1. Context Report and Long Range Financial Plan Presentation to City Council May 11, 2004 E D M O N T O N

2. Context Report and Long Range Financial Plan May 11, 2004 Index Report summary3 2005 Business plan and budget process4 Plan Edmonton5 Planning environment6 Well managed, competitive city7 Progress with other orders of government13 Edmonton’s Growth14 Long Range Financial Plan15 Opportunities and choices25 Priority areas for service issues26 Next steps27

3. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Report summary Information report: no decisions today Review by Council committees: May, June Committees to recommend guidelines to Council Recommended guidelines to Council June 15 Council decisions June 24

4. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 2005 business plan and budget process Four Pillars (Mar 22, Apr 15, May 10, May 20/21) Four Pillars (Mar 22, Apr 15, May 10, May 20/21) Administration Receive Committee Recommended Guidelines (Jun 15) Receive Committee Recommended Guidelines (Jun 15) Receive Proposed Business Plans and Budget (Nov 4) Receive Proposed Business Plans and Budget (Nov 4) Approve 2005 Budget and 3 Year Business Plans (by Dec 15) Approve 2005 Budget and 3 Year Business Plans (by Dec 15) Develop 2005 Budget and 3 Year Business Plans Council and Committees Public Forum (Nov 22/23) Mall/Library Sessions (mid-late Nov) Citizens and Stakeholders (Communication and Input) Approve Budget and Service Delivery Guidelines (Jun 24) Approve Budget and Service Delivery Guidelines (Jun 24) News Releases, Web-site, Citizen Action Centre, Advertising, Edmonton This Quarter Update Context Report Wrap Up (Jun 17) Wrap Up (Jun 17) Review Budget and Service Delivery Guidelines at Committees (May 14, 17, 19 June 2, 3, 4) Review Budget and Service Delivery Guidelines at Committees (May 14, 17, 19 June 2, 3, 4) Savings Strategies (interface with Council as results available) Results of ‘03 Community Dialogue Session and Citizen Satisfaction Survey Citizen and Stakeholder Written Submissions Web-Survey Results Receive Updated Context Report (May 11) Receive Updated Context Report (May 11) Review of budget-related policy issues through Committees (by Jun 24) 1 2 345 6 7 8 9 5 TODAY

5. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Infrastructure Development and Maintenance Leadership and Regional Development Services to People Planned Growth Economic Development Organizational Excellence Quality of Life for Residents Quality of Life for Residents Plan Edmonton: the source of direction

6. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Planning environment Well managed, competitive city Progress with other orders of government Operating and capital gaps persist Opportunities and choices

7. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Well managed, competitive city ActualAdjusted for PopulationAdjusted for Population and Inflation Budget 39.5% 23.7% -5.4% City spending

8. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Staff per capita Total FTEsFTEs per capita Well managed, competitive city 11.5% decline in FTEs per capita

9. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Property tax and utility rates Well managed, competitive city

10. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Total tax revenue growth, 1990-2002 Source: Canada West Foundation, presentation, March 22, 2004 Adjusted for population, inflation Federal Edmonton Calgary Provincial

11. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Edmonton household spending Well managed, competitive city

12. Primary areas for improvement 1 6 8 7 4 3 5 2 20 9 10 19 18 17 16 15 12 14 11 13 21 22 1. Police Services 2. Fire Rescue 3. Emergency Medical Services 4. Public Library 5. Public Transit 6. Garbage & Recycling Collection 7. Parks & Green Spaces 8. Recreational Facilities 9. Recreational Programs 10. Sewer Services 11. Winter Road Maintenance 12. Summer Road Maintenance 13. Rush Hour Traffic Flow 14. Economic Development 15. Assessment & Taxation 16. Subsidized Social Housing 17. Social Programs & Services 18. Community Development 19. Permit & Inspection Services 20. Attractions 21. Land Use Planning 22. Bylaw Enforcement Note: Quadrant axes set at 3.7 mean satisfaction rating, 4.1 mean importance rating 2003 Citizen Satisfaction Survey Well managed, competitive city

13. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Recent good news about new fiscal deal: GST rebate Police funding Ambulance Work continues: Minister’s Council Prime Minister’s External Advisory Committee on Cities and Communities Progress with other orders of government

14. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Growth creates service demands Economic growth average 3.5 per cent/year to 2009 Population growthabout 9,000 new people/year Population mix75 years-plus, “at risk” sectors growing Service demandsBasic services, income gap, affordable housing, homelessness Edmonton’s Growth

15. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Operating and capital gaps continue to grow Long Range Financial Plan Operating Capital $38 $295 $442 $157

16. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Operating projections 2004 Recosted Expenditures Revenue $157M Gap $38 Service Issues

17. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Increasing reliance on property tax Other Revenue (share drops 3%) Tax Revenues (share increases 7%) 24% 51% 20% 58% User Fees, Fines, Permits (share drops 4%) 25% 22%

18. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Realty assessment growth

19. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Other revenue sources EdTel (no change) Other (share drops 5%) 43% 23% 45% 25% Epcor Dividends (share increases 2%) 10% Proportions relatively flat over time Investments (share increases 1%) Franchise Fees (share increases 2%) 17%12% 7%8%

20. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 $256 Service issues Other & support to external agencies New service Infrastructure maintenance Growth $44

21. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Funded Capital Plan $3.0 billion Infrastructure Gap $4.1 billion 2004-13 LRFP 10-year capital plan

22. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 2005-2014 funded investment ($3.0B)

23. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 2005-2014 unfunded investment ($4.1B)

24. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Capital financing (funded) External Funding (37%) Internal Funding (63%)

25. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Opportunities and choices Operating Property and business tax increase at MPI Tax base: real growth 3.6 per cent realty, 0.5% business EMS tax levy reallocation to high priority service issues Confirming police priorities $3.5 million savings Capital One per cent for tax-supported borrowing GST to capital projects General financing pool increase @ Construction Price Index* *Non-residential

26. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Priority areas for service issues Major priorities for civic programs include: growth demands environmental concerns service sustainability corporate events commitments

27. E D M O N T O N Context Report and Long Range Financial Plan May 11, 2004 Special Community Services Committee meetings: May 14 and June 2 Special Transportation and Public Works Committee meetings: May 17 and June 3 Special Executive Committee meetings: May 19 and June 4 Council meetings: June 15 and June 24 Next steps