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RFD- 3459 Business Items   Item #   10. a.    
Regular Council Meeting Agenda
Meeting Date: 11/26/2018  
Title:    2019 - 2021 Corporate Plan - Cotterill
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal:

Information
Request for Decision Summary
The amendments to the Recommended 2019–2021 Corporate Plan is being presented to Council for approval. The amendments comprise those requested by the Committee of the Whole and those identified by Administration, which were earlier presented to Committee. Once approved, the amendments will be incorporated in the final 2019-2021 Corporate Plan.

Proposed Motion
That the 2019-2021 Corporate Plan be adopted as amended; and that the 2019 budget be approved, as amended, with revenues of $127,966,639, expenses of $98,136,587 and capital acquisitions of $59,808,538.
 

Background/Analysis
The Municipal Government Act R.S.A. 2000 c M-26 (Financial Administration Part 8) requires a Council to adopt an operating budget and a capital budget for each calendar year. The Act also requires that the budget include estimated amounts needed to provide for the council’s policies and programs and financial obligations. It must also include estimated amounts for sources of revenues and transfers to surplus. Furthermore, a municipality must prepare a written plan respecting its anticipated financial operations for the next 3 financial years and a written plan for anticipated capital property additions over a period of at least the next 5 financial years.
 
The City of Spruce Grove's Corporate Plan provides Council with a comprehensive operational and capital plan and operating and capital budgets for both municipal and utility services. The Corporate Plan is the principal guiding document for governance, community development, and service delivery. The fiscal plan is an integral part of the Corporate Plan. It reflects the financial requirements to support existing services and recommended new initiatives and service changes. The financial requirements include revenue, expenses and tangible capital acquisitions.
Options/Alternatives
Council may make further amendments to the Amended Recommended Corporate Plan. This may delay the production of a final plan, depending on the complexity of the proposed amendments. 
Consultation/Engagement
The Recommended Corporate Plan was prepared with input from residents, Council and Administration.
 
In April, the Committee received public presentations from residents and community groups outlining the priorities they feel are important to consider in preparation of the Corporate Plan.
 
Committee of the Whole reviewed the Recommended Corporate Plan during its meeting on 6, 7 and 8 November 2018.
Implementation/Communication
The plan, once approved by Council, is effective January 1, 2019.
 
Once finalized, the approved Corporate Plan is also published on the City website.
 
A summary of the corporate plan is published in City Pulse early in the new year. The plan is also promoted via social media and online.
Impacts

Fiscal Impact
Financial Implications:
The fiscal plan demonstrates strong stewardship of the City’s financial management in support of providing services and programs to residents, businesses and the surrounding area.
 
  • Committee of the Whole is recommending an increase to municipal property taxes of 3.5 per cent in 2019. An increase to municipal property taxes of 3.5 per cent in 2019 equates to $6.46 per month for a household with an assessed value equal to the median. The property tax increase helps fund ongoing service delivery and maintenance as well as new initiatives and service changes that are not utility or developer related. Ensuring lifecycle maintenance of existing infrastructure, facilities, parks, fleet and equipment, and information systems remains a priority.
  • There is no increase in electric franchise fees in 2019.
  • The corporate plan recommends adopting a more common calculation for natural gas franchise fees that will increase the rate to 35 per cent over a three-year period. The proposed method is based on a percentage of delivery revenue only, rather than the current approach, which uses a combination of delivery revenue and gas cost and is therefore subject to greater volatility. This is the method now used by most municipalities to calculate franchise fees. The change in method will result in a rate of 25 per cent for 2019 and an increase of 5 per cent per year in 2020 and 2021 to reach a maximum rate of 35 per cent. In 2019, this equates to an increase of per month for $3.75 for the typical household. Franchise fees for natural gas are charged by the City to ATCO Gas and Pipelines for the exclusive right to provide natural gas services within the City as well as for access to City lands to construct, maintain and operate related assets. ATCO passes along the cost of the franchise fee to the consumer as a separate charge on natural gas bills.
  • The recommended water and sewer utility rate increase is 6.42 per cent ($0.36 per cubic meter) in 2019 which equates to an increase of $5.04 per month for a household consuming 14 cubic meters of water. The water and sewer utility rate is affected by many external influences including, but not limited to, the Capital Region Parkland Water Services Commission, the Alberta Capital Region Waste Water Commission and the cost of future capital work requirements. The City will continue to work with utility customers by providing water conservation initiatives such as leak detection to help offset rising costs.
  • There is no solid waste rate increase again for 2019, although it is unlikely that this trend will continue in future years. The City has been experiencing external pressures on waste management and a new contract is being negotiated that will likely impact future costs. The solid waste rate is affected by growth in the community and covers the cost of waste collection, including garbage, organics, recycling and new initiatives.
 
The increases recommended in the corporate plan would have an estimated impact on a typical household of $15.25 per month.
 

Attachments
Corporate Plan Amendments

City Council and Committee of the Whole agendas and minutes are posted on the City of Spruce Grove website for information purposes only. These agendas may be changed at the discretion of Council by the addition or deletion of items. Anyone reviewing the draft agenda should do so on the understanding that it is subject to change by Council.

All attachments are in PDF format, and require the Adobe Acrobat Reader plug-in for viewing.

Audio from the most recent City Council and Committee of the Whole meetings are available via podcast on the City of Spruce Grove website.



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