City releases proposed adjustments to 2014 business plans and budgets

Today, City Administration released its proposed adjustments to the 2014 business plans and budgets for City Council’s consideration when deliberations begin to set the 2014 budget.

The City’s multi-year business plan and budget process enables a future-oriented and sustainable approach to providing City services through Council's approval of three year integrated plans and budgets. The proposed adjustments allow The City to remain flexible in responding to changes in the external environment while continuing to maintain a longer-term perspective in implementing the final year of its 2012-2014 business plan and budget.

The socio-economic outlook for Calgary has remained fairly stable throughout the 2012-2014 Business Plan and Budget Cycle. On 2013 June 20, Calgary experienced a major flood. As a consequence, a total of $182.4 million in flood-related capital expenditures was approved in 2013. At that time, Administration indicated that additional flood related projects would be brought forward for approval in the 2014 Adjustments report.

Accordingly, Administration is proposing both regular non-flood adjustments as well as some flood-related adjustment requests, for the for the 2014 Adjustments process. “Administration has proposed adjustments to 2014 business plans and budgets based on previous Council direction, and Council will make the decision on what the final tax rate will be”, says Eric Sawyer, The City’s Chief Financial Officer.

Proposed non-flood adjustments to the 2014 operating budget include:

55,000 additional transit service hours including an increased frequency of busses to reduce wait times and 10,000 additional Access Calgary rides to meet increased demand for accessible transit service across Calgary. Increased revenue from ridership will be used to fund this increase in transit service hours and to improve safety and enforcement.
$683 thousand one-time adjustment for the Heritage Park 50th Anniversary Project comprised of hundreds of special events throughout the year designed to support cultural tourism, culture products development, festival events, and tourism marketing.
$315 thousand one-time adjustment to sustain the operational integrity of the EPCOR Centre through 2014, to help offset the impact of the Government of Alberta’s elimination of the Major Facilities Operating Grant.
$150 thousand one-time adjustment for Tourism Calgary/Calgary Sport Tourism Association to promote Calgary’s capacity to host sporting events and attract events that stimulate economic activity, extend the city’s profile, and improve overall quality of life in the community.

Proposed non-flood adjustments to the 2014 capital budget include:

Commence the design and construction of the Glenmore Trail and Ogden Road interchange, and adjacent roadways, with $20 million in 2014, toward the total project cost of $102 million, to improve the operational efficiency of the transportation network, as previously prioritized and approved by Council in the Investing in Mobility Plan.
Preapproval of $65 million in self-supported debt to fund the Biosolids Dewatering Facility in 2015 and 2016, as per previous 2013 Council and Committee reports. Pre-approval of capital funding is necessary to support preliminary design work required to meet scheduled timelines.
Preapproval of $49 million in self-supported debt to fund the Bowness Sanitary Sewer Upgrade in 2015 and 2016, to eliminate the capacity constraint in Bowness and allow for projected growth, as per a previous 2013 Council report. Pre-approval of capital funding is necessary to support preliminary design work required to meet scheduled timelines.
Preapproval of $5.2 million in self-supported debt to fund the Bowmont East Stormwater Quality Retrofit project in 2015, to reduce the sediment loading to the Bow River as per previous Council report. Pre-approval of capital funding is necessary to support preliminary design work required to meet scheduled timelines.
$3 million from the DBA Sustainment Reserve Fund for Phase 2 of ePermit enhancements enabling PDA to expand online permit offerings to provide better service to Calgarians.
$2 million from the DBA Sustainment Reserve Fund to streamline information intake in PDA with the creation of a Development Agreement database, to help ensure timely and accurate information for customers and staff.
$2 million from the 9-1-1 Communication Centre Capital Financing Reserve for technology upgrades to improve safety and service to Calgarians.

The proposed adjustments report also includes requests for approval of an additional $134.2 million in flood-related capital projects in 2014. It also includes, for information, $128.5 million in future (i.e. 2015 and beyond) flood related capital projects -- again, future year costs are still preliminary, and so approval of these is not requested at this time.

“While The City estimates that funding requirements will be recovered from third party sources, such as insurance claims and the Province’s Disaster Recovery Plan, there remains uncertainty about how much and how soon such third party funds will be available”, says Sawyer.

Proposed flood related adjustments to the 2014 operating budget, include:

$2.6 million for a one-time increase to the UEP operating budget including, $278 thousand for Bow River cleanup expected to be funded from the Disaster Recovery Program and, $2.3 million funded from the Utilities sustainment reserve is for the River Flood Mitigation Panel to bring forward recommendations on how to mitigate future flooding.
$520 thousand one time operating adjustment to cover lost revenue from the closure of the Talisman Centre aquatics areas. This funding request is a placeholder as it is estimated that this amount will be covered under business continuity insurance.

Proposed flood related adjustments to the 2014 capital budget, include:

$65.9 million capital funding to restore riverbanks and repair water infrastructure to pre-flood levels. The majority will be recovered from insurance, the Provincial Flood Recovery Erosion Control Program and the Disaster Recovery Program.
$20.2 million of the $65.9 million needs to be funded by the Water utility, for which UEP is requesting a 4% increase to the approved 2014 drainage service charge. This translates into an increase of $0.35 per household per month on the drainage utility bill.
$13.9 million to restore recreation infrastructure at Shouldice Athletic Park, at Maple Ridge Golf Course and at Shaganappi Point Golf Course.
$10.8 million to repair flood damage at City parks including Prince's Island Park and Bowness Park, and $12.9 million to repair flood impacted pathways.
$7.9 million additional funds to cover estimated replacement costs for the Rideau Park, Riverdale Avenue and Sandy Beach pedestrian bridges, all which sustained significant damage during the June 2013 flood.
$4.2 million to continue to repair flood damaged buildings and replace contents at the Calgary Zoo in 2014.
$2.7 million capital funding to continue to repair significant damage to structural, electrical and mechanical infrastructure at the Talisman Centre in 2014. This funding request is a placeholder as it is expected this item will be covered under insurance.
$1.5 million to repair flood damage and repair or replace contents at the Calgary Public Library. This funding request is a placeholder as it is expected this item will be covered under insurance.

Visit www.calgary.ca/2014adjustments to see highlights of the proposed adjustments or to download the full report on proposed 2014. Citizens are invited to share their comments online or provide feedback by calling 3-1-1.

City Council will meet to review and debate the proposed 2014 adjustments beginning on 2013 November 25 at 9:30 a.m. following a non-statutory public hearing in Council Chambers. Citizens who wish to make a verbal or written submission to Council are invited to attend the non-statutory public hearing in Council Chambers at 9:30 a.m. For questions regarding public submissions and meeting procedures, please contact the City Clerk’s office at (403)268-5861.

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