Budget Q and A

Through budget deliberations, many questions arise. To help understand more about how the final decision on the 2023 and 2024 budget came to be, the dialogue on some of those questions is published here. Updates will be posted regularly.

Last updated: 2022-12-13 8:15:23 PM

Please view the consolidated questions and answers.

General budget questions 

Click to expand the general budget questions
Please view the consolidated questions and answers.
Is this volume of items typical for a budget cycle? 
Both the quantity of capital projects and dollar value are within the normal range when compared to historical averages.
Are we playing catch-up with maintenance and necessary projects after prior financial initiatives?  
The 2023-24 capital budget represents both regularly scheduled maintenance projects as well as projects that were deferred during the COVID-19 pandemic which was the primary driver of delays.
Does Council also approve the capital projects in the capital forecast years that extend beyond the 2023-24 budget cycle?
No, only 2023-24 projects and their estimated sources of funding will be approved by Council (refer to the blue columns on the charts within each proposed budget on the budget page). Projects beyond the 2023-24 budget approval are forecast for long-term financial planning purposes and will deliberated as a part of future budget cycles.
Are road and sidewalk projects coordinated with the maintenance and upgrade of utilities?
Yes. Full road/sidewalk replacements are coordinated with shallow and deep utilities. Road overlays (replacing the top few layers only, not a full road replacement) are also timed based on the expected life of the road and deep and shallow utilities directly underneath. It does occasionally happen that a road/shallow/deep utility replacement occurs sooner after a road overlay than expected – generally when there is an infrastructure breakdown earlier than expected. 
Is there any difference on the rate of return for Restricted Reserves versus the Heritage Reserve?
Based on our current Investment Policy, all Reserves are invested the same way so it will not make a difference to overall investment returns for the City. Having said that, it is important to note that the investment returns related to the Heritage Saving Reserve (HSR) are currently being reinvested back into the HSR in order to contribute to its growth to approximately $160M over the next two years. This will allow the municipal operating forecasts for 2025 and 2026 to include approximately $5M of HSR investment returns to be recognized as municipal revenue.
How much money, in addition to the recommended $25.3M, would we need to transfer to the Heritage Savings Reserve (HSR) on January 1, 2023 in order to achieve a sustainable annual endowment of $5M earlier than 2025?

Scenario 2: $5.0M withdrawals starting in 2023 (No Inflationary Constraint)

  • no additional funds needed
  • requires a bylaw revision end of 2023

Scenario 3: $5.0M withdrawals starting in 2023 (Inflationary Constraint)

  • requires $4,551,101,000 additional funds
  • not achievable

Scenario 4: $2.0M withdrawals starting in 2023, $5.0M starting in 2025 (Inflationary Constraint)

  • requires $25,975,000 additional funds
  • this is the recommended alternative to scenario 3

Scenario 5: $5.0M withdrawals starting in 2024 (No Inflationary Constraint)

  • no additional funds needed
  • requires bylaw revision end of 2023

Scenario 6: $5.0M withdrawals starting in 2024 (Inflationary Constraint)

  • requires $381,730,000
  • not achievable

Scenario 7: $5.0M withdrawals starting in 2025 (Inflationary Constraint)

  • Original Recommendation
  • alternative to scenario 6

Scenario 8: $7.0M withdrawals starting in 2024 (Inflationary Constraint)

  • requires $1,983,948,000 additional funds
  • requires bylaw revision end of 2023

Scenario 9: $7.0M withdrawals starting in 2025 (Inflationary Constraint)

  • requires $36,929,000 additional funds
  • recommended alternative to scenario 8

Any transfer of funds from the Restricted Reserves to the HSR (in order to build a larger balance and accelerate the timing of the endowment) will negatively impact investment income targets currently included in the proposed budget. Each $10M removed from Restricted Reserves reduces municipal investment income by approximately $437,000.

However, of particular interest, if there is additional 2022 Free Cash Flow generated in excess of the proposed $83.8M, Council may approve the additional allocation to the HSR to increase the balance and accelerate the timing of the endowment especially scenario #4 and #9.

In any case, we highly recommend to maintain the current bylaw provision to protect the HSR from inflation and only include in the endowment the investment return in excess of Alberta CPI.
How much money would we need to be transferred to the HSR on January 1, 2023 in order to achieve a sustainable endowment of $6M or $7M in 2024?
In consideration of the provisions and constraints of the current HSR bylaw #4422, the following are reasonable scenarios:
  • a $26M contribution on January 1, 2023 could accelerate the endowment payment as follows: 2023 = $2M, 2024 = $2M, and then $5M per year commencing 2025
  • a $36M contribution on January 1, 2023 could increase the endowment payment as follows: $7M per year commencing 2025
Can you please explain this apparent inconsistency – the table outlining reserves forecast in the Briefing Note titled “2023 and 2024 Budgets Municipal Tax Supported and Invest Medicine Hat”, dated November 2, 2022 and presented to Council on November 7, 2022, indicates that in 2022 the Heritage Savings Reserve is $143.2M and it is forecasted to be $152.7M in 2023. Your note below indicates that “our forecast for 2025 and 2026 assumes a HSR balance of approx. $160M providing a $5M endowment payment to municipal revenues as an option to balance the budget”. However, the sum of $143.2M and $25.3M (the amount proposed to be added to the HSR on January 1, 2023) is $168.5M.

The $143.2M in 2022 actually assumes an increase of $75.0M in 2022. While the $25.3M isn’t set to transfer until Jan 1, 2023 it appears this has been included as a part of the ending balance for Dec 31, 2022 (one day earlier). Therefore the $143.2M more accurately represents the opening balance and the base investment portfolio that investment earnings will accumulate from for the 2023 year. 

Here is the activity showing for 2022:

2022 Heritage Savings Reserve Activity
HSR2022
Opening balance $57.4M
Transfers $75.0M
Interest forecast $10.9M
Ending balance $143.2M
Where do the revenues from my Electric and Gas Utility Rates show up in the budget?

Electric and Gas Utilities are divided into two components

  1. Consumption and
  2. Distribution

Consumption is a charge you receive for the cost of the actual use of Gas and Electricity within your home. These charges are typically measured by Gigajoules (gas) or Kilowatt Hour (Electricity) and are, for those not locked into a fixed rate contract with the City, subject to fluctuation based on market factors. The budget for the revenues the City receives from your gas and electricity consumption can be found in the Commodity-Based Business Budget. The Commodity-Based Business Budget also includes revenues sold to the Grid.

Distribution is a charge you receive on your utility bill for the cost of the infrastructure used to get electricity and gas from the plant to your home. These charges are largely fixed and do not fluctuate with market pressures like consumption charges do. Within the City of Medicine Hat, the budget for output is included in the Rate-based budget. The Rate-based budget is also where your charges for other Utilities show up, like water, sewer, and solid waste.

It is important to note that the utility increases you might see in the Rate-based budget do not represent all of the charges on your utility bill as charges for electric and gas consumption fall into the Commodity-Based Budget.
What is the difference between Rate-Supported and Commodity-Based Business?

Rate-Supported Business Units include city utilities: water, sewer, solid waste, and gas and electric distribution. This also includes the Water Treatment Plant and the Wastewater Treatment Plant.

Commodity-Based Business Units are focused on the production and sale of gas and electricity.

While rate supported business units focus on the distribution of electricity and gas, commodity-based business units produce and sell gas and electricity to residents and external customers. Commodity-Based Business Units bear the fluctuations of the volatile gas and electricity market, whereas rate-supported services are often less volatile and more predictable.
Which Capital Expenditures are “investments” in the sense that they have a return on investment?
The City performs a cost/benefit analysis on all capital expenditure requests to assure that the benefits of a project outweigh the costs. The City of Medicine Hat is a diverse organization that must balance both business and social priorities. As such, the city does not only consider financial returns but non-financial as well; such as improved safety of our residents and access to services. Even projects that are simply replacing old infrastructure produce a return on investment when compared to a ‘do nothing’ scenario where there is service disruption or higher cost repairs to maintain the service in the future.
If the project name includes a year, is it correct that the project is planned for that year and any outcomes are only applicable if the project occurs in the year included in the project name?
The assumption is correct. For example, within City Operations, the asset condition and forecasted load demands are updated yearly to ensure the most accurate information practical. Project outcomes are based on the latest update of our infrastructure models for that specific asset and are the projected impacts for that specific budget year rather that current-day conditions. Given that models are updated yearly with realized data/demands for the prior year the projected impacts are subject to change and therefore may alter the potential timing as we get closer to a particular budget year. The capital plan will continue to be refined each budget cycle projecting-out 10 years hence specific projects currently named outside the current budget cycle are subject to change as we collect more up to date information each year/inspection cycle.
Why do some of the project year numbers not match the year they show up in the forecast?
Please note that some projects which were recommended for deferral within the 2023 to 2024 business cycle may still indicate 2023 or 2024 within the project name but are now placed in 2025 or beyond. Projects which were recommended for deferral will be reviewed again prior to the next business planning cycle to ascertain whether they should move forward for City Council deliberation in subsequent budget years.
How do we decide what will be funded from debenture vs. internal loans vs. reserves?
Items funded from debenture are usually larger dollar items as there is administrative work to implement the debenture. This is a balancing act, we determine how much we can debenture borrow while still maintaining our debt limit under the CMH policy of 70%. We would then look at other funding sources available to fund the remaining outstanding amounts including grants.
What is the difference between funding something through an internal loan and funding something through reserves?
Internal loan are funds provided from the reserves and these funds are repayable back to the reserve over a specified period. Items funded through reserves are not paid back to the reserve.
There are a lot of capital projects in 2025 and 2026, why is that?
Capital projects listed beyond 2024 are projections based on current asset conditions, replacement schedules and strategic priorities and will continue to be revised/refined as more information is collected through our asset inspection programs or when other alternative mitigation strategies are developed. Capital projects in the capital forecast beyond the 2023-2024 budget year will be reviewed to confirm priority, scope and cost estimates including risks related to the asset condition and performance prior to the future budget recommendation to ensure they are still relevant and accurate.
How do we decide what gets funded under a rehabilitation program and what gets broken into one off projects?

Typically general rehabilitation will happen under the rehabilitation program. However, one-off projects may be designated separately from the rehabilitation program if:

  • Projects are of a large dollar value that exceeds what is normal under the rehabilitation program
  • Projects also include separate asset classes that are not defined under the rehabilitation program
  • Projects are not just for rehabilitation but also for upgrading or improving current infrastructure
  • Unique funding or grant opportunities exist
  • Separate departments within the city are responsible for a project

Specific maintenance is planned within infrastructure rehabilitation programs however these budgets can also be used for unexpected maintenance that aligns within the scope of the rehab program mandate without requiring a budget amendment.
Some projects have the same name as others, but different years. Are these projects the same? 
As per our capital budget guidelines document, funding related to future budget years has been set up as a separate project even if it relates to projects in the current year. This is to ensure that we are only recommending to council to approve funding for moneys that can be spent in the budget years. 
What typically happens to projects that are denied funding in the budget? 
 Projects that are denied funding in the current budget cycle are either delayed until a future year or are removed altogether. Items that are deferred are moved into the capital forecast but are not guaranteed to occur in future years. Rather, deferred items will be reviewed as a part of the next budget cycle to determine whether the item is still required. The City uses a priority ranking process to determine the risk of delay particular capital projects. The risks of delaying projects are balanced against the city’s limited resources to determine the optimal use of city funding.
Questions from City Council Committee of the Whole - budget deliberations

 Please view the consolidated questions and answers.

Please provide information in support of their business plans that identify clear explanations that reference Council’s Strategic Priorities including established metrics for each identified project. How do we know we are successful? 
  • Departmental Business Plans include key objectives and initiatives with deliverables and key performance measurements or the ‘how’ (for Council information). They are prepared by each Director using both:
    • a ‘bottom up’ assessment of work required to maintain services provided to the community and improve delivery/sustainability of core work, and
    • direction from the four-year Council Strategic Plan
  • Draft Business Plans have been provided to Council as information and will be finalized and posted on the City website early in the new year.
Please define PEP, FTE and Consultant in relation to budgeted and proposed staffing positions.
  • A Permanently Established Position (PEP) is a employee position that is explicitly approved through the annual budget process and identifies a resource that is intended to be permanent in nature (vs. temporary). As such PEP’s represent a headcount of all permanent positions within the City of Medicine Hat workforce. A PEP can be either part-time or full-time but not temporary.
  • Full-time Equivalents (FTE), by contrast, is a calculation based on the sum total of hours worked by all employees within the City of Medicine Hat workforce, regardless of whether they are permanent or temporary, full-time or part-time. FTE’s do not represent a headcount of employees but rather what the headcount would be if the total hours worked by the workforce were performed exclusively by full time employees. So while PEP’s represent a headcount of the permanent employees working for the City, the FTE’s represent the labour resource requirements of the City. All FTE’s regardless of whether they are a PEP or not are included as Salaries and Wages in the City’s Budget.
  • A Consultant or a Contractor is not an employee of the city. Rather they are an outsourced service that the City acquires through the Request For Proposal (RFP) process. Hiring a Consultant is a business case decision, balancing the scope of what resources are required to deliver on a particular project or service for the City’s residents, with what resources are available in-house and the labour market at-large. Consultants are typically hired in cases when the City has special projects that require a special skill set not available in the labour market or when there are temporary but urgent gaps within the workforce. Consultants and Contracted Services are separated in the budget from Salaries and Wages and show up under the “Contracted and General Services” line in the budget.  
What are the new positions and how do they serve the community? Are the positions “boots on the ground” or “management”? Are we putting money into health and wellness encompassing all needs of individuals? 
As requested by Council, an analysis of People Resources – Workforce Additions is linked and highlights how each position serves the community. 
Identify any strategies, plans and related documents referenced in department business plans that are not currently available to the public. 
  • Departmental Business Plans include key objectives and initiatives with deliverables and key performance measurements; the ‘how’ (for Council information). They are prepared by each Director using both:
    • a ‘bottom up’ assessment of work required to maintain services provided to the community and improve delivery/sustainability of core work, and
    • direction from the four-year Council Strategic Plan.
  • Draft Business Plans have been provided to Council as information and will be finalized and posted on the City website early in the new year.  
Capital Budget – are we executing with excellence and are we beyond what we need? 
  • Capital Budgets have been prepared, within our affordability envelope, through a rigorous identification and ranking process to ensure continuation of our current service levels and to meet regulatory requirements. Although some select capital was deferred in previous years during COVID, current base spending is generally in line with historical levels.
  • The development of a city-wide asset management framework has been identified as an objective for 2023/2024 budget.

What can we do in the next 30 days to support our taxpayers and address the 4% proposed municipal tax increase?
  • The proposed increase translates to an estimated $107 annual increase for the median home of $289k – in any case, residents are encouraged to sign up for the Tax Installment Payment Plan (TIPP) allowing for equal monthly installments throughout the calendar year to make budgeting easier. Further, for those struggling with payments, please contact our Customer Care group to discuss options of repayment plans.
  • The proposed property tax revenue increase establishes a reasonable balance between financial sustainability and organizational health, including preserving and maintaining the high quality of municipal and utility services valued by residents. The increase is required to stay in line with municipal inflation and is lower than contemplated by many other similar Alberta municipalities. This budget also provides competitive property tax and utility charges as confirmed by a recent City of Calgary survey which continues to show City of Medicine Hat as amongst the lowest property taxes and utilities charges for a median home.
Please prepare a summary of reduced Government of Alberta funding and impacts to the 2023 and 2024 budgets. 

The following schedule outlines the impact of reduced Government of Alberta funding to the 2023 and 2024 budgets:

Reduced Government of Alberta funding
 2023 impact2024 impactComments
Increase in AB service fees for fine revenue $425,000 $425,000 Increase fee from 30% to 40% (gross $4.25M budget x 10% increase in fees) – commencing 2019
Decrease in Grants in Place of Taxes (GIPOT) $540,000 $540,000 Decrease portion from 100% to 50% ($1.082k budget x 50% decrease) – commencing 2020
Change in interest calculation for loans $410,000 $270,000 Increase in margin by 0.7% (new debt 2023: $58.5M and 2024: $38.4M) – commencing 2022
Greenhouses exempt from taxation  $162,000 $162,000  Greenhouse property assessment (2022) = $10.3M which translates to annual municipal taxes = $162k 
Total $1,537,000 $1,397,000  

Further, the City of Medicine Hat receives approximately $12 million annually for Municipal Sustainability Initiative (MSI) grants to build and rehabilitate road and utility infrastructure as well as facilities. In 2025, the grant program will be significantly amended by the Province to the Local Government Fiscal Framework (LGFF) and grants will be reduced across the province by approximately 25%. Although the allocation formula to each municipality is yet to be determined, we are estimating an impact to City of Medicine Hat of approximately $4 million per year. 
A lot of expenses have been moved to 2025/2026. Are we creating a future problem? 
Infrastructure programs within City Operations are reviewed annually to ensure the highest and best use of public funds balancing risks with service reliability and fiscal responsibility to our rate payers recognizing finite funding resources. Capital projects listed beyond 2024 are projections and will continue to be revised/refined as more information is collected through our asset inspection programs or other alternative mitigation strategies developed. City Operations projects in the 2025+ budget forecast will be reviewed to confirm risks related to the asset condition and performance prior to the future budget recommendation to ensure they are still relevant and accurate. 
The decision package identifies quite a few plans, programs and strategies, some of which I didn’t know that we had. Would it be possible to store these in one spot and ensure they are all publicly available? 
The City has a number of plans, programs, and strategies some of which can be found on the City website under Plans, Reports and Studies. Others are in various stages of development and could be posted on the website as they are completed and approved. 

 

 

Municipal tax-supported budget FAQs

General questions 

 Please view the consolidated questions and answers.

Why are Invest Medicine Hat's returns lower than in prior years? 
The current Invest Medicine Hat budget has been updated to reflect sales forecasts for current land inventories based on current economic factors. This forecast represents a placeholder with the full expectation that it will be revisited once a resourcing plan and related future strategies within Invest Medicine Hat have been confirmed. 
Provide clarity on the seven new positions in Human Resources, including anticipated duties and what will be achieved.
This memo explains how the positions are expected to advance Council's priorities.
Questions about Major Operating Expenses (MOEs) 
Please view the consolidated questions and answers.
Why is the City spending money on HRD-2023 MOE-Total Compensation Review and HRD-2023-MOE-HR Systems Optimization?

HRD-2023 MOE-Total Compensation Review was triggered by the organizational realignment in 2021, particularly the addition of new positions/job descriptions, and change in scope/breadth of existing positions.

HRD-2023-MOE-HR Systems Optimization is proposed for a combination of reasons: recognizing a need for more efficient/effective reporting to meet business needs, as well as embracing innovation as indicated in Council's strategic priorities.  
What is the Active Transportation Plan (26310512)?
The Active Transportation Plan (ATP) is a Major Operating Expense. Which means this is not a capital asset but a one-time tax-supported expense. The ATP would respond to the Canadian Health crisis of decreased physical activity and increased chronic disease. This plan lays out a city-wide strategy for planning and designing active transportation facilities and networks as well as other non-infrastructure related initiatives to promote and educate the community about the benefits and importance of human-powered forms of travel. This project will be partially funded by Government Grants and led by the City Planning department. City Assets will work hand-in-hand with Planning to ensure alignment with transportation infrastructure and Transportation Safety Plan development.
What is the Transportation Safety Plan (23310511)?
The Transportation Safety Plan is a Major Operating Expense. Which means this is not a capital asset but a one-time tax-supported expense. In recent years, multi-modal forms of transportation (e.g. cycling, e-bikes, e-scooters, skateboards) have become increasingly popular; and municipalities have had to adjust their thinking relating to shared use of roadways. In response, municipalities are taking a more holistic approach to transportation safety, with many developing comprehensive Transportation Safety Plans (TSP) to mitigate safety risks associated with transportation related issues. This funding will help us to develop a Master Transportation Safety Plan which will include Stakeholder and Community Engagement, optimization of Regulation and Transportation best practices.

 
Questions about Tangible Capital Assets (TCAs)  
Please view the consolidated questions and answers.
CDV – 2025-2032 TCA – Theatre Seat Replacement: What will be done with the seats that are removed? Is there any opportunity to recover costs associated with this project?

The seats will likely be disposed in a safe manner unless a donee is identified. Donating seats can be complicated as theatre seats require additional cost to reconfigure the floor for the installation.

Opportunities to recover costs associated with the project would be grant fund opportunities. 
Why was CDV - 2023 TCA - Bar Installation at Co-op Place considered a priority in the 2023-24 budget?
A portable bar was used to serve highballs on a trial basis for events. The drink station helps reduce lineups and increase convenience. We know drink availability is a big contributor to patron satisfaction and are high margin sales items. However, the portable unit was deemed inadequate for a number of reasons. There is no running water (ie. handwashing and cleaning station) nor access to sewer so all liquid needs to be removed from the area manually. Stock has to be moved in and out for every event. This project will rectify those concerns allowing us to maintain the benefit of an additional drink service location.
COP FM 2023 - Crestwood Pool Components Lifecycle: Is there funding in this 2023-24 capital budget to assess the future of the Crestwood Pool facility?

The 2023-24 Capital Budget, includes various small lifecycle management of various infrastructure items which are intended to extend the useful life of the facility 10 to 15 years and is intended to maintain the facility in operating order while corporate recreation planning activities continue through finalization (e.g. a pool liner versus wholesale pool tank replacement, some air handling unit replacements and related duct work, and miscellaneous small plumbing upgrades). Further investment will be required should City Council determine that this facility should remain open beyond the 10-year planning envelope.

The scope does not include any studies pertaining to the Facilities for the Future initiative currently being led by the Parks and Recreation department. That initiative will feed into future infrastructure planning in future budget cycles and is not intended to be funded from this capital budget.
COP FM 2023 - Crestwood Pool Components Lifecycle: Just a question about timing of this project. I am hoping that Substation-11 may be complete or nearing completion by that time, which would mean we could potentially begin construction on a new south side recreation facility. Is this project timeline flexible based on those factors, along with anticipated failures at Crestwood?  
The anticipated completion date of Medicine Hat Substation 11 will be end of 2025 assuming the Alberta Utilities Commission approves one of the proposed locations. If both locations are denied then City Operations will need to restart the entire approval process thereby delaying the substation by 2.5 to 3 years (for early 2028 completion). Regarding Crestwood, City Operations continues to work closely with Parks and Recreation on their Facilities for the Future project. Capital work/projects pertaining to Crestwood pool will be carefully planned to coordinate activities to ensure the optimal use of public funds. Projects currently planned at this location are designed to extend the useful life of the facility to enable City Council time to debate the ultimate plan for Crestwood. City Operations will not initiate projects at this location without detailed conversations with Parks and Recreation to ensure we are not expending unnecessary funds. Therefore, we do see the timing of execution as flexible but still highly recommend funding remain in place to ensure adequate resources are allocated should we experience another unplanned failure at this location. 
Please explain more about "COP - FLT - 2023 - Mobile Capital" and "COP - FLT - 2024 - Mobile Capital." Has Mobile Capital been funded in a similar way and amount in the past?
These projects represent the annual Fleet replacements. The budget process has not changed from the past, but the presentation of the budget changed. Instead of listing each individual unit that is up for renewal, the total amount required for Fleet replacements is what is presented for approval. The detailed listing still exists with Fleet as the basis for the lump sum amounts each year. 
PKRC - 2023/2024 TCA - South Saskatchewan River Recreation
Opportunities: Is this part of the Downtown plan or a different focus entirely? Is 2023 for studies and 2024 for implementation of recommendations from the study?
This project is to upgrade the boat launch at Echo Dale Regional Park. It was identified in the 2015 South Saskatchewan River Recreation and Leisure Plan. We have seen increasing activity on the river that starts upstream at Echo Dale and therefore increasing access capability and safety has become an increasing priority.
Is there an overlap between the Transportation Infrastructure Rehabilitation Program (23210672) and the Airport projects for Detailed Design (24210511) and Construction and Groundside Access Improvements (24210510)? 
The Transportation Infrastructure Rehabilitation Program mainly addresses the need to repair/rehabilitate existing roads, sidewalks, etc. There are plans in the 2023-24 Transportation Infrastructure Rehabilitation Program for geometric upgrades at two intersections along Gershaw but upgrades to Airport infrastructure are not addressed within this program. This program is not for asset management but for improvements to the existing intersection designs and forms part of the Roadway System Master Plan execution strategy for specific locations. The Department will engage with Stakeholders and Residents in the process of executing/continuing this program. 
What is the Laneway Rehabilitation Project (23210684)? 
Laneway and sidewalk rehabilitation forms part of the City’s overall Asset Management Strategy focusing on roads, lanes and sidewalk rehabilitation and resurfacing. This program consists of lane overlays and structural rehabilitation. 
What is the Bridge Rehabilitation Project (23210674)? 
The city is responsible for 21 bridges and culverts in accordance with the Canadian Bridge Code. This program is for ensuring the city adheres to Federal and Provincial requirements for Bridge Management. The city works closely with Stakeholders like Alberta Transportation where applicable. 
What is the Bridges and Boardwalks Infrastructure Program (32610657)? How does it differ from the Bridge Rehabilitation Program (23210674)? 
The Bridges and Boardwalks Infrastructure Program is lead by our Parks and Recreation Department while the Bridges rehabilitation program is lead by City Assets. The Parks department is primarily accountable for bridges and trails within city parks. The program includes assets such as bridges (timber structures and/or steel structures with timber crossings) with railings, timber boardwalks (no railings), and corrugated steel pipe (CSP) culverts with earth berms and asphalt. These permit trail utilization over water bodies, groundwater seepage areas, and elevated areas over undulating ground.
What is the Trail Infrastructure Program (32610650)?
For 2023, the trail infrastructure rehab program seeks to replace all trails that are considered in very poor condition as well as replacing 16% of the trails in poor condition. The city has over 160 km of trails within its jurisdiction with an estimated replacement value of $35 million. As outlined in the “Informing the Future – Canadian Infrastructure Report Card”, trails have a targeted rate of reinvestment at minimum of 2% per year with an upper target reinvestment rate of 3% per year. Our plan represents a replacement value of 2.5%, perfectly within the benchmark standard for replacement. The Parks and City Asset departments work closely to ensure best practices are followed regarding the use of city equipment and human resources.
What is the Multi-modal Transportation Connectivity Plan (23210675)? How does this differ from the Transportation Safety Plan (23310511)?
By contrast to the Transportation Safety Plan (23310511) which is a Major Operating Expense, this project is for the purchase of capital expenditures. This project will improve connectivity within the pedestrian network by constructing sidewalks in deficient areas as well as expand uses to include multi-modal forms of transportation in areas where applicable. Also, improved accessibility will be realized with construction of wheelchair ramps where required. This project will help reduce a safety risk by creating a more pedestrian/multi-modal friendly environment and help improve the overall health and wellness of citizens. This project includes installation of new sidewalks and multiuse trails where needed. Priority areas include the hospital area, near school zones, and areas where infrastructure is needed to connect existing infrastructure. … This project also includes construction of new wheelchair ramps to be installed at appropriate locations in deficient areas.
How does the Active Transportation Plan compare to the Roadway System Mater Plan?
The Roadway System Master Plan (RSMP) outlines the City’s transportation network requirements into the future based on population projections from the municipal development plan. The RSMP identifies the class of roads and location of roads that will be required to adequately handle traffic volumes as the city population grows. The Active Transportation Plan deals with the emerging use of multi-modal transportation options such as cycling, e-scooters, roller blades, etc. The ATP is a planning document that outlines “where (network location), when (implementation schedule) and what (on or off road)” needs to be established to develop an effective multi-modal network that provides safe, efficient infrastructure for all users. The Transportation Safety Plan deals with safety issues associated within the entire transportation network including vehicles, pedestrians, and multi-modal users. The TSP will identify the safety issues and provide a toolbox of potential mitigative measures. For example, speeding in residential areas addressed through a reduction in posted speed combined with traffic calming measures.
What is the Drainage and Erosion Remediate Infrastructure Program (32610654)?
Northwest Riverside Trail is a very popular trail and is part of the primary active transportation route. Due to overland drainage as well as river scour/erosion, the bank is eroding and the trail is subsequently sloughing into the South Saskatchewan River. The drainage and erosion program focuses on identifying locations of highest concern, engineering/design, all regulatory approvals, and mitigation.
What is the South River Bank Improvement Program (21610559)?
The purpose of this project is to protect the WWTP from infrastructure and property damage, should the South Saskatchewan River experience a 1:100 year flood. A 2018 study by MPE identified approximately 450 metres of the South Saskatchewan Riverbank immediately adjacent to the WWTP that should be protected in three construction stages. Stage 1 and 2 are identified to be completed simultaneously for 2024, while stage 3 is listed for 2025. This project involves upgrading the river bank with riprap armoring in order to protect the WWTP during flooding.
What is the Transportation Infrastructure Rehabilitation Project (23210672)? 
This project is the City’s Rehabilitation program for vehicular, pedestrian, cycling, rail and air related transportation infrastructure. This includes various forms of asset management to address deteriorating transportation infrastructure. These projects leverage maintenance as often as possible to reduce the need for full roadway replacement projects. Eventually, full road replacement will become necessary, and the City invests where possible to reduce expensive and disruptive projects. 
What is the Dunmore Road Rehabilitation Project (23210679)? 
This project is specifically for Dunmore Road pavement surface rehabilitation. Typically, these are larger corridor projects that include asset management rehab, but may also include capacity upgrades or surface enhancements that are not considered infrastructure asset management. 
What is the South Boundary Road Rehabilitation Project (23210681)? 
This project is specifically for South Boundary Road pavement surface rehabilitation. Typically, these are larger corridor projects that include asset management rehab, but may also include capacity upgrades or surface enhancements that are not considered infrastructure asset management. 
What is the College Avenue Bridge and Kipling Intersection Project (23210705)?
This project includes substantial redesign of the existing culvert crossing and intersection to improve creek flow and traffic congestion that is anticipated as the city population grows.
What is the Industrial Ave Bridge Replacement Project (23210707)?
This project is a full bridge replacement as the existing bridge is reaching its end of life.
What is the Day Street Bridge Replacement Project (23210708)?
This project is a full bridge replacement as the existing bridge is reaching its end of life.
Why, in certain cases, is future funding for a particular project listed as separate projects?
In general, future funding for a particular project may be listed as a separate line items if the funding is not needed until after the budget cycle. This prevents the city from tying up its capital funding in its 2023-24 budget for projects that will not experience cash outflows until future periods. In other cases, certain grant programs (e.g., ICIP) require that there is a separate line items for each year of a project.

 

 

Utility rate-supported budget FAQs

General questions 
Please view the consolidated questions and answers.
Questions about Major Operating Expenses (MOEs) 
Please view the consolidated questions and answers.
Questions about Tangible Capital Assets (TCAs)  

COP-Gas Distribution 2032 Rural System upgrades Phase 2: What is the cost/benefit analysis on this project for a single property? 
Rural System Phase 2 is currently earmarked to occur in 2032. Scope includes extending a medium pressure line to the customer which would replace the existing high pressure meter-set and odorant station on the customer's property. This has operational advantages to the utility by removing the customer from the high pressure system and decreases the risk of an event occurring on the above-grade high pressure riser which is currently in-place. The high pressure system is intended to be the overall system backbone and is not designed to have individual services tied into it, rather the medium pressure system is designed for that purpose. The service itself will be reaching the end of its useful life on or around 2032 and will require work of some kind before there is a failure in the service which could impact the broader distribution system. City Operations continues to review and refine our capital plans each year following our risk-based asset management principles. This ensures that rate-payer funds are spent on the highest value projects while protecting the safety and service reliability to all our customers. Capital projects currently planned in the 2025 to 2032 horizon will undergo a detailed analysis prior to the next budget cycle to ensure the highest risk/highest value projects are recommended to City Council for 2025 to 2026. 
What is the Kipling St SE Main Twinning Project (20810622)?
This budget item is for installation of a twin water main to reinforce the single feed to the Kipling Booster Station. This project is currently in the design stage.
What is the Water Mains Asset Management Program (20810623)?
This budget item is for replacement of undersized and poor condition water mains on 3rd St. SE in the Flats and on Dunmore Road at 21st and 22nd St., and replacements of Pressure Reducing Valve (PRV) vaults on Maple Avenue and on 1St St SW. These projects are currently in the design stage.
What is the 3rd Street Water Mains Replacement Project (20810619)?
This budget item is for replacement of undersized and aged water mains on 3rd St. SE downtown from South Railway St. to 5th St. SE. This project is currently in the design stage.
What is the North Reservoir Main Twinning Project (20810621)?
This budget item is for installation of a twin water main to reinforce the single feed to the North Reservoir. This project is currently in the design stage.

 

Commodity-based budget FAQs

Please view the consolidated questions and answers.