2017
Town of Battleford Budget
John W Enns-Wind MDiv., MBA
CAO, Town of Battleford
4/17/2017
Budget 2017
Contents
Mayor’s Message........................................................................................................................................................2
Chief Administrative Officer Message ........................................................................................................................3
Budget Process ...........................................................................................................................................................4
Capital .........................................................................................................................................................................5
Table #1: 2017 - 2018 Major Capital Items ........................................................................................................5
Figure #1: Capital Spending by Department ......................................................................................................6
Town Hall ................................................................................................................................................................6
Table #2: Town Hall Capital Items ......................................................................................................................7
Sidewalks ................................................................................................................................................................7
Roads ......................................................................................................................................................................7
Table #3: Roadway Projects ...............................................................................................................................8
Utilities: Water and Waste Water ..........................................................................................................................8
Table #4: Water and Waste Water Projects 2017 - 2020 ...................................................................................9
Facilities ..................................................................................................................................................................9
Table #5: Facility Capital Considerations ......................................................................................................... 10
Moving Forward ...................................................................................................................................................... 10
Operations ............................................................................................................................................................... 11
What does this Mean for our Taxpayers? ............................................................................................................... 12
Thank You ................................................................................................................................................................ 12
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MAYOR’S MESSAGE
Spring has arrived in Battleford and with it the 2017 Town Budget. I would like to thank Council and Administration
for their work and dedication to finalize this year's budget. This year we present a modest budget, but a Budget
that represents forward progression in a year where we saw financial reductions from both Federal and Provincial
Governments. A year where the economy has slowed down as result of reduction to resource revenue's. It would
have been easy for Council to say "Next Year." However, this budget addresses key Infrastructure projects without
delay or impact to taxes.
The 2016 census was released showing a 9% increase in population putting Battleford's population at 4,429
residents. This is a positive increase one that Council will refer to as we make decision to strengthen and improve
our community in such a way that more individuals, families and business choose to call Battleford home.
To the residents of Battleford may 2017 be a safe and rewarding year and most of all may it be a year you can
enjoy many of the great amenities our community provides.
Council 2016 – 2020: Back left to right – Gordon Yarde, Doug Laing, Kevin Russell, Susan McLean Tady
Front left to right – Judy Pruden, Mayor Ames Leslie, Shelley Boutin-Gervais
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CHIEF ADMINISTRATIVE OFFICER MESSAGE
On behalf of the Town’s leadership team it is a privilege to present to Council and the residents of Battleford the
2017 Budget. Included in this budget is the capital and operating budget. The leadership team, including the CAO,
Finance Officer, Director of Parks and Recreation, Public Works Manager, and the Utilities Manager, have
restructured how and when the budgets are done.
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The presentation and acceptance of a budget prior to Christmas for the following year is a priority.
A risk matrix has been established over seven categories on a scale of 1 – 5 to determine the priority of
capital projects.
A long-term capital plan is being developed through the use of the risk matrix and will lead into the
development and implementation of an asset management plan. What is the best way to invest the
Town’s money to preserve its existing assets and accommodate growth?
And, financial control policies have been adopted providing guidance for investments, credit card use,
and reserve funds.
During the course of 2016 the Leadership Team reviewed the Town’s assets including:
• Bridges
• Facilities
• Waste water
infrastructure
• Buildings
• Roads
• Water infrastructure
• Equipment
• Solid waste
The result, in consultation with engineers, was the realization of an infrastructure deficit of more than $30 million.
Administration and Council are working hard to determine how to best address these challenges. This is where
the long-term capital plan, investment policies, reserve fund policy, and asset management plans are tools to
manage these challenges.
The economic conditions have also affected the Town’s revenue like other municipalities across the province. The
Town’s total revenue is expected to be down 11%, approximately $550,000, through reductions in Revenue
Sharing and other federal and provincial transfers such as the RINK Grant and Payment in Lieu of taxes for
SaskEnergy.
Also of note is the change in tax discounts. In 2016 almost $165,000 of discounts was expensed to residents. This
year the total discount is expected to be $150,000. The proposed tax increase is approximately $100,000, of the
resulting in a net savings of approximately $50,000 to rate payers.
In 2016 the Town helped North Battleford after the oil spill in the
North Saskatchewan River. As a result, the Town’s utility reserve
saw an increase of approximately $1 million due to sales of water
to the city at the Town’s approved water rates set in 2012.
Reserves increased from $8,223,787.40 at the end of 2015 to
$9,105,027.40. The Town will resume supplying water to North
Battleford the end of April and utility revenue is expected to
increase again in 2017.
Water feed to North Battleford
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BUDGET PROCESS
The budget was first pulled together by Administration with input from Council regarding their priorities. For 2018
the budget will be linked to Council’s new strategic plan which is still under development. An example of a change
you will see in the next capital budget is direct linkage to the strategic priorities of Council. Below are some of the
changes made with the process and the rationale.
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The budget cycle:
• The budget cycle has been changed with the intention of tendering projects earlier to receive better
prices and to assure project completion in the budget year.
• The earlier adoption of the budget also means that the leadership team can effectively and efficiently
plan their maintenance programs.
Risk Matrix:
• The Town of Battleford is responsible, directly and indirectly, for approximately $300 million in assets
and the quality of life for almost 4,500 people.
• The risk matrix is a tool for the leadership team to, as reasonably as possible, allocate resources based
on need. There are seven categories.
• Likelihood of failure: will the asset fail and does it matter if it fails?
• Injury risk: could someone be injured or die if work is not completed?
• Service interruption: will residents’ and businesses’ daily routine be interrupted?
• Environmental: will the environment be damaged affecting residents’ quality of life
• Financial: is it economical to maintain, repair, or replace? Could the Town be exposed financially if
work is not completed or deferred too long?
• Reputation: how will the Town’s reputation be affected by doing or not doing the work? Is the
Town’s image improved or maligned?
• Legal: if work is not done could the Town be at risk of litigation?
Long-term Capital Plan:
• Sustainable financial stewardship includes a long term financial plan built on the foundation of timely
and relevant information about community infrastructure, community needs, and community
aspirations that leads to the right investments at the right time, minimizing future repair, replacement,
and maintenance costs.
• Asset management is disciplined decision making regarding the building, operating, maintaining,
renewing, replacing and disposing of infrastructure assets;
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Asset management results in maximizing benefits and utilization, managing risk, and the appropriate
level of service.
Both the federal and provincial government have either moved or are moving to the inclusion of an
asset management plan as a requirement to be included in grant applications.
Asset management has been identified as a best practice and is stipulated in the Official Community
Plan and Zoning Bylaws.
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Financial Controls:
• Financial controls have been introduced to ensure openness and transparency
• Cheques are approved by Council prior to being mailed out
• Financial control policies include: Investment Policy, Credit Card Policy, and Reserve Fund Policy
have been introduced.
• Council expenses are now approved and signed by other members of Council and the Mayor.
As mentioned earlier, the Town has an infrastructure deficit over $30 million. The deficit is due to the aging of
assets and the need for maintenance, repairs, and replacement. There is still more work that needs to be done to
determine how best the manage the infrastructure deficit.
CAPITAL
Capital projects for 2017 total $4,451,712. The major priorities include:
Table #1: 2017 - 2018 Major Capital Items
Asset
Arena Ice Plant
Project
Date
Replacement
Cost
2017-2018
$1,000,000
Battle West Playground New Playground
2017-2018
$100,000
Equipment
Bucket Truck
2017
$74,000
Road 656
Rebuild and Pave
2017
$450,000
Sidewalks
Repair & Replacement
2017-2026
$100,000
Town Hall
Brick Preservation
2017
$600,000
West Park
Reservoir/Upgrade
2017-2018
$3,000,000
Total
$5,324,000
1. West Park Upgrade/Reservoir: includes upgrades to the water
and waste water system. $2.4 million
2. Town Hall Preservation: the bricks are decaying and need to be
preserved. $600,000
3. Road 656: needs rebuilding and it is more cost effective to pave
rather maintain gravel. $450,000
4. Arena Ice Plant Replacement: the ice plant uses Freon and the
production of Freon stops in 2019. A new ice plant needs to be
Current Ice Plant
installed that uses ammonia. The ice plant room needs major renovations and upgrades to
the electrical. $175,000
5. Sidewalks: many sidewalks need repair and replacement. The Town is allocating $100,000 per year to
repair and replace them.
6. Battle West Playground: as part of its Development and Servicing Agreement the Town is to install a
playground. $100,000.
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7. The largest piece of equipment being replaced this year is the
1964 bucket truck; it has served the Town well. Public Works
and Parks have purchased 2007 3-ton Freightliner for $74,000
in replacement.
2007 Freightliner 3-ton Bucket
The 2017 projects have determined through our risk matrix. Utilities is spending 58% of capital, Parks 11%, General
Government Services (the brick preservation project), is 14%, and Public Works is 17%.
Figure #1: Capital Spending by Department
Parks &
$446,700
General Government Services
$600,000
Public Works
$709,500
Utilities
$2,460,850
TOWN HALL
The Town Hall was built in 1912 and last renovated in the 1980s.
Currently about 40% of the building is used; the building is
under utilized. In 2016 the basement was gutted, insulated,
chair lift installed for accessibility and the washrooms
renovated. Outstanding for the Town Hall:
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Brick Preservation: estimated at $600,000 scheduled for
2017
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Town Hall Utilization: how best to utilize the Town Hall?
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Community engagement including community
consultations, concept and business plans: $200,000
• Renovations to utilize the whole building: $5 million to
$10 million. (it is important to know that it is cost effective
Town Hall Basement after being gutted and insulated.
to tear the building down and build a new one.)
• HVAC/AC: the current system dates to the 1980s and needs replacement: $145,000
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The sidewalks and lawn surrounding the Town Hall are in a poor state. $50,000
Table #2: Town Hall Capital Items
Component
Project
Date
Cost
Exterior
Brick Preservation
2017
$600,000
Exterior
Sidewalks, Handrails, Landscaping
2018
$50,000
Interior
Utilization Consultations
2018
$200,000
Interior
Renovations
Unknown
$5,000,000 - $10,000,000
Interior
HVAC/AC
2018
$145,000
Total
$6,000,000 - $11,000,000
SIDEWALKS
• Many of the downtown sidewalks are in poor condition. It has been estimated
that it will cost $1 million to repair the downtown sidewalks in one season.
$100,000 per year has been allocated for repair and the building of new sidewalks.
Sidewalk along 1st Ave East Side
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ROADS
• The Town has approximately 37 kms of paved roadways and 8 kms of graveled
roads.
• A significant majority of the paved roadways have reached the end of their
expected life cycle.
• For the last five years approximately $500,000 per year has been spent
asphalting roads.
Battlefords roadways, at 72% fair or better condition, do not meet the 90% target of roadways in fair or
better condition. To reach the target would require approximately $5 million.
The Town has a five-year plan to move forward but this will need to be evaluated on an ongoing basis.
• Also, to be evaluated is the amount of investment to be made in the roadways given their condition.
• It has been recommended that roadway investment be
increased well above current levels.
Many curbs are made of asphalt and need to be replaced
as part of a curb and gutter program in conjunction with
road work.
The North Saskatchewan River Bridges and the bridge at
the old HWY #4 location are the Town’s responsibilities.
• The North Saskatchewan River Bridges are near the end
of their design life.
• The Bridge along the old HWY #4 is to be demolished.
Estimated cost $500,000.
Spring Road Repair on 23rd St W
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Deferring roadway repairs will not result in savings
Any asphalt project needs to be coordinated with subsurface infrastructure.
The following table outlines minimum investments required for Battleford’s roadways pending subsurface
infrastructure condition indexing.
Table #3: Roadway Projects
Roadway/Bridge
Project
Date
Cost
29th St 300 Block
Shape base and pave
2017
$52,000
Road 656
Install base and pave
2017
$450,000
23rd St 200 Block
Reconstruct, curb and gutter, pave
2018
$271,000
1st
Gutter patch, curb & gutter, levelling, pave 2018
$460,000
Pave overlay
2019
$165,000
2nd Ave 30th St & 35th St Storm sewer replacement
2020
$267,750
2nd
2021
$185,900
Ave W St
27th
2nd
Ave &
3rd Ave Riverbend &
35th St
Ave
30th
St &
35th
St Road, curb and gutter
5th Ave Battle West
Reconstruction and pave (DSA is different)
2021
$245,000
Roadways
Long Term Maintenance
2022 - 2031
Unknown
North Saskatchewan
River Bridge
Repair
2017
$52,500
North Saskatchewan
River Bridge
Repair
Ongoing
Unknown
Old HWY #4 Bridge
Demolition
Unknown
$500,000
Total
$2,649,150
UTILITIES: WATER AND WASTE WATER
•Most of the subsurface infrastructure, water, waste water and
storm sewer pipes, is approaching the end of its design life of 50
years. The replacement value of the pipes to be replaced is
between $20-$30 million. The cost to replace these pipes and
when they need replacing is unknown.
•Any subsurface project should be coordinated with asphalt
projects.
•West Park needs a major upgrade of both its water and waste
Blue pipes mean clean water is going through
water infrastructure. Work is beginning in 2017. Estimated total
is $3 million over two years.
• The bulk water station needs upgrading. Cost to be determined and date of completion is unknown.
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The sewage lagoon is almost at capacity and its effluent is sometimes non-compliant. Upgrading the
sewage lagoon is approximately $2.6 million
Table #4: Water and Waste Water Projects 2017 - 2020
Facility
Project
Date
Cost
West Park
Upgrade/Reservoir
2017 – 2018
$3,000,000
Lagoon
SAGR
2018 – 2019
$2,600,000
Bulk Water Station
Upgrade/Relocate
Unknown
Unknown
Subsurface
Water, Waste Water, & Storm Sewer Pipes Ongoing
Unknown
Lagoon
Cell integrity
$300,000
2018 – 2020
Total
$8,600,000
FACILITIES
New windows at the Fred Light Museum
• The Town owns and operates a number of facilities including:
the Arena, Archery Range, Alex Dillabough Centre, Fred Light
Museum, the cemetery, Gardner Church, St Vital’s Church, Land
Titles Building, the Public Works Shop, the Fire Hall, Eiling Kramer
Campground, BCYC Building, the Ag Canada Building and Walking
Trails. Many of these facilities are in need of maintenance, repairs,
and replacement of key systems.
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Table #5: Facility Capital Considerations
Facility
Project
Date
Cost
Alex Dillabough
Upgrades/Modernization
Unknown
Unknown
Arena
Ice Plant: Room Prep
2017
$175,000
Arena
Ice Plant
2018
$800,000
Arena
Expansion & Upgrades
Unknown
$2,000,000
Cemetery
Expansion
2018 – 2020
$325,000
Eiling Kramer Campground
Upgrades: Waiting Area
2017
$10,500
Fire Hall
New Building
2022
$5,500,000
Fred Light Museum
Main Floor Windows
2017
$23,000
Fred Light Museum
Upgrades/Modernization
Unknown
Unknown
Gardner Church
Preservation
Unknown
Unknown
Land Titles Building
Preservation
Unknown
Unknown
Public Works Shop
Repair and Maintenance
Ongoing
Operations
Library
Upgrades and modernization
Unknown
Unknown
St. Vital’s Church
Preservation
Unknown
Unknown
Walking Trails
Paving for multi-generational use
Ongoing
$21,000/year
Total
$8,854,500
MOVING FORWARD
Walking path to be paved.
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• Council has policy decisions to make regarding how to
best proceed with the infrastructure deficit:
• Many municipalities are now using an Infrastructure
Levy to manage their infrastructure deficit rather than Local
Improvement Plan. The rationale is that designated monies
are available to address the right infrastructure problem at
the right time resulting in better management of all of the
assets;
• The infrastructure deficit is more than $30 million.
A portion of facility rental fees need to be set aside for capital improvements to ensure funding for need
upgrades and modernization.
• As an example: currently the cost recovery of the arena is 60% operations with no monies set aside
for capital such as replacing the ice plant, expansion of the arena, and upgrades/modernization.
The Town may need to borrow to invest in replacing aged and deficient infrastructure.
• Failed infrastructure is more expensive to repair and disruptive.
The Town is considering how best to leverage its reserve fund to finance infrastructure projects.
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Many municipalities use a special tax for a specific infrastructure project.
Transfers from the federal and provincial government are difficult to secure due to the limited dollars
available. For example the last Build Canada Funding intake had more than 400 applications totalling
over $1 billion for available funding of approximately $25 million.
The utility rates haven’t changed since 2012. The rates should change this year to finance the large
utility projects that have to be undertaken and to fund future replacement of water, waste water, and
storm sewer pipes. Without annual changes to utility rates the Town has been underfunding utility
reserves approximately $1.5 million the last five years.
Historic Battleford is how Battleford is sometimes referred due to its historical buildings. Many of them
are in poor condition and a decision needs to be made about how and when to invest in the buildings.
Currently it is more cost effective to tear down the Town Hall and build a new Town Hall than it is to
rehabilitate the building. Also to be considered are the Library, Gardner Church, Fred Light Museum, and
Land Titles Building.
OPERATIONS
The focus for the operations of the Town is on maintenance. Some of the maintenance projects planned in 2017
include:
• Draining the lagoon cells and inspecting for integrity;
• Initiating the hydrant maintenance program;
• Increased road repairs to extend the life of the roadways such as more crack filling and patching;
• Road repair at West Park;
• Repairing, or pulling up, the dyke road;
• Maintain alleys; and
• Earth moving at the cemetery.
Operations are also used for beautifying the town through:
• Increased street sweeping,
• Line painting,
• Tree pruning,
• Trail and campground amenities such as picnic tables,
fire pits and garbage cans, and
• More grass to cut at Battleford West.
Battleford West
There are also operational increases beyond our control:
• Insurance is now subject to the 6% PST;
Other operational increases are to either maintain a level of service or increase it.
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Perhaps you have met Jen, the new Utility Clerk,
Summer students have been hired in various departments to help with maintenance,
Our various shops such as Works and Parks need upgrades for items like lighting and flooring,
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• Other buildings such as the Library and Archery building need increased maintenance,
• Some of the Town’s historic buildings are to be assessed to determine their condition,
• Professional development of our staff.
As a result, operational expenses are budgeted to rise 3% in 2017 to approximately $5,566,000.
WHAT DOES THIS MEAN FOR OUR TAXPAYERS?
The budget is being presented with a request for a 3% increase to revenues. Due to changes imposed by the
province the Town is not currently able to say how it will affect specific property owners. This year is a revaluation
year for assessments and properties will have a different assessed value. Further, the percentage of value
determined by the province, is increasing from 70% to 80% for residential properties and from 40% to 45% for
non-arable (range) properties. The consequence of this decision will be an increase to the education component
of property taxes. What we can say for certain is that the Town will be collecting about $3 million in revenue which
is up 3% from 2016. Also:
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The budget is balanced with key investments to reduce the infrastructure deficit.
Continue to prepare Battleford for continued residential, commercial, and industrial growth.
THANK YOU
I would like to thank Council and residents for being allowed to serve
Battleford. Also, I want to thank you for your patience as we make the
transition to a new information system. It has tried Administration’s,
Council’s, and your patience due to the data transfer of the utility bills and
our tax rolls plus learning a new system. We think the worst is behind us
and things should be routine in the near future.
Special thanks go to the Leadership Team for their hard work,
conscientiousness, and desire to make Battleford a great place to live. The
leadership team includes: Finance Officer Steven Piermantier, Director of
Parks and Recreation Jordan Schechtel, Utilities Manager Aubrey
Whittleton, and Public Works Manager Eric Bilanski.
Finally, the leadership team is committed to being wise stewards of
Battleford.
Sincerely,
John Enns-Wind, MDiv., MBA
Chief Administrative Officer (CAO)
Town of Battleford
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