Date: Mon Mar 31 20:24:42 2003 Subject: City Council Finalizes 2003 City Budget From: Cathryn Tucker -----BEGIN MD5 ----------------------------------- ----------------------------------------------------------------- CITYBEAT - CITY OF CALGARY PRESS RELEASE ----------------------------------------------------------------- Calgary - Council approved The City of Calgary's 2003 total operating budget of $1.5 billion today, including expenditures for tax-supported operations of $1.3 billion. "The finalized budget deals with the challenge of funding the needs of Canada's fastest-growing major city within the limits available from City revenue sources. It balances the demands placed on a dynamic city with taxpayers' willingness to fund service levels needed to preserve Calgarians' quality of life," said The City of Calgary's Chief Executive Officer Dale Stanway. The City's total 2003 - 2007 capital budget is $2.5 billion, including 2003 capital construction of $980 million for new infrastructure, maintenance and upgrading of existing infrastructure and purchases of property for municipal use. That amount includes the $500,000 for Vertigo Theatre approved tonight by Council. The budget calls for a property tax rate increase of 3.9 per cent for Calgarians. This 3.9 per cent increase is equal to approximately $30 annually, or $2.45 monthly, at Calgary's median assessed value for houses and condominiums of $189,500. Business taxes will not rise for the tenth consecutive year. The impact on an individual's tax bill will vary depending on a property's change in assessed value in 2003. Council will set the tax rate at their May 5 meeting through the property tax bylaw, once the education requisition has been received from the provincial government. Expenditures on Police, Fire, Emergency Medical Services, transportation and roads total $589.8 million, or almost 45 per cent of the $1.3 billion budget. The City's revenue situation has improved since preliminary budget estimates in November, with property tax revenue up by $2.7 million, business tax revenue up by $1.8 million and municipal consent and access fees up by $2 million. "The preliminary budget approved last November required a 4.8 per cent property tax rate increase. Due to The City's improved revenue projections, we have been able to reduce that requirement to 3.9 per cent," said Chris Good, Chief Financial Officer for The City. - 30 - Detailed budget information is available on The City's Web: www.calgary.ab.ca Background Information The City of Calgary Budget Finalization 2003 General: - The March 31 finalization of The City's 2003 Operating and Capital budgets includes an overall property tax rate increase of 3.9 per cent. - Since November, a number of programs have had funds added back into their budgets: roads ($2.1 million) outdoor swimming pools ($ 0.315 million), parks ($ 0.4 million) and Calgary Economic Development agency ($ 0.750 million) - The municipal portion of the total property tax bill on the typical home valued at the median assessment for houses and condominiums of $189,500 will increase by 3.9 per cent or approximately $30 annually. (Individual property tax bills may increase by more or less than that amount, depending on the change in the 2003 assessed value of the home.) - The annual municipal property tax bill on the median assessment of $189,500 for houses and condominiums is $783. - Council has already approved no tax rate increase on business taxes for the tenth consecutive year. Capital Budget Highlights: 2003-2007 capital budget - $2.5 billion. Tax-supported 2003-2007 capital budget - $1.48 billion Capital budget utilities - $1.03 billion Examples of projects included in the 2003 - 2007 capital budget: Maintenance and replacement Light rail vehicles and buses refurbishment ($61.6 million) Bridge repairs and rehab ($17.9 million ) Police vehicle replacement ($24.1 million) Firefighting equipment and fire halls ($21.1 million) Infrastructure Upgrade Storm relief projects ($30.9 million) Computer systems and infrastructure ($75.9 million) Parks and natural areas ($20.1 million) Inner city transportation projects ($9.7 million) Noise attenuation retrofit ($7.5 million) Growth related N.E. LRT to Prairie Winds ($86.4 million) South LRT to 162 Ave. ($36.7 million) 16th Ave. - 6 St. E to 10 St W widening ($30.9 million) Regional recreation centres ($25.7 million) North West and North Central library branches ($9.2 million) New Services Energy Performance Contracting ($50.0 million) 2003 Financial Fast Facts - Total 2003 operating budget - $1.5 billion - Total 2003 tax-supported operating budget - $1.32 billion - Total five-year capital budget - $2.51 billion - Total five-year tax-supported capital budget - $1.48 billion - 2003 portion of five-year capital budget expenditures - $980 million - Number of City employees: 11,306 full time equivalents - Salary, wages and benefits account for about 55 per cent of City expenditures - Calgary population: 907,969 (as of April 2002, latest available census). - 2003 property taxes to be collected for City services - $542.3 million, or 41 per cent of The City's tax-supported budget. (residential - $270.5 million, non-residential $271.8 million) - The balance in the Mill Rate Stabilization Reserve* is projected to be $91.5 million at the end of 2003. - Calgary gets less than three per cent of its total operating budget from other orders of government. - City utility and self-supported operations include Wastewater, Waterworks, Calgary Parking Authority and the Calgary Housing Company. ENMAX is a wholly owned subsidiary. - Calgary has not yet received the provincial education requisition for 2003. Total property tax bills will be mailed in late May after receipt of the requisition. - Payment due date will be June 30. *MRSR - A reserve established by Council to help reduce the degree of tax rate fluctuation. The amount of operating surplus not specifically approved for other purposes and investment income of reserve funds are transferred into the MRSR, and can be withdrawn in planned amounts to offset future tax rate increases. -30- Public Contact Information: Chris Good Chief Financial Officer The City of Calgary Tel: 403.268.6475 Public Email Contact: chris.good@gov.calgary.ab.ca -----END MD5 f202d118d8fb42b2786e17184928bd26-----