Click to insert title. Standard and Poor s. Credit Rating Review April 18,

Transcription

1 Click to insert title Standard and Poor s Credit Rating Review April 18,

2 Planning Framework 2

3 Strategic Direction New Strategic Plan ( ): One City, One Team Advancing the Official Community Plan and Community Priorities New Corporate Scorecard will be created that has measures that are aligned to 4 strategic perspectives: - Community, Financial, Internal Process, and Learning & Growth 3

4 Leadership Set up for continued success Strong continued focus on succession planning and leadership enhancement Changes to leadership: New Council with 4 new councillors New City Manager New CFO New ED of Human Resources 4

5 Strategic Transformation Long Range Financial Plan (LRFP) Planning, Budget and Analysis (PBA) Improving transparency & public reporting through the Municipal Benchmarking Network Canada (MBN Canada) Asset Management Financial Policy Updates 5

6 2016 Financial Results 6

7 Financial Highlights Accumulated Surplus $189 million (11%) Tangible Capital Assets $190 million (10%) Reserves $18million (7%) Revenue $90 million (14%) Expenses $70 million (14%) 7

8 Financial Assets 2016 Financial Assets decreased $31 million ( 6%) from 2015 Long-term Investments $93 million (22%) Accounts Receivable $49 million (114%) Land Inventory $9 million (2605%) 8

9 Financial Liabilities 2016 Financial Liabilities decreased $31 million ( 5%) from 2015 Accounts Payable $78 million (53%) Deferred Revenue $32 million (73%) Long-term Debt $22 million (8%) 9

10 Net Financial Debt (in millions)

11 Revenues Revenue of $747 million in $90 million increase ( 14%) from 2015 Other Capital Contributions $50 million Taxation Revenue $12 million (5%) Government Transfers $31 million (35%) Interest on Investments Contribution of TCA $17 million (117%) $6 million (32%) 11

12 Revenues By Types Other capital contributions 7% Contribution of TCA 4% Others 12% Taxation 32% Government Transfers 16% Fees & Charges 29% 12

13 Top 10 City Levy Base (in billions) Victoria Square Mall Loblaw's Cold Storage Legislative Building Northgate Mall FCC Original Sasktel Southland Mall RCMP Cornwall Centre Mall 2.74 Consumers' Co-Op Refinery

14 Expenses Expenses of $557 million in $70 million increase ( 14%) from 2015 Waste Collection & Disposal $26 million (317%) Park, Recreation & Community Services $23 million (23%) Water, Wastewater & Drainage $17 million (24%) Legislative & Admin Service $13 million (18%) Roads & Traffic $15 million (22%) 14

15 Expenses By Type Fire, 8% Other, 14% Parks, recreation & community services, 22% Roads & Traffic, 10% Water, wastewater & drainage, 16% Legislative & admin services, 16% Police, 14% 15

16 City of Regina Reserves 2016 Reserves of $219 million $18 million decrease (8%) from 2015 General Utility Reserve $13 million (17%) Solid Waste Reserve $10 million (49%) Asset Revitalization Reserve $11 million (57%) Regina Revitalization Initiative Stadium Reserve Land Development Reserve $8 million (27%) $11 million (351%) 16

17 Reserves (in millions) City of Regina Reserves Group Benefit Reserves Other Entities Reserves

18 Long-Term Debt (in millions) Est Est Est Est Est. Debt Evraz Place Police Debt Limit 18

19 Debt Servicing Costs (in millions) Est Est. 19

20 Sustainability Indicator Ratio of Financial Assets to Liabilities Ratio of Assets to Liabilities Ratio of Net Debt to Total Revenue Total Debt per Household $2,667 $2,975 $2,546 $883 $958 $1,092 20

21 Flexibility Indicator Ratio of Debt Charges to Total Revenue Municipal Taxes as % of Household Income Ratio of Total Municipal Revenue to Taxable Assessment % 2.75% 2.66% 2.36% 2.25% 2.22%

22 Vulnerability Indicator Ratio of Government Transfers to Total Revenue

23

24 Proposed 2017 Amended Budget To address a $10.3 million 2017 City budget shortfall the result of March 22 nd provincial budget Guiding Principles City Council will review proposed 2017 amended budget on April 18 th 24

25 Proposed 2017 Amended Budget Recommendations: Mill Rate increase of 2.5%, $5.3 million Regina Police Service Reduction of $1.0 million City Admin Cost & Service Reduction of $3.1 million Fee Increase & Removed Tax Exemption will generate $0.9 million 25

26 Operating Budget Highlights 2017 General Operating Budget - $438 million, an increase of $19 million ( 5%) from 2016; Approved Mill Rate of 3.99%, including: 1% Residential Road Improvement Plan 0.45% Stadium Funding, 2.54% Mill Rate Collective Agreements 26

27 General Operating Revenue Total General Operating Revenue of $438 million - $19 million ( 5%) increase from 2016 Property Taxation $13 million (7%) Fee & Charges $11 million (17%) 27

28 General Operating Expenditure Total General Operating Expenditure of $438 million - $19 million ( 5%) growth from 2016 Allocation to Capital $6 million (12%) Other Expenses $3 million (14%) 28

29 Utility Operating Budget Highlights Utility Operating Revenue of $131 million Utility Operating Expenditure of $80 million The remaining of $51 million will be transferred to reserves. A Full Cost-Recovery, User-Pay Basis, including the costs of delivering services & infrastructure renewal 29

30 Utility Operating Revenue Total Utility Revenue of $131 million $6 million ( 4%) increases from Utility Rate increase is 4%, effective March 1 st,

31 Utility Operating Expenditure Total Utility Expenditures of $80 million - $14 million ( 18%) increase from 2016 Allocation to Capital $5 million (337%) Other Expenses $4 million (32%) Salaries & Benefits $2 million (9%) 31

32 5-Year Capital Plan ( ) City-Wide Asset Management supported the development of 5-year Capital Plan 5-Year Capital Plan total of $945.7 million, combines General and Utility Fund capital of projects 32

33 2017 Capital Budget 2017 Capital Budget of $187 million, including: General Fund Utility Fund $121 million $66 million 33

34 2017 Capital Funding Sources General Capital Reserve of $46M Current Contribution of $43M Other Sources of $26M Grant of $6M Utility Capital Reserve of $36M Service Agreement Fees (Utility) $18M Grant of $11M Other External Sources of $1M 34

35 2017 Budget & Beyond Infrastructure Renewal: - Wastewater Treatment Plant (WWTP) & New Stadium move into operational stage - Regina s Railyard Renewal Project - Taylor Field Neighbourhood (old stadium site) - Continuation of Residential Roadway Renewal Program 35

36 2017 Budget & Beyond (continued) Long-term Plans Development: - Transportation Master Plan - Recreation Master Plan - Water Master Plan - Wastewater Master Plan - A review of the Service Agreement Fee Program 36

37 37