report for city council september 17, 2008...

Organizational Performance – June 30, 2008

Recommendation:1. That the illustrative non-financial

performance measures continue to be reported for the remainder of 2008, and in 2009 be amalgamated into a report that reflects performance against the 10-year strategic plan.

2. That available one-time revenues be allocated to deal with the following issues as outlined in Attachment 3 of the August 28, 2008, Finance and Treasury Department/Deputy City Manager’s Office report 2008FTF002:a. That $0.16 million be approved for

the Paskin House with funding from the unallocated education tax room.

b. That $0.856 million be approved for the Century Place Power Generator project with funding to come from the unallocated 2007 operating surplus and the unallocated education tax room.

c. That $0.25 million be approved to top-up the Omega System project with funding from the unallocated 2007 operating surplus.

d. That $0.19 million be approved for the Lois Hole Library project with funding to come from the tax-supported debt reserve.

3. That the Financial Stabilization Reserve be used to fund emergent overages in transit fuel price escalations and additional winter road maintenance, if required.

Report SummaryThis report provides a review of organizational performance for the City of Edmonton. Included are the operating and capital financial results and projections as at June 30, 2008, along with illustrative non-financial performance measures to broaden the report in response to Council’s desire for enhanced transparency and accountability in reporting.

Report This report provides a summary of

the preliminary financial performance followed by illustrative non-financial performance information. This is the fourth report presented to City Council.

Attachment 1 provides an update to the December 31, 2007, report on illustrative civic and corporate wellness measures (Tier 1 measures), and provides a corporate financial summary for the 2008 operating and capital results and projections.

Attachment 2 outlines illustrative operational performance measures (Tier 3 measures), both financial and non-financial, at a department level.

The organizational changes announced earlier in the year are reflected in the June reporting, with the exception of all aspects of the Capital Construction department, Office of the City Clerk reporting to Corporate Services and the Communications Branch reporting to the Office of the Deputy City

ROUTING – City Council | DELEGATION - J. Tustian/C.Warnock/R. Rosychuk/C. Engelking/D. WiltseWRITTEN BY – S. McDougald/C. Ford/D.Kotun | August 28, 2008 – Finance and Treasury Department/Deputy City Manager’s Office 2008FTF002 of 3

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Manager. These changes are underway and will be reflected once reporting changes are complete.

Financial Performance Tax-supported operations

As of June 30, 2008, tax-supported operations are projecting a $12.6 million shortfall or 0.8% of 2008 budgeted expenditures. Factors making up the variance are outlined on page seven of Attachment 1. Variances arise primarily from additional expenditures for escalating fuel costs in Transit, one-time fit up of new leased space, late spring storms, reduced net investment earnings and debt repayments in advance of long-term utility savings for the ME First! program. These negative variances are partially offset by a one-time special dividend from WCB, increased parking revenue and recoveries, and gas franchise fees.

Going forward, July results and projections appear to show a further deterioration, with slow downs in permit revenues and increases to tax appeals. Administration is addressing strategies to balance the current year-end position and will continue to monitor through the third quarter as more complete information becomes available. One strategy recommended by Administration is that a portion of the Financial Stabilization Reserve (FSR) be used to fund the emergent transit fuel price variance and additional winter road maintenance costs. Such use is consistent with the FSR which was established to address significant emergent

financial issues on a transitional basis.

In addition, strategies to address the remaining shortfall are being considered and may include deferral of expenditures and reduction of spending where front-line services will not be directly impacted. On-going trends are being identified for consideration in the development of the 2009 budget.

Attachment 1 includes the projected operating and capital year-end variance by department as of June 30, 2008.

Enterprise and Utility Operations Mobile Equipment Services is projecting to end the year with an unfavourable net variance of $5.2 million, mostly attributed to escalating fuel costs. Strategies to address this projected short-fall are being determined.

Drainage Services is projecting a year-end favourable variance of $8.0 million as a result of higher recoveries, lower financial expenses and higher revenues from customer growth and strong economic conditions. $5.8 million is attributed from the sanitary utility and $2.2 million within land drainage

Land Enterprise is projecting at this time to end the year on budget.

Capital Expenditures As of June 30, 2008, the consolidated capital expenditures are expected to be $1,416.7 million expenditures against a budget of $1,514.3 million, a variance of $97.6

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million or 6.4%. For departments that directly report to the City Manager (all departments, except Police Services, Edmonton Public Library and Edmonton Economic Development Corporation) a performance target of 80% of planned capital expenditures has been set in the City Manager’s PCP for 2008.

Attachment 2 outlines the operating and capital variances by program as of June 30, 2008.

2008 Financial One-time Issues During the year one-time financial opportunities and challenges arise on an on-going basis. In an effort to reduce the number of one-off requests being brought forward to City Council for consideration, Administration would like to introduce a new process to provide recommendations of this nature for final decision making along with quarterly performance reporting. Only urgent requests would fall outside of this cycle.

Operating and capital funding requests and decisions are made within the normal budget cycle wherever possible. This process is limited to those one-time challenges and opportunities that can be acted upon, are needed urgently and can be resolved with the allocation of one-time funds.

Attachment 3 provides information on the current 2008 financial one-time issues, including a brief description, rationale and funding source for items recommended for City Council approval.

Ed Tel Endowment Fund The Ed Tel Endowment Fund regular and special dividends for 2009 are determined by the fund value as of June 30, 2008. Based on the June 30, 2008 fund value, the regular dividend for 2009 will be $35 million; however a special dividend will not be available.

Risks The following operating risks may impact the 2008 results:

2008 has seen significant volatility in investment earnings and fuel prices which may impact results further.

Winter road maintenance expenditures are weather dependent and difficult to predict.

The 2008 budget for corporate expenditures includes $2.5 million of savings to be identified within tax-supported operations. Strategies are still being developed.

Additional tax appeals have been raised in 2008. Results of the appeals are unknown at this time. The budget for appeals has been reduced over the last two annual budgets.

Illustrative Non-financial Performance Illustrative Overall Civic/Corporate

Wellness Measures (Tier 1)Tier 1 illustrative civic and corporate wellness measures are reported annually. Year-end data for a number of measures was not available at December 31, 2007. The December 2007 report

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(Attachment 1) has been updated to reflect 2007 data now available.

Illustrative Strategic Performance Measures (Tier 2)Measures are reported annually and are not included in this report.

Illustrative Operational Performance Measures (Tier 3) 1 , 2 Operational measures reflect efficiency and effectiveness measures by department and/or program area.

There are 67 illustrative operational measures. Of these:

• Seventeen (25%) measures were removed and eight (12%) measures were added that better reflect operational performance at this level. For instance, in response to comments on the December 31, 2007 report, a number of these were removed and added from the Transportation Department’s reporting.

• Measures were regrouped under the new organizational structure.

• Performance for 15 (23%) measures is not reported on; of these 13 (20%) only have annual results. The other two measures will be available in the third quarter report.

• For measures significantly above or below baseline performance explanations are included in Attachment 2 where these variances occur.

1 Post censual data used for all measures involving population.2 For financial measures inflation is from departmental business plans unless otherwise specified.

• Management action for non-financial organizational performance less than 50 percent are identified in the variance explanation.

Planned Management ActionsThe Deputy City Manager’s Office will work to transform the current reporting of non-financial performance measures to align with the City Strategy starting in 2009.

PolicyFinance and Treasury/Deputy City Manager’s Office Department report 2008FTF002 forms part of the reporting requirements outlined in the Municipal Government Act.

Focus AreaThe report contributes to the governance outcome area, specifically the building organizational capacity focus area.

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Justification of Recommendation1. On July 9, 2008, Council approved

their 10-year Strategic Plan, outlining 10-year goals with progress indicators, and 3-year priority goals. Reporting organizational performance against the Strategic Plan progress measures will provide Council with a comprehensive picture of how well the City is achieving its vision.

2. Allocation of the available one-time funding will resolve a number of outstanding issues and allow some capital projects to proceed.

3. Approval to use the Financial Stabilization Reserve to fund the emergent financial issues relating to the transit fuel price escalations and additional winter road maintenance will provide a funding strategy to address a portion of the deficit, if required.

Attachments1. Civic and Corporate Wellness

Measures - Tier 1, City of Edmonton Financial Summary

2. Operating and Financial Performance by Department - Tier 3

3. 2008 Emerging Financial One-time Issues

4. Non-Financial Performance - Glossary of Terms

Others Approving this ReportSenior Management Team

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Attachment 1

Civic and Corporate Wellness Measures – Tier 1 (For Illustrative Purposes Only)3

Departmental Programs

Measure Indicator Actual(2007)

Baseline Performance

OverallGenuine Progress Indicator

Municipal measure of sustainable developmentSource: Deputy City Manager’s Office (DCMO)

GPI 74.78 73.22(2006 data)

102%

Citizen Satisfaction

with Edmonton’s Quality of LifeSource: DCMO

% Satisfied 89%(2007 Citizen’s Satisfaction Survey)

95%(comparable survey: 2003)

94%


with City Services Source: DCMO

% Satisfied 76%(2007 Citizen’s Satisfaction Survey)


89%


with City taxes providing excellent, very good or good value Source: DCMO

% Satisfied 65% (2007 Citizen’s Satisfaction Survey)


110%

EnvironmentSewage/Water Collection and Treatment

(1) River Water Quality Index4 (lag/civic indicator)Source: Provincial Government

RWQI Score0 – 100

Upstream 88

Downstream 79(April/05-March/06 data)

Upstream 98

Downstream 78(April/04-March/05 data)

Excellent = 96 to 100;Good = 81 to 95; Fair = 66 to 80

(1a) Cubic metres of treated sewage and water/1000 citizens (lead/corporate indicator)Source: Asset Management & Public Works

M3/1000 citizens5

119,959 128,327(2006 data)

107%

(2) Drinking Water Quality Index (lag/civic indicator)Source: EPCOR

DWQI Score 0 – 100

99.6 99.6(2006 data)

100%

(2a) Edmonton’s Domestic Total Water Usage (lag/civic indicator)Source: EPCOR

Litres per capita per day

230 227(2006 data)

98.7%

3 Italics indicate measures that have been updated to reflect 2007 data being available.4 The numbers provided are produced by the Alberta Government from two locations, Devon upstream and Pakan downstream. From Edmonton to Pakan a number of industries, businesses and communities also impact river quality through their operations. In general, downstream conditions have improved over the past decade as a result of upgrades to the Gold Bar Wastewater Treatment Plant (with the downstream index improving from 66 in 1996/1997 to 79 in 2005/2006. Collectively, these improvements served to reduce the levels of bacteria and nutrients in the river. In the past 15 years, the City of Edmonton has invested over $200 million to decrease its impact on the river.5 For all performance measures that contain denominators of 1000 citizens, baseline data has been recalculated using post censal estimates.

Page 1 of 7 Report: 2008FTF002 Attachment 1

Attachment 1




(2b) Tonnes of pollutants removed/1000 citizens (lead/corporate indicator)Source: Asset Management & Public Works

Tonnes/1000 citizens

Data will be available Q3 2008

71.6(2006 data)

No calculation

Ambient Air Quality

(3) Air Quality Index (lag/civic indicator)Source: Provincial Government

% of time good 97.5% 96.8%(2006 data (average of 3 locations in Edmonton))

101%

(3a) Tonnes of CO2 emitted by City operations/1000 citizens (lead/corporate indicator)Source: Asset Management & Public Works

Tonnes/1000 citizens

544.36

(2006 data)567.7(1990 data)

104%

Biodiversity of Natural Areas

(4) % of land base within corporate limits that remains naturalSource: Asset Management & Public Works

% of total land base

No data available7

10.3%(2006 data)

No calculation

(4a) Area protected for conservation/total natural areas within corporate limits (lead/corporate indicator)Source: Asset Management & Public Works

% of natural areas protected

No data available6

32.8%(2006 data)

No calculation

Developed vs. Undeveloped

(5) % of total city area that is undevelopedSource: Planning & Development

% of undeveloped

41.3% 43.4%(2006 data)

105%

(5a) % of total city area that is developedSource: Planning & Development

% of developed area

58.7% 56.6%(2006 data)

104%

(5b) % of total built area infrastructure that is good and very good (physical condition)Source: DCMO

% of good infrastructure

59% 55%(2006 data)

107%

6 Two years delay between reporting year and data availability. 7 Biodiversity of Natural Areas - Actual 2007 - no data available. An attempt was made to hire a consultant to do the work but no consultant bid on the project. Natural area is defined as an area protected for conservation/total natural areas within corporate limits. Protection is considered to be any natural lands with a minimal level of protection.


Attachment 1

Economic DevelopmentNew Businesses Established

(6) Number of establishments (lag/civic indicator)Source: Statistics Canada

# of establishments; Edmonton CMAEdmonton CSD%Edm/CMA

88,057

61,11369.4%

82,162

56,74569%(2006 data)

101%

(6a) Number of commercial and industrial permits issued/1000 citizens (lead/corporate indicator)Source: Planning & Development

# of permits issued/1000 citizens

1.75 1.83(2006 data)

96%

New Home Construction

(7) City share of housing starts in region (lag/civic indicator)Source: CMHC

% of housing starts

59.7% 65.6%(2006 data)

91%

(7a) Number of housing permits issued/1000 citizens (lead/corporate indicator)Source: Planning & Development

# of permits issued/1000 citizens

11.78 12.45(2006 data)

95%

EconomicActivity

(8) GDP per capita for Edmonton (lag/civic indicator)Source: Provincial Government

$ GDP/capita $62,982 $61,029(2006 data)

103%

(8a) City Expenditure per capita (lead/corporate indicator)Source: DCMO

$/1000 citizens $1,761 $1,713 97%

(8b) City of Edmonton credit rating (lead/corporate indicator)Source: Finance & Treasury

S&P (Standard & Poors)DBRS(Bond Raters)

AA+ positive outlook

AA (+) and positive outlook(Standard & Poor 2006)

100%


Attachment 1




Social and CulturalAffordable Housing

(9) Social housing wait list (lag/civic indicator)Source: Asset Management & Public Works

# of households on wait list

2,500 2,000(2006 data)

80%

(9a) Number of affordable housing units committed with City funding. (lead/corporate indicator)Source: Asset Management & Public Works

# of housing units committed

157 634(2006 data)

25%

Community Quality of Life

(10a) Number of community development projects initiated, in progress, and completed/1000 citizens (lead/corporate indicator)Source: Community Services

# of projects per 1000 citizens

1.82 1.06(2006 data)

172%

Community Safety

(11) Victimization ReductionSource: Edmonton Police Service

Crime rate per 100,000 citizens (All Criminal Code offences including Traffic)Source: CCJS July 2007

Crime rate 10,587 11,470(2006 data)

108%

Clearance Rate Source: CCJS July 2007

Clearance rate

32% 29%(2006 data)

110%

Chief’s 8 Crime Indicators – number of offences most serious violation per incidentSource: CCJS July 2007

Chief’s crime indicators

35,571 38,412(2006 data)

108%

Injury CollisionsSource: City of Edmonton Transportation

Injury collisions

5,482 6,067(2006 data)

111%

Traffic Fatalities (occurring on public property)Source: EPS Traffic Section

Fatalities 32 25(2006 data)

78%

Leisure Activity (12a) Number of leisure facility hours of operation per 1000 citizens(lead/corporate indicator)Source: Community Services

# of leisure facility hours per 1000 citizens

293 2007 baseline year

No calculation


Attachment 1




GovernancePublic Involvement

(13) Civic engagement in elections (voter percentage) (lag/civic indicator) Source: City Clerk

% voter turnout

27% 42%(2004 data)

64%

(13a) Number of citizens (groups) involved in public involvement efforts (lead/corporate indicator)Source: DCMO

# of citizens involved

7,406 2007 Pilot year to establish baseline

No calculation

Managing Work Force

(14a) Voluntary employee turnover (lead/corporate indicator)8

Source: Corporate Services

% turnover 4.4%

Public Service: 2.2%All Others: 4.8%

<5.1%(Conference Board of Canada - HR trends and metric report, 2006)

Public Service: <3%All Others: <8%(COE benchmark for public service and all other turnover)

116%

(136%)

(166%)

(14b) Inactivity (lead/corporate indicator)Source: Corporate Services

% Inactive 4.2% 4.1%(Statistics Canada 2006, public sector rate)

98%

(14c) Overtime7 as a percentage of total personnel costs (lead/corporate indicator)Source: Corporate Services

% Overtime costs

5.9% 5.1%(2006 data)

87%

87 Turnover and overtime will fluctuate based on external labour market conditions. Overtime and personnel costs only include permanent hourly and salary costs and do not include Police Services, Edmonton Public Library and Taxi Cab Commission.


Attachment 1

City of Edmonton Financial Summary

In $000’s 2008 YTD Budget

2008 YTD $Variance

2008 Budget

2008 Projection

Projected $ Variance

Tax-supported Operations (Tax-Levy) Asset Mgmt & Public Works 44,078 1,345 112,524 115,824 (3,300) Capital Construction 681 210 1,065 1,065 - Community Services 112,920 9,050 202,769 202,053 716 Corporate Services 35,101 (2,159) 70,835 70,569 266 Finance & Treasury 7,474 (1,404) 15,079 14,993 86 Mayor and Councillors 2,988 190 6,019 6,019 - Office of the City Manager 6,008 192 11,942 11,942 - Office of the Deputy City Manager 5,118 539 11,260 11,260 - Planning & Development 12,898 (884) 24,845 24,845 - Transportation 136,207 (3,354) 263,036 274,193 (11,157) Authorities & Boards (includes Police

Services) 128,758 7,162 246,334 246,334 - Corporate Programs (891,458) (3,703) (965,708) (966,468) 760

Net Tax-supported Operations (399,227) 7,184 - 12,629 (12,629)

Enterprise & Utility Operations (Net Income) Mobile Equipment Services (3,324) (118) 1,459 (3,712) (5,171) Land Enterprise 10,247 (2,057) 23,294 23,294 - Drainage Services 16,634 6,248 24,712 32,691 7,979

Capital Expenditures - Consolidated Asset Mgmt & Public Works 101,432 9,857 387,666 363,265 24,401 Capital Construction 27,096 4,438 173,388 173,388 - Community Services 28,073 26,248 56,147 47,847 8,300 Corporate Services 45,758 18,424 97,199 93,566 3,633 Edmonton Economic Development

Corporation 3,524 (224) 4,556 3,880 676 Edmonton Public Library 4,361 1,264 15,703 11,468 4,235 Office of the City Manager 97 42 795 795 - Office of the Deputy City Manager 864 (44) 2,690 1,900 790 Planning & Development 2,393 1,240 24,900 24,900 - Police Service 6,146 2,315 20,392 20,392 - Transportation 199,979 42,841 730,923 675,312 55,611

Total Capital Expenditures 419,723 106,401 1,514,359 1,416,713 97,646


Attachment 1

Highlights:

Tax-supported Operations $12.6 million projected unfavourable variance primarily due to the following:

$(7.4) million additional expenditures due to fuel price and volume increases expected within Transit.

$(3.5) million additional expenditures as a result of the late spring storms including winter road maintenance, hired equipment deployment and repeating spring clean-up tasks.

$(3.3) million net increase consisting of an increase in one-time expenditures of $4.2 million to fund the fit up of new leased space (62,000 square feet) required to accommodate staff hired during 2007 and 2008, partially offset by sustainable parking revenues and recoveries of $0.9 million.

$(1.1) million in ME First! program debt repayments in advance of long-term utility savings expected by Recreation Facility Services.

$1.5 million from delays in staffing senior firefighter captain level and additional Enoch fire protection contract revenue.

$1.2 million net additional corporate revenues from receipt of one-time special dividend from WCB, gas franchise fees, partially offset by lower Land Enterprise dividend and reduced net investment earnings.

Enterprise and Utility Operations $5.2 million projected net loss for Mobile Equipment Services due to escalating fuel costs

and work being completed for rejuvenation and restructuring of MES operations. The escalating fuel costs projection includes a recovery of $7.4 million from the Transit branch.

Land Enterprise is projecting to be on budget as this time. $8.0 million projected net revenue increase for Drainage Services due to higher recoveries,

lower financial expenses and higher revenues from customer growth and strong economic conditions.

Capital Expenditures $97.6 million projected favourable variance primarily due to the following:

$51.6 million as a result of anticipated outstanding external commitments. $21.4 million due to changes in project and customer requirements. $16.2 million due to delays in public/partner participation process. $15.9 million as a result of land acquisition delays. $3.5 million in project delays due to unavailability of internal and external resources. $(10.5) million due to higher than expected contract prices. $(0.5) million other net variances.


Attachment 1


Attachment 2

Operating and Financial Performance by Department - Tier 3Performance Measures – Asset Management & Public Works

(For Illustrative Purposes Only)


Measure Indicator Actual (YTD) as of June 30, 2007

Actual (YTD) as of June 30, 2008

Baseline Performance(2008)

Corporate Properties

(Land and Buildings)

Efficiency: Operating costs per sq. foot of office space in comparison to industry standard.

$/sq. ft. $8.34(Dec 2007)

See Highlights

$9.28(BOMA industry standard)

No Calculation

Effectiveness: % of total maintenance hrs planned vs. total hrs of work.

% Total planned hrs/Total reactive hrs

45.4%(Dec 2007)

47.2% 44.8%(12 month rolling average)

105%

Parks Efficiency: Parks Maintenance Expenditures per capita.

$/citizen $38(Dec 2007)

See Highlights

$39(2006 data)

No Calculation

Cost per hectare of maintained turf.

$/ha $1,745(Dec 2007)

$1,614(2006 data)

No Calculation

Cost per maintained tree. $/tree $20(Dec 2007)

$18(2006 data)

No Calculation

Effectiveness:Hectares of turf maintained.

Hectares maintained

4,557(Dec 2007)

4,787(2006 data)

No Calculation

Waste Management

Efficiency: Costs of single family refuse collection.

$/tonne $80 $91 $95(2008 data)

104%

Effectiveness: Missed collection complaints (refuse and recyclables).

per 10,000 stops

4.00 3.00 4.00(2008 data)

125%

HighlightsCorporate Properties Actual data for operating cost per square foot is only available annually. A new efficiency measure is

being developed for the next reporting period. Increased emphasis on core maintenance activities has resulted in an improvement in the proportion of

planned maintenance to total hours worked. The baseline values has been changed to better represent true work results over a 12 month rolling

average, as developed from the SAP Plant Maintenance System.


Attachment 2

Parks Performance of the selected activities is measured on an annual basis. 2007 YTD data represents 2007

year-end figures. 2008 data will be available at year-end, as measures are calculated annually.

Waste Management Labour challenges are resulting in increased contract costs. The baseline has been changed to reflect the cost challenges in the current labour environment.


Attachment 2

Financial Results – Asset Management & Public Works


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Corporate Properties 16,748 913 38,924 42,224 (3,300)Parks 21,951 63 44,010 44,010 -Waste Management 5,379 369 29,590 29,590 -

Total Tax-supported Operations 44,078 1,345 112,524 115,824 (3,300)Capital Expenditures

Parks 12,132 5,180 75,358 66,139 9,219Waste Management 13,246 752 57,162 53,402 3,760

Total Capital Expenditures 25,378 5,932 132,520 119,541 12,979

Highlights

Tax-supported Operations $3.3 million projected unfavourable variance for Corporate Properties consisting of an

increase in one-time expenditures of $4.2 million to fund the fit up of new leased spaced to accommodate staff hired in 2007 and 2008, partially offset by increased sustainable parking revenues and recoveries of $0.9 million.

Capital Expenditures $9.2 million projected favourable variance in Parks mostly attributed to a delayed

construction start for the Fort Edmonton Footbridge as a result of late government permit approvals and review of higher tender price than expected. Timing of land acquisitions has delayed the design completion and construction of some neighbourhood/district park sites.

$3.8 million projected favourable timing variance in Waste Management from delays in signing the contract for the gasification project. Overall project expected to be on target.


Attachment 2

Performance Measures – Asset Management & Public Works(For Illustrative Purposes Only)





Drainage Services

Efficiency: Cost of maintenance per lineal metre of pipe for the collection of wastewater and storm water.

$ /m3 $3.69(Note 1)

$3.67(Note 2)

$3.48(2007 data)

95%

Effectiveness: Wastewater treatment effluent quality (annual average) consists of Biochemical Oxygen Demand (mg/L), Total Suspended Solids (mg/L), and E. Coli (Colony Forming Units-CFU/100 ml).

Effluent quality:BOD mg/L, TSS mg/L, E. Coli CFU/100ml

4.29.111.4

4.27.95(Note 3)

5.06.040(Council approved PBR target)

119%76%

800%

HighlightsEfficiency Measure: A greater number of high priority repairs during the first half of 2008 resulted in a higher than targeted

cost of maintenance per lineal metre of pipe for the collection of wastewater and storm water.

Effectiveness Measure: The Baseline has been changed to the Council approved Performance based targets. With Celanese ceasing operation, alum was used to remove a portion of the Total Phosphorus. The

Alum dosing resulted in increased solids loading for the Biological Nutrient Removal process and resulted in higher BOD and TSS effluent concentrations. This will be addressed by the fermenters that will be completed in late 2008.

"Disinfection performance, expressed as # of E.coli/100ml, improved from 11.4 in 2007 to 5.0 in 2008. The improvement corresponds to lower TSS levels, which declined from 8.4 mg/L to 7.9 mg/L over the same period. TSS levels affect UV light transmittance; lower TSS levels can lead to higher disinfection rates. The 2007 and 2008 actual values are below the Performance Based Regulation target of 40 cfu/100ml, and well below Alberta Environment's Permit to Operate monthly limit of 200 cfu/100ml."

Notes: Note 1: Figure adjusted based on actual inventory value at the end of 2007. Previously reported figure

was 3.75. Note 2: Figure provided is derived from actual cost data recorded during the 6 months period ending

June 30, 2008 and projected to year-end. Inventory value used is for year-end but is only estimated. Note 3: Results reported are based on a rolling 12 month period as opposed to YTD (i.e. from July 1,

2007 to June 30, 2008).


Attachment 2

Financial Results – Asset Management & Public Works


2008 YTD $Variance

2008 Budget

2008 Projection


Enterprise & Utility Operations (Net Income)

Land Enterprise Land Development

Revenue 12,375 (4,136) 29,150 29,150 -Expenditures 5,603 3,106 12,806 12,806 -

Net Income 6,772 (1,030) 16,344 16,344 - Land Revolving

Revenue 5,000 (2,428) 10,000 10,000 -Expenditures 1,525 1,401 3,050 3,050 -

Net Income 3,475 (1,027) 6,950 6,950 -Drainage Services Land Drainage

Revenue 10,671 281 21,401 23,602 2,201Expenditures 7,146 1,318 14,936 14,908 28

Net Income 3,525 1,599 6,465 8,694 2,229 Sanitary Drainage

Revenue 56,814 (1,892) 116,486 118,061 1,575Expenditures 43,705 6,541 98,239 94,064 4,175

Net Income 13,109 4,649 18,247 23,997 5,750

Highlights

Enterprise & Utility Operations Land Enterprise is projecting at this time to end the year on budget. $2.2 million projected net favourable variance for Land Drainage resulting from higher

customer growth and strong economic conditions. $5.8 million projected net favourable variance for Sanitary Drainage as a result of higher

design and construction recoveries, lower financial expenses and higher revenues from customer growth and the strong economic conditions.

Capital Expenditures $4.4 million projected unfavourable variance for Land Enterprise as a result of an

opportunity purchase, partially offset by anticipated delays in the Fort Road Redevelopment project from the lack of external consultants on the road design and environmental impact assessment.

$15.8 million projected favourable timing variance for Drainage Services due to sewer development delays for Our Lady of Peace project.


Capital ExpendituresLand Enterprise 26,509 1,512 93,727 98,140 (4,413)Sanitary Drainage 30,971 (93) 106,305 100,070 6,235Land Drainage 18,574 2,506 55,114 45,514 9,600


Attachment 2

Performance Measures - Capital Construction(For Illustrative Purposes Only)





Project Management & Construction

Efficiency: % of capital budget expended (own & managed for clients).

% Capital budget projects

20% 15% 75% (2006 data)

20%

Effectiveness: % of major planned stand-alone projects completed within client accepted schedule.

% projects 66% 83% 85% (2006 data)

98%

Highlights Efficiency measure based on total year budget that the Capital Construction Department is responsible

for, which includes funding from other departments for a total of $195.9 million and actual spent to date of $28.4 million. Results to the end of June do not incorporate peak construction activity. In addition, the majority of costs for two major projects (SW Rec Centre and the SW Transit Garage) are planned for the second part of the year. These projects represent 52% of the total year’s budget.

Capital Construction includes Project Management and Construction, with other changes being phased in as the reporting structure is finalized. The Capital Construction Department will include capital project planning, LRT construction, recreational facilities construction, construction contract management, and project management and construction.


Attachment 2

Financial Performance - Capital Construction


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Project Management & Construction

681 210 1,065 1,065 -

Total Tax-supported Operations 681 210 1,065 1,065 -Capital Expenditures

Project Management & Construction

27,096 4,438 173,388 173,388 -

Total Capital Expenditures 27,096 4,438 173,388 173,388 -

Highlights

Tax-supported Operations The Capital Construction department is projecting to be on budget at this time.

Capital Expenditures The Capital Construction department is currently anticipating that overall spending will be

close to target for the remainder of 2008.


Attachment 2

Performance Measures – Community Services(For Illustrative Purposes Only)





Emergency Medical Services

Efficiency: Operating costs per event.

$/event $464 $562 $581(average of 2004-2006 data, inflated to 2008 values)

103%

Effectiveness: Percentage of events reached within nine minutes.

% of responses less than 9 mins

71% 69% 90%(industry accepted standard)

77%

Fire Rescue Services

Efficiency: Operating costs per in service firefighter hour.

$/firefighter hour

$71.37 $78.42 $80.95(2006 data, inflated to 2008 values)

103%

Effectiveness: % Fires contained in the room of origin.

% fires contained in room of origin

69% 75% 75%(past data and desired improvement)

100%

Neighbourhood & Community Development

Efficiency – Neighbourhood Support:Number of FTEs providing support to neighbourhoods / communities compared to the number of neighbourhoods.

Neighbourhood/Community FTEs/ Neighbourhood

0.20 FTE 0.19 FTE(only changes annually)

To be developed as effectiveness data is collected and assessed

No calculation

Efficiency – Grant Administration: Number of FTEs per $100K of Grant funding administered.

FTEs/$100K Grants administered

0.10 FTE(last 12 months)

0.10 FTE As above No calculation

Effectiveness – Neighbourhoods: Percent of Community Groups whose relationship with NCD has increased their capacity to serve their community.

% Groups with increased capacity

76%(Dec. 2007)

To be available in Q4

80%(current data and desired improvement; to be reviewed as data is collected)

No calculation


Attachment 2





Recreation Facility Services

Efficiency: Net Facility operating cost per visit (seasonal in nature).

$/visit $5.24 $7.01 $5.95(2006 data, adjusted to remove anomalies such as facility closures, and inflated to 2008 values)

85%

Overall User satisfaction

% users satisfied

86% 91% 90%(2007 data and desired improvement)

101%

Highlights Of the nine Community Services performance measures, three are better than their benchmarks, two

are on par with expected performance, two are below benchmark performance, and two are not yet able to be calculated. Of the two that are below benchmark performance, one is cyclical in nature, and is expected to improve by year-end.

Emergency Medical Services When the 2006 baseline for cost per event is adjusted to reflect the inflationary and service package

additions to 2008, the current cost per event is less than it was in 2006. This reflects the significant increase in call volume experienced by EMS, and that the impact of higher call volumes and growth has exceeded resources invested in the system. One effect of this reduction in resources per event is the drop in response time performance.

With rising call volumes, increasing hospital wait times, and the geographic sprawl of the city, EMS continue to struggle to meet their response time baseline, reaching the baseline time on only 69% of calls in the first half of 2008.

Fire Rescue Services When compared against the 2006 baseline, which has been adjusted for inflation and service package

additions, the current cost per in-service firefighter hour is below the baseline cost. This reflects the successes of a number of initiatives that are now bearing fruit, including e-learning, increased staffing levels, and health and wellness programs to keep firefighters on the job. These successes have somewhat mitigated the challenges of recruiting and training new staff to replace retiring members.

Containment of fires in the room of origin was 75% in the first half of the year, which is a slight improvement over previous years, and now meets the internal target set by Fire Rescue. This measure should increase further as the department has added new resources this year in the areas of public education and enforcement of safety codes.


Attachment 2

Neighbourhood and Community Development Staffing levels in grant administration and support to neighbourhoods has been increased this year.

Although the work volume has also increased, especially regarding support to neighbourhoods, it is hoped that the additional resources will improve the effectiveness of the services provided to the community.

The survey of community groups is conducted only once a year, and will take place in September, so new data is not available regarding the impact of Community Services support on their activities. It is hoped that with the additional resources and neighbourhood focus, the community groups will feel that they are able to provide more effective services to their members. The 2008 survey program will help to set an appropriate baseline for this measure.

Recreation Facility Services The first half of 2008 has seen an increase in operating cost per visit, however this measure is quite

cyclical in nature. Past data indicates that these figures will improve as the active summer season gets under way. The very late start to the summer season and the unsettled, rainy weather since then have had an impact on outdoor facilities such as golf courses. Significant increases in annual maintenance costs and unexpected short term facility closures also had a big impact on the cost per visit. Year-end attendance figures will be affected by several major facility closures, such as Bill Hunter Arena, Muttart Conservatory, and Central Lions Centre, which brought down attendance by over 300,000 in early 2008.

Overall facility user satisfaction has improved this year to 91%, just above the target of 90%. The branch aims to improve upon this level of satisfaction, by using workforce attraction and retention strategies to reduce front-line staffing shortages and turn-over.


Attachment 2

Financial Results – Community Services


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Fire Rescue 66,041 4,314 131,780 130,278 1,502Emergency Medical Services 10,727 (474) 9,075 9,427 (352)Recreation Facility Services 14,278 (621) 27,048 28,177 (1,129)Neighbourhood & Community Dev. 21,874 5,831 34,866 34,171 695

Total Tax-supported Operations 112,920 9,050 202,769 202,053 716Capital Expenditures

Fire Rescue 679 592 1,359 1,359 -Recreation Facility Services 23,586 22,439 47,172 38,872 8,300Neighbourhood & Community Dev. 3,808 3,218 7,616 7,616 -


Highlights

Tax-supported Operations $1.5 million projected net favourable variance for Fire Rescue from reduced salaries due to

delays in hiring senior firefighter captain level and additional Enoch fire protection contract revenue.

$(0.4) million projected unfavourable variance for Emergency Medical Services resulting from increased bad debt expense for ambulance billings, in line with increased revenues and historical collection trends.

$(1.1) million projected unfavourable variance for Recreation Facility Services resulting from the ME First! program debt repayments in advance of expected long-term utility savings.

$0.7 million projected net favourable variance for Neighbourhood & Community Development primarily due to savings from personnel vacancies and delays in hiring, and savings in contract services.

Capital Expenditures $8.3 million projected favourable timing variance in Recreation Facility Services primarily

due to changes in project scope for 2008 for the Fred Broadstock Pool Redevelopment, Fort Edmonton Park Improvement and Field House at St. Francis Xavier projects. Overall these projects are expected to be on target.


Attachment 2

Performance Measures – Corporate Services(For Illustrative Purposes Only)




Baseline / Target

Performance(2008)

Corporate Services

Efficiency: Operating cost per civic expenditures.

% of total $ 14% 11% 13%(average 3 previous years)

118%

Effectiveness: CSD Client Satisfaction Rate.

% overall satisfaction

74% 63% >75% (department set)

84%

Human Resources

Effectiveness: Active Recruitment Rate.

% permanent FTE currently recruiting for/budgeted FTE

n/a 4.8% <4%(City of Edmonton)

83%

Information Technology

Effectiveness: Availability of critical applications.

% availability of critical applications

99.9% 99.9% 99.9%(Industry standard)

100%

Production runs to schedule (payroll, financial).

Production schedule met

100% 100% 100%(branch set)

100%

Inside Information service level.

% of calls answered (=or<30 seconds)

87.9%(Dec 2007)

90.2% 85%(branch set)

106%

Law Effectiveness: Amount paid to resolve a legal action as compared to the amount claimed by the person(s) suing the City.

% diff. between amount claimed and actually paid

13% of claim

0.7% of claim

<50% of amount claimed is paid(branch set)

149%

Claims settled without the necessity of litigation.

% of claims settled

99% 96% >=94%(branch set)

102%

Mobile Equipment Services (MES)

Efficiency: Operating costs per total fleet.

# managed equipment operating $

$29,000 $33,960 (Yearly projection)

<=$31,080(2006 data plus 5% inflation)

92%

Communications Effectiveness: Residents report they are proud of their City.

% of residents report they are proud of their city

69% (2007 Citizens Satisfactio-n Survey)

n/a 2007 baseline year

No Calculation

% of residents report they would recommend the

84%(2007 Citizens


No Calculation


Attachment 2




Baseline / Target

Performance(2008)

City as a place to live

Satisfaction Survey)

Edmonton has a positive image

% of residents who reported that Edmonton has a positive national image

46%

(2007 Citizens Satisfaction Survey)


No Calculation

HighlightsCorporate Services Changes within corporate and department organization structures are having a fluctuating effect on cost

allocations. Efficiency is reported at the program level to coincide with financial reporting criteria. Operating Costs = all Corporate Service Departments (CSD) excluding MES. Total expenditures = Civic

net tax supported operations (excludes MES, Drainage, Police, Boards and Authorities). Source: CSD Client Satisfaction Survey (2008); CSD Client Satisfaction Survey baseline score (2002-

05).Human Resources Active recruitment rate fluctuates throughout the year. Effectiveness measure changed to more accurately reflect active recruitment. Additional human resources measures are reported in Tier 1 – Corporate Wellness.Information Technology Availability of critical (identified as “Severity 1”) business applications (department and/or corporate

ERP) as tracked by the IT business continuity group.Law Effectiveness results were exceptional due to the Law Branch succeeding in having a major claim

dismissed.Mobile Equipment Services MES reported separate from CSD (Enterprise vs. Tax Supported) Fleet Count based on 3,470 equipment count. Expenditures reported based on profit centre P250000. Projection is until year-end 2008 and includes expected overrun on fuel costs.Communications Data for communications measures is collected annually. The organizational changes announced earlier in the year are reflected in the June reporting, with the

exception of the Office of the City Clerk reporting to Corporate Services, and the Communications Branch reporting to the Office of the Deputy City Manager. These changes are underway and will be reflected once reporting changes are complete.


Attachment 2

Financial Results – Corporate Services


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Corporate Services 35,101 (2,159) 70,835 70,569 266

Total Tax-supported Operations 35,101 (2,159) 70,835 70,569 266Enterprise & Utility Operations (Net Income)Mobile Equipment Services

Revenue 3,544 490 7,088 7,288 200Recoveries 54,935 1,585 119,068 126,497 7,429Expenditures 61,803 (2,193) 124,697 137,497 (12,800)

Net Income (3,324) (118) 1,459 (3,712) (5,171)Capital Expenditures

Corporate Services 9,191 1,789 24,066 24,066 -Mobile Equipment Services 36,567 16,635 73,133 69,500 3,633


Highlights

Tax-supported Operations $0.3 million projected favourable variance for Corporate Services resulting primarily from

savings due to timing of hiring vacant positions in the Law and Communications branches.

Enterprise & Utility Operations $5.2 million projected net loss for Mobile Equipment Services due to escalating fuel costs

and work being completed for the rejuvenation and restructuring of MES operations.

Capital Expenditures $3.6 million projected favourable variance for Mobile Equipment Services from anticipated

delays in receiving goods and services for vehicle/equipment replacement and facilities projects. Over the life of these projects, they are currently expected to be on budget.


Attachment 2

Performance Measures – Finance & Treasury(For Illustrative Purposes Only)





Finance & Treasury

Effectiveness: Investment benchmarks are achieved or exceeded.

YTD % rate of return4 Year % rate of return

NA (Note 1)

NA (Note 1)

1.2%

6.1%

1.5%

5.9%(Investme-nt Policy C212C)

80%

103%

Invoices paid in accordance with specific terms.

% paid on time 81% 87% 80%(Industry standard)

109%

Collection Rate. # of days outstanding

67 72 90(Industry standard)

125%

Highlights Baseline target is adjusted quarterly as per the City's Investment Policy C212C. YTD results are slightly

below baseline as a result of short-term underperformance of some of the City's investment managers. However, the four-year weighted average annualized return is 6.1% against a baseline of 5.9%.

Performance measures presented reflect the measures established when Finance was a branch, within the Corporate Services department. Performance measures are being reviewed to ensure that they represent the Finance & Treasury department.

Note 1: 2007 actuals are not meaningful, unless compared to the benchmark from that time period.


Attachment 2

Financial Results – Finance & Treasury


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Finance & Treasury 7,474 (1,404) 15,079 14,993 86

Total Tax-supported Operations 7,474 (1,404) 15,079 14,993 86

Highlights

Tax-supported Operations $0.1 million projected favourable variance for Finance & Treasury primarily due to the timing

in hiring for vacant positions in Treasury operations.


Attachment 2

Performance Measures – Mayor and Council(For Illustrative Purposes Only)





Mayor and Councillor Offices

Efficiency: Operating cost per total expenditure.

% of total tax expenditure

0.26% 0.25% 0.25%(2006 data)

100%

Office of the City Auditor

See annual City Auditor’s report.

Highlights Results for Efficiency Measure are based on total operating expenditure for Mayor and Councillor’s

Offices divided by total tax levy and enterprise / utility expenditures.


Attachment 2

Financial Results – Mayor and Council


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Mayor and Councillor Offices 2,037 115 4,068 4,068 -Office of the City Auditor 951 75 1,951 1,951 -

Total Tax-supported Operations 2,988 190 6,019 6,019 -

Highlights

Tax-supported Operations The Mayor and Councillor Offices and the Office of the City Auditor are projecting at this

time to be on budget at year-end.


Attachment 2

Performance Measures – Office of the City Manager(For Illustrative Purposes Only)





City Manager (CMO)

Efficiency: Operating cost per total expenditures.

% of total expenditures

0.09% 0.08% 0.10%(2006 data)

125%

Effectiveness: See Tier 2 of City Manager’s PCP.

Indicators reported at year end

Office of the City Clerk (OCC)

Efficiency: Operating cost per total expenditure.

% of total expenditure

0.42% 0.67% 0.46%(2006 data)

69%

Effectiveness: Percent of standards met.

% of standards met

n/a 100% 100%(historical data)

100%

Highlights Efficiency Measure = total operating expenditure for CMO/OCC divided by total tax levy and enterprise /

utility expenditures. 2007 expenditures have been re-stated to reflect the corporate restructuring and the transfer of

Intergovernmental Affairs, the Regional Growth Initiative, and the Office of Emergency Preparedness from the Office of the City Manager to the Deputy City Manager’s Office.

In 2008, the Office of the City Clerk’s operating cost per total expenditure has increased as the result of costs incurred for the Civic Census, World Heavy Oil Conference, and Olympic Curling Trials.

The organizational changes announced earlier in the year are reflected in the June reporting, with the exception of the Office of the City Clerk reporting to Corporate Services, and the Communications Branch reporting to the Office of the Deputy City Manager. These changes are underway and will be reflected once reporting changes are complete.


Attachment 2

Financial Results – Office of the City Manager


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)City Manager 610 (73) 1,208 1,208 -Office of the City Clerk 5,398 265 10,734 10,734 -

Total Tax-supported Operations 6,008 192 11,942 11,942 -Capital Expenditures

Office of the City Clerk 97 42 795 795 -Total Capital Expenditures 97 42 795 795 -

Highlights

Tax-supported Operations The City Manager and Office of the City Clerk are projecting at this time to be on budget at

year-end.

Capital Expenditures The Office of the City Clerk is projecting at this time to be on budget at year-end.


Attachment 2

Performance Measures – Deputy City Manager’s Office(For Illustrative Purposes Only)





Deputy City Manager’s Office

Efficiency: Operating costs per total expenditures

% of total expenditures

n/a 0.6% Baseline TBD

No Calculation

Economic Trends and Research

*Effectiveness: Accuracy of economic forecasts.

Accuracy of population forecast to bi-annual census.

+0.3%(Dec 2007)

n/a 1.5%(historical data average)

No Calculation

Accuracy of City housing forecast to CMHC reports

-2.3% (Dec 2007)

n/a 10.0%(historical data average)

No Calculation

Office of Environment and Energy

*Effectiveness: CO2RE memberships.

# of memberships

11,051 12,051 9,386(2006 data)

128%

Business Enterprise Services

*Effectiveness: Business owners achieving anticipated value.

% business owners achieving value

76% (Value Managem-ent Reporting)

76% (Value Manageme-nt Reporting)

75%(branch set)

100%

Highlights Efficiency measure = total operating expenditures for the DCMO divided by total tax levy and

enterprise/utility expenditures. Effectiveness measures: as previously reported. Additional measures are reported in Tier 1 –

Corporate and Civic Wellness. Deputy City Manager’s Office was established April, 2008. As the office matures, performance

measures will be established reflective of our services, mission and Council’s Vision. Data for Economic Trends and Research measures is collected annually.


Attachment 2

Financial Results – Deputy City Manager’s Office


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Deputy City Manager 5,118 539 11,260 11,260 -

Total Tax-supported Operations 5,118 539 11,260 11,260 -Capital Expenditures

Deputy City Manager 864 (44) 2,690 1,900 790Total Capital Expenditures 864 (44) 2,690 1,900 790

Highlights

Tax-supported Operations The Office of the Deputy City Manager is projecting at this time to be on budget at year-end.

Capital Expenditures $0.8 million projected favourable timing variance due to unavailability of internal resources

for phase 2 of the PaCMan project. Phase 2 expected to start in January 2009.


Attachment 2

Performance Measures – Planning and Development(For Illustrative Purposes Only)





Development Compliance Branch

Efficiency: Number of single family dwelling combo permit applications/FTE.

# of permit applications / FTE

123 39 175 (June)350 (annual)(average 3 previous years) June Performance calculated using 50% of baseline

22%

Effectiveness: Average number of days to issue single family dwelling (SFD) combo permit.

Average # of days to issue a permit

33 24 <38(Branch Set)

158%

Assessment & Taxation

Efficiency: Number of accounts per FTE.

Assessors / account

3,134 3,010 2,500(2006 data)

120%

Effectiveness: Collection rates for property and business accounts.

% property paid 98.4%(Dec 2007)

Annual Collection

99%(Branch Set)

No calculation

% business paid 100.3%(Dec 2007)

Annual Collection

99%(Branch Set)

No calculation

Planning & Policy Services

Efficiency: Operating costs per 1000 citizens.

$/1000 citizens $5,040 $5,680 $5,724(2007 Q2 baseline plus 6.9% inflation)

100%

Effectiveness: Number of planning applications per FTE.

# of planning applications / FTE

12.1 6.7 8.4(2006 data)

80%

Housing Efficiency: Leveraging of City funding.

% of capital funding provided by City

14%(Dec 2007)

12.8% 12%(2006 data)

116%

Effectiveness: Percentage of Council’s Cornerstone Target of 500 unit of affordable housing per year committed.

Number of affordable housing units committed

167 units(Dec 2007)

390 250 (June)500 (Annual)(Council’s Cornerstones Target, 2006 baseline) June Performance calculated using 50% of baseline

156%


Attachment 2

Highlights Baselines were taken from June 30, 2007 Organizational Performance Report unless otherwise stated

(OPR baselines identified as “2007 Q2 baseline”).Development Compliance The number of single family dwelling permits is market driven. The drop in permits issued in 2008 is a

market adjustment to the high level of activity in 2007 that exceeded the demand for housing. The drop in residential permits is counter balanced by high rates of commercial, industrial and institutional development. Overall the value of building permits issued in the first half of 2008 was $1.390 billion, exceeding the 2007 mid-year values of $1.183 billion by 18%.

Assessment & Taxation: Tax collection is monitored on a yearly basis, so no quarterly data available. Reporting will be done at the

conclusion of the fourth quarter of 2008. Planning & Policy Services The efficiency standard of operating cost per 1000 citizens was $10,700 in 2007. Based on the June 30,

2008 results and projections the estimated annual operating cost per 1000 citizens is $11,070. Adjusted for 6.9% inflation, the annual effectiveness target for planning applications per FTE is 20.5. The 2007 population estimates are based on Statistics Canada post-censal estimate of 763,732 people. The 2008 population estimate of 776,000 people is from the City of Edmonton publication Socio-Economic Outlook, May 2007. Population estimates may be revised once municipal census population total is released.

At 80% of the benchmark for planning applications per FTE, the effectiveness standard is within a normal range of variation for a half year measure.

Housing For the 390 units for which funding was committed in the first half of 2008, total City funds of $5.3 million

levered total funds from other sources of $41.1 million, representing a City share of funds from all sources of 13% which exceeds the 17% Housing Branch Efficiency standard by 42%.

With the 500 units per year (250 units per six months) target for the period 2006 to 2010, the 390 units for which funding commitments were made in the first half of 2008 indicates Cornerstones exceeded the 250 unit effectiveness performance standard by 140 units or 56%.

Baseline has been changed from a percentage to the actual number of units committed.


Attachment 2

Financial Results – Planning & Development


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Planning & Development 5,497 722 13,283 13,283 -Housing 7,401 (1,606) 11,562 11,562 -

Total Tax-supported Operations 12,898 (884) 24,845 24,845 -Capital Expenditures

Planning & Development 2,393 1,240 12,570 12,570 -Housing - - 12,330 12,330 -

Total Capital Expenditures 2,393 1,240 24,900 24,900 -

Highlights

Tax-supported Operations Planning & Developing and Housing are projecting at this time to be on budget at year-end.

Capital Expenditures Planning & Developing and Housing are projecting at this time to be on budget at year-end.


Attachment 2

Performance Measures – Transportation(For Illustrative Purposes Only)





Streets Engineering

Snow Ploughing instances of time snow ploughing occurred within 48 hours of a snow storm

n/a met 5 out of 6 snowstorms

100%

City Bylaw C409E Roadways Snow Removal

83%

Quality of Arterial roads

Pavement quality index (PQI).

5.9 5.9 6.5Industry standard

91%

Traffic Operations

Intersection Collisions

# of intersection related collisions

n/a

2007 results incomplete

n/a 9,098 2006-2010 Traffic Safety Strategy target

No Calculation

Public Transit Revenue Rides(Bus and LRT) (In 000’s)

# of linked passenger trips

30,942 33,424 32,525(based on 2008 budget)

103%

Revenue(Bus and LRT)(In $000’s)

Total Operating Revenue

$40,925 $43,064 $42,114(2008 budget) 105%

Operating Costs(Bus and LRT)(In $000’s)

Total Operating Costs

$90,528 $99,872 $95,583(2008 budget) 96%

Boardings(Bus and LRT)(In 000’s)

Total unlinked trips

49,507 53,478 46,700(based on 2008 budget)

115%

Hours of Service(Bus and LRT)

Total number of service hours

928,163 981,774 956,000(based on 2008 budget)

103%

Boardings per Hour(Bus and LRT)

Total boarding per service hour

53.3 54.5 47.9(based on 2008 budget)

114%

Rides per capita (Bus and LRT)

Total revenue rides per capita

Annual metric reported at year end

Annual metric reported at year end

39.7(based on 2008 budget)

No Calculation


Attachment 2

HighlightsTransportation Planning, Engineering and Operations Some previous measures were removed due to no agreement within the industry of standard and/or lack of

meaningful data. Intersection collisions lag time means 2007 is still being finalized; working with police to reduce time

between collision reporting and finalizing information.Public Transit Total operating expenses are above target due to increase in fuel prices.


Attachment 2

Financial Results – Transportation


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Roads 69,479 (1,474) 130,191 133,691 (3,500)Transit 66,728 (1,880) 132,845 140,502 (7,657)

Total Tax-supported Operations 136,207 (3,354) 263,036 274,193 (11,157)Capital Expenditures

Roads 68,146 8,132 399,871 382,629 17,242Transit 131,833 34,709 331,052 292,683 38,369


Highlights

Tax-supported Operations $(3.5) million projected unfavourable variance for Roads resulting from late spring storms

including winter road maintenance, hired equipment deployment and repeating spring clean-up tasks.

$(7.7) million projected unfavourable variance for Transit primarily due to escalating fuel prices and volume increases. A small portion of the variance is also attributed to support required for the South Light Rail Transit project, Intergraph projects and ME First! program debt repayments in advance of long-term utility savings, partially offset by Trolley power savings from route changes as a result of construction.

Capital Expenditures $17.2 million projected favourable variance for Roads due to the following:

$20.0 million due to a portion of the construction for the Whitemud/Quesnell Bridge project now expected to take place in 2009.

$5.7 million due to less local improvement projects than initially anticipated. $(8.4) million due to an increase in project costs for 2008 for the neighbourhood renewal

program. Total project is expected to be on target. $(0.1) million other.

$38.4 million projected favourable variance for Transit due to the following: $27.0 million due to outstanding external commitments and delayed construction start for

the North Light Rail Transit project. $10.2 million due to a pending land acquisition. $1.1 million due to unavailability of internal resources for the Disabled Adult Transit

Service (DATS) computer system. $0.1 million other.


Attachment 2

Financial Results – Authorities & Boards


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Arts Council 4,832 - 4,373 4,373 -Edmonton Economic Development Corporation

6,243 - 12,485 12,485 -

Federation of Community Leagues 1,178 677 2,113 2,113 -Greater Edmonton Foundation 3,500 - 3,500 3,500 -Police Services 95,462 6,485 190,516 190,516 -Edmonton Public Library 15,805 - 31,609 31,609 -Space & Science Center 1,738 - 1,738 1,738 -

Total Tax-supported Operations 128,758 7,162 246,334 246,334 -Capital Expenditures

Edmonton Economic Development Corporation

3,524 (224) 4,556 3,880 676

Police Services 6,146 2,315 20,392 20,392 -Edmonton Public Library 4,361 1,264 15,703 11,468 4,235


Highlights

Tax-supported Operations Authorities and Boards are projecting to be on budget at year-end.

Capital Expenditures $0.7 million projected favourable timing variance for Edmonton Economic Development

Corporation primarily as a result of work budgeted for 2008, but now expected to take place in 2009 for the Biotechnology Centre project.

$4.2 million projected favourable variance for the Edmonton Public Library resulting from delays in the land acquisition for the Northeast Branch Library construction.


Attachment 2

Financial Results – Corporate Programs


2008 YTD $Variance

2008 Budget

2008 Projection


Tax-supported Operations (Tax-Levy)Capital Project Financing (1,849) (1,992) 109,747 109,479 268Corporate Expenditures 13,782 2,000 31,056 31,198 (142)Corporate Revenues (137,521) (3,680) (341,003) (342,195) 1,192Taxation Expenditures 1,763 (99) 2,125 2,125 -Taxation Revenues (767,633) 68 (767,633) (767,075) (558)

Total Tax-supported Operations (891,458) (3,703) (965,708) (966,468) 760

Highlights

Tax-supported Operations $0.3 million projected favourable variance for Capital Project Financing resulting from

lower debt charges due to less than anticipated local improvements. $1.1 million projected net favourable variance in Corporate Expenditures and Revenues

due to a one-time special dividend from WCB, additional gas franchise fees, offset by reduced net investment earnings, lower land enterprise dividend and slightly higher first party claims.

$(0.6) million projected unfavourable variance in Taxation Revenue due to slightly lower assessments than expected.


Attachment 3

2008 Emerging Financial One-time Issues

The following one-time issues have been identified and reviewed by Administration.

The suggested funding source to address the current one-time issues is based on prior City Council recommendations for the use of the 2007 unallocated operating surplus, and the unallocated education property tax room.

Council has approved that the remaining 2007 operating surplus be allocated to the 2008 capital budget emerging issues, and that the unallocated education property tax room be used to fund 2008 one-time items and then be applied to the 2009 base budget.

Administration has also identified an opportunity based on the current borrowing forecast, which indicates that tax-supported debt charges will be less than expected. Therefore, this excess will be available through the tax-supported debt reserve.

One-time IssuesInitiative/Project Description and Rationale Amount

$(000’s)Operating ItemsRecommendation 2a Paskin House

The WORKS International Arts Society is seeking financial support for the cost of moving and placing the foundation of the Paskin House. The Paskin House is a designated heritage home located in the McCauley Community.

The sale of the lot which the house will be placed on was approved by City Council in September 2007. The preliminary work for the redesign and renovation costs has been covered by the organization, but additional funding is required to move the house and build the foundation. The current estimate is $0.21 million, of which $0.05 million has been secured from the Heritage Conservation program. The recommended funding source is the unallocated education tax room.

$ 160

Operating Sub-Total $ 160


Attachment 3

Capital ItemsRecommendation 2b Century Place Power Generator(CPP 08-75-5400)

Due to the limit of power available in Century Place, a new power generator is needed. Funding is available to build the expansion to the generator room this year. However, the purchase of the generator is beyond the approved budget. The generator will not be installed until April, 2009, however a funding strategy needs to be in place for the entire project before construction can begin and the contract is awarded. This project does not qualify for MSI funding. It is recommended that this shortfall be covered by unallocated 2007 operating surplus ($0.77 million) and unallocated education tax room ($0.086 million).

$ 856

Recommendation 2c Omega System Replacement(CPP 07-18-0504)

The Omega claims system is outdated, will no longer be supported by the vendor and has to be replaced immediately. The new software will eventually be used as a Corporate wide incident and claim file repository for both insured and uninsured claims.

The new system currently has a budget for $0.25 million but an additional $0.25 million is required due to increased and unforeseen licensing costs. Financing through internal capital projects has been done and there will be no identified surplus in other projects to cover the additional spending. The project is currently in the process of tender and it is recommended that funding come from the unallocated 2007 operating surplus.

250

Recommendation 2d Lois Hole Library (CPP 05-20-0032)

The library is currently under construction and additional unanticipated costs for drainage, building envelope and structural design changes need to be covered. The library is scheduled to open in September. This project has been financed through tax-supported debt. The tax-supported debt reserve is recommended to cover this short-fall.

190

Capital Sub-Total $ 1,296Total One-time Issues $ 1,456


Attachment 3

Remaining Funds UnallocatedEducation Property Tax Room (unallocated) $ 856Tax-supported Debt Reserve 810

$ 1,666


Attachment 4

Non-Financial Performance – Glossary of Terms

Performance is the act of transforming inputs into value added outputs achieving desired outcomes.

Efficiency is the relationship between the planned resource requirements and the actual resources consumed to produce the output.

Effectiveness is the actual accomplishment of delivering acceptable outputs, on time, within the quality requirements specified producing the desired outcome.

Note: Calculation of Performance Performance is calculated for effectiveness as Actual/*Baseline x 100%. (Baseline

may be a target in some cases) If the outcome is to be minimized, performance is calculated using Baseline/Actual

x 100%. (Baseline may be a target in some cases) Performance is calculated for efficiency as Baseline/Actual x 100%. (Baseline may

be a standard in some cases) If an indicator such as “permits/FTE” or “accounts/FTE” is used, efficiency is

calculated as Actual/Baseline x 100%. (Baseline may be a standard in some cases)

Note: Baseline is defined to mean the selected comparator with the quarterly or annual actual for performance calculation purposes.


report for city council september 17, 2008...

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