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2016 Administration
Budget
Recommendations
November 13, 2015

Agenda
Strategic Context for Budget
Economic & Financial Conditions
Civic & Utility Operating Budget
Capital Budget

Disclaimer
This presentation has been prepared by City of Regina staff.
It has not been adopted, approved, disapproved, or
otherwise acted upon by City Council.

Strategic Context
Our budget recommendations are guided by:

Official Community Plan Design Regina

Corporate Strategic Plan (2014-17)
Service level standards, including those that are
regulated

They are affected by:

The need to continue to grow our infrastructure

funding
Limited revenue tools at our disposal
Increasing service demands
The need to remain affordable for residents

Reginas Planning Framework

Budget Challenges
Lack of diversity in revenues means the City relies on
property taxes and grants
Aging infrastructure requires increased funding
Community growth creates future infrastructure
liabilities
Rising costs put pressure on current services
Ability to meet resident expectations with available
funding

Infrastructure Challenges
Infrastructure renewal is required to support

Residential streets
Water and wastewater pipes
Recreational facilities
Other buildings

Need to meet regulatory requirements

Budget 2016 Theme

Managing Progress: Doing What Matters Most
Preserving resources for asset management
including for residential roads
Supporting a safe community
Delivering on key community investments
Maintaining existing services and service levels
Maintaining affordability

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City of Regina
Our Environment

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Regina Key Economic Indicators (2006 - 2019)

7.00%

6.00%

4.00%

3.00%

2.00%

1.00%

0.00%

Regina GDP Growth

Regina Unemployment Rate

2019F

2018F

2017F

2016F

2015F

2014

2013

2012

2011

2010

2009

2008

2007

-1.00%
2006

Percentage Growth

5.00%

Building Permits

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Reginas Competitive Tax Increases

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**Winnipeg and Vancouver had no data provided for Two-Storey Houses

Expenditures Per Household

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Provincial Revenue Sharing

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Operating Revenues
RevenueSources2007 2016

TotalRevenue
($M)
$216.2 $230.9 $250.3 $262.2 $280.4 $305.2 $333.1 $362.9 $388.6 $409.6

100%

Transfersfrom
Reserves

90%
80%

%oftotalrevenues

OtherRevenues

GasandElectrical
Revenues

70%

Licenses,Leviesand
Fines

60%
50%

FeesandCharges

40%
30%
20%

GovernmentGrants
andTransfers

10%

Taxation

0%
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Capital Funding Sources 2011-2015

Total Capital Plan $662 million
External Government
Sources
23%

City Own-Source
Funding
77%

Current
Contributions
Reserves
Debentures
Development
Charges
Federal Grant
Provincial Grant
Other

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Capital Funding Sources 2016 - 2020

Total Capital Plan $540 million
Non-City
Sources
13%

City Sources
Current
87%

Contributions
Reserves
Debentures
Development
Charges
Federal Grant
Other

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Projected Reserve Balances

Reserve Balances 2010-2020

140.0

Reserve Balance (000's $)

120.0

100.0

80.0

60.0

40.0

20.0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

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Projected Utility Reserve Balances

Utility Fund Reserve Balances 2010-2020
90,000.0

Reserve Balance (000's $)

80,000.0
70,000.0
60,000.0
50,000.0
40,000.0
30,000.0
20,000.0
10,000.0
2010

2011

2012

2013

2014

2015F

2016F

2017F

2018F

2019F

2020F

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Debt Projections

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Municipal Debt Levels

$12,000

DebtperHousehold

$10,000
$8,000
$6,000
$4,000
$2,000
$
Regina

Saskatoon
2011

2012

Calgary
2013

2014

Edmonton
2015

Winnipeg

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Financial Condition - Sustainability

Indicator
SustainabilityIndicators
RatioofFinancialAssetsto
Liabilities
RatioofNetDebttoTotal
Revenue
TotalDebtPerHousehold

2010

2011

2012

2013

2015
2016
2014 Forecast Budget

1.11

1.25

1.31

1.44

1.10

n/a

n/a

0.21
$1,314

0.18
$1,081

0.15
$980

0.13
$928

0.34
$2,742

0.35
$2,737

0.34
$2,667

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Financial Condition Flexibility

Indicators
FlexibilityIndicators
RatioofDebtChargestoTotal
Revenue
MunicipalTaxesas%of
HouseholdIncome
RatioofTotalMunicipalRevenue
toTaxableAssessment

2010

2011

2012

2013

2015
2016
2014 Forecast Budget

0.01

0.01

0.01

0.01

0.01

0.01

0.01

2.15%

2.19%

2.24%

2.36%

2.66%

2.38%

2.45%

0.02

0.03

0.03

0.01 0.03

0.03

0.03

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Financial Condition Vulnerability

Indicator

VulnerabilityIndicator
RatioofGovernmentTransfersto
TotalRevenue

2010

2011

2012

2013

2015
2016
2014 Forecast Budget

0.20

0.14

0.14

0.13

0.13

0.13

0.13

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Summary
Reginas current financial condition is relatively stable
Heading in the right direction, BUT
we are not fully funding our long-term service costs

Administrations approach to budget development

considers:
Importance of maintaining affordable services
Expectation that we will strengthen the Citys financial condition
Maintain service levels

Unknowns that could affect our ability to sustain current

service levels:
Asset condition
Succession planning

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Budget Process
Call for budget estimates May 2015
Cross divisional team review
Recommendation to Executive Leadership Team
(ELT)
Citizen Budget Tool
ELT recommended 2016 Budget to Council
Public debate December 7, 2015
Council final approval

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Citizen Budget Tool

Open from October 13 to November 3
1,692 visitors and 200 responses (203% increase)
Increase investment:
Roadways & Transportation
Infrastructure and Parks & Open Space
Maintain investment:
Community Investment
Slight reduction in all other areas
Average mill rate increase of 3.45%

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Budget Book Updates

Expanded information to reflect best practice
and increased transparency
General Fund
Utility Fund
Costing Fund

Information on all costs and FTEs allocated to

each fund

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Performance Reporting
Operational performance now being reported in
budget
Comparisons to Ontario Municipal
Benchmarking Initiatives (OMBI) data in select
areas
This will continue to grow as we launch our
participation in OMBI

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2016 General Operating Budget

Recommendations

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2016 Budget at a Glance

Maintains service levels and minimize risks
2.9% tax increase plus 1% dedicated to
residential road renewal
1% ($1.8M) approved by Council per year for 5
years (2015-2019)

Tax supported permanent FTE growth 17.15

2016 Budget at a Glance

Key investments:
Strengthening front line police services
Record funding levels for snow clearing and road
infrastructure
5-year capital plan is the largest ever -- $1.08
billion
Landfill Gas to Energy Project to become
operational in 2016
Drainage system upgrades to reduce flooding

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Revenue Sources ($000s)

GasandElectrical
Revenues
$43,010
10%

OtherRevenues
$39,270
9%

ReginaPoliceService
$9,156
2%

Taxation
$205,068
49%
Feesand
Charges
$64,083
15%

GovernmentGrants
andTransfers
$43,935
11%

Licences,Leviesand
Fines
$14,282
4%

Total Revenue
$419 Million

2016 General Operating Expenses

2016 Budget
($000's)

Salaries & Benefits

158,615.0

Office & Administrative Expenses

7,509.4

Professional & External Services

29,423.6

Materials, Goods & Supplies

7,530.5

Utilities and Other Costs

16,440.6

Intra-Municipal Services

40,036.4
Civic Operating Costs

259,555.5

Community Investment

11,189.6

Allocation to Capital

51,209.3

Transfers to Reserves

16,010.7
Civic Other Expenditures

Total Civic Expenditures

Regina Police Service
Total General Operating Expenditures

78,409.6
337,965.1
80,837.8

$ 418,802.9

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FTE Additions for 2016

Tax Supported FTEs 26.15

Fee Supported FTEs 17.3

Permanent

17.15

Permanent

Temporary

9.0

Total Civic FTE 43.45

Police FTE increase 11.0
Total = 54.45

17.3

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2016 Utility Operating Budget

Recommendations

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Utility Budget Highlights

Investments in both Capital and Operating focused on
meeting service levels
Continuing to focus on system-wide improvements
Wastewater Treatment Plant
Long-term sewer trunk relief strategy

Continuing to address key drainage issues

6% Utility rate increase (2016 and 2017)

Average customer increase of just over $8.25/month

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Utility Cost Comparisons for Average

Household (2015)
Regina

Calgary

Edmonton

Saskatoon

Winnipeg

Total Annual Water

882.00

829.43

750.79

389.81

522.00

Total Annual Wastewater

659.01

646.63

734.32

240.62

820.80

Annual Drainage
Infrastructure Levy

175.20

133.35

Total Annual Utility

Charges

$1,716.21

$1,609.41

423.29

243.61

$1,908.40

$ 874.04

1
Note : Saskatoons infrastructure levy is not specific to the drainage infrastructure.

$1,342.80

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2016 Utility Operating Revenue

WaterRevenue
$61,633 49%

Total Revenue
$126 Million

Wastewater
Revenue
$47,105 37%
OtherRevenues
$1,650 1%
DrainageInfrastructureLevy $15,488
12%

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2016 Utility Operating Expenses

2016 Budget
($000's)
Expenditures
Salaries & Benefits

16,556.0

Office & Administrative Expenses

1,058.2

Professional & External Services

8,883.7

Materials, Goods & Supplies

3,080.9

Utilities and Other Costs

12,933.7

Intra-Municipal Services

24,949.9
Utility Operating Costs

Debt Servicing

67,462.4
1,402.3

Total Utility Operating Expenditures

$ 68,864.7

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2016 Capital Budget

Recommendations

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Highlights
Non-tax revenue sources like Service Agreement Fees
provide needed capital funds and have a positive
effect on taxation levels
Large, multi-year capital projects in this budget that
anticipate funding commitments in 2016 and future
periods

Proposed Five Year Capital Plan

Summary of Five Year Capital Plan ($000's)
2016

2017

2018

2019

2020

Five Year Total

132,727.5

119,361.2

135,482.6

78,945.3

73,516.9

540,033.5

Police Capital

2,747.0

3,036.9

3,057.9

3,223.3

3,261.0

15,326.1

Utility Capital

127,775.0

92,466.3

100,635.9

103,356.4

101,076.4

525,309.9

Total Expenditures

263,249.5

214,864.3

239,176.4

185,525.0

177,854.3

1,080,669.5

37,067.2

38,179.3

39,324.6

40,504.4

41,719.5

196,795.0

Current Contributions (Police)

2,747.0

3,036.9

3,057.9

3,223.3

3,261.0

15,326.1

Current Contributions (Utility)

General Capital

Funding Sources:
Current Contributions (General)

Debt

50.0

50.0

100.0

12,859.0

2,500.0

2,500.0

2,500.0

2,500.0

22,859.0

104,834.9

102,998.9

102,891.0

85,404.5

79,008.0

475,137.3

Government Grants *

63,248.8

16,233.8

15,833.1

14,563.1

11,088.0

120,966.7

Development Charges **

16,850.5

36,147.3

39,968.0

38,413.8

36,831.8

168,211.3

Third Party Funding ***

25,642.1

15,718.3

35,551.8

3,446.0

81,274.1

263,249.5

214,864.3

239,176.4

Reserves

Total Funding

916.0
185,525.0

* Government Grants includes Gas Tax, Building Canada Plan and P3 Federal Funding
** Development Charges Includes Servicing Agreement fees for Parks, Roadways and Utilities
*** Third Party Funding Includes funding from Private Sports Groups, Special Project Funding and Moose Jaw

177,854.3

1,080,669.5

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Summary
The recommended 2016 budget maintains Reginas property
taxes as one of the lowest in Canada
The recommended 2016 budget maintains existing services and
service levels, with enhancements that reflect priority areas
identified by Council
2016 Budget supports:
Maintaining programs and services at 2015 levels
Progress on the Citys largest ever five-year capital plan
Fixing more residential streets via a dedicated tax levy
Supporting a safe community with the addition of 8 new
officers at the Regina Police Service

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Summary
2016 Budget supports:
Improving transit service
Partnering with the University of Regina on the Upass
program - increase transit frequency and capacity on key
transit routes
Record level investment for snow clearing ($9.1 million )
Continuing to focus on improving sewer and drainage service

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Public Input & Information

Interested members of the public are encouraged
to get involved:
- Provide feedback to their Councillor
- Appear before Council as a special delegation on
December 7, 2015
- Note that the Citizen Budget Tool will remain live
indefinitely for educational purposes with results
reviewed regularly.

Visit: Regina.ca

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Thank you