2020 proposed operation budget section 15 - financial services · contracted services increased...

The subsequent pages will provide information on the department’s budget, and 2020 operating budget requests.

BUDGET2020 FINANCIAL SERVICES

Financial Services, under the guidance of the Chief Financial Officer, is responsible for all aspects of the City’s financial management, including budgeting, investment, planning, record keeping and purchasing. The department also processes and oversees the utility and tax accounts. Financial Services supports all municipal departments and residents by ensuring the City has the financial means to fund ongoing and new programs and initiatives to meet the needs of our growing community. The department provides the financial services, processes, policies and procedures required to ensure the City is fiscally sound and is accountable and transparent in the management of public funds.

2020 Operating Budget DeliberationsNovember 18, 2019

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Notes Programs2019 Approved

Budget

2020 Proposed

BudgetVariance

1 Property Assessment and Assessment Roll Changes 239,981$ 321,803$ 81,822$

Property Tax Rates, Annual and Supplementary Property Taxes, Tax

Arrears and Tax Recovery(224,090) (222,464) 1,626

2 Accounting Services and Treasury Management (760,299) (804,704) (44,405)

Financial Accounting, Reporting, Compliance and Controls 243,351 241,433 (1,918)

3 Accounts Payable 162,051 150,456 (11,595)

Accounts Receivable 303,717 304,559 842

Tangible Capital Asset Management 95,457 95,801 344

4 Operating Budget and 3 Year Financial Planning Operating Forecasts 211,033 224,601 13,568

Capital Budget and 10 Year Capital Plan 147,619 147,656 37

Utility Billing Services 456,264$ 457,189$ 925$

1 Property Assessment and Assessment Roll Changes

Increase in Capital Region Assessment Services Commission costs 81,580$

2 Accounting Services and Treasury Management

Increase in current bank account interest (44,405)$

3 Accounts Payable

Trade rebate on purchases (12,000)$

4 Operating Budget and 3 Year Financial Planning Operating

Priority Based Budgeting (12-0187, pg. 15-11) 13,400$

Programs We Manage

Financial Services

Program costs include both revenue and expenses.

Significant Adjustment Notes


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Notes Programs2019 Approved

Budget2020 Proposed

Budget

1 Reserve Transfers $ 6,461,854 $ 6,257,177

Variance

$ (204,677)

2 Annual Capital Funding 1,173,700 1,531,700 358,000

3 Library Grant 1,222,000 1,253,000 31,000

Office Supply and Furnishings Management 326,513 326,433 (80)

City Memberships 79,680 79,680 -

4 Property Tax & Requisition (47,020,154) (48,338,748) (1,318,594)

Internal Allocations - - -

Debt Management 4,552,108 4,557,046$ 4,938$ $

1 Reserve Transfers2020 transfers from reserves for one-time projects (1,442,123)$

850,143Removed 2019 transfer from reserves for one-time projects $ Infrastructure Lifecycle Reserves Contribution Increase (12-0161, pg. 24-5) 324,565$ Increase for interest allocation to capital reserves 63,000$

2 Annual Capital Funding300,000$

58,000$

3 Library GrantFort Saskatchewan Public Library Appropriation 31,000$

4 Property Tax & Requisition 2020 projected property assessment growth (1,116,000)$ Annexation - Municipal Services (61-0054, pg. 05-13) (202,594)$

Neighbourhood Rehabilitation Project operating impact (19008); inflation

Program costs include both revenue and expenses.

Programs We Manage

Fiscal Services

Significant Adjustment Notes

Neighbourhood Rehabilitation Project operating impact (19008); reduced reliance on MSI capital grant


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Notes

Operating ExpensesSalaries, Wages, and Benefits $ 1,290,953 $ 1,290,653 $ (300)Contracted Services 48,799 57,336 8,537 1

Materials and Supplies 1,700 1,700 2

Advertising and Printing 1,250 1,250 2

Training and Development 34,045 31,718 (2,327) 2

General Administration 7,260 11,700 4,440 2

Total Operating Expenses 1,381,057 1,394,357 13,300Other Items

Transfers from Reserves (13,400) (13,400) 3

Total Other Items - (13,400) (13,400)Net (Surplus)/Deficit $ 1,381,057 $ 1,380,957 $ (100)

Notes For Changes

Note 1:

Note 2:Note 3:

Financial Services2020 Proposed Operating Budget

Contracted Services increased $13k due to phase II of Priority Based Budgeting (12-0187, pg. 15-11). This is offset by a $5k reduction due to budget reallocation.

Transfers from Reserves increased due to one time funding for phase II of Priority Based Budgeting (12-0187, pg. 15-11).

2020Proposed

Budget$ Change

2020

Budget reallocations to align costs with actual trends

BaseBudget


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Notes

Operating RevenueProperty Taxes $ 47,020,154 $ 48,338,748 $ 1,318,594 1Fines and Penalties 262,500 262,500 - User Fees & Charges 221,136 221,136 - Investment Income 1,214,400 1,257,000 42,600 2

Other Revenue - 12,000 12,000 3

Total Operating Revenue 48,718,190 50,091,384 1,373,194Operating Expenses

Salaries, Wages, and Benefits (709,000) (709,000) -Purchases from Other Governments and Agencies 335,720 417,300 81,580 4

Contracted Services 44,925 44,925 -Community Grants and Programs 1,222,000 1,395,041 173,041 5

Interest on Long Term Debt 1,160,313 1,075,307 (85,006) 6

Service Maintenance Contracts 900 900 -Other Expenses 123,200 123,200 -

Total Operating Expenses 2,178,058 2,347,673 169,615Other Items

Repayment of Long Term Debt 2,330,773 2,420,717 89,944 6

Annual Capital Funding 1,173,700 1,531,700 358,000 7

Transfers to Reserves 2,026,568 1,842,039 (184,529) 8

Internal Allocations Between Funds (105,500) (42,500) 63,000 9

Total Other Items 5,425,541 5,751,956 326,415Net (Surplus)/Deficit $ (41,114,591) $ (41,991,755) $ (877,164)

Notes For Changes

Note 5:

Note 6:Note 7:Note 8:

Note 9:

Increased due to centralization of Non-Profit Organization Grants ($142k) to Fiscal Services's budget. Also, included is the Fort Saskatchewan Public Library annual apporopriation; for 2020 an additional $31k is being requested.

Transfer to Reserves decreased due to the 2019 additional assessment revenue gro wth ($271k) which was realized at the time of the 2019 Property Tax Bylaw. Also, included is an increase of $87k for interest allocation to the capital reserves.

Changed due to internal transfer of interest revenue earned on Utility reserve balance to Utility Fund.

Increased due to capital impact of Neighbourhood Rehabilitation project (19008).Reallocation of principal and interest amounts to match debenture payment schedule.

Fiscal Services2020 Proposed Operating Budget

2020Proposed

Budget

2020Base

Budget$ Change

Note 1: Property taxes increased due to projected assessment tax growth and Annexation - Municipal Services (61-0054, pg.05-13)Note 2: Investment income increased $42k due to forecasted interest earned on bank balance.Note 3: Other Revenue increased $12k due to forecasted rebates on purchases.Note 4: Purchased from Other Governments increased due to an increase in the number of property assessments and increase

in contract service fees from the Capital Region Assessment Services Commission (CRASC).


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12-0187 – Priority Based Budgeting Financial Services

Type of request: Ongoing initiative; One-time request

Challenge/community need:

The City has adopted Priority Based Budgeting (PBB), a leading best practice for local government, which requires web-based applications for developing program inventories, program costing, prioritizing services and analyzing data. The license for this web-based application requires renewal.

Initiative description:

This initiative will provide resources for annual support for Priority Based Budgeting and resources to implement Priority Based Budgeting phase II.

Alignment

Department Business Plan:

Goal 3— Support decision-making and long-term financial planning by providing meaningful information to stakeholders

2018 – 2022 City of Fort Saskatchewan Strategic Plan:

Excellence in Government—Continuous improvement, constantly looking for ways to improve our services through planning, innovation, collaboration and consultation.

Program costing:

Corporate Application Support

Operating Budget and 3 Year Financial Planning Operating Forecasts

Other City reports, plans or studies: N/A

Financial Information

Cost: $40,000 ($26,600-ongoing annual support; $13,400-onetime Phase II implementation)

Funding source: $26,600 - Property Tax Revenue; $13,400 - Financial Stabilization Reserve


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Future operating impacts: Future budgets will maintain annual support at this level.

Budget analysis:

No reoccurring surplusses exist to support this initiative, and there are no other services or activities that can be eliminated to provide a source of funding

Service Level Impacts

Other City departments impacted by the initiative:

PBB web-based application enables City departments to fulfill their programs.

Service level comparison:

Many municipalities have adopted Priority Based Budgeting to ensure resources are allocated to the programs and services that provide the greatest value to residents.


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2020 proposed operation budget section 15 - financial services · contracted services increased...

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