Loading...
HomeMy WebLinkAboutFIN-19-079 - 2020-2029 Long-Term Financial PlanREPORT TO: Finance and Corporate Services Committee DATE OF MEETING: September 30, 2019 SUBMITTED BY: Jonathan Lautenbach, Chief Financial Officer, 519-741-2200 x 7334 PREPARED BY: Jonathan Lautenbach, Chief Financial Officer, 519-741-2200 x 7334 WARD (S) INVOLVED: All DATE OF REPORT:September 19, 2019 REPORT NO.: FIN-19-079 SUBJECT: 2020-2029 Long-Term Financial Plan _________________________________________________________________________________________ RECOMMENDATION: That Council endorse the 2020-2029 Long-Term Financial Planand provide direction to staff to incorporate the recommended actions as part ofthe annual businessplanning and budget process. BACKGROUND: The City of Kitchener has developed a strong reputation for being fiscally responsible, placing the proper level ofimportance on the annual budgetand financial reporting process, to ensure that value is provided for citizens in the delivery of programs and services. This attention to financial planning and reporting has served the City welland will always be considered a key aspect of good financial governance. As municipalities facenew emerging challenges and trends such as infrastructure deficits, impacts from climate change, economic uncertainty, legislative pressures, and increased expectation from residents related to the delivery of service, there is a greater need for a long- term financial planning approach that goes beyond the annual budgetprocess.A long-term financial plan helps to achieve this goal,combining strategizing with forecasting, and identifyingfinancial opportunities and challenges that will beimportant for the City to address over time. The development of a long-termfinancial plan is considered a best practice and something that many municipalities have adopted aspart of their regular strategic planning process. The development of a Long-Term Financial Plan(LTFP)is listed as a 2019 business plan item and is work that the City has been looking to advance for a number of years. In March, Council approved moving forward with the development of the LTFP. Two Council strategic sessions were since heldto gather feedback related to specific issuesand policies that represent importantelements of the overall plan. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 3 - 1 The 2020-2029 Long-Term Financial Plan entitled “Our City, Our Plan, Our Future” is attached for Council’s consideration(See appendix A). The plan is an important strategic documentthat should serve as a financial roadmapfor the Citymoving forward. Itgivesconsideration to relevant financial areasfor the City to focus on, with the overall goal ofstrengthening the City’s overall financial position. REPORT: The 2020-2029 Long-Term Financial Plan “Our City, Our Plan, Our Future”includes three main sections that align with the title of the plan. The Our City section provides a current overview of Kitchenerand includes important factors to consider when assessing the City's overall financial condition. It also identifieskey challengesthat will require new strategies and approachesover time. Our Planhighlights a new financial framework for the municipality that is built based on three overarchingguiding principles. Financially the City of Kitchener will be... 9 Strategic Areas of Focus have been identified under these guiding principles; these represent important areas of consideration to ensure a balanced approach to addressing the City’s financial needs. Theplan includes 24 recommendedactions under these areas which 3 - 2 will help move the City forward and includes strategies for future work whichwillbe implemented over the current term of Council. Our Futureis the financial forecasting for the Operating, Capital, Reserves, and Enterprises. It incorporates some of the strategies identified under the recommended actions of the plan and highlights the three specific issues that Council discussed and provided feedback on earlier in the year: Specific Issue 001 – Facilities Infrastructure Funding Specific Issue 002 – Operating Budget Room Specific Issue 003 – Investment Income Appendix 1 of the plan provides background on these items and summarizes the recommended approach for dealing with theseissues, linking back and referencing the recommended actions included in the plan. The forecasting included under this section provides a high-level overview of the City’s financial future and is intended to align in the short-term with what Council can expect to see coming forward as part of the annual budget process. The Long-Term Financial Plan is not intended to be a static document but should be updated regularly to ensure it aligns with the City’soverall strategies. It is expected that the Long-Term Financial Plan will be updated everyterm of Council to evaluatehow successful the City has been in implementing the plan, and alsotoassess potential new recommended actions that are needed to continue to support the City's financial goals. Council isbeing asked to endorsethe 2020-2029 Long-Term Financial Plan and to provide direction to staff to incorporate the recommended actions as part of the annual business planning and budgeting process. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority:Effective and Efficient City Services Strategy:5.4 – Ensure the responsible stewardship of public funds within a supportive policy framework Strategic Action: #CS09 – Long Term Financial Plan FINANCIAL IMPLICATIONS: 3 - 3 The Long-Term Financial Plan includes financial strategies and recommendations aimed at strengthening the City’s overall financial position. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. ACKNOWLEDGED BY: Dan Chapman, Chief Administrative Officer, Office of the CAO 3 - 4 FIN-19-079 2020– 2029 Long-Term Financial Plan Appendix A 3 - 5 3 - 6 3 - 7 3 - 8 3 - 9 3 - 10 3 - 11 3 - 12 3 - 13 3 - 14 3 - 15 3 - 16 3 - 17 3 - 18 3 - 19 3 - 20 3 - 21 3 - 22 3 - 23 3 - 24 3 - 25 3 - 26 3 - 27 3 - 28 3 - 29 3 - 30 3 - 31 3 - 32 3 - 33 3 - 34 3 - 35 3 - 36 3 - 37 3 - 38 3 - 39 3 - 40 3 - 41 3 - 42 3 - 43 3 - 44 3 - 45 3 - 46 3 - 47 3 - 48 3 - 49 3 - 50 3 - 51 3 - 52 3 - 53 3 - 54 3 - 55 3 - 56 3 - 57 3 - 58 3 - 59 3 - 60 3 - 61 3 - 62 3 - 63 3 - 64