THE CORPORATION OF THE MUNICIPALITY OF GREY HIGHLANDS PROPOSED CAPITAL AND OPERATING BUDGET OVERVIEW BUILDING THE BUDGET 2

Size: px

Start display at page:

Download "THE CORPORATION OF THE MUNICIPALITY OF GREY HIGHLANDS PROPOSED CAPITAL AND OPERATING BUDGET OVERVIEW BUILDING THE BUDGET 2"

George Lambert
5 years ago
Views:

1 THE CORPORATION OF THE MUNICIPALITY OF GREY HIGHLANDS PROPOSED CAPITAL AND OPERATING BUDGET OVERVIEW BUILDING THE BUDGET 2 2

2 LEVELS OF REVIEW Departmental Submissions Public Engagement & Council Deliberation Finance Review 2019 Approved Budget Document Released CAO & Treasurer Review Senior Management Review 3 3 STRATEGICALLY PLANNING 5 PRIORITIES Communication and Community Engagement Community and Economic Development Sustainable and Principled Growth Fiscal and Asset Management Into the Future Operational and Customer Service Excellence 4 4

3 ASSET MANAGEMENT What more needs to be done? Additional contribution from the tax levy? Continue to leverage outside funds from other levels of government Advocate for support (AMO, MFOA) Partnerships with our neighbours Convert data from aged based to condition based Preventative maintenance vs putting out the fires (higher risk of failure) Asset Management Policy outlining future funding sources for replacement of assets Conduct a comprehensive financial plan and implement the Asset Management Policy 5 5 PLANS AND STUDIES Current Studies Development Charges Study Roads Management Study Water and Wastewater Servicing Master Plan Strategic Plan Economic Development Strategic Plan BMA Study Future Studies Fire Master Plan Community Improvement Plan Recreation Plan Trails Master Plan 6 6

4 INFORMATION AND DATA Historical costs actual costs from prior years Front line staff Communications Current conditions Assets (Maintenance or Replacement) Plans and Studies Community engagement Council direction Municipal comparison (BMA Study, FIR and Market Evaluations) Experience, vision, intuition and foresight 7 7 PROPOSED OPERATING BUDGET

BUDGET ANATOMY STEP BY STEP 2018 BASE BUDGET MANDATORY ANNUALIZED GROWTH SERVICE LEVEL CHANGE 2019 APPROVED BUDGET 9 9 HIGHLIGHTS IN THE BASE (2018) Item Total Contribution to Capital Reserve $93,000

5 BUDGET ANATOMY STEP BY STEP 2018 BASE BUDGET MANDATORY ANNUALIZED GROWTH SERVICE LEVEL CHANGE 2019 APPROVED BUDGET 9 9 HIGHLIGHTS IN THE BASE (2018) Item Total Contribution to Capital Reserve $93,000 Contribution to Capital Projects $811,995 Contracted Services OPP $1,742,681 Debt Servicing Costs $443,050 Winter Control $650,089 Insurance Premiums $248,000 Hydro Expense $680,000 Grey Highlands Public Library $288,526 Compensation and Benefits $4,509,

REVENUES Grants User Fees Property Tax Levy 11 11 NET BY DEPARTMENT = NET LEVY (GAP) EXECUTIVE SUMMARY Incremental Impacts Change over 2018 2019 2018 2018 Budget Budget Mandatory

5% 97,832 Corporate 8,828,679 9,170,305 (469,765) 98,600-29,499 (341,626) -3.7% 9,067,309 Administration 1,798,489 1,194,787 266,350 24,650-312,701 603,701 50.

8% 1,500,690 Arenas 760,363 692,476 3,110 15,500 11,500 37,777 67,887 9.8% 553,831 Parks & Facilities 96,349 76,167 7,732 7,700 1,000 3,750 20,182 26.

6% 3,103,257 Environmental 744,828 765,167 34,890 (51,039) - (4,190) (20,339) -2.7% 619,275 Museum 40,251 40,251 - - - - - 0.

6 REVENUES Grants User Fees Property Tax Levy NET BY DEPARTMENT = NET LEVY (GAP) EXECUTIVE SUMMARY Incremental Impacts Change over Budget Budget Mandatory Annualization Growth SL Chg Dollars Percentage 10 Month Actual Council 259, , ,000-20,000 21, % 126,050 Committees 207, , (22,042) (21,742) -9.5% 97,832 Corporate 8,828,679 9,170,305 (469,765) 98,600-29,499 (341,626) -3.7% 9,067,309 Administration 1,798,489 1,194, ,350 24, , , % 984,627 Planning 192, , ,998 - (7,200) (35,925) 81, % 160,055 Cemeteries 26,167 26, % (22,972) Policing 1,792,309 1,742,681 49, , % 1,500,690 Arenas 760, ,476 3,110 15,500 11,500 37,777 67, % 553,831 Parks & Facilities 96,349 76,167 7,732 7,700 1,000 3,750 20, % 75,354 Fire 576, ,529 1, ,000 45,490 49, % 457,300 Transportation 4,254,301 4,028,725 (85,293) 115, , , % 3,103,257 Environmental 744, ,167 34,890 (51,039) - (4,190) (20,339) -2.7% 619,275 Museum 40,251 40, % 24,984 Library 393, , ,760 52,150 30, , % 219,036 Building 0 0 (87,689) (123,023) 410,775 (200,063) - 255,200 Public Utilities (0) 0 31,813 (31,814) (590,033) Capital 858, ,995 46,869 46, % Tax Levy (9,971,308) (9,971,308) (9,970,247) LEVY REQUIREMENT 10,858,653 9,971,308 (66,477) 234,212 59, , , % 6,996,380 Budget Gap 887,

7 BUDGET DRIVERS - MANDATORY Proposed Budget Drivers Incremental Amount Levy Change Impact Drivers in Mandatory: 24, % 1 Pay Equity Adjustments 37, % 2 Insurance Premium Increase 24, % 3 Compensation Movement in the Pay Band 18, % 4 Conservation Authority Increases 7, % 5 Contracted Services 81, % 6 New Hires in 2018 not previously budgeted 391, % 7 Growth in 2018 & Estimated Growth for 2019 & Capital Asset Reserve (535,086) -5.37% BUDGET DRIVERS - ANNUALIZATION Proposed Budget Drivers Incremental Amount Levy Change Impact Drivers in Annualization: 227, % 8 Council - Transfer to reserve, 1, % computer hardware 9 Committee of Adjustment membership dues increase % 10 Cost of Living Adjustment 60, % 11 Market Salary Review 149, % 12 Insurance Reserve Draw (2,200) -0.02% 13 Meeting Expense Increase 3, % 14 Increase in OMFP provincial funding (5,900) -0.06% 15 Increase in Interest Revenues (41,500) -0.42% 16 Additional Tax Adjustments (63,800) -0.64% 17 CAO, HR & Clerks Budget 12, % 18 Increases in IT Budget 12, % 19 Increases in Arenas Budget 15, % 20 Increase in Parks & Facilities 7, % 21 Increase in Fire Budget % 22 Increase in Transportation annual fleet costs 115, % 23 Increase in recycling-waste diversion funding (68,639) -0.69% 24 Landfill fleet annual fleet costs 17, % 25 Overall Library budget annual increase 21, % 26 Increase in Planning Fees as a result of growth (7,200) -0.07% 14 14

8 BUDGET DRIVERS SERVICE LEVEL CHANGE Proposed Budget Drivers Incremental Amount Levy Change Impact Service Level Change: 635, % 27 To compensate 20, % for 1/3 tax exempt elimination 28 Close out Landfill Task Force budget (2,000) -0.02% 29 Tourism Advisory Committee 23, % 30 Reduction in contribution to Community Development Reserve (47,842) -0.48% 31 Joint Compliance Audit Committee 4, % 32 Corporate budget overall deduction (500) -0.01% 33 Addition to staffing compliment - Clerks & Legislative Services 34, % 34 Addition to staffing compliment - IT Departement 32, % 35 Increase in Communications budget 12, % 36 Increase in Economic Development budget 233, % 37 Reduction in Planning budget (35,925) -0.36% 38 Addition to staffing compliment - Arenas 37, % 39 Increased maintainance in Parks 3, % 40 Increase in Program Expenses for Fire Department % 41 Addition to staffing compliment - Fire 44, % 42 Increase in Transportation Administration budget 9, % 43 Addition to staffing compliment - Transportation 75, % 44 Decrease in rental revenue 8, % 45 Increase in Contracted Services - Transportation 116, % 46 Reduction in Fleet Costs - Transportation (15,850) -0.16% 47 Increase in Education, Training and Clothing Allowance - Environmental 6, % 48 Net reduction in Markdale Landfill budget (10,990) -0.11% 49 Addition to staffing compliment - Library 82, % $ 887, % OPERATING SUMMARY ADDITIONAL LEVY IMPACT $ Impact Levy Impact Base Budget Mandatory $24, % Annualization $227, % Service Level Changes $635, % Total $887, % 16 16

Total of all Expenses less all Revenues leaves us with the required Property Tax Levy Based on the current

9% ($887,346) in order to support the Proposed Budget Expenses Revenue Net Levy THE BOTTOM LINE 17 17 HOW

Grey Highlands currently ranks 3 rd lowest taxes out of 145 municipalities (BMA Study) Increase of 8.

9 Total of all Expenses less all Revenues leaves us with the required Property Tax Levy Based on the current Tax Rate, the Net Levy raised is $9,971,308 The Net Levy would need to increase by 8.9% ($887,346) in order to support the Proposed Budget Expenses Revenue Net Levy THE BOTTOM LINE HOW DO WE RANK? Grey Highlands currently ranks 3 rd lowest taxes out of 145 municipalities (BMA Study) Increase of 8.9% would rank Grey Highlands 4 th lowest (assuming no one else increased) Industrial, Commercial and Residential all ranked low in the study Proposed local taxes per $100,000 of Assessment $ Difference over $

10 ON-GOING CHALLENGES Increasing or expanding level of service with minimum impact on tax levy Closing gaps: Infrastructure Asset Management Plan Technology Retaining Qualified Staff Future Growth Impacts Office/administration space requirements Impact of recommendations from various studies PROPOSED CAPITAL BUDGET

CAPITAL SUMMARY 2019 Draft Capital Budget Summary Department Total Cost Tax Levy Reserves Grants/Cost Recovery Debenture Corporate Services 138,500 90,000 48,500 - - Facilities 281,000 106,000

11 CAPITAL SUMMARY 2019 Draft Capital Budget Summary Department Total Cost Tax Levy Reserves Grants/Cost Recovery Debenture Corporate Services 138,500 90,000 48, Facilities 281, , , Fire 579,064 2,064 47, ,000 Transportation 2,173, ,000 56, , ,828 Environmental 132,000 85,800 33,000 13,200 - Public Utilities 628, , Total Capital 3,932, , , ,200 1,371, PROPOSED CAPITAL BUDGET FUNDING SOURCES % $858,864 Levy 22% Rate Supported $628,200 16% $312,300 Reserves 8% $48,000 DC's 1% $13,200 Partnership Recovery 0% $700,000 Grants 18% $1,371,828 Debenture 35% 22 22

12 PROPOSED WATER & WASTEWATER BUDGET SELF SUSTAINABLE Water Rates Budget Proposed Increase on the rate 2.6% Highlights for change 2019 Compensation Impacts Inflation Transfer to Reserve Wastewater Rates Budget Proposed Increase on the rate 2.8% Highlights for change in 2019 Compensation Impacts Inflation Transfer to Reserve Increases in the rates are based on the Water and Wastewater Servicing Master Plan 24 24

13 WHAT HAPPENS NEXT? Council to receive the budget document and convene in January under the Committee of the Whole Committee of the Whole deliberations take place. Agenda will have detailed recommendations from staff for the committees consideration The committee can re-visit any area or section at any time Once satisfied, the committee passes a motion to forward the budget to Council for approval MOVING FORWARD Budget Deliberations Wednesday, January 9 th at 10:00am Wednesday, January 23 rd 10:00am Additional Meeting (if needed) TBD Approval February 6th budgetquestions@greyhighlands.ca 26 26

14 COMMUNITY ENGAGEMENT HAVE YOUR SAY WE VALUE YOUR OPINION Budget information available on municipal website Questions and comments contact

Approved Changes to Proposed Budget

Budget Drivers Approved Changes to Proposed Budget Incremental Levy Change Impact Drivers in Mandatory: 24,632 0.25% 1 Pay Equity Adjustments 37,000 0.37% 2 Insurance Premium Increase 24,371 0.24% 3 Compensation