Presentation by: City Manager, Murray Totland

*check against delivery

THE 2017 PRELIMINARYBUSINESS PLAN AND

BUDGET

THE FRAMEWORK

BUSINESS PLAN AND BUDGET INPUTS

Phase 1:

Prepare/Educate

Mar - May

Phase 2:

Engage

May - July

Phase 3:

Evaluate/Consolidate/

ConstructJuly - Oct

Phase 4:

Inform/Debate/Approve

Nov - Dec

2016

Engagement Participation

500Civic Services

Survey

Phone

803Civic Services

Survey

Online

803Citizen Budget

Online

132Citizen Budget

In Person

Over 2,200 citizens provided input into the 2017 Business Plan and Budget.

Perceived Quality of Life

1%

1%

10%

12%

48%

53%

42%

34%

Telephone

Online

Poor Fair Good Very Good

87% Good/Very Good

89% Good/Very Good

Service Level Satisfaction

2%

3%

10%

14%

72%

75%

16%

8%

Telephone

Online

Very unsatisfied Unsatisfied Satisfied Very Satisfied

83% Satisfaction

88% Satisfaction

Budget Balancing

4%

13%

4%

10%5%

47%

16%

9% 9%4%

7%11%

29% 31%

EliminateService

ReduceService Levels

Property TaxIncreases

User FeeIncreases

Introduce newuser or service

fee

Combination ofTax and Fee

Increases

Undecided

Telephone Online

0% 10% 20% 30% 40% 50% 60% 70% 80%

Fire Services

Solid Waste Collection

Parks

Community Grants

Recreation & Culture

Growth & Development Planning

Police Services

Traffic Management

Transit

Affordable Housing

Snow & Ice

Road Maintenance

2017 Business Plan and Budget Public Engagment Results Percent of Respondents (Consolidated)

Sources: Civic Satisfaction Survey; Citizen Budget

Same Less More

-3

-2

-1

0

1

2

3

4

5

6

7

RGDP (%) Employment (x1,000)

UnemploymentRate (%)

Population (%) Housing Starts (x1,000)

Retail Sales (%) Consumer Inflation(%)

Saskatoon CMA Economic Forecast 2015 2016f 2017f 2018f

*Sources: Conference Board of Canada; Statistics Canada

THE 2017PRELIMINARY

BUSINESS PLAN & BUDGET

Business Plan & Budget Alignment

Strategic Plan

4 Year Priorities

Business Plan

2017 Initiatives

2017 Targets

Continuous Improvement/Risk Based

Management

Continuous Improvement

Preliminary Budget (Capital, Operating, Utilities & Land Development)*

2016 2017p

$97.3 $134.0

$458.3 $476.9

$383.4$437.8

$57.9$26.7

Land DevelopmentUtilitiesOperatingCapital

Total: $1,075.4 million

Total: $997.0 million

THE 2017PRELIMINARY

OPERATING BUDGETEXPENDITURES

$2,348.80$2,651.80

$1,721.80$1,910.96

$1,467.22

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Calgary Edmonton Saskatoon Regina Winnipeg

2016 TOTAL TAX SUPPORTED OPERATING EXPENDITURES PER CAPITA

Tax Supported Operating Average

Sources: Statistics Canada CSD Estimates;City Operating Budgets

PRELIMINARY OPERATING BUDGET

$420

$430

$440

$450

$460

$470

$480

$490

2016 2017p

$445.1 $463.4

$19.7

$18.0

In m

illio

ns

Tax Supported Non Tax Supported

2.49%

0.84%

0.24%

3.50%4.30%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2017 ExpendituresGrowth

Population + CPI Population + MPI

BREAKDOWN OF EXPENDITURE INCREASESRemaining Expenditures Roads (Service Level Increase)Snow (Service Level Increase)

4.6

13.9

13.9

18.5

27.8

32.4

41.7

46.3

46.3

51.0

78.8

97.3

Urban Planning

Waste Reduction

Housing

Parks

Other

Debt Servicing

Recreation

Transit

Corporate Support

Fire

Transportation

Police

TAX SUPPORTED OPERATING EXPENDITURES BY SERVICE ($ MILLIONS)

Debt Charges , 5.3

Capital Contribution, 18.4

Operating Cost, 18.9

Staff Compensation, 57.3

SHARE OF 2017 TAX SUPPORTED OPERATING EXPENDITURES

BY CATEGORY (%)

*Transfer to/from Operating Reserve of 0.1 % not shown on Chart

TOTAL OPERATING EXPENDITURE BUDGET VALUE ($)

Inflation $7.7 million

Growth $3.3 million

Building Better Roads $3.9 million

Snow & Ice $1.1 millionOther Service Level Adjustments $2.4 million

Tax Supported Programs Expenditure Increase $18.4 million

Non Tax Supported Program Expenditure Decrease ($1.7 million)

Total Operating Expenditure Increase $16.7 million

FTE SUMMARYCATEGORY NET FULL TIME EQUIVALENTS

Tax Supported

Civic Operations 29.9

Police 0.3

Remai Gallery 8.5

Total Tax Supported 38.4Non Tax Supported

Self Supported 0

Utilities (net of transfers) 2.4

Capital 6.0

Total Non Tax Supported 8.4

TOTAL OPERATING BUDGET 46.8

FTE Growth

Potential anchor for FTE Limit :

• 2017 growth = 1.3%• Growth less 1% = 0.9%• 2 year average = 0.8% 1.30%

0.00%

0.50%

1.00%

1.50%

2.00%

2017p

2017 FTE Growth

FTE Growth Growth - 1.00%

FTEs / 1,000 Population

10.6

10.7

10.8

10.9

11.0

11.1

13.5

13.6

13.7

13.8

13.9

14.0

2013 2014 2015 2016 2017p

Total FTEs (LHS) Tax Supported FTEs (RHS)

FTEs as a Share of Total Employment

0.00

0.50

1.00

1.50

2.00

2.50

2013 2014 2015 2016f 2017f

Total FTEs Tax Supported FTEs

*Sources: Conference Board of Canada, Statistics Canada

THE 2017PRELIMINARY

OPERATING BUDGETREVENUES

City Operating Revenues

Own source

Tax

Property Tax

Non-Tax

User feesLicenses

Fines/PenaltiesROI

External Source

Government Transfers

Property Taxation, 46.9

Grants-in-Lieu , 8.3

General , 20.3

User Fees, 10.6

Government Transfers, 13.9

SHARE OF 2017 TAX SUPPORTED OPERATING REVENUES

BY CATEGORY (%)

TOTAL OPERATING REVENUE BUDGET VALUE ($)Assessment Growth Taxation Revenue $3.0 millionGrants-in-Lieu & Franchise Fees $4.7 millionSL&P & Water/Waste Water ROI $4.0 millionFines & Penalties & Property Tax Penalties $750,000Other Revenue Changes $1.45 millionLess Landfill Revenue Decrease $(450,000)Less Supplementary Taxes $(750,000)Less Municipal Revenue Sharing Decrease $(2.4 million)

Total Tax Supported Program Revenues $10.3 million

Non Tax Supported Program Revenue Decrease ($1.7 million)

TOTAL OPERATING REVENUE INCREASE $8.6 millionLess Assessment Growth Taxation Revenue ($3.0 million)TOTAL NON-TAX REVENUES $5.6 million

2017 Budget Summary

2017 Total Expenditure Change over 2016(481.4M – 464.7M)

$16.7 M

2017 Total Revenue Change over 2016(470.3M – 464.7M)

$5.6 M

Total Revenue Gap $11.1 M

Assessment Growth Taxation 2017

Property Tax Increase needed to fill gap

$ 3.0 M

$ 8.1 M

Expenditures$16.7M

Revenues$5.6M

Assessment Growth Taxes$3.0M

Levied Tax

Increase $8.1M

Distribution of the 2017 Property Tax Increase

Total 3.97%

0.62 0.20 0.67 1.93 0.55

Police Fire City Roads Snow

The Operating Budget Simplified

1.49

1.93

0.55

1.6

0

1

2

3

4

5

Property Tax Distribution Consumer Inflation

Saskatoon Consumer Inflation(2016f)Snow/Ice Service Level

Roads Service Level

Civic Services Growth &Inflation

IMPACT OF PROPOSED PROPERTY TAX INCREASE

Municipal Tax Municipal Dedicated DedicatedIncrease Per Average Operating Road Snow & Ice Total Household $325,000

Assessment

Approximate Total Increase $25.35 $32.84 $9.36 $67.55

Approximate $ Per Month $2.11 $2.74 $0.78 $5.63

1.49% 1.93% 3.97%0.55%

Table 3.2.6 - Impact of the Property Tax Increase

$1,484$2,257 $2,094 $2,360 $2,298

$986

$945 $1,408$1,408

$2,601$212$236

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Calgary Edmonton Saskatoon Regina Winnipeg

2016 RESIDENTIAL PROPERTY TAX BILL SINGLE FAMILY HOME ASSESSED VALUE OF $400,000

Municipal Education Library

Source: 2016 Property Tax Bylaws, Respective Cities

$4,862

$6,217

$3,694

$5,099

$3,319

$1,512

$1,433

$3,312

$3,312

$3,756

$375

$510

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Calgary Edmonton Saskatoon Regina Winnipeg

2016 COMMERCIAL PROPERTY TAX BILL PROPERTY WITH ASSESSED VALUE OF $400,000

Municipal Education Library

Source: 2016 Property Tax Bylaws, Respective Cities

Building Better Roads Investment*

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2011 2012 2013 2014 2015 2016 2017p

14,76520,749 22,851

36,615 38,517 41,480 43,6487,673

7,9988,988

10,73611,618

13,28414,337

2,165

2,2992,434

3,120 3,320

3,7993,780

In (0

00)

Roadways Snow & Ice Street Sweeping Total:$61,765

Total: $24,603

*includes back lanes and boundary roads

THE 2017PRELIMINARY

CAPITAL BUDGET

Capital Investment By Business Line

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

Corporate…

Police

Fire Services

Recreation & Culture

Environmental Health

Urban Planning

Land Development

Corporate Asset Mgmt

Transportation

Utilities

$3,460

$4,033

$7,234

$8,215

$13,202

$14,385

$22,224

$22,454

$59,630

$105,218

Expressed In 000’s

KEY PROJECTS FOR 2017 $28.7 million for Federal PTIF Projects

$14.5 million for replacement buses $10.5 million for Rapid Transit Development

$21.6 million for Federal CWWF Projects $18.9 million for rehabilitation of water mains $2.7 million for rehabilitation of sanitary mains

$7.0 million for Recovery Park $5.0 million for Energy Performance Contracting $5.2 million for the replacement of Fire Hall #3 $32.1 million for Roadway & Sidewalk Preservation

KEY PROJECTS BY CITIZEN PRIORITIESRoads $32.1 M for roadway and sidewalk preservationTransit $28.7 M in transit investments for buses, planning &

accessibilityHousing $427,000 operating budget investment $500,000 in housing business planTraffic $4.5 M in transportation investments including traffic signal

upgrades, traffic reviews and intersection improvementsSnow/ice $13.8 million investment in snow clearing, removal, sanding

and salting

Capital Budget Funding Sources

BORROWING

• Dec 31/16 debt: $338M• Approved limit: $558M

17.2

10.1

7.2

Debt Servicing Costs ($Millions)

Property TaxationUtility RatesFederal Gas Tax Funding

-

200

400

600

2016 2017 2018 2019 2020

Mill

ions

5 Year Debt Projection (estimates only)

1,001 1,229

3,455

1,384

2,730

529

957

2,323

928 1,013

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Saskatoon Regina Edmonton Winnipeg Calgary

Deb

t per

Cap

ita ($

)

DEBT PER CAPITA (2015 YEAR END)

Total Debt per Capita Tax Supported Debt per Capita

NEXT STEPS

November 23 @ 4:00 pm:• Business Plan and Budget Agenda Released

November 30 @ 1:00pm:• City Council Deliberations