APPROVED BUDGET & FINANCIAL PLAN

Transcription

1 APPROVED BUDGET & FINANCIAL PLAN Regional Municipality of Wood Buffalo Consolidation and Transformation of the Big Plans

2 2

3 INTRODUCTION 3

4 ORGANIZATION STRUCTURE 4

5 5 CITIZENS COUNCIL Communications and Stakeholder Relations Leanne McCarthy (Acting) Municipal Auditor Ralph Timleck CAO Marcel Ulliac Legal and Legislative Services David Leflar Corporate Services Division Elsie Hutton Community and Protective Services Division Bob Couture Infrastructure and Engineering Division Kevin Scoble Planning and Regional Development Division Brian Moore Assessment & Taxation Vacant Aboriginal & Rural Relations Maggie Farrington Engineering Emdad Haque Economic Development Jeff Penney Finance Kola Oladimeji Community Services Carole Bouchard Environmental Services Operations Darcy Dragonetti Land Administration Keith Smith Human Resources Roseanne Hall RCMP and Bylaw Services Dale Bendfeld Public Works Robert Kirby Planning & Development Vacant Information and Advisory Services Leanne McCarthy Regional Emergency Services Darby Allen Sustainable Operations Leslie Burke Supply Chain Management Ted Zlotnik Revised Jan 29/15

6 6 ORGANIZATIONAL STRUCTURE CHANGES The 2015 Budget and Financial Plan was developed based on an organizational structure (as at September 30, 2014) that was in place before the recommendation was made to establish a new organization structure. Many of the reorganizational changes were being implemented during the budget development process and therefore, the presentation of the 2015 Budget is not, in some cases, aligned with the current organization structure. Although the 2015 Budget was built on the previous structure, and although the current organizational structure does not look the same, the total budget is not affected by the new structure.

7 7 CITIZENS COUNCIL Communications and Stakeholder Relations Leanne McCarthy (Acting) Municipal Auditor Ralph Timleck CAO Marcel Ulliac (Interim) Legal and Legislative Services David Leflar COO Brian Moore (Interim) Regional Emergency Services Darby Allen RCMP/Bylaw Services Bob Couture City Centre Brian Moore (Acting) Corporate & Community Services Vacant CFO Financial Services Elsie Hutton Public Infrastructure & Planning Kevin Scoble (Acting) Aboriginal & Rural Relations Maggie Farrington Advisory Services Leanne McCarthy Community Services Carole Bouchard Human Resources Roseanne Hall Information Services Kevin Brown Assessment & Taxation Brian Moore Finance Kola Oladimeji Supply Chain Management Ted Zlotnik Engineering Emdad Haque Environmental Services Sustainability Initiatives Kevin Scoble Planning & Development Felice Mazzoni Public Operations Robert Kirby (Acting) Environmental Services Operations Darcy Dragonetti (Acting) Land Administration Keith Smith (Acting) As of Sept

8 2015 BUDGET DOCUMENT READERS GUIDE 8

9 APPROVED BUDGET DOCUMENT READERS GUIDE The budget document describes how the Regional Municipality of Wood Buffalo plans to meet the public service and infrastructure needs of its residents. In addition, the budget document provides resourceful information for residents interested in learning about the operation of the municipality. The Regional Municipality of Wood Buffalo s budget document seeks to meet several functions: POLICY DOCUMENT: At the highest level, the budget document is a culmination of a comprehensive operational review. Council and Administration review the needs of the region, priorities and goals and then match resources against those needs, priorities and goals. Resources are limited, so choices must be made. The annual budget reflects those choices. FINANCIAL PLAN: The budget document establishes the basic guidelines that the municipality uses to measure and control expenditures and to track revenues. OPERATING GUIDE: The budget document identifies work plans and goals to be achieved for each division in the coming year. COMMUNICATION TOOL: The budget document is one of the means the municipality uses to explain the various demands, needs, constraints, resources, and opportunities it faces. The budget document communicates the choices made and the direction in which the municipality is headed. The budget document has been arranged in a manner that assists the reader in understanding how and why the municipality budgets as it does and to provide summary level information at the beginning of the budget document with more detailed information at the end. Not only is the budget document arranged from summary to more detailed, each section is arranged in the same manner. The Regional Municipality of Wood Buffalo s budget document is arranged into four (4) primary sections: INTRODUCTION 2015 OPERATING & CAPITAL BUDGET & FINANCIAL PLAN OVERVIEW 2015 APPROVED DIVISION BUDGETS 2015 CAPITAL BUDGET & CAPITAL IMPROVEMENT PLAN APPENDICES INTRODUCTION Regional Municipality of Wood Buffalo community profile this subsection provides an overview of the municipality s governance structure; elected officials and administration. This is achieved through the inclusion of a map showing the elected officials and their associated wards as well as including an organization chart. It also includes the budget document reader s guide and budget messages OPERATING & CAPITAL BUDGET AND FINANCIAL PLAN OVERVIEW 2015 Approved Operating Budget Overview this subsection contains budget analysis and discussion and provides brief overviews on; financial position, revenue, expenses, personnel and debt from 2011 through The budget overview focuses on the 2015 budget decisions and how these will meet community priorities in 2015 and their impact in the next two years. This section is designed to be a complete summary of the entire budget APPROVED DIVISION BUDGETS This section contains six subsections: Division Mandate, Executive Directors Message, Division Profile, 2015 Major Initiatives, Financial Summaries, and Personnel Summaries for each of the Regional Municipality of Wood Buffalo s Operating Divisions.

10 CAPITAL IMPROVEMENT PLAN Capital Budget and Plan Overview this section contains details about the Regional Municipality of Wood Buffalo s approved 2015 capital budget and capital plan. The section is broken into major capital program sections; public facilities, recreation and culture, and transportation. APPENDIX A BUDGET DEVELOPMENT PRINCIPLES Budget development principles outline the Municipal Development Plan and the Strategic Plans. These set the vision on how to accommodate anticipated growth responsibly while building a sustainable community. APPENDIX B 2015 OPERATING BUDGET AND OPERATING PLAN GUIDELINES Budget guidelines are broken into three (3) areas; general assumptions and guiding principles, operating budget guidelines and assumptions, and capital budget guidelines, funding sources, and funding allocations. This section provides context for the budget development. APPENDIX C 2015 CAPITAL BUDGET AND CAPITAL PLAN GUIDELINES This section provides context for the capital budget development CAPITAL BUDGET REVIEW This section contains details about the Regional Municipality of Wood Buffalo s recommended 2015 capital budget and capital plan. The section is broken into major themes: Assigned Resources, Unassigned Resources and by Delivery Department. Annualization Actuals Committed Debt Department Division Projected Definitions This is the process of calculating the annual equivalent of a cost. This refers to audited accounting numbers. A total of actual debt and amount of debt that Council has approved through the capital budget process but has not been drawn. This is a functional business unit comprising one or more specialized sections. This is an administrative unit comprising one or more functional business units. This is an estimated year-end balance. CAO CFO COO 1 EA RCMP RMWB SAA CUPE IAFF Abbreviations Chief Administrative Officer Chief Financial Officer Chief Operating Officer Executive Assistant Royal Canadian Mounted Police Regional Municipality of Wood Buffalo Senior Administrative Assistant Canadian Union of Public Employees International Association of Fire Fighters 1 The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

11 FINANCIAL POLICIES 11

12 12 BUDGET AND FINANCIAL POLICIES The Regional Municipality of Wood Buffalo s Budget and Financial Policies are intended to serve as a Councilapproved set of values and expectations for citizens, Council Members, Municipal staff, and other interested parties who may do business with the Municipality. The policies describe expectations for financial planning, budgeting, accounting, reporting and other management practices. They have been prepared to assure prudent financial management and responsible stewardship of the Municipality s financial and physical resources as well as ensure public trust. BASIS OF BUDGETING Basis of budgeting refers to the timing factor concept in recognizing when resources are available to fund services, programs and acquisition of assets. The Regional Municipality of Wood Buffalo utilizes modified accrual basis for its budget process. In this regard, revenues are recognized in the period they are deemed available and measurable to meet or pay for liabilities. BALANCED BUDGET A balanced budget for the Municipality refers to revenues and transfers equal to expenditures exclusive of the amortization expense for each budget year. BUDGET CYCLE The Municipality s budget cycle follows the calendar year, January 1 through December 31. Council approves one year operating and capital budgets. Two years of operating forecast and five years of capital plan are submitted as part of the annual budget package as information. BUDGET AMENDMENTS Operating Budget Operating budget amendments are managed through a variance and projection process at the corporate level. Departments conduct variance analysis at the end of each month and project year end out turn. With the approval of the Fiscal Responsibility Policy by Council on April 26, 2011, the Chief Administrative Officer or designate is authorized to re-allocate operating funds provided that: i. the changes will result in efficient administrative and service delivery process; ii. service levels or standards are not altered or compromised; iii. no new services, programs or projects are undertaken; and iv. Council set total spending limit is not exceeded Capital Budget Amendments to the capital budget are approved by Council. With the approval of the Fiscal Responsibility Policy by Council on April 26, 2011, the Chief Administrative Officer or designate is authorized to re-allocate operating funds provided that: i. the changes will result in efficient administrative and service delivery process; ii. the change will not result in addition or cancellation of a capital project; iii. the underlying scope change does not alter the nature and type of capital project;

13 13 iv. where additional funding is required, funds available from a combination of savings from fully tendered projects, other uncommitted sources such as grants and offsite levies, and cash flow management with other capital projects will be utilized; and v. Council set debt and debt service limits are not exceeded KEY FINANCIAL POLICIES User Fees/Charges for Services The Municipality relies on user fees or charges for services to offset some of the costs related to service delivery. User fees policies recognize and seek to protect vulnerable segments of the population such as youth and seniors and make attempts to balance need for service with ability to pay. Debt Policy The Municipality s debt management policy establishes debt and debt service limit thresholds that satisfy the following objectives: Ensure the maximum debt and debt service limit is lower than the debt and debt service limit established under the Municipal Government Act (MGA) and regulations; Provide flexibility during changing economic conditions; Effectively manage debt with ability to pay; Effectively support initiatives as identified in the Corporate Strategic Plan, Departmental Business Plans, Budgets and Financial plans; and Establish thresholds for acquiring debt versus other funding sources The RMWB Council approved a debt limit of 85% as per the MGA provision. Investment Policy The Municipality s investment policy aims for the following objectives: Safety Safety of principal is the foremost objective of the investment program. The Municipality will ensure that sufficient diversification exists within the investment portfolio; Liquidity The investment portfolio will remain sufficiently liquid (easily converted to cash) to enable the Municipality to meet its operating and capital cash flow requirements, which may be reasonably anticipated in the short and long-term. To the extent possible, the Municipality will attempt to match its investments with anticipated cash flow requirements; Return on Investment The investment portfolio shall be designed with the objective of attaining a market rate of return, taking into consideration the Municipality s investment risk constraints and liquidity requirements Further, the Municipality s investment activities are guided by the MGA. RESERVES As part of a deliberate long-term planning and fiscal sustainability efforts, the Municipality has put in place two major reserves - Emerging Issues and Capital Infrastructure.

14 14 Emerging Issues Reserve (EIR) The Municipality has put in place the EIR to stabilize operating revenues in response to unanticipated loss of revenue as well as provide funding flexibility in responding to emergencies, unplanned events, and significant price changes. The minimum EIR balance is $50 Million while the maximum is set at 15% of prior year s audited net property tax revenue. Council approval is required to utilize funding from the EIR. Capital Infrastructure Reserve (CIR) The Municipality has put in place the CIR to fund unanticipated capital program requirements i.e. construction or acquisition of tangible capital assets. The minimum CIR balance is $50 Million and Council approval is required to utilize funding from the CIR.

15 2015 APPROVED BUDGET 15

16 BUDGET DISCUSSION AND ANALYSIS 16

17 APPROVED OPERATING & CAPITAL BUDGET AND FINANCIAL PLAN OVERVIEW Consolidation and Transformation of the Big Plans

18 APPROVED BUDGET OVERVIEW The 2015 budget of $862,681,465 consisting of $500,406,080 for operating needs and $362,275,385 for capital improvement program has been developed under the theme Consolidation and Transformation of the Big Plans. The 2015 budget development has been guided by principles fiscal health of; sustainability, flexibility and vulnerability: SUSTAINABILITY the degree to which the Regional Municipality can maintain existing programs and meet existing creditor requirements without increasing debt. FLEXIBILITY the degree to which the Regional Municipality can increase its financial resources to respond to rising commitments, by either expanding its revenues or increasing its debt burden. VULNERABILITY the degree to which the Regional Municipality becomes dependent on, and therefore, vulnerable to, sources of funding outside of its control or influence. In the short term, several budget development principles and strategies influenced the 2015 Budget; Develop and recommend a balanced budget supported by current revenues. Align business plans and budget with Municipal Development Plan, Strategic Plan and the City Centre Area Redevelopment Plan. Maintain fiscal stability reserves and debt levels as per applicable policies. Provide funding for new infrastructure, maintenance and asset replacement. Maintain quality of life programs in place and identify increasing service levels based on benchmarks. Maintain competitive compensation and benefits package for municipal employees. A number of strategies have been used to address a number of fiscal opportunities for the municipality within the framework of achieving the fiscal goals in the Fiscal Management Strategy: The Municipality has 1,373 approved personnel positions, increased to 1,562 for 2015 as a result of growth, new services and replacement of contract services with in-house employees. Continue to utilize the provisions of the fiscal responsibility policy to manage capital budget amendments in a timely manner. Expedite efforts to establish appropriate organization structures and service delivery financing models for utilities, recreation, transit and parking. These efforts are aimed at improving service delivery and also expanding financing options that would increase fiscal capacity in the long-term. The 2015 Operating Budget and Plan meet the guidelines in the Fiscal Management Strategy; Low-Risk Revenue Neutral taxation strategy approved by Council through the Fiscal Management Strategy. This strategy limits property tax revenue growth to new development. Debt and debt service limit of 85% of Alberta Regulation 255/2000 as set by Council. Maintains Capital Infrastructure Reserve and Emerging Issues at the $50,000,000 approved minimums. Excess reserves are drawn down in future years to support a predictable taxation strategy.

19 19 The 2015 Operating Budget is balanced at $785,905, Actual Actual Budget Projection ** Budget Financial Plan Financial Plan REVENUE Taxes 494,432, ,300, ,807, ,617, ,039, ,279, ,519,300 Grants in lieu-taxes 1,093, ,925 1,758,406 1,760,900 1,739,200 1,739,200 1,739,200 Sales to other Governments 5,341,330 2,960,403 3,370,300 3,193,913 3,573,100 3,668,100 3,710,300 Sales of goods/services 56,839,141 65,011,597 56,089,986 60,162,791 62,727,100 66,476,550 70,438,385 Other Revenue from own sources 86,382, ,618,919 39,055,406 42,087,065 42,825,200 44,671,770 46,562,257 Unconditional Grants - 1,804, , Conditional Grants 12,957,476 13,134,541 7,234,263 15,581,689 15,134,500 15,212,900 15,216,400 Other Transfers 39,361,542 8,619, ,000 9,431, ,000 43,100 44,300 TOTAL $ 696,408,162 $ 756,362,703 $ 756,002,216 $ 779,310,397 $ 785,905,100 $ 807,090,720 $ 829,230,142 EXPENSES Salaries, Wages & Benefits 163,243, ,487, ,147, ,704, ,983, ,181, ,122,712 Contracted & General Services 125,815, ,111, ,737, ,919, ,310, ,386, ,670,926 Purchases from Other Government 22,922,173 22,877,551 24,735,500 23,238,929 24,867,100 26,030,300 27,317,400 Materials, Good, Supplies & Utilities 26,986,073 28,147,658 30,949,200 29,039,707 32,021,150 32,853,208 33,730,840 Small Equipment & Furnishings 4,720,086 3,823,437 5,067,400 5,389,741 6,004,600 6,110,950 6,263,800 Transfers & Grants 44,702,129 53,626,408 39,363,706 37,845,001 33,204,900 32,882,500 33,770,200 Financial Services Charges 33,461,068 44,169,977 31,428,300 33,044,348 31,200,900 30,507,300 30,153,600 Other Expenses 1,516,992 13,421, ,500 4,089, , , ,200 TOTAL $ 423,367,900 $ 473,665,737 $ 486,288,503 $ 479,271,224 $ 500,406,080 $ 513,777,578 $ 526,867,678 Operating Surplus 273,040, ,696, ,713, ,039, ,499, ,313, ,362,464 Contribution to Capital 239,541, ,601, ,713, ,713, ,499, ,313, ,362,464 Transfer to Reserve Transfer from Reserve Surplus/(Deficit) * $ 33,499,003 $ 62,095,435 $ 0 $ 17,325,460 $ - $ - $ - * Surplus in 2012 and 2013 due to non-cash transactions such as depreciation, gains and losses on disposals and contributed assets ** Projections as of September 30, Balanced Budget Reconciliation Revenue $ Expenses $ Total Revenue 785,905,100 Total Expenses 500,406,080 Transfer from Reserve Transfer to Reserve Subtotal 500,406,080 Contribution to Capital 285,499,020 Balanced Budget 785,905, ,905,100 Please note that all projected amounts in this document are as at September 30, OPERATING REVENUE The approved 2015 operating budget revenue represents a 3% increase over the 2014 approved budget. No significant revenue growth is anticipated between the 2014 projected outturn and the 2015 approved operating revenue. Individual revenue items are projected to record varying growth rates. Property tax revenue is projected to grow by 1.5% over 2014 amended budget. This growth in operating revenue is driven by increases in volume as the region s population grows. Revenue summaries within this document provide trend analysis and discussion of each revenue category.

20 20 OPERATING EXPENSE The Approved 2015 operating expenses total represents a 3% growth over the 2014 approved operating budget and a 4% increase over the 2014 projected year-end. The budget to budget growth is a result of successes in staff recruitment and retention, increase in grants to community groups. The budgetary growth is in line with the assumptions in the Fiscal Management Strategy relative to organization cost growth and inflation. Highlights in the Approved 2015 operating budget include the following; Increase in municipal personnel to match service level needs of citizens and decrease reliance on contractors; Undertake 2015 Census, providing up-to-date statistics on current population; Expand service levels for snow removal that will result in additional coverage of residential and rural areas; Increase grants to local community groups; and General increases in existing contracts for services provided to the municipality. Expenditure summaries within this document provide trend analysis and discussion of each expenditure category. CAPITAL BUDGET The 2015 capital budget is balanced at $362,275,385 representing an 18.9 decrease from 2014 approved capital budget (as at January 17, 2014). This decrease can be attributed a realignment of administrative and Council priorities to ensure resource capacity internal, external and financial is not exceeded. The focus for the 2015 proposed capital budget is to complete projects started in prior years and to limit new projects to core projects that meet Council s priorities within the resource capacity. Capital Budget Funding Sources* Grants 35,600,000 35,000,000 30,000,000 Capital Infrastructure Reserve 250,316, ,009, ,444,600 Debentures 69,109,310 32,307,690 32,078,400 Offsite Levy / Developer Charges 7,250,000 8,000,000 10,000,000 Total $ 362,275,385 $ 421,316,790 $ 223,523,000 Capital Budget Uses of Funds* Public Facilities 194,143, ,262, ,148,000 Recreation & Culture 64,035,310 57,180,790 53,687,000 Transportation 104,097, ,874,000 50,688,000 Total $ 362,275,385 $ 421,316,790 $ 223,523,000 A number of capital projects have been identified to be funded through public private partnerships or alternative capital finance arrangements, most of which are utility-related projects. Additional work will be undertaken to evaluate each possible alternative financing arrangement and the subsequent impact on debt levels. Once finalized, each project will then be brought forward for Council consideration and approval. A policy on alternative capital finance was developed and approved by Council on March 26, The 2015 capital budget comprises 79 projects: 34 new single year projects, 11 new multi-year projects and 34 continuing multi-year projects. The same list is categorized as 50 public facilities projects, 13 recreation and culture projects, and 16 transportation projects.

21 21 For the 2015 capital budget, 69% of total financing will come from reserves, 19% from debt, 10% from grants and 2% from levies/developer charges. The capital budget section in this document provides further details on the 2015 capital budget and capital plan Capital Budget Funding Sources $362,275,385 Debentures 19% Developer Charges 2% Grants 10% Capital Infrastructure Reserve 69%

22 22 OUTLOOK The Regional Municipality of Wood Buffalo continues to depend on the Rural Non-Residential property tax class for the majority of property tax revenue. The pace of capital investments within the oil industry in the region is not at levels that can support demand for Municipal services and infrastructure resulting in significant gaps in funding, especially for infrastructure. Future developments in the oil industry will place incremental pressure for Municipal amenities as both long term and transient population grows. The Municipality remains cognizant of cost and other operating pressures faced by all tax payers in the region. The Municipality has adopted long term financial plan that is updated each year or as necessary so as to provide a stable property taxation strategy. The fiscal management strategy update in 2015 will provide options to close funding gaps facing the Municipality. The world economic growth remains sluggish. As public stimulus spending wanes, consumer and corporate demand has not returned to levels that would spur increased demand for energy products. The consumer and corporate sectors have taken a cautionary posture and are rebuilding balance sheets. Until sustained private demand is experienced, prices for oil are estimated to remain below $100/barrel. Fiscal instability within the European Union continues to add to global uncertainty albeit a number of efforts by responsible institutions and governments to arrest the tide. The turnaround processes are somewhat slow. A number of initiatives are in place that will require investments in public facilities for the 2015 Western Canada Summer Games which will be hosted across the region. This in turn will require expansion of existing facilities, new infrastructure or refurbishment of existing in both rural and urban areas. Construction work continues across the region on various capital projects that will require funding to complete. The Municipality continues to implement an enterprise resource planning (ERP) project. Implementation of this project will transform the way the Municipality does business with progressive returns on efficiencies across the organization in the long run. The Municipality is faced with over a $1.2B funding gap for infrastructure needs over the next five years. Operating cost pressures continue to mount as the population grows and assets aging. Initiatives are in place to respond to these challenges through establishment of dedicated organizations to deliver utilities, recreation, transit and parking. As each initiative is developed, the intent is to expand the Municipality s financing options, improve on services as well as adopt flexible policy positions relative to debt, debt management, user fees as well as exploring alternative financing for some identified capital projects.

23 FINANCIAL SUMMARIES 23

24 24 REGIONAL MUNICIPALITY OF WOOD BUFFALO 2015 Approved Operating Budget, 2016 and 2017 Financial Plan to 2016 Variance 2016 to 2017 Variance Approved Budget Plan Plan Variance % Variance % REVENUE Taxes 659,039, ,279, ,519,300 16,240, ,240,200 2 Grants In Lieu-Taxes 1,739,200 1,739,200 1,739, Sales to Other Governments 3,573,100 3,668,100 3,710,300 95, ,200 1 Sales of Goods & Services 62,727,100 66,476,550 70,438,385 3,749, ,961,835 6 Other Revenue from Own Services 42,825,200 44,671,770 46,562,257 1,846, ,890,487 4 Conditional Grants 15,134,500 15,212,900 15,216,400 78, ,500 0 Other Transfers 867,000 43,100 44,300 (823,900) (95) 1,200 3 Total Revenues 785,905, ,090, ,230,142 21,185, ,139,422 3 EXPENSES Salaries, Wages & Benefits 221,983, ,181, ,122,712 (11,198,000) (5) (4,941,212) (2) Contracted & General Services 150,310, ,386, ,670,926 (1,075,990) (1) (5,284,706) (3) Purchases from Governments 24,867,100 26,030,300 27,317,400 (1,163,200) (5) (1,287,100) (5) Materials, Goods, Supplies & Utilities 32,021,150 32,853,208 33,730,840 (832,058) (3) (877,632) (3) Small Equipment & Furnishings 6,004,600 6,110,950 6,263,800 (106,350) (2) (152,850) (3) Transfers & Grants 33,204,900 32,882,500 33,770, ,400 1 (887,700) (3) Financial Service Charges 31,200,900 30,507,300 30,153, , ,700 1 Other Expenses 813, , ,200 (11,900) (1) (12,600) (2) Total Expenses 500,406, ,777, ,867,678 (13,371,498) (3) (13,090,100) (3) Excess Revenue over Expenditures 285,499, ,313, ,362,464 34,557, ,229,522 0 Transfer for Capital Purposes 285,499, ,313, ,362,464 34,557, ,229,522 0 Net Change - Surplus/(Deficit)

25 Approved Budget - Departmental Financial Summary DEPARTMENTS Revenue % Expenses % Approved Operating Budget Approved FTEs EXECUTIVE OFFICES (Incl. Mayor & Council) $ $ $ Mayor & Council - 1,670,300 (1,670,300) 2.0 Chief Administrative Officer - 1,197,500 (1,197,500) 3.0 Municipal Auditor - 2,181,800 (2,181,800) 8.0 Communications & Stakeholder Relations 305,900 10,097,000 (9,791,100) 39.0 Legal & Legislative Services 26,500 6,890,100 (6,863,600) 21.0 TOTALS 332,400 0% 22,036,700 4% (21,704,300) 73.0 Office Of The Chief Operating Officer Chief Operating Officer* - 609,700 (609,700) 2.0 RCMP Support & Bylaw Services 7,480,200 47,778,200 (40,298,000) Regional Emergency Services 9,963,800 42,854,300 (32,890,500) TOTALS 17,444,000 2% 91,242,200 18% (73,798,200) CORPORATE & COMMUNITY SERVICES Office of the Executive Director - 536,600 (536,600) 2.0 Aboriginal & Rural Relations 85,200 8,502,200 (8,417,000) 39.5 Advisory Services - 11,690,900 (11,690,900) 38.0 Community Services 7,143,000 44,528,900 (37,385,900) 54.0 Human Resources 227,200 18,983,900 (18,756,700) 70.0 Information Services - 24,377,500 (24,377,500) 67.0 Land Administration 621,000 9,375,000 (8,754,000) 15.0 TOTALS 8,076,400 1% 117,995,000 24% (109,918,600) FINANCIAL SERVICES Chief Financial Officer - 543,200 (543,200) 2.0 Assessment & Taxation 534,400 5,255,600 (4,721,200) 28.0 Finance 9,908,900 13,764,200 (3,855,300) 73.5 Supply Chain Management 100,000 6,132,800 (6,032,800) 42.0 TOTALS 10,543,300 1% 25,695,800 5% (15,152,500) PUBLIC INFRASTRUCTURE Office of the Executive Director - 666,900 (666,900) 2.0 Engineering 6,000 13,745,420 (13,739,420) 51.0 Environmental Services 60,202,200 69,443,360 (9,241,160) Planning & Development 9,990,200 13,688,400 (3,698,200) 94.0 Public Operations 2,152, ,183,100 (100,030,300) TOTALS 72,351,200 9% 199,727,180 40% (127,375,980) CORPORATE FINANCE 677,157,800 86% 43,709,200 9% 633,448, Operating Surplus (Deficit) 785,905, % 500,406, % 285,499,020 1,542 Contribution to Capital - 285,499,020 (285,499,020) - SURPLUS / (DEFICIT) 785,905, ,905,100-1, Approved FTE's 1, Increase in FTE's % Increase in FTE's 11% *The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

26 APPROVED OPERATING BUDGET SUMMARY BY DIVISION Regional Municipality of Wood Buffalo CAO & COO* (Executive Offices) Financial Services Corporate & Community Services Public Infrastructure Corporate Finance 2015 Approved Operating Budget $ $ $ $ $ $ REVENUES Taxes , ,662, ,039,000 Grants in Lieu - Taxes ,739,200 1,739,200 Sales to Other Governments 268, ,304,800-3,573,100 Sale of Goods & Services 2,950, , ,800 58,801,800-62,727,100 Other Revenue from Own Services 4,952,500 10,086,000 1,162,500 9,867,800 16,756,400 42,825,200 Conditional Grants 9,605,400-5,529, ,134,500 Other Transfers , ,000 TOTAL REVENUES 17,776,400 10,543,300 8,076,400 72,351, ,157, ,905,100 EXPENSES Salaries, Wages & Benefits 68,366,500 19,560,500 43,517,200 83,670,300 6,869, ,983,500 Contracted & General Services 16,473,500 4,936,900 33,954,800 90,030,330 4,914, ,310,230 Purchases from Governments 24,265,000-2, ,100-24,867,100 Materials, Goods, Supplies & Utiliities 3,644, ,500 5,116,800 22,424, ,400 32,021,150 Small Equipment & Furnishings 503,300 49,000 2,506,900 2,887,400 58,000 6,004,600 Transfers & Grants 25,000 28,800 32,897,300 3,500-32,954,600 Financial Service Charges 1, , ,100 30,836,100 31,200,900 Other Expenses - 398, , ,700 TOTAL EXPENDITURES 113,278,900 25,445, ,995, ,726,880 43,709, ,155,780 Operating Surplus (Deficit) (95,502,500) (14,902,500) (109,918,600) (127,375,680) 633,448, ,749,320 Contribution to Capital ,499, ,499,020 Transfer to Reserve - 250, ,300 Transfer from Reserve SURPLUS/(DEFICIT) (95,502,500) (15,152,500) (109,918,600) (127,375,980) 347,949,580 - *The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

27 Revenues and Expenses Trends Millions Revenues Actual 2012 Actual 2013 Actual 2014 Projection 2015 Approved Budget Revenues 778,752, ,408, ,362, ,310, ,905,100 Millions Expenses Actual 2012 Actual 2013 Actual 2014 Projection 2015 Approved Budget Expenses 491,287, ,866, ,761, ,596, ,406,080 Millions Transfers to Capital Reserves Actual 2012 Actual 2013 Actual 2014 Projection 2015 Approved Budget Tsf Cap Res 287,465, ,541, ,601, ,713, ,499,020

28 REVENUE SUMMARIES

29 29 REVENUE SUMMARIES The Regional Municipality of Wood Buffalo has six major sources of revenue: taxes, sales to other governments, sales of goods & services, other revenue from own services, grants, and other transfers. The 2015 approved operating budget total revenue is $785,905, Approved Budget % Taxes 660,778,200 85% Sales to Other Governments 3,573,100 0% Sales Goods & Services 62,727,100 8% Other Revenue From Own Services 42,825,200 5% Grants 15,134,500 2% Other Transfers 867,000 0% $ 785,905, % 2015 Approved Operating Budget $785,905,100 Where does the money come from? Sales to Other Governments 0% Sales Goods & Services 8% Other Revenue From Own Services 5% Grants 2% Taxes 85% Other Transfers 0%

30 30 TAXES 700,000, ,000, ,000, ,000, ,000, ,000, ,000,000 0 Taxes Taxes Budget 481,302, ,714, ,079, ,566, ,778,200 Actual/Projected 516,053, ,526, ,213, ,378,800 Taxes includes Property Taxes and Grants in-lieu of Taxes 2014 figures are projections as of September 30,2014 Taxes are projected to account for 85% of total revenue in The taxes revenue is $660,778,200. The projected increase in taxes consists of new assessment growth as anticipated in the Fiscal Management Strategy that informed establishment of property tax rates for No property tax increases in 2015 are assumed in this budget. Council sets the effective property tax rates for each budget year prior to the tax due date of June 30 th.

31 31 SALE TO OTHER GOVERNMENTS 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Sales to Other Governments Sales to other governments Budget 3,089,435 4,397,954 4,561,999 3,370,300 3,573,100 Actual/Projected 2,077,293 5,341,330 2,960,403 3,193, figures are projections as of September 30,2014 Sales to Other Governments include revenue arising from transactions between the Municipality and other public entities. While the variances appear significant, the actual budgetary impact is immaterial as most are in form of reimbursements of actual spending. Sales to other governments account for less than 1% of total revenue budget in 2015.

32 32 SALES OF GOODS & SERVICES Sales of Goods & Services ,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, Sales of goods/services Budget 38,384,828 50,437,461 56,766,775 56,089,986 62,727,100 Actual/Projected 53,117,221 56,839,141 65,011,597 60,162,791 Sales of Goods & Services include several items but the major revenue line items are utilities, ambulance fees, community programs and facility fees. The 2015 budget is $62,727,100. The increase is driven by volume changes experienced since 2010 in Environmental Services. Sales of goods & services account for 8% of projected total revenue for the 2015 budget. Between 2011 and 2014, the Municipality has had favourable results comparing budget to actual.

33 33 OTHER REVENUE FROM OWN SERVICES Other Revenue from Own Services ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, Revenue from own services Budget 31,854,388 32,940,558 41,050,626 39,055,406 42,825,200 Actual/Projected 127,942,423 86,382, ,618,919 42,087,065 This category includes all receipts for permits, fines and penalties, franchise fees, and interest from investments. Revenue from this group accounts for 5% of forecasted total revenue in the 2015 budget. Between 2011 and 2014, the Municipality has had favourable results comparing budget to actual. Contributed assets are responsible for the spikes in actuals for 2011 to 2013, and are difficult to predict or estimate.

34 34 GRANTS Grants ,000,000 15,000,000 12,000,000 9,000,000 6,000,000 3,000, Grants Budget 9,797,332 12,777,485 12,826,319 7,234,263 15,134,500 Actual/Projected 11,445,294 12,957,476 14,938,974 16,056, figures are projections as of September 30,2014 Grants are amounts received from other levels of government, federal and provincial, to support operating programs. Budget variances in this category are indicative of grants that the Municipality received over and above projected during the budget process. This is a function of changes in grant programs after the fact (budget approval) and the Municipality s own grant seeking initiatives. Operating grants account for only 2% to Municipality operating revenue.

35 35 OTHER TRANSFERS 350,000, ,000, ,000, ,000, ,000, ,000,000 50,000,000 0 Other Transfers Other Transfers Budget 3,059,840 1,090,716 8,250, , ,000 Actual/Projected 321,975,749 39,361,542 8,619,411 9,431, figures are projections as of September 30,2014 Recorded in this category are internal charge allocations and transfers from reserves. The variances over the years are largely due to transfers from reserves to cover costs of programs. The transfer for 2011 included $100M transfer from operating reserves and a transfer from the Emerging Issues Reserve to the Capital Infrastructure Reserve to fund capital projects. The budgeted transfer from reserves in 2015 is $867,000.

36 EXPENSES SUMMARIES

37 37 EXPENSES SUMMARIES The Regional Municipality of Wood Buffalo has eight expense categories: salaries, wages and benefits, contracted and general services, purchases from other governments, materials, goods, supplies and utilities, small equipment and furnishings, transfers and grants, financial service charges and other expenses. The 2015 operating budget expenses total is $785,905,100, including transfers to the Capital Infrastructure Reserve Approved Budget % Salaries, Wages and Benefits 221,983,500 44% Contracted and General Services 150,310,230 30% Purchases from other Governments 24,867,100 5% Materials, Goods, Supplies & Utilities 32,021,150 7% Small Equipment & Furnishings 6,004,600 1% Transfers and Grants 33,204,900 7% Financial Service Charges 31,200,900 6% Other Expenses 813,700 0% Subtotal $500,406, % Contribution to Capital 285,499,020 $785,905, Approved Operating Budget $ 500,406,080 Where does the money go? Salaries, Wages and Benefits 44% Other Expenses 0% Financial Service Charges 6% Transfers and Grants 7% Small Equipment & Furnishings 1% Materials, Goods, Supplies & Utilities 7% Purchases from other Governments 5% Contracted and General Services 30%

38 38 SALARIES, WAGES AND BENEFITS The 2015 Salaries, Wages and Benefits accounts for 44% of the total operating expense budget and represents a 10% increase from the 2014 budget. In the last four years, the Municipality has maintained its staffing levels despite growth and increased enhanced service and infrastructure demand. Opportunities to further decrease reliance on contracted services and achieve cost savings have also been identified. To balance increased needs with position control, 159 new positions were approved in the 2015 budget. A detailed discussion is provided in the personnel summaries section of this budget overview.

39 39 CONTRACTED AND GENERAL SERVICES 200,000, ,000, ,000,000 80,000,000 40,000,000 0 Contracted and General Services Budget 105,962, ,783, ,948, ,737, ,310,230 Actual/Projected 99,178, ,824, ,111, ,919, figures are projections as of September 30,2014 The 2015 Contracted and General Services is $150,310,230. This accounts for 30% of the total operating budget and represents a 2% decrease from the 2014 budget. The decrease is mainly driven by decreases on professional services of approximately 47% Contracted and General Services is comprised of expenses such as recruitment, training, travel, telephones and internet, professional services, contracts, legal fees, insurance and other expenses.

40 Training Costs Telephone Advertising/Promotion Legal Fees Eng. Consulting Fees Consultant Fees App. Software Support Professional Services Gen. Serv.-Contracted Winter Roads Vehicle Maintenance R&M Transit Contract Services Building Rental & Lease Insurance Premiums Other Expenses Amended to 2015 Approved Budget Analysis for Contracted and General Services Contracted & General Services 2014 Amended Budget 2014 September Projection 2015 Approved Budget % Training Costs 6,610,213 4,436,517 6,387,330 4% Telephone 2,121,250 2,125,788 1,463,340 1% Advertising/Promotion 2,470,800 1,699,088 2,406,750 2% Legal Fees 3,520,000 3,160,000 3,200,000 2% Eng. Consulting Fees 7,350,000 7,600,464 6,003,000 4% Consultant Fees 8,890,900 6,726,813 7,921,750 5% App. Software Support 2,168,200 3,217,400 2,435,700 2% Professional Services 14,441,500 12,759,809 7,721,500 5% Gen. Serv.-Contracted 42,009,959 48,859,349 45,689,050 30% Winter Roads 2,376,000 2,376,000 2,831,300 2% Vehicle Maintenance R&M 5,088,600 4,868,550 3,738,300 3% Transit Contract Services 24,703,200 24,872,300 27,391,300 18% Building Rental & Lease 5,279,000 5,432,000 5,606,700 4% Insurance Premiums 3,709,300 4,341,446 4,701,430 3% Other Expenses 21,999,075 23,444,385 22,812,780 15% Total 152,737, ,919, ,310, % 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, Amended Budget 2014 September Projection 2015 Approved Budget

41 41 PURCHASES FROM GOVERNMENTS 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Purchases from Governments Budget 21,937,136 19,778,452 24,236,800 24,735,350 24,867,100 Actual/Projected 20,177,725 22,922,173 22,877,551 23,238, figures are projections as of September 30,2014 Purchases from Other Governments are comprised of transactions between the Municipality and other public agencies. A significant portion of these costs, 98%, relate to the RCMP contract.

42 42 MATERIALS, GOODS, SUPPLIES AND UTILITIES Materials, Goods, Supplies and Utilities ,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Budget 25,365,007 24,150,981 29,324,003 30,949,200 32,021,150 Actual/Projected 25,549,382 26,986,073 28,147,658 29,039, figures are projections as of September 30,2014 The 2015 Materials, Goods, Supplies and Utilities budget is $32,021,150. This is an increase of 6% from the 2014 approved budget. The Materials, Goods, Supplies and Utilities category consists of items required to operate and maintain the Municipality on a daily basis. The major items include fuels & lubes, chemicals & salts, natural gas and electricity.

43 43 SMALL EQUIPMENT & FURNISHINGS 8,000,000 6,000,000 4,000,000 2,000,000 Small Equipment & Furnishings Budget 6,629,200 5,827,297 3,843,638 5,067,400 6,004,600 Actual/Projected 5,760,387 4,720,086 3,823,437 5,389, figures are projections as of September 30,2014 Acquisition of office furniture and small equipment is included in this expenses category. It accounts for 1% of the total operating budget and represents an 18% increase from the 2014 budget.

44 44 TRANSFERS AND GRANTS 700,000, ,000, ,000, ,000, ,000, ,000, ,000,000 0 Transfers and Grants Budget 209,556, ,038, ,913, ,077, ,703,920 Actual/Projected 586,621, ,243, ,227, ,558, figures are projections as of September 30,2014 The 2015 Transfer and Grants budget is $318,703,920. Included is a transfer of $285,499,020 to the capital program. Transfers to capital program, reserves, and internal charges are recorded in this expense category.

45 45 FINANCIAL SERVICE CHARGES 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Financial Service Charges Budget 35,183,143 32,333,407 31,759,077 31,428,300 31,200,900 Actual/Projected 76,918,411 33,461,068 44,169,977 33,044,348 Bank charges and debenture payments (interest and principal) are recorded in this category. Debt service budget provisions are based on actual drawn debt. Each debenture would have an associated payment schedule that indicates annual payments. The 2015 Budget amount does not include any finance charges that may become due in 2015, if additional debt is drawn in As part of efficient debt management, debt drawings are based on need. Debt drawing in 2015 will be reviewed and any financial impact will be incorporated in the 2015 Fiscal Management Strategy (FMS). The variance in 2011 includes the depreciation expense which is non-cash item that the Municipality does not fund and was therefore not included in the approved budget.

46 46 OTHER EXPENSES 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Other Expenses Budget 2,135, ,235 1,025, , ,700 Actual/Projected 5,039,596 1,516,992 13,421,895 4,089, figures are projections as of September 30,2014 Allowance for bad debts, inventory shrinkage, and internal charges are recorded in this category. Tax Adjustment Appeal expenses are responsible for the spike in actual for 2013.

47 PERSONNEL SUMMARIES

48 48 PERSONNEL SUMMARIES The Regional Municipality of Wood Buffalo is committed to be an employer of choice that develops a self-motivated and empowered workforce to achieve its strategic goals and provide efficient and effective service to its citizens. The organization values training and development of its employees, with an emphasis on safety, wellness, and performance excellence in the workplace. OVERVIEW The Regional Municipality of Wood Buffalo has 1,383 authorized Full Time Employee (FTE) positions. 1 As of the end of the third quarter of 2014, the Municipality had an occupancy rate of 90 percent. 2 The Municipality recognizes the benefits of a systematic allocation and control of human resources. Over the last four years, new requirements for FTEs have been accommodated within existing approved positions. The number of approved FTEs has remained at 1,373, seeing only a slight increase to 1,383 FTEs in the fourth quarter of Still, the Municipality continues to experience growth, and increased demand for services and infrastructure. Further, it has identified opportunities to decrease reliance on contracted services and achieve cost savings. To balance increased needs with position control, a review of staffing requirements was completed during the 2015 budget preparation process. This involved a business case rationalization for new position requests as well as an assessment of business need for long term vacancies. Consultation with the Audit and Budget Committee also occurred. As a result, 159 new FTE positions are approved, bringing the Municipality s total approved FTE positions to 1,542. Increasing the number of FTE positions will provide the Municipality with flexibility to grow its workforce and meet the increasing service needs of its citizens. Hiring of the new positions will be phased in throughout As such, 2015 funding levels have been reviewed against 2014 trends and have been budgeted based on realistic hiring and occupancy plans. Of the approved 1,542 FTEs, 1,436 FTEs are funded in This includes full funding for filled positions, and partial funding for vacancies and new positions in accordance with the 2015 Budget Preparation Guidelines (See Appendix B). It also includes a calculated FTE funding equivalent for temporary and student positions. 1 Authorized FTEs are those positions authorized by Council. The 2014 Approved Budget included 1,373 approved FTEs. On October 14, 2014, Council authorized 10 additional FTEs for the Safety Codes Inspection branch, increasing the 2014 authorized FTE positions to 1, The above occupancy figures do not include temporary and student positions utilized to meet seasonal operations or temporary work/projects.

49 Full Time Equivalents 49 The following graph shows the position control and funding trend from 2011 to 2015: POSITION CONTROL AND FUNDING, ,550 1,500 1,450 1,400 1,350 1,300 1,250 1, Approved Positions 1,373 1,373 1,373 1,383 1,542 Funded Positions 1,236 1,249 1,344 1,356 1,436 Funding Percentage 90% 91% 98% 98% 93% The approved 1,542 FTE positions are distributed among the operating and support areas as follows: APPROVED PERSONNEL POSITIONS - FULL TIME EQUIVALENT TOTAL: 1,542 5% Executive Offices 75 Public Infrastructure & Planning % 12% 14% RCMP & Bylaw Services % 18% Regional Emergency Services 214 Financial Services Corporate & Community Services Note: The increase of 159 (11.5%) FTEs over the prior year is due to administrative initiatives to reduce contracted services as well as enhanced service level changes.

50 Population Number of Positions 50 POPULATION AND EMPLOYEES Total employee count has grown in tandem with population growth. This is expected as service and infrastructure demand has also increased. POPULATON AND POSITIONS, ,000 1, ,000 1,400 1,300 50,000 1,200 1, Population 115, , , , ,412 Funded Positions 1,236 1,249 1,344 1,356 1,436 1,000 Population data provided by RMWB Planning & Development - Population Projection Report; utilized for budget development purposes only population is a projection and includes shadow population. EMPLOYEE PER CAPITA A benchmark measure that is used to evaluate relative workload per employee is the ratio of employee count to total population. In 2011, the Municipality had a ratio of 1:84 or 1 funded employee for every 84 citizens. 3 In recent years, the Municipality s ratio has improved and in 2014 was 1:99, with a projected ratio of 1:99 in Hence, increasing the number of funded FTEs in 2015 will enable the Municipality to maintain its employee per capita ratio in accordance to population growth. 3 For the years 2012 to 2015, the Municipality s funded FTE figures have been used to calculate the position per capita ratio. This figure is more indicative of actual occupancy.

51 Ratio of Position to Population 51 EMPLOYEE PER CAPITA, Employee per Capita This ratio can also be used to evaluate the size of total employees in an organization relative to other organizations. The chart below is a comparison of the employee to population ratios for 2012 in selected municipalities.

52 52 Comparatively, in 2012, the Regional Municipality of Wood Buffalo had a ratio of funded FTE positions to population of 1:95. This was within trend in relation to selected municipalities; however, this measure is critical and yet contextual. The comparison is based on 2012 official population and employee counts published by Alberta Municipal Affairs. For the Regional Municipality of Wood Buffalo, the official population number is significantly lower in comparison to Municipal population records; therefore, Municipal population data has been used instead. While this comparison is a useful tool, it does need to be adjusted for differences in the service delivery models and sophistication of Enterprise Resource Planning technology. The measure must be adjusted for relative labour market structure and competition. A given ratio is a function of levels of automation as well as use of external resources such as contractors. Fluctuations between years may be a function of labour market and talent mobility or lack of as well as reorganization and realignment within an organization PERSONNEL BUDGET The approved 2015 personnel budget is $221,983,500. This represents 44% of the Municipality s 2015 operating expense budget, as well as a 10% increase over the approved 2014 budget. The increase is attributed to: 159 new FTEs approved for 2015 along with 10 additional FTEs approved by Council in the fourth quarter of 2014 for the Safety Codes Inspection branch; totaling 169 additional FTE s in 2015, which were not budgeted in Funding for the new positions has been included based on planned occupancy and in accordance with the 2015 Budget Development Principles wage and premium increases. Provisions for wage and premium increases for CUPE and IAFF staff are in accordance with each collective agreement. Exempt staff salary increases are based on performance, as per the exempt compensation plan and have been budgeted under a contingency. The 2015 personnel budget also includes funding for 30 temporary positions and 135 students to address short term work or projects and seasonal operations.

53 53 The following graph indicates personnel budget performance from 2011 to SALARIES, WAGES & BENEFITS, ,000,000 20% 200,000, ,000,000 7% 5% 10% 100,000,000 1% 0% 50,000,000-4% Budget 160,719, ,229, ,200, ,228, ,983,500 Actual 159,675, ,243, ,487, ,704,359 Surplus/(Deficit) 1% -4% 7% 5% -10% 2014 Actuals are projections as of September 30, The Municipality has experienced challenges regarding its personnel budget to manage perennial vacancies and the resultant surpluses. Contributing factors include: Former Budgeting Model: Up until 2009, most departments provided full year budget allocations for vacant previously approved and new positions. Some departments prorated newly approved positions based on hiring schedules. A consistent approach that aligns budget provisions to hiring delays is now in place. Union Agreements: Union contract provisions have directed preference to internal candidates. This has resulted in a structural vacancy rate as 45% of placements have been internal. While recruiting from within has many advantages, it needs to be balanced. Placement of internal candidates, or at least consideration, takes considerable time. If an internal candidate is successful, their placement creates a vacancy. The new agreements with unions have relaxed some of the preference for internal candidates so as to limit internal mobility without jeopardizing opportunity for employees. 4 The above 2015 figures are higher than those forecasted in the Fiscal Management Strategy. The difference is due to the 2015 Budget inclusion of Environmental Services Department employees. The Municipal Corporate Utility (MCU) has yet to be formed; therefore, revenue and expenses related to the department are included in the 2015 Budget.

54 54 Labour Market Challenges: The Municipality operates in a limited and competitive labour market. The regional labour market remains at full employment and there are limited local labour resources. This has caused a need to depend on labour markets external to the region and to develop strategies to increase recruitment and retention success, while also containing cost. The Municipality is working to address these challenges BUDGET DEVELOPMENT PRINCIPLES Steps have been taken to address contributing factors to positive variances in the past two budgets. The Municipality has made progress over the past two years and a number of considerations have been incorporated in developing the 2015 personnel budget: Improved Position Control: During 2014, the Municipality s Workforce Management Position Control Procedure was reviewed and updated. The procedure provides a means of effective control over the total number of FTEs and their distribution within the Municipality. It also provides guidelines and a structured process on the establishment of new positions. During the 2015 budgeting process, long term vacancies and their business need were also reviewed. Consistent Budgeting Model: A consistent approach that aligns budget provisions to hiring delays is now in place. Vacancies and new positions have been critically reviewed and partially funded based on estimated 2015 hiring dates, 2014 occupancy trends, and in accordance with the 2015 Budget Preparation Guidelines (See Appendix B). Successful Ratification of IAFF and CUPE Collective Agreements: During 2014, the Municipality successfully negotiated collective agreements for its two unions. The Municipality has established good working relationships with both of its unions. Provisions for wage increases and premiums are incorporated into the 2015 personnel budget as well as the 2016 and 2017 forecasts. Enhancements to Enterprise Resource Planning Technology: During 2014, the Municipality successfully implemented enhancements to its Human Capital Management (HCM) and Financial Accounting and Controlling (FI/CO) modules within its SAP system. Improved reporting is now available for labour analysis and budgeting.

55 PERSONNEL BUDGET PRESSURES As an employer, the Municipality does experience certain upward budgetary pressures related to personnel benefits. The major ones are: pension contributions, health, dental, and cost of living adjustments. Health and Dental Contributions: After solicitation of health and dental carriers, the Municipality has engaged a new provider in recent years. This change has resulted in significant savings for both the Municipality and employees in financial and process terms. Cost of Living Adjustments: CUPE and IAFF collective agreements expired at the end of Negotiations occurred in 2014 and were successful with both agreements being ratified in The agreements include new wage and premium increase provisions that have been incorporated into the 2015 personnel budget as well as 2016 and 2017 forecasts. PERSONNEL CHANGES IN 2015 Despite organization rationalization since 2011, as well as strategies put in place to address a structural vacancy rate, the Municipality continues to experience growth, and increased demand for services and infrastructure. As well, it has identified opportunities to further decrease reliance on contracted services and achieve cost savings. To balance increased needs with position control, a review of staffing requirements was completed. The review resulted in 159 new FTE positions being approved, bringing the Municipality s total approved FTE positions to 1,542. Of these positions, a total of 1,436 FTEs are funded in 2015.

56 DEBT AND DEBT MANAGEMENT SUMMARIES

57 57 DEBT AND DEBT MANAGEMENT SUMMARIES INDEBTEDNESS Authority to incur debt for municipalities in Alberta is granted through Alberta Regulation (AR) 255/2000 and the Alberta Municipal Government Act (MGA) and in special cases, variation can be granted through a Ministerial Order. Sections 251 through 274 of the MGA provide guidance regarding indebtedness for operating and capital purposes. These sections provide instructions related to process and levels of indebtedness. The general debt limits for municipalities in Alberta allow for debt of 1.5 x revenue and 0.25 x revenue for debt service. Regional Municipality of Wood Buffalo s debt limit is set at 2 x revenue and debt service limit is set at 0.35 x revenue through AR 255/2000. Three other Alberta Municipalities: Calgary, Edmonton and Medicine Hat have similar limitations. AR 255/2000 is due for review on December 31, The regulation may be re-passed in its present or amended form based on deemed necessity and relevance. Council in turn, through policy, has set its debt limits at 85% of AR 255/2000 in November The Regional Municipality of Wood Buffalo s debt policy is rooted in best practices that include the following deliberate choices: Promotes attainment of financial planning and management objectives; Takes a comprehensive approach to affordability; Reflects the community s attitudes and Council philosophy towards indebtedness; Sets limits but preserves flexibility; and Requires periodic review of indebtedness guidelines. The Regional Municipality of Wood Buffalo uses debt to finance its capital budget through the capital budget process. Use of debt in this regard is based on the principle of inter-generation equity, which states that each generation that benefits from an asset must pay or be financially responsible for an equitable share based on benefits derived or received. This approach is also known as pay-as-youuse. The Municipality employs a best practice debt mix strategy that utilizes reserve or cash financing for assets with shorter useful lives and long-term debt for assets with longer useful lives. This approach is in keeping with the inter-generational equity principle. Long term debt falls under two categories: general obligation debt and revenue or secured debt. General obligation debt also falls into two categories: limited general tax debt and unlimited general tax debt. Unlimited general tax debt is secured by a pledge of a Municipality s full faith and credit and unlimited taxing power. In this instance, the Municipality promises to use its power to levy property tax to pay the debt. Since property tax revenue is from all property owners in a community, such type of financing is appropriate for projects benefiting the community as a whole. A variation of this type of debt is where statutory limitations are placed such as limiting the debt and debt service to set

58 58 percentages of property values or of total revenue or some other variation thereof. Such is the case for Alberta municipalities where levels of indebtedness are specified through the MGA or a Ministerial Order. On the other hand revenue or secured debt is secured by resources generated from fees and charges paid by users of the financed facilities or from dedicated revenue streams. The Regional Municipality of Wood Buffalo utilizes general obligation debt limited by statutory provisions of the Alberta Municipal Government Act as amended through a ministerial order or by an act of the provincial legislature. Further, the Regional Municipality of Wood Buffalo s debt policy directs that Alberta Capital Finance Authority (ACFA) is the municipalities lender of choice. ACFA was established in 1956 to provide inexpensive capital finance to local authorities in Alberta. ACFA pools capital finance requirements from various local authorities and by virtue of size of the pool, the authority is able to secure lower interest rates which would otherwise not be available to a single jurisdiction acting independent or alone in the capital markets. This is critical to understand as borrowing through ACFA determines subsequent debt management options available. Since ACFA borrows in the open market as a cohort of various organizations, refinancing or prepayment of such debt would incur penalties. DEBT OVERVIEW In discussing levels of debt and debt service for the Regional Municipality of Wood Buffalo, an understanding of two terms is imperative: actual debt and committed debt. Actual debt refers to amounts that the Municipality has borrowed and is now paying debt service for. These are amounts that would have been drawn for completed capital projects commissioned and in use. On the other hand, committed debt is a total of actual debt and amount of debt that Council has approved through the capital budget process but has not been drawn. The following chart and graph depict the year-end actual and projected debt levels for the Regional Municipality of Wood Buffalo: Actual Actual Committed Committed Debt % Debt % ,295, % 714,567, % ,350, % 731,686, % ,247, % 973,140, % ,005, % 1,069,130, % * ,240, % 1,122,475, % * ,538, % 1,140,080, % * ,423, % 1,156,044, % *All 2014 actuals are as at December 31, 2014 unless otherwise stated, other years are projections.

59 59 The difference between actual debt and committed debt is a function of project delivery and scheduling. Actual debt will increase as capital projects are undertaken or completed. Note: The data above assumes no actual debt drawn for This position will be re-evaluated during 2015 and incorporate any financial impact in the 2015 Fiscal Management Strategy (FMS). Continuous review of legal and policy compliance from 2009 to date indicates responsible and conservative use of debt. The Municipality s debt levels are within legal and policy limits. Another limitation is placed on debt service, level of principal and interest payments as a percentage of revenue. The Municipality s debt service level is under both legal and policy limits.

60 60 In both limits, debt amount and debt service, the Regional Municipality of Wood Buffalo has committed to levels significantly lower than legal limits. The debt the Municipality has incurred has all been invested in tangible capital assets. Over time, once the infrastructure gap is significantly reduced, less debt financing will be required. More resources at that point will be required for asset maintenance DEBT & DEBT SERVICE CHANGES The 2015 debt funding requirements are determined after the projects have been prioritized by the Audit and Budget Committee. Associated debenture bylaws will be brought forward for Council s consideration. DEBT BURDEN Debt financing requires recurring payments of principal and interest over the term. Debt service funding is levied through property taxes on an annual basis. Two measures are used to gauge the financial weight on residents as well as on available resources: debt per resident and debt service as a percentage of total expenses.

61 61 *Debt per resident for year 2015, 2016 and 2017 is based on projections. Debt per resident is a ratio of debt to total population onwards debt per resident is shown as decreasing which is a function of population growth and debt repayment. Comparatively in 2012, the graph below compares a select group of Cities and Municipalities debt per capita. The most current published data on Alberta Municipal Affairs website is as at *Debt per resident for selected Alberta cities, received from Municipality s Planning and Development department. Debt service payments as a percentage of total expenditure indicates how much of available resources are directed towards debt service payments. Best practice is to limit debt service payments to 25% of total expenses.

62 62 * Debt per resident for year 2015, 2016 and 2017 is based on projections. Actual debt burden has averaged 6% of total expenses between 2011 and 2014 and is projected to continue at 6%.

63 2014 ACTUAL/COMMITTED DEBT OVERVIEW 63

64 64

65 DIVISIONAL OVERVIEWS 65

66 66 OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER AND OFFICE OF THE CHIEF OPERATING OFFICER DIVISIONS DIVISIONAL MANDATE The Executive Offices includes Mayor and Council as well as the Office of the Chief Administrative Officer (CAO). The CAO operates on a broad strategic level planning the way ahead to fulfill the vision of the Council and to ensure that the current and future needs of the community residents are met. The Chief Operating Officer (COO) 1 reports to the CAO and oversees the operation functions of the Municipality. The COO 1 is supported by the following three (3) Executive Directors: Elsie Hutton Chief Financial Officer/Financial Services Vacant Corporate and Community Services Kevin Scoble - Infrastructure and Planning (Interim) The COO 1 provides leadership and support of the Executive Leadership Team. Executive Directors are accountable to the COO 1 to ensure the delivery of departmental business plans and budgets, as approved by Council. 1 The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

67 67 MESSAGE FROM THE CHIEF ADMINISTRATIVE OFFICER I d like to begin by commending the outstanding efforts of our financial services team on receiving the Distinguished Budget Presentation Award for the 2014 Budget. Presented on Aug. 21 by the Government Finance Officers Association of the United States and Canada, this is the fourth year in a row that our Municipality has won the award. We are very proud! This past year our Municipality has been immersed in a period of transition. Since the late 1990s we have been focused on keeping up with the intensive pace of growth in our region and have struggled to integrate more modern and up-to-date structures and governance protocols. We ve outgrown our existing processes. Going forward we re focused on meeting the ever-growing needs of our region in a far more transparent and effective manner. The 2015 Budget is expected to serve as a catalyst of many smarter, inclusive and efficient ways and means of providing services to our residents, industry and businesses. As has been demonstrated with the implementation of the Audit and Budget Committee, we are committed to conducting the region s business in public. We are putting all our cards on the table for every citizen to see, and I urge each and every one of you to do your part in demonstrating that we have nothing to hide. Understanding and support of municipal priorities is crucial in getting things done in an effective and transparent way, and we are committed to improving the way we work together and how we involve the public. The 2015 Budget will act as a road map to help us integrate the necessary changes, which will lead to stronger processes, and updated policies and procedures. Our commitment is to move forward in a culture defined by integrity, accountability and transparency, and to create a new culture of transparency between Council, Administration and residents of Wood Buffalo. Without a doubt there will be challenges as there often is when introducing a new way of doing business. However, together, we can and will make the change happen. Marcel Ulliac Chief Administrative Officer

68 68 DIVISIONAL PROFILE The Chief Administrative Officer (CAO) provides leadership in the development, implementation, and administration of all policies and programs established and approved by Council. The CAO provides guidance and advice to Council regarding legislation and municipal operations, and provides background information in order for Council to make informed decisions. The Municipal Auditor and the newly formed departments, Communications and Stakeholder Relations along with Legal and Legislative Services, report directly to the CAO. The Office of the Chief Operating Officer (COO) 1 is responsible for overseeing the operational functions of the Municipality. The COO 1 provides leadership and support to the Executive Leadership Team of the Regional Municipality of Wood Buffalo. Executive Directors are accountable to the COO 1 to ensure the delivery of departmental business plans and budgets, as approved by Council. The COO 1 is responsible for all operational functions of the Municipality except those under the direct report of the CAO and is supported by the three Executive Directors: Elsie Hutton Chief Financial Officer/Financial Services Vacant Corporate and Community Services Kevin Scoble - Infrastructure and Planning (Interim) In addition to the above, the COO 1 is directly responsible for the following Municipal Departments: RCMP Support/Bylaw Services Regional Emergency Services 1 The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

69 MAJOR INITIATIVES Chief Administrative Officer Implement recommendations from the Accountability, Integrity and Transparency audit; Rebuild municipality s leadership team; Work to reestablish public trust, confidence and respect of the organization; Create a Rapid Response Team to respond to important, pervasive challenges that are experienced by the rapidly growing region; Create and explore economic development opportunities for the region; and Land planning and release. Municipal Auditor The Municipal Auditor contributes to all Strategic Initiatives. Compliance and Control supports the reporting of reliable data and the Enterprise Risk Management function supports the Corporate Governance of the Regional Municipality of Wood Buffalo. Communications & Stakeholder Relations Implement a new full service website with integrated social media Content curation for the McMurray Experience Implement a corporate-wide media training program for a variety of levels throughout the organization Continue with an independent Regional Crime Study (year 3) Curate video content for our social channels, with a focus on Wood Buffalo at Work Year-long 20th Anniversary Celebration of the RMWB Amalgamation Support for these Municipality initiated multi-stakeholder projects: o Community Well-Being Survey o Three Things for Wood Buffalo o The Best of Wood Buffalo Initiate multi-stakeholder projects and work with groups such as: o Social Prosperity Wood Buffalo o Fuse Social o United Way o Food Bank o Personal Support Network o Community Futures o Some Other Solutions o Arts Council o Rotary Club

70 70 o Multicultural Association o Mayor s Advisory Council on Youth o Oil Sands Community Alliance o Oil sands development companies YMM A Relocation Guide to Fort McMurray/Wood Buffalo Digital Welcome Experience at the airport Implement Community Engagement Policy Manage the Municipality s involvement in provincial regulatory processes for natural resource development projects. Legislative Services Enhance and Improve Corporate Responsibilities and Governance o Enhance citizen participation in Council meetings through electronic meeting management system and the use of broadcasting and multi-media; o Enhance support to Council and Council Committees. Improve Compliance with the Freedom of Information and Protection of Privacy (FOIP) Act Legal Services o Create and promote FOIP Administrative Procedure. Implement a new information management software and protocol; Work with RCMP and Provincial Court to streamline and rationalize the system of dealing with bylaw offences; Complete re-drafts or revisions of several major bylaws, e.g. the Land Use Bylaw, Vehicle for Hire Bylaw, Procedure Bylaw and Roads and Transportation Bylaw. Chief Operating Officer 1 Build complete Communities by sponsoring various organizations; Enhance and Improve Corporate Responsibilities and Governance by facilitating Strategic Planning with Executive Directors, Managers and Supervisors. 1 The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

71 71 RCMP/Bylaw Support Services Focusing on Policing Priorities consisting of: Traffic Safety, Drug and Alcohol Enforcement, Crime Reduction and Community Safety. Focusing on commercial vehicle compliance, animal control, environmental services and street maintenance for the Municipality. Enhancement of training for staff focusing on excellence in customer service. Regional Emergency Services Deployment model change to enhance public and firefighter safety; Staffing and technical enhancement to 911 Dispatch; Capital upgrades to facilities and apparatus; Support in house paramedic program.

72 72 FINANCIAL SUMMARY DIVISIONAL OPERATING BUDGET SUMMARY Office of the CAO and Office of the COO Change Change 2014 Operating 2014 Amended Operating Budget 2014 Operating Projection* 2015 Approved Operating Budget 2014 Amended Budget vs 2015 Approved Budget Projection vs 2015 Approved Operating Budget (a) (b) (c) (a) to (c) (b) to (c) $ $ $ $ % $ % REVENUES Sales To Other Governments 157, , , , , Sales Of Goods & Services 2,538,100 3,687,592 2,950, , (737,392) (20) Other Revenue from Own Services 5,128,300 5,755,350 4,952,500 (175,800) (3) (802,850) (14) Grants 8,588,100 9,630,050 9,605,400 1,017, (24,650) (0) Other Transfers TOTAL REVENUES 16,412,400 19,259,992 17,776,400 1,364,000 8 (1,483,592) (8) EXPENSES Salaries, Wages & Benefits 58,868,965 58,459,470 68,366,500 9,497, ,907, Contracted & General Services 19,222,410 16,925,365 16,473,500 (2,748,910) (14) (451,865) (3) Purchases from Governments 23,989,800 22,675,000 24,265, , ,590,000 7 Materials, Goods, Supplies & Utilities 3,601,700 3,451,431 3,644,400 42, ,969 6 Small Equipment & Furnishings 641, , ,300 (138,100) (22) 131, Transfers & Grants 20, ,500 25,000 5, (124,500) (83) Financial Service Charges 1,500 1,900 1,200 (300) (20) (700) (37) Other Expenses 439, ,700 - (439,400) (100) (587,700) (100) TOTAL EXPENSES 106,785, ,622, ,278,900 6,493, ,656, Operating Surplus (Deficit) (90,372,775) (83,362,621) (95,502,500) 5,129, ,139, Contribution to Capital Transfer to Reserve 8, (8,000) (100) - - Transfer from Reserve - 740, (740,805) (100) SURPLUS/(DEFICIT) (90,380,775) (82,621,817) (95,502,500) 5,121, ,880, *as at September 30, 2014 *2014 Operating Projection includes a Carry Forward of $740,805 in the expenses which is offset by an increase in the revenues by the same amount. Office of the CAO and Office of the COO Revenues Expenses 2015 Approved Operating Budget $ $ $ 2015 Approved FTE DEPARTMENTS Mayor and Council - 1,670,300 (1,670,300) 2 Chief Administrative Officer - 1,197,500 (1,197,500) 3 Municipal Auditor - 2,181,800 (2,181,800) 8 Communications and Stakeholder Relations 305,900 10,097,000 (9,791,100) 39 Legal and Legislative Services 26,500 6,890,100 (6,863,600) 21 Chief Operating Officer - 609,700 (609,700) 2 Government Relations RCMP Support/Bylaw Services 7,480,200 47,778,200 (40,298,000) 178 Regional Emergency Services 9,963,800 42,854,300 (32,890,500) 214 TOTALS 17,776, ,278,900 (95,502,500) 467

73 73 PERSONNEL SUMMARY FULL TIME EQUIVALENTS (FTE) SUMMARY Office of the CAO and Office of the a b c b-c d e b+e COO FTE 1 FTE 2 * FTE* Vacancies* FTE New FTE FTE Mayor and Council Chief Administrative Officer Municipal Auditor Communications and Stakeholder Relations Legal and Legislative Services Chief Operating Officer Government Relations RCMP Support/Bylaw Services Regional Emergency Services Total *as at September 30, Approved 2014 Authorized 2014 Filled 2014 Projected 2015 Approved 2015 Approved 1) Approved FTE is a term used to describe the number of permanent positions that have been authorized by Council, as published in the 2014 Approved Budget and Financial Plan. It does not include temporary and student positions. 2) Differences between 2014 Approved FTEs and 2014 Authorized FTEs are due to reallocations among branches and/or departments. No increase to the overall approved FTEs occurred at the Municipality in

74 74 CAPITAL BUDGET SUMMARIES 2014 & Prior Actual 2015 Approved Budget Cost* CarryFwd Budget Plan Major Category $ $ $ $ $ Public Facilities 43,669,687 27,544,090 16,125,597 41,190, ,900,000 Recreation & Culture 68,201,638 14,028,084 54,173,554 3,709,000 55,219,000 Transportation 4,400,000 3,578, ,896 3,300,000 2,600,000 Total 116,271,325 45,150,279 71,121,047 48,199, ,719,000 *cost to date as at September 2014

75 & PRIOR CAPITAL BUDGET Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Public Facilities Anzac Fire Hall - Design 560, , ,000 Public Facilities Anzac Fire Hall - Pre-Design 150,000 98,850 51,150 Public Facilities Bylaw Area Expansion 1,425,533 1,409,769 15,764 Public Facilities Dangerous Goods Unit 500, ,443 47,557 Public Facilities Fire Hall #6 - Pre Design & Design 1,120, , ,000 Public Facilities Flood Mitigation - Predesign/Design 800,000 33, ,720 Public Facilities Flood Mitigation - Construction 13,000,000 4,296,454 8,703,546 Public Facilities Fort MacKay Fire Hall - Design 800, ,000 Public Facilities Fort MacKay Fire Hall - Pre Design 200,000 91, ,611 Public Facilities MacDonald Island Bridge - Pre-Construction 3,000,000 2,121, ,108 Public Facilities RCMP Project Room Fit-Up 75,000 61,600 13,400 Public Facilities RES Tower 5 Power Upgrade 100,000 68,636 31,364 Public Facilities Rural and Urban Emergency Vehicle Replacement for Pumper Truck , ,931 26,069 Public Facilities Saprae Creek Fire Hall Expansion - Design 200, ,240 50,760 Public Facilities South Municipal Facility Compound 1 - South Station 239,154 23, ,159 Public Facilities South Police Centre and Cellblock 20,000,000 17,696,907 2,303,093 Public Facilities Surface Park Relocation/Improvements - Pre-Construction 750,000 16, ,297 Public Facilities Public Facilities Total 43,669,687 27,544,090 16,125,597 Recreation & Culture Clearwater Park System (Riverside Park System) - Construction 3,200, ,270 3,065,730 Recreation & Culture Clearwater Park System (Riverside Park System) - Remediation 14,300,000 1,238,091 13,061,909 Recreation & Culture Jubilee Centre/McMurray Experience - Construction 2,500,000 2,000, ,000 Recreation & Culture Snyeside Park System - Construction 37,864,107 4,136,010 33,728,097 Recreation & Culture Snyeside Park System - Pre Construction 7,830,673 5,843,922 1,986,751 Recreation & Culture Sports and Entertainment Arena - City Center - Pre Construction 1,006, , ,887 Recreation & Culture Waterways & Horse Pasture Park - Construction 1,500, ,821 1,244,179 Recreation & Culture Recreation & Culture Total 68,201,638 14,028,084 54,173,554 Transportation Fraser and Manning - Predesign/Design 500, ,000 Transportation Surface Parking Relocation/Improvement Construction 3,900,000 3,578, ,896 Transportation Transportation Total 4,400,000 3,578, ,896 Grand Total 116,271,325 45,150,279 71,121,047 *includes actual and committed costs as at September 2014

76 APPROVED CAPITAL BUDGET Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Anzac Fire Hall - Construction 4,000,000 Public Facilities Council Chamber Technology Upgrade 750,000 Public Facilities Flood Mitigation - Predesign/Design 6,200,000 Public Facilities Flood Mitigation - Construction 25,600,000 Public Facilities Fort Chipewyan Breathing Air Compressor Replacement 40,000 Public Facilities Fort Chipewyan Pumper 309 Replacement 500,000 Public Facilities Fort MacKay Fire Hall - Construction 4,000,000 Public Facilities RES Manlift ,000 Public Facilities RES Shop Forklift Unit 808 Replacement 40,000 Public Facilities Public Facilities Total 41,190,000 Recreation & Culture Clearwater Park System (Riverside Park System) - Construction 1,838,000 Recreation & Culture Waterways & Horse Pasture Park - Construction 1,871,000 Recreation & Culture Recreation & Culture Total 3,709,000 Transportation Fraser and Manning - Predesign/Design 600,000 Transportation Surface Parking Relocation/Improvement Construction 2,700,000 Transportation Transportation Total 3,300,000 Grand Total 48,199,000

77 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Anzac Fire Hall - Construction 8,000,000 Public Facilities Flood Mitigation - Predesign/Design 2,800,000 Public Facilities Flood Mitigation - Construction 63,500,000 Public Facilities Fort MacKay Fire Hall - Construction 11,000,000 Public Facilities Public Facilities Total 85,300,000 Recreation & Culture Clearwater Park System (Riverside Park System) - Construction 5,000,000 Recreation & Culture Recreation & Culture Total 5,000,000 Transportation Fraser and Manning - Predesign/Design 2,600,000 Transportation Transportation Total 2,600,000 Grand Total 92,900,000

78 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Flood Mitigation - Construction 46,800,000 Public Facilities Public Facilities Total 46,800,000 Recreation & Culture Clearwater Park System (Riverside Park System) - Construction 23,529,000 Recreation & Culture Clearwater Park System (Riverside Park System) - Remediation 6,500,000 Recreation & Culture Waterways & Horse Pasture Park - Construction 15,158,000 Recreation & Culture Recreation & Culture Total 45,187,000 Transportation Transportation Total - Grand Total 91,987, CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Flood Mitigation - Construction 50,800,000 Public Facilities Public Facilities Total 50,800,000 Recreation & Culture Waterways & Horse Pasture Park - Construction 5,032,000 Recreation & Culture Recreation & Culture Total 5,032,000 Transportation Transportation Total - Grand Total 55,832,000

79 79 CORPORATE AND COMMUNITY SERVICES DIVISION DIVISION MANDATE Corporate and Community Services is mandated to provide a wide range of internal and external services. Internally, service delivery is focused on supporting Municipal departments and employees by adopting a service dominant focus to understand internal needs. This is achieved by providing the support required by staff so they can further support and deliver the strategic objectives of the Municipality. Externally, service delivery is focused on building sustainable community capacity and delivering urban and rural services to enhance quality of life in the Municipality.

80 80 A MESSAGE FROM THE EXECUTIVE DIRECTOR Corporate and Community Services is comprised of two major types of departments: internal service departments, such as Information Services, Human Resources, Land Administration and external community service areas, such as Aboriginal and Rural Relations, and Community Services. The 2015 program of work is ambitious targeting major celebrations, such as the 20th anniversary of the Regional Municipality as well as major sports tourism events such as the Western Canada Summer Games, and the Northern Kickoff at MacDonald Island Park. The division will once again support the region s civil society and volunteer organizations through the Community Investment Program, ensuring that local residents are supported in many ways. Internally, Land Administration will champion the implementation of the Master Land Agreement with the province of Alberta and the Information Services team will spearhead the second phase of our enterprise resource program. Collectively, these departments are creating a more responsive, effective municipal government structure by enhancing and aligning our services with the strategic objectives of the Regional Municipality of Wood Buffalo. The 2015 budget reflects a decrease in operation costs of 4% reflecting a reprioritization of funds towards resident s services. Sincerely, Brian Moore Interim Chief Operating Officer 1 Regional Municipality of Wood Buffalo 1 The position of Chief Operating Officer (COO) was eliminated October 31, 2014, as a result of re-organization of the reporting structure for the Regional Municipality of Wood Buffalo, after the preparation of this budget document. The overall total budget was not impacted by the changes in structure.

81 81 DIVISION PROFILE Human Resources Human Resources (HR) is responsible for employee capital management and providing physical resources to clients. HR s role is to provide services with a corporate focus, and an emphasis on safety, wellness and performance excellence in the workplace. HR is a strategic partner for all municipal departments and business units. The department also provides administrative support and develops flexible programs and systems in support of developing an empowered workforce to achieve the strategic goals of the municipality. Information Services Information Services (IS) develops and maintains an internal network of over 600 desktop workstations, digital office equipment and the networking equipment, operating systems, and servers to tie them together. The department maintains an array of financial business systems including utility billing, assessment and taxation, course registration system, and an HR information system. In addition to maintaining existing systems, IS actively works to introduce new systems for areas such as, financial information management, electronic information management, and voice over IP. Also, a helpdesk function for assistance to all municipal staff with the use of MS Office Professional and other related software as well as the printers and photocopiers is provided. Community Services Community Services mandate is to provide programs and services through partnerships and strategic alliances by building capacity within the community to improve the quality of life in the Regional Municipality of Wood Buffalo. This work requires a dedicated team, including: Neighbourhood and Community Development Branch, Community Strategies Branch, Community Investment Program, and Crime Prevention Community Liaison. Aboriginal & Rural Relations Aboriginal and Rural Relations provides advice and acts as a resource for both internal and external stakeholders within the Regional Municipality of Wood Buffalo. Actively engaged with aboriginal and rural communities across the region, the Aboriginal and Rural Relations department s mandate is to build and foster trusting and meaningful relationships, and work collaboratively with aboriginal organizations and rural communities to improve municipal services

82 82 and resident participation, to enhance relations through communication and programming, to develop relevant policy, and to provide linkages with other government agencies. Land Administration Land Administration is responsible for managing the Municipality s real estate portfolio. In carrying out that responsibility, the department serves as project lead in dealing with all of the Municipality s land transactions involving the private sector, government departments and agencies, community groups and organizations, and individual property owners. Specifically, Land Administration is responsible for all acquisitions and dispositions of real estate interests. In order to meet that objective, Land Administration supports, coordinates and collaborates with all affected and or impacted municipal departments regarding land holdings and interests, and the management of municipal lands. Advisory Services Advisory Services serves as organizational partners to help create a more efficient and effective government operation. Focused on the needs of internal customers, we provide services, tools, information and analytics to assist in managing knowledge, meeting regulatory requirements, building internal competency and improving corporate accountability. This internal service is composed of 5 business units: Information Management, Business Intelligence, Geographic Information Systems, Learning Development and Training, and Business Process Improvement.

83 83 MAJOR 2015 INITIATIVES Promoting the region; 2015 Leading the North Conference 4 th year of Poverty Reduction / Homelessness Strategy Partnering in multi-stakeholder projects that examine social impacts in the region; Community Wellbeing Comply with Transport Canada regulations of Fort Chipewyan airport Jubilee Plaza Program Blueprint for social sustainability Municipal Youth Strategy Participation in Elder Abuse Conference Advisory Committee on Aging Enhance collaboration for aboriginal peoples Improve rural programs, services, and communications Assist in the intelligent community and broadband expansion Minimize footprint of Human Resources (HR) operations HR policies and Plans Fleet management system Performance management system Business Continuity ERP implementation (phase 2) Indoor recreation and Community Facility Master plan Western Canada Summer Games Northern Kickoff Canadian Ringette Championships Grand Slam of Curling Western Canada Cup (hockey) Public Art policy and Public Art Committee By-law Increase participation of rural residents in Municipal activities

84 84 FINANCIAL SUMMARY DIVISIONAL OPERATING BUDGET SUMMARY CORPORATE AND COMMUNITY SERVICES REVENUES Property Taxes** Sales To Other Governments 2,000 11,513 - (2,000) (100) (11,513) (100) Sales Of Goods & Services 455, , ,800 61, (241,084) (32) Other Revenue from Own Services 936,306 1,723,415 1,162, , (560,915) (33) Grants 4,640,163 5,647,339 5,529, , (118,239) (2) Other Transfers 252,600 2,756, , , (1,889,703) (69) TOTAL REVENUES 6,287,055 10,897,854 8,076,400 1,789, (2,821,454) (26) EXPENSES Salaries, Wages & Benefits 40,114,494 39,699,744 43,517,200 3,402, ,817, Contracted & General Services 36,579,438 33,179,511 33,954,800 (2,624,638) (7) 775,289 2 Purchases from Governments 45,500 63,929 2,000 (43,500) (96) (61,929) (97) Materials, Goods, Supplies & Utilities 3,956,850 4,249,522 5,116,800 1,159, , Small Equipment & Furnishings 1,368,300 2,013,725 2,506,900 1,138, , Transfers & Grants 38,809,006 36,699,506 32,897,300 (5,911,706) (15) (3,802,206) (10) Financial Service Charges (800) (100) (478) (100) Other Expenses (550) (100) Depreciation Expenses TOTAL EXPENSES 120,874, ,906, ,995,000 (2,879,388) (97) 2,088,034 2 Operating Surplus (Deficit) (114,587,333) (105,009,111) (109,918,600) (4,668,733) (125) 4,909, Contribution to Capital Transfer to Reserve - 1,468, Transfer from Reserve SURPLUS/(DEFICIT) (114,587,333) (103,540,911) (109,918,600) (4,668,733) (4) 4,909,489 5 *as at September 30, 2014 ** Based on approved Property Tax Rate Bylaw; includes Grants in Lieu of Taxes; net of provision for potential appeal losses *2014 Operating projection includes carry forward of $1.5M in the expenses which is offset by an increase in the revenue byf the same amount CORPORATE AND COMMUNITY SERVICES Change Change 2014 Amended 2014 Operating 2014 Amended Operating Budget 2014 Operating Projection* 2015 Approved Operating Budget Budget vs 2015 Approved Operating Budget Projection vs 2015 Approved Operating Budget (a) (b) (c) (a) to (c) (b) to (c) $ $ $ $ % $ % Revenues Expenses 2015 Approved Operating Budget 2015 Approved FTE DEPARTMENTS Office of the Executive Director - 536,600 (536,600) 2.0 Land Administration 621,000 9,375,000 (8,754,000) 15.0 Human Resources 227,200 18,983,900 (18,756,700) 70.0 Community Services 7,143,000 44,528,900 (37,385,900) 54.0 Aboriginal & Rural Relations 85,200 8,502,200 (8,417,000) 39.5 Information Services - 24,377,500 (24,377,500) 67.0 Advisory Services - 11,690,900 (11,690,900) 38.0 Totals 8,076, ,995,000 (109,918,600) 285.5

85 85 PERSONNEL SUMMARY FULL TIME EQUIVALENTS (FTE) SUMMARY a b c b - c d e b + e CORPORATE AND COMMUNITY SERVICES 2014 Approved FTE Authorized FTE 2 * 2014 Filled FTE* 2014 Vacancies* 2014 Projected FTE 2015 Apprved New FTE 2015 Approved FTE DEPARTMENT Office of the Executive Director Land Administration Human Resources Community Services Public Affairs Aboriginal & Rural Relations Information Services (2.0) Advisory Services Legal Services Total *as at September 30, ) Approved FTE is a term used to describe the number of permanent positions that have been authorized by Council, as published in the 2014 Approved Budget and Financial Plan. It does not include temporary and student positions. 2) Differences between 2014 Approved FTEs and 2014 Authorized FTEs are due to reallocations among departments. No increase to the overall approved FTEs occurred at the Municipality in 2014.

86 86 CAPITAL BUDGET SUMMARIES 2014 & Prior Actual Budget Cost* CarryFwd 2015 Approved Budget Plan Major Category $ $ $ $ $ Public Facilities 97,725,505 13,954,973 83,770,533 12,265, ,000 Recreation & Culture 315,784, ,642,390 53,142,281 58,276,310 55,680,790 Transportation 11,800,000 9,046,233 2,753, Total 425,310, ,643, ,666,581 70,541,310 55,930,790 *cost to date as at September 2014

87 & PRIOR CAPITAL BUDGET Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Public Facilities Abram's Parcel 3 Development 5,000,000 3,250,345 1,749,655 Public Facilities Community Accessibility-Rural 750, , ,257 Public Facilities Data Center Relocation 1,649,302 1,612,685 36,617 Public Facilities Electronic Agenda & Voting 300,000 82, ,758 Public Facilities Enterprise Information Management (EIM) 2,559,310 1,594, ,619 Public Facilities FMPSD #2833 Road Access Agreement 5,250,000-5,250,000 Public Facilities IT Infrastructure Upgrades ,413, , ,423 Public Facilities Land Acquisition - [Lot ID Withheld] 299,018 69, ,908 Public Facilities Land Acquisition - [Lot ID Withheld] 299,384 71, ,715 Public Facilities Land Acquisition - [Lot ID Withheld] 299,254 69, ,345 Public Facilities Land Acquisition ,468,390-13,468,390 Public Facilities Land Acquisition ,554,742-58,554,742 Public Facilities Regional Geomatics Program 7,500,000 5,925,481 1,574,519 Public Facilities Wireless Access 382, , ,584 Public Facilities Public Facilities Total 97,725,505 13,954,973 83,770,533 Recreation & Culture Anzac Multi-Use Leisure Facility and Community Park 47,700,000 47,141, ,270 Recreation & Culture Archie Simpson Arena Air Conditioning 720, , ,351 Recreation & Culture Archie Simpson Concrete Slab/Board Modifications 2,538,872 2,493,256 45,616 Recreation & Culture Arena Site Preparation 781, , ,672 Recreation & Culture Casman Centre Food Service Expansion 7,067,103 6,351, ,537 Recreation & Culture Casman Centre Generator , ,000 Recreation & Culture Casman Centre Redevelopment 116,113 18,000 98,113 Recreation & Culture Casman Centre Roof Replacement 900, , ,700 Recreation & Culture Conklin Multiplex - Construction 19,500,000-19,500,000 Recreation & Culture Conklin Multiplex - Pre Design 3,900,000 1,778,456 2,121,544 Recreation & Culture Eagle Rdg Community Centre Partnership 10,052,454 8,000,000 2,052,454 Recreation & Culture Fort Chipewyan Swimming Pool - Construction 8,000,000 6,549,281 1,450,720 Recreation & Culture Fort Chipewyan Swimming Pool - Site Selection and Design 1,100, , ,216 Recreation & Culture Frank Lacroix Arena Generator 135, ,000 Recreation & Culture Jubilee Plaza - Design & Construction 16,919,917 14,210,175 2,709,742 Recreation & Culture MacDonald Island Park Expansion Grant 126,900, ,900,000 - Recreation & Culture MacDonald Island Utility Expansion 30,500,000 23,447,726 7,052,274 Recreation & Culture Mamawi Community Centre Refurbishment 4,000,000 3,411, ,100 Recreation & Culture Northside Multi Use Facility Phase 1 (Twin Arenas) (PARKED) * 5,433,000 5,433,000 Recreation & Culture Ross Hennigar/Ron Morgan Park Upgrades 2,500,000-2,500,000 Recreation & Culture Snye Remediation 12,993,885 9,481,781 3,512,104 Recreation & Culture Thickwood/Timberlea MultiUse Facility - Design 7,000,000 3,939,736 3,060,264 Recreation & Culture Vista Ridge Capital Grant 6,575,000 6,575,000 - Recreation & Culture Zamboni (Back-up) 142, ,395 22,605 Recreation & Culture Recreation & Culture Total 315,784, ,642,390 53,142,281 Transportation Fort Chipewyan Firebag Bridge Replacement - Construction 10,500,000 8,159,539 2,340,462 Transportation Fort Chipewyan Richardson River Bridge Replacement - Design 1,300, , ,306 Transportation Transportation Total 11,800,000 9,046,233 2,753,768 Grand Total 425,310, ,643, ,666,581 *includes actual and committed costs as at September 2014

88 APPROVED CAPITAL BUDGET Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Enterprise Information Management (EIM) 956,000 Public Facilities Heavy Equipment Additions - Winter Operations ,435,000 Public Facilities Heavy Equipment Additions ,689,000 Public Facilities Heavy Equipment Replacements ,935,000 Public Facilities Light Equipment Additions ,000 Public Facilities Light Equipment Replacements ,000 Public Facilities Regional Geomatics Program 1,500,000 Public Facilities Public Facilities Total 12,265,000 Recreation & Culture Anzac Community Centre Upgrades 1,850,000 Recreation & Culture Conklin Multiplex - Construction 2,000,000 Recreation & Culture Doug Barnes Cabin Expansion - Predesign 100,000 Recreation & Culture Doug Barnes Cabin Expansion - Design 100,000 Recreation & Culture Fort Chipewyan Swimming Pool - Construction 8,000,000 Recreation & Culture MacDonald Island Park Expansion Grant 2,000,000 Recreation & Culture MacDonald Island Park Lifecycle & Upgrade - Grant 5,357,000 Recreation & Culture Northside Multi Use Facility Phase 1 (Twin Arenas) 33,409,310 Recreation & Culture Vista Ridge Capital Grant 5,460,000 Recreation & Culture Recreation & Culture Total 58,276,310 Grand Total 70,541,310

89 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Enterprise Information Management (EIM) 250,000 Public Facilities Public Facilities Total 250,000 Recreation & Culture Conklin Multiplex - Construction 20,000,000 Recreation & Culture Doug Barnes Cabin Expansion - Construction 2,600,000 Recreation & Culture Fort Chipewyan Swimming Pool - Construction 20,473,100 Recreation & Culture Northside Multi Use Facility Phase 1 (Twin Arenas) 2,957,690 Recreation & Culture Vista Ridge Capital Grant 1,150,000 Recreation & Culture Recreation & Culture Total 47,180,790 Grand Total 47,430, CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Recreation & Culture Conklin Multiplex - Construction 8,500,000 Recreation & Culture Recreation & Culture Total 8,500,000 Grand Total 8,500,000

90 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Public Facilities Total - Recreation & Culture Recreation & Culture Total - Transportation Transportation Total - Grand Total -

91 91 FINANCIAL SERVICES DIVISION DIVISIONAL MANDATE Ensure fiscal stewardship in a collaborative, innovative and responsive manner. Ensure fair and equitable assessment for all properties in the region. Demonstrate accountability to achieving divisional goals in financial reporting and budgeting. Ensure insurance products adequately protect the assets of the Municipality and claims management is conducted in a prudent manner. Maximize value and opportunities of supply chain management activities utilizing open and transparent processes. Timely and accurate financial reporting for effective decision making. Meet all statutory financial obligations.

92 92 MESSAGE FROM THE EXECUTIVE DIRECTOR The 2015 Budget has incorporated the necessary resources to implement Phase II of the Accountability, Transparency and Integrity Audit conducted in As Council finalizes their Strategic Plan, the organization will ensure resources are aligned for successful delivery. The budget review process for the 2015 budget engaged Council in reviewing competing priorities for limited resources. The ultimate goal is to direct the provision of good government, delivery of desirable services and development of a viable community. The approved 2015 budget was developed within the Fiscal Management Strategy to guide the responsible use of resources. The role of the budget in resource allocation and policy implementation is crucial. Budget methodologies continue to be adapted to our ever changing environment. The 2015 Budget process included a number of guidelines and themes, as highlighted below: The Municipality has increased the number of employees due to a number of services moving from an outsourced delivery model to providing more services in house. A series of Audit and Budget Committee Workshops were held and webcast to encourage and facilitate budget discussions. Rural contact offices also provided a venue for rural residents to view budget proceedings and provide comment. The development of the 2015 budget continues to be guided by fiscal health measures of flexibility and vulnerability with a focus on sustainability. Fiscal stability reserves remain intact and available to respond to unanticipated issues. In closing, we look forward to tracking progress during 2015 and seeking opportunities to further enhance the 2016 budget development process. Producing a budget of this calibre requires a collaborative effort from all departments within the Regional Municipality of Wood Buffalo. I congratulate all teams involved in budget development that has led to the Municipality receiving the Government Finance Officers Distinguished Budget Presentation Award for the fourth consecutive year. I am thankful for their continued commitment to the public sector and our region. Sincerely Elsie Hutton, CMA Chief Financial Officer, Regional Municipality of Wood Buffalo

93 93 DIVISIONAL PROFILE Assessment and Taxation The department is responsible for the valuation and classification of all property, machinery and equipment within the Regional Municipality of Wood Buffalo for the purpose of distributing taxes in an equitable, fair and transparent manner in accordance with provincially legislated standards. Finance The department is comprised of Financial Planning, Accounting and Insurance Services. Financial Planning is responsible for the establishment, implementation and monitoring of Municipal Budgets including tracking budget variances and projections. In addition, the Treasury function supports an appropriate investment management governance structure, debt and reserve management, banking relations and cash flow management responsibilities. Accounting Services oversees the transactional processing of accounts receivable, utility billing, payroll processing, collections, front counter services, fixed asset accounting, ledger reconciliations, financial statement reporting and attending to external auditors. Insurance Services is responsible for obtaining insurance products to adequately protect the assets of the Municipality as well as risk minimization. Supply Chain Management The department is comprised of Procurement (Purchasing, Accounts Payable, Stores and Contract Administration) and Measurement and Reporting. The department is responsible for the purchase of goods and services in a cost effective manner and in a publicly accountable, open and transparent process. This includes acquiring goods and services in accordance with relevant trade agreements and Public Procurement Law. In addition, Supply Chain Management is committed to strengthening relationships with Northeastern Alberta Aboriginal Business Association (NAABA), First Nation, Fort McMurray Chamber of Commerce and Fort McMurray Construction Association (FMCA) with the goal of educating their memberships on how to do business with the Municipality.

94 MAJOR INITIATIVES Assessment and Taxation Direct and Responsible Growth in the Region by: Implementing a long term forecast model to forecast the development and the growth in the region, hence forecasting revenues for multiple years; Implementing best practices by adding a Quality Assurance position to ensure the fair and equitable assessment of all properties and the property taxes are billed accordingly in a timely manner. Promote the Development of Green Initiatives by: Constantly researching and implementing ways of doing business paperless; and using an aerial photo system to detect the new developments in the region and do targeted visits instead of multiple fruitless visits. Increase Economic Development Attraction and Retention by: Constantly training people on legislative changes and best practices, thus building internal expertise and mitigate the risk of using contractors. Finance Enhance and Improve Corporate Responsibilities and Governance by: Leading the Five-Year Plan, the Budget and Projection Process and monitoring the variances throughout the year; Managing and investing the funds appropriately, building a good relationship with financial institutions and managing the debt and reserves; Rendition of timely reports for management and Council decision making and meeting all statutory timelines on all financial reports; Ensure satisfactory external audit report; Facilitate effective internal control processes across RMWB; Continue to build strong internal and external relationships.

95 95 Supply Chain Management Continue to reduce dependence on contractors The Supply Chain Management Department has utilized external contractors to supplement existing staff levels in the Procurement function over the past few years. This contractor expense has been necessary based on the required specialized skillset and the inability to attract full time staff for senior level positions. Utilizing contractors is expensive and much less cost effective than employing a Full Time Equivalent (FTE) staff member. Over the past year Supply Chain Management has made significant progress in replacing contractors with FTEs. In 2014 the services of three contractors were eliminated resulting in an annual cost reduction of over $1M. Supply Chain Management will continue to reduce contractor costs in Drive a Develop our own Talent strategy supplemented by hiring externally as required Supply Chain Management plans to continue to develop internal skillsets and provide team members with the opportunity for promotion within the department combined with hiring externally as needed. For example, an intermediate buyer position was created in 2014 as a stepping stone position between buyer and senior buyer. This new intermediate position was filled internally by the promotion of a buyer.

96 96 FINANCIAL SUMMARY DIVISIONAL OPERATING BUDGET SUMMARY Financial Services Division 2014 Approved Operating Budget REVENUES Sales To Other Governments Sales Of Goods & Services 298, , , , , Other Revenue from Own Services 5,952,300 11,567,400 10,086,000 4,133, (1,481,400) (13) Grants Other Transfers TOTAL REVENUES 6,250,700 11,956,501 10,543,300 4,292, (1,413,201) (12) EXPENSES Salaries, Wages & Benefits 16,001,674 17,005,100 19,560,500 3,558, ,555, Contracted & General Services 6,143,800 5,408,303 4,936,400 (1,207,400) (197) (471,903) (9) Purchases from Governments Materials, Goods, Supplies & Utilities 194, , ,000 25, , Small Equipment & Furnishings 132,500 76,419 49,000 (83,500) (630) (27,419) (36) Transfers & Grants 26,700 26,700 28,800 2, ,100 8 Financial Service Charges 149, , , , , Other Expenses 149, , , ,500 1, , Depreciation Expenses TOTAL EXPENSES 22,797,774 23,027,182 25,445,800 2,648, ,418, Operating Surplus (Deficit) (16,547,074) (11,070,681) (14,902,500) 1,644,574 (99) (3,831,819) 35 Contribution to Capital Transfer to Reserve 250, , , (471,095) (65) Transfer from Reserve 433, ,642 - (433,400) (1,000) (249,642) (100) SURPLUS/(DEFICIT) (16,363,674) (11,542,134) (15,152,500) 1,211,174 (74) (3,610,366) 31 *as at September 30, 2014 *2014 Projected carryforward of $249,642 in the expenses is offsetby an increase of the same amount in revenues Division name Revenues Expenses Change 2014 Operating Projection* 2015 Approved Operating Budget 2014 Approved Budget vs 2015 Approved Budget Budget (a) (b) (c) (a) to (c) (b) to (c) $ $ $ $ % $ % 2015 Approved Operating Budget 2015 Approved FTE 1 DEPARTMENTS Assessment & Taxation 534,400 5,255,600 (4,721,200) 28.0 CFO - 543,200 (543,200) 2.0 Finance 9,908,900 13,764,200 (3,855,300) 73.5 Supply Chain Management 100,000 6,132,800 (6,032,800) 42.0 Totals 10,543,300 25,695,800 (15,152,500) Change 2014 Operating Projection Vs 2015 Approved Operating 1) 2015 Approved FTE excludes former City Centre staff, which are now reported under Corporate Finance. These positions will be re-allocated to their new departments in 2015.

97 97 PERSONNEL SUMMARY FULL TIME EQUIVALENTS (FTE) SUMMARY Office of the CAO and Office of the COO a b c b-c d e b+e Chief Financial Officer Finance Assessment and Taxation Supply Chain Management Total *as at September 30, Approved FTE Authorized FTE 2 * 2014 Filled FTE* 2014 Vacancies* 2014 Projected FTE 2015 Approved New FTE 2015 Approved FTE 3 1) Approved FTE is a term used to describe the number of permanent positions that have been authorized by Council, as published in the 2014 Approved Budget and Financial Plan. It does not include temporary and student positions. 2) Differences between 2014 Approved FTEs and 2014 Authorized FTEs are due to reallocations among branches and/or departments. No increase to the overall approved FTEs occurred at the Municipality in ) 2015 Approved FTE excludes former City Centre staff, which are now reported under Corporate Finance. These positions will be re-allocated to their new departments in 2015.

98 98 CAPITAL BUDGET SUMMARIES 2014 & Prior Actual 2015 Approved Budget Cost* CarryFwd Budget Plan Major Category $ $ $ $ $ Public Facilities 24,868,043 22,449,681 2,418,362 5,000,000 21,200,000 Recreation & Culture Transportation Total 24,868,043 22,449,681 2,418,362 5,000,000 21,200,000 *cost to date as at September & PRIOR CAPITAL BUDGET Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Public Facilities Enterprise Resource Planning 24,868,043 22,449,681 2,418,362 Public Facilities Public Facilities Total 24,868,043 22,449,681 2,418,362 Recreation & Culture Recreation & Culture Total Transportation Transportation Total Grand Total 24,868,043 22,449,681 2,418,362 *includes actual and committed costs as at September 2014

99 APPROVED CAPITAL BUDGET Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Enterprise Resource Planning 5,000,000 Public Facilities Public Facilities Total 5,000,000 Recreation & Culture Recreation & Culture Total - Transportation Transportation Total - Grand Total 5,000, CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Enterprise Resource Planning 17,200,000 Public Facilities Public Facilities Total 17,200,000 Recreation & Culture Recreation & Culture Total - Transportation Transportation Total - Grand Total 17,200,000

100 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Enterprise Resource Planning 1,000,000 Public Facilities Public Facilities Total 1,000,000 Recreation & Culture Recreation & Culture Total - Transportation Transportation Total - Grand Total 1,000, CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Enterprise Resource Planning 3,000,000 Public Facilities Public Facilities Total 3,000,000 Recreation & Culture Recreation & Culture Total - Transportation Transportation Total - Grand Total 3,000,000

101 101 PUBLIC INFRASTRUCTURE AND PLANNING DIVISION DIVISION MANDATE Public Infrastructure and Planning is a forward-looking division that plans and manages the development of public and private infrastructure and ensures they are built, operated and maintained to the highest standards while employing core principles of sustainability and innovation. The division is committed to achieving its mandate through a balanced approach, managing the growth of the Municipality while maintaining high quality, responsive and responsible services to its citizens and customers.

102 102 MESSAGE FROM THE EXECUTIVE DIRECTOR Public Infrastructure and Planning strives to continually improve the quality of life within our communities through the provision of key core municipal services in the areas of planning, engineering, drinking water, wastewater, storm water and solid waste utility services, roads, parks and public facilities. In the provision of these services, safety of the public and our staff, excellent customer service, service reliability, security of commodities supply and prudent decision making are all paramount. The division employs a wide range of proud and highly qualified professional, administrative, operations and maintenance personnel who strive every day to provide the highest level of service to our customers and they continually demonstrate a commitment to take this service to the next level. Public Infrastructure and Planning is excited about, and proud of, the opportunities to maintain and enhance high service delivery standards to residents and customers in This year will be continued improvement in service delivery excellence, balancing management, operation and maintenance of existing infrastructure and programs with implementing new infrastructure and services to meeting continuing growth in the region, to maximize the longevity in the assets and quality of services that our taxpayers and ratepayers have invested in. With these plans, 2015 is shaping up to be an exciting year for both our customers and our staff that I look forward to. Sincerely, Kevin Scoble Interim Executive Director Public Infrastructure and Planning Division

103 103 DIVISION PROFILE Engineering Engineering, through Planning and Design and the Capital Projects, manages the design and construction of Municipal Infrastructure which includes water distribution systems, sewage collection systems, water and waste water treatment facilities, storm water management facilities, roads and bridges. Development Services and Permitting ensure that private infrastructure within the Municipality are built to acceptable standards. Environmental Services The mandate of Environmental Services is to be a leader in providing diligent, reliable and efficient environmental services and protection. This is accomplished through the conscientious work of staff in the Water Treatment Plant, the Wastewater Treatment Plant, Underground Services, Solid Waste and Recycling, and Environmental Sustainability. Public Operations Public Operations is committed to delivering services in a responsive and efficient manner that addresses the needs of Municipal citizens as well as the priorities set by Mayor and Council. The Department continues to succeed in providing exemplary service to all Municipality residents in the areas of Road Maintenance, Transit Services, Parks and Facilities. Planning and Development Planning and Development is responsible for the provision of services related to planning, land use and development activities within the Municipality. Providing reliable customer service is essential to facilitate all aspects of development planning with a focus on sustainability.

104 104 MAJOR INITIATIVES Engineering Development Services Initiatives o Update Engineering Servicing Standards o Update Developer Charge Report o Update Off-site Levy Bylaw Transportation & Infrastructure Planning Initiatives o Integrate transportation planning projects with design work o Strengthen the design component for transportation facilities o Integrate newly completed water and wastewater master plans with capital infrastructure plans o Enhance infrastructure planning process as part of preparing 2016 capital budget o Complete projects utilizing in-house resources (from conception through to design & construction administration) o Complete regional level transportation master plan Sustainability Initiatives o Contribute to implementing zero waste, wastewater re-use, regional water management and district energy through provision of supporting infrastructure Program Management Initiatives o Improve program management data collection and reporting through increased monitoring & controlling processes Environmental Services Expand Fort McMurray Regional Water Treatment Plant Implement New Wastewater Treatment Plants Improve Regional Landfill - Enhanced Material Recovery Facility and Composing Implement Landfill Aerobic Management System Enhance System Controls and Automation Implement Zero Waste Initiative Implement Regional Utility Corridors

105 105 Increase Water Conservation Develop Eco-Park Design Implement internal Water and Septage Delivery Systems Abide by heightening Environmental Regulatory and Compliance Function Public Operations Restructure workforce into specialized teams that will amalgamate both Roads and Parks during the longest season of the year: winter. Return the grass cutting in-house which will allow Parks to ensure standards are met. This will be a two-phase approach beginning on the south side of town, followed by the north side in Align Roads talents during the summer and create a concrete division that allows them to be more fiscally responsible by completing more work in-house. Planning and Development Land Use Bylaw (LUB) Complete 2015 Census Housing Strategy (Monitoring and Review) South Gate Area Structure Plans (2) Rural Area Structure Plans (Fort MacKay and Janvier) Urban Development Sub-Region (UDSR) Study Update of the Municipal Development Plan (MDP) and the City Centre Area Redevelopment Plan (CCARP) Proved development approvals for Saline and Parsons Creek Urban Development Sub-Region study Supporting studies and analysis o Land Use Inventory o Transportation Analysis o Biophysical Impact Assessment o Transportation and Infrastructure Analysis o Fiscal impact assessment of development options

106 106 FINANCIAL SUMMARY Public Infrastructure and Planning 2014 Amended Operating Budget 2014 Operating Projection* 2015 Approved Operating Budget Change 2014 Amended Budget vs 2015 Approved Budget Change 2014 Operating Projection vs 2015 Approved Budget (a) (b) (c) (a) to (c) (b) to (c) $ $ $ $ % $ % REVENUES Property Taxes** 418, , ,800 (41,300) (10) (100) (0) Sales To Other Governments 3,210,400 2,995,400 3,304,800 94, , Sales Of Goods & Services 52,797,500 55,327,214 58,801,800 6,004, ,474,586 6 Other Revenue from Own Services 8,945,300 8,831,900 9,867, , ,035, Grants 6, ,795 - (6,000) (100) (778,795) (100) Other Transfers - 32, (32,125) (100) TOTAL REVENUES 65,377,300 68,342,335 72,351,200 6,973, ,008,865 6 EXPENSES Salaries, Wages & Benefits 74,663,012 73,976,145 83,670,300 9,007, ,694, Contracted & General Services 83,514,450 95,948,330 90,030,330 6,515,880 8 (5,918,000) (6) Purchases from Governments 700, , ,100 (100,100) (14) 100, Materials, Goods, Supplies & Utilities 22,158,350 20,595,183 22,424, , ,828,867 9 Small Equipment & Furnishings 2,742,700 2,771,350 2,887, , ,050 4 Transfers & Grants 250, ,900 3,500 (246,500) (99) (244,400) (99) Financial Service Charges 116, , ,100 (5,200) (4) 9, Other Expenses 5,000 29, (4,900) (98) (28,980) (100) Depreciation Expenses TOTAL EXPENSES 184,150, ,169, ,726,880 15,576, ,557,492 3 Operating Surplus (Deficit) (118,772,712) (125,827,053) (127,375,680) 8,602, ,548,627 1 Contribution to Capital Transfer to Reserve Transfer from Reserve - 5,652, (5,652,369) (100) SURPLUS/(DEFICIT) (118,772,712) (120,174,985) (127,375,980) 8,602, ,200,995 6 *as at September 30, 2014 *2014 Projected carryforward of $5.6M in expenses is offsetby an increase of the same amount in revenues ** Based on approved Property Tax Rate Bylaw; includes Grants in Lieu of Taxes; net of provision for potential appeal losses Public Infrastructure and Planning Revenues Expenses 2015 Approved Operating Budget 2015 Approved FTE DEPARTMENTS Administration - 666,900 (666,900) 2.0 Engineering 6,000 13,745,420 (13,739,420) 51.0 Environmental Services 60,202,200 69,443,360 (9,241,160) Planning & Development 9,990,200 13,688,400 (3,698,200) 94.0 Public Operations 2,152, ,183,100 (100,030,300) Totals 72,351, ,727,180 (127,375,980) 632.0

107 107 PERSONNEL SUMMARY a b c b - c d e b + e Public Infrastructure & Planning Approved Authorized Filled 2014 Projected Approved Approved Full Time Equivalents FTE 1 FTE 2* FTE* Vacancies* FTE New FTE FTE Administration Engineering Environmental Services Planning & Development Public Operations Total Full Time Equivalents ) Approved FTE is a term used to describe the number of permanent positions that have been approved by Council. It does not include temporary and student positions. 2) Differences between 2014 Approved FTEs and 2014 approved FTEs are due to internal reallocations among branches and/or departments. No increase to the overall approved FTEs at the Municipality in 2014.

108 108 CAPITAL BUDGET SUMMARIES CAPITAL BUDGET SUMMARY 2014 & Prior Actual Budget Cost* CarryFwd 2015 Approved Budget Plan Major Category $ $ $ $ $ Public Facilities 715,485, ,958, ,527, ,688, ,246,000 Recreation & Culture 22,687,250 9,862,977 12,824,274 2,050,000 5,000,000 Transportation 513,060, ,958, ,101, ,797, ,371,400 Total 1,251,233, ,779, ,453, ,535, ,617,400 *cost to date as at September 2014

109 & PRIOR CAPITAL BUDGET Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Public Facilities Abasand Heights Pumphouse Upgrade Pre Design and Design 700, ,000 Public Facilities Airport Sewer Construction 4,000,000 3,186, ,623 Public Facilities Anzac Truck Fill 17,000,000 16,609, ,263 Public Facilities Anzac WWTP & Effluent Pipeline 40,500,000 39,937, ,407 Public Facilities Architectural Upgrades of Owned and Leased Space ,425 16, ,635 Public Facilities Architectural Upgrades Owned - Leased ,500, ,540 1,288,460 Public Facilities Athabasca Water Treatment Plant 149,278, ,261,812 1,016,550 Public Facilities Beacon Hill Pumphouse 775, ,940 70,065 Public Facilities Beacon Hill Outfall and Pipeline Upgrades - Construction 6,000,000-6,000,000 Public Facilities Beacon Hill Outfall Pipeline Upgrade Pre Design and Design 1,000, , ,000 Public Facilities Beacon Hill Slope Stability FREC 1,985,280 1,774, ,965 Public Facilities Beacon Hill Water Supply Upgrade Design 800, , ,775 Public Facilities Building Lifecycle 4,100, ,589 3,670,411 Public Facilities Compost Equipment 1,591,855 1,549,962 41,893 Public Facilities Confederation Way Sanitary Sewer Bypass - Construction 12,000, ,467 11,363,533 Public Facilities Conklin Mobile Wastewater Treatment Plant 2,500,000-2,500,000 Public Facilities Conklin Sewage Lagoon Upgd Predesign and Design 1,500,000 1,334, ,523 Public Facilities Conklin Wastewater Treatment Plant - Construction 1,000,000 7, ,000 Public Facilities Conklin Water Treatment Plant 1,032, , ,248 Public Facilities Contaminated Soil Land Farm Construction 3,000, ,272 2,614,728 Public Facilities Cornwall Lift Station Design 500, ,187 28,813 Public Facilities Cornwall Lift Station Upgrade 40,154 12,495 27,660 Public Facilities District Energy Supply and Return Pipe - PLB Portion 1,500,000 1,327, ,494 Public Facilities Fire Suppression Fleet Building - Regional Landfill 1,250,000 68,970 1,181,030 Public Facilities Fort Chipewyan Landfill Public Drop-Off Const & Lat. Exp. of Cell 1 2,800,000 2,110, ,661 Public Facilities Fort Chipewyan WTP Back-Up Power Supply 1,318,808 1,224,082 94,726 Public Facilities Fort Chipewyan WTP Expansion - Construction 2,900,000 53,860 2,846,140 Public Facilities Fort MacKay Lift Station Spare 62,720 25,305 37,415 Public Facilities Fort McMurray WWTP Process Improvements - Predesign/Design 1,330, , ,000 Public Facilities Grayling Terrace Lift Station Assessment Pre Design/Design 500, , ,000 Public Facilities Green Energy/Utility Distribution System - Predesign 1,000, ,900 Public Facilities Green Plan Initiative Regional 4,000,000 3,406, ,269 Public Facilities Gregoire East Sanitary Outfall 816, , ,171 Public Facilities Hangingstone River Grayling Terrace FREC 1,395,000 1,204, ,653 Public Facilities Heated Storage Facility Water Haul Trucks 418,000 91, ,612 Public Facilities Heavy Equipment Addition 2014 Fuel Truck 250, ,000 Public Facilities Household Hazardous Waste Building 350, ,402 34,598 Public Facilities Hwy 69 Lift Station & Forcemain 12,500,000 12,357, ,231 Public Facilities Infrastructure Relocation Highway 63 2,021,285 46,186 1,975,099 Public Facilities Inverted Pad 969, , ,326

110 & PRIOR CAPITAL BUDGET (CONT'D) Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Public Facilities Janvier Sewage Lagoon Upgrade - Design 1,500, ,018 1,261,982 Public Facilities Janvier WTP Intake Design 560, , ,243 Public Facilities Jubilee Building Major Maintenance Upgrades ,486, , ,321 Public Facilities Jubilee Centre Reno/Construction ,000,000 1,195,210 4,804,790 Public Facilities Jubilee Main Floor Multipurpose Room Modifications 240, ,308 68,285 Public Facilities Keyano Area Access Clearwater 2,524,998 (3,007) 2,528,006 Public Facilities Keyano Area Water and Sewer Trunks 2,776, ,496 2,453,431 Public Facilities Landfill Gas Management System 700, ,602 69,398 Public Facilities Landfill Gas Management System - PreDesign/Design 400, , ,000 Public Facilities Landfill Gas Mgmt System Construction 12,000,000 11,946,584 53,416 Public Facilities Lift Station Upgrades (South) 18,731,680 12,577,049 6,154,631 Public Facilities Low Pressure Sanitary Sewer Hwy 63 North 3,500,000 3,450,952 49,048 Public Facilities Lower Townsite Reservoir Upgrade Construction 17,300,000 16,277,821 1,022,179 Public Facilities Lower Towsite 4 Way Chamber - Design 1,400, ,040 1,003,960 Public Facilities MacDonald Island Utility Expansion 4,000, ,764 3,661,236 Public Facilities MacKenzie Lift Station Diversion/Sewer Upgrade Design 1,450, , ,785 Public Facilities Material Recovery Facility (MRF) Expansion - Construction 2,500, ,572 2,163,428 Public Facilities Material Recovery Facility Expansion - Pre Design/Design 500, ,088 73,912 Public Facilities Parking Lot Upgrades 3,372,632 2,491, ,602 Public Facilities Parsons Creek Reservoir (FMCDP) 1,284,330 1,110, ,967 Public Facilities Parsons Creek Water Supply from WTP to Parsons Creek Reservoir 42,750,000 37,941,303 4,808,697 Public Facilities Reg Landfill Cell II, III/Stockpile Pad 1,710, , ,001 Public Facilities Regional Landfill-Lateral Expansion Cells 1, 2, and 3 6,000,000 5,798, ,110 Public Facilities Regional SCADA WAN - Construction 1,500,000 1,142, ,099 Public Facilities Regional Scada WAN Design 225,000 72, ,557 Public Facilities Replacement of Trane Chiller & Cooling Tower 379, ,900 15,492 Public Facilities River Bank Protection - Design and Construction 3,000,000 1,783,325 1,216,675 Public Facilities Rural Water & Sewer Servicing - Design 5,850, ,800 5,375,200 Public Facilities Rural Water & Sewer Servicing - Construction 250, ,000 Public Facilities Saline Cr Water Main from Hardin St to King St Booster Stn - Construction 14,000,000 13,897, ,517 Public Facilities Saline Creek Culvert FREC 405, , ,237 Public Facilities Saline Creek King Street Booster 104,120 (75,474) 179,594 Public Facilities Saline Creek Outfall Sewer to Mills Avenue 29,900,000 26,458,329 3,441,671 Public Facilities Saline Creek Plateau Transmission Main 9,500,000 9,473,624 26,376 Public Facilities Saline Creek Supply Line from King to Booster 38,261,846 33,527,919 4,733,927 Public Facilities Saline Creek Supply Line from WTP to King Street 14,198,154 12,142,120 2,056,034 Public Facilities Saline Creek/Ptarmigan Court FREC 826, , ,640 Public Facilities Saline Plateau Trunk Sewer 19,500,000 13,544,058 5,955,942 Public Facilities Saprae Creek Water Line - Design & Construction 4,000,000 1,529,709 2,470,291 Public Facilities Septage Receiving Station - Construction 18,600,000 17,875, ,437

111 & PRIOR CAPITAL BUDGET (CONT'D) Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Public Facilities Shop Office Space at WWTP Construction 14,200,000 12,105,717 2,094,283 Public Facilities Solid Waste Office/Shop & Fleet Building 701, ,292 70,920 Public Facilities South Operations Centre Design & Construction 51,340,985 50,618, ,527 Public Facilities South Regional Reversible Effluent Pipeline Design 1,500,000-1,500,000 Public Facilities South Regional Wastewater Treatment Plant Facility Pre Design 3,000,000 1,061,252 1,938,748 Public Facilities Southeast 881 Water Supply Line - Predesign/Design 2,500, ,000 2,250,000 Public Facilities Southeast Resevoir Upgrade - Design 1,000, , ,137 Public Facilities Southwest Water Supply Line - Design 5,000, ,000 4,500,000 Public Facilities Southwest Water Supply Line Phase 1 - Construction 8,000,000 1,370,000 6,630,000 Public Facilities Steel Gates with Municipal Logo 112,800 88,275 24,525 Public Facilities Thickwood Reservoir Replacement Construction 7,950,000 7,159, ,747 Public Facilities Tipping Pad - Construction 1,300, ,997 1,001,004 Public Facilities Tipping Pad - Pre Design/Design 100,000 48,246 51,754 Public Facilities Tourist Sewage Dump Station - Design 500, , ,879 Public Facilities Transfer Station/Recycling Depot Construction 555, , ,207 Public Facilities Transfer Stations/Recycling Depot Design 448, , ,322 Public Facilities Urban & Rural Cemetery Development Design 1,600, , ,268 Public Facilities Urban/Rural Cemetery Development Construction 7,000,000 6,464, ,634 Public Facilities Waste Water Treatment Plant 3,260,973 3,106, ,322 Public Facilities Wastewater Treatment Plant Improvements 8,400,000 3,820,899 4,579,101 Public Facilities Water Line to Fort MacKay Pre Design/Design 1,474, , ,340 Public Facilities Water Supply SE Supply Line MacKenzie to SE 13,044,800 11,597,017 1,447,783 Public Facilities Watermain Connection - Richard Street 2,900,000 2,690, ,021 Public Facilities Public Facilities Total 715,485, ,958, ,527,512 Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Recreation & Culture Active Transportation Trail Construction 2,700,000-2,700,000 Recreation & Culture Active Transportation Trail Design 300,000 83, ,600 Recreation & Culture Beacon Hill Water Spray Park 1,120,000 1,085,044 34,956 Recreation & Culture Beaver Trail Light Project Birchwood Trail System 450, , ,961 Recreation & Culture Birchwood Trail Lighting , , ,796 Recreation & Culture Community Placemaking ,754 7, ,360 Recreation & Culture Community Playgrounds (Eagle Ridge, Janvier, Chad Matthies, St Gabriel) 1,875,000 1,075, ,000 Recreation & Culture Fort Chipewyan Sports Field Expansion 58,108 27,840 30,268 Recreation & Culture Fort McMurray Bike Park - Construction 2,000,000 1,478, ,046 Recreation & Culture Gregoire/Beacon Hill Off Leash Dog Park 150, ,500 34,500 Recreation & Culture Janvier Skateboard Park 300, , ,315 Recreation & Culture Rural Community Placemaking - Anzac 1,400,000 1,370,000 30,000

112 & PRIOR CAPITAL BUDGET (CONT'D) Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Recreation & Culture Rural Community Placemaking - Fort Chipewyan 4,670,888 93,807 4,577,081 Recreation & Culture Rural Community Placemaking - Gregoire 800, , ,000 Recreation & Culture Rural Community Placemaking - Saprae Creek 700, ,533 28,467 Recreation & Culture Rural Off Highway Vehicle Fencing Anzac 150,000 95,077 54,923 Recreation & Culture Signal Road Trail Paving 518,500 2, ,520 Recreation & Culture Slow Pitch Ball Diamonds - Construction 1,600, ,121 1,136,879 Recreation & Culture Tennis Court Resurfacing 1,500, , ,015 Recreation & Culture Timberlea Splash Park 500, ,930 37,070 Recreation & Culture Westview Westwood Community Park Upgrade 1,225,000 1,127,484 97,516 Recreation & Culture Recreation & Culture Total 22,687,250 9,862,977 12,824,274 Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Transportation Anzac Asphalt Roadside Walkway 866, , ,485 Transportation Back of Curb Treatments at the King St. Traffic Circle & Along Gregoire Dr. 1,300,000-1,300,000 Transportation Christina River Bridge - Construction 2,000,000-2,000,000 Transportation Christina River Bridge - Design 500, , ,583 Transportation Christina River Bridge Replacement - Design 500, , ,413 Transportation Confederation Way/Thickwood Blvd Lane Widening 13,000,000 5,407,959 7,592,041 Transportation Fort MacKay Bridge Replacement 31,220,800 28,171,718 3,049,082 Transportation Franklin Ave Revitalization - Construction 104,186 10,000 94,186 Transportation Fraser Ave & McLeod St Extension - Design and Construction 3,600, ,869 3,357,131 Transportation Gregoire Lake Estates - Road Side Drainage - Design 300, ,292 89,708 Transportation Highway 63 Collector-Distributor Road Impacts - Design 455, , ,321 Transportation Intelligent Bus Transit System (IBTS) 6,150,000-6,150,000 Transportation Parsons Creek West Access Road - Design 6,490,000 6,223, ,453 Transportation Prairie Loop Boulevard 59,773,167 17,967,193 41,805,974 Transportation Rural Infrastructure Rehabilitation 38,200,000 37,310, ,638 Transportation Rural Road Rehabilitation ,598,245 2,363, ,166 Transportation Rural Street Light Conversion to LED 210, ,237 60,763 Transportation Saline Creek Drive and Bridge 72,175,000 67,396,799 4,778,201 Transportation Saline Creek Highway 69 Twinning 16,900,000 16,646, ,260 Transportation Saprae Creek Bridge/Draper Road FREC 358, ,113 52,737 Transportation Sidewalks in Rural Communities 500, , ,260 Transportation Specialized Transit Bus Additions & Replacements ,000 55, ,860 Transportation Tolen Dr Bridge Replacement - PreDesign and Design 700, , ,240 Transportation Tolen Dr Bridge Replacement & Saprae Cr Trestles Removal 1,000, , ,200 Transportation Traffic Signal Upgrades , , ,283

113 & PRIOR CAPITAL BUDGET (CONT'D) Legend: Project has future capital budget request Major Category Project Name Financial Update Budget ($) Cost* ($) Carryfwd (s) Transportation Transit Bus Additions ,335,399 1,207,576 1,127,823 Transportation Transit Bus Refurbish Program , ,500 - Transportation Transit Bus Replacement ,465,372 2,127, ,060 Transportation Transit Bus Shelter Replacements/Additions 21,300,000 20,869, ,350 Transportation Transit Facility - Construction 53,887,500 7,800,025 46,087,475 Transportation Transit Terminals 5,600, ,742 4,949,258 Transportation Urban Infrastructure Rehabilitation ,111, ,714,024 2,397,622 Transportation Urban Infrastructure Rehabilitation Program Design 4,000,000 1,529,539 2,470,462 Transportation Urban Infrastructure Rehabilitation Program Construction 40,000,000 32,933,098 7,066,902 Transportation Urban Road Rehabilitation , ,402 Transportation West Airport Boundary Road 17,500,000 16,904, ,535 Transportation Transportation Total 513,060, ,958, ,101,873 Grand Total 1,251,233, ,779, ,453,658 *includes actual and committed costs as at September 2014

114 APPROVED CAPITAL BUDGET Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Anzac WWTP & Effluent Pipeline 3,000,000 Public Facilities Beacon Hill Outfall and Pipeline Upgrades - Construction 9,000,000 Public Facilities Building Lifecycle 2,639,000 Public Facilities Confederation Way Sanitary Sewer Bypass - Construction 5,000,000 Public Facilities Conklin Water Treatment/Supply Upgrade Phase 2 - Design 650,000 Public Facilities District Energy Supply and Return Pipe - PLB Portion 8,350,000 Public Facilities Fort Chipewyan Storage Building Replacement 2,339,000 Public Facilities Fort Chipewyan Water and Sanitary Sewer - Predesign 450,000 Public Facilities Fort Chipewyan WTP Expansion - Construction 9,100,000 Public Facilities Fort MacKay Sewage Lagoon Upgrade - Predesign 100,000 Public Facilities Fort MacKay Sewage Lagoon Upgrade - Design 500,000 Public Facilities Fort McMurray WWTP Process Improvements - Predesign/Design 3,000,000 Public Facilities Janvier Sewage Lagoon Upgrade - Construction 4,200,000 Public Facilities Janvier Steel Building - Rink Replacement 3,006,000 Public Facilities Jubilee Centre Reno/Construction ,820,000 Public Facilities Lift Station Upgrades (South) 6,000,000 Public Facilities MacKenzie Blvd Lift Station Diversion & Sewer Upgrade - Construction 15,150,000 Public Facilities Man-Door Canopies - Fort Chipewyan Garage 684,000 Public Facilities Man-Door Canopies - Fort McMurray Landfill Building 592,000 Public Facilities Material Recovery Facility (MRF) Expansion - Construction 2,500,000 Public Facilities Municipal Assets - Fall Protection 1,143,000 Public Facilities Northern Utility Corridor - Predesign 7,000,000 Public Facilities Regional Landfill Cell 4 - Design 100,000 Public Facilities Regional Landfill Cell 4 - Construction 3,400,000 Public Facilities Regional Landfill Storm Pond 2 - Design 20,000 Public Facilities Regional Landfill Storm Pond 2 - Construction 220,000 Public Facilities Regional SCADA WAN - Construction 500,000 Public Facilities Rodeo Drive Storm Pipe - Design 75,000 Public Facilities Rural Water & Sewer Servicing - Design 3,900,000 Public Facilities Rural Water & Sewer Servicing - Construction 15,000,000 Public Facilities Saprae Creek Water Distribution Upgrades - Predesign 250,000 Public Facilities Southeast 881 Water Supply Line - Predesign/Design 2,000,000 Public Facilities Southwest Water Supply Line Phase 1 - Construction 19,000,000 Public Facilities Public Facilities Total 135,688,000

115 APPROVED CAPITAL BUDGET (CONT'D) Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Recreation & Culture Active Transportation Trail Construction 1,300,000 Recreation & Culture Anzac Garage & Compound - Construction 750,000 Recreation & Culture Recreation & Culture Total 2,050,000 Transportation Road B at Saline Creek - Design 800,000 Transportation Road B at Saline Creek - Construction 5,000,000 Transportation Rural Infrastructure Rehabilitation Design 1,300,000 Transportation Rural Infrastructure Rehabilitation Construction 16,000,000 Transportation Saline Creek Drive - Placemaking 4,000,000 Transportation Saline Creek Drive and Bridge 4,000,000 Transportation Silin Forest Rd Complex Security Gate & Fencing 148,000 Transportation Silin Forest Road Rehabilitation 2,050,000 Transportation Street Light Improvements - Conklin and Janvier 584,000 Transportation Tolen Dr Bridge Replacement & Saprae Cr Trestles Removal 6,315,075 Transportation Traffic Signals Rehabilitation ,000 Transportation Transit Terminal Northside 4,000,000 Transportation Urban Infrastructure Rehabilitation Program Design 1,400,000 Transportation Urban Infrastructure Rehabilitation Program Construction 55,000,000 Transportation Transportation Total 100,797,075 Grand Total 238,535,075

116 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Anzac WWTP & Effluent Pipeline 8,000,000 Public Facilities Building Lifecycle 187,000 Public Facilities Confederation Way Sanitary Sewer Bypass - Construction 11,000,000 Public Facilities Conklin Wastewater Treatment Plant - Construction 5,000,000 Public Facilities District Energy Supply and Return Pipe - PLB Portion 17,446,000 Public Facilities Fort Chipewyan Storage Building Replacement 1,739,000 Public Facilities Fort Chipewyan WTP Expansion - Construction 10,000,000 Public Facilities Fort McMurray WWTP Process Improvements - Predesign/Design 1,700,000 Public Facilities Jubilee Centre Reno/Construction ,290,000 Public Facilities Lift Station Upgrades (South) 4,000,000 Public Facilities MacKenzie Blvd Lift Station Diversion & Sewer Upgrade - Construction 15,150,000 Public Facilities Northern Utility Corridor - Predesign 5,000,000 Public Facilities Regional Landfill Cell 4 - Construction 3,000,000 Public Facilities Rural Water & Sewer Servicing - Design 6,000,000 Public Facilities Rural Water & Sewer Servicing - Construction 30,000,000 Public Facilities Southwest Water Supply Line Phase 1 - Construction 8,000,000 Public Facilities Public Facilities Total 128,512,000 Recreation & Culture Active Transportation Trail Construction 5,000,000 Recreation & Culture Recreation & Culture Total 5,000,000 Transportation Prairie Loop Boulevard 9,850,000 Transportation Road B at Saline Creek - Construction 7,000,000 Transportation Rural Infrastructure Rehabilitation Design 1,300,000 Transportation Rural Infrastructure Rehabilitation Construction 27,000,000 Transportation Traffic Signals Rehabilitation ,000 Transportation Transit Bus Refurbish Program ,324,000 Transportation Transit Terminal Northside 3,500,000 Transportation Urban Infrastructure Rehabilitation Program Construction 80,000,000 Transportation Transportation Total 130,274,000 Grand Total 263,786,000

117 CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Building Lifecycle 1,648,000 Public Facilities Conklin Wastewater Treatment Plant - Construction 15,000,000 Public Facilities Fort Chipewyan WTP Expansion - Construction 8,700,000 Public Facilities Regional Landfill Cell 4 - Construction 1,000,000 Public Facilities Rural Water & Sewer Servicing - Construction 45,000,000 Public Facilities Public Facilities Total 71,348,000 Transportation Prairie Loop Boulevard 22,350,000 Transportation Rural Infrastructure Rehabilitation Construction 27,000,000 Transportation Specialized Transit Bus Additions & Replacements ,000 Transportation Transit Bus Refurbish Program ,119,000 Transportation Transportation Total 50,688,000 Grand Total 122,036, CAPITAL PLAN Legend: Other than first year of a multiple year project First year of a preapproved multiple year project - Construction Phase First year of a multiple year project Single year project Major Category Project Name Budget ($) Public Facilities Building Lifecycle 12,086,000 Public Facilities Conklin Wastewater Treatment Plant - Construction 19,000,000 Public Facilities Fort Chipewyan WTP Expansion - Construction 3,300,000 Public Facilities Rural Water & Sewer Servicing - Construction 60,000,000 Public Facilities Public Facilities Total 94,386,000 Transportation Prairie Loop Boulevard 6,728,400 Transportation Specialized Transit Bus Additions & Replacements ,000 Transportation Transit Bus Refurbish Program ,007,000 Transportation Transportation Total 8,409,400 Grand Total 102,795,400

118 2015 CAPITAL BUDGET AND CAPITAL PLAN 118

119 CAPITAL BUDGET & PLAN OVERVIEW 119

120 120 CAPITAL BUDGET & PLAN OVERVIEW The Regional Municipality of Wood Buffalo has experienced unparalleled population and industry growth which impacts infrastructure demands. Municipal infrastructure delivery generally has an average lag of five (5) years and it is every municipality s goal to accelerate the provision of infrastructure. The Regional Municipality of Wood Buffalo is no exception to this goal. To be able to meet the needs of the region, the Municipality has an elaborate capital planning process that covers six (6) future years, taking into consideration human, financial and vendor resources. The major groupings or categories for the capital budget and plan are: Public Facilities Recreation & Culture Transportation The approved 2015 capital budget funding requirements amount to $362,275,385. The individual project category requirements are as follows: 2014 & Total Prior Approved Category Approved CarryFwd Budget % Capital Spend Public Facilities $ 239,842,003 $ 194,143,000 53% $ 433,985,003 Recreation & Culture 120,140,108 64,035,310 18% 184,175,418 Transportation 144,677, ,097,075 29% 248,774,611 Total $ 504,659,647 $ 362,275, % $ 866,935,032 The approved 2015 capital budget of $362,275,385 consists of 79 projects, of which 34 are continuing multi-year projects with cash flow impacts in As at September 30, 2014, $504,659,647 was available (uncommitted) for ongoing projects approved in 2014 and prior years some of the work will be completed in the last quarter of 2014, while the rest will be completed in future years. The total available budget for all capital projects approved in 2015 and prior years is $866,935,032. A new Municipal Public Art Policy adopted by Council in July 2014, allocated an additional $312,375, to be funded from the capital infrastructure reserve for public art installations. Council has appointed a Public Art Committee to advise on the implementation of the Municipal Public Art Program and procurements using these funds. The approved 2015 capital budget is funded from transfers from the capital infrastructure reserve, grants, debt and other sources such as offsite levies. Further, there were seven (7) projects identified for possible alternative capital financing in the form of public private partnerships. Council has adopted the Alternative Capital Financing Policy, which forms the basis for the Alternative Capital Financing Administrative Guidelines.

121 121 Alternative capital financing agreements take various forms and the financial impact cannot be readily determined until negotiations are substantially complete. The following is a list of projects that have been identified for alternative capital financing. As each project s financing agreements are finalized, recommendations will be brought forward for Council s consideration and/or approval; presently these costs are not included in the approved 2015 budget. Projects Identified for Alternative Capital Financing 1. Anzac Waste Water Treatment Plant Outfall Line Construction 2. Fort MacKay Waste Water Treatment Plant Construction 3. Green Energy / Utility Distribution System Construction 4. Landfill Eco-Park Service Construction 5. Northern Utility Corridor Design/Construction 6. Regional Green Energy Zero Waste (remote sites) 7. South Regional Waste Water Treatment Plant Construction * This list is subject to review and change, based on Council priorities. Capital Budget Funding Sources 2015 Grants 35,600,000 Capital Infrastructure Reserve 250,316,075 Debentures 69,109,310 Offsite Levy / Developer Charges 7,250,000 Total $ 362,275,385 The funding sources for the 2015 Capital budget will be reserves 69%, debentures or debt 19%, approximately 10% from Federal and Provincial government grants and the remaining 2% through other resources. About $285M is projected to be transferred from the Operating budget in 2015 to the Capital Infrastructure Reserve (CIR). These transfers are used in 2015 and future years to support an expected property tax regime Capital Budget Funding Sources $362,275,385 Debentures 19% Developer Charges 2% Grants 10% Capital Infrastructure Reserve 69%

122 Approved Capital Budget Spending by Category Transportation 29% The approved 2015 capital budget represents 53% or $194M investment in public facilities. Approximately 29% or $104M will be spent in transportation related projects, while 18% or $64M will be spent on recreation and culture projects. Recreation & Culture 18% purchase and 2 grant projects. Public Facilities 53% Within this document separate sections in each of these categories provide further detail, including project name and approved budget. The approved spending indicates 5 predesign projects, 15 design projects, and 45 construction projects. It also includes 12 There are 39 projects ($210M) related to new assets, and 40 projects ($152M) for lifecycle (rehabilitation/maintenance). $250,000, Capital Plan Spending by Category $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ Public Facilities Recreation & Culture Transportation

123 Capital Plan Total Spending by Category Public Facilities Recreation & Culture Transportation Transportation 25% The approved 2015 capital budget and capital plan represents an investment in our Region of $1,168,742,575 in capital assets over the next six (6) years. From , significant investments will be made in public facilities (59% or $693M), followed by $296M or 25% in transportation projects and $180M or 16% for recreation and culture. Recreation & Culture 16% Public Facilities 59% Approximately 72% or $839M of financing for the approved capital budget and plan will come from capital reserves. Debentures or debt will fund 12% or $144M, 14% or $161M will come from grants from other levels of government, and the remaining 2% or $25M will come from other sources. The following sections provide further detail for the by the major categories; Public Facilities, Recreation and Culture and Transportation Capital Budget & Plan Funding Sources Debentures 12% Developer Charges 2% Grants 14% Capital Infrastructure Reserve 72%