table of contents Budget

Transcription

1 Budget

2 table of contents Red Deer County Corporate Identity...3 Community Profile...5 Council Profile...9 Message from the Mayor...10 Message from the CAO...11 Executive Summary...12 Budget Highlights...15 Budget Timeline...21 Organization Chart...22 Staffing Distribution...23 Overall Consolidated Budget...24 Reserve Summary...25 Net Service Level Budget ( )...27 Contributions to Other Agencies...29 Funding Sources...30 Capital Budget by Directorate Overall...33 Community Services...34 Corporate Services...36 Operations Services...39 Planning & Development Services...51 Protective Services...52 Operating Budget by Directorate General Governance...54 Corporate Services...55 Community & Protective Services...63 Operations Services...74 Planning & Development Services...86 Appendices Appendix: i - Red Deer County Information...91 Appendix: ii - Strategic Plan...93 Appendix: iii - Policies (Financial Planning)...95 Appendix: iv - Policies (Accounting for Tangible Capital Assets)...97 Appendix: v - Policies (Financial Reserves) Appendix: vi - Policies (Financial Budgeting and Reporting) Appendix: vii - Policies (Asset Management) Appendix: viii - Policies (Revenue Policy) Appendix: IX - Policies (Debt Management) Appendix: X - Fee Bylaw Appendix: XI - Glossary

3 corporate identity vision Red Deer County is recognized for the provision of effective services through leadership, consistent decision making and open communications. mission Providing approachable, responsible and accountable government. philosophy We believe that mutual trust and respect, shared responsibility and open communication are essential for teamwork, achievement and success in our organization. core values At Red Deer County, we build relationships with a foundation of respect. Communication and cooperation enable us to be effective and efficient. We are dynamic and dependable and value integrity, professionalism, teamwork, safety and innovation. 3

4 The Government Finance Officers Association (GFOA) of the United States and Canada awarded Red Deer County with the Distinguished Budget Presentation Award for a three year period beginning January 1, Red Deer County endeavours to continuously improve on its budget presentation, enabling a clearer perception of the organization s efforts to provide approachable, responsible and accountable government. We submit our in consideration for a Distinguished Budget Presentation Award. 4

5 POPULATION: 19,541 MEDIAN AGE: MALE 43.4 FEMALE 43.8 ELECTORAL DIVISIONS: 6 COMMUNITY PROFILE A SOCIO-ECONOMIC PROFILE CROP ACRES: 559,816 (2011) NUMBER OF BUSINESSES: 1134 PROPERTY ASSESSMENTS NON-RESIDENTIAL: 48% RESIDENTIAL: 52% AVERAGE HOUSEHOLD INCOME: $157,417 AVERAGE HOUSEHOLD DISPOSABLE INCOME: $120,800 TAXES: $36,615 IN THE LABOUR FORCE: 12,080 EMPLOYED: 10,922 PARTICIPATION RATE: 73.6% TRANSPORTATION: Red Deer County is located at the crossroads of major air, rail, and ground transportation. Conveniently located between Calgary and Edmonton, Red Deer County is at the crossroads of major air, rail and ground transportation. Easy access to major markets allows businesses to compete on a regional and global stage. 5

6 COMMUNITY PROFILE 6

7 COMMUNITY PROFILE 7

8 COMMUNITY PROFILE 8

9 2017 COUNCIL PROFILE Red Deer County Council is comprised of a Mayor and six Councillors with one Councillor elected from each division. Each Council member serves a four-year term (term increased from three years after the 2013 election). Duties & Function Governed by the Municipal Government Act, Council passes bylaws that provide for, develop and maintain safe and viable communities. These bylaws include matters such as the safety, health and welfare of people and property; business activity; recreation; public utilities; nuisances; transportation and wild and domestic animals. Red Deer County Council conducts bi-weekly Council and Municipal Planning Commission meetings. These meetings are open to the public, and allow for public input into municipal affairs. The Mayor is the default Chair of all Council meetings, unless otherwise specified. A Councillor is chosen by their peers to be Chair of the Municipal Planning Commission. Jim Wood Mayor Philip Massier Division One Jean Bota Division Two Don Church Division Three Connie Huelsman Division Four Richard Lorenz Division Five Christine Moore Division Six

10 Message from the MAYOR As you know, 2016 was a challenging year for Central Alberta. The resource economy combined with difficult harvest weather made for tough conditions all round. Despite these conditions, I am proud to say that Red Deer County remains in a very healthy financial position. First and foremost, this budget shows strong financial stewardship by staff and Council. With last year s switch to multi-year budget reporting, members of the public can now see in greater detail the plan that Council has for providing high quality services to our ratepayers. With three year operating, and five year capital budgeting, the County is making fiscal transparency a real priority. A major theme moving forward is partnerships. We continue to partner with our urban neighbours to ensure that first class facilities are available to County residents. We are also working with the Province (particularly Alberta Transportation) on major work to the QEII highway and its links to Gasoline Alley. We also continue to campaign for support from the Province for our bridge projects, which will require major funding over the next 5-10 years. Development continues to happen within our borders. Both residential and commercial development can be seen throughout the County. This development increases our tax base, and diversifies our economy at a time when diversity is needed. As we enter a new year, I am extremely optimistic about our position not only from a financial standpoint but as a true destination for business and personal growth. After all, Red Deer County remains one of the greatest places in the world to live, work, and grow. Sincerely, Mayor Jim Wood 10

11 Message from the cao Red Deer County staff continuously strive to provide a fair balance between high quality services and reasonable tax rates. This is especially true during challenging times for the local economy. Staff have been very diligent on continuing important work, while not burdening the taxpayer. The operating budget for the next three years remains very consistent (around $45 million dollars). Meanwhile, our capital projects budget will see a major decrease from $27 million in 2017 down to just over $20 million in This financial planning ensures that Red Deer County remains in a very strong fiscal position over the next three to five years. Key elements of this year s budget include: Construction of 2 new roundabouts in Gasoline Alley. These roundabouts will become key links for traffic as they come from the city of Red Deer or from the QEII highway. Red Deer County has seen tremendous growth in Gasoline Alley, and traffic management is now extremely important. The County will continue an aggressive bridge repair program. Our 5 year average spend on bridges is just under $4 million per year. Council will also continue to lobby the Provincial government for additional funds to assist with bridge repair. Major upgrades are coming to different facilities in Red Deer County. Council has approved funding for the Delburne Agriplex, the Sylvan Lake Multiplex, and for a new community hall in Bowden. These facilities are key for enhancing the quality of life for our residents. I would like to thank staff for their efforts in creating this budget. We are in very capable hands when it comes to County finances, and I am confident that Red Deer County remains in a healthy fiscal position. Sincerely, Curtis Herzberg, County Manager/CAO 11

12 executive summary Located in the heart of Central Alberta, Red Deer County is a thriving municipality of more than 19,500 residents. The County is over 4,000 kms square, with more than 80 residential subdivisions, 8 industrial/ commercial parks, and sixteen municipalities of various sizes within its borders. The County is home to the Red Deer Airport, major rail service, and over 3,000 km of local roads. Multi-year budgeting has provided Red Deer County with a stronger strategic resource planning process and readers with a greater understanding of future financial plans for the County. In 2016, we implemented our first multi-year budget with the goal of amending it annually. Budget years that have been approved are updated based on revised assumptions, the additional year is added; providing the County with a multi-year budget that is always relevant. This Operating budget covers 2017 to 2019, and the Capital budget is for a five year term (2017 to 2021). Red Deer County competitively tenders for alternate service delivery contractors to maintain its road network. Road maintenance consists of small repairs, re-gravelling, roadside brushing and drainage, signage and snow removal. CHALLENGES Like all modern municipalities, Red Deer County faces certain challenges during its routine operations with over 3,000 km of roads, bridges, and other infrastructure, keeping everything in working order is a constant concern. As a County with both rural (farm and acreage) residents and urban style subdivisions, Red Deer County must balance the needs of all ratepayers. A specific issue for the County is bridge maintenance. A recent study shows that a minimum of $76M will be needed over the next 20 years to keep our bridges in good repair. This was formerly a Provincial government responsibility, but has since been allocated to the Municipal level. Red Deer County is hopeful that support from other levels of government will be added in time. Due to the decrease in linear power and pipeline assessment and to take advantage of current low construction prices, Council has mandated to fund road construction costs from our current reserves, enabling optimal usage of funds. Reserves are intended to be used at times such as this. It is an unsustainable practice over the long haul but Council considers that this is a short term and justified purpose. Over this 3 year budget, reserves are estimated to be drawn down by $19.8M; leaving reserves in a secure position of $26.9M at the end of GROWTH Like most Alberta municipalities, Red Deer County has noted that rapidly falling oil prices can stunt economic growth. However, our diverse tax base is somewhat mitigating that issue. Our location (Calgary / Edmonton corridor), industry diversity and business promotion strategies are showing positive impacts in that regard. Plans in 2017 include conducting Off Site studies at the QEII & HWY 42 junction, Gasoline Alley and Springbrook. The County may consider promoting the development of these areas in the future. BASIS OF BUDGETING AND FUND STRUCTURE Red Deer County uses modified accrual basis for budgeting. Budgets are balanced by determining operating and capital costs based on current levels of service and then determining the tax rate. Tax rates are set when it is known what Council s priorities are for the year(s) in the budget process. Reserves are used to carry forward funds, to net out special levy expenses and to fund specific capital or one-time operating expenses. The financial statements are prepared using full accrual accounting methodology. 12

13 executive summary TAXES This 3 year Operating budget does not include any change to tax rates, however, it does reflect a decrease to Assessment values due to power and pipeline assessment. As a result, we predict a decline in taxation of $1.2M in 2017; $2.8M in 2018; and $3.8M in Oil and well drilling taxes are also expected to fall further in Any bankruptcies in the sector will lead to defaults on outstanding taxes in 2016 our bad debt expense increased by $800,000. The projected assessment for tax years 2017, 2018 and 2019 are an estimate based on the trend over the past four years taking into account approved subdivisions that are not yet registered and the economic downturn. Assumptions: Machinery and equipment assessment values generally decrease approximately 3% per year due to depreciation. Liberty Crossing subdivision was approved for 833 dwelling units in 2015 and is still in the development stage. A development permit for a new grain terminal was approved in 2016 and will likely proceed for development in Both projects will add to the County s tax base. Further development in the Gasoline Alley business park continues to grow at a steady rate. Economists anticipate no immediate reprieve to the economic downturn. REVENUES Taxes are the primary source of revenue for Red Deer County. OTHER Utility rates are projected to increase due to a new fee by-law. The new rates will enable County utility fees to move toward Council s philosophy of a costs recovery (user pay) model and to not be subsidized by other revenues. Safety Codes permits were a new revenue source for Safety codes services will also follow a 100% costs-recovery model. EXPENSES The budgetary plan for Red Deer County is to maintain existing levels of service. In 2017, we see a decrease in capital expenditures, as we adjust for revenue loss. Key Initiatives for 2017 and beyond: Bridge Repairs - $3.3M (2017); 5 year average - $3.9M Gasoline Alley Roundabouts (2) and major upgrades to Laura and Waskasoo Ave $7M Several Offsite studies QEII & HWY 42, Gasoline Alley, Springbrook Infrastructure studies Benalto & Spruce View Airport capital expansion request Taxiway C upgrades $175,000 (our portion) shared with City of Red Deer. Sylvan Lake Multiplex contribution (2017) - $709,012 (2nd year and final) Canada Winter Games contribution (2017) - $250,000 (2nd year and final) ASSET MANAGEMENT Although the County has always carefully managed assets, there are new best practices. We have commenced a project to better track the condition and replacement values of our assets. We are moving into a stronger long term financial planning process that considers asset management as an integral part of that picture. In 2017, we have budgeted for a pavement condition study and we will hire a contract position to build and lead our asset management priorities among other initiatives. 13

14 executive summary LONG TERM FINANCIAL PLANNING (LTFP) POLICIES In 2016, Council adopted six long-term financial planning policies to enable Red Deer County to plan for a consistent level of essential services over a multi-year period. Administration is in the process of implementing these policies to identify future financial challenges and opportunities through financial forecasting and analysis. Based upon that information, Administration can then devise strategies to further achieve financial sustainability. The policies include: Financial Planning, Accounting for Tangible Capital Assets, Financial Reserves, Financial Budgeting and Reporting, Asset Management, Revenue Policy and Debt Mangement. (See Appendices for detailed policies). These long-term financial policies (LTFP) will benefit the County in many ways but the most important benefits include clarifying strategic intent, managing sustainable growth (or low growth), stabilizing tax rates and determining service levels and priorities for the future. This is the first step to developing our LTFP. A full time equivalent (FTE) has been budgeted to hire a Financial Analyst to assist with building a LTFP and conducting Service Level reviews. A LTFP is in our current Council Strategic Plan. STAFFING The cost of staffing is one of our primary operating costs and we are always cognizant of the impact to tax dollars while ensuring efficient and effective service delivery to our County residents. Staffing levels change slightly in 2017 with the addition of one FTE in Finance, two contract term positions (Fire Smart & Assessment both are cost neutral from other funding sources), two additional seasonal Agricultural positions (Vegetation control & Roadside seeding), Agricultural municipal maintenance coordinator (moving from seasonal to FTE) and an Agricultural Administrative position moving from temp to 1 year contract. There are no staffing changes expected in subsequent years. STRATEGIC PLANNING The budget process is tied directly to goals that are developed in the Strategic Plan (Appendix II). Council set a long term vision at the beginning and mid-point of the election term, reviewing and prioritizing annually. In conclusion, this is an achievable and fair budget. It ties in very closely to the Strategic Plan for the County maintaining current services levels and being prepared for future development. A key component to the budget is maintenance of our current infrastructure such as bridges, roads, water and sewer systems and buildings. Respectfully submitted by: Heather Gray-Surkan, CPA, CGA Director of Corporate Services 14

15 budget highlights EXPENDITURES 2017 Operating Capital Total Infrastructure and Roads ($40M) 18,541,105 21,431,528 39,972,633 Agriculture ($2.2M) 1,965, ,000 2,225,459 Water, Waste Water & Waste ($8.5M) 5,604,238 2,876,186 8,480,424 Council and Legislative ($1.5M) 1,524,864-1,524,864 Corporate Services ($6.4M) 5,883, ,000 6,423,303 Community Services ($6.9M) 4,910,741 1,984,976 6,895,717 Protective Services ($4.1M) 3,290, ,000 4,155,280 Planning and Development ($3.5M) 3,499,583-3,499,583 45,219,573 27,957,690 73,177,263 Contingency & Capital Debt 1,062,440 HOW FUNDS ARE ALLOCATED BY RED DEER COUNTY 9% 6% 5% 55% Infrastructure and Roads ($40M) Agriculture ($2.2M) 74,239,703 9% 2% Water, Waste Water & Waste ($8.5M) Council and Legislative ($1.5M) Corporate Services ($6.4M) Community Services ($6.9M) 11% 3% Protective Services ($4.1M) Planning and Development ($3.5M) KEY INITIATIVES FOR 2017 INCLUDE: Bridge Repairs Gasoline Alley Roundabouts (2) and major upgrades to Laura & Waskasoo Ave Delburne Arena Sylvan Lake Multiplex contribution (2017-2nd year) Canada Winter Games contribution (2017-2nd year) Airport capital expansion request - Taxiway C upgrades (County portion) $3,325,000 $7,200,652 $1,509,976 $709,012 $250,000 $175,000 15

16 budget highlights FUNDING SOURCES 2017 Red Deer County s primary source of revenue is derived from property taxes. Tax rates are determined in the spring, once individual property assessments are calculated. Municipalities also collect school taxes, whose rates are set by the Province. Total Taxes 43,837,554 Government Grants 7,405,202 Other (sales, user fees, permits, etc.) 8,510,789 Cost Recovery 1,450,225 Offsite Levies 7,298,040 Transfers from Reserves 5,737,893 Total Funding Sources 74,239,703 Reserves The anticipated County reserve position for 2017 is: $41M SOURCES OF TAX REVENUE IN RED DEER COUNTY 21% 3% 30% 8% Farmland ($1.5M) Residential ($13M) Non-Residential ($16.5M) Machinery & Equipment ($3.4M) Linear ($9.4M) 38% 16

17 budget highlights EXPENDITURES 2018 Operating Capital Total Infrastructure and Roads ($33.7M) 18,255,425 15,482,938 33,738,363 Agriculture ($2M) 1,818, ,000 1,983,591 Water, Waste Water & Waste ($5.5M) 5,539,768-5,539,768 Council and Legislative ($1.5M) 1,531,324-1,531,324 Corporate Services ($6M) 5,775, ,000 5,976,098 Community Services ($4.4M) 4,435,401-4,435,401 Protective Services ($4M) 3,168, ,000 3,993,143 Planning and Development ($4.8M) 4,732,812 40,000 4,772,812 45,256,562 16,713,938 61,970,500 Contingency & Capital Debt 700,000 62,670,500 HOW FUNDS ARE ALLOCATED BY RED DEER COUNTY 8% 10% 7% 6% 54% Infrastructure and Roads ($33.7M) Agriculture ($2M) Water, Waste Water & Waste ($5.5M) Council and Legislative ($1.5M) Corporate Services ($6M) Community Services ($4.4M) 3% Protective Services ($4M) 9% 3% Planning and Development ($4.8M) KEY INITIATIVES FOR 2018 INCLUDE: Bridge Repairs Road Paving Program Township Road 370 Upgrades $4,105,000 $1,000,000 $4,757,938 17

18 FUNDING SOURCES budget highlights 2018 Red Deer County s primary source of revenue is derived from property taxes. Tax rates are determined in the spring, once individual property assessments are calculated. Municipalities also collect school taxes, whose rates are set by the Province. Total Taxes 42,265,941 Government Grants 6,100,000 Other (sales, user fees, permits, etc.) 8,960,266 Offsite Levies - Cost Recovery 120,000 Transfers from Reserves 5,224,293 Total Funding Sources 62,670,500 Reserves The anticipated County reserve position for 2018 is: $35.8M SOURCES OF TAX REVENUE IN RED DEER COUNTY 18% 4% 31% Farmland ($1.4M) Residential ($13.3M) 8% Non-Residential ($16.6M) Machinery & Equipment ($3.3M) Linear ($7.5M) 39% 18

19 budget highlights EXPENDITURES 2019 Operating Capital Total Infrastructure and Roads ($37.6M) 18,360,299 19,215,000 37,575,299 Agriculture ($2M) 1,893,686 80,000 1,973,686 Water, Waste Water & Waste ($5.6M) 5,650,522-5,650,522 Council and Legislative ($1.5M) 1,555,510-1,555,510 Corporate Services ($6.2M) 5,873, ,000 6,171,251 Community Services ($4.7M) 4,681,444-4,681,444 Protective Services ($4M) 3,259, ,000 4,069,137 Planning and Development ($3.3M) 3,282,007-3,282,007 44,555,856 20,403,000 64,958,856 Contingency & Capital Debt 700,000 HOW FUNDS ARE ALLOCATED BY RED DEER COUNTY 5% 6% 7% 58% Infrastructure and Roads ($37.6M) Agriculture ($2M) 65,658,856 10% 2% Water, Waste Water & Waste ($5.6M) Council and Legislative ($1.5M) Corporate Services ($6.2M) Community Services ($4.7M) Protective Services ($4M) 9% Planning and Development ($3.3M) 3% KEY INITIATIVES FOR 2019 INCLUDE: Bridge Repairs Road Paving Program $4,095,000 $6,000,000 19

20 budget highlights FUNDING SOURCES 2019 Red Deer County s primary source of revenue is derived from property taxes. Tax rates are determined in the spring, once individual property assessments are calculated. Municipalities also collect school taxes, whose rates are set by the Province. Total Taxes 41,529,980 Government Grants 6,100,000 Other (sales, user fees, permits, etc.) 9,128,416 Offsite Levies - Transfers from Reserves 8,900,460 Total Funding Sources 65,658,856 Reserves The anticipated County reserve position for 2019 is: $26.9M SOURCES OF TAX REVENUE IN RED DEER COUNTY 15% 3% 8% 33% Farmland ($1.5M) Residential ($13.5M) Non-Residential ($16.9M) Machinery & Equipment ($3.2M) Linear ($6.4M) 41% 20

21 2017 budget timeline July 13, 2016 August 8, 2016 August 15, 2016 August 15, 2016 September 20, 2016 October 3, 2016 October 11, 2016 October 17, 2016 October 25, 2016 November 22, 2016 November 29, 2016 December 6, 2016 February 22, 2017 Budget kick off Q & A 1:30 PM - 3:00 PM Interdepartmental requests (staffing, supplies, building changes, etc.) due to Corporate Services so we can adequately budget (IT, Communications, Assessment) Capital budgets due with notes Five year capital outline into Questica 2016 Budget performance (projections and comments) : New projects, importance, challenges and opportunities Changes to , new 2021 Operating budgets due with notes 2016 Budget performance (projections and comments) : Service levels (current and changes to current noted specifically) Changes to , new 2019 Draft budget and report(s) for discussion with CAO, consider taxation, gross expenditures, impact on reserves and 2016 budget performance Information submitted to Directors for review prior to Council Workshop First draft to Council at workshop, general discussion involving COLA, Capital and Operating service levels Finished product discussion at Director s meeting Revised budget workshop (finished product with documentation) Presented at one Council meeting - tabled for public input Budget feedback Council workshop Council approval Submitted for consideration of GFOA Award 21

22 Organization chart RED DEER COUNTY RESIDENTS = 19, 541 (2011 CENSUS) MAYOR & COUNCIL MEMBERS = 7 COUNTY MANAGER FTE Permanent = 1 Contract LEGISLATIVE SERVICES FTE Permanent = 2 Exp $346,872 CORPORATE SERVICES FTE Permanent = 22 Exp $6,583,303 COMMUNITY & PROTECTIVE SERVICES FTE Permanent = 27 Exp $ 7,118,625 OPERATIONS SERVICES FTE Permanent = 21 Exp $26,805,511 PLANNING & DEVELOPMENT SERVICES FTE Permanent = 19 Exp $3,249,583 ASSESSMENT SERVICES COMMUNITY SERVICES AGRICULTURAL SERVICES ADMINISTRATION COMMUNICATIONS EMERGENCY MANAGEMENT ENGINEERING SERVICES CURRENT PLANNING FINANCIAL SERVICES PATROL ENVIRONMENTAL SERVICES DEVELOPMENT ENGINEER HUMAN RESOURCES FIRE GIS GIS INFORMATION TECHNOLOGY (IT & RECORDS) PUBLIC WORKS LONG RANGE PLANNING SAFETY CODES The County Manager reports to Mayor and Council and is responsible for providing them with information and advice on policy matters and ensures Council s decisions, programs, policies and mandates are followed and implemented. FTE = Full Time Equivalent 22

23 Staffing DISTRIBUTION County Manager's Office Corporate Services Finance & Administration Human Resources Information Services (IT, GIS, RM)* Communications Assessment Community & Protective Services Protective Services Patrol Services Fire Protection Services Emergency Management Services Community Services Information Services (IT & RM) Operations Services Public Works/ Engineering Utilities Agricultural Services Information Services (GIS) Facilities Planning & Development Services Development Planning Safety Codes Services Economic Development Information Services (GIS) Total Full Time Employee Positions *IT = Information Technology, RM = Records Management, GIS = Geographic Information Systems 2017 STAFFING BY DIRECTORATE 3 NUMBER OF EMPLOYEES COUNTY MANAGER'S OFFICE CORPORATE SERVICES COMMUNITY & PROTECTIVE SERVICES OPERATIONS SERVICES PLANNING & DEVELOPMENT SERVICES 23

24 overall consolidated budget Budget Projected Budget Budget Budget 2016 Dec. 31/

25 Reserve summary 2017 RESTRICTED GENERAL RESERVES Operating Capital Total Operating & Capital Reserves Ending 2016 (Projected) 12,683,249 25,055,857 37,739, surplus to fund 2017 projects(60,413) 76,437 76,437 To fund capital projects (3,325,000) (3,325,000) 2016 carry forward project to drainage; Community Services carry forward Transit bus and Action bus to 2017 (612,148) (612,148) Other carry forward from Spruce View reservoir parking lot (350,000); Spruce View reservoir (166,667) (516,667) (516,667) To fund add'l ask for Sylvan Lake Multiplex (136,421) (136,421) Ending 2017 (Projected) 11,494,450 21,730,857 33,225,307 RESTRICTED PROGRAM RESERVES RESTRICTED PROGRAM RESERVES Muncipal Community Regional Protective Total Program Environmental Reserve Services Utility Services Reserves Total Reserves Ending 2016 (Projected) 1,936,516 4,237,072 (1,483,760) 2,325,461 2,017,318 9,032,607 46,771, surplus to fund 2017 projects(60,413) - 76,437 To fund capital projects - (3,325,000) 2016 carry forward project to drainage; Community Services carry forward Transit bus and Action bus to (612,148) Other carry forward from Spruce View reservoir parking lot (350,000); Spruce View reservoir (166,667) - (516,667) Annual transfers (Community Services, Protective Services & Environmental Services), Water & Sewer (368,177) 219, ,687 (577,798) (64,118) (64,118) Fund 2019 Canada Winter Games from Reserve (250,000) (250,000) (250,000) To fund add'l ask for Sylvan Lake Multiplex (136,421) To fund Delburne arena(120,00 to be recovered in 2018 by local contributions) (909,976) (909,976) (136,421) Ending 2017 (Projected) 1,936,516 2,708,919 (1,264,590) 2,988,148 1,439,520 7,808,513 41,033,820 25

26 Reserve summary ( ) RESTRICTED GENERAL RESERVES Ending 2017 (Projected) 11,494,450 21,730,857 33,225, surplus to fund 2018 projects (1,301,696) (1,402,831) (1,402,831) To fund capital projects (4,331,755) (4,331,755) Ending 2018 (Projected) 10,091,619 17,399,102 27,490,721 To fund capital projects (8,846,867) (8,846,867) Ending 2019 (Projected) 10,091,619 8,552,235 18,643,854 RESTRICTED PROGRAM RESERVES Muncipal Community Regional Protective Total Program Environmental Reserve Services Utility Services Reserves Total Reserves Ending 2017 (Projected) 1,936,516 2,708,919 (1,264,590) 2,988,148 1,439,520 7,808,513 41,033, & 17 surplus to fund 2018 projects(1,301,696) - (1,402,831) To fund capital projects - (4,331,755) Annual transfers (CS, PS & ES), Water & (238,682) 362, ,828 (463,455) 390, ,293 Delburne arena contribution return (local contributions) 120, , ,000 Ending 2018 (Projected) 1,936,516 2,590,237 (901,988) 3,717, ,065 8,318,806 35,809,527 To fund capital projects - (8,846,867) Sewer (596,810) 364, ,682 (538,856) (53,593) (53,593) Ending 2019 (Projected) 1,936,516 1,993,427 (537,597) 4,435, ,209 8,265,213 26,909,067 Municipal Reserve represents funds received from developers. It is cash in lieu of land and is legislated to be used for parks, recreation or school purposes. Program specific reserves that have a special levy include Community, Environmental and Protective Services. These programs are completely self-funded with either a draw or a contribution into their specific reserve. The Regional Utility reserve is used to fund capital expenses related to regional utilities. It is currently in a deficit position. The County self-funded costs to hook up the regional water system with the City of Red Deer. *See Financial Reserves Policy in Appendix V for further explanation of reserves. 26

27 net service level budget ( ) 27

28 net service level budget ( ) TOTAL 28

29 contributions to other agencies One Time Funding Requests Sylvan Lake Multiplex 709,012 Canada Winter Games ,000 Airport Taxiway (split with City, $350,000) 175,000 Airport services to SE field 1,500,000 Town of Bowden Community Centre 300,000 Village of Delburne - arena expansion 1,500,000 TOTAL 2,934,012 1,500,000 - Other Annual Funding Red Deer Regional Airport 235, , ,000 FCSS cost sharing 126, , ,494 Rec Funding Agreements 718,775 1,000,000 1,000,000 Libraries 155, , ,000 Recreation Facilities Maintenance 304, , ,555 Community Groups 250, , ,000 Fire Agreements including: 245, , ,200 Delburne, Elnora, Innisfail, Sylvan Lake TOTAL 2,035,374 2,328,699 2,335,249 Annual Requisitions Alberta School Foundation 17,516,760 17,516,760 17,516,760 Seniors Housing 129, , ,000 Central Alberta Regional Waste Mgmt 23,397 27,592 27,932 Sylvan Lake Water/Wastewater Utility Commissions 33,566 30,649 30,649 Planning Partnerships (Delburne, Bowden, Elnora) 6, (difficult to predict for & 2019 due to uncertainty of permit applications but hoping to break even) TOTAL 17,710,153 17,706,879 17,705,341 TOTAL 22,679,539 21,535,578 20,040,590 29

30 funding sources summary Red Deer County s budget is supported by several sources of revenue, which include property taxes, sales and user charges, grants, investment income, penalties and fines, water and wastewater revenue and licences and permits. Municipal Property Taxes Property Taxes are assessed to residential, commercial, and industrial properties based on an assessment value of the property multiplied by a tax rate approved by County Council. Taxes are used to fund local programs and services. Sales and User Charges Included in this category are all miscellaneous fees that are charged to customers based on usage. Examples include inpsection fees, rental fees, dust control and garbage collection fees. Governments Grants Red Deer County receives capital and operating grants from other levels of government. Recent annual grant programs include the Municipal Sustainability Initiative, the Federal Gas Tax Fund, Alberta Community Partnership Program, GreenTRIP (Transit Incentives Program), Small Communities Fund and the Agricultural Service Board Grant. Investment Income & Penalties and Fines Interest earned on investments, penalties on late payment of taxes and revenue received and fines collected by the Province on the County's behalf. Water and Wastewater Revenue Revenue collected by the County for services provided. Licences and Permits Revenue for providing service, information and various applications. In 2016, the County is starting to issue safety code permits. Transfers to and from Reserves Reserves are budgeted to fund unanticipated fluctuations in operating expenditures and specific projects of a capital nature related to the delivery of operations of the municipality. See the financial reserve policy in Appenix V for further information. Debt Funding Red Deer County has a small portion of debt that was used to fund local utilities. Ending in 2017, the County will have no debt. Currently, there are no plans to take out any further debt. The MGA (Municipal Government Act), as defined by Alberta Regulation 255/00 requires that Red Deer County s debt limit be no greater than $12,831,591 (2015 year end calculation). See Debt Management Policy in Appendix IX for more information. 30

31 funding sources all revenues by source Budget Projected Budget Budget Budget REVENUES Property Taxes 44,494,524 45,223,224 43,837,554 42,265,941 41,529,980 Sales and User Charges 3,085,238 3,051,749 3,018,078 3,138,738 3,236,400 Grants Operating 737, , , , ,000 Investment Income 755, , , , ,000 Penalties and Fines 605, , , , ,000 Water and Wastewater 3,042,786 2,772,556 3,296,761 3,362,403 3,432,891 Licences and Permits 1,100, , ,950 1,099,125 1,099,125 Total Operating Revenues 53,820,776 54,379,744 52,720,212 51,376,207 50,808,396 Transfers from Reserves 9,241,597 5,965,381 5,737,893 5,224,293 8,900,460 Grant Capital 13,545,800 12,812,467 7,033,333 5,950,000 5,950,000 Offsite Levies 2,134,038 1,949,356 7,298,040 Cost Recovery Capital 1,450, ,000 Total Revenues 78,742,211 75,106,948 74,239,703 62,670,500 65,658, PERCENTAGE OF TOTAL REVENUES 59% 4% 10% 2% 4% 1% 8% 10% 2% PROPERTY TAXES SALES AND USER CHARGES GRANTS INVESTMENT INCOME PENALTY & FINES WATER AND WASTE WATER LICENCES AND PERMITS TRANSFERS FROM RESERVES OFFSITE LEVIES COST RECOVERY REVENUES BY SOURCE 31

32 funding sources 2018 REVENUES BY SOURCE PERCENTAGE OF TOTAL REVENUES 68% 5% 10% 2% 5% 2% 8% PROPERTY TAXES SALES AND USER CHARGES GRANTS INVESTMENT INCOME PENALTY & FINES WATER AND WASTE WATER LICENCES AND PERMITS TRANSFERS FROM RESERVES 2019 PERCENTAGE OF TOTAL REVENUES 63% 5% 9% 2% 5% 2% 14% PROPERTY TAXES SALES AND USER CHARGES GRANTS INVESTMENT INCOME PENALTY & FINES WATER AND WASTE WATER LICENCES AND PERMITS TRANSFERS FROM RESERVES REVENUES BY SOURCE 32

33 capital budget by directorate overall Project Type 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget REVENUES COST RECOVERY - - 1,450, , FUTURE OFFSITE LEVY RESERVE 2,134,038 1,949,356 7,298, GRANTS 13,545,800 12,812,467 7,033,333 5,950,000 5,950,000 5,950,000 5,950,000 OFFSITE LEVIES COLLECTED - 220, TRANSFER FROM RESERVE 5,736,080 4,629,979 1,851,643 (120,000) TOTAL CAPITAL REVENUES 21,415,918 19,612,297 17,633,241 5,950,000 5,950,000 5,950,000 5,950,000 EXPENSES COMMUNITY SERVICES 1,206, ,106 1,984, CORPORATE SERVICES 3,709,807 3,657, , , , ,000 10,000 OPERATIONS SERVICES 28,468,856 25,510,048 24,567,714 15,647,938 19,295,000 27,719,000 19,175,000 PLANNING & DEVELOPMENT SERVICES 40,000 35,882-40, PROTECTIVE SERVICES 479, , , , , ,000 - TOTAL CAPITAL EXPENSES 33,904,437 30,410,624 27,957,690 16,713,938 20,403,000 28,420,000 19,185,000 NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 12,488,519 10,798,327 10,324,449 10,763,938 14,453,000 22,470,000 13,235,000 Overall Capital Budget summarizes all Capital revenues and expenses for Red Deer County with the net being funded from the Operating Budget. The operating and maintenance costs of Capital acquistions are considered and realized in the Operating budgets. As a clear example, the Building purchase of the Benalto School was realized in the Corporate Services Capital budget in 2016 and the operating and maintenance costs are budgeted for within the Community Services-Recreational Facilities Operating budget commencing in Key Capital Initiatives: Spruce View Water Treatment Facility and Reservoir ($3.6M) and the Water Supply Line from the City of Red Deer to Petrolia Reservoir ($3M) Gasoline Alley Infrastructure Project ($7.2M) and the Expansion of the Delburne Arena ($1.5M) Major Bridge Infrastructure repairs/construction, Road Programs and several Offsite Levy/ Infrastructure projects. See specific Department by Directorate-Summary & Detail pages for further information. Leva AVENUE construction 33

34 capital budget by directorate COMMUNITY SERVICES CAPITAL PROJECT SUMMARY DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Springbrook is a priority growth hamlet as recognized in the Municipal Development Plan. Construction of the Playground and Basketball Court recreational space will contribute to the area s sustainability. Red Deer County and the City of Red Deer are part of a Transit Agreement to provide sustainable public transit. In the event that the bus the County currently owns is out of service for maintenance, a City bus must be utilized at a greater cost. The additional procurement of busses will eliminate this cost and will allow the County to provide extended services to the communities of Springbrook and Penhold. The Delburne Agriplex/Arena is a regional facility that operates all year long to offer agricultural and recreational programming to approximately 3,000 people. It is believed that the expansion will meet renew/repair requirements for the next 20 years as opposed to complete reconstruction at an estimated cost of $12M. KEY CAPITAL INITIATIVES: Springbrook Playground Equipment and Basketball Court. 2016/ Acquistion of 3 Transit busses Delburne Arena Expansion. See Community Services-Detail for further information. 34

35 capital budget by directorate COMMUNITY SERVICES CAPITAL PROJECT DETAIL Project 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget BLDG-AD007 - Delburne Arena Expansion AB Community Partnership Grant Capital Cost Recovery Transfer from Reserve Total BUILDING/UPGRADE - - 1,509, (350,000) (250,000) (120,000) (909,976) 120, LANI-CS001 - Playground/Equipment - Springbrook Transfer from Reserve LANI-CS002 - Basketball Court - Springbrook Transfer from Reserve Total LAND IMPROVEMENT 52,000 52, (52,000) (52,000) , , (125,774) (125,774) AUTO-TN001 - Vehicle-Conventional Transit Bus Green Trip Grant Transfer from Reserve AUTO-TN002 - Vehicle-Conventional Transit Bus (Smaller) Transfer from Reserve AUTO-TN003 - Vehicle-Action Bus Transfer from Reserve Total VEHICLE 604, , (320,000) (320,000) (234,000) (234,000) , , ,000 (350,000) , , ,000 (75,000) , ,000 50, NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 475, ,332 50, CONVENTIONAL TRANSIT BUS ACTION TRANSIT BUS 35

36 CAPITAL PROJECT SUMMARY capital budget by directorate COrporate SERVICES DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Building upgrades and equipment purchases for the Administration building are primarily due to their reaching the end of their life cycle. Some adjustments have been made to enhance operational efficiency and customer service while reducing maintenance costs. Land purchases are of the Benalto School, to secure future gravel inventory and of a former landfill site which will mitigate liability by reclaiming, remediating and releasing for suitable development. Land Improvements arise from issues of extended use and provide enhanced security and energy efficiency. Network, Phone and Information Management system upgrades are intended to provide a more stable and secure environment, providing better business continuance and sustainability. These procurements also reduce the need for the continued replacement of smaller asset purchases. Key Capital Initiatives: Land Acquisitions for the Benalto School, former Landfill site and to secure future Gravel Inventory Virtual Desktop Environment, Blade expansion on servers and further Open Text development. See Corporate Services-Detail for further information. 36

37 CAPITAL PROJECT DETAIL capital budget by directorate COrporate SERVICES 37

38 CAPITAL PROJECT DETAIL capital budget by directorate COrporate SERVICES 38

39 capital budget by directorate operations SERVICES CAPITAL PROJECT SUMMARY - PUBLIC WORKS Project Type 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget PUBLIC WORKS REVENUES COST RECOVERY - - 1,200, FUTURE OFFSITE LEVY RESERVE 28,800 96,328 5,779, GRANT 10,840,767 10,440,767 6,350,000 5,950,000 5,950,000 5,950,000 5,950,000 TRANSFER FROM RESERVE 345,672 (4,328) 350, TOTAL PUBLIC WORKS REVENUES 11,215,239 10,532,767 13,680,054 5,950,000 5,950,000 5,950,000 5,950,000 EXPENSES ENGINEERED STRUCTURE 20,890,747 18,816,065 20,961,528 15,362,938 19,095,000 27,509,000 19,055,000 LAND IMPROVEMENT 60,000 60, , VEHICLE 120, , , , , , ,000 TOTAL PUBLIC WORKS EXPENSES 21,070,747 18,991,473 21,431,528 15,482,938 19,215,000 27,629,000 19,175,000 NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 9,855,508 8,458,706 7,751,474 9,532,938 13,265,000 21,679,000 13,225,000 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES 2016: Major repairs/construction on 8 Bridge structures kms of Chipseal work was completed on 12 roads. 2.6 kms of road construction was completed on RR21 and 3.2 kms on RR265, including drainage improvements. Major maintenance was completed on 15 gravel road locations and consists mainly of drainage and slide slope improvements. 6.4 kms of Market Road reconstruction was completed on RR kms on RR10 was reconstructed and paved as well as paving in 5 subdivisions. Preliminary engineering was allocated towards identifying project limits, type of work, surveying and stakeholder discussions pertaining to future capital priorities. 3,800 m 2 of sidewalks and 4 bus shelters on Leva Avenue and Lake Street provide safety and shelter for the public. Key Capital Initiatives: 2016 Major repairs/construction on Bridge structures, construction & paving on RR10, RR21, RR245 and RR265. Sidewalks and bus shelters in Gasoline Alley Annual averages for Operations Services Capital Plan are as follows: Bridge Program $3.9M (please refer to attached map of Capital Bridge Construction Projects for detail), Chipseal $1M, Construction $2M, Major Maintenance $2M, Market Road $3.5M, Paving $6M and Preliminary Engineering $500,000. Road work is budgeted for on a priority basis and is based on many factors. They include road conditions and safety issues, volume and type of traffic use, development in the area and stakeholder consultations such as landowners and environmental agencies. The type of work done is also dependent on these factors. The Gasoline Alley Infrastructure Project is defined as an alignment with Alberta Transportation s improvement to the QEII highway. This will favourably impact access into, around and out of Gasoline Alley. The $7.2M project has Road (including Roundabouts, Curbs/ Gutters and Sidewalks), Water, Wastewater and Storm components. Offsite Levy/Infrastructure Studies throughout many areas of Red Deer County will map out the status of current infrastructure, future infrastructure needs as well as identify possible Levy revenues that can be generated from development to fund the needs as prioritized. These studies are closely tied with Area Structure Plans. The Pine Lake Boat Launch is scheduled for replacement in 2017 as the current structure is deteriorating due to age and high volume use. Vehicle replacements are used throughout the Operations Services department by field personnel and to manage Capital and maintenance projects Key Capital Initiatives: 2017 Major repairs/construction on Bridge structures, construction on RR284, paving on C&E Trail and Gasoline Alley Infrastructure Project Major repairs/construction on Bridge structures and construction on TR Major repairs/construction on Bridge structures Major repairs/construction on Bridge structures and reconstruction on TR Major repairs/construction on Bridge structures. See Public Works-Detail for further information. 39

40 capital budget by directorate operations SERVICES CAPITAL PROJECT detail - WATER, WasteWATER & storm Project 2016 Budget year End Projection 2017 Budget Budget OF-H-y qe2/hwy42 Offsite Levy Study (Water) Future Offsite Levy Collections OF-S-B Springbrook Offsite Levy Study (Water) Future Offsite Levy Collections OF-S-H Gasoline Alley Infrastructure Study (Water) Future Offsite Levy Collections WATR-BE001 - Benalto Infrastructure Study (Water) WATR-SV001 - Spruce View Infrastructure Study (Water) OF-S-H Gasoline Alley Waterworks Future Offsite Levy Collections (2016 Budget in PRELIM) WATR-GA002 - Water Supply line from City to Petrolia Reservoir in Gasoline Alley (Water) Future Offsite Levy Collections Transfer from Reserve WATR-SB104 - Springbrook New Water Well WATR-SV102 - Spruce View Water Treatement Facility and Reservoir Small Communities Fund (SCF) Grant Transfer from Reserve Total WATER INFRASTRUCTURE , (37,500) , (6,250) - 18,000 14,400 19,800 - (10,800) (8,640) (11,880) , , , , (9,236) (393,684) - 3,046,522 2,846, ,000 - (2,000,000) (1,800,000) (200,000) - (1,046,522) (1,046,522) ,000 65, ,577,549 3,077, ,000 - (2,385,033) (2,051,700) (333,333) - (298,155) (131,488) (166,667) - 966, , ,126 - OF-H-y qe2/hwy42 Offsite Levy Study (Sewer) Future Offsite Levy Collections OF-S-B Springbrook Offsite Levy Study (Sewer) Future Offsite Levy Collections OF-S-H Gasoline Alley Infrastructure Study (Sewer) Future Offsite Levy Collections SEWR-BE001 - Benalto Infrastructure Study (Sewer) SEWR-SV001 - Spruce View Infrastructure Study (Sewer) OF-S-H Gasoline Alley Sewerworks (2016 Budget in PRELIM) Future Offsite Levy Collections SEWR-SB100 - Springbrook Lift Station Platform Total WASTEWATER INFRASTRUCTURE , (37,500) , (6,250) - 12,000 9,600 13,200 - (7,200) (5,760) (7,920) , , , , (8,279) (352,892) - 125, , , , ,292 - OF-H-Wy242 - Hwy Hwy 42 Stormwater Offsite Study Future Offsite Levy Collections OF-S-H Gasoline Alley Infrastructure Study (Storm) Future Offsite Levy Collections OF-S-H Gasoline Alley Stormworks (2016 Budget in PRELIM) 74, (74,038) ,000 17,600 24,200 - (13,200) (10,560) (14,520) , ,692 - SPRUCE VIEW RESERVOIR CONSTRUCTION 40

41 capital budget by directorate operations SERVICES CAPITAL PROJECT SUMMARY - WateR, WasteWateR & STORM DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Springbrook Lift Station repairs have brought the Lift Station platform to Safety Code compliance. Blindman River Erosion repair stabilized slopes and will prevent further erosion. The Water Supply line from the City of Red Deer to Petrolia Reservoir will secure a long-term potable water supply for Gasoline Alley which is anticipated to see significant future commercial and residential development. The Spruce View Water Treatment Facility and Reservoir was constructed as the current infrastructure is nearing the end of its life cycle. Future development has had to be declined due to its age and capacity which has stunted growth in the area. The new facility will accommodate future development and growth as well as enhance firefighting capabilities in the area. The Gasoline Alley Infrastructure Project is defined as an alignment with Alberta Transportation s improvement to the QEII highway. This will favourably impact access into, around and out of Gasoline Alley. The $7.2M project has Road (including Roundabouts, Curbs/Gutters and Sidewalks), Water, Wastewater and Storm components. Offsite Levy/Infrastructure Studies throughout many areas of Red Deer County will map out the status of current infrastructure, future infrastructure needs as well as identify possible Levy revenues that can be generated from development to fund the needs as prioritized. These studies are closely tied with Area Structure Plans. Key Capital Initiatives: Spruce View Water Treatment Facility and Reservoir and the Water supply line from the City of Red Deer to Petrolia Reservoir Gasoline Alley Infrastructure Project. See Water, Wastewater and Storm-Detail for further information. 41

42 capital budget by directorate operations SERVICES CAPITAL PROJECT SUMMARY - AGRICULTURAL SERVICES DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Purchase and installation of water treatment system and chemical injection pumps build upon the success of the Roadside weed control program. Historically, most of Agricultural Services vehicles have been inherited from the Public Works department and have far reached the end of their life cycles. Replacement of these vehicles will reduce maintenance costs. The Kubotas and quad will be heavily utilized in all Agricultural Services programs. Key Capital Initiatives: Installation of Chemical Injection Pumps and Water Treatment System Purchase of new Spray Truck. See Agricultural Services-Detail for further information. 42

43 capital budget by directorate operations SERVICES CAPITAL PROJECT DETAIL - AGRICULTURAL SERVICES Project 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget EqUP-AG FT Gooseneck Trailer U724T EqUP-AG020 - Chemical Injection Pumps EqUP-AG021 - Water Treatment System in AG Shop Total MACHINERy & EqUIPMENT 18,000 18, ,000 25, ,000 10, ,000 53, AUTO-AG020 - Vehicle-Replace Spray Truck AUTO-AG021 - Vehicle-Replace Weed Inspector Vehicle AUTO-AG022 - Vehicle-Replace Weed Inspector Vehicle AUTO-AG023 - Vehicle-Replace Weed Inspector Vehicle AUTO-AG024 - Vehicle-Replace Kubota AUTO-AG025 - Vehicle-Replace Kubota AUTO-AG026 - Vehicle-U Ford F550 AUTO-AG027 - Vehicle-Replace AG Services Truck AUTO-AG028 - Vehicle-Replace AG Services Truck AUTO-AG029 - Vehicle-Replace AG Services Truck AUTO-AG030 - Vehicle-Replace AG Services Truck AUTO-AG031 - Vehicle-Replace AG Services Truck AUTO-AG032 - Vehicle-Replace AG Services Truck AUTO-AG033 - Vehicle-Replace AG Services Truck AUTO-AG034 - Vehicle-Replace AG quad AUTO-AG035 - Vehicle-Replace Weed Inspector Vehicle Total VEHICLE , , , , , , ,000 62, , , , , , , , , , ,000 62, , ,000 80,000 90,000 - NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 108, , , ,000 80,000 90,000 - agricultural equipment 43

44 capital budget by directorate operations SERVICES CAPITAL PROJECT DETAIL - PUBLIC WORKS BRIDGE WORK 44

45 capital budget by directorate operations SERVICES CAPITAL PROJECT DETAIL - PUBLIC WORKS raven bridge project 45

46 bridge construction projects Kilometers Red Deer Capital Constr township roads # # # # BM # BM BM # # BM # # # # # BM BM BM BM BM BM # BM BM Sylvan Lake BM BM BM ## BM BM BM # # # # BM BM # BM # # # # # BM # BM BM BM Innisfail Penhold Red Deer # BM-3 BM # BM range roads 46

47 County uction Projects - Bridges bridge construction projects Date Created: November 23, # BM BM # # BM Delburne BM Elnora BM # Construction Projects # 2017 # 2018 # 2019 # 2020 # 2021 Year Project Price 2017 BM $445, BM $505, BM $370, BM $730, BM $830, BM $445, BM $445, BM $370, BM $730, BM $730, BM $730, BM $370, BM $730, BM $505, BM $370, BM $730, BM $1,390, BM $730, BM $370, BM $370, BM $730, BM $370, BM $445, BM $367, BM $730, BM $367, BM $630, BM $730, BM $505, BM $730, BM $730, BM $370, BM $990,

48 capital budget by directorate operations SERVICES CAPITAL PROJECT DETAIL - PUBLIC WORKS 48

49 capital budget by directorate operations SERVICES CAPITAL PROJECT DETAIL - PUBLIC WORKS 49

50 capital budget by directorate operations SERVICES CAPITAL PROJECT DETAIL - PUBLIC WORKS 50

51 CAPITAL PROJECT SUMMARY capital budget by directorate PLANNING AND DEVELOPMENT SERVICES Project Type 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget EXPENSES VEHICLE 40,000 35,882-40, TOTAL PLANNING & DEVELOPMENT EXPENSES 40,000 35,882-40, NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 40,000 35,882-40, DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES See Planning & Development - Detail for further information. CAPITAL PROJECT DETAIL Project 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget AUTO-DV006 - Vehicle-U Ford F150 AUTO-DV007 - Vehicle-Replacement Vehicle Total VEHICLE 40,000 35, , ,000 35,882-40, NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 40,000 35,882-40,

52 capital budget by directorate PROTECTIVE SERVICES CAPITAL PROJECT SUMMARY Project Type 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget EXPENSES LAND IMPROVEMENT 130, , MACHINERY & EQUIPMENT 20,000 20, VEHICLE 329, , , , , ,000 - TOTAL PROTECTIVE SERVICES EXPENSES 479, , , , , ,000 - NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 479, , , , , ,000 - DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The paving of Fire Station 6 parking lot comes 2 years after the acquisition of the building in 2014 and was procured through Red Deer County s Paving contractor at a significant savings compared to tendering separately. Pavement in the area will provide dust control, reduce maintenance costs and provide more safe access to the station. The majority of Capital expenditures are for the replacement of vehicles and equipment. Although the vehicles are identified as being purchased for their main response area, such as Innisfail or Sylvan Lake, due to the multiple Mutual Aide Agreements Red Deer County has with Responders in the surrounding area, these vehicles are often called upon to service areas outside of their main response area. See Protective Services-Detail for further information. newly acquired WATER TANKER 52

53 capital budget by directorate PROTECTIVE SERVICES CAPITAL PROJECT DETAIL Project 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget LANI-PS001 - Station 6 Paving Total LAND IMPROVEMENT 130, , , , EqUP-PT002 - Haenni Scales Total MACHINERy & EqUIPMENT 20,000 20, ,000 20, AUTO-EM004 - Vehicle-Replace Delta 6 AUTO-FI061 - Vehicle-U Chev Suburban AUTO-FI062 - Vehicle-Replace Innisfail Tender AUTO-FI063 - Vehicle-Replace Engine 1 AUTO-FI064 - Vehicle-Replace Delta 5 AUTO-FI065 - Vehicle-Replace Engine 7 AUTO-FI066 - Vehicle-Replace Ladder 4 AUTO-FI067 - Vehicle-Replace Rescue 4 AUTO-FI068 - Vehicle-Sylvan Lake Tender AUTO-PT016 - Vehicle-U Chev Tahoe LS 4WD White AUTO-PT017 - Vehicle-U GMC yukon SLE 4WD AUTO-PT018 - Vehicle-Replace Patrol Vehicle AUTO-PT019 - Vehicle-Replace Patrol Vehicle AUTO-PT020 - Vehicle-Replace Patrol Vehicle AUTO-PT021 - Vehicle-Replace Patrol Vehicle AUTO-PT022 - Vehicle-Replace Patrol Vehicle AUTO-TR003 - Vehicle-U Dodge Ram 3500 AUTO-TR004 - Vehicle-U Polaris ATV AUTO-TR005 - Vehicle-U Polaris ATV AUTO-TR007 - Vehicle-Replace R63 Total VEHICLE ,000-65,000 57, , , , , , , , ,000 60, ,000 55, , , , , , ,000 77, ,000 12, ,000 12, , , , , , , ,000 - NET CAPITAL EXPENSE FUNDED FROM OPERATING BUDGET 479, , , , , ,000-53

54 operating budget by directorate The Red Deer County Operating Budget compares to, and further breaks down, the Net Service Level Budget. (See page 27 and 28). GENERAL GOVERNANCE 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget GENERAL GOVERNANCE Expenses CONSULTANTS & CONTRACTS 150,200 30, , , ,000 COUNCIL FEES 485, , , , ,000 ELECTION , FUEL & EQUIPMENT 10, ,000 10,000 10,000 INFORMATION TECHNOLOGY 39,580 20,810 36,175 36,545 39,000 INSURANCE 1,100 1,100 1,100 1,100 1,100 MEMBERSHIPS & SUPPLIES 5,000 1,000 5,000 5,000 5,000 PROFESSIONAL SERVICES 10,000 15,000 15,000 15,000 15,000 TRANSPORTATION & COMMUNICATION 175, , , , ,520 WAGES & BENEFITS 613, , , , ,890 Total Expenses 1,490,127 1,309,927 1,524,864 1,531,324 1,555,510 Total GEN GOVERNANCE 1,490,127 1,309,927 1,524,864 1,531,324 1,555,510 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The County Manager ensures that the County s policies and programs are implemented. General governance includes Council, County Manager and Legislative Services. Municipal election in Performance measure - We are striving to improve voter turn out for the 2017 election by developing a communications strategy with our Communications department to effectively get the information out to the ratepayers and also raise awareness through various forms of social media. 54

55 DIRECTORATE OVERVIEW CORPORATE SERVICES Red Deer County Corporate Services is here to ensure quality customer service to both internal and external customers. Red Deer County senior administration and Council rely on Corporate Services to provide timely and accurate advice, researched and accurate assessments of property, financial reporting and timely monthly and annual utility and taxation billings. Once a budget is set or a bylaw is passed by County Council, Corporate Services administers the billings and collections in a professional and efficient manner. Corporate Services also directs human resources, internal and external communications. External communications includes a monthly distribution of the County newspaper, which updates residents on valuable information. Red Deer County s customers are the ratepayers within our County and it is important that they receive high quality services and enjoy safe and up-to-date infrastructure. It is therefore important to ensure efficient use of available grant funding and a level of taxation to fund County programs. Contact Information: Heather Gray-Surkan Director, Red Deer County Corporate Services hsurkan@rdcounty.ca Brigitte Boomer Assessment Services Manager bboomer@rdcounty.ca Jana Erichson Human Resources Manager jerichson@rdcounty.ca Sylvie Guay Financial Services Manager sguay@rdcounty.ca Tyler Harke Communications Manager tharke@rdcounty.ca

56 operating budget by directorate CORPORATE SERVICES DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The Corporate Services budget includes Finance, Human Resources, Communications, Assessment and Land Management, Customer Service, Facilities and Information Technology departments. Memberships include professional development (attending GFOA Conference and other PD courses) as well as AAMDC & CPA memberships. 56

57 operating budget by directorate CORPORATE SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget FACILITIES Expenses CONTRACT SERVICES FUEL JANITORIAL CONTRACT REPAIR & MAINTENANCE SOLID WASTE & RECYCLING UTILITIES WAGES & BENEFITS Total Expenses 77,400 80, ,300 83,200 86,600 3,600 2,000 3,600 3,600 3,600 63,000 67,209 67,500 72,000 74, , , , , ,000 4,200 3,492 4,500 4,800 5,000 88,500 76,853 92,500 97,100 97,100 91,655 91,655 98, , , , , , , ,642 Total HUMAN RESOURCES 465, , , , ,642 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Facilities ensure that all Red Deer County buildings are functioning at proper levels. Performance measures - We had many cosmetic enhancements in 2016, painting, improvements to the atrium areas and front entrance. The atrium also had vents, plant and signage upgrades as well as a monitor installed. Exterior lighting and plug contactors were upgraded. Building maintenance is considered a priority to protect the County s assets Budget year End Projection 2017 Budget 2018 Budget 2019 Budget COMMUNICATIONS Expenses CONSULTANTS & CONTRACTS INFORMATION TECHNOLOGY NEWSPAPER(PRINTING & DISTRIBUTION) OFFICE SUPPLIES TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses 20,000 20,000 20,000 20,000 20,000 4,000 3,900 4,000 4,000 4,700 70,000 62,000 72,000 75,000 75,000 1,000 1, ,000 9,700 6,150 9,700 9,700 9, , , , , , , , , , ,648 Total COMMUNICATIONS 425, , , , ,648 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The role of Communications is to provide expertise, tools and training for a variety of communications activities. This includes visual identity, media relations, speaking notes, development of promotional material and the monthly print publication of the County News. Increase in costs for County News postage in 2017,2018 & Variance in transportation and communication due to conferences not available in Three staff attending conferences in Performance measure - We have increased our social media following by 10% in 2016, planning to increase this following at the same rate for 2017, 2018 and Communications has also increased the print material available to the public by 5% including distribution of our County News, goal is to continue the increase in 2017, 2018 and

58 operating budget by directorate CORPORATE SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget FINANCE, CUST SERV & RISK MGMT Revenues CLAIMS REFUNDS INSURANCE RISK CLAIMS REFUNDS WCB RISK MGMT INVESTMENT REVENUE MUNICPAL RESERVE PENALTIES & COSTS TAX CERTIFICATE & FEES Total Revenues 0 17, , , , , , , , ,800 5,500 1,800 1,800 2,500 31,300 31,000 31,300 31,300 31, ,100 1,049, , , ,800 Expenses COLLECTION & INVESTMENT FEES CONSULTANTS & CONTRACTS 16,100 16,100 16,100 16,100 16,100 10, ,000 10,000 10,000 INFORMATION TECHNOLOGY INSURANCE & CLAIMS RISK MGMT 282, , , , ,000 MEMBERSHIPS & SUPPLIES 4,200 4,200 4,200 4,200 5,000 PROFESSIONAL SERVICES 42,000 35,000 42,000 45,000 45,000 TRANSPORTATION & COMMUNICATION 31,050 31,050 32,150 32,250 36,500 WAGES & BENEFITS 910, , ,611 1,016,949 1,035,277 Total Expenses 1,296,549 1,313,293 1,393,361 1,421,799 1,454,177 Total FIN, CS & RM 508, , , , ,377 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The Finance department conducts the daily business of Red Deer County. Their work includes processing accounts payable and receivable, preparing budget documents and financial statements, payroll etc. Municipal reserve revenue is not budgeted since it is difficult to determine, every year varies and is dependent upon subdivision applications. Budgeted for a 3.0% insurance premium increased in 2017 & 2018 budgets. Performance measure - We have an external audit performed every year. We are in compliance and have approved Financial Statements in accordance with Canadian Public Sector Accounting Standards. Internal financial statements are prepared monthly and reviewed for any variances to budget. Utility E-billing increased from 275 in 2015 to 363 in 2016 as we encourage ratepayers to use E-billing. Insurance claims to date outstanding: 1 from 2012, 1 from 2014, and 1 from In 2016 we had 19 various claims and have 11 outstanding. 58

59 operating budget by directorate CORPORATE SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget HUMAN RESOURCES Expenses ADDITIONAL EMPLOYEE BENEFITS CONSULTANTS & CONTRACTS INFORMATION TECHNOLOGY HEALTH & SAFETY PROGRAM RECRUITMENT & RETENTION TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses 97,000 97, , , ,000 8,500 2,000 10,000 5,000 10,000 15,200 13,500 15,200 15,200 15,500 5,000 5,000 5,000 5,000 7,000 30,000 2,000 30,000 30,000 40,000 32,450 28,150 32,700 32,975 35, , , , , , , , , , ,720 Total HUMAN RESOURCES 480, , , , ,720 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Human Resources role includes coordinating compensation and benefits, performance management, recruitment, training, workers compensation, and health and safety. Additional employee benefits for are due to all employees now paying the full premiums for long term disability. To compensate, the County has increased employer contributions for health & wellness. Performance measure - Red Deer County had an 8% turnover rate in We held 6 Health & Safety presentations during the past year as well as a Fire Extinguisher Training course in which 63 employees were trained. Current certification for Standard First Aid Level C with AED (Automated External Defibrillator) is held by 85% of employees. Our Learning and Wellness Program had a 92% participation rate in

60 operating budget by directorate CORPORATE SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget IT,GIS & RECORDS MANAGEMENT Revenues MAPPING & FOIP FEES Total Revenues 9,000 6,000 9,000 9,000 6,000 9,000 6,000 9,000 9,000 6,000 Expenses CARRY FORWARD (RESERVES) CONSULTANTS & CONTRACTS (112,000) (80,000) , , , ,000 86,000 HARDWARE UPGRADES & SOFTWARE 194, , , , ,000 OFFICE SUPPLIES 1,000 3,000 1,500 1,000 1,000 PRINTING 26,700 26,700 33,000 33,000 33,000 RECORDS FEES & LICENSING 65,000 67,000 45,000 52,000 55,000 RECORDS RENTAL 10,000 8,500 10,000 11,000 11,000 REPAIR & MAINTENANCE 1,000 1,000 1,000 1,000 1,000 SUPPLIES, FUEL & EQUIPMENT 2,500 1,500 2,500 2,500 2,000 TRANSPORTATION & COMMUNICATION 81,320 79,457 94,920 85,320 88,020 WAGES & BENEFITS 784, , , , ,682 Total Expenses 1,330,423 1,357,108 1,380,227 1,340,695 1,357,702 Total IT, GIS & REC MGMT 1,321,423 1,351,108 1,371,227 1,331,695 1,351,702 DEPARTMENT HIGHLIGHTS/PEFORMANCE MEASURES Information Technology department is responsible for the day-to-day work tools such as , internet, cell phones and audio visual equipment. This budget summary also includes GIS (Geographic Information System) and Records Management. Although the budget remains in Corporate Services for overhead statement purposes, Information Technology and Records Management are supervised by the Assistant County Manager. Geographical Information Systems (GIS) is supervised by both Planning and Operations. In 2017, there will be consulting costs for the second phase of new software, Open Text for Records Management. In 2018 Council will receive Surface Pro upgrades, a total of 8 devices and the testing of virtual desktop devices. Performance measures - Open Text was launched in 2016 with great success. 60

61 operating budget by directorate CORPORATE SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget ASSESSMENT Revenues BYLAW FEES Total Revenues 500 1, , Expenses CONSULTANTS & CONTRACTS 122, ,000 37,000 22,000 8,000 FUEL 4,000 4,000 4,000 4,000 4,500 INFORMATION TECHNOLOGY 34,500 26,091 35,000 35,000 39,000 LAND TITLE FEES & INSURANCE 4,200 1,812 4,200 4,200 2,800 LINEAR ASSESSMENT REQUISITION 45,000 45,000 45,000 45,000 50,000 OFFICE SUPPLIES ,500 6,500 7,000 PROFESSIONAL SERVICES 75,000 35,000 50,000 50,000 50,000 REPAIR & MAINTENANCE 5,000 5,000 5,000 5,000 5,000 TRANSPORTATION & COMMUNICATION 30,700 30,700 37,700 34,700 42,900 WAGES & BENEFITS 643, , , , ,121 Total Expenses 964, , , , ,321 Total ASSESSMENT 964, , , , ,821 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Assessment is in the process of establishing a market value for all assessable property in the municipality. Property assessment and taxation funds the majority of municipal services and supports the cost of public education. Accurate Assessment contract ends in March of The department will hire one contract position to assist with the additional work that will now be done in house. Budget variance in 2016 due to computer updates for Camelot coming in under budget. Additional software will be required in 2017, 2018 and 2019 with changes to assessment requirements. Performance measure - We completed 2016 assessments one month earlier to enable Council s strategic priority to separate assessment and tax notices. The assessment department re-inspects every property once every five years, which translates to 20% annually Budget year End Projection 2017 Budget 2018 Budget 2019 Budget LAND MANAGEMENT Revenues HANGER LEASES & ROAD CLOSURE FEES OIL & GAS ROYALTIES RENTAL & LEASES Total Revenues 66,200 55,260 66,200 66,200 66,200 7,500 7,500 7,000 7,000 7,000 33,438 49,656 33,438 33,438 46, , , , , ,200 Expenses CARRY FORWARD (RESERVES) (70,000) (70,000) CONTRACT SERVICES 205, , , , ,200 INFORMATION TECHNOLOGY 1,000 1,000 1,000 1,000 2,000 PROFESSIONAL SERVICES 10,000 10,000 10,000 10,000 8,000 PROPERTY RENTAL 1, ,300 1,300 1,000 Total Expenses 147, , , , ,200 Total LAND MANAGEMENT 40,162 34,700 50,862 55,862 32,000 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Land Management is responsible for the stewardship of all Red Deer County owned lands, including Municipal Reserves and right of ways Phase II reclamation study on waste transfer site. Budget variance in fees is due to a decrease in oil and gas revenue (downturn in economic state). Increase in rental and leases attributed to lease holders paying for multiple years at a time. In 2019 lease renewals will come due again. Performance measure - Land inventory has been completed and presented to Council as per the Strategic Plan; Council has approved the sale of some parcels in

62 operating budget by directorate CORPORATE SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget TAXATION Revenues LEVY REVENUE LEVY SENIOR HOUSING OIL & GAS DRILLING TAXES PENALTIES TAX LEVY Total Revenues 55,092,551 55,962,213 54,657,656 53,187,268 52,471, , , , , ,000 50,000 25,000 25,000 25,000 25, , , , , ,000 55,518,524 56,523,173 55,062,386 53,594,146 52,876,230 Expenses SCHOOL REQUISITION 17,319,244 17,516,760 17,516,760 17,516,760 17,516,760 SENIOR HOUSING REQUISITION 125, , , , ,000 Total Expenses 17,444,244 17,639,864 17,646,490 17,648,638 17,646,760 Total TAXATION 38,074,280 38,883,309 37,415,896 35,945,508 35,229,470 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES In addition to collecting taxes to fund municipal services, Red Deer County collects taxes on behalf of the Province of Alberta to support the funding of the public school system. No increase to taxation rates in Taxes for municipal purpose do not include special levies which are recorded in each specific department as shown below: 62

63 DIRECTORATE OVERVIEW community and protective services Red Deer County Protective Services staff are responsible for the coordination and provision of Fire, Enforcement, and Emergency Management Services throughout Red Deer County and consists of a Regional Fire department, a Patrol department, an Emergency Management department and that includes volunteer technical rescue personnel. Community Services promotes healthy communities by supporting the development and sustainability of facilities, projects and programs that benefit our residents. This department includes Family and Community Support Services (FCSS), community grants, volunteer training, as well as Recreation and Culture Board oversight. Contact Information: Ric Henderson Assistant County Manager Director, Red Deer County Community and Protective Services rhenderson@rdcounty.ca Dave Laurin Fire Chief dlaurin@rdcounty.ca Don Huestis Emergency Services Manager dhuestis@rdcounty.ca Irv Heide Senior Patrol Officer iheide@rdcounty.ca Jo-Ann Symington Community Services Manager jsyminton@rdcounty.ca

64 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget COMMUNITy SERVICES ADMIN Revenues BEAUTIFICATION REVENUE SPRINGBROOK TO RED DEER TRAIL Total Revenues 3,000 2,571 3,200 3,200 3, , ,000 11,321 3,200 3,200 3,200 Expenses CARRY FORWARD (RESERVES) CONSULTANTS & CONTRACTS FUEL INFORMATION TECHNOLOGY OFFICE SUPPLIES REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses (1,543,027) (1,340,635) (504,598) (238,682) (596,810) 245, , ,000 90,000 95,000 4,000 4,000 4,000 4,000 4,500 34,200 34,200 34,200 34,200 36, ,000 3,000 3,000 3,000 3,500 14,674 14,674 14,674 14,674 17, , , , , ,983 (848,759) (746,367) 139, ,554 (27,227) Total COMMUNITy SERVICES ADMIN (851,759) (757,688) 136, ,354 (30,427) DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The Community Services department duties include regional recreation and culture partnerships, Family and Community Support Services (FCSS), funding requests, hamlet enhancement, trail development and community resource coordination. In 2016 a one time expenditure of $160,000 was budgeted to conduct a comprehensive community services needs assessment survey; $60,000 was spent in 2016 with $100,000 carried forward to Performance measure - 25% of residents participated in the needs assessment survey. This information will be finalized in 2017 to promote and provide future direction for the programming for Community Services This needs assessment survey is one of Council s adopted strategic priorities Budget year End Projection 2017 Budget 2018 Budget 2019 Budget CEMETERy Expenses FUNDING AGREEMENTS Total Expenses 82,800 52,500 86,500 86,500 95,000 82,800 52,500 86,500 86,500 95,000 Total CEMETARy 82,800 52,500 86,500 86,500 95,000 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Annual operational and capital funding programs are available to assist rural cemeteries. 64

65 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget FAMILy & COMMUNITy SUPPORT SERVICES (FCSS) Revenues FCSS FUNDING Total Revenues 216, , , , , , , , , ,000 Expenses CONSULTANTS & CONTRACTS INFORMATION TECHNOLOGY MEMBERSHIPS & SUPPLIES TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses 16,500 16,500 16,500 16,500 19,000 2,000 2,000 2,000 2,000 2,400 2,000 2,000 2,000 2,000 2,600 14,800 14,800 14,800 14,800 17, , , , , , , , , , ,473 Total FCSS 51,616 51,616 58,606 42,463 18,473 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Family Community Support Services of Red Deer is a municipal/provincial partnership to provide social programs for families at the local level. FCSS community related programs, consisting of Children s Indoor Playspace, Community Welcome Program & Directories. Provincial budget may see increase to FCSS funding for Cost share would increase by $48, Budget year End Projection 2017 Budget 2018 Budget 2019 Budget LIBRARy PROGRAM Expenses FUNDING REQUISITIONS Total Expenses 148, , , , , , , , , ,000 Total LIBRARy PROGRAM 148, , , , ,000 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County supports local libraries through the Parkland Regional Library system. Minor increase on per capita for 2017, 2018 &

66 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget RECREATION Revenues MISC REVENUE Total Revenues Expenses FUNDING AGREEMENTS 2,477,092 2,477,092 2,467,091 1,739,304 2,060,000 INSURANCE Total Expenses Total RECREATION 2,477,242 2,477,242 2,467,241 1,739,454 2,060,200 2,476,742 2,476,742 2,466,741 1,738,954 2,059,700 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County is currently divided into six Recreation Districts that receive funding from the County to assist with the promotion and delivery of recreation and culture programs. As per the recreation agreements with our urban municipal partners, in 2017 we are entering year five of a five year agreement. In 2018 new agreements will be established. Performance measures - In 2016, funding agreements included the Annual Recreation Facility Capital Grant for $250,000. Some of the bigger projects include $70,000 to the Red Deer Titans Rugby Club for improvements to the site; $38,000 to Linn Valley Community Association for paving; $31,000 to the Benalto Ag Society for the purchase of a new tractor; $28,000 to the Spruce View Community Association for four stoves and a washer and dryer; and $10,000 to the Poplar Ridge Community for a climbing wall. In 2016 and 2017 we have allocated $709,012 towards the Sylvan Lake Multiplex in each year; $300,000 towards the Bowden Community Hall and $250,000 for our Annual Recreation Facility Capital Grant to various communities based on funding criteria. community RECREATION 66

67 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget REC FACILITIES Revenues RENTAL OF SCHOOL Total Revenues Expenses COMPUTER SUPPORT 0 0 1,000 1,000 1,500 CONTRACT SERVICES 0 0 1,500 1,500 2,000 INSURANCE 0 0 1,500 1,500 2,000 JANITORIAL 0 0 8,400 8,400 9,000 OFFICE SUPPLIES REPAIR & MAINTENANCE 0 0 5,000 5,000 3,500 TELEPHONE ,000 UTILITIES Total Expenses 0 0 6,000 6,000 8, ,600 24,600 27, Total RECREATION ,100 24,100 27,000 DEPARTMENT HIGHLIGHTS/PEFORMANCE MEASURES Performance measure Red Deer County took over the Benalto School: 2017 will see the first year of service. The County will increase the level of service to our residents by utilizing this space for County related programming for residents such as playschool, Boys & Girls Club and a community garden. community playground 67

68 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget TRANSPORTATION Revenues GRANT BUS ADVERTISING Total Revenues 233, , ,000 5,031 2,000 2,000 2, , ,175 2,000 2,000 2,000 Expenses TRANSIT SERVICES Total Expenses 1,011,332 1,011,332 1,119,266 1,446,669 1,326,209 1,011,332 1,011,332 1,119,266 1,446,669 1,326,209 Total TRANSPORTATION 776, ,157 1,117,266 1,444,669 1,324,209 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County transit provides regular, daily service to Gasoline Alley and Springbrook. The Action Bus is public transportation service available to citizens who are not physically able to ride regular transit routes. Increase in transit services in 2017, 2018 & 2019 to reflect City rates and to include statutory holiday service. Performance measure - In 2016 we converted an existing conventional bus to gas, which will result in less emissions Budget year End Projection 2017 Budget 2018 Budget 2019 Budget COMMUNITy-FCSS C/SHARE Expenses PREVENTATIVE SOCIAL SERVICES Total Expenses 136, , , , , , , , , ,479 Total COMMUNITy-FCSS C/SHARE 136, , , , ,479 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Increase cost share due to new funding from Province. 68

69 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget PROTECTIVE SERVICES - ADMIN Expenses FUEL INFORMATION TECHNOLOGY INSURANCE OFFICE SUPPLIES REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses Total PROTECT SERV - ADMIN 2,500 2,500 2,600 2,700 3,000 11,200 11,200 11,200 11,200 11, ,000 1,400 1,200 1,200 1,500 9,950 10,675 10,350 10,350 13, , , , , , , , , , , , , , , ,834 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Protective Services provides fire protection and control, emergency management, enforcement. county fire truck 69

70 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget FIRE PROTECTION Revenues FEES & PERMITS FIRE FIGHTING REVENUE Total Revenues 10,000 11, , ,016 52,500 52,500 62,500 62, ,016 52,500 52,500 62,500 Expenses CARRY FORWARD (RESERVES) (120,384) (39,002) (577,798) (463,455) (538,856) FUEL & EQUIPMENT MAINTENANCE 84,500 84,500 70,500 71,500 72,200 INFORMATION TECHNOLOGY 2,100 3,782 2,100 2,100 2,400 INSURANCE & PREVENTION 52,800 51,880 53,900 55,000 55,400 KIT ACQUISITION & SUPPLIES 56,200 56,200 57,200 58,200 60,200 PROJECT 44,500 49,500 30,000 10,000 10,000 PROTECTIVE SERV FIRE CONTRACTS 238, , , , ,200 REPAIR & MAINTENANCE 152, , , , ,000 TRANSPORTATION & COMMUNICATION 139, , , , ,500 UTILITIES 25,000 25,000 25,000 25,000 25,000 WAGES & BENEFITS Total Expenses 640, , , , ,194 1,315,088 1,427,750 1,003, , ,238 Total FIRE PROTECTION 1,252,588 1,308, , , ,738 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The County Fire Department consists of two full-time Chiefs, a Fire Code Inspector and approximately 40 volunteer firefighters in the immediate Red Deer area and 120 volunteers around the remainder of the County. Budget variance in revenue is due to higher than expected vehicle extrication charges. Budget variance in repairs and maintenance due to unforeseen repairs to vehicles. Anticipated for 2017 includes equipment/apparatus for contracted departments (Bowden, Innisfail, Sylvan Lake and Elnora). Repair and maintenance in 2017 includes roof repair and painting upgrades to Station 1, Station 23, and 4 will receive a lighting upgrade. Budgeted 3% increase per annum for Protective Services Fire Contracts. Performance measure - 22 firefighters received their NFPA (National Fire Protection Association) level 1001 Operations and Awareness Course in In 2017 we see this increased slightly to 24 students in There are a total of 49 students combined registered for the NFPA 1001 level I and level II Course, 48 students in NFPA 1051 Course, and Five Safety Codes Officer Courses taken by twelve students. In 2017 we will conduct 450 fire inspections, a substantial increase over

71 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget PATROL Revenues FINES & FEES Total Revenues 375, , , , , , , , , ,000 Expenses FUEL 30,000 30,000 32,500 32,500 32,500 INFORMATION TECHNOLOGY 17,350 17,350 17,350 17,350 17,350 INSURANCE & FEES 16,200 16,492 16,200 16,700 16,700 KIT ACQUISITION & SUPPLIES 9,250 9,250 9,250 9,250 9,250 PROFESSIONAL SERVICES 5,000 5,000 5,000 5,000 5,000 RADAR UNITS 6,000 6,000 6, ,000 REPAIR & MAINTENANCE 26,000 26,000 26,000 26,000 26,000 RURAL CRIME WATCH 6,000 6,000 6,000 6,000 6,000 SCHOOL RESOURCE OFFICER & SPCA 33,000 33,000 33,000 33,000 33,000 TRANSPORTATION & COMMUNICATION 24,050 26,485 24,250 25,250 26,000 WAGES & BENEFITS 883, , , , ,931 Total Expenses 1,056,115 1,086, ,214 1,008,980 1,031,731 Total PATROL 681, , , , ,731 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County has seven full-time County Patrol Officers mandated through their appointment as Bylaw Officers and Community Peace Officers, to enforce County Bylaws and selected Provincial statutes RED DEER COUNTY PATROL STATISTICS Occupant Restraints 5% Unlicensed Drivers 2% Unregistered Motor Vehicles 5% Distracted Drivers 2% Intersection Violations 4% Commercial Vehicle Infractions 9% Uninsured Motor Vehicles 1% Speeding 72% 71

72 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget EMERGENCy MANAGEMENT Revenues Expenses COST RECOVERY FUEL INFORMATION TECHNOLOGY INSURANCE OFFICE SUPPLIES PROJECT TRAINING REPAIR & MAINTENANCE Total Revenues TRANSPORTATION & COMMUNICATION UTILITIES WAGES & BENEFITS Total Expenses Total EMERGENCy MANAGEMENT 0 2, , (5,000) (5,000) ,000 6,000 6,000 6,000 6,000 4,000 4,000 4,000 4,000 4,500 3,000 3,000 3,000 3,000 3,000 10,000 10,000 10,000 10,000 10,000 4,500 4, ,000 17,800 15,000 15,000 20,000 19,000 19,000 14,000 14,000 16,000 9,300 9,917 9,300 9,300 9,800 19,000 19,000 19,000 19,000 19, , , , , , , , , , , , , , , ,978 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County Emergency Management is led by the Protective Services Director, and is comprised of staff, contracted agencies and mutual partners. Cost recovery in 2016 the result of teaching courses to other municipalities. Performance measures - County employees maintained emergency response training in 2016 with the following: -Basic Emergency Management is held by 95% of staff -Incident Command System I-100 is held by 95% of staff -Emergency Coordination Centre (ECC) is held by 87% of staff -Incident Command System I-200 is held by 93% of staff -Rhodium (ECC) is held by 90% of staff -Incident Command System I-300 is held by 9 employees -Emergency Social Services Training is held by 24 employees Municipal Emergency, Regional Municipal Emergency and Business Continuity Plans are updated annually. These courses and plans are priorities to ensure that we are prepared for emergencies should they arise. 72

73 operating budget by directorate community and protective SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget PROTECTIVE SERV - TECHNICAL RESCUE Revenues COST RECOVERY Total Revenues Expenses EQUIPMENT SUPPLIES FUEL INSURANCE KIT ACQUISITION REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION Total Expenses 51,000 51,000 35,000 35,000 35,000 5,000 5,000 5,000 5,000 5,000 9,000 12,028 9,000 9,000 10,000 20,000 20,000 15,000 15,000 20,000 16,500 16,500 16,500 16,500 17,500 36,000 36,000 26,000 26,000 31, , , , , ,500 Total TECH. RESCUE 137, , , , ,500 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES This volunteer Task Force is organized, trained and equipped to operate as a Medium Urban Search and Rescue, with members trained at the Technician level in rope rescue, confined space rescue, swift water rescue and structural collapse rescue. The team also operates the County Livestock Response Unit for surrounding municipalities : $10,000 for international training (in Transportation & Communication). - Budget in 2016 for purchase of 2 ATV trailers (non-capital) and PPE equipment (in Equipment Supplies). - Cost Recovery is for reimbursement of expenses regarding a Search and Rescue with the RCMP. Performance measures - Red Deer County Technical Rescue Task Force responded to many situations in 2016 including the following: - Responded to 13 County Fire Assists, 8 RCMP SAR & other RCMP requests, 5 Aquatic/Ice Rescues, 4 Others (Multi Vehicle Collisions and EMS Mutual Aid to other municipalities). - Response Incident Hours - Tech Rescue = 513 Person Hours, Exercise Hours - Tech Rescue = 2,227 Person Hours, Event Hours - Tech Rescue = 325 Person Hours. Total Hours for Incidents, Exercises and Events = 3,065 person hours Hours logged by Technical Rescue Members = 10,507 person hours Red Deer County Tech Rescue ensures that its members are trained in all facets of emergency preparedness to ensure that we are capable of handling rescues of all types. 73

74 directorate overview operations SERVICES Red Deer County Operations Services staff oversees our roads, utilities, and waste management, ensuring residents and business owners can go about their daily routines safely and efficiently. Although most work is performed through alternate service delivery, Operations Services staff work throughout the County to see that all necessary work is done to high standards. Operations Services also oversees the Agriculture Services department, and the Agricultural Services Board. The duties of Red Deer County s Agricultural Services Board include: liasing with Council and the farming comunity; advise and help organize weed, pest, soil and water conservation programs; assist in the control of livestock diseases; and promote and develop agricultural policies. The County is proud of its many green initiatives, through improved waste management procedures, we are able to recycle more material than ever before. Contact Information: Marty Campbell Director, Red Deer County Operations Services mcampbell@rdcounty.ca Andrew Treu Environmental Services Manager atreu@rdcounty.ca Art Preachuk Agriculture Manager apreachuk@rdcounty.ca Chris Black Construction Manager cblack@rdcounty.ca Rob Mayhew Engineering Manager rmayhew@rdcounty.ca

75 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget PUBLIC WORKS ADMINISTRATION Revenues GRAVEL LEVY COST RECOVERY & PENALTIES Total Revenues 375, , , , ,000 10, , , , , , ,000 Expenses FUEL & EQUIPMENT SUPPLIES INFORMATION TECHNOLOGY INSURANCE OFFICE SUPPLIES PROFESSIONAL SERVICES REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION UTILITIES Total Expenses 86,000 89,457 86,000 86,000 86,000 7,750 7,100 7,750 7,750 7,750 10,000 10,000 10,000 10,000 10,000 3,000 3,000 3,000 3,000 3,000 10,000 10,000 10,000 10,000 10,000 25,000 25,000 25,000 25,000 25,000 65,200 68,000 65,200 65,200 65,200 4,100 4,100 4,100 4,100 4, , , , , ,050 Total PW ADMINISTRATION 173, ,955 38,950 38,950 38,950 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Operations is responsible for the provision of engineering technology, solid waste management including garbage & recycling programs, snow removal, municipal water and sewer, road and bridge construction and maintenance, and agricultural related services. 75

76 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget BRIDGE MAINTENANCE Expenses CONTRACT SERVICES MAINTENANCE & SUPPLIES WAGES & BENEFITS Total Expenses 645, , , , ,000 1, , , , , , , , , , ,755 Total BRIDGE MAINTENANCE 775, , , , ,755 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Included in contract services are cleaning, patching, replacing timber deck, and debris removal etc. for all of the County owned bridges. Performance measures - Inspections are done in accordance with Alberta Transportation guidelines. Approximately 30 bridges each year are inspected and any required repairs and maintenance are completed. bridge project 76

77 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget DITCH & WATER FLOW Expenses CARRY FORWARD (RESERVES) 0 187,148 (187,148) 0 0 CONTRACT SERVICES DRAINAGE SOCIETY PROGRAM THIRD PARTY CONTRACTOR WAGES & BENEFITS Total Expenses 927, , , , , ,648 59, , , , , , , , , , , , , ,556 2,134,381 1,939,995 1,930,091 1,949,559 1,951,756 Total DITCH & WATER FLOW 2,134,381 1,939,995 1,930,091 1,949,559 1,951,756 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County Engineering Services oversee drainage of County owned land. Alternate service delivery contractors carry out drainage projects throughout the County. Budget variances for this department are dependent upon the weather that each year has, drought versus flooding. Performance measure - In 2016, over 50 ditch projects were investigated and addressed, falling in line with our County mandates Budget year End Projection 2017 Budget 2018 Budget 2019 Budget ENGINEERING SERVICE Expenses CONSULTANTS & CONTRACTS EQUIPMENT REPAIR & MAINTENANCE INFORMATION TECHNOLOGY OFFICE SUPPLIES REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses 200, , , , ,000 80,000 20,000 80,000 80,000 80,000 1,200 2,062 1, ,500 10,000 14,500 14,500 14,500 15,000 20, ,000 15,000 15,000 1, ,000 1,000 1, , , , , ,400 1,144,583 1,114,356 1,350,040 1,189,457 1,203,900 Total ENGINEERING SERVICE 1,144,583 1,114,356 1,350,040 1,189,457 1,203,900 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County requires the services of certified Professional Engineers throughout the year. Repair & maintenance is for items such as coveralls, engineering materials, etc. 77

78 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget GRAVEL ROAD MAINTENANCE Revenues DUST CONTROL PROGAM Total Revenues 100, , , , , , , , , ,000 Expenses CONTRACT SERVICES 3,438,000 3,332,000 3,437,000 3,437,000 3,437,000 DUST CONTROL MAINTENANCE 250, , , , ,000 EQUIPMENT & SUPPLIES 75,000 75,000 75,000 75,000 75,000 WAGES & BENEFITS Total Expenses 122, , , , ,845 3,885,114 3,779,114 3,887,154 3,890,355 3,892,845 Total GRAVEL ROAD MAINTENANCE 3,785,114 3,669,838 3,787,154 3,790,355 3,792,845 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County maintains approximately 3,000 km of mostly gravel roads. The County provides optional dust control for residents who register and reimburse for the service to partially fund the expense. $50,000 was used for Highway 766 & 587 dust control. Purchase of grader blades in equipment & supplies. This budget was increased to allow other areas such as hills and washboard areas to have dust suppression applied Budget year End Projection 2017 Budget 2018 Budget 2019 Budget REGRAVEL & GRAVEL Expenses CONTRACT SERVICES REGRAVEL PROGRAM WAGES & BENEFITS Total Expenses 250, , , , ,000 3,750,000 3,710,086 3,750,000 3,750,000 3,750, , , , , ,854 4,160,820 4,120,906 4,166,474 4,184,702 4,195,854 Total REGRAVEL & GRAVEL 4,160,820 4,120,906 4,166,474 4,184,702 4,195,854 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County has gravel maintenance staff who oversee the condition of gravel roads within the County. Administration is looking for other sources for our re-gravel program. Performance measure - We gravelled 1/3 of our roads in 2016 (approx. 3,000 kms) last summer and met our goal. 78

79 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget MUNICIPAL MAINTENANCE Expenses CONTRACT SERVICES FUEL, EQUIPMENT & SUPPLIES REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION WAGES & BENEFITS Total Expenses 175, , , , ,000 23,000 23,000 25,000 25,000 30,000 8,000 8,000 45,500 45,500 48, ,000 5,000 5,000 53,286 77, , , , , , , , ,689 Total MUNICIPAL MAINTENANCE 259, , , , ,689 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County Agricultural Services conducts ongoing maintenance of municipal grounds such as parks etc. Fuel, Equipment & supplies expenses - weed whackers, parts, string, oil changes, fuel, tires etc. Supplies & materials - wood mulch, gravel, top soil, herbicide, turf etc. Contract services include: mowing, light brushing, parking lots, ball diamond rehab, landscaping, tree pruning etc Budget year End Projection 2017 Budget 2018 Budget 2019 Budget PAVED/OIL Revenues FEES ROAD MAINTENANCE Total Revenues Expenses CONTRACT SERVICES ENGINEERING SERVICES WAGES & BENFITS Total Expenses 959, , , , ,700 15,000 15,000 15,000 15,000 15,000 82,214 82,214 84,056 86,021 87,238 1,056, ,258 1,058,756 1,060,721 1,061,938 Total PAVED/OIL 1,056, ,938 1,058,756 1,060,721 1,061,938 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County uses a five year road plan to prioritize roads that need immediate maintenance. Road paving falls within this plan. Performance measure - We inspected all our of roads and repaired every road that required repairing in Regular maintenance ensures that untimely deterioration doesn t occur, reducing major maintenance costs and meeting life cycle expectations. 79

80 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget ROAD RIGHT OF WAy Revenues FEES & PERMITS Total Revenues 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Expenses BRUSHING & RAILWAY COSTS CONTRACT SERVICES RIG MOVES & CROSSING COSTS WAGES & BENEFITS Total Expenses 1,055,000 1,146,000 1,055,000 1,055,000 1,055, , , , , ,800 60,000 60,000 60,000 60,000 60,000 68,902 68,902 70,379 71,967 72,843 1,874,702 2,078,121 1,876,179 1,877,767 1,878,643 Total ROAD ROW 1,799,702 2,003,121 1,801,179 1,802,767 1,803,643 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES This is a 3 year alternative service delivery contract ( ) with an option for a 1 year extension. Performance measure - Mowing was maintained at all Right of Ways (ROW). All paved roads were completed two times this year and all gravel roads were done once. We aim to do more each year but this is weather dependent. Signage inspections are done annually and are repaved or replaced as required Budget year End Projection 2017 Budget 2018 Budget 2019 Budget WINTER SNOW PLOWING Expenses CONTRACT SERVICES THIRD PARTY CONTRACTOR WAGES & BENEFITS Total Expenses 1,100,000 1,050,000 1,100,000 1,100,000 1,100,000 1,149,000 1,143,108 1,149,000 1,149,000 1,149, , , , , ,314 2,366,971 2,311,079 2,369,882 2,372,956 2,375,314 Total WINTER SNOW PLOWING 2,366,971 2,311,079 2,369,882 2,372,956 2,375,314 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County s alternative service delivery contractors utilize plow trucks and graders for snow removal. Performance measure - Our goal is to plow/grade all County roads within 24 hours of a snowfall. 80

81 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget SUBDIVISION & OPEN SPACE Revenues RURAL SIGNAGE FEES Total Revenues Expenses EQUIPMENT & SUPPLIES REPAIR & MAINTENANCE SOLID WASTE & RECYCLING UTILITIES WAGES & BENEFITS Total Expenses 15, ,000 63,000 60,000 65,000 75,000 16,630 12,630 14,630 15,130 18, , , , , ,000 30,684 30,749 31,559 32,237 32, , , , , ,555 Total SUBDIVISION & OPEN SPACE 312, , , , ,555 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County is responsible for the provision of street signage and various location signage throughout the County. GIS is looking after signs in the future. Day use area operations - Pine Lake, Joffre Bridge, and Ah-Soo-Wuh-Um. Budget is used to improve, construct, enhance, repair, and maintain feature signs to hamlets, subdivisions, business or industrial parks, and county signs. As well as maintenance of to municipal features and day use areas. Service fees for garbage bins at Joffre Bridge, Pine Lake, and Ah-Soo-Wuh-Um Day Use Areas. joffre bridge day use area 81

82 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget WASTE MANAGEMENT Revenues GARBAGE FEES 320, , , , ,000 LANDFILL COST RECOVERY 1,782,000 1,441,500 1,862,000 1,944,800 1,971,200 RECYCLE INCENTIVE PROGAM 10,000 5,000 5,000 5,500 5,000 Total Revenues 2,112,000 1,766,500 2,187,640 2,283,300 2,316,200 Expenses CARRY FORWARD (RESERVES) 728, , , , ,682 COMMISSION CENTRAL WASTE MNGMT 1, , CONTRACT SERVICES 383, , , , ,500 DEBENTURE INTEREST 20,755 20,755 4, INSURANCE 3,500 3,248 3,600 3,700 3,800 LANDFILL TIPPING FEES 450, , , , ,000 MAINTENANCE & SUPPLIES 5,000 2,000 5,000 5,000 5,000 SOLID WASTE & RECYCLING 1,374,056 1,224,387 1,417,672 1,462,193 1,482,700 TRANSPORTATION & COMMUNICATION 7,700 7,400 7,800 7,900 8,000 UTILITIES 21,800 24,900 25,230 25,700 27,400 WAGES & BENEFITS 118, , , , ,622 Total Expenses 3,113,481 2,780,393 3,189,334 3,269,795 3,299,704 Total WASTE MANAGEMENT 1,001,481 1,013,893 1,001, , ,504 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County provides garbage pick-up for 5 of our hamlets and for multi-lot subdivisions near the City of Red Deer. For residents living outside this service area, there are 3 waste transfer stations available: Yankee Flats, Gaetz Creek, and Horn Hill. Waste transfer station operation & haul contract is with MCL Waste Systems and Environmental Inc. MCL is in year 4 of a 5 year contract. Progressive Waste Solutions are in year 5 of a 10 year contract for residential garbage collection services. Expect full cost recovery at Horn Hill Waste Transfer Station in Cost recovery at Gaetz Creek and Yankee Flats by Performance measure - Consistent garbage collection services supported by the County. 82

83 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget WATER Revenues WATER CONNECTION FEES PENALTIES Total Revenues 1,293,783 1,225,058 1,482,765 1,512,418 1,546,284 55,746 49,204 55,800 56,268 56, , ,787 9,000 9,000 8,200 1,472,229 1,382,049 1,547,565 1,577,686 1,610,984 Expenses CARRY FORWARD (RESERVES) CONTRACT SERVICES 53, , , , , , , , ,870 DEBENTURE INTEREST 20,424 20,424 20, INSURANCE & ALARMS 19,240 17,563 20,855 21,350 22,350 REPAIR & MAINTENANCE 163, , ,500 54,500 54,500 TRANSPORTATION & COMMUNICATION 4,075 3,670 5,000 5,200 5,320 UTILITIES 53,580 50,910 65,600 66,950 69,660 WATER SUPPLY CONTRACT 478, , , , ,400 Total Expenses 1,472,229 1,413,159 1,547,565 1,577,686 1,610,984 Total WATER - 31, DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Red Deer County contracts the operations and maintenance of the County s water, wastewater, and storm systems in five communities: Springbrook, Spruce View, Benalto, Lousana and Gasoline Alley. Red Deer County has a contract with EPCOR to manage this utility. The full effect of the 2 year rate increase will occur in Water meter changes with fixed monthly fees were spread over 2016 & 2017 with the goal in 2017 to have the utility service fund itself (user pay). Performance measure - To provide safe and effective water supply to customers while recovering the costs and saving for future growth and development. 83

84 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget SEWER Revenues SEWER 1,570,357 1,390,407 1,748,996 1,784,517 1,821,707 PENALTIES Total Revenues 1,570,557 1,390,507 1,749,196 1,784,717 1,821,907 Expenses CARRY FORWARD (RESERVES) (70,885) 0 150, , ,507 COMMISSION 35,000 35,000 27,417 24,500 25,000 CONTRACT SERVICES INFRASTRUCTURE EXPENSE INSURANCE REPAIR & MAINTENANCE UTILITIES Total Expenses 159, , , , ,760 1,286,500 1,122,000 1,266,865 1,300,122 1,335, ,240 97, , , , ,500 7,840 7,800 8,500 8,750 8,900 1,515,557 1,457,610 1,749,196 1,784,717 1,821,907 Total SEWER 55,000 (67,103) DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The County is a member municipality to the South Red Deer Regional Wastewater Commission (SRDRWC). In 2017, fixed monthly fees changed from a flat user fee to a fee based on the size of the meter. This change will promote a user pay concept variance in repairs was due to the cost of Benalto storm sewer catch basin and the Lousana sewer main flushing. Performance measure - To provide a safe and effective sewer supply to customers while recovering the costs and saving for future growth and development. 84

85 operating budget by directorate operations SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget AGRICULTURAL SERVICES Revenues GRANTS 504, , , , ,000 PEST & WEED CONTROL/INSPECTIONS 32,500 99,054 33,500 34,500 39,000 SPRAYER RENTAL 1,000 1,000 1,000 1,000 1,000 Total Revenues 538, , , , ,000 Expenses BOARD FEES 11,000 11,000 11,500 11,500 11,500 PINE LAKE FUNDING 9,108 9,108 9,108 9,108 9,600 CONTRACT SERVICES 167, , , , ,800 FUEL, CHEMICALS, & SUPPLIES INFORMATION TECHNOLOGY INSURANCE OFFICE SUPPLIES RENTAL EQUIPMENT REPAIR & MAINTENANCE SAFETY PROGRAM 331, , , , ,750 45,500 45,500 59,500 52,900 54,900 38,000 36,500 39,500 40,000 40,800 2,000 2,000 2,000 2,000 2,000 1,000 1,000 1,000 1,000 1,000 76,000 76,000 77,000 78,000 73,500 6,000 6,000 6,200 6,500 6,500 SPONSORSHIPS 16,000 16,000 16,000 16,000 17,600 TRANSPORTATION & COMMUNICATION 61,000 61,500 62,300 64,000 65,000 WATER WELL RECLAMATION 10,000 10,000 10,000 10,000 10,000 WAGES & BENEFITS Total Expenses 819, , , ,833 1,004,736 1,594,166 1,922,326 1,965,459 1,818,591 1,893,686 Total AGRICULTURAL 1,055,907 1,249,164 1,559,090 1,633,091 1,703,686 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Agricultural Services works in conjunction with Red Deer County s Agricultural Service Board (ASB). Increase in the cost of chemicals for weed control, and brush control. Red Deer County was awarded more grant funding than what was budgeted for in The offset of additional Grants is an expenditure increase in funding allocated to Soil Conservation Projects shown in contracted services. The reduction in Grants in 2018 & 2019 is only from the ASB. Performance measures include: - Numerous tree planting projects resulted in 24,882 AWES (Agroforestry & Woodlot Extension Society s) trees planted in 2016 (via ALUS, Green Acreages, & Junior Forest Wardens). - Roadside weed control program travelled 115% of roadsides (finished all roads and then started over) in th Annual Red Deer County Entrepreneurial Agriculture Tour, deemed successful with 110 participants. - ALUS (Alternate Land Use Services) had 26 participants in 2016 resulting in 1430 reclaimed acres. - Safe Water Well Initiative had signed up 21 wells in 2016 with 15 being successfully plugged. Wet weather may have been an influence on the number of wells that were actually completed. club root inspection 85

86 directorate overview planning and development SERVICES Red Deer County Planning and Development Services staff seek to provide a comfortable and straight forward experience for our customers when processing building or development applications. By providing guidance and information on regulations, stakeholders in the community will be able to make informed decisions. Planning and Development Services staff are knowledgeable in matters regarding permits, zoning, surveying, property lines, future development plans for specific areas, access to properties, and various bylaws regarding land usage. Planning and Development Services provides a variety of services pertaining to the management of growth and development of the County s rural land base and its unincorporated settlements.these services include the preparation and implementation of statutory plans, and the review and processing of development related applications. Planning and Development Services also oversees the role of safety permitting and economic development within Red Deer County. Both of these important functions lead to high quality development within the County s borders. Contact Information: Dave Dittrick Director, Red Deer County Planning and Development Services ddittrick@rdcounty.ca Ron Barr Long Range Planning Manager rbarr@rdcounty.ca Treena Miller Current Planning Manager tmiller@rdcounty.ca

87 operating budget by directorate planning and development SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget AIRPORT RED DEER Expenses ANNUAL OPERATING FUNDING PROJECTS TRANSFERS FROM RESERVE Total Expenses 235, , , , ,000 1,664,500 1,661, ,000 1,500,000 0 (1,659,500) (1,659,500) , , ,000 1,735, ,000 Total AIRPORT RED DEER 240, , ,000 1,735, ,000 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The Red Deer Airport is located within Red Deer County. It serves as an economic driver and aids the movement of people and products for the region Runway expansion - Taxiway project split with the City of Red Deer Services to the SE field of the runway. red deer airport 87

88 operating budget by directorate planning and development SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget ECONOMIC DEVELOPMENT Revenues FEES & PERMITS Total Revenues - 1,000 1,000 1,000 1,000-1,000 1,000 1,000 1,000 Expenses CARRY FORWARD (RESERVES) (250,000) (250,000) (250,000) 0 0 CONSULTANTS & PROJECTS 225, , , , ,000 INFORMATION TECHNOLGY 44,200 44,500 44,500 44,500 44,500 INSURANCE OFFICE SUPPLIES REPAIR & MAINTENANCE 1,500 1,250 2,000 2,000 2,000 SPONSORSHIPS ECON DEVELOPMENT 280, , ,000 44,000 44,000 TRANSPORTATION & COMMUNICATION 36,500 29,100 37,500 37,500 37,500 WAGES & BENEFITS 105, , , , ,713 Total Expenses 443, , , , ,713 Total ECONOMIC DEVELOPMENT 443, , , , ,713 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Economic Development plans, implements and works to achieve objectives through building and maintaining relationships with public and private agencies, other municipalities, as well as potential new industries, businesses and service providers. 2016, & 2017 budgets include a total of $500,000 sponsorship for the 2019 Canada Winter Games to be funded from the Community Services Reserve budget for other general services includes preparation of an Economic Development strategic plan and 2018 include budget for Dickson Store Museum for providing tourist information services. Sponsorship contributions for Access Prosperity and Tourism Red Deer came in $20,000 under budget in Performance measure - Developed a stategic plan to meet the overall Council s Strategic priority of a growth readiness strategy. This plan includes entrepreneurship and innovation, strengthening partnerships, supporting industry and commerce, and location logistics. 88

89 operating budget by directorate planning and development SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget PLANNING & DEVELOPMENT Revenues FEES & PERMITS PENALTIES & COSTS RPR COMPLIANCE/ENDORSEMENT Total Revenues 276, , , , ,450 1,000 2,000 1,000 1,000 1,000 17,500 15,000 17,500 17,500 17, , , , , ,950 Expenses CONSULTANTS & CONTRACTS FUEL & EQUIPMENT SUPPLIES INFORMATION TECHNOLOGY INSURANCE & LAND TITLE SEARCHES OFFICE SUPPLIES PROFESSIONAL SERVICES REPAIR & MAINTENANCE TRAINING, TRAVEL & COMMUNICATION VEHICLE RENTAL WAGES & BENEFITS Total Expenses 100, , , , ,000 4,500 5,500 3,500 3,500 3,500 24,100 14,500 22,500 22,500 22,500 9,400 10,400 10,400 10,400 10,400 1,000 2,000 2,000 2,000 2,000 25,000 25,000 25,000 25,000 25,000 4,000 2,000 4,000 4,000 4,000 46,400 38,684 46,284 46,284 45, ,678,245 1,678,245 1,656,553 1,753,181 1,790,152 1,893,145 1,876,329 1,895,237 2,041,865 2,077,836 Total PLANNING & DEVELOPMENT 1,597,995 1,646,379 1,648,287 1,747,915 1,783,886 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The Planning and Development Services department manages the growth and development of the County s rural land base. Services include the preparation and implementation of statutory and non-statutory plans, the creation of regulations, and the review and processing of development-related applications. Budget variance of $64,000 in 2016 is due to a decrease in permit applications as a result of the economic downturn, 2017 is adjusted to reflect that. Budget variance in 2016 for training due to one leadership course being paid for in Contracts & Consultants in 2017, 2018 & 2019 include Council strategic initiatives such as 7 Area Structure Plans and 2019 increase to the consultants and contracts budget is for the Municipal Government Act (MGA) changes to the inter municipal collaboration. Performance measure - Regional Collaboration Matrix is on Council s Strategic Plan and is 60% completed. 89

90 operating budget by directorate planning and development SERVICES 2016 Budget year End Projection 2017 Budget 2018 Budget 2019 Budget SAFETy CODES Revenues FEES & PERMITS Total Revenues 731, , , , , , , , , ,175 Expenses CONTRACTS & CONSULTANTS FUEL, EQUIPMENT & SUPPLIES INFORMATION TECHNOLOGY INSURANCE MEMBERSHIPS & SUPPLIES PROJECTS REPAIR & MAINTENANCE TRANSPORTATION & COMMUNICATION VEHICLE RENTAL WAGES & BENEFITS Total Expenses 228, , , , ,875 8,750 3,750 5,250 5,250 5,250 53,722 26,350 51,222 51,222 51,222 1,500 1,000 1,500 1,500 1,500 1,250 1,450 1,490 1,490 1, ,000 1,000 1,000 1,000 1,000 2,000 2,000 2,000 2,000 8,850 9,250 9,850 9,850 9,850 1, , , , , , , , , , ,958 Total SAFETy CODES 173,470 54,382 25, , ,217 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES Planning and Development Services provides Safety Code inspection services. Safety Codes was a new service in 2016 and is budgeted to be a net revenue. Budget variance in 2016 is due to the economic downturn in budget has been adjusted to reflect this. Expected increase to revenues for 2018 & 2019 with the economy improving and the economic impact of 2019 Canada Winter Games, hosted in Red Deer. Performance measure - with the implementation of the Safety Codes department in 2016 there were 302 building permits, 367 electrical permits, 362 gas permits and 156 plumbing permits issued which resulted in $80M in construction value for Red Deer County ($36M residential and $44M commercial) Budget year End Projection 2017 Budget 2018 Budget 2019 Budget SUBDIVISION APPEAL BOARD Expenses CONTRACTS & CONSULTANTS TRANSPORTATION & COMMUNICATION Total Expenses 5,500 5,500 5,500 5,500 5,500 1,000 1,000 1,000 1,000 1,000 6,500 6,500 6,500 6,500 6,500 Total SUBDIV APPEAL BOARD 6,500 6,500 6,500 6,500 6,500 DEPARTMENT HIGHLIGHTS/PERFORMANCE MEASURES The Subdivision and Development Appeal Board (SDAB) is a quasi-judicial committee appointed by County Council that has the authority to amend or overturn subdivision decisions of the Municipal Planning Commission or a Development Officer. Performance measure - Anticipate the same number of appeals in 2017, 2018 &

91 appendix: i - red deer county information Statistics Canada 2012 *figure represents entire Red Deer region Red Deer County is 4,003 sq. km The County contains 82 residential subdivisions It has 8 industrial/commercial parks The County boundaries include: One City (Red Deer) Four Towns (Penhold, Innisfail, Bowden, Sylvan Lake) Two Villages (Delburne, Elnora) Two Summer Villages (Jarvis Bay, Norglenwold) Seven Hamlets (Lousana, Ardley, Dickson, Spruce View, Markerville, Benalto, Springbrook) The market area surrounding Red Deer County is 2.4 million (people within 160 km radius). The trade area is 200,000+ people Council structure: Six Councillors, one Mayor POPULATION & STATISTICS Population 19,541 Percent change since last census +6.7% Total private dwellings 7,097 Median age of population 43.6 Median household income $157,417 Overall population including all municipalities within Red Deer County 148,815 Development Annual average # of permits in the last 3 years 381 Average value of permits in the last 3 years $90,300,000 Number of businesses in Red Deer County 500+ Community halls or centres 40 Golf Courses within County limits 14 Recreation and culture boards 6 transportation Two airports (Red Deer and Innisfail) 90 minutes from both Calgary and Edmonton International airports Served by both CN and CP rail Located along the Highway 2 Corridor between the province s two major centres Located along the Canamex Trade Corridor connecting Canada, the United States, and Mexico A public transit bus runs regular routes through Gasoline Alley and Springbrook waste & waste water 860 waste management accounts Four major waste transfer sites Nine recycling locations in the County 980 water and sewer accounts Part of South Red Deer Waste Water Commission EPCOR provides the County s maintenance and service for water and sewer 91

92 appendix: i - red deer county information agriculture Average farm size: 578 acres Major crops include: Field grains Canola Forage Cereals Livestock production includes: Beef cattle Dairy cattle Hens/chickens Pigs Sheep/lambs Eight Agricultural Societies One Agricultural Service Board Four Watershed conservation groups 12 Drainage basins roads Approximately 3,000 km of local roads (over 500 km paved) LEDCOR is the County s primary contractor for road maintenance 2,500 equipment hours on sanding and snowplowing annually 21,000 hours of grader time on gravel road maintenance 5,200 tonnes of sand and salt used annually on roads 112,000 lineal meters of crack filling annually tax structure Tax Rate Residential Farmland Commercial/Industrial/Linear (power/pipeline) Machinery & Equipment No business tax protective services Red Deer County has: Agreements for fire protection from Delburne, Sylvan Lake, Elnora and Innisfail. A full time Fire Chief, District Fire Chief, Fire Inspector, a Volunteer District Fire Chief and Deputy Chief, three Fire Stations in the Red Deer Fire District, one Fire Station in the Spruce View Fire District, one Fire Station in Bowden and approximately 90 volunteer firefighters. Seven County Peace Officers who enforce County Bylaws and selected Provincial Statutes. Policing by five RCMP detachments (Red Deer Rural, Three Hills, Olds, Innisfail, and Sylvan Lake) Advanced Life Support Ambulance service provided by Alberta Health Services throughout the County. 92

93 appendix: II - strategic plan In the strategic planning process, Council works with the Chief Administrative Officer (CAO) to develop a set of priorities for the coming year. Those priorities are ranked and divided into immediate items (marked NOW), and items that follow (marked NEXT).Each item is given a timeline for completion, with regular check-ins to monitor progress. As one item is completed, another makes its way onto the list. Council also develops a separate list (ADVOCACY), which is work that cannot be completed by Red Deer County alone, but requires the assistance of various levels of government (ex. Provincial or Federal). CORPORATE PRIORITIES (Council/CAO) NOW 1. ECONOMIC DEV. STRATEGIC PLAN: Draft Plan 2. THIRD PARTy FUNDING POLICy: Draft Policy 3. TRANSPORTATION ACTION PLAN: Hwy 2 / COMMUNITy NEEDS ASSESSMENT 5. PENHOLD IDP: Public Consultation TIMELINE November December December January 2017 December NEXT PROCEDURE BYLAW: Public Hearing Process RESIDENTIAL DEVELOPMENT CONSULTATION: Public Consultation COUNTY LAND: Matrix REGIONAL COLLABORATION MATRIX: MGA Compliance ECONOMIC DEVELOPMENT ACTION PLAN AG VIABILITY STRATEGY REVIEW (ASB) ADVOCACY / PARTNERSHIPS Flood Mitigation: Stantec River Study Follow Up Bridge Replacement: Funding AB Transportation: Hwy 791 Future Status Rural Crime Strategy (Justice System) Environment Constraints (Dependent on results of administration process) Ag Plastics Disposal Continuance of MSI Funding Codes: BOLD CAPITALS = NOW Priorities CAPITALS = NEXT Priorities Italics = Advocacy Regular Title Case = Operational Strategies council chambers 93

94 appendix: II - strategic plan The Strategic Planning process benefits the County by ensuring that all parties are aware of the direction set by Council as they move forward throughout the year. The priorities are determined by consensus - usually at a priority-setting retreat. The priorities guide Council and staff during the course of the year, and ensure that efforts are aligned between the two groups.the Strategic Priorities Chart contents were determined by Council and Senior Administration working in a collaborative manner. OPERATIONAL STRATEGIES (CAO/Staff) CAO (Curtis) 1. THIRD PARTy FUNDING POLICy - December 2. TRANSPORTATION ACTION PLAN - December 3. PENHOLD IDP - December PROCEDURE BYLAW: Public Hearing Process Council Orientation: Checklist Review PLANNING & DEVELOPMENT (Dave) 1. ECONOMIC DEV. STRATEGIC PLAN November 2. RESIDENTIAL DEVELOPMENT CONSULTATION: Public Consultation - December 3. REGIONAL COLLABORATION MATRIX: MGA Compliance - December ECONOMIC DEVELOPMENT ACTION PLAN Growth Hamlet ASPs/ARPs Review COMMUNITy & PROTECTIVE SERVICES (Ric) 1. COMMUNITy NEEDS ASSESSMENT Jan Policing Analysis February Regional Emergency Management January 2017 Fire Services Agreement Review Fire Prevention Program Review (Inspection and Fire Smart) OPERATIONS (Marty) 1. AG VIABILITY STRATEGY REVIEW (ASB) Dec. 2. Ag Values Awareness Program - December 3. AB Environment: Code of Practice - December Road Plan Review Asset Management Assessment CORPORATE SERVICES (Heather) 1. COUNTY LAND: Matrix - October 2. Long-Term Financial Plan: Service Level Inventory and Costing January Asset Management Program Development: Bridge Plan November Assessment/Tax Notice Process Review - completed Risk Management Evaluation Codes: BOLD CAPITALS = NOW Priorities CAPITALS = NEXT Priorities Italics = Advocacy Regular Title Case = Operational Strategies Approved July 5, 2016, CC Workshop, October 11, 2016, review and update 94

95 appendix: iii - policies (financial planning) RED DEER COUNTY TITLE: Financial Planning Category: Corporate Services / Finance Policy x Procedure Bylaw Guideline No PURPOSE: The purpose of this policy is to guide financial decisions related to financial planning and supports a financial planning process that assesses the long-term financial implications of current and proposed budgets and other long term financial policies. A financial plan bridges the strategic plan to administration, operations and finance and acts as an overarching decision making document that integrates various financial parameters affecting service delivery and funding sources. The integration assures conflicting policy statements are minimized. GUIDELINES/SCOPE: This policy applies to the entire municipality, including all funds. Statements: The municipality complies with provincial legislation and the Public Sector Accounting Board recommendations. Long term financial planning is used to identify future financial challenges and opportunities through financial forecasting and analysis, and then, based on that information, used to devise strategies to achieve financial stability. A long term financial plan will be developed and reviewed annually during the budget process. When deciding on a course of action that may impact the whole community, the outcome of the decision will be for the benefit of the community as a whole. Core services as mandated by legislation and as required to maintain quality of life will be provided at a base level with minimal interruption to service. Revenues supporting these services will be stable, assured and sustainable. Services outside a municipality s policy or practice will not be provided to the community by the municipality. 95

96 Resources will support a centralized labour workforce providing on-going consistent services. Communication will center on information provision to the community and will meet all legislated requirements. Revenues collected from unreliable, one-time or uncertain sources are to be applied to non-core services or held in reserves for longer term needs. Cash and property investments will be made to first protect and maintain principal and then to maximize returns. Liquidity of investments will align with capital and operating needs. Outsourcing of expertise will be supported if expertise is not available in-house, is project based; requires an independent assessment or opinion, or if there is a need to supplement the current workforce for a period of not more than six months. Reserves will be sufficient to provide for stability of operations, asset replacement and renewal at the end of their useful life, growth obligation and statutory requirements. Infrastructure assets will be replaced once assets reach the end of their useful life and are no longer cost effective to operate and/or they impact health and safety. Notwithstanding, a least cost approach applies that leverages senior government grants, combines projects for synergies (i.e. Water, sewer and road replacements), and joint projects with other organizations. Responsibilities: appendix: iii - policies (financial planning) Administration will develop and provide recommendations for a Long Term Financial Plan. Council will approve the financial plan. 96

97 appendix: IV - policies (accounting for tangible capital assets) RED DEER COUNTY TITLE: ACCOUNTING FOR TANGIBLE CAPITAL ASSETS Category: Corporate Services / Finance No Policy x Procedure Bylaw Guideline PURPOSE The objective of this policy is to prescribe the accounting treatment for tangible capital assets so that users of the financial report can discern information about the investment in property, plant and equipment and the changes in such investment. The principal issues in accounting for tangible capital assets are the recognition of assets, the determination of their carrying amounts, amortization charges and the recognition of any related impairment losses. In addition, this policy covers policy and procedures to: a) Protect and control the use of all tangible capital assets. b) Provide accountability over tangible capital assets. c) Gather and maintain information needed to prepare financial statements in accordance with Public Sector Accounting Handbook Section 3150 (PS 3150). This policy does not apply to intangible assets, natural resources and Crown Lands that have not been purchased by Red Deer County. Government capital grants and government transfers of tangible assets would be accounted for in accordance with Section PS 3410-Government Transfers. SCOPE This policy applies to all tangible capital assets purchased, donated, or controlled by Red Deer County departments, boards and commissions, agencies and other organizations falling within the reporting entity of the County. EFFECTIVE DATE In accordance with PS 3150, the effective date for the reporting and recording of Red Deer County tangible capital assets is January 1,

98 appendix: iv - policies (accounting for tangible capital assets) 1. Tangible Capital Assets non-financial assets having physical substance that: a) Are held for use in the production or supply of goods and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other County tangible capital assets. b) Have useful economic lives extending beyond an accounting period. c) Are to be used on a continuing basis in the County s operations. d) Are not for sale in the ordinary course of operations. 2. Cost is the gross amount of consideration given up to acquire, construct, develop or better a tangible capital asset, and includes all costs directly attributable to acquisition, construction, development or betterment of the tangible capital asset, including installing the asset at the location and in the condition necessary for its intended use. The cost of a contributed tangible capital asset, including a tangible capital asset in lieu of a developer charge, is considered to be equal to its fair value at the date of contribution. Capital grants would not be netted against the cost of the related tangible capital asset. The cost of a leased tangible capital asset is determined in accordance with PUBLIC SECTOR GUIDELINE PSG-2, Leased Tangible Capital Assets. 3. Amortization is the charge of the costs of tangible capital assets that is expensed in the statement of operations over the Useful Life of the asset. The total charged will not include any determined residual value of the asset. 4. Asset Disposal an asset may be disposed of by way of sale, destruction, loss or abandonment. 5. Fair Value is the amount of consideration that would be agreed upon in an arm s length transaction (in other words, the amount of consideration necessary to acquire an asset). 6. Net book value of a tangible capital asset is its cost, less both accumulated amortization and the amount of any write-downs. 7. Residual value is the estimated net realizable value of a tangible capital asset at the end of its useful life to Red Deer County. 8. Service potential is the output or service capacity of a tangible capital asset, and is normally determined by reference to attributes such as physical output capacity, quality of output, associated operating costs, and useful life. 9. Useful life is the estimate of either the period over which a tangible capital asset is to be used by Red Deer County, or the number of production or similar units that can be obtained from the tangible capital asset by Red Deer County. The life of a tangible capital asset may extend beyond the useful life of a tangible capital asset to Red Deer County. The life of a tangible capital asset, other than land, is finite, and is normally the shortest of the physical, technological, commercial and legal life. 10. Betterments - subsequent expenditures on tangible capital assets that: a) Increase previously assessed physical output or service capacity; b) Lower associated operating costs; c) Extend the useful life of the asset beyond 10 years; or d) Improve the quality of the output. 98 Any other expenditure would be considered a repair or maintenance and expensed in the period incurred.

99 appendix: IV - policies (accounting for tangible capital assets) 11. Maintenance and repairs maintain the predetermined service potential of a tangible capital asset for a given useful life. Such expenditures are charged in the accounting period in which they are made. 12. Group Assets are assets that have a unit value below the capitalization threshold but have a material value as a group. Group assets are recorded as a single asset with one combined value. Although recorded in the financial systems as a single asset, each unit may be recorded in the asset sub-ledger for monitoring and control of its use and maintenance. 13. Capital Lease is a lease with contractual terms that transfer substantially all the benefits and risks inherent in ownership of property to the County. For substantially all of the benefits and risks of ownership to be transferred to the County, one or more of the following conditions must be met: a) There is reasonable assurance that the County will obtain ownership of the leased property by the end of the lease term. b) The lease term is of such duration, that the County will receive substantially all of the economic benefits to be derived from the use of the leased property over its life span. c) The lessor would be assured of recovering the investment in the leased property and of earning a return on the investment as a result of the lease agreement. 14. Control is a situation where Red Deer County does not have legal title of an asset, however, is the beneficiary of future economic benefits. Red Deer County would also be responsible for the asset s performance, availability and maintenance. 15. Construction in Progress is a situation which occurs when an asset is constructed and not completed during a specific reporting period. Charges are consolidated but not eligible for amortization until substantial completion. POLICy STATEMENT 1. Classification/Sub Classifications - A classification of assets is a grouping of assets of a similar nature or function in the County s operations as well as similar Useful Lifes. A sub classification is a further relevant breakdown of classifications. The following list of classifications/sub classifications will be used: Land Land improvements Buildings Engineered Structures Roadway System Water Systems Wastewater System Storm/Drainage System Equipment and Machinery Vehicles Cultural and Historical Assets Land includes land purchased or acquired for value for parks and recreation, building sites, infrastructure (highways, dams, bridges, tunnels, etc.) and other program use, but not land held for resale. Land improvements are all improvements of a permanent nature to land such as parking lots, landscaping, lighting, pathways, and fences. 99

100 appendix: iv - policies (accounting for tangible capital assets) Buildings are permanent, temporary or portable building structures, such as offices, garages, warehouses, and recreation facilities intended to shelter persons and/or goods, machinery, equipment and working space. Engineered structures are permanent structural works such as roads, bridges, canals, dams, water, sewer, utility distribution and transmission system (including plants and substations). Roadway system includes assets intended for the direct purpose of vehicle or pedestrian travel or to aid in vehicle or pedestrian travel. Includes roads, bridges, overpasses, ramps, parkades, lights, sidewalks and signage. Water system includes systems for the provision of water through pipes or other constructed convey. It is normally comprised of assets for the intake, distribution, storage and treatment of safe potable water. It may also be comprised of assets required to distribute non-potable water. Includes mains, services, pump and lift stations, plants and equipment, reservoirs and fire hydrants. Wastewater system - wastewater is defined as water that has been used for household, business and other purposes, which flows from private plumbing systems to public sanitary sewers and on to a treatment plant. This system is comprised of assets used for the collection and treatment of nonpotable water intended for return to a natural water system or other originating water source or used for other environmentally approved purposes. Includes mains, services, pump and lift stations, lagoons, plants and facilities. Machinery and equipment includes equipment that is heavy equipment for constructing infrastructure, smaller equipment in buildings and offices, furnishings, computer hardware and software. This class does not include stationary equipment used in the engineered structures class. Vehicles include rolling stock that is used primarily for transportation purposes. Cultural and historical assets are works of art and historical treasures that have cultural, aesthetic or historical value that are worth preserving perpetually. These assets are not recognized as tangible capital assets in the financial statements, but the existence of such property should be disclosed. Buildings declared as heritage sites may be included in this asset classification. 2. Valuation - Tangible capital assets will be recorded at cost plus all additional charges necessary to place the asset in its intended location and condition for use. Purchased Assets - Cost is the gross amount of consideration paid to acquire the asset. It includes all non-refundable taxes and duties, freight and delivery charges, installation and site preparation costs, etc. Cost of land includes purchase price plus legal fees, land registration fees, taxes, etc. Costs would include any costs necessary to make the land suitable for its intended use. When two or more assets are acquired for a single purchase price, it is necessary to allocate the purchase price to the various assets acquired. Allocation should be based on the fair value of each asset at the time of acquisition or some other reasonable basis if fair value is not readily determinable. Acquired, Constructed or Developed Assets - Cost includes all costs directly attributable (e.g. construction, architectural and other professional fees) to the acquisition, construction or development of the asset. Carrying costs such as internal design, inspection, administrative, interest and other similar costs will be capitalized. Capitalization of general administrative overhead is not permitted. 100

101 appendix: iv - policies (accounting for tangible capital assets) Capitalization of carrying costs ceases when no construction or development is taking place or when the tangible capital asset is ready for use. Donated or Contributed Assets - The cost of donated or contributed assets is equal to the fair value at the date of construction or contribution. Fair value may be determined using market or appraisal values. Cost may be determined by an estimate of replacement cost; additional costs will be capitalized. Subdivision assets, which are contributed, will be valued at the time of issuance of the Final Acceptance Certificate. Initial Recognition of Tangible Assets without Historical Cost Records - Where historical costs are not available from review of County records, initial costs will be estimated using the Reproduction Cost method. The method identifies the cost of reproducing an asset in substantially identical form. It does not attempt to take into account impacts on costs such as changes in technology or construction methods. This estimated current value will be adjusted by a deflationary factor to estimate the original cost of the asset when acquired, constructed or developed. Deflation will be accomplished using appropriate specific price indexes such as a construction index available through Stats Canada. If the exact date of acquisition is unknown, a reasonable estimate will be used. The resultant estimated historical cost less salvage value is amortized from the date of acquisition to the current date to reflect the remaining useful life of the asset. 3. Capitalization Thresholds - Tangible capital assets should be capitalized according to the following thresholds: ASSET CATEGORy THRESHOLD Land Capitalize all Land Improvements 5,000 Buildings 50,000 Engineered Structures 50,000 Machinery & Equipment 5,000 Vehicles 5, Portable Assets - Certain items will be tracked, that fall below the capitalization/reporting threshold, for control and security reasons. In accordance with the capitalization policy, these items will be expensed when purchased. A description of the items and their location will be recorded in the separate maintained lists. These items include: a) Computer workstations b) Video recorders/cameras c) Cell phones d) Fax machines e) Printers f) Certain high risk tools 101

102 appendix: iv - policies (accounting for tangible capital assets) 5. Componentization - Tangible capital assets may be accounted for using either the single asset or component approach. Whether the component approach will be used will be determined by the usefulness of the information versus the cost of collecting and maintaining information at the component level. Consideration factors used to determine whether or not to use a component approach should include: a) Major components have significantly different useful lives and consumption patterns than the related tangible capital asset. b) Value of components in relation to the related tangible capital asset. Infrastructure Systems will generally be valued using the component approach. Major components should be grouped when the assets have similar characteristics and estimated useful lives or consumption rates. 6. Amortization - The cost of a tangible capital asset with a limited life should be amortized over its useful life in a rational and systematic manner appropriate to its nature and use. The amortization method and estimate of useful life of the remaining unamortized portion should be reviewed on a frequent basis and revised when the appropriateness of a change can clearly be demonstrated. The effect of any change to useful life would be recorded in the year of the revision and future years. The County uses a straight-line method with no residual value in calculating the annual amortization. The following schedule outlines the number of years each class is to be amortized. County departments, boards and commissions, agencies and other organizations are responsible for establishing and utilizing an appropriate estimated useful life for assets acquired. Asset Classes Major Minor Sub-class One Sub-class Two Sub-class Three Land Right-of-way Undeveloped right-of-way Parks General Maximum Useful Life 102

103 appendix: iv - policies (accounting for tangible capital assets) Land Improvements Parking lot Gravel Asphalt Playground structures Landscaping Fences Sprinkler systems Golf courses Tennis courts Fountains Lakes/ponds Retaining walls Running tracks Outdoor lighting Airport runways Soccer pitch - outdoor Bike/jogging Paths Gravel Asphalt Landfill Pits Pads Transfer stations Construction in progress Buildings Permanent Structures Frame Metal Concrete Portable Structures Metal Frame Leasehold improvements Construction in progress Volume Volume Variable 103

104 appendix: IV - policies (accounting for tangible capital assets) Engineered Structures Roadway system Bridges Overpass/interchange Curb & gutter Parkades Roads & streets Lanes/alleys ACP - hot mix Gravel Nonconforming Local/Collector/Arterial/Major Arterial Surface Concrete ACP - hot mix/asphalt ACP - cold mix Chip seal Oil Subsurface Road signs Traffic control Information Lights Decorative Street Traffic Guard rails Ramps Sidewalks & para-ramps Light rail system Construction in progress (* subject to weather conditions) Water system Distribution system Pump, lift and transfer stations Plants and facilities Structures Treatment equipment Pumping equipment Hydrants/fire protection Reservoirs Construction in progress Variable * 15* 20* 30* 15* 7* 7* 5* 40*

105 appendix: IV - policies (accounting for tangible capital assets) Water system Distribution system Pump, lift and transfer stations Plants and facilities Structures Treatment equipment Pumping equipment Hydrants/fire protection Reservoirs Construction in progress Wastewater system Collection system Pump, lift and transfer stations Plants and facilities Structures Treatment equipment Pumping equipment Lagoons Construction in progress Storm system Collection system Pump, lift and transfer stations Catch basins Outfalls Wetlands Retention ponds Treatment facility Construction in progress Machinery and Equipment Heavy construction equipment Stores Food services Fire equipment Police special equipment Aircraft Boats Fitness and wellness Control systems Variable Variable

106 appendix: IV - policies (accounting for tangible capital assets) Communication links SCADA system Fuelling stations Laboratory Communications Radios Telephone systems Tools, shop and garage equipment Scales Bins Meters Electrical Cumulative Interval Gas Water Parking meters and splitters Turf equipment Ice re-surfacer Office Furniture & Equipment Furniture Office equipment Audiovisual Photocopiers Computer Systems Hardware Software Construction in progress Vehicles Light duty Medium duty Transit Buses Heavy duty Fire trucks (May 2010) Cultural & Historical Assets Public art Historical Heritage site Amortization will begin in the month following purchase or completion of construction. Assets will be amortized up to and including month of disposal. 7. Disposal - When tangible capital assets are sold, taken out of service, destroyed or replaced due to obsolescence, scrapping or dismantling, the department head or designate must notify the County s Corporate Services Department of the asset description and effective date. Corporate Services must record the gain or loss on disposal and remove the asset from the fixed asset subledger. 106 The Asset number and a Disposal form (to be created) must be given to Corporate Services.

107 appendix: iv - policies (accounting for tangible capital assets) 8. Reviews Asset counts and reviews need to be done periodically by each department. The purpose of the review is to determine existence, impairment, and update useful life changes where appropriate. The review schedule for each asset category is as follows: ASSET CATEGORy Land Land Improvements Buildings Engineered Structures Machinery & Equipment Vehicles REVIEW Yearly 3 Years 3 Years 5 Years 3 Years Yearly During this review all assets should be reviewed for other conditions including: a) Concerns regarding health and safety of employees or public which may come in contact with the item. b) Concerns regarding environmental issues the item may pose. All concerns should be reviewed, documented, and communicated to the head of the appropriate department who will decide how to proceed with the issue according to other appropriate County policies. 9. Impairment When conditions indicate that a tangible capital asset no longer contributes to Red Deer County s ability to provide goods and services, or that the value of future economic benefits associated with the tangible capital asset is less than its net book value, the cost of the tangible capital asset should be reduced to reflect the decline in the asset s value. 10. Write-Downs If a permanent impairment is identified, a write-down adjustment to the cost of the asset is required. A corresponding adjustment is reported as an expense in the statement of operations. The new cost is to be amortized over the remaining useful life of the asset. Any write-downs recorded should not be reversed. 11. Capital Leases - Capital leases meeting the definition described herein will be recorded as an asset acquisition and an incurred liability. The threshold will be determined by the category of the asset leased. 12. Reporting/Disclosure The financial statements should disclose, for each major category of tangible capital assets and in total: a) cost at the beginning and end of the period; b) additions in the period; c) disposals in the period; d) the amount of any write-downs in the period; e) the amount of amortization of the costs of tangible capital assets for the period; 107

108 appendix: IV - policies (accounting for tangible capital assets) f) accumulated amortization at the beginning and end of the period; and g) net carrying amount at the beginning and end of the period. Financial statements should also disclose the following information about tangible capital assets: a) the amortization method used, including the amortization period or rate for each major category of tangible capital asset; b) the net book value of tangible capital assets not being amortized because they are under construction or development or have been removed from service; c) the nature and amount of contributed tangible capital assets received in the period and recognized in the financial statements; d) the nature and use of tangible capital assets recognized at nominal value; e) the nature of the works of art and historical treasures held by the government; and f) the amount of interest capitalized in the period. (PS ) 13. Asset Identification System An internal asset identification system should be developed for each category. As the attributes of each asset are different in terms of presence and control, a different system may be required for each Category. This system will include unique numbering identification as well as physical marking of asset to help future recall during the review process. This number will be recorded in the Asset Subledger system. 14. Asset Subledger The Bellamy Capital Asset system will be used to as the Tangible Capital Asset subledger. This system will be responsible for all reporting requirements regarding Tangible Capital Assets. The availability of the fields in the system may limit what information may be gathered for each asset; however, at minimum, the following should be retained where possible a) Internal Unit Number b) Name of asset c) Physical description d) Serial Number e) Date of acquisition (purchase, creation, donation, forfeiture) f) Department g) Location h) Historical cost i) Expected useful Life j) Amortization method, rate, and amount k) Book value l) Date of disposal m) Proceeds of disposal Corporate Service will be responsible to ensure the subledger is in balance with the financial system on a monthly basis. All departments will be responsible to ensure all asset information is supplied in a timely manner to Corporate Services so that this can be achieved. 108

109 appendix: IV - policies (accounting for tangible capital assets) 15. Chart Summary Major Asset Class Minor Asset Class Capitalization Threshold Amortization Method Review Schedule Land All land will be recorded N/A Yearly Land 5,000 Straight Line Every 3 years Improvements Buildings 50,000 Straight Line Every 3 years Engineered Roadway Straight Line Every 5 years Structures System 50,000 Water System 50,000 Straight Line Every 5 years Wastewater Straight Line Every 5 years System 50,000 Storm System Straight Line Every 5 years 50,000 Machinery 5,000 Straight Line Every 3 years & Equipment Vehicles 5,000 Straight Line Yearly 109

110 appendix: v - policies (financial reserves) RED DEER COUNTY TITLE: FINANCIAL RESERVES Category: Corporate Services / Finance Policy x Procedure Bylaw Guideline No AUTHORITy: CC DATE: October 20, 2015 REPLACES: CC DATE: May 22, 2007 Further References: PURPOSE The purpose of this policy is to establish consistent standards and guidelines for the management of existing reserves and the establishment of new reserves. A Reserve Policy is required to establish, maintain and manage reserve funds that: maintain and improve Red Deer County s working capital requirements; provide for future operating and capital requirements; address the overall current and future initiatives of Red Deer County; and provide for offsetting unanticipated fluctuations in operating activities. SCOPE Reserves will be established within the following scope: A. Cash in lieu of Municipal Reserve - is a fund of reserves that the municipality has received from developers and/or landowners in lieu of public reserve lands. The funds are invested in cash and term deposits and are administered as per Division 8 and 9 of Part 17 of the Municipal Government Act. B. Operating Reserves - are those reserves that are generally established to fund one-time expenditures of an operating nature. C. Capital Reserves - are those reserves that are generally established to fund expenditures and projects of a capital nature, as defined by the Capitalization Policy. D. Program Reserves are reserves that are comprised of special levies for specific programs and are used to fund the operating and/or capital expenditures of such programs. E. Off-Site Levy Reserves - are comprised of fees collected from new development and are reported in the County s financial statements as revenue collected against the appropriate capital expenditures. 110

111 GUIDELINES appendix: v - policies (financial reserves) 1. All reserve transactions, redesignations, revisions and new reserve requests must be ratified by Council. These approvals will be comprehensively reviewed by the external auditor at the close of the fiscal year. 2. All reserves must be fully described in Schedule A and include: a) the purpose of the reserve, b) what sources provide inflow to the reserve, and c) target balance expectations for the fund balance, if applicable. Unless otherwise stated, all funds are considered committed for the specific purpose as outlined by the reserve. Program Reserves are intended to accumulate funds dedicated to the delivery of the program and shall have no specific target. 3. All reserve accounts must be represented in the County s annual financial statements. 4. All reserves must be reviewed annually by the County Manager and Council to determine if the reserves are still required. When the original intent of the reserve has been met or changed, any remaining amounts in the reserve shall, through an appropriate review and approval process, be either returned to surplus or redesignated. 5. Reserves can be funded from either internal or external sources: Examples of internal sources of funds: approved budget contributions; carry over of prior year s approved budget funds which were approved for a specific (reserve) purpose but were not expended by year-end due to specific circumstances; and annual surplus contributions. Examples of external sources of funds: government grants; donations; borrowing (for future repayment through the collection of levies); and development levies. 6. Departmental Directors may submit reserve requests to fund existing or new reserves: through the annual budget process; from the prior year s unexpended operating or capital budgets to fund carry-over projects that were not expended by year end due to specific circumstances; through the request to utilize unbudgeted revenues; or from annual budget surpluses to fund new or ongoing initiatives. 7. Prior approval must be obtained for all expenditures from reserves: from the annual operating or capital budget approval process; from an approval for a project carry over; through existing Municipal Policies, where applicable; or via Council resolution. 111

112 appendix: v - policies (financial reserves) 8. Approval to redesignate reserve funds or approval for inter-reserve fund transfers must be obtained prior to the transaction occurring from: the County Manager, with a report to Council, for redesignations / inter-reserve transfers of $100,000 or less; or Council for redesignations / inter-reserve transfers greater than $100, Expenditures from reserves must not exceed the reserve balance unless it can be demonstrated to Council through financial cash flow projections that future sources of revenues will provide adequate funding to return the reserve to a positive position. 10. Reserve transactions will not be processed until actual expenditures are incurred. Departmental Directors must notify Financial Services when reserve funding for these expenditures is required. 112

113 appendix: v - policies (financial reserves) Reserve Name Purpose Inflow Target OPERATING RESERVES General Operating Reserve Bridges & Drainage Reserve Future Development Cash in lieu of Municipal Reserves Community Services Levy Regional Utility Reserve Environmental Levy Reserve Protectice Services Levy Reserve Schedule A - Financial Reserves Policy To fund programs and services related to the delivery of operations of the municipality Approved budget contributions; carry-over of prior year's approved budget funds for a specific project and annual surplus contributions CAPITAL RESERVES To fund bridges and drainage projects, reserve was initiated due to significant infrastructure Annual budgetary contribution deficit and Provincial downloading responsibility To fund future development - TBD initially intended for planning PROGRAM SPECIFIC RESERVES To fund public parks, recreation areas or school authority developments as are allowed by Section 671(2) of the Municipal Government Act To fund Community service initiatives, operating or capital deficits. To fund capital expenses related to regional utilities (water, sewer or storm). To fund Environmental initiatives, operating or capital deficits. Initially set up to self-fund Horn Hill transfer station (deficit position initially - since paid off). To fund Protective Service initiatives, operating or capital deficits. Funds are collected as part of the Subdivision approval process, and payments are outlined in a Subdivision Servicing agreement Fees collected from Community Services Levy, spent on operating and capital expenditures and the remaining surplus/deficit funded to/from this reserve. Fees collected from regional utilities (water only at this time), spent on operating and capital expenditures and the remaining surplus/deficit funded to/from this reserve. Fees collected from Environmental Levy, spent on operating and capital expenditures and the remaining surplus/deficit funded to/from this reserve. Fees collected from Protective Services Levy, spent on operating and capital expenditures and the remaining surplus/deficit funded to/from this reserve. One year's municipal tax levy maximum. 5 years' worth of bridge capital deficit TBD N/A Sufficient levels to fund long range planning Sufficient levels to fund long range planning Sufficient levels to fund long range planning Sufficient levels to fund long range planning 113

114 appendix: vi - policies (financial budgeting and reporting) TITLE: Financial Budgeting and Reporting Category: Corporate Services / Finance No RED DEER COUNTY Policy x Procedure Bylaw Guideline AUTHORITy: CC DATE: October 20, 2015 REPLACES: DATE: Further References: PURPOSE: The purpose of this policy is to provide requirements and guidelines for the development, Amendment, monitoring and control of the financial plan. GUIDELINES/SCOPE: This policy applies to the entire municipality, including all funds. Statements: Budget Planning Terms A financial plan shall be developed and approved by Council on an annual basis no later than December 31 in the year preceding the respective plan year. Administration will budget Operating for three years and Capital for five years. This plan will be confirmed and amended annually. Basis of Accounting and Budget Format The budget shall be prepared on a basis of accounting consistent with legislated requirements (cash flow basis), but in a format where revenues and expenses may be easily compared to actual revenues and expenses in the Annual Financial Statements, Statement of Operations (accrual basis). Budgetary Guidelines Early in the budget development process, Council will, based on preliminary budget estimates, provide guidelines or parameters for development of the plan including an indication of the desired service levels, Council priorities and an acceptable property tax and utility rate change. Content The budget document shall contain the following information at a minimum: 1) Estimated sources and uses of funds for the coming budget year and forecasts for the following two years. 2) Review and assessment of the municipality s current financial health and future outlook, including identification of potential significant financial issues and events. 3) Work plans that identify strategies and high-level action plans to be undertaken in the budget year to support corporate/council goals and priorities. 114

115 appendix: vi - policies (financial budgeting and reporting) Budget Development Model The Incremental Budget Model, augmented by a specific program of ongoing and periodic service and process reviews, shall be used to develop the budget. The Incremental Budget Model focuses on identifying and making decisions on changes to the prior year s budget (referred to as the base budget). The specific program of on-going and periodic service and process reviews focuses on examining the services and processes contained in the base budget to ensure that they are still required and relevant, are in alignment with corporate priorities, and meet value for money objectives of effectiveness, efficiency and economy. Performance Measurement and Reporting Performance measures shall be developed and reported to assess the performance towards achieving corporate goals and priorities and for all major service areas. The primary means of performance reporting will be quarterly reporting on progress (i.e. actions taken towards achieving corporate goals and priorities) through the use of the Budget Variance Report. 115

116 appendix: vii - policies (asset management) RED DEER COUNTY TITLE: ASSET MANAGEMENT Category: Corporate Services / Finance Policy x Procedure Bylaw Guideline No AUTHORITy: CC DATE: October 20, 2015 REPLACES: DATE: Further References: Accounting for Tangible Capital Assets No Disposal of Fixed Assets No Purchasing Policy No PURPOSE: To establish guidelines for implementing consistent asset management practices and procedures across departments throughout Red Deer County. This policy facilitates logical, methodical, informed decision making for the life cycle planning of assets to achieve greater asset sustainability and effective allocation of resources. Further, it will establish consistency with regard to rehabilitation, repair and replacement of County assets. GUIDELINES/SCOPE: Asset Management the combination of management, financial, economic, and engineering and other practices applied to physical assets, with the objective of providing the required level of service in the most cost-effective manner throughout the asset life cycle. Asset property, plant and equipment which meet all three criteria: a) Used in the production or supply of goods and services or for the development, asset construction, maintenance or repair of other capital assets; b) Acquired, constructed or developed with the intention of being used on a continuing basis for greater than one year; and c) Not intended for sale in the normal course of operations. 116

117 appendix: vii - policies (asset management) Standards: 1. Maintain and manage infrastructure assets by making informed decisions, identifying all revenues and costs (including operation, maintenance, replacement and decommission) associated with infrastructure asset decisions, including additions and deletions. 2. Monitor standards and service levels to ensure that they meet/support community and Council s goals and objectives. 3. Develop and maintain asset inventories of all its infrastructure. 4. Establish replacement strategies through the use of full life cycle costing principles. 5. Plan financially for the appropriate level of maintenance of assets to deliver service levels and extend the useful life of assets. 6. Plan for and provide stable long term funding to replace and/or renew and/or decommission infrastructure assets. 7. Consider and incorporate asset management in its other corporate plans. 8. Report to stakeholders regularly on the status and performance of work related to the implementation of this asset management policy. 9. All trade-offs and prioritized decisions should be articulated and evaluated and the basis for the decision recorded. 117

118 appendix: viii - policies (revenue policy) RED DEER COUNTY TITLE: Revenue Policy Category: Corporate Services / Finance Policy x Procedure Bylaw Guideline No AUTHORITy: CC DATE: October 20, 2015 REPLACES: DATE: Further References: PURPOSE: The purpose of this policy is to provide a framework for decisions related to the primary sources of revenue Red Deer County receives as a municipality. GUIDELINES/SCOPE: Taxes and User Fees are the primary sources of revenue for Red Deer County. Taxes are general charges imposed on a parcel and can include local improvement levies, while User fees are based on utility connections and consumption, according to use. Tax Revenue: Red Deer County s Tax Bylaw authorizes the setting of several rates of taxation imposed for all purposes. Taxes are a mixture of Public or Separate School Taxes and Municipal Taxes. These rates combined, multiplied by the assessed value, determine the amount of property tax an owner pays. Municipal tax rates are determined based on the total taxable assessment and the budget requirements of the municipality. Council reviews and approves the Tax Bylaw each year to set the annual mill rate. Taxes are used to fund local programs and services. These include (but are not limited to) road construction and maintenance, garbage facilities, parks and leisure facilities, police and fire protection, seniors lodges, education and water and sewer services. User Fee Revenue: The Municipal Government Act permits municipalities to charge fees for providing services, information and various applications and appeals. User fees should conform to the MGA and any other relevant legislation. 118

119 appendix: viii - policies (revenue policy) User Fee Revenue: The Municipal Government Act permits municipalities to charge fees for providing services, information and various applications and appeals. User fees should conform to the MGA and any other relevant legislation. The Fee Bylaw is reviewed and updated annually to ensure adequate user fee revenues are captured in order to sustain existing service levels and to pay for the full cost of providing the service. Full costs include all direct costs associated with providing the service, amortization, and allocated overhead costs for departmental and general government operations. Grant Revenue: Recent annual grant programs include the Gas Tax Fund, the Municipal Sustainability Initiative and the Agricultural Service Board Grant. The Province has indicated that the focus of upcoming grants will generally relate to addressing public/environmental health issues and supporting sound and sustainable management practices. Other successful grant applications have included funding from the Building Canada Fund and from programs that fund Agricultural initiatives. Administration will seek out and apply for grants that address municipal goals and priorities and for which the benefits outweigh the costs. As there is no assurance that annual grant programs will continue or other applications will be successful, adequate Tax and User fee revenues must be collected. One-Time Revenue: One-time revenues should not be used to fund on-going operating expenses. Responsibilities: Administration will be responsible to review Tax and User fee revenues to ensure they are maintained at relatively stable levels and are aligned with cost of service changes, when recommending rates to Council. Administration will also ensure the annual budget cycle process includes any adjustments. 119

120 appendix: IX - policies (debt management) RED DEER COUNTY TITLE: Debt Management Category: Corporate Services / Finance Policy x Procedure Bylaw Guideline No AUTHORITy: CC DATE: October 20, 2015 REPLACES: DATE: Further References: Municipal Government Act, ACFA Guidelines and Reserve Policy PURPOSE: The purpose of this policy is to establish financial guidelines and appropriate controls for the issuance and use of new debt and to ensure a favorable financial position while supporting the Red Deer County s ability to meet current and future infrastructure challenges. GUIDELINES/SCOPE: ACFA means the Alberta Capital Finance Authority, a provincial authority that provides local entities with financing for capital projects. Debt incudes: a) debentures acquired through the ACFA, and b) debt acquired through a bank via a line of credits, an operating loan or credit cards. Conditions for Acquiring Debt Council may enter into debt obligations: a) to finance the construction or acquisition of infrastructure and other assets, b) to refinance existing debt, and c) if the debenture aligns with Red Deer County s capital plans and strategies and other financial and non-financial considerations that supports the goals and objectives of Red Deer County. The debt limit is calculated at 1.5 times revenue of the municipality (as defined in Alberta Regulation 255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. 120

121 appendix: IX - policies (debt management) Council may enter into debt obligations: a) to finance the construction or acquisition of infrastructure and other assets, b) to refinance existing debt, and c) if the debenture aligns with Red Deer County s capital plans and strategies and other financial and non-financial considerations that supports the goals and objectives of Red Deer County. The debt limit is calculated at 1.5 times revenue of the municipality (as defined in Alberta Regulation 255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. Debit Terms and Conditions All debt obligations shall have a maximum maturity of either: a) the estimated useful life of the infrastructure or other assets being financed; or b) the maximum maturity allowed under Alberta Finance Authority Guidelines. When issuing debt, Red Deer County will comply with: a) ACFA borrowing procedures as set out in the Municipal Government Act, and b) the sections of the Municipal Government Act governing borrowing bylaws. Red Deer County s debt financing policy complements and supports the municipality s strategic plan while emphasizing policy coordination between debt, reserve and taxation management. 121

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143 appendix: XI - GLOSSARY Alternative Service Delivery Approved Budget Refers to the County's model of contracting out service delivery normally done by a public works department. Effectively transferring responsibility for the delivery of public services to nongovernment entities, for example grading and ploughing of roads. The final budget passed by Council which will govern the operations and reporting during the fiscal year. Assessment Asset Management Assets Balanced Budget Capital Budget Capital Expenditure Capital Reserve Community Services Levy A value established for real property for the use of establishing taxes. The combination of management, financial, economic, and engineering and other practices applied to physical assets, with the objective of providing the required level of service in the most cost effective manner throughout the asset life cycle. All tangible property owned by the County. A plan where total revenues match total expenditures and revenues. A plan of proposed capital expenditures to be incurred in the current year and future years, identifying each capital project. Money spent on maintaining or acquiring a fixed asset. Capital expenditures are funded by operating (primarily taxes) and capital revenue. Those reserves that are generally established to fund expenditures and projects of a capital nature, as defined by the capitalization Policy. Special taxes collected to fund Community service initiatives, operating or capital deficits. Contracted Services Services rendered by other companies for the County for maintenance, professional services etc. Environmental Services Levy FCSS (Family Community Support Services) Financial Reserves Special taxes collected to fund Environmental initiatives, operating or capital deficits. Partnership between municipal/provincial governments to provide social programs for families at the local level. Funds set aside for future use. 143

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148 Budget Heather Gray-Surkan, Director of Corporate Services Phone: facebook.com/reddeercounty youtube.com/rdcounty twitter.com/reddeercounty