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RFD- 3970 Business Items   Item #   11. a.    
Regular Council Meeting Agenda
Meeting Date: 05/11/2020  
Title:    2020 Budget Re-allocation - COVID-19 - Boje
Department: Corporate Services  
Strategic Vision Element: Related Goal:

Information
Request for Decision Summary
Given the current economic and financial climate, a proposal is being brought forward for Council's consideration that will reduce Council's 2020 expense budget by one-third, and maintain Council's 2020 salary and the 2020 Library budget at 2019 levels. 

Proposed Motion
 
That the 2020 salary increase and Cost of Living Allowance increase for Mayor and Councillors be suspended effective May 4, 2020.
 
That the 2020 budget for Travel and Subsistence for Mayor and Council be reduced by one-third. 
  
That the 2020 allocation to the Spruce Grove Library remain at the 2019 funding level of $924,467 to align with COVID-19 overall municipal spending.
Background/Analysis
Council Remuneration

A Task Force on Council Remuneration was appointed in 2015 to review and make recommendations concerning the total compensation package provided to elected officials of the City of Spruce Grove for the 2017-2021 Council term. An annual increase of 3% plus the Cost of Living Allowance increase provided to Administration was approved at that time. A proposal has been brought forward to suspend the 3% salary increase provided in 2020, thus reducing the remaining Council remuneration to that which was provided in 2019. It is recommended that the salary increase be suspended effective May 4, 2020 to align with the current pay period structure. 

Council Expense Budget

Due to the restrictive nature of the COVID -19 protocols, Travel & Subsistence spending will be reduced for the year 2020.  It is therefore recommended that Council Travel and Subsistence budget be reduced to reflect this change.

Library Allocation

Council direction to reduce the municipal revenue requirement from an increase of 3.9% to 0% has resulted in maintaining overall municipal spending at 2019 levels.  To align with this change, it is recommended that the library grant allocation for 2020 be maintained at the 2019 level.
Options/Alternatives
Council could choose to leave all proposed budgets as previously approved in the 2020 budget.
Consultation/Engagement
n/a
Implementation/Communication
Once approved, re-allocations will be made within the 2020 budget to reflect these changes.

Correspondence to the Library Board will be drafted for Council communication.
Impacts
n/a

Fiscal Impact
Financial Implications:
Position 2019 Annual Remuneration 2020 - 3% increase 2020 COLA  - 0% 2020 Annual Remuneration
Mayor 105,009.61 3,150.29      - 108,159.90
Councillor   46,770.33 1,403.11      - 48,173.44

The overall annual increase for Mayor and Council would therefore have been $11,569.  Reducing this for the remaining eight months of 2020 will provide a savings of $7,713.

Mayor and Councillor budgets for Travel and Subsistence in 2020 totaled $136,393.  Reducing them by one third will provide a savings of $45,419.

The approved Library grant allocation for 2020 was $961,448.  Reducing this to the 2019 funding level of $924,467 will provide a savings of $36,981.

Total overall budget re-allocations from these resolutions will be $90,113.
Attachments
No file(s) attached.

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