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Financial Planning Process
2016-2020 FINANCIAL PLAN
Ensure that current revenues support
current programs.
The Financial Plan should provide that
current programs are funded from current
revenues and that reserves are used only
as a temporary balancing measure. Any
reserves that are used to balance the
Operating Financial Plan should be
subsequently replenished.
Reward cost-effective innovations.
The Financial Plan should reward
cost-saving initiatives through a "save and
invest" philosophy rather than a “spend it
or lose it” approach. This philosophy
allows City departments to reinvest their
savings from innovation.
Maintain appropriate level of Reserves as
determined by Council.
The Financial Plan should allocate an
appropriate level of funds to reserves in
order to maintain services throughout
economic cycles. Specifically, the
Financial Plan should:
Provide adequate funding for
unforeseen costs and revenue
reductions;
Provide bridge financing for Capital
Projects; and
Allow the City to take advantage of
market opportunities.
Council will determine the appropriate
level of these reserves.
PRINCIPLES SPECIFIC TO OPERATING FINANCIAL PLANNING
INFLATIONARY INCREASES
2016 inflation has been projected at 1.0%. However, City departments have been
cautioned to allow for inflationary increases only as necessary where uncontrollable cost
increases may be anticipated or where contracts warrant inflationary increases.
Departments have also been provided with the following inflationary increase estimates,
as calculated by City vendors.
2016
2017
2018
2019 2020
Water
2.8%
6.7%
6.0%
6.0%
4.9%
Sewer
4.3%
6.6%
7.2%
7.7%
7.2%
Drainage
6.0%
2.3%
2.3%
2.2%
2.2%
Solid Waste
0.0%
1.8%
1.7%
1.7%
1.7%
Equipment
0.5%
0.5%
0.5%
0.5%
0.5%
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