Typically, budget pressures in the range of $10 million to $15 million have been faced in previous years. For the 2021 budget, it is expected that budget pressures will very likely be greater as a result of:
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Continued Provincial Budget Reductions
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Continued Funding of the Asset Management Plan
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Revenue Shortfalls & Increased Costs resulting form COVID-19
In an attempt to achieve the lowest possible impact on property taxes, consistent with Council’s goals relative to service levels, the following is being asked of all departme nts and levy funded ABC’s.
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DEPARTMENTS - To bring forward budget reduction options achieving 10% of the 2020 approved budget level.
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ABC’s - To bring forward a budget resulting in a net tax levy for their ABC of not greater than their 2020 amount.
COVID 19 financial impacts for 2021 and beyond will be assessed and projected separately to allow administration the ability to assess the impact to future budgets. Based on the timing and magnitude of these impacts, administration will provide Council with recommendations on a plan to fund these pressures.
Depending on the magnitude of the COVID-19 related budget pressures, additional options to reduce the 2021 Levy may be required. Administration will assess the impacts of COVID as it develops and provide such alternative to City Council in conjunction with the 2021 budget recommendations.
Consistent with prior years, departments and agencies will also be encouraged to bring forward their professional recommendations for service level enhancements, which as always, will be presented to City Council for deliberation.
The City’s 2020 8 year capital budget was based on expected funding levels from 2020 through to 2027. These funding levels are inclusive of operational transfers to capital noted as Pay As You Go funding, as well as the approved increase of 1.16% annually for 6 years to achieve funding levels needed to meet the Asset Management Plan recommendations to sustain the City’s existing assets at current service levels. Should these funding levels be reduced there will be a direct impact to projects previously approved in principle from 2021 to 2027. The severity of the impact would be dependant on the amount of funding which is reduced. It should be noted as well that the recently approved Capital Budget guidelines on criteria to be applied when determining projects which could be pushed out or cancelled would be used in the event of a capital funding decrease. This would likely impact several projects which are service enhancements and/or growth type projects requiring that they be deferred or pushed out to later years with the focus of the remaining funding being directed as investments to sustainability projects. Given any reductions in capital funding are dependant on the operating budget review it is necessary for Administration to have early guidance on this matter should alternative funding levels be desired by City