Report to / Rapport au :

 

Finance and Economic Development Committee

Comité des finances et du développement économique

 

and Council / et au Conseil

 

 30 May 2011 / le 30 mai 2011

 

Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière municipale

 

Contact Person/Personne ressource : Mona Monkman, Deputy City Treasurer - Corporate Finance/Trésorière municipale adjointe – Finances municipales

Finance Department/Service des finances

613-580-2424 ext./poste 41723, Mona.Monkman@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2011-CMR-FIN-0029

 

 

SUBJECT:

LONG-RANGE FINANCIAL PLAN IV (PART 1)

 

 

OBJET :

PLAN FINANCIER À LONG TERME IV (PARTIE 1)

 

 

REPORT RECOMMENDATION

 

That the Finance and Economic Development Committee recommend Council adopt the 2012 to 2014 operating budget strategy as outlined in the attached report, which includes the following:

 

a.      The increase in the municipal portion of the tax bill will be a maximum 2.5% increase per year.

 

b.      All new operating budget needs will be established through Council’s strategic initiatives setting process.

 

c.       The annual operating budget envelope for Council’s Strategic Initiatives will be increased by the value of the Provincial upload in each of the next three years.

 

d.      The annual capital budget envelope for Council’s Strategic Initiatives will be limited to the $34 million envelope as identified in the 2011 capital budget.

 

e.       That the City Manager be directed to work with the Mayor’s office to develop draft annual budgets consistent with the Long-Range Financial Plan, identifying any unforeseen issues and recommending any additional strategies that may be required to achieve Council’s direction.

 

f.       That, as part of the annual budget process, the budget allocation for all local Boards and Commissions be based on their individual pro-rated share of a 2.5% tax increase and an estimated 2% increase in taxes resulting from growth in assessment, and that Council request that these Boards and Commissions develop their draft budgets within their annual allocation.

 

 

RECOMMANDATION DU RAPPORT

 

Que le Comité des finances et du développement économique recommande que le Conseil adopte la stratégie du budget de fonctionnement de 2012 à 2014 décrite dans le rapport joint qui comprend les points suivants :

 

a.      L’augmentation de la partie municipale du compte de taxes sera de 2,5 % au plus par année.

 

b.      Le processus déterminant les initiatives stratégiques du Conseil précisera tous les nouveaux besoins du budget de fonctionnement.

 

c.       L’enveloppement du budget de fonctionnement annuel pour les initiatives stratégiques du Conseil augmentera d’un montant équivalent à celui du transfert provincial en amont pour chacune des trois années à venir.

 

d.      L’enveloppe du budget des immobilisations annuel pour les initiatives stratégiques du Conseil sera limitée à 34 millions de dollars, montant déterminé dans le budget des immobilisations 2011.

 

e.       Que l’on demande au directeur municipal de collaborer avec le bureau du maire pour élaborer les budgets préliminaires annuels conformes au plan financier à long terme, d’identifier les enjeux imprévus et de recommander les stratégies supplémentaires qui peuvent être nécessaires pour réaliser l’orientation du Conseil.

 

f.       Dans le cadre du processus budgétaire annuel, que l’affectation budgétaire pour tous les conseils et commissions locaux soit déterminée selon leur part individuelle au prorata de l’augmentation de 2,5 % des taxes et d’une augmentation de l’impôt foncier estimée à 2 % tirée de l’évaluation à la hausse, et que le Conseil municipal demande à ces conseils et commissions d’élaborer leur budget préliminaire sans dépasser le montant annuel attribué.

 

 

BACKGROUND

 

The new Council has already provided some direction with respect to the development of a Long Range Financial Plan.  At the December 18, 2010 Council meeting, Council adopted a motion in preparation for the 2011 budget.  That motion included the following:

 

BE IT FURTHER RESOLVED that the Long Range Financial Plan be developed with a maximum tax increase of 2.5% for the years 2012 to 2014.

 

The full text of the motion is reproduced in Document 1 attached to this report.

 

Council is also currently proceeding with the review of strategic priorities for the 2011-2014 term of Council.  Council adopted a Corporate Planning Framework at its meeting of May 25, 2011.

 

 

DISCUSSION

 

The first update of the Long Range Financial Plan is presented in this report as Document 1 - LRFP IV (Part 1). 

 

That report provides information that will be used in order to:  

 

The first section of the LRFP in Document 1 deals with the 2012 to 2014 operating budget forecast and the strategy to stay within the 2.5% tax target over the term of Council. 

 

As well, Document 1 speaks to the funding envelopes for capital strategic initiatives, since this information will also be required to inform the strategic priorities review process.

 

The Transit operating and capital long range plan will come forward in conjunction with the reports on the cost of the new Light Rail project and will provide an assessment of the overall Transit affordability for the next 30 years.  In the fall the rate supported long-range plan will come forward as will the long-range capital plan for city-wide funded projects.  The last two reports have been delayed in order to benefit from a rigorous internal review of capital needs through the development of a state of asset report and asset management framework. 

 

 

RURAL IMPLICATIONS

 

There are no rural implications as a result of this report.

 

 

CONSULTATION

 

Consultation will occur during the annual budget process.

 

 

COMMENTS BY WARD COUNCILLOR(S)

 

N/A

 

 

LEGAL IMPLICATIONS

 

There are no legal impediments to implementing the recommendations of this report.

 

 

RISK MANAGEMENT IMPLICATIONS

 

There are no risk implications.

 

 

FINANCIAL IMPLICATIONS

 

There are no direct financial implications arising from this report.  Financial information is provided throughout the report to set the context of the forecasted financial situation of the City.

 

 

CITY STRATEGIC PLAN

 

The report informs the strategic priorities review process for the City.

 

 

TECHNICAL IMPLICATIONS

 

N/A

 

 

SUPPORTING DOCUMENTATION

 

DOCUMENT 1 - LRFP IV (Part 1)

 

 

DISPOSITION

 

Information contained in this report will be utilized during the strategic priorities review process and during the 2012 to 2014 budget process.