gullekson; Hibbs; Hoekstra; Jacobson; Konnik; Ross; CAO 11. NOTICES OF MOTION 12. IN CAMERA Monthly Update (FOIP Sections 27 and 24) Land (FOIP Section 16) 13. ADJOURNMENT Next Meetings Monday, November 5, 2018 Council Committee Meeting Tuesday, November 13, 2018 Regular Council Meeting Monday, November 26, 2018 Regular Council Meeting CAO Dir Vaughan

3 CITY COUNCIL AGENDA REPORT SUBJECT: Bylaw 460 Henners Pond Storm Water Outlet Project PREPARED BY: Justin de Bresser, Senior Manager Financial Services PRESENTED BY: Justin de Bresser, Senior Manager Financial Services DATE: September 24th, 2018 October 22 nd, 2018 PURPOSE: Administration has prepared Bylaw 460, the bylaw required to authorize the borrowing to fund the Henners Pond Storm Water Outlet Project. Administration is recommending that Council give first reading. ACTION/RECOMMENDATION: THAT Council give first reading to Bylaw 460 as presented. THAT Council give second reading to Bylaw 460 as presented. THAT Council give third reading to Bylaw 460 as presented. BACKGROUND: As outlined in the 2018 Capital Budget, the City approved the project that will allow development around the Henners pond area. In order to facilitate this development a storm water outlet will be constructed. ISSUE ANALYSIS: The borrowing is necessary to facilitate the offsite levy funded storm water infrastructure that will support development of the Henners Pond Outline Plan including the Charis Village area. This project was presented to council at the regular meeting on March 26, A link to the presentation can be found at Henner's Pond Stormwater Outlet Design The bylaw provides for the option of financing the project either via debentures through Alberta Capital Finance Authority or through a bank loan. The projected debentures are to be collected through future offsite levies once benefiting properties are developed. City Council Agenda Report/Page 1 of 2 File #: 13/820 (18)

4 The bylaw must be advertised for two consecutive weeks after which electors of Lacombe have 15 days to prepare and submit a valid petition calling for a vote of electors to authorize the borrowing. Administration will provide the option for public feedback on the City of Lacombe s borrowing page. Located at Comments collected through this webpage will be presented prior to 2 nd and 3rd reading. FINANCIAL IMPLICATIONS: The total borrowing for this bylaw is $1,820,000 and will carry both interest and principal payments with semi annual payments. The annual debt servicing cost will be approximately $107,000 per year at current interest rates (3.236% at 25 Years amortization). These payments are tax supported and will be included in the 2019 operating budget. LEGISLATIVE AUTHORITY: Sections, 251, 253, 254 and 258 of the Municipal Government Act, RSA 2000, c. M-26 (the Act ) outline the requirements for borrowing for capital projects. Section 606 of the Act describes the requirements for advertising. Project has been identified in the City s Off-site Levy Bylaw #387. STRATEGIC/BUSINESS PLAN REFERENCE: N/A ALTERNATIVES: 1. Council give second and third readings to Bylaw 460. The bylaw has been drafted using the Alberta Capital Finance Authority template. 2. Council can decide not to give additional readings to the borrowing bylaw and direct administration accordingly. The project can only move ahead once the borrowing bylaw is approved. ATTACHMENTS: City of Lacombe Bylaw Reviewed By CAO, Matt Goudy:

5 CITY COUNCIL AGENDA REPORT SUBJECT: Bylaw Proposed Amendments in to align the Land Use Bylaw with the amended Municipal Government Act PREPARED BY: Jennifer Kirchner, Planner II PRESENTED BY: Deb Bonnett, Planning & Development Manager DATE: October 22, 2018 PURPOSE: The purpose of this report is to present first reading to Bylaw , which includes proposed amendments to Land Use Bylaw 400, with respect to new development and municipal standards set forth in the revised Municipal Government Act, April 1, 2018 consolidated edition. ACTION/RECOMMENDATION: THAT Council give first reading to Bylaw as presented. And THAT Council schedule a public hearing for Bylaw to be held at 5:30pm on Monday, November 26, BACKGROUND: The Municipal Government Act is a provincial regulatory document that outlines and defines the responsibilities of municipalities within the province. The Act requires that municipalities provide good government, good services, facilities and development to maintain safe and viable communities. These responsibilities include but are not limited to planning and development, taxation, and intermunicipal collaboration. Starting in 2014, Municipal Affairs began a large scale review and modernization of the Municipal Government Act. The majority of changes were made through three MGA Review amending bills and their associated regulations which came to force in October The remaining amendments and regulations became effective in early Municipalities must ensure that their bylaws, plans, regulations and operations align with the Municipal Government Act. This requires communities to review and amend their existing documents. In order to assist municipalities with these amendments, Municipal Affairs created a Municipal Government Act Amendments Legislative Checklist, to outline each amendment 1 Reviewed By Matthew Goudy, CAO

6 and highlight what a municipality must do to align with the changes. This document is available as part of this report. ISSUE ANALYSIS Administration prepared Bylaw to incorporate the applicable Municipal Government Act changes into the City s Land Use Bylaw. These amendments deal with the review, issuance and appeal of development permits and subdivision decisions. The changes do not impact the intent of the Land Use Bylaw but rather establishes specific standards for processing development and subdivision applications. These updates include: The new requirement for a Development Authority (City of Lacombe) to assess completeness of a development permit or subdivision application and inform the applicant of its completeness and/or additionally required materials within a specified deadline. o The Development Authority now has 20 days to determine if an application is complete. The current LUB does not have an explicit timeline for this process. o The Development Authority must enter into a written agreement with the applicant to extend the 20 day timeframe. o If the Development Authority fails to determine if the application is complete within 20 days, the application will be deemed complete. o The Development Authority must provide written notification to the applicant to inform them that the application is not complete and outline what information is still required. o The Development Authority must provide written notification to the applicant to inform them if the application is complete. o The Development Authority must provide the written notification of decision on development permits the same day the decision is made. o The Development Authority must make a decision within 40 days after the written notice has been given to the applicant that the application is complete. Any extension to this timeframe must be made as a written agreement. Criteria under which incomplete applications can be refused. o If the applicant does not submit the outstanding information and documents, the application is deemed refused. Written notification, which includes the reason for the refusal, must be included. 2 Reviewed By Matthew Goudy, CAO

7 Information that must form part of the written notice outlining the Development Authority s decision. o The notification shall outline the nature of the application, the decision of the Development Authority, and provide information on how one may appeal the decision. In addition, the notice shall be posted on the City of Lacombe s website and a notice shall be posted on the subject lands, which has the effect of direct notification to any landowner, tenant of land or building within the general area, whose use and enjoyment of property may be affected. Conditions under which permitted use permits may be appealed. o Permitted use permits are now appealable if the the Development Authority determined the application was incomplete and refused the application. Standard timelines for when SDAB appeals must be filed in regards to Development Permits and Subdivision decisions. o The timeframe for appealing a development permit has been extended from 14 days to 21 days. FINANCIAL IMPLICATIONS: There will be required advertising for any and all bylaw amendments. LEGISLATIVE AUTHORITY: Municipal Government Act Land Use Bylaw 400 SERVICE LEVEL IMPACT: Some of the amendments provide specific timelines for the review of applications and the processing of appeals. These new standards may impact the overall length of time it takes to process and issue permits and subdivision approvals. STRATEGIC/BUSINESS PLAN REFERENCE: The proposed amendments to the Land Use Bylaw are required under the revised MGA and are not directly connected with any of the priorities of the Strategic Plan. 3 Reviewed By Matthew Goudy, CAO

8 ALTERNATIVES: THAT Council give first reading to Bylaw as presented and set the public hearing for Monday, November 26, 2018 at 5:30 p.m. THAT Council grant first reading to Bylaw with additional amendments and set the public hearing for Monday, November 26, 2018 at 5:30 p.m. THAT Council table Bylaw and direct administration to prepare additional amendments to the proposed bylaw. THAT Council refuse first reading to Bylaw ATTACHMENTS: Bylaw Municipal Government Act Amendments Legislative Checklist 4 Reviewed By Matthew Goudy, CAO

9 CITY COUNCIL AGENDA REPORT SUBJECT: 2019 Operating Budget Highlights PREPARED BY: Justin de Bresser, Senior Manager Financial Services PRESENTED BY: Matthew Goudy, CAO DATE: October 22 nd, 2018 PURPOSE: To present the City of Lacombe s 2019 Provisional Operating Budget. RECOMMENDATION: THAT Council accepts this report as information, for consideration during the upcoming 2019 budget workshops. ISSUE ANALYSIS: The 2019 Operating & Capital Budget process started in May 2018, when Council was presented and adopted the 2019 budget schedule. Administration has now prepared the 2019 Provisional Operating Budget on a department by department basis, summarizing proposed changes for each area. For information purposes, a 1% tax increase (sometimes referred to as 1 mill ) equals $142, PROVISIONAL OPERATING BUDGET STRATEGY Administration has prepared the 2019 Provisional Operating Budget to reflect the Annual Taxation and Budget Preparation Policy; aligning the tax rate increase to Alberta Consumer Price Index. The July 2017 to July 2018 Alberta CPI is 2.8%. 1 In 2018, Council took a number of steps to improve the City s revenue, and lower expenses. This has allowed the 2019 Provisional Operating Budget to include significant steps toward long term financial viability, and adherence to policy. 1 City Council Agenda Report/Page 1 of 2 File #: 13/820 (18)

10 2019 RESERVE CONTRIBUTIONS AND BALANCES The proposed 2019 Operating Budget represents an increase to the City s historical savings. The budget includes Transfer to Reserve payments totalling just under $2.5M. This contribution will represent nearly half of the total combined reserve balances at year end. The proposed transfers are distributed as follows: 2 Reviewed By CAO, Matthew Goudy:

11 2019 DEBT LEVELS In 2019, the City of Lacombe is making historic investments in long term infrastructure, and economic development. In total, the 2019 Provisional Operating Budget includes $2.6M of new debt, to support development on the west, north, and east sides of the community. In total, $2,498,523 of debt will be repaid, comprised of $975,085 interest and $1,523,438 principal. The resulting increase in annual debt servicing cost (new payments less those retired in 2018), results in an increase of $96,642 over the 2018 annual debt servicing cost. Increase in Borrowing Original Debenture Value Annual Servicing Cost Henners Pond Stormwater Outlet $ 1,820,000 $ 107, Wolf Creek Drive (LMS) $ 750,000 $ 63,737 TOTAL $ 2,570,000 $ 171,23 Debt Retired in 2019 Original Debenture Value Annual Servicing Cost City Hall/Public Works Upgrade $ 1,265,000 -$ 62,009 Lagoon Upgrades $ 220,000 -$ 10,784 S.E. Lift Station $ 1,471,800 -$ 72,146 TOTAL -$ 144,939 See Appendix A for full details. DEBT LIMITS (Budgeted) % Used % Used Total Debt Limit 45,088, % 45,088, % Total Debt 16,176,619 28,985,202 Debt Limit Unused 28,911,531 16,102,948 Debt Servicing Limit 7,313, % 7,313, % Debt Servicing 1,698,443 2,498,523 Debt Servicing Limit Unused 5,615,258 4,873,547 Note Audited Financial Statement Figures 3 Reviewed By CAO, Matthew Goudy:

12 PERSONNEL Wages & Benefits Median Rate In September, Council received a presentation from addressing Strategic Plan Item 4.1.6B to review the City s compensation policy. At that meeting, Council confirmed the compensation philosophy targeting the median wages offered by comparable municipalities. The list of comparators was also reviewed, and confirmed. The presentation highlighted that the last comparator data that was implemented was from 2014 and that, on average, the City s pay bands were approximately 3% to 3.5% below the same bands at comparable municipalities. Achieving the median rate of comparable municipalities requires an adjustment of 3.2% to the City s Wages & Benefits. The 2019 Provisional Operating Budget includes adjustments to the identified bands, ensuring the City remains competitive in attracting and retaining quality staff. Organizational Stability has been a focus for Council, due to the relatively high turnover experienced at the senior level in the past year. Wages & Benefits FCSS and Mary C. Moore Library On October 9 th, Council was presented with information that the City s FCSS and the Library staff wages and benefits are below the 50 th percentile. The estimated increase to bring these internal community groups to the median would be as follows; FCSS - $78,000 Library $32,000 This information has been included for Councils consideration, but comparator data has not been thoroughly analyzed. Currently, wage adjustments for FCSS and Mary C. Moore Library staff are not reflected in the 2019 Provisional Operating Budget. Historic and Comparator Staffing Levels In September, Council requested further information regarding staffing levels. At the City of Lacombe, staffing levels have remained relatively static since 2014, the last date for which data is readily available. In the figures below, City of Lacombe Administration has been separated from Lacombe Police Service, who have an adopted staffing plan. The LPS staffing plan aims to achieve the provincial average in terms of the Population to Officer ratio. Changes to the way casual staffing levels were accounted for in the Kinsmen Aquatic Centre are the source of the increase shown in 2016 actual staffing levels were not increased. 4 Reviewed By CAO, Matthew Goudy:

13 YEAR City of Lacombe Full Time Equivalent Lacombe Police Service (Officers & Civilians) Kinsmen Aquatic Centre Information from the City s comparator municipalities is included below, as per Council request. Caution should be exercised when comparing strictly number of staff, as municipalities have a large variance in the types of services offered, and how those services are delivered. Municipalities may have contracted solid waste services, full-time firefighters, or in-house FCSS staff, for example. Population FTE Equivalent No. employees/100 population Camrose Ft. Saskatchewan Wetaskiwin Beaumont Blackfalds Cochrane High River Olds Stony Plain Strathmore Sylvan Lake Lacombe Average Reviewed By CAO, Matthew Goudy:

14 Proposed New Positions For Council s consideration, Administration has prioritized the following new positions, for consideration in the final 2019 Operating Budget. They are currently included in the 2019 Provisional Operating Budget: Police Service (Sworn Officer and Admin) $101,639 Ultimately, the Lacombe Police Service staff complement is the purview of the Lacombe Police Commission. However, a portion of the 2019 budget request has been allocated to an additional sworn officer and administrative support. The additional officer will raise the Lacombe Police Service s Officer to Population ration to the provincial average. Intern Application $18,000 Administration has applied for a Municipal Intern. This application is through the Alberta Community Partnership, if successful the City would receive $43,000 in grants. $35,000 for salary, $2000 Benefits and $6,000 for expenses. The City would contribute an additional $18,000. The intern s primary function would be to explore the implementation of a Property Assessed Clean Energy (PACE) program in Lacombe. This opportunity has been recently developed through Bill 10 (An Act to Enable Clean Energy Improvements) of the Provincial Government. Casual Administrative Help $20,000 Finance has requested additional resources to help with tasks that are currently not getting completed on a timely basis. This includes filing of land changes, tax notices, and scanning of documents (including Accounts Payable, General Ledger Entries, Accounts Receivable, Cemetery), as well as general office duties as assigned. This position would also cover front service counter in times of vacation and other leave in an effort to improve customer service. Parks Position (2) $80,000 1 position FT for gardener currently 7 months is covered under casual wages 1 Temporary FT equip operator for 5 months Nov March. The gardener will stabilize Parks operation by reducing annual turnover of staff in this position. This will allow the City s arborist to concentrate on arborist duties over the winter, by having a staff to help them. The FT temporary equip operator will take the 3rd route that is typically done by the arborist on snow removal and also allow coverage when FT staff call in sick or are on vacation or training allowing us to be able to accommodate our removal times. Building Maintenance $40,000 This positon is requested to help with general maintenance of all municipal buildings. Duties would include painting, repairs, furniture moving and general upkeep. 6 Reviewed By CAO, Matthew Goudy:

15 Information Technologies (10.5 additional part time hours per week) $25,000 With the growth of the organization the IT department is in need of more assistance. As time goes on, there have been increasing expectations, data creation, maintenance and integration with the organization's day to day tasks. Working with Lacombe Police Services has shown to be very time consuming and this extra time could be used to help better serve that department as well as other city departments. The expanded hours would be used for training staff, taking help desk calls, creating forms for all departments and completing day to day IT tasks. Arena Maintenance $15,000 This position will work to help staff maintain the cleaning of the Arena after major tournaments. This position is estimated to work 20 hours per week over a 5 month period. 7 Reviewed By CAO, Matthew Goudy:

16 Personnel Summary The table below summarizes the Wages & Benefits changes from the 2018 Operating Budget. Changes include - Annual increment increases - Police 1.75% (as per Collective Agreement) % Cost of Living Adjustment for City staff, Council & Police Admin - Adjusting Salaries to the Median (50 th Percentile) of Comparable Municipalities - New Proposed Positions as listed above 8 Reviewed By CAO, Matthew Goudy:

17 GRANTS TO ORGANIZATIONS The community groups presented to Council at the October 9 th Council meeting. The information from this meeting can be found at the following link. Community Groups Presentations. The only external organization that currently has an increase reflected in the 2019 Provisional Operating Budget is the Lacombe Police Service and Echo Lacombe. Inclusion of other groups requested increases is pending Council approval. Entity Library (M.C. Moore) Library Grant in Kind FCSS Provincial Base Grant City Matching Portion Municipal additional Cont. FCSS External Granting CONNEX Received in , , ,914 79,478 6,337 25,000 63,010 Received in , , ,914 79,478 6,337 25,000 76,709 Requested In , , ,914 79,478 6,337 25,000 64,709 Received In ,560 TBD 317,914 79,478 6,337 35,000 64,709 Requested In ,775 TBD 317,914 79,478 15,275 35,000 69,587 *Parkland Regional Library 100, , , , ,720 Historical Society 32,500 32,500 42,500 42,500 42,500 Regional Tourism 42,600 49,000 49,000 49,000 55,960 LAPA 50,000 50,000 50,000 50,000 50,000 Chamber of Commerce 15,000 12,500 13,000 13,000 13,500 Lacombe Days 23,000 25,000 30,000 25,000 25,000 Echo Lacombe 12,000 12,000 20,500 20,500 31,000 Rikubetsu Friendship Society 7,160 13,875 6,500 6,500 6,525 Lacombe Police Commission 2,782,742 2,874,806 3,209,962 3,153,180 3,321,495 Heritage Resources 14,750 24,750 14,250 14,250 14,250 9 Reviewed By CAO, Matthew Goudy:

18 UTILITIES The utility services provided to the residents of the City of Lacombe are self funded through user fees, resulting in a zero impact on the operating budget. The rates and changes to the services and fees are as follows: $ Change Water Fixed $26.22 $26.22 $0 Consumption $ 2.47 $ 2.47 $0 Wastewater Fixed $20.00 $20.00 $0 Consumption $ 2.15 $ 2.65 $0.50 Solid Waste Residential $27.86 $31.76 $3.90 Non-Residential $ $ $6.90 Apartment $17.27 $19.97 $2.70 Trailer Courts $21.80 $24.50 $2.70 An average house consuming 18 cubic meters of water will see an increase of $12.72 a month 10 Reviewed By CAO, Matthew Goudy:

19 2019 OPERATING BUDGET CHANGES - HIGHLIGHTS Changes in Major Revenue Assessment Growth Revenue 0.82% $ 116,397 Supplementary Property Tax 0.51% $ 73,053 Alberta CPI aligned Tax Increase (2.8%) 2.80% $ 398,034 Franchise Fees (Fortis & Atco) 41.10% $ 488,784 Municipal Franchise Fee 29.76% $ 125,798 Term Deposit Interest 20.00% $ 25,000 Total Revenue $ 1,227,066 Changes in Expenses Insurance 2.00% $ 6,880 Fuel, Oil and Gas 26.30% $ 36,452 Electricity (savings through partial rate hedging) -5.58% -$ 73,817 Proposed New Positions (See Personnel) 3.42% $ 299,639 Increase in Wages and Benefits (See Personnel) Cost of Living Adjustment 2.80% $ 245,230 - Police collective agreement 1.75% $ 32,000 - Annual Increments 0.80% $ 109,000 - Median of Comparators 3.20% $ 435,240 Increase in Tax Supported Borrowing (See Debt) $ 109,015 Training and Development (Restoration to Policy) 25.70% $ 31,097 Upgrading and Replacement 12.75% $ 64,706 Various Departmental Expenses (Decreased) -$ 68,376 Balanced $ - 11 Reviewed By CAO, Matthew Goudy:

20 FINANCIAL IMPLICATIONS: Tax Rates The proposed operating budget includes a 2.8% tax increase. An average house in Lacombe valued at $371,748 will see a total increase of $86.94 in 2019 Utilities The proposed Utility rates with a residential house consuming 18 cubic meters of water, and receiving weekly garbage and recycling pickup, will see a $12.72 increase per month in 2019 The City of Lacombe Provisional Operating Budget is presented with total revenues of $43,638,326 and total expenses of $43,638,326 resulting in a balanced budget. LEGISLATIVE AUTHORITY: - Municipal Government Act Section 242, 243, 247, of the Municipal Government Act STRATEGIC PLAN REFERENCE: Fiscal Prudence To Manage the City to Allow for Property Tax Increase Near Inflation a) Reliance on Property Tax Is Reduced c) Property Tax Increases are aligned with the Consumer Price Index Building Capacity To Maintain or Build Capacity within the City Structure a) Plan for succession within City staff ranks b) Conduct reviews of compensation and the City structure Funding for many of Council s Strategic Goals appear in the 2019 Provisional Operating Budget, including: - Strategic Plan Fire Services Review - Strategic Plan Lagoon Reclamations Plan - Strategic Plan Development of Key Performance Indicators - Strategic Plan Active Transportation Plan - Customer Service Improvement Initiatives ATTACHMENTS: - Appendix A 2019 Debenture & Major Debt Borrowing 12 Reviewed By CAO, Matthew Goudy:

21 CITY COUNCIL AGENDA REPORT SUBJECT: 2019 Capital Budget Highlights PREPARED BY: Justin de Bresser, Senior Manager Financial Services PRESENTED BY: Justin de Bresser, Senior Manager Financial Services DATE: October 22 nd, 2018 PURPOSE: To provide Council with the 2019 Capital Budget for consideration RECOMMENDATION: THAT Council accepts this report as information and defer discussion until the November 5 th Council Committee Meeting. BACKGROUND: The 2019 Operating & Capital Budget process started in May 2018, when Council was presented and adopted the 2019 budget schedule. Administration has now reviewed the capital budget on a project basis. The 2019 Provisional Capital Budget identifies $6,524,732 in new expenditures spread through 43 projects. Additional projects from 2018 that remain outstanding will be incorporated into the spring version of the 2019 capital budget. Summaries are included showing the total expenditures and funding by department in schedule 1 and 2. The 2019 Capital Budget presentation focuses on capital projects rather than the departments that are responsible for the projects themselves. Schedule 3 of the budget document highlights through the grouping of assets that are tied to a particular project. Schedule 4 outlines the City s provincial grant sources for This includes both operating (MSI operating) as well as capital grants. Schedule 5 outlines the City s reserve balances for The presentation of the reserve balances is categorized into the following categories (1) operating; (2) capital (3) statutory and contractual City Council Agenda Report/Page 1 of 2 File #: 13/820 (18)

22 balances. The balances have been updated to reflect proposed 2019 operating budget transfers as well as updating opening balances. ISSUE ANALYSIS: Capital Expenditures The City of Lacombe s 2019 Capital Budget will see a total of $6,524,732 in capital projects. Schedule 1 highlights these costs by department. Roads and underground infrastructure are the majority of capital costs for Building improvements, equipment, and vehicles account for the rest of the project costing. Schedule 1 of the 2019 Capital Budget summarizes capital expenditures by department and asset type. Capital Financing Funding for new projects in the 2019 Capital is sourced primarily from grant funding at $3,432 million, with reserves at $1,408 Million. New borrowing is estimated at $1,509,300 as part of the offsite levies for the Henner s pond storm outlet. Funding from Lacombe County for recreation projects has been identified as the City has the usage numbers. A list of projects will be submitted to the County for consideration. County funding is limited to facilities. Playgrounds and trails are not eligible for grant funding. County funding has been identified for airport and fire projects as those projects have been submitted to the County. Schedule 2 of the 2019 Provisional Capital Budget summarizes capital expenditures by department and funding sources Capital Projects The following is a summary of each of the capital projects outlined in the Schedule 3 of the 2019 Capital Budget. Engineering Structures (ex. Roads, Utility Mains, Sidewalks, Lift Stations, Reservoirs, etc.). 1. Annual Sidewalk Replacement $102,800 (Replacement) $102,800 per year has been identified for replacement of concrete infrastructure, with a primary focus on the downtown core. This funding is to eliminate trip points, improve pedestrian accessibility, and improve aesthetic appeal. 2. Northstar Drive Carnation Rd to 58 th St $1,400,000 (Replacement) Design to be completed in Project includes construction and field engineering for the replacement of curb and sidewalk, road base, road surface, water mains, sanitary sewer mains and storm sewer mains. 3. Northstar Drive Valley Cres to Carnation Rd $600,000 (Replacement) Design to be completed in Project includes construction and field engineering for the replacement of curb and sidewalk extension, road base, road surface, water mains, sanitary sewer mains and storm sewer mains. 2 Reviewed By CAO, Matt Goudy:

23 4. Opal Close Hangingstone Drive to End $250,004 (Replacement) Design to be completed in Project includes construction and field engineering for the replacement of approximately 60m of collapsed storm main and associated road base, road surface and curb replacement th St Crescent 58 th St to 52 nd Ave $150,000 (Replacement) Design to be completed in Project includes construction and field engineering for rehabilitating (lining) the sanitary sewer. 6. Northstar Drive Garden Rd to Valley Cres $12,730 (Design Only) Project includes planning for work to be carried out in Project includes the replacement of curb and sidewalk, road base, road surface, water mains and sanitary sewer mains. Construction costed planned for 2020 total $287, Northstar Dr Valley to Valley Cres $38,882 (Design Only) Project includes planning for work to be carried out in Project includes the replacement of curb and sidewalk, road base, road surface, water mains and sanitary sewer mains. Construction costed planned for 2020 total $876, Highway 2A SVR Woodland Drive to Dikens Lane, Heritage $83,903 (Replacement) Project includes planning for work to be carried out in Project includes the replacement of curb and sidewalk, road base and road surface. Construction costed planned for 2020 total $678, Pumphouse A Generator $160,500 (Replacement) Replacement of the 175kW Minneapolis Moline natural gas generator. 10. Unit 506 Sewer Service Camera with Locate $18,056 (Replacement) Replacement of the residential push camera that was purchased in Sewer Main Flush Camera $15,000 (New) This camera attaches to the sewer flushing hose of the City s hydro excavation unit. The camera is propelled down the main line via the high pressure water jets and records the interior of the main line. The data is downloaded to a CPU for viewing. 12. Fairway Drive (South Side ) Curbs, Gutters & Sidewalk $553,500 (New) Project includes the construction and field engineering to install a new sidewalk on Fairway Drive from Westview Drive to 58 th Street. Replacement of curb and gutter and grading/landscaping to tie into existing lawns and driveways will also be required. 13. Lake Connections Henners Heights Storm Main $1,509,300 (New, Carry over) Design to be completed in Project includes the construction and field engineering a storm outlet from Henner s pond to Wolf Creek. 14. Lake Anne to Cranna Gravity Feed Storm Main $120,000 (2019) 3 Reviewed By CAO, Matt Goudy:

24 This project includes the design for a gravity storm connection between Lake Anne and Cranna Lake. Construction costs planned for 2020 total $880, Knightsbridge Drainage Swale $100,000 (New) Design to be completed in Project includes intersection reconstruction including replacement of road base, road surface, curb and gutter and sidewalk and the installation of a new concrete swale to address a local drainage issue that is impacting private property th St at 54 th Ave Drainage Swale $5,700 (Design Only) Project includes planning for work to be carried out in Project includes intersection reconstruction including replacement of road base, road surface, curb and gutter and sidewalk and the installation of a new concrete swale to address a local drainage issue. Construction costed planned for 2020 total $100, th St at 48 th Ave Drainage Swale $5,700 (Design Only) Project includes planning for work to be carried out in Project includes intersection reconstruction including replacement of road base, road surface, curb and gutter and sidewalk and the installation of a new concrete swale to address a local drainage issue. Construction costed planned for 2020 total $100, Airport Move West Fence and finish East Taxiway $33,600 (Replacement) Project based on priorities established by the Lacombe Airport Committee. Project includes the relocation of the west fence to allow for an access and future parking lot off of Hangingstone Drive and paving repairs and an extension of the east taxiway to connect an existing hanger. Project costs to be shared between city, county and Lacombe Flying Club. Buildings 19. City Hall Replace of Roof Top Unit 1 and Unit 2 $40,000 (Replacement) Project includes replacing 2 roof top units at city hall. Part of life cycle planning. 20. Lacombe Memorial Centre Replace Hot water tank $25,000 (Replacement) Project includes the replacement of the Hot water tank due to end of life at the LMC. 21. Aquaplex Air Handling Unit $15,000 (Replacement) Air handling unit replacement is based on lifecycle replacement planning. 22. Aquaplex LED $35,000 (Replacement) Retrofit lighting in the Aquaplex to LED. 23. Aquaplex Replace of Lockers $15,000 (Replacement) 3 year program to replace banks of lockers. Many lockers are broken and are unrepairable. 24. Front Arena Replace Overhead Heaters $50,000 (Replacement) 4 Reviewed By CAO, Matt Goudy:

25 Project includes the replacement of the overhead heaters due to life cycle replacement planning. 25. Front Arena Replace Hot Water Tanks $30,000 (Replacement) Project includes the replacement of the hot water tanks due to life cycle replacement planning. 26. Back Arena Replace Exterior Doors $15,000 (Replacement) Project includes the replacement of the exterior doors of the back arena. Equipment (Mobile, Computer Hardware & Software, Portable) 27. PT 1002 Toshiba East Studio 3540C Copier Common Services $10,000 (Replacement) Replace end of life photocopier located at Public Works Building. 28. Website Optimization $35,000 (Upgrade) This project will see the City of Lacombe s Website upgraded to become more effective with citizen engagement. 29. Capital Budgeting Software $25,000 (New) This project is the second phase of budget software implementation saw the successful implementation of the operating and salaries module. The focus will be to implement the annual capital budget and the 10 year capital plan into this software 30. Asset Management Plan $100,000 (New) This project spread is directly connected to Councils Strategy of developing asset management plans for three major asset classes by the end of Unit Skid steer $4,112 (Replacement) Lease program for bobcat unit as part of Fleet replacement program. 32. Unit Skid steer $4,112 (Replacement) Lease program for bobcat unit as part of Fleet replacement program. 33. Unit 445 Arena trailer $11,060 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the arena department. 34. Unit 603 Zamboni $143,000 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the arena department. 35. Unit 607 Mower with Snow Blade $91,675 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the parks 5 Reviewed By CAO, Matt Goudy:

26 36. Unit Kubota F3990 $46,875 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the Parkss department. Vehicles 37. Police Unit 6L Explorer $49,894 (Replacement) Based on the 10 year capital plan for the Lacombe Police. This is the first replacement of the current Ford Explorer units. Police vehicles are replaced on a 3 year cycle. Vehicles are currently funded from the LPS capital reserve. Price based on current specification. Final cost may be less depending on amount of equipment recovered from the existing unit. 38. Police Unit 6L Explorer $66,853 (Replacement) Based on the 10 year capital plan for the Lacombe Police. This is the second replacement of the current Ford Explorer units. Police vehicles are replaced on a 3 year cycle. Vehicles are currently funded from the LPS capital reserve. Final cost may be less depending on amount of equipment recovered from the existing unit. 39. Unit Chev Colorado $40,245 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the roads department. 40. Unit Dodge Dakota $34,995 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the utility department. 41. Unit 121 or 122 Bylaw Vehicle $45,000 (Replacement) Part of the City Fleet replacement program. Unit at end of life. Currently serves in the bylaw department. 42. Unit 204 Garbage Truck $333,772 (Replacement) End of Life replacement. 43. Unit H Startans Handivan $98,464 (Replacement) End of Life replacement. FINANCIAL IMPLICATIONS: The 2019 Capital Budget is primarily funded from Grants and Reserves. The City of Lacombe 2019 Provisional Capital Budget is presented with total revenues of $6,524,732 and total expenses of $6,524,732 LEGISLATIVE AUTHORITY: 6 Reviewed By CAO, Matt Goudy:

27 Municipal Government Act Section 245,256,247of the Municipal Government Act STRATEGIC/BUSINESS PLAN REFERENCE: Fiscal Prudence To Manage the City to Allow for Property Tax Increase Near Inflation c) Maintain optimal reserve balances and maintain city development at a level that contributes to tax base at an optimal level. ATTACHMENTS: Schedule 1 Capital Expenditure Summary Schedule 2 Capital Funding Summary Schedule Capital Budget Detail Schedule 4 Capital Grant Funding Schedule Reserves 7 Reviewed By CAO, Matt Goudy:

28 TEN YEAR CAPITAL PLAN October 22, 2018 Draft

29 Table of Contents I. Purpose... 1 II. Assumptions... 2 II. Definitions... 3 IV. Applicable Policies... 3 V. Capital Expenditures... 4 VI. Capital Funding... 5 Appendix A - Capital Expenditures Appendix B Capital Funding

30 I. Purpose The Purpose of the Year Capital Plan is to outline the future capital requirements of the City of Lacombe based on Council priorities and existing infrastructure maintenance requirements. In addition to identifying the City s capital expenditure needs for the next 10 years, the plan also identifies potential funding sources to fund these capital expenditures. Expenditures are grouped based on asset type in accordance with the City s Tangible Capital Asset Policy (#13/ (09)). Expenditures are also grouped based on need, either as an expenditure to replace a current assets or an upgrade which is either an expansion of a current asset or a new asset altogether). The plan has identified specific funding for all items within the 10 year budget. To accomplish this goal, significant capital has been deferred and a significant reduction in reserves has been forecasted. This draft includes the following updates: Major Deferrals 1. Deferral of C&E Trail upgrades from 63 Avenue to end of corporate boundary ($10,000,000) to 2029 or later. 2. Deferral of the Vadim Software replacement project ($200,000) to Deferral of major trails to New Public Works building ($6,960,000) remains deferred outside the 10 year horizon. Excluded Projects The following projects are not included in the multi-year capital plan: 1. Provincial Building renovations are not included in the plan. A list of all changes starts on page 7. This document is a planning document and is not an approval document. Though this document provides the basis for annual capital budgets, the 10 Year Capital budget is not authorization to proceed with any capital expenditure identified in the

31 Page 2 plan. The 10 Year Capital Plan will serve as the basis for the City s approved Multi Year Capital Plan required as a condition of funding for both federal and provincial capital programs. II. Assumptions The City of Lacombe s Ten year Capital Plan has been designed based on a number of working assumptions: 1. The ten year capital plan becomes the Council approved document for multiyear capital planning. The plan does not factor in capital expenditures for years outside of the 10 year horizon. As such, the plan is fully funded. 2. Costs are based on 2019 costs. Inflation is not factored into future expenditures unless specific future costs are known. For 2019, vehicle and equipment replacement costs have been indexed on an average of 5% inflation for all assets. 3. Whenever possible, replacement of current assets is based on overall condition rating for that class of asset and based on existing engineering studies. 4. Upgrades and new assets are identified using projected requirements and any existing engineering studies. 5. Grant funding is based on funding agreements currently in place. a. The Federal Gas Tax Fund is assumed to be indexed as of 2019 and eligible projects expanded to include recreational facilities. b. Grant balances are based on project 2019 allocations and year end balances. 6. Population growth is based on an annual growth rate of 2% and is projected using the 2016 Municipal census. 7. No interest revenue is recognized in reserve balances. 8. Water, wastewater and solid waste utilities are self-funded from monthly revenue generated from customers. Capital expenditures, debt payments will be funded specifically from these revenues. 9. Grant and reserve funding is applied on a general basis. Annual budgets will match specific grants and reserves to specific projects. 10. Borrowing requirements are based on specific projects, terms and interest rates. Borrowing is limited to new/upgrade assets. Interest rates are the rates at the time of this report. 11. Based on the 2016 new offsite levy report, new offset levy infrastructure projects will be partially debt financed to front end construction until developer contributions are collected. Projects in 2019 and 2020 will be partially debt financed. 12. Excess surpluses are not identified as a potential source of funding. 13. Annual capital budgets may vary from the plan based on changes in asset conditions and/or priorities. 14. The 10 Year Capital plan will be updated on annual basis. 15. The plan identifies a target annual contribution to reserves/capital expenditures. It does not address any shortfall in this annual contribution.

32 Page Future revenue growth is not considered in the plan and future transfers to reserves are based on current budget transfers unless otherwise noted. 17. Future assets transferred from developers are not identified in the plan until the time they are actually transferred. II. Definitions The plan includes terminology specific to the plan. For ease of reading the following definitions apply: 1. Capital Assets An asset that provides long term benefit to the City and its value is in accordance with the City s Tangible Capital Asset Policy. 2. Capital Expenditure The value of replacing or acquiring a capital asset as identified in the budget in today s dollars. 3. Capital Replacement An expenditure that replaces an existing capital asset that meets the standards of the day with minimal increase in capacity. This includes renovations that extend the life of an existing asset. 4. Capital Upgrade An expenditure that results in the acquisition of a new capital asset or significantly increases the capacity of an existing capital asset. IV. Applicable Policies The 10 year capital plan has been prepared in accordance to the following Council Policies: 1. City of Lacombe Tangible Capital Asset Policy #13/ (09) 2. City of Lacombe Debt Management Fiscal Policy #13/201/02 (2012) 3. City of Lacombe Reserve and Equity Accounts Policy #13/201/01 (2012) In addition, capital priorities and costs are derived from a number of other documents including engineering studies, statutory documents including: 1. Municipal Development Plan, 2. Area Structure Plans & Outline Plans Recreation & Culture Master Plan 4. Trail Master Plans - Updated

33 Page Transportation Master Plan Offsite Bylaw Levy Update Cemetery Master Plan As these documents are updated and approved by Council, the 10 year capital plan will also be updated. V. Capital Expenditures Appendix A outlines in summary and detail the 10 year capital expenditures for the City of Lacombe. In total, the plan calls for $52.3 million in expenditures over the next 10 years, a reduction of $9.09 million from the plan. The plan includes $38.33 million in replacement expenditures and $14.03 million in upgrades and new capital. Capital expenditures in Appendix A are detailed in the following categories: 1. Engineering Structures Network assets (linear assets in the street). - $21.96 million. Overall $8.63 million decrease over last year s plan. The reduction is mainly due to the west area servicing project that will be included in the 2018 carry over projects. $2.4 Million has been identified for 34 th Street from Highway Engineering Structures Major Assets (major capital road, water, wastewater & storm assets such as traffic lights, and lagoons). - $11.64 million. Overall there is a $1.50 million decrease from previous year s plan. 3. Facilities Buildings - $3.18 million. Overall, decrease of $0.369 million in total expenditures. Includes minor reductions over several years. 4. Equipment Portable and mobile equipment (including heavy equipment). - $3.55 million, an increase of $0.270 million. Primary increase due movement in the prices in the equipment replacement schedules. 5. Land Improvements Parks, playgrounds, trails, parking lots. - $2.287 million, a slight increase of $26,000 from last year s plan.

34 Page 5 6. Vehicle Replacement and upgrades cars, trucks, emergency vehicles. Items which are road legal and require licensing. - $9.249 million, an overall increase of $1.11 million. Revised vehicle replacement schedule has shown an increase needed 2025 VI. Capital Funding Appendix B outlines in summary and detail the proposed funding for the 10 year capital plan. To fund the $52.36 million in expenditures the plan calls for the following: 1. $32.21 million in annual and one time provincial, federal grants and funding from Lacombe County, an increase of $0.80 million. Grant funding is primarily from the Federal Gas Tax Fund and the Municipal Sustainability Initiative Grant. 2. $13.05 million in reserve contributions, a decrease of $0.88 million. 3. $2.50 million in known developer contributions, donations, and future offsite levies. These are expected contributions. These contributions may have to be covered by borrowing depending on the timing of constructions and contributions. Projects will only proceed if development occurs. 4. $4.59 million in new debt and long term borrowing to cover the offsite levy infrastructure including the Henners Strom Water Outlet project. City projects include Reservoir B upgrades and Highway 12 infrastructure upgrades. Appendix B provides the following detail: 1. Capital Grants 2. Existing Debt 3. Proposed New Debt 4. Reserves Major changes in financing include the following: 1. Offsite levies are reported as revenue for offsite based infrastructure. Debt financing may be required for bridge financing of the projects. 2. Debt has been identified for the Henners Storm Pond Outlet which may mean tax supported debt. 3. Specific projects are financed from specific sources included actual reserve accounts. Reserve accounts are projected to run in deficit positions in some years, however, the overall reserve balance remains in a positive position.

35 CITY COUNCIL AGENDA REPORT SUBJECT: Coffee with Council Feed Back Summary - Fall 2018 PREPARED BY: Brenda Vaughan, Community Services Director PRESENTED BY: Matthew Goudy, Chief Administrative Officer DATE: October 22, 2018 PURPOSE: Comments received from Lacombe residents at the Fall Coffee with Council session, held on September 12, 2018, are presented for information purposes. RECOMMENDATION: THAT Council accept the Resident Comment Summary from the 2018 Fall Coffee with Council session as information. BACKGROUND: Coffee with Council sessions are held semi-annually to give Council an opportunity to interact with residents in an informal setting, and to give residents a chance to meet their Councillors face to face, and to bring forward any issues, concerns, ideas and suggestions regarding municipal affairs. The sessions also give City administration an opportunity to update residents on programs and initiatives underway or under consideration. An inventory of comments is attached. Items considered normal workflow or activities have been forwarded to appropriate City Administrative departments for review and consideration. The balance of comments are provided to ensure all of Council has the opportunity to review all citizen input. ISSUE ANALYSIS: Common themes at the September 12 session included traffic, garbage and customer service. Public turnout is difficult to pinpoint due to the nature of the event, but several dozen people interacted with Council over the 2.5 hours allotted. City Council Agenda Report/Page 1 of 4 File #: 33/611-01

36 Traditionally, attendance at these sessions has been variable. The turnout at the 2018 Fall Coffee with Council session was relatively good, and engagement amongst visitors was strong. Some of the issues identified in past years (archived at FINANCIAL IMPLICATIONS: The 2018 Budget included $500 for Coffee with Council (one session). LEGISLATIVE AUTHORITY: City of Lacombe Public Participation Policy No. 11/ PO Municipal Government Act Part 7, Section 216.1(1), Public Participation SERVICE LEVEL IMPACT: Coffee with Council sessions provide one of several platforms aimed to optimize access to City Council. STRATEGIC/BUSINESS PLAN REFERENCE: City of Lacombe Strategic Plan Sustainability Pillar: Governance Open and Accessible Government a) Make the work of Council more accessible ALTERNATIVES: Alternatives are available to Council: 1. THAT Council accept the 2018 Fall Resident Comment Summary as information. 2. THAT Council direct Administration on how they wish to proceed. ATTACHMENTS: 2018 Fall Coffee with Council Resident Comment Summary 2 Reviewed By CAO, Matthew Goudy

37 CITY COUNCIL AGENDA REPORT SUBJECT: Property Assessment Error PREPARED BY: Justin de Bresser, Senior Manager Financial Services PRESENTED BY: Justin de Bresser, Senior Manager Financial Services DATE: October 22 nd, 2018 PURPOSE: To present for Council s consideration an error on a property assessment role that has resulted in overpayment of property taxes. RECOMMENDATION: THAT Council decline the request to credit roll number # BACKGROUND: The City received notice from the owners of roll # that they have been over paying property taxes based on an error in above grade square footage. When the house was built in 2004, the previous property assessors mistakenly listed the house as 1566 square feet instead of the correct value; 1249 square feet. In 2018 the current owners (purchased property in 2011) attended the property tax assessment open house. When reviewing their properties details with the assessor, the discrepancy in the square footage was determined. Administration confirmed the previous property assessor did incorrectly add square footage above grade based on plans the City has for the property. Assessors have made changes in the current year to reflect the actual square footage. ISSUE ANALYSIS: In the Municipal Government Act Section 305(1)(a) it states that the assessor may correct the assessment roll for the current year only. The property assessor did make the change once it was found for the 2018 assessment year. Additionally, the owners of the property have requested a refund of overpaid taxes since purchasing the property in City Council Agenda Report/Page 1 of 2 File #: 13/215/2018

38 Each year in February the city sends out a current property assessment notice. This is completed after the contracted property assessor has completed the updated assessment and submitted the information to the city. The residents then have a 60 day appeal period which starts with the notice of assessment date. This gives the property owners sufficient time to contact the city or the assessor should they have any questions about their assessment. Administration hosts an open house every year, giving rate payers the opportunity to sit one on one with the property assessor, and review their assessment details. Administration also ensures that there is sufficient local advertising (newspaper, radio, and social media) to help increase awareness that the assessment notices have been sent out and of the appeal date deadline. As Administration provides ample opportunity each year for the tax payers to review their notice and contract the assessor it is recommended that no credit is given. Tax forgiveness, refund or deferrals would have to be directed from Council. Section 347(1)(b) of the Municipal Government Act states that if council considers its equitable to do so, they may cancel or refund all or part of a tax. FINANCIAL IMPLICATIONS: The table below indicates the assessed value as well as the reduced value based on the actual square footage. The total credit would be $2, If a credit was awarded to the property owners the financial implication would be a total credit of $ for the years of This would be absorbed in the current financial year. 2 Reviewed By CAO, Matthew Goudy