APPROVED - City of St. Albert

February 27, 2016
APPROVED
2016-18 BUSINESS PLAN
2016 BUDGET
City Council approved the 2016 municipal and utility operating and capital budgets on
December 14, 2015. The 2016 Budget maintains important services for businesses
and residents and also provides the City with resources to make progress towards
the Community Vision and to achieve Council’s priorities in the areas of economic
development, community development, environment and governance. The 2016-2018
City Business Plan and 2016 Budget focuses on maintaining services, and prudent
fiscal management.
“This year’s budget will involve a projected residential tax increase of 0.2 per cent and utility rate reduction
of 1.6 per cent, which is taking a conservative approach to the coming year, and is amongst the lowest in
the capital region. Opportunities for public input throughout the budget process were provided through
a round table discussion, at a townhall meeting and at various budget meetings in November. We thank
all St. Albert residents who participated with their time and valuable input. Council approved this budget
so we are able to provide residents with maintained service levels and a limited spending increase. And, as
always, we will continue to provide residents with effective and efficient operations so we make the best
possible use of their tax dollars.”
– Mayor Nolan Crouse, on behalf of St. Albert City Council
MUNICIPAL PROPERTY TAX
Residential municipal property taxes will increase by 0.2 per cent. This increase to the budget is to maintain current operations
and services. Service enhancements or new initiatives are funded from new assessment growth. Highlights can be found on the
following pages.
For a home assessed at $400,000, this represents an approximate increase of $8.00 in property taxes a year (see Table 1) or
approximately $0.67 per month (see Table 1). An individual property owner, whose assessment changes by an amount similar to the overall
average, will experience a municipal tax increase that is also average.
Non-residential municipal property taxes will increase by 0.2 per cent. Similar to the residential class, this increase represents the tax increase
required to maintain current operations and services.
The actual tax rates will be finalized by Council in May 2016 after the assessment growth is confirmed, and the City receives the requisitions
for the provincial education tax from the Province and the Sturgeon Foundation levy from the Foundation. Combined Assessment and Tax Notices
will be sent to property owners at the end of May.
TABLE 1*
CHART 1 – SOURCES OF REVENUE
IMPACT OF A 0.2% MUNICIPAL RESIDENTIAL PROPERTY
TAX INCREASE
Property
Assessed
Value
2015
2016
Annual
Change
Home
$100,000
$763
$765
$2
Home
$400,000
$3,052
$3,060
$8
Home
$600,000
$4,578
$4,590
$12
Residential property taxes will contribute an estimated 53.6 per cent
of the operating budget and non-residential property taxes an estimated
12.1 per cent. Together, municipal property taxes represent approximately
65.7 per cent of the total City revenue.
IMPACT OF A 0.2% MUNICIPAL NON-RESIDENTIAL PROPERTY
TAX RATE INCREASE
Property
Assessed
Value
2015
2016
Annual
Change
Warehouse
$900,000
$9,477
$9,499
$22
Restaurant
$2,000,000
$21,062
$21,109
$47
*Figures include municipal taxes and the Servus Place levy but exclude the education tax
and Sturgeon Foundation levy as these requisitions have not yet been received by the City.
Residential Property Taxes - 53.6%
PROPERTY TAX BASICS
Your total property tax includes: the municipal tax, the Servus
Place levy, the Sturgeon Foundation levy, and the provincial
education tax. St. Albert is responsible for collecting these taxes
and levies. The projected 0.2 per cent tax increase relates only to
the municipal tax and the Servus Place levy as the education and
Foundation rates are not set by the City. The Province and the
Foundation will advise the City of their requisition amounts in
early 2016 and these will be shown on the Assessment and Tax
Notice that you will receive in May.
Non-residential Property Taxes - 12.1%
Sales, User Fees, Fines & Penalties - 20.0%
Other Revenue - 4.2%
Government Transfers - 4.2%
Interest Income - 1.8%
Licenses & Permits - 1.8%
Franchise Fees - 1.6%
Transfers To/From Reserves - 0.7%
APPROVED 2016-18 BUSINESS PLAN + 2016 BUDGET | CITY OF ST. ALBERT
BUDGET 2016 HIGHLIGHTS
MUNICIPAL OPERATING BUDGET
The Municipal Operating Budget provides required resources to
deliver municipal programs and services to the community. Council
approved a 2016 budget of $141.6 million. Based on the approved
budget, it is expected residential taxes will increase approximately
0.2 per cent and non-residential taxes will increase approximately
0.2 per cent in 2016. Council approved 21 business cases, which are
requests for additional resources, most of which are funded through
new assessment growth and have no impact on property taxes.
Examples of these business cases include new employee positions to
maintain service levels to a growing community, such as:
• Municipal Enforcement Services
○○ additional resources to address growing requirements in the
areas of education, preventative response and infrastructure
protection.
• Public Works
○○ additional resources assigned to tree maintenance,
monitoring, and overall management for one of
St. Albert’s most important assets.
• Cultural Services
○○ a youth festival to support Council’s directive to nurture
St. Albert’s future cultural leaders, artists, volunteers and
audiences.
• Transit
○○ Saturday Handibus Local Service to expand the hours
of operation to include Saturday daytime service within
St. Albert.
MUNICIPAL CAPITAL BUDGET
The Municipal Capital Budget provides required resources to maintain
and expand municipal infrastructure to the community, such as roads
and facilities. Council approved a 2016 municipal capital budget
of $31.9 million. This is made up of a RMR capital budget of $19.9
million (which is used to repair, maintain and replace existing capital
infrastructure) and a growth capital budget of $12.0 million (which is
used to support future need).
The RMR projects are related to maintaining current service levels,
required by lifecycle plans, and are considered a replacement or
rehabilitation of equipment/infrastructure. Funded RMR projects
include, but are not limited to, the following:
• Engineering
○○ a collector construct program which entails a total rebuild of
roads identified for reconstruction.
○○ a collector and arterial asphalt overlay program which entails
a cost-effective method to extend the life of a roadway by up
to 15 years.
○○ and a sidewalk repair program which entails repairing and/or
replacement of sections of sidewalk based on areas with the
highest density of hazards.
○○ a project addressing the erosion, bank stabilization and the
repair of wooden structure at Lacombe Lake.
• Cultural Services
○○ a revitalization of Progress Hall which includes an update and
refurbishment to architectural and performance elements
and amenities.
Projects related to growth are capital initiatives that are required to
meet future demand relating to facilities, equipment, technology,
and infrastructure for developing, cultivating and strengthening the
community. Funded municipal growth projects include, but are not
limited to, the following:
• Engineering
○○ Safe Journeys to School addresses the prioritization and
implementation of various engineering strategies to enhance
pedestrian and cyclist traffic safety throughout school zones
and communities.
• Library
○○ a community branch library for the growing community. It
is envisioned to be a family campus: a place for families to
learn, to play, to build and create, to improve themselves and
the City. Construction is planned for 2018.
○○ a Mobile Outreach Library Van will provide literacy outreach
throughout the City, addressing increased demands for
services and fostering community connections.
• Planning & Development/Public Works
○○ development of municipal Universal Access and Visibility
Guidelines.
• Public Works
○○ the purchase of plow truck side wings to improve the
effectiveness of City staff clearing snow from the roadways.
• Recreation
○○ a sixth arena ice surface to meet community demand.
Construction is planned for 2018.
○○ improvements to the exterior of Servus Place that will allow
for more external marketing opportunities, communicating
with visitors about upcoming events/activities and strengthen
the brand of the building.
○○ the construction of the Riel Park Amenities Building to provide
enhanced and additional opportunities for field users and the
City.
UTILITY OPERATING BUDGET
The Utility Operating Budget provides required resources to
deliver utility services such as solid waste removal, drinking water,
wastewater and storm water services to the community. Council
approved a 2016 Utility Operating Budget of $39.2 million.
UTILITY CAPITAL BUDGET
The Utility Capital Budget provides required resources to maintain
and expand utility infrastructure and service levels to the community.
Council approved a 2016 utility capital budget of $18.3 million. This
is made up of a RMR utility capital budget of $18.3 million (which
is used to repair, maintain and replace existing utility infrastructure)
and a growth utility capital budget of $0.03 million (which is used
to support needs of current residents and which is funded from the
Utility Capital Reserve). Funded RMR projects include:
• upgrades to stormwater infrastructure in older neighbourhoods to
meet the City’s stormwater level of service standards, as well as
modern design standards and management guidelines. This will
involve adding capacity to prevent basement flooding.
Only one project was funded to support future need:
• an enclosed mobile support trailer for transporting construction
materials.
The impact of the 2016 Utility Operating and 10-Year Utility Capital
Plan will equate to an approximate 1.6 per cent net decrease to the
typical residential customer on their utility bill.
APPROVED 2016-18 BUSINESS PLAN + 2016 BUDGET | CITY OF ST. ALBERT
FEES AND CHARGES
Council approved a 2 per cent overall increase to the 2016 fees and charges or
about $122,000 in new revenue. Sales, user fees, fines and penalties represent
about 20.0 per cent of the City’s revenue mix (see Table 1).
Examples of fee increases include a $1.95 increase to $89.00 for a development
fee to build a fence; a $3.70 increase to $195.00 in the development fee to
renovate or add a new basement suite; a $3.00 increase to $138.00 in the
business licence fee; and $1.25 increase to $72.25 for a monthly local (within
St. Albert) transit pass. However, some fees remain the same; for example, police
information check fee, and animal bylaw licence fee.
UNDERSTANDING YOUR UTILITY BILL
Average residential utility rates in 2016 are 1.6 per cent lower than
in 2015 based on a single family household with 20m3 of water use
and a 240L garbage subscription. The proposed rate would result in a
utility bill that is $2.61 lower each month.
THE 2015 APPROVED AND 2016 APPROVED UTILITY RATES ARE
AS FOLLOWS:
TABLE 2
MONTHLY UTILITY RATES
2015
2016
Water Rates
Your utility bill shows four services – water, wastewater, storm water
and solid waste.
Flat rate
$9.76
$9.76
Water rate (per cubic metre)
$1.60
$1.60
For each of these four services, there are three charges: a variable
rate, a flat rate and a supplementary capital contribution fee.
Supplemental Capital Contribution
$11.63
$10.69
Flat rate per month
$9.67
$9.90
Wastewater rate – 80% (per cubic metre)
$2.02
$2.06
Wastewater rate – 100% (per cubic metre)
$1.61
$1.65
Supplemental Capital Contribution
$3.59
$1.94
Residential – single/side-by-side
$15.79
$15.79
Residential – stacked/condo
$10.86
$10.86
Non-Residential (Industrial/Commercial)
$42.24
$42.24
$5.09
$5.38
Flat Rate
$7.13
$7.24
• 50 Litre Container
$1.06
$1.10
• 129 Litre Container
$4.50
$4.64
• 240 Litre Container
$9.27
$9.56
Refuse Stickers
$2.25
$2.25
Recycling Program
$4.90
$4.91
Curbside Organics
$5.72
$5.80
Supplemental Capital Contribution
$3.50
$1.96
$150.34
$147.92
Each of these charges is explained in more detail below:
Variable Rate – The incremental costs of goods/services purchased
in water (EPCOR), wastewater (Alberta Capital Region Wastewater
Commission) and solid waste (contractors) will be added to
households’ respective variable rates. As consumption by residents
can vary, linking the quantity to variable rates minimizes variances.
Flat Rate – The costs of ongoing operations, identified for each of
the four services, is forecasted and the incremental cost versus the
previous year is added to the fixed rate on a pro-rated basis based on
the number of customers forecasted for the year. This will distribute
the overhead costs over an increasing customer base. As operations
is a fixed expense, linking the increase to the flat rate ensures
minimal revenue variances.
Supplemental capital contribution fee – This is a per-customer
contribution for capital projects to keep existing water, wastewater and
storm water infrastructure in required condition. The money collected
in this category is used to support the utility capital projects required
over the next 10 years.
Wastewater Rates
Storm Rates
Supplemental Capital Contribution
Solid Waste Rates
Other
Average Monthly Bill*
*The average monthly bill is based on water use of 20m3 and 240L container option for
solid waste.
APPROVED 2016-18 BUSINESS PLAN + 2016 BUDGET | CITY OF ST. ALBERT
HOW YOUR TAX DOLLARS ARE PUT TO WORK
THE MUNICIPAL COMPONENT OF THE PROPERTY TAX HELPS TO PAY FOR CITY SERVICES, PROGRAMS AND INFRASTRUCTURE.
The Property Tax Allocation graph shows a house assessed at
$100,000 pays $765 annually ($64 per month) in municipal tax.
The residents of that house are paying about $109 a year for fire and
about $70 for police protection (police have revenues that help offset
the cost). The residents of this house also pay about $120 a year for
public works services such as snow removal, street cleaning, road,
sidewalk, park and recreational facilities maintenance.
The Property Tax Allocation graph shows a house assessed at
$400,000 pays $3,060 annually ($255 per month) in municipal tax.
The residents of that house are paying about $436 a year for fire
and about $280 for police protection (police have revenues that help
offset the cost). The residents of this house also pay about $512 for
public works services such as snow removal, street cleaning, road,
sidewalk, park and recreational facilities maintenance.
PROPERTY TAX PER $100,000 OF ASSESSED
HOME VALUE
PROPERTY TAX FOR A HOUSE ASSESSED AT $400,000
SERVICES
SERVICES
Public Works
Public Works
$128
Fire Services
Police Services
Outside Agencies
$180
Recreation and Parks
$124
Cultural Services
$22
Family & Community Support Services
$200
Engineering Services
$45
$31
Cultural Services
$268
Outside Agencies
$50
Recreation and Parks
$280
Transit Services
$67
Engineering Services
$436
Police Services
$70
Transit Services
$512
Fire Services
$109
$88
Family & Community Support Services
$9
$36
Planning & Development
$8
Planning & Development
$32
Economic Development
$6
Economic Development
$24
$6
Environment & Sustainability
$
Environment & Sustainability
$20
$40
$60
$80
$100 $120 $140
CENTRAL ADMINISTRATION
$24
$
$100
$200
$300
$400
$500
$600
CENTRAL ADMINISTRATION
Capital Financing & Common & Fiscal
$75
Information Technology Services
Capital Financing & Common & Fiscal
$32
Human Resources
Information Technology Services
$24
Financial Services
$21
Legal Services
$300
$14
$128
Human Resources
$96
Financial Services
$84
Legal Services
City Manager’s Office
$9
City Manager’s Office
Corporate Communications
$9
Corporate Communications
Legislative Services
$8
Legislative Services
$56
$36
$36
$32
Community Services Admin
$6
Community Services Admin
$24
Corporate Strategic Services
$6
Corporate Strategic Services
$24
Council
$6
Corporate Planning
Council
$3
Assessment & Taxation Services
$24
Corporate Planning
$1
$12
Assessment & Taxation Services
$ $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
$4
$
$50 $100 $150 $200 $250 $300 $350 $400
YOUR CITY COUNCIL
Residents always have the opportunity to contact the Mayor and Councillors directly:
Mayor Nolan Crouse
PHONE 780-459-1606
EMAIL [email protected]
@stalbertmayor
Councillor Wes Brodhead
PHONE 780-915-9622
EMAIL [email protected]
@Wes_Brodhead
Councillor Cathy Heron
PHONE 780-288-6791
EMAIL [email protected]
@CathyHeron
Councillor Sheena Hughes
PHONE 780-240-9889
EMAIL [email protected]
@HughesSheena
City of St. Albert
St. Albert Place
5 St. Anne Street
St. Albert, AB T8N 3Z9
780-459-1500
Councillor Cam MacKay
PHONE 780-721-8679
EMAIL [email protected]
@MacKayCam
Councillor Tim Osborne
PHONE 780-667-1496
EMAIL [email protected]
@tim_osborne
Councillor Bob Russell
PHONE 780-994-3331
EMAIL [email protected]
Follow us on:
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To contact Administration call 780-459-1500 or email [email protected].
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