HomeMy WebLinkAboutPost-Meeting Agenda Package - CoW_Dec03_2024COMMITTEE OF THE WHOLE POST-MEETING AGENDA
Tuesday, December 3, 2024, 8:30 a.m.
1600 2nd Street NE
Three Hills, AB T0M 2A0
https://www.youtube.com/@kneehillcounty48
Pages
1.Call to Order
1.1 Approval of Agenda
1.2 Approval of Minutes
1.2.1 Approval of the November 19, 2024, COW Meeting Minutes 2
2.New Business
2.1 2025 Budget – Additional Information 6
2.2 STIP Application
3.Closed Session
4.Adjournment
__________Initials
1
Committee of the Whole Minutes
November 19, 2024, 8:30 a.m.
1600 2nd Street NE
Three Hills, AB T0M 2A0
_____________________________________________________________________
1. Call to Order
Deputy Reeve McGhee called the meeting to order at 8:30 a.m.
1.1 Approval of Agenda
Resolution: CW121
Moved by: Reeve King
That the Committee of the Whole approve the agenda as presented.
CARRIED
1.2 Approval of Minutes
1.2.1 Approval of the October 15, 2024, COW Meeting Minutes
Resolution: CW122
Moved by: Councillor Cunningham
That the Committee of the Whole approves the adoption of the minutes
of the October 15, 2024, Committee of the Whole meeting, as
presented.
CARRIED UNANIMOUSLY
Page 2 of 47
November 19, 2024
__________Initials
2
2. New Business
2.2 Road Use Agreement Discussion
The Chair called for a recess at 9:39 a.m. and called the meeting back to
order at 9:55 a.m. with all previously mentioned members present.
Councillor Christie arrived at 9:56 a.m.
Resolution: CW123
Moved by: Councillor Cunningham
That this meeting goes into closed session at 9:18 a.m. for the following
reason(s).
Third Party Business (FOIP- Section 16)
CARRIED
Resolution: CW124
Moved by: Reeve King
That Council return to open meeting at 9:38 a.m.
CARRIED
9:38 a.m. - meeting recessed to allow return of public.
9:38 a.m. - meeting resumed.
Resolution: CW125
Moved by: Councillor Fobes
That the Committee of the Whole accept the information on Road Use
Agreements as information.
CARRIED UNANIMOUSLY
2.1 Community Aggregate Payment Levy
Resolution: CW126
Moved by: Reeve King
That the Committee of the Whole recommend Administration to bring
forward the Community Aggregate Payment (CAP) Levy Bylaw to Council
for first reading.
CARRIED
Page 3 of 47
November 19, 2024
__________Initials
3
2.3 Policy 13-2 Grader Gravel Services & Policy 13-36 Maintenance of Dirt
Trail Road Allowances
Resolution: CW127
Moved by: Councillor Wittstock
That the Committee of the Whole recommend to Council to approve the
recommended changes to Policy 13-2 Grader and Gravel Services and
further direct Administration to develop an appropriate communications
package informing ratepayers of the revisions to the policy.
CARRIED
2.4 Bill 20: The Municipal Affairs Statutes Amendment Act, 2024
The Chair called for a recess at 11:16 a.m. and called the meeting back to
order at 11:30 a.m. with all previously mentioned members present.
Resolution: CW128
Moved by: Councillor Cunningham
That the Committee of the Whole receive for information the Bill 20: The
Municipal Affairs Statutes Amendment Act, review presentation.
CARRIED
3. Closed Session
Resolution: CW129
Moved by: Councillor Fobes
That this meeting goes into closed session at 12:11 p.m. for the following
reason(s):
Intergovernmental Relations (FOIP- Section 21)
CARRIED UNANIMOUSLY
Resolution: CW130
Moved by: Councillor Fobes
That Council return to open meeting at 12:18 p.m.
CARRIED
12:18 p.m. - meeting recessed to allow return of public.
12:18 p.m. - meeting resumed.
Page 4 of 47
November 19, 2024
__________Initials
4
4. Adjournment
The meeting adjourned at 12:19 p.m.
Page 5 of 47
Committee of the Whole
Discussion Report
Page 1 of 2
Version: 2023-01
Subject: 2025 Budget – Additional Information
Meeting Date: Tuesday, December 3, 2024
Prepared By: Marika von Mirbach, Manager of Financial Planning
Presented By: Marika von Mirbach, Manager of Financial Planning
STRATEGIC PLAN ALIGNMENT: (Check all that apply)
☒ ☒
☒
☒
☒
High Quality
Infrastructure Economic
Resilience Quality of Life Effective
Leadership Level of Service
RELEVANT LEGISLATION:
Provincial (cite)- The County is required under the Municipal Government Act (MGA) to annually
approve both an operating and capital budget which are balanced and fully funded.
:
This report and the attached presentation represent the fifth stage of the 2025 Budget process.
The planned stages for the 2025 Budget process include:
October 8 – Setting the Stage and Proposed Projects
o This step intends to provide context on how the budget was prepared and outline
proposed projects for consideration in the 2025 Budget.
October 22 – Proposed Core Operating Budget
o This step will outline the core operating budget, which is developed based on maintaining
existing service levels and Council approved guidelines.
2024 Third Quarter Variance Report
o While not a formal part of budget deliberations, the third quarter variance report will
inform Council of the County’s projected results for 2024 to provide additional context for
2025 Budget requests and adjustments.
November 12 – Budget Discussions
o This step allows Administration to respond to questions and information requests
received from Council resulting from the first two presentations. This time will also be
utilized to obtain guidance from Council required to balance the budget for future
adoption by Council.
November 26 – Budget Discussions
o This meeting provides an additional opportunity for budget discussions by Council and
seeks to determine a balanced budget to be presented at the final stage.
December 3 – Additional Information and Budget Discussions
o This meeting is intended to provide additional information requested by Council with
respect to the budget, and to provide Council with an additional opportunity to deliberate
items included within the budget.
December 10 – Budget Adoption
o The intention for this stage is for Council to adopt a balanced budget.
Page 6 of 47
Committee of the Whole
Discussion Report
Page 2 of 2
Version: 2023-01
DISCUSSION/OPTIONS/BENEFITS/DISADVANTAGES/OTHER CONSIDERATIONS:
As part of the 2025 Budget process, Administration has prepared the fifth presentation to Council. This
presentation includes:
Historical Budget Trends to provide context of trends that have affected the budget in recent
years and continue to impact the planning process concerning the budget.
Current Trends to provide an overview of the significant current trends that affected the
preparation of the 2025 Budget.
Current State reflects the current state of the proposed 2025 Budget.
Council Consideration Items to highlight critical points of deliberation required to move towards a
balanced budget for presentation to Council at the December 10th Council meeting.
FINANCIAL & STAFFING IMPLICATIONS:
The annual budget process is incorporated into existing staff work plans annually. The budget itself
provides Administration with the authority to implement plans in alignment with Council’s Strategic Plan.
ATTACHMENTS:
2025 Budget – Additional Information slide deck
RECOMMENDATION:
That the Committee of the Whole recommend to Council to bring the 2025 Budget forward for
consideration at the December 10th Council meeting.
APPROVAL(S):
☒
Page 7 of 47
1
Additional Budget Information
Page 8 of 47
Budget 2025 Schedule
Budget
Adoption
December
10th
Additional
Budget
Information
December
3rd
Budget
Discussions
November
26th
Budget
Discussions
November
12th
Core
Operating
Budget
October
22nd
Setting the
Stage &
Proposed
Projects
October 8th
2
Page 9 of 47
Agenda
Historical Budget Trends
Current Trends
Current State
Council Consideration Items
3
Page 10 of 47
4
HISTORICAL
BUDGET TRENDS
CURRENT
TRENDS
CURRENT STATE COUNCIL
CONSIDERATION
ITEMS
Page 11 of 47
5
Impact of Provincial Policy Decisions
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2020 2021 2022 2023 2024 2025 Budget
Shallow Gas Policing Payments Oil and Gas Tax Holiday
Page 12 of 47
6
History of Outstanding Taxes and Allowance for
Doubtful Accounts
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2016 2017 2018 2019 2020 2021 2022 2023
Outstanding Taxes Allowance for Doubtful Accounts
Page 13 of 47
7
Operating
Budget
Inputs
Existing
Standards
Addressing
Service
Levels
Cost
PressuresGrowth
Legislative
Impacts
Page 14 of 47
Budget vs Inflation – All
8
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
2020 2021 2022 2023 2024 2025 Proposed
Total Budget Inflation
Page 15 of 47
Revenue Sources
User Fees
6%All Other Revenues
7%
Property Taxes
87%
Page 16 of 47
Property Taxes vs Inflation
10
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2020 2021 2022 2023 2024 2025 Proposed
Property Taxes InflationPage 17 of 47
11
Assessment by Property Class 2015 – 2024
$0
$1
$2
$3
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Bi
l
l
i
o
n
s
Farmland Residential Non-ResidentialPage 18 of 47
12
Tax Levy 2015-2024 (Millions)
25.4
23.3
22.8
22.4
23.1
23.7 23.8
24.3
24.8
25.6
$20.0
$21.0
$22.0
$23.0
$24.0
$25.0
$26.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Page 19 of 47
Tax Burden Distribution History
13
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Residential Farm Non-Residential
Page 20 of 47
User Fees vs Inflation
14
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2020 2021 2022 2023 2024 2025 Proposed
User Fees Inflation
Page 21 of 47
All Other Revenues vs Inflation
15
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2020 2021 2022 2023 2024 2025 Proposed
All Other Revenues Inflation
Page 22 of 47
Expenditure Types
Transfers to Reserves
(Investment for the
Future)
29%
Core Expenditures
65%
Transfers to Other
Entities
6%
Page 23 of 47
Transfers to Reserves vs Inflation
17
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2020 2021 2022 2023 2024 2025
Proposed
Transfers to Reserves Inflation
Page 24 of 47
57.8%56.6%57.5%56.1%54.1%53.3%53.7%52.9%
50.1%50.0%
30%
35%
40%
45%
50%
55%
60%
65%
70%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
18
Percentage
of Assets
Remaining
Based on
Original
Costs
The County's average annual amortization is approximately $6.0 million
Page 25 of 47
Government and Other Entity Transfers vs Inflation
19
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2020 2021 2022 2023 2024 2025 Proposed
Government / Entity Transfers Inflation
Page 26 of 47
Core Expenditures vs Inflation
20
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2020 2021 2022 2023 2024 2025 Proposed
Core Expenditures Inflation
Page 27 of 47
Core Budget to Actual Year-End
Variances
21
2022
4.5%
2023
1.25%
2024
Projected
2.5%
Page 28 of 47
22
The Budget is
a Balancing
Act
Page 29 of 47
23
HISTORICAL
BUDGET TRENDS
CURRENT
TRENDS
CURRENT STATE COUNCIL
CONSIDERATION
ITEMS
Page 30 of 47
24
Notable Budget Pressures
•Inflationary
impacts show
signs of
stabilizing
Global
•Assessment
Model Review
(Depreciation
Impacts)
•Mature Asset
Strategy
Provincial
•Growth Trends
•Infrastructure
Deficit (TBD)
Local
Page 31 of 47
How Do We Compare?
25
3.10 3.00
4.76
2.38
3.92
2.46
5.38 5.52
5.07
3.79
5.39
4.17
Kneehill
(2025
Proposed)
Kneehill Lethbridge Mountain
View
Beaver Red Deer Cypress Starland Flagstaff Newell Wheatland Average
2024 Residential Tax Rates (Counties)
Page 32 of 47
How Do We Compare?
26
3.10 3.00
12.50
10.80
11.60
9.50
11.60
9.83
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Kneehill (2025
Proposed)
Kneehill Acme Carbon Linden Three Hills Trochu Average
2024 Residential Tax Rates (Urbans)
Page 33 of 47
How Do We Compare?
27
16.30 15.61
29.00
8.10
17.60
9.60
7.62
14.44
18.67
8.86
15.95
14.55
Kneehill
(2025
Proposed)
Kneehill Lethbridge Mountain
View
Beaver Red Deer Cypress Starland Flagstaff Newell Wheatland Average
2024 Farmland Tax Rates (Counties)
Page 34 of 47
How Do We Compare?
28
16.30 15.61
12.50
10.80 11.60
9.50
11.60 11.94
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Kneehill (2025
Proposed)
Kneehill Acme Carbon Linden Three Hills Trochu Average
2024 Farmland Tax Rates (Urbans)
Page 35 of 47
How Do We Compare?
29
15.30 14.90
8.83 9.79
18.34
10.65
12.48
21.03
17.50
8.86
11.47 13.39
Kneehill
(2025
Proposed)
Kneehill Lethbridge Mountain
View
Beaver Red Deer Cypress Starland Flagstaff Newell Wheatland Average
2024 Non-Residential Tax Rates (Counties)
Page 36 of 47
How Do We Compare?
30
15.30 14.90
20.00
13.90
26.50
12.40
23.60
18.55
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Kneehill (2025
Proposed)
Kneehill Acme Carbon Linden Three Hills Trochu Average
2024 Non-Residential Tax Rates (Urbans)
Page 37 of 47
31
HISTORICAL
BUDGET TRENDS
CURRENT
TRENDS
CURRENT STATE COUNCIL
CONSIDERATION
ITEMS
Page 38 of 47
Budget 2025 Guiding Principles
Alignment with
Council’s Strategic
Plan
Sustain Existing
Service Level
Maintain Competitive
Tax Rates
Review and
Recommend
Adjustments to
Service Fees and
Rates as Necessary
Continue to
Implement and
Monitor a Proactive
Infrastructure
Renewal Strategy
Enhance the
Customer Experience
32
Page 39 of 47
Proposed Operating Budget Summary as of
November 26, 2024
33
Core Budget
Shortfall
$1,075,120
80%
Operating Budget
for Proposed
Projects
$266,900
20%
Core Budget Shortfall
Revenues $30,936,715
Expenses $31,936,835
$1,075,120
2025 Operating Budget for
Proposed Projects
Wimborne
Groundwater
Filtration Upgrade
$26,000
Fourth CPO $150,900
Fuel Management
System
Replacement
$15,000
Management
Services Contract
$75,000
$266,900
Page 40 of 47
34
Proposed Projects & Funding Sources
2025 Budget for
Phased Projects
$3,261,500
39%
Maintenance of
Existing Assets
$2,585,000
31%
Replacement of
Existing Assets
$458,200
6%
New Assets
$740,300
9%
Operating Projects
$1,036,100
12%
Operating Initiatives
$232,280
3%
Funding Source Amount
Reserves $6,630,380
LGFF Grant $1,683,000
Total $8,313,380
2025 Operating Budget
Impact
$266,900
2025 Capital Equipment
Plan
$5,120,000
2026 Projected Operating
Budget Impact
$322,940
Future Projected Project
Costs
$15,815,200
Page 41 of 47
Budget Balancing Adjustments, as presented on
November 26, 2024
35
Core Shortfall as of November 26th $1,075,120
Operating Budget Impact of Proposed Projects $266,900
Water System Revenue ($53,600)
Taxation Revenue – Residential (4% revenue increase)($78,885)
Taxation Revenue – Farmland (5% revenue increase)($118,357)
Taxation Revenue – Non-Residential (2.75% increase)($617,926)
Taxation Revenue – Minimum Tax from $150 to $175 ($41,500)
Draw from Revenue Stabilization Reserve ($431,752)
Budget Balanced $0
Page 42 of 47
36
HISTORICAL
BUDGET TRENDS
CURRENT
TRENDS
CURRENT STATE COUNCIL
CONSIDERATION
ITEMS
Page 43 of 47
Council Consideration Items
37
Project Approvals - Reserve and Grant Funded
•Confirmation of approval in principle of proposed projects
Project Approvals - Operating Budget Impact
•Wimborne Groundwater Filtration Upgrade - $26,000
•Fourth CPO -$150,900
•Fuel Management System Replacement -$15,000
•Management Services Contract -$75,000
Page 44 of 47
Council Consideration Items
38
Property Tax Revenues
•Increase residential taxes by $78,885 (4% revenue
increase)
•Increase farmland taxes by $118,357 (5% revenue
increase)
•Increase non-residential taxes by $617,926 (2.75%
revenue increase)
•Increase minimum tax rate to $175 (from $150)
Page 45 of 47
Council Consideration Items
39
Water System Revenues
•$0.20 increase to water distribution system rates
•$0.30 increase to bulk water system rates
•No increase to flat monthly fee
Budget Balancing Reserve Draw
•Draw from the Revenue Stabilization reserve to balance
budget; amount pending Council deliberations
Page 46 of 47
Page 47 of 47