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
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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.
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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
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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:
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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
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FIN-19-079
2020– 2029
Long-Term Financial Plan
Appendix A
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