HomeMy WebLinkAboutFIN-06-021 - 2007 Budget Plan
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KITCHENER
Financial Services
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Report To:
Councillor B. Vrbanovic, Chair, and Members of the Finance
and Corporate Services Committee
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
June 26, 2006
Pauline Houston, General Manager of Financial Services &
City Treasurer
Dan Chapman, Director of Financial Planning & Reporting
All
June 20, 2006
FIN-06-021
2007 BUDGET PLAN
RECOMMENDATION:
THAT the general approach and timetable outlined in staff report FIN-06-021 be supported as
the basis for the preparation of the 2007 budget.
BACKGROUND:
Council has traditionally provided budget plan direction to staff and local boards early in the
annual budget process. This report proposes an approach and timetable for the 2007 budget
that incorporates the impact of the election on budget timing as well as the implications of
budget consultation through Compass Kitchener as part of the Who Are You Kitchener initiative.
REPORT:
In early 2007, the City will go to the community - through Compass Kitchener and with Who Are
You Kitchener data - to develop a three-year strategic financial plan that lines up priorities with
financial resources to "make them happen". The following will be considered during the
development of the financial plan and through the public consultation process:
· The City's current financial condition and future prospects;
· The financial implications of significant economic, social and demographic
trends;
· The operating budget impacts of key Corporate initiatives (e.g., the Corporate
Plan, Leisure Facilities Master Plan, Environmental Remediation Strategy,
Healthy Community Plan, Departmental Strategic Plans, Air Quality Plan, etc.);
and
· The budget implications of potential service level adjustments identified through
the Who Are You Kitchener process.
The public consultation process will be instrumental in arriving at a balance between the desired
service levels and the willingness of the public to pay for those services. The process will
ultimately result in:
· A three-year operating budget forecast, by department, complete with an
identification of strategies to achieve budget targets;
· Clear delineation of the linkages between key Corporate Plans, the financial plan,
the annual operating budget process and community input;
· A discussion of financial issues identified and the recommendations to address
these issues through financial strategies and policies; and
· Implementation details and a future work plan.
In addition to providing the deliverables identified above, the proposed 2007 budget schedule
addresses the following issues:
· The need to adjust the timing of budget presentations in view of the Municipal
elections held in November; and
· Council's stated preference for delaying budget approval in 2007 to permit
review of the December 2006 financial report prior to budget adoption. As part
of the 2008 budget plan, staff will provide a full assessment of options for budget
timing with a recommendation on a go-forward strategy.
The following Finance and Corporate Services Committee meeting dates are recommended for
the 2007 budget process, subject to approval of the meeting schedule by the incoming Council:
Fees and Charges December 11,2006 Permits implementation of new
rates on Januar 1, 2007
Referral of New Projects to Capital Forecast December 11,2006 Permits inclusion of projects prior
to issuance of acka e
Content of Public Consultation December 11, 2006 Consultation will occur between
Januar 8 and 26, 2007
Capital Budget and Forecast
January 15, 2007
Water and Sewer Budgets and Rates
January 22, 2007
Permits implementation of new
rates on March 1 , 2007
Grants Day
January 29, 2007
Preliminary Results of Public Consultation
February 5, 2007
Operating Budget
February 26, 2007
December 31,2006 Financial Report
March 5, 2007
Budget Day
March 19, 2007
A detailed pro forma budget projection has not been included with this report due to the fact that
an extensive review of service levels is anticipated through the 2007 budget process. As such,
it could be misleading to project a tax rate increase largely predicated upon an assumption that
existing service levels will be maintained.
FINANCIAL IMPLICATIONS:
None
CONCLUSION:
Staff recommends that Council support the plan for 2007 budget preparation as outlined above.
This approach maintains flexibility for the service level review associated with the Who Are You
Kitchener process and also accommodates the timing of the 2006 Municipal election as well as
Council's stated preference for reviewing year-end results prior to final budget approval in 2007.
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer
Dan Chapman, CA
Director of Financial Planning
& Reporting