C I T Y A D M I N I ST R AT I O N S PROPOSED 2013 BUDGETS

Budget in Brief
What it costs to run our city
It costs a lot to run a city. Every year there are major expenses that include maintaining our roads, providing water services, removing waste, providing fire and police services, operating leisure centres, keeping our buses running, planning for the future and much, much more.
$17.9 M in maintaining and improving parks and golf courses $17.0 M in new road construction $13.7 M in traffic control safety $11.3 M in maintaining and upgrading transit, fire and civic vehicles $8.8 M in repairing and upgrading City facilities, including City Hall and sport facilities $6.7 M in growth costs for land development $3.2 M in starting curbside recycling and moving forward with Waste Plan Regina $14.1 M for operating and upgrading the wastewater treatment plant $8.6 M in operating and upgrading the wastewater collection system

With the proposed mill rate increase and approved water rate increase, the Citys total budget for 2013 will be $566 million. Even with the increases, the Citys budget remains quite limited. When building the budget, City Administration took the following challenges into account: Aging infrastructure Rising prices for supplies and services Continued growth Residents service expectations While the 2013 budgets allocate the funding we do have wisely, it is not sustainable for the City to continue delivering our services at current service levels. In the past infrastructure maintenance and renewal has been deferred in an effort to maintain affordable services. The Citys aging infrastructure is now reaching a critical state and needs to be replaced. The wastewater treatment plant and the stadium are at the end of their lives, so we are rebuilding them. Our roads also require significant investment.

Capital and operating budgets

In order to continue investing responsibly and building a sustainable future for our community, the City Administration is proposing a 4.45 per cent mill rate increase for 2013. If approved, this increase would bring the Citys capital and operating budgets to $424 million.

Water & Sewer Utility budget

The Citys water and sewer budget is funded through the utility rather than through the Citys operating and capital budgets. City Council previously approved 9 per cent rate increases for 2011 to 2013. With the 9 per cent increase for 2013, the water and sewer budgets total $142 million.

HIGHLIGHTS
In 2013, your tax dollars will pay for the following: $69.2 M for Regina Police Services operations (as recommended by the Board of Police Commissioners) $40.3 M for Fire & Protective Services operations $37.8 M in repairs and maintenance for roads, bridges and alleys $18.2 M in managing waste and landfill

HIGHLIGHTS
In 2013, the utility rates and fees will cover: $38.6 M in operating and upgrading the water system, including $6.6 M to purchase water from Buffalo Pound Water Treatment Plant $15 M for maintaining and upgrading the drainage system

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Snapshot of the proposed capital and operating budget

Build and maintain our roads and bridges
Repairs and maintenance for existing roads and bridges Road repairs $18.1 M Winter road maintenance, including snow removal $6.3 M Street sweeping and alley maintenance $6 M Asphalt services $4 M Bridge repairs $3.2 M

Mill rate comparison

Here is how the Citys proposed mill rate increase compares to previous years.
2009 Calgary Edmonton Red Deer Saskatoon Regina Average 5.30% 7.30% 7.05% 3.41% 0.00% 4.61% 2010 4.79% 5.00% 3.31% 3.86% 4.00% 4.19% 2011 4.60% 5.00% 3.98% 3.99% 4.00% 4.31% 2012 6.00% 5.20% 4.32% 4.00% 3.90% 4.68% 2013 5.50% 3.30% 4.99% 4.45% 4.56% 5 Year Average 5.24% 5.16% 4.67% 4.05% 3.27% 4.48%

Snapshot of the proposed Water & Sewer Utility budget

Provide reliable water service Grow our city responsibly
With its strong economy and high quality of life, Regina is attracting thousands of new residents and growing rapidly. Along with expanding our services to new areas, we are also managing growth through careful planning and development. Regina Revitalization Initiative Regina Revitalization Initiative to redevelop land in the heart of Regina $1.4 M  TheReginaRevitalizationInitiativeis aboutmorethanastadium.Itcreates anopportunityforinvestmentinthe heartofthecity,andtheabilityto rejuvenateaninner-cityneighbourhood. RRIwillchangetheheartofour communityforgenerationstocome. Itwillconnectneighbourhoodsitwill connectfacilitiesitwillconnectpeople withopportunitiesforbusinessand investment. Design Regina Moving forward with Design Regina, the citys official community plan $0.4 M  DesignRegina,thecitysnewofficial communityplan,willbeapprovedby Councilbytheendof2013.Thisplan, informedbyCommunityPriorities developedthroughanextensivepublic engagementprocess,willguidegrowth andchangeinReginaforthenext25 yearsandinformdecisionsonCity investments,services,andactions towardsachievingourVision.Public engagementwillcontinuetobeapart oftheprocessin2013. Land development Ross Industrial development $6.3 M North Argyle land development $0.4 M The Citys water and sewer budget is funded through the utility rather than through the Citys operating and capital budgets. The utility provides water, wastewater and drainage services for our community. Water investments Water treatment, pumping and system operation $21 M Buffalo Pound Water Treatment Plant upgrades $10 M Underground water line renewal $4.9 M Adding new or bigger water mains in growing areas (all construction costs funded through developers) $0.7 M Utility billing system upgrade that includes ebilling $0.1 M Wastewater investments Wastewater treatment plant operations $8.9 M Wastewater collection operations $5.5 M Wastewater treatment plant improvements $5.3 M Wastewater collection improvements $3.1 M TheCityisplanningasignificant investmentinthewastewater treatmentplanttomeetnewregulatory requirements,protectpublichealthand ourenvironment,addressconcernsof downstreamresidentsandbusinesses, andmeettheneedsofourgrowing populationnowandforthefuture. Theupgradesareestimatedtocost $207million+/-15percentbased onconstructionstartingin2014and completingin2016.

Drainage investments Improving drainage for Victoria Avenue and Highway #1 underpass $6 M Greens on Gardiner detention pond $1.3 M Harbour Landing detention ponds $1.7 M Utility rate facts Funding for the utility is primarily from utility bills, with additional funding from sources including rates, grants and developer fees. Utility bills 89 per cent Developer fees 6 per cent Other, including grants, fees and interest earned 5 per cent Here is a summary of where the utility money will go in 2013: Reserve transfers 35 per cent Water 27 per cent Other (includes Administration) 12 per cent Drainage 11 per cent Wastewater treatment 10 per cent Wastewater collection 6 per cent While the City will need to make major infrastructure investments in the coming years, we have been preparing for this work and have set aside $46 million in the utility reserves that will help offset the costs.

Support safe communities

Regina Police Service Regina Police Service operations, including emergency response, quality investigations, response to non-emergency calls, traffic safety, crime prevention and community building $69.2 M (as recommended by the Board of Police Commissioners) Fire & Protective Services Department operations, including emergency planning and fire services $40.3 M Fire fleet replacement $0.9 M

Parks, recreation and community development Operation and maintenance of our sports, culture and recreation facilities $16.4 M Operation and maintenance of our parks and open spaces $14.3 M Community investment fund that provides financial support to approximately 200 community and partner organizations $7.6 M Open space restoration $0.7 M Recreation facility improvements $0.5 M Transit system Transit system operation and maintenance $28.5 M Bus replacement and repairs $4.4 M

Deliver services that enhance quality of life

Garbage, recycling and Waste Plan Regina Waste collection system operation $9.4 M Landfill investments, including closing existing landfill and developing new landfill $5 M Landfill operation $3.8 M Recycling and other Waste Plan Regina programs $3.2 M  CurbsiderecyclingwillbegininJuly 2013forallresidentsthathaveCity garbagecollection.By2016,Waste PlanReginawillalsoincludeprograms forrecyclingformulti-familyhomes, leafandyardwaste,household hazardouswasteandbulkywaste.

Road extension and new construction Victoria Avenue East, from Fleet Street to city limits $ 8.5 M Chuka Boulevard (Primrose Drive to Arens Road) $5.7 M Parliament Avenue extension (Harbour Landing Drive to James Hill Road) $2.8 Traffic control and safety Safety improvements along 9th Avenue North $2.2 M Traffic signal investments $1.3 M

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How the capital and operating budget changes will affect you
Tax facts
Municipal taxes are only a small portion of the total taxes residents pay. Since cities have limited ways to increase revenue, tax increases are necessary for growth, maintenance and rising costs. Your taxes break down like this: Federal Tax 56.4 per cent Provincial Tax 38.3 per cent Municipal Tax 5.3 per cent * Based on 2012 tax rates The City of Regina receives just over half of the property tax you pay. The remainder goes to the School Boards and Regina Public Library. City of Regina 53 per cent School Boards 41 per cent Regina Public Library 6 per cent * Based on 2012 tax rates Here is the breakdown of where your tax dollars are going in 2013: Regina Police Service 20 per cent Fire & Protective Services 19 per cent Parks, recreation & culture 16 per cent Bridges & roads 15 per cent Transit 13 per cent Managing growth & development 9 per cent Landfill & solid waste 8 per cent

Provincial funding
In 2013 the City expects to receive $40.8 M from the Provinces municipal operating grant. This grant is calculated based on a percentage of PST collected. Our annual grant depends on Saskatchewans economy and is at risk during slower economic times.

The General Fund Reserve represents less than seven per cent of the Citys annual operating revenue. In the past this reserve has been used to support various projects, including deepening Wascana Lake through the Big Dig. Maintaining reserve funds is sound, prudent financial management. The forecasted 2013 total for all City reserves including the Utility Reserve is $111.6 million. With the exception of the General Fund Reserve, all funds set aside in the City reserves have a predetermined purpose.

What does a 4.45 per cent mill rate increase cost?

If the proposed mill rate is approved, the average household with a current value of $285,000 will pay $1,479 per year in City of Regina property taxes.
Current value of your home 2013 City of Regina property taxes* City of Regina 4.45 per cent mill rate increase in 2013 $200,000 $285,000 $450,000
* * *

Debt
The City is bound by law with respect to its debt level. In 2012 the Provincial government increased the Citys maximum debt balance to $350 million from $200 million. The Citys debt balance for the end of 2012 is projected to be $81.6 million.

$1,038

$1,479

$2,336

$44

$63

$99

*Pleasenote:Thesepropertytaxnumbersonlycover theamountpaidtotheCityofRegina,whichis53per centofthetotalmunicipalpropertytaxyoupay.The SchoolBoardandReginaPublicLibraryhavenotyet establishedtheir2013rates.

Get involved and find out more

You can access the complete proposed 2013 budgets online at Regina.ca. The capital budgets cover costs for maintaining and improving city infrastructure, while the operating budgets include ongoing costs. The proposed 2013 budgets will go to Executive Committee on Monday, January 21. The budgets will then be tabled at a City Council meeting and will go back to Council for approval in February. All of the budget meetings will take place at 5:30 p.m. in Henry Baker Hall at City Hall. Residents are welcome to attend. To appear as a special delegation and make a presentation at one of the City Council budget meetings, please call 777-7262. Visit Regina.ca

For the average taxpayer, a 4.45 per cent increase means an additional $5.25 for the City of Regina each month, or $63 a year.

Reassessment
Assessment is the value placed on a property that is used to determine how much property tax you pay. Provincial legislation requires that property values must be updated every four years, and 2013 is a reassessment year. Reassessment is a revenue-neutral process that distributes taxes so owners of properties with similar values pay similar taxes.

Reserves
The General Fund Reserve is the primary, general-purpose financial reserve maintained by the city. This reserve operates like a savings account. The budgeted balance in the General Fund Reserve will be $23.4 million after the 2013 operating and capital budget provisions.

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