Town of Whitby Recommended Budget Target. January 18 th, 2012

Transcription

1 Town of Whitby 2012 Recommended Budget Target January 18 th, 2012

2 125,900 People 147 sq. km. $2 Billion Infrastructure 951 acres of parks 1,089 acres of open space 1,096 km of roads 41,370 Households 10% of Population > 65 yrs. GTA avg 12% High Average Household Income 27% of Population < 19 yrs. GTA avg 25% 7.2% Unemployment Rate Oshawa CMA Oct 2011 Ontario avg 8.1%

3 COMMUNITY OF CHOICE 3

4 Whitby Population 200, , ,000 50,

5 Community of Choice Over the last 20 years our population has doubled. A further 55 percent increase in our population is expected over the next 20 years. 5

6 Remaining a Community of Choice Address Community Needs Provide Competitive Taxes Live Within Our Means 6

7 Addressing Community Needs Special Events Recreation Programs & Facilities Seniors Programs Sports Fields Marina Animal Services Waste Collection Roads Fire & Emergency Services Snow Clearing Street Lighting Traffic Signals Storm Water Management Economic Development Sustainability Emergency Planning Forestry Records Management Implement By-laws Traffic Control By-law Enforcement Cycling & Leisure Trails Parks Libraries Development Approvals Long Range Land Use Planning Downtown Support Financial Planning Heritage Preservation Accessibility Future Master Plans (Port Whitby Secondary Plan, Sports Facility Strategy, Cullen Park Master Plan etc.) 7

8 Providing Competitive Taxes 8

9 Providing Competitive Taxes 2011 Residential Tax Bill Education 17% Town 31% Region 52%

10 Providing Competitive Taxes 2011 Comparison of Municipalities For Property Assessed at $308, $5,073 $4,182 $4,211 $4,265 $4,314 Pickering Ajax Whitby Oshawa Clarington 10

11 Providing Competitive Taxes 2011 Executive Home Comparison $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Toronto (East) Milton Caledon Clarington Mississauga Halton Hills Newmarket Richmond Hill Aurora Brampton Vaughan Oakville Whitby East Gwillimbury Burlington Markham Ajax GTA Average Pickering Oshawa Georgina Whitchurch-Stouffville Toronto (North) King Toronto (West) Toronto (South) Source: BMA 2011 Municipal Study - 2 Storey 4 brdrm 3 bath main floor family room unfinished basement attached 2 car garage approx

12 Providing Competitive Taxes With respect to residential property taxes, Whitby is competitive within Durham Region and the GTA 12

13 Providing Competitive Taxes 13

14 Providing Competitive Taxes 14

15 Providing Competitive Taxes 15

16 Providing Competitive Taxes With respect to non-residential taxes, Whitby is competitive. 16

17 Living Within Our Means While the Town of Whitby has a debt capacity based on Municipal Affairs and Housing regulations of $229M our actual debt at the end of 2011 was $9.6M, down from $10.5M in $3.1M of this debt is related to the new soccer dome and marina improvements both of which are being repaid entirely through user fees. The 2012 budget includes $275K of additional debt for Marina pier replacement that will be repaid over time entirely from Marina user fees. 17

18 Living Within Our Means The remaining $6.5M worth of debt is related to the Downtown Whitby Library. The 2011 budget committed funding for the repayment of this entire debt over time through development charges and reserve funds specifically set aside for this purpose. None of our current debt is funded by tax supported revenues. 18

19 Living Within Our Means In 2011 our total reserve and reserve fund balances increased from $85M to just under $97M. 19

20 Reserve / Reserve Fund Balances 2011 Year End Estimate Maintenance Reserves Growth Reserves $3.2 Million $71.9 Million (Un-Committed) ($55.7M Dev Charges & $16.2M Town Committed Contribution ) Program Reserves Stabilization Reserves $14.5 Million $7.3 Million ($9.9M is Un-committed / $4.6M Committed) (Committed) Note: Some of the Uncommitted Reserves have a restricted usage

21 Living Within Our Means Our good financial position can only be maintained if we continue to finance ongoing expenses with ongoing revenues and use uncommitted reserves for special one time projects. As a result of our very low debt, healthy reserve and reserve fund balances, and long range financial plan, the Town is in good financial shape and has considerable capacity to consider borrowing for significant projects if required in the future. 21

22 Our Challenges Our Economy Legislated Requirements Inflation Asset Management Growth

23 Our Economy In 2011 the Oshawa CMA saw slow GDP growth. Unemployment rates remain high and personal debt levels remain high. Interest rates are low now but are expected to increase in the future. Recovery from previous economic challenges slowly continues, however, recent global events have created a climate of economic uncertainty. Preliminary indications from Don Drummond s report for the Province of Ontario suggests a significant reduction in provincial spending is required to address economic challenges and there is concern that this may impact municipalities 23

24 Our Challenges Legislated Requirements New legislated requirements (environmental, accessibility, taxation, etc.) continue to be introduced and modified without providing additional revenues to address these needs.

25 Our Challenges Inflation The latest information available from Statistics Canada indicates that the Consumer Price Index (CPI) increased 2.9 percent from November 2010 to November The CPI is based on a basket of goods and services utilized by a typical household. 25

26 Our Challenges Inflation Municipalities typically have a Municipal Price Index (MPI) that is higher than the CPI due to their heavy reliance on labour and energy costs (hydro, heating, fuel). 26

27 Our Challenges Inflation Our 2012 Core Operating Budget adjusted for inflation (ie. No annualizations, no additional staff, no new initiatives) results in a 3.4 percent tax impact. 27

28 Our Challenges Asset Management The delivery of Core Services to the community requires considerable infrastructure and equipment The Town utilizes assets with an estimated value of $2 billion to deliver its Core Services 28

29 Our Challenges Asset Management Variety of Assets ($2 Billion in value) 1,096 km of Roads 25 Bridges 497 km of Sidewalks 11,600 Street Lights 30 Traffic Lights 9 Public Parking Lots 470 km of Storm Sewers 45 Storm Water Management Ponds 80 km of Fencing 951 acres of Parkland 1,089 acres of Open Space 69 km of Leisure Trails 96 Parks, 2 Town Parks, 19 District Parks 23 Major Facilities Fleet and Equipment incl. 16 Fire Trucks/Vehicles 23 Garbage Trucks 13 Vans 79 Trucks 10 Plows 12 Cars 19 Pieces Heavy Equipment 2 Graders 2 Boats 39 Trailers 8 Zambonis 7 Cranes Other Miscellaneous Equipment 29

30 Our Challenges Asset Management The timely maintenance and replacement of infrastructure is required to minimize cost. Most infrastructure deteriorates on a pay me now or pay me much more later basis. The timely maintenance and replacement of equipment is required to avoid service interruptions and additional operating costs. 30

31 Our Challenges Growth % 86,475 people 28,080 households 125,900 people 41,370 households 37% 801 kilometers of roads 23,400 garbage collections per week 83% 1,096 kilometers of roads 42,713 garbage collections per week

32 Our Challenges Growth % 583 acres of parks 87,315 sq. feet of Gardens maintained 434 Full Time Equivalent Staff 197% 36% 983 acres of parks 259,436 sq. feet of Gardens maintained 591 Full Time Equivalent Staff

33 Our Challenges Growth Population growth along with its need for additional supporting infrastructure creates an increased demand for resources 33

34 Our Challenges Growth Despite the savings and efficiencies gained through improved processes, partnerships with others, the use of volunteers and technology, some additional staff will be required to continue delivery of our core services at existing levels. 34

35 Budget Strategy Having regard for the state of our economy and the impact it has on the ability of our taxpayers to afford improvements, the focus of the proposed 2012 budget is on maintaining core services, taking care of our assets and providing for growth. New services or service level enhancements have been limited to those matters addressed by Council. 35

36 2012 Recommended Budget ($ s in millions) Capital Budget, $22.8, 19% Operating Budget, $98.6, 81%

37 2012 Recommended Budget Sources of Revenue ($ s in millions) Other Sources, $27.4, 28% Provincial & Federal Support, $3.6, 4% Property Taxes, $67.5, 68%

38 What You Get For Your 2012 Taxes Whitby Portion $1,345 Other Community Grants Special Events Station Gallery Animal Services Crossing Guards Council Economic Development & Admin $3 $6 $8 $13 $15 $20 $22 Administration, Human Resources & Legal Services Arenas & Community Centres Garbage, Yard Waste, & Special Collection Recreational Programs Winter Control $38 $43 $53 $53 $57 Park Design & Maintenance Corporate Services Planning, Engineering, Building & By-law Enforcement Library Grant $73 $86 $87 $98 Transportation Maintenance $153 Corporate Revenue & Expenses $194 Fire $324 $- $50 $100 $150 $200 $250 $300 $350

39 2012 Recommended Operating Budget The recommended 2012 Operating Budget required to deliver existing core services at existing levels includes inflationary cost increases net of revenue adjustments for the Town, Whitby Public Library, Station Gallery and grants to outside boards and agencies totaling $2,116,959 with a tax impact of 3.4%. Annualization costs for new positions added in 2011 totaling $384,444 with a tax impact of 0.6% have also been included.

40 2012 Recommended Operating Budget An annual ongoing contribution to the Town s Growth Reserve Fund required to match our share of development charges collected totaling $331,732 with a tax impact of 0.5% has also been included new full time equivalent positions with a 2012 cost of $506,095 and a tax impact of 0.8% has been included to meet growing service and asset management related needs.

41 PROVIDING CORE SERVICES Town position related requests Ongoing Annual FTE Total Total Impact Impact Impact Parks Long Range Planning - Planner Position 93, ,190 44,070 Mechanical Serviceperson 85, ,305 48,555 Supervisor of Facility Capital Projects 108, ,300 53,300 Risk Management & Insurance Analyst 103, ,895 51,615 Investment Officer 1.00 Legislative Coordinator 92, ,750 35,000 Zoning Officer/Planning Assistant - Planning Administration 72, ,275 35,425 2 New P/T By-law Officer Positions 70, ,680 37,750 Administrative Assistant - Public Works 81, ,950 40,950 Manager of Transportation and Parking Services 144, ,250 71,500 Stormwater Working Foreman 88, ,100 43,600 Fall Temporary Labourers - Grass Cutting 25, ,400 Total Recommended Positions 967, , ,765 Tax Impact 1.52% 0.80% 0.72%

42 2012 Recommended Operating Budget Requests for funding to support the provision of new service levels by Whitby Public Library and the Whitby Etho-Cultural and Diversity Advisory Committee have not been included in the 2012 budget.

43 Community Grant Requests Ongoing Included in Annual Impact 2012 Impact Recommended Budget Library HR Time & Attendance Information System $10,000 $10,000 Library - Summer Students 10,800 10,800 Sunday Service - Brooklin Public Library - Sept to June 18,000 6,500 Sunday Service - Brooklin Public Library - Oct to Apr 13,000 5,000 Whitby Etho-Cultural and Diversity Advisory Committee 9,170 9,170

44 2012 Recommended Operating Budget The recommended 2012 Operating Budget required to deliver existing core services at the existing levels of service includes additional funding of $3,389,231 with a tax rate impact of 5.32%

45 2012 Operating Budget 2011 Inflation & One time Recommended Total Department Budget Adjustments Annualization Items New Positions Operating Budget Executive & Legislative 954,426 29, ,487 CAO's Office 1,720, ,455 18, ,655 Corporate Services 4,349, ,556 84,234-11, , ,835 Grants 5,302, , ,535 Corporate Revenues & Expenses 10,674,383-1,293, , ,770 Fire & Emergency Services 15,265, ,064 38,575 1, ,029,839 Planning 2,152, ,428 93,790-1,800 37, ,694 Special Events 277,442 21, , ,614 Community & Marketing Services 5,232, , , , ,509 Public Works 18,276, , ,645-28, ,380 1,232,833 Budgetary Increase 0 2,166, , , ,096 3,389,231 Tax Impact 3.40% 0.60% 0.52% 0.79% 5.32%

46 Taking Care of Our Assets The Town has established an asset management program that is adjusted annually and funded on the basis of how much is needed each year forever to best manage or assets. Historical information is used to develop an annual inflation index for each asset maintenance envelope. This year the inflation was adjusted based on a three year review of previous years increases. 46

47 Taking Care of Our Assets In addition to inflation, the maintenance envelope needs to be adjusted each year based on the most recent audited year end growth and assumption numbers. Comprehensive business cases are required to adjust the envelope. Currently, a facilities needs study and storm water management study are underway which may require increases in future years. 47

48 2012 Capital Maintenance Envelope 2011 Maintenance Envelope (Adj) 2010 New Assumed Assets 2012 Maintenance Envelope Inflation Rate Inflation Amount Accessibility Reserve Contributions 208, % ,000 Bridges 399, % 11, ,881 Downtown Improvement Reserve Contribution 257, % ,500 Equipment 1,033, % - - 1,033,842 Facilities 1,364, % - - 1,364,523 Fences 267, % 8,037 8, ,607 Vehicle Fleet 2,230, % - - 2,230,999 MIS 894, % ,725 Parks 522, % ,127 Roads 6,433, % 191, ,877 6,754,776 Sidewalks/Multi-Use Pathways 718, % 21,544 28, ,922 Signals & Streetlights 319, % - 22, ,588 Signs & Guiderails Storm Sewer 501, % 15,048 58, ,427 Studies & Misc 376, % 7, ,481 15,528, % 255, ,738 16,032,398 $ 503, %Tax Impact

49 Providing for Growth The proposed 2012 Capital Budget includes $5.5M worth of growth related infrastructure improvements. The growth related needs of the Town of Whitby were last identified in the 2008 Development Charge Study. Based on 10 years worth of growth related needs identified in this study and based on the requirements of the Development Charges Act, the cost of these works is funded partially through the collection of Development Charges and partially from tax revenue. 49

50 Providing for Growth Each year the Town needs to set aside its share of funds for growth related projects proportionate to the actual development charges collected. The proposed 2012 budget includes ongoing funding of $333,602 for this purpose. 50

51 Providing for Growth A new Development Charges Study is underway and will be completed by mid 2012 which will determine amounts required in the future 51

52 Other 2012 Recommended Capital Projects Growth Related Projects - not included in the 2008 DC Study Additional Perimeter Fence Adjacent to Station 5/Ops Centre $ 15,000 Multi-Use Paths/Cycling Facilities - Area 1, 3, 20 & 21 $ 292,000 Mechanical Services Utility Van (linked to new position) $ 40,000 $ 347,000 One-Time Projects Security Upgrades for Town Hall $ 15,000 Fire - Forcible Entry Training Tool $ 5,000 Fire - Standpipe/Sprinkler High-rise Training System $ 10,000 $ 30,000 Total $ 377,000 Note: To be financed from One-Time Reserves

53 Other 2012 Recommended Capital Projects Durham College Commitment Million dollar commitment over 4 years beginning in 2011 funded from one time reserves As per Council resolution, staff will seek Council s direction as part of annual budget deliberations regarding release of funds The final resolution approving the 2012 budget will include direction to release $500,000 of funding from reserves for our 2011 and 2012 contribution 53

54 Offsetting Revenues Remaining uncommitted annual $375,000 hydro revenues Increased Supplementary Taxes 150,000 Increased Investment Income 200, Assessment Growth 1,177,959 Operating Budget Reduction 1,902, % 54

55 Summary $ Tax Impact Operating 2,883, % Recommended positions 506, % 3,389, % Capital 503, % Core Increase 3,892, % Offsetting Revenues <1,902,959> 2.99% Recommended 1,989, %

56 Projected 2012 Taxes Average Home Assessed at $308, Increase 2012 Town *(31%) $1,304 $41 $1, % Region (52%) 2,248 $53 2, % ** School (17%) 713 -$ %*** Total $4,265 $86 $4,351 Total Overall Tax Increase 2% * portion of total tax bill ** based on Region guideline *** based on preliminary information 56

57 Other Municipalities Projected Tax Increases & Targets/Anticipated Rates Tax Increase Municipality Projected/Target Increase Approval Date Ajax 2.75% Feb 13 (note %) Oshawa 4.31% Clarington 3.67% Jan 30 Oakville 8.02/4.3% max Mar 5 Burlington 3.5% Feb 21-capital, Mar 19-current Mississauga 7.4% Feb 8 Milton 5% Dec 12 Brampton 4.9% Dec 14 Markham 1.9% Feb 57

58 Next Meetings Thursday, January 26, 2012 at 7:00 pm Public Education & Input Session Thursday, February 16, 2012 at 7:00 pm Budget Deliberations and Adoption

59 The End 59