regina budget brief

7/30/2019 Regina Budget Brief

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Budget in Brief

C I T Y A D M I N I S T R A T I O N S

P R O P O S E D 2 0 1 3 B U D G E T S

C I T Y A D M I N I S T R A T I O N S P R O P O S E D 2 0 1 3 B U D G E T

What it coststo run our city

It costs a lot to run a city. Everyyear there are major expensesthat include maintaining ourroads, providing water services,removing waste, providing reand police services, operatingleisure centres, keeping our busesrunning, planning for the futureand much, much more.

Capital andoperating budgetsIn order to continue investingresponsibly and building a sustainablefuture for our community, the CityAdministration is proposing a 4.45per cent mill rate increase for 2013. Ifapproved, this increase would bring theCitys capital and operating budgets to$424 million.

HIGHLIGHTS

In 2013, your tax dollars will pay for thefollowing:

$69.2 M for Regina Police Servicesoperations (as recommended by theBoard of Police Commissioners)

$40.3 M for Fire & Protective Servicesoperations

$37.8 M in repairs and maintenancefor roads, bridges and alleys

$18.2 M in managing waste andlandll

$17.9 M in maintaining andimproving parks and golf courses

$17.0 M in new road construction

$13.7 M in trac control safety

$11.3 M in maintaining andupgrading transit, re and civicvehicles

$8.8 M in repairing and upgradingCity facilities, including City Hall andsport facilities

$6.7 M in growth costs for landdevelopment

$3.2 M in starting curbside recyclingand moving forward with Waste PlanRegina

Water & SewerUtility budgetThe Citys water and sewer budgetis funded through the utility ratherthan through the Citys operating andcapital budgets. City Council previouslyapproved 9 per cent rate increasesfor 2011 to 2013. With the 9 per centincrease for 2013, the water and sewerbudgets total $142 million.

HIGHLIGHTS

In 2013, the utility rates and fees willcover:

$38.6 M in operating and upgradingthe water system, including $6.6 M topurchase water from Bualo PoundWater Treatment Plant

$15 M for maintaining and upgradingthe drainage system

$14.1 M for operating and upgradingthe wastewater treatment plant

$8.6 M in operating and upgradingthe wastewater collection system

With the proposed mill rate increaseand approved water rate increase,the Citys total budget for 2013 willbe $566 million.

Even with the increases, the Citysbudget remains quite limited.When building the budget, CityAdministration took the followingchallenges into account:

Aging infrastructure

Rising prices for supplies andservices

Continued growth

Residents service expectations

While the 2013 budgets allocatethe funding we do have wisely, itis not sustainable for the City tocontinue delivering our servicesat current service levels. In thepast infrastructure maintenanceand renewal has been deferred inan eort to maintain aordable

services. The Citys aginginfrastructure is now reachinga critical state and needs to bereplaced. The wastewater treatmentplant and the stadium are at the endof their lives, so we are rebuildingthem. Our roads also requiresignicant investment.


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Snapshot of theproposed capital andoperating budget

Build and maintain ourroads and bridges

Repairs and maintenance for existingroads and bridges

Road repairs $18.1 M

Winter road maintenance, includingsnow removal $6.3 M

Street sweeping and alleymaintenance $6 M

Asphalt services $4 M

Bridge repairs $3.2 M

Road extension and new construction

Victoria Avenue East, fromFleet Street to city limits $ 8.5 M

Chuka Boulevard (Primrose Drive toArens Road) $5.7 M

Parliament Avenue extension(Harbour Landing Drive to James

Hill Road) $2.8

Trac control and safety

Safety improvements along 9thAvenue North $2.2 M

Trac signal investments $1.3 M

Support safe communities

Regina Police Service

Regina Police Service operations,including emergency response,quality investigations, responseto non-emergency calls, trac

safety, crime prevention andcommunity building $69.2 M (asrecommended by the Board of PoliceCommissioners)

Fire & Protective Services

Department operations, includingemergency planning and reservices $40.3 M

Fire eet replacement $0.9 M

Deliver services thatenhance quality of life

Garbage, recycling andWaste Plan Regina

Waste collection systemoperation $9.4 M

Landll investments, includingclosing existing landll anddeveloping new landll $5 M

Landll operation $3.8 M

Recycling and other Waste PlanRegina programs $3.2 M

CurbsiderecyclingwillbegininJuly2013forallresidentsthathaveCitygarbagecollection.By2016,WastePlanReginawillalsoincludeprogramsforrecyclingformulti-familyhomes,leafandyardwaste,householdhazardouswasteandbulkywaste.

Parks, recreation and communitydevelopment

Operation and maintenance ofour sports, culture and recreationfacilities $16.4 M

Operation and maintenance of ourparks and open spaces $14.3 M

Community investment fundthat provides nancial support toapproximately 200 community andpartner organizations $7.6 M

Open space restoration $0.7 M

Recreation facility improvements $0.5 M

Transit system

Transit system operation andmaintenance $28.5 M

Bus replacement and repairs $4.4 M

Grow our city responsibly

With its strong economy and highquality of life, Regina is attractingthousands of new residents andgrowing rapidly. Along with expandingour services to new areas, we are alsomanaging growth through carefulplanning and development.

Regina Revitalization Initiative

Regina Revitalization Initiative toredevelop land in the heart ofRegina $1.4 M

TheReginaRevitalizationInitiativeisaboutmorethanastadium.Itcreatesanopportunityforinvestmentintheheartofthecity,andtheabilitytorejuvenateaninner-cityneighbourhood.RRIwillchangetheheartofourcommunityforgenerationstocome.Itwillconnectneighbourhoodsitwillconnectfacilitiesitwillconnectpeoplewithopportunitiesforbusinessandinvestment.

Design Regina

Moving forward with Design Regina,the citys ocial community plan $0.4 M

DesignRegina,thecitysnewocialcommunityplan,willbeapprovedbyCouncilbytheendof2013.Thisplan,informedbyCommunityPrioritiesdevelopedthroughanextensivepublicengagementprocess,willguidegrowthandchangeinReginaforthenext25

yearsandinformdecisionsonCityinvestments,services,andactionstowardsachievingourVision.Publicengagementwillcontinuetobeapartoftheprocessin2013.

Land development

Ross Industrial development $6.3 M

North Argyle land development $0.4 M

Snapshot of theproposed Water &Sewer Utility budget

Provide reliablewater service

The Citys water and sewer budgetis funded through the utility ratherthan through the Citys operating andcapital budgets. The utility provideswater, wastewater and drainageservices for our community.

Water investments

Water treatment, pumping andsystem operation $21 M

Bualo Pound Water TreatmentPlant upgrades $10 M

Underground waterline renewal $4.9 M

Adding new or bigger water mains ingrowing areas (all construction costsfunded through developers) $0.7 M

Utility billing system upgrade thatincludes ebilling $0.1 M

Wastewater investments

Wastewater treatment plantoperations $8.9 M

Wastewater collection operations $5.5 M

Wastewater treatment plantimprovements $5.3 M

Wastewater collectionimprovements $3.1 M

TheCityisplanningasignicantinvestmentinthewastewatertreatmentplanttomeetnewregulatoryrequirements,protectpublichealthandourenvironment,addressconcernsofdownstreamresidentsandbusinesses,andmeettheneedsofourgrowing

populationnowandforthefuture.Theupgradesareestimatedtocost$207million+/-15percentbasedonconstructionstartingin2014andcompletingin2016.

Drainage investments

Impr oving drainage forVictoria Avenue and Highway #1underpass $6 M

Greens on Gardiner detentionpond $1.3 M

Harbour Landing detentionponds $1.7 M

Utility rate facts

Funding for the utility is primarily utility bills, with additional fundinfrom sources including rates, granand developer fees.

Utility bills 89 per cent

Developer fees 6 per cent

Other, includinggrants, fees andinterest earned 5 per cent

Here is a summary of where theutility money will go in 2013:

Reserve transfers 35 per cent

Water 27 per cent

Other (includes Administration) 12 per cent

Drainage 11 per cent

Wastewatertreatment 10 per cent

Wastewatercollection 6 per cent

While the City will need to make minfrastructure investments in thecoming years, we have been prepafor this work and have set aside $4million in the utility reserves that whelp oset the costs.

C I T Y A D M I N I S T R A T I O N S P R O P O S E D 2 0 1 3 B U D G E T C I T Y A D M I N I S T R A T I O N S P R O P O S E D 2 0 1 3 B U D G E T

2009 2010 2011 2012 20135 Year

Average

Calgary 5.30% 4.79% 4.60% 6.00% 5.50% 5.24%

Edmonton 7.30% 5.00% 5.00% 5.20% 3.30% 5.16%

Red Deer 7.05% 3.31% 3.98% 4.32% - 4.67%

Saskatoon 3.41% 3.86% 3.99% 4.00% 4.99% 4.05%

Regina 0.00% 4.00% 4.00% 3.90% 4.45% 3.27%

Average 4.61% 4.19% 4.31% 4.68% 4.56% 4.48%

Mill rate comparisonHere is how the Citys proposed mill rate increase compares to previous years.


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Tax factsMunicipal taxes are only a small

portion of the total taxes residentspay. Since cities have limited ways toincrease revenue, tax increases arenecessary for growth, maintenanceand rising costs.Your taxes breakdown like this:

Federal Tax 56.4 per cent

Provincial Tax 38.3 per cent

Municipal Tax 5.3 per cent

* Based on 2012 tax rates

The City of Regina receives just overhalf of the property tax you pay. Theremainder goes to the School Boardsand Regina Public Library.

City of Regina 53 per cent

School Boards 41 per cent

Regina Public

Library 6 per cent

* Based on 2012 tax rates

Here is the breakdown of where yourtax dollars are going in 2013:

Regina PoliceService 20 per cent

Fire & ProtectiveServices

19 per centParks, recreation& culture 16 per cent

Bridges & roads 15 per cent

Transit 13 per cent

Managing growth &development 9 per cent

Landll & solid waste 8 per cent

Provincial fundingIn 2013 the City expects to receive$40.8 M from the Provinces municipaloperating grant. This grant iscalculated based on a percentageof PST collected. Our annual grantdepends on Saskatchewans economyand is at risk during slower economictimes.

What does a 4.45 per centmill rate increase cost?If the proposed mill rate is approved,the average household with a currentvalue of $285,000 will pay $1,479 peryear in City of Regina property taxes.

*Pleasenote:ThesepropertytaxnumbersonlycovertheamountpaidtotheCityofRegina,whichis53percentofthetotalmunicipalpropertytaxyoupay.TheSchoolBoardandReginaPublicLibraryhavenotyetestablishedtheir2013rates.

For the average taxpayer, a 4.45per cent increase means an additional$5.25 for the City of Regina each

month, or $63 a year.

ReassessmentAssessment is the value placed on aproperty that is used to determine howmuch property tax you pay. Provinciallegislation requires that propertyvalues must be updated every fouryears, and 2013 is a reassessment year.Reassessment is a revenue-neutralprocess that distributes taxes soowners of properties with similar valuespay similar taxes.

ReservesThe General Fund Reserve is theprimary, general-purpose nancialreserve maintained by the city. Thisreserve operates like a savings account.The budgeted balance in the GeneralFund Reserve will be $23.4 million afterthe 2013 operating and capital budgetprovisions.

How the capital andoperating budgetchanges will aect you

The General Fund Reserve representsless than seven per cent of the Citysannual operating revenue. In the pastthis reserve has been used to supportvarious projects, including deepeningWascana Lake through the Big Dig.

Maintaining reserve funds is sound,prudent nancial management. The

forecasted 2013 total for all Cityreserves including the Utility Reserveis $111.6 million. With the exceptionof the General Fund Reserve, all fundsset aside in the City reserves have apredetermined purpose.

C I T Y A D M I N I S T R A T I O N S P R O P O S E D 2 0 1 3 B U D G E T

Current valueof your home

$200,000* $285,000* $450,000*

2013 City ofRegina propertytaxes*

$1,038 $1,479 $2,336

City of Regina4.45 per centmill rate increasein 2013

$44 $63 $99

DebtThe City is bound by law with respectto its debt level. In 2012 the Provincialgovernment increased the Citys

maximum debt balance to $350million from $200 million. The Citysdebt balance for the end of 2012 isprojected to be $81.6 million.

Get involved and nd

out moreYou can access the completeproposed 2013 budgets online atRegina.ca. The capital budgets covercosts for maintaining and improvingcity infrastructure, while the operating

budgets include ongoing costs.

The proposed 2013 budgets will goto Executive Committee on Monday,January 21. The budgets will then betabled at a City Council meeting andwill go back to Council for approval inFebruary.

All of the budget meetings will takeplace at 5:30 p.m. in Henry Baker Hallat City Hall. Residents are welcometo attend. To appear as a specialdelegation and make a presentationat one of the City Council budgetmeetings, please call 777-7262.

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