City of Brandon 2013 Preliminary

Budget December 12, 2012

Dean Hammond

Treasurer and GM of Corporate Services

Agenda 1. Budget Overview

• Revenues • Service Deliverables • Debt • Reserves • 2013 Capital Projects • Mill Rate and Tax example

2. Efficiencies • 3% Goal • Human Resource Planning • 2013 Salaries & Headcount

3. Recap of budget roundtable 4. Public Input 5. Budget next steps & Council Deliberations

Budget Process

• Budget Preparation began this summer

• Meetings with Council

• 2013 Hurts & Helps

• Expense Control

• Salaries

• 3% Goal

• Budget Mandate

Budget Overview

• 2013 Operating Budget $72.2 million

• 2013 Utilities Budget $18.1 million

• The operating budget is funded by grants, revenues, and tax levies.

• The utility budget is funded by water rates.

55.0%

10.7%

12.1%

11.2%

6.8% 4.2% Property Taxes

User Fees and Sales ofGoods

UnconditionalGovernment Transfers

ConditionalGovernment Transfers

Other Income

Permits, Licenses andFines

Revenues - $72.2 million

Services Delivered - $72.2 million

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

Protective Services

Infrastructure

Support Services

Recreation, Culture,Parks, & Youth

Transit

Sanitation &Environment

Growth, EconomicDevelopment, &Affordable Housing

Services Delivered - Comparison

32.2%

24.3%

12.8%

9.8%

6.8% 6.4% 7.7%

36.2%

23.8%

11.3% 10.3%

6.8% 6.1% 5.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

ProtectiveServices

Infrastructure SupportServices

Recreation,Culture, Parks,

& Youth

Transit Sanitation &Environment

Growth,Economic

Development,& Affordable

Housing

2012 2013

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Police Service $14.9mm

- Fire Service $5.3mm

- Ambulance Service $3.3mm

- E911 Call Center $1.3mm

- Police Dispatch $1.1mm

- Emergency Coordination

$267k

Protective Services - $26.2mm

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Engineering $4.0mm - Building Maintenance $3.0mm - Street Maintenance $2.5mm - Property Admin $1.8mm - Street Lights $1.2mm - Street Resurfacing $1.1mm - Snow Removal $979k - Fleet Maintenance $864k - Airport $519k - Sewers & Drainage $300k

Infrastructure- $17.2mm

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Information Technology $2.8mm

- Human Resources $1.4mm

- Clerks & Records $1.2mm

- Treasury $1.0mm

- Operations Admin $746k

- City Manager & Communications $412k

- All Other $503k

Support Services- $8.2mm

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Parks Operations $2.1mm - Sportsplex $2.0mm - Community & Youth Initiatives

$891k - Rec Centre Golf Course $653k - YMCA Contribution & Outdoor

Pools $603k - Cemetery $501k - Green Areas / Weed Control

$295k - Centennial Auditorium $166k - Heritage Administration $83k - Skating Oval $69k - Andrews Field $33k - Other $105k

Recreation, Culture, Parks, & Youth- 7.4$mm

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Transit Operations $4.0mm

- Handi Transit $431k

- Transit Equipment & Transit

Comfort Station $535k

Transit $4.9mm

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Recycling Operations $1.7mm

- Refuse Collection $1.3mm

- Landfill Operations $1.1mm

- Environmental Initiatives

$204k

Sanitation $4.4mm

36.2%

23.8%

11.3%

10.3%

6.8%

6.1% 5.5%

- Building Safety $994k - Planning & Development

$954k - Tourism Initiatives $398k - Economic Development $379k - Long-Term Grants $325k - Residence Assistance $267k - Urban Renewal $250k - Housing Initiatives $220k - Grants Review Committee

$192k

Growth, Economic Development, & Affordable Housing $4.0mm

Debt Position

• Outstanding debt drops from $45.5 million to $43.4 million in 2013 (-4.7%)

• Debt payments increase from $3.1 million to $3.3 million (+6.1%)

• Two Utility debts dropped off in 2012

• Police Station payment added in 2013

• Overall debt position is quite conservative

Reserves

• Total reserve appropriations increase from $9.0 million to $10.1 million in 2013 (+11.8%)

• 2010 Surplus has been applied to reserves

• Reserve balances in good shape

2013 Capital Projects - $31.2mm

• Debt Supported $9.6mm

• Funded $2.1mm

• Reserve Funded $14.7mm

• Tax Funded $1.3mm

• Utility Funded $900k

• Utility Reserve Funded $2.6mm

Mill Rate Impact

2012 2013 Change Change %

Assessed Value - Land $ 50,000 $ 50,000 $ - 0%

Assessed Value - Structures $ 150,000 $ 150,000 $ - 0%

Assessed Value - Total $ 200,000 $ 200,000 $ - 0%

Portioning @ 45% $ 90,000 $ 90,000 $ - 0%

Mill Rate (per $1,000) 19.07 19.45 0.38 1.99%

Municipal Tax Levy $ 1,716.30 $ 1,750.50 $34.20 1.99%

Efficiencies – 3% Goal

All Departments tasked with finding:

• A 3% Sustainable Increase in Revenues

• A 3% Sustainable Reduction in Expenses

• …Or Combination of Both

Efficiencies – Protective Services • Overtime Focus

• Four new funded positions will reduce Overtime requirements in Fire / Ambulance

• 2013 Police Overtime held to four year historical low

• New Police Station • Much more efficient workflow

• New Revenues • Property Forfeiture Act

• RCMP Lease

• Lobby Federal Government for weapons trade in

• Lobby Province for indexing for current funded positions

• MPI has Funded an Automated License Plate Reader

Efficiencies – Infrastructure

• Equipment

• Purchase blades for our own equipment rather than renting

• Landfill – Replace high maintenance scraper with backhoe and truck (which can also be used at Streets and Roads)

• Parking Meters – Replace with automated units which reduce downtime

• Increased focus on Fleet Maintenance Overtime

Efficiencies – Support Services

• Technology – One Time Savings

• Server Upgrades- $213k

• Wireless Contracts - $58k

• Technology – Ongoing Savings

• Licensing Contracts - $50k

• Wireless devices and phones - $9k

• Internet Contracts and Printer Consolidation - $5k

Efficiencies – Support Services

• People

• Continue to bring more Labour Relations in House - $130k

• Reduction in WCB premiums due to Safety Focus - $50k

• Reduce Purchasing FTE from 4.5 to 4.0

• Bring a greater share of Employee Training & Development in House

Efficiencies – Recreation, Culture, Parks, & Youth

• Revenues

• Focus on Columbarium sales at Cemetery

• Focus on increasing Sportsplex programming revenues

• Focus on increasing Sportsplex canteen revenues

• People

• Salaries & Overtime for events outside of normal hours

Efficiencies – Transit

• Revenues

• Focus on Bus Advertising Revenues

• People

• Focus on Overtime

• Equipment

• Smart Card data collection create labour efficiencies and allow for superior analytics

Efficiencies – Growth, Economic Development, & Affordable Housing

• Revenues

• Vacant Building Permits

• Consultants

• Bring Secondary Plan Development in House

• Bring Infrastructure Development Plan in House

• Development

• Speed up Approval process so as to bring new tax revenues online more quickly

Human Resources Planning Meeting Current Needs…

• Vacancy Management Review Process

• Performance Management

• Looking at Comparators

• Org Charts

• Budgeting Appropriately using Salaries Module

• Protective Services

Brandon Police Service

Human Resources Planning

Looking at Future Needs…

• Talent Reviews

• Succession Planning

• Retirement Planning

• Five Employee Relations Committees

435.8 442.8 448.8 461.3 465.3

475.8 485.8

497.8 508.8 515.8

1.6%

1.4%

2.8%

0.9%

2.3%

2.1%

2.5%

2.2%

1.4%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

0

25

50

75

100

125

150

175

200

225

250

275

300

325

350

375

400

425

450

475

500

525

550

% C

han

ge Y

ear

Ove

r Ye

ar

# o

f Pe

rmen

ent

Staf

f City of Brandon Permanent Staff Complement

Year over Year Percentage Growth in Permanent Staff is 1.89%, Consistent with

our annual Change in Assessment Growth

10.91 10.96

10.81 10.87

10.74

10.75 10.76 10.81 10.87

10.84

10.00

10.25

10.50

10.75

11.00

11.25

11.50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Projected

# o

f Pe

rman

ent

Staf

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er 1

,00

0 R

esid

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ts

City of Brandon Permanent Staff per 1,000 Residents

47.1% 46.2% 48.3% 47.8% 49.1% 48.1% 48.5% 47.0% 47.7%

52.9% 51.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

City of Brandon Salaries & Wages as a Percentage of Total Budget

Key Take-Aways & Priorities

• We are focused on aggressively managing our % of salaries versus total budget

• We have solid processes and initiatives in place to control all aspects of our HR strategy

• We have a strong capable management team that will be held accountable for performance

• We have updated and are more consistently applying internal policies

• We have a lot of work ahead of us but have a solid strategy moving forward

Recap of Budget Round Table

• Councillor Jan Chaboyer (Green Acres)

• Councillor Len Isleifson (Riverview)

For Perspective… In 2013, if Your Home is Assessed at… $ 228,506

You Would Pay Municipal Tax of… $ 2,000 You Would Pay School Division Tax of… $ 1,581 * You Would Receive a Home Owner Grant of… $ (700) ** For a Total Tax Payable of… $ 2,881

And Your $2,000 in Municipal Taxes Would Go Towards… Protective Services $ 725 36.2% Infrastructure $ 475 23.8% Support Services $ 226 11.3% Recreation, Culture, Parks, & Youth $ 206 10.3% Transit $ 137 6.8% Sanitation & Environment $ 121 6.1% Growth, Economic Development, & Affordable Housing $ 110 5.5%

$ 2,000 100.0% * Based on 2012 School Division Mill Rate ** If You Are the Principle Resident

Next Steps

• 2013 Budget Public Consultation – December 12

• (7:30pm Main Foyer, City Hall)

• Compilation of Budget Round Table Data

• Council Deliberations – January 11 & 12