COUNTY OF WELLINGTON Budget and Five Year Plan. Presentation to Wellington County Council January 11, 2016

Transcription

1 COUNTY OF WELLINGTON 2016 Budget and Five Year Plan Presentation to Wellington County Council January 11, 2016

2 Agenda 2016 Budget and Five-Year Plan Overview and 2016 Budget Process Changes to the five-year plan since November Overview of Budget Financing Asset Management, Reserves & Debt Capital Budget Highlights Operating Budget Highlights Wrap - up 2016 Budget and Five Year Plan 2

3 2016 Budget Process and Timeline: Special meeting of County Council to review Updated 2016 Budget and 5 year plan (January 11th, 2016) in advance of January Committee meetings Standing Committees review 2016 Budget and 5 year plan and make recommendations to AF&HR The Administration, Finance and Human Resources Committee reviews all recommendations and then recommends any budget amendments to County Council Council approves 2016 Operating and Capital Budgets and approves forecast in principle 2016 Budget and Five Year Plan 3

4 year plan Operating Budget Preliminary 5 year projected tax impacts (2016 County tax impact was projected to be 3.3% in November) Gross Expenditure ($ millions) $191.0 $199.3 $207.4 $213.9 $221.0 Tax Levy ($ millions) $88.1 $94.5 $100.1 $104.5 $109.4 County tax impact (% year/year change) 2.8% 6.2% 4.9 % 3.3% 3.8% 1% 2016 budget impact = $859, Budget and Five Year Plan 4

5 Changes to 2016 Budget since November Assessment growth finalized at 1.61% - resulting in budget impact of.61% reduction OMPF update resulted in additional 2016 funding reduction ($155,000) Updated Programme Support Recovery reduction ($200,000) Economic Development position to full time ($20,000 increase), CIP Consultant ($50,000 increase), Swift reserve transfer ($140,000 increase) Remove proposed new HR position ($36,000 decrease) Capital changes include the addition of accessible washrooms at the Museum and removal of the main gate project, $75,000 total increase as well as an increase of $30,000 for the Wellington Signage Strategy Add $200,000 reserve transfer AMP Roads Updated Land Ambulance figures from the City of Guelph approved budget savings $113, Budget and Five Year Plan 5

6 Library 4% Health / Ambulance 3% Planning/Gree n Legacy/ Emergency Mgt 2% Admin 7% Solid Waste 5% Terrace 11% 2016 Preliminary Gross Expenditure by Programme Police 9% Museum 1% Other 5% Roads 13% Social Services 40% $77.5 million Social Services $25.6 million Roads $20.6 million Wellington Terrace $16.7 million Police $50.6 million Other $191.0 million TOTAL 2016 Budget and Five Year Plan 6

7 2016 Preliminary Net Levy Impact by Programme Planning /Green Legacy/ Emergency Mgt 4% Museum 2% Other 2% Social Services 9% $22.5 million Roads $16.3 million Police Library 8% Health / Ambulance 7% Admin 9% Roads 25% $7.8 million Wellington Terrace $7.6 million Social Services $54.2 million Other Solid Waste 6% $88.1 million TOTAL Terrace 9% Police 19% 2016 Budget and Five Year Plan 7

8 2016 Preliminary Budget by Expenditure Type Internal Charges 3% Debt Charges 2% Minor Capital Expenses 1% Transfer Payments 13% Insurance and Financial 1% Transfer to Capital Net Reserve 6% Transfers 5% Salaries, Wages and Benefits 27% Supplies, Materials and Equipment 5% $52.1 million Salaries and Wages $47.5 million Social Assistance $23.8 million Transfer Payments $22.8 million Purchased Services $44.8 million Other $191.0 million TOTAL Purchased Services 12% Social Assistance 25% 2016 Budget and Five Year Plan 8

9 Capital/Operating relationship Capital Expenditure -Land -Infrastructure -Facilities and Vehicles -Equipment and Furnishings Operating Expenditures -Asset operations -Asset maintenance -Contributions to capital -Debt servicing costs -Reserve Provisions Capital spending impacts operating spending: Asset improvements have the potential to reduce or increase operating costs For example expansion of library could result in increased hours of operation staffing, utilities costs, or additional debt servicing costs. This same expansion could potentially reduce maintenance and repair costs 2016 Budget and Five Year Plan 9

10 We not only need to plan for new capital assets, we need to consider future replacement and rehabilitation of existing assets. The County owns and operates: 62 operational or administration facilities 1189 social housing units 65 Affordable housing units km of roadways, an additional 18.5 km of turning and passing lanes, 104 bridges, 2 pedestrian bridges, 86 culverts, 843 smaller cross culverts, 38 sets of traffic signals, 23 four way and 26 single flashing beacons, 152 sentinel lights at rural intersections and 5 roundabouts 230 vehicles and equipment Total Assets = 2014 Net book value of $362 million 2016 Budget and Five Year Plan 10

11 Asset Management Planning These capital assets allow the County to provide high quality services to the community on a sustainable basis. In order to do this, the County is committed to comprehensive asset management planning which must include a long term financing strategy. The asset management plan for Roads and Bridges will be further refined in 2016 but has been updated from 2013 in order to provide Council with a level of magnitude as to future funding requirements. The value of Roads, Bridges & Culverts represents almost 64% of County asset historical cost. The Cumulative funding gap for Roads, Bridges & Culverts at end of 2015 is estimated at $13 million Budget and Five Year Plan 11

12 Asset Management Planning Scenario 1 Do not address if we fund capital at current levels projected in the 5 year plan with no additional reserve contribution. Cumulative funding gap at end of 2020 = $35.5 million Scenario 2 Per January Budget Longer Term Strategy an additional reserve contribution has been included: $200,000 (.23% tax impact), $200,000 (0% tax impact), $400,000 (.21% tax impact), $1.2 million (.79% tax impact) and $5 million (3.6% tax impact) Total additional contribution in 5 years = $7 million Cumulative funding gap at end of 2020 = $28.5 million 2016 Budget and Five Year Plan 12

13 Asset Management Planning Scenario 3 - Address in 2016, 2017 & 2018 an additional reserve contribution: $9 million (10.48% tax impact), $8 million (-1.12%) and $7.9 million (-.06%) Total additional contribution in 3 years = $24.9 million Cumulative funding gap at end of 2018 = $0 Scenario 4 Address in 2018, 2019, 2020 an additional reserve contribution: $200,000, 2017 $200,000, $10 million (10.26% tax impact), $12,000 million (1.98% tax impact) and 2020 $13.1 million (1.06% tax impact) Total additional contribution in 5 years = $35.5 million Cumulative funding gap at end of 2020 = $ Budget and Five Year Plan 13

14 Asset Management Planning 2016 Budget and Five Year Plan 14

15 Asset Management Planning Note: Year/Year tax impact 2016 Budget and Five Year Plan 15

16 Capital/Operating relationship 2016 operating reserve transfers = $9.5 million (excluding reserve interest) Financing for future capital expenditures (smooth levy impacts of major and minor capital) Operating surplus transfers to fund future operating needs winter control, economic development Fund future liabilities WSIB, sick leave Operating Expenditures -Asset operations -Asset maintenance -Contributions to capital -Debt servicing costs -Reserve Provisions Reserves & Reserve Funds -Transfer from operating budget -Transfer to capital 2016 Budget and Five Year Plan 16

17 Reserves The County recognizes that the strategic use of reserves and reserves funds is an essential part of a long-term corporate financial plan. Reserves and reserve funds may be established for any purpose deemed necessary by resolution of County Council. Typical uses of reserves are for equipment replacement, contingencies and stabilization purposes, and capital financing 2016 Budget and Five Year Plan 17

18 Reserves Reserve: A reserve can be created at the discretion of Council, the County classifies reserves into 3 types Contingency and stabilization reserves Used for emergency and unplanned funding needs or significant increases in tax rates. Projected balance of County Contingency Reserves at Dec 31 is $15.3 million Specific Purpose Reserves includes WSIB and landfill liability, operating programme specific savings to be used in future years, hospital funding, Federal funding received to be spent on defined items and donations Projected balance of County Specific Purpose Reserves at Dec 31 is $13.6 million Capital Reserves used to finance capital expenditures as deemed appropriate by Council Projected balance of County Capital Reserves at Dec 31 is $ $36.5 million 2016 Budget and Five Year Plan 18

19 Reserve Projections Capital Related Reserves $ 36,521 $ 35,525 $ 38,086 $ 40,633 $ 43,783 $ 52,482 Contingency/Stabilization/Working Reserves $ 15,350 $ 13,422 $ 14,427 $ 15,470 $ 16,531 $ 17,605 Specific Purpose Reserve Funds $ 13,617 $ 13,917 $ 15,957 $ 18,898 $ 14,604 $ 15,482 Total Discretionary Reserves $ 65,488 $ 62,864 $ 68,471 $ 75,000 $ 74,919 $ 85, Budget and Five Year Plan 19

20 Reserves The County has taken a proactive approach to funding facility and equipment related reserves in order to avoid the need to issue debt. This approach has proven successful for example: Allowing the County to act immediately in the case of unanticipated events The reconstruction of Willowdale Child Care Centre when the facility needed to be closed due to health concerns fully funded from reserve $2.4 million To take advantage of funding opportunities from senior levels of government Fergusson Place Phase II - $5.7 million from reserve and $8 million in federal funding Historically roads related reserves have been used to fund project variances at time of tender for example $1.3 million budget adjustments However with a projected balance of only $4.9 million, the roads capital reserve is not adequate to provide the flexibility to fund unexpected projects such as the Badley Bridge for $4.3 million. County policy identifies a target balance of at least one year of average budgeted capital expenditures (approximately $15 milllion) Budget and Five Year Plan 20

21 Reserves Facility related reserves include: County Property reserve funds minor and major capital projects relating to Admin facilities, police and libraries. Funded through annual operating transfers from admin and police, annual surplus often transferred to property reserve. Future library funding to the property reserve to be equal to debt servicing costs as debt issues mature. Social Services reserve funds minor and major capital projects relating to facilities housing social services administration, social housing improvements, childcare and affordable housing capital initiatives. Funded through annual transfers from social housing and property. Housing capital reserve funds social housing capital variances at time of tender and project closing. Funded through capital savings. Terrace building reserve funds building related minor and major capital projects at the Terrace and the eventual replacement of the building. Funded through annual contribution from the terrace 2016 Budget and Five Year Plan 21

22 Capital Related Reserves Property Reserve Budgeted Transfers to and from Property Reserve Property reserve funds facility improvements for Administration, Library and Police Current balance $6.9 million, projected to be $8.8 million by 2020 Over the 5 years we are contributing $1.5 million more than we are using in order to have a balance for future projects Property Reserve Transfers to reserve 1,793, , , , ,100 Capital Transfers from reserve (1,381,000) (680,000) (170,000) (75,000) (50,000) Operating Transfers from reserve (238,000) (16,000) (23,100) (36,000) (21,000) Net Effect on Reserve 174,100 (102,900) 400, , , Budget and Five Year Plan 22

23 Capital Related Reserves - Other Facilities Budgeted Transfers to and from Other Facility related Reserves Terrace, Social Services, Green Initiatives and Housing Development Over the 5 years we are contributing $1.2 million more than we are using in order to have a balance for future projects Other Facility Related Transfers Transfers to reserve 2,539,600 2,608,000 2,599,000 2,595,000 2,590,000 Capital Transfers from reserve (6,968,000) (1,389,000) (775,000) (1,826,000) (788,000) Operating Transfers from reserve (35,000) Net Effect on Reserve (4,463,400) 1,219,000 1,824, ,000 1,802, Budget and Five Year Plan 23

24 Capital Related Reserves Equipment Reserves Equipment related reserves include: Roads Equipment funds replacement and new equipment purchases for the roads department. Funded through operating transfer from the roads department and proceeds from the sale of old equipment. SWS Equipment funds replacement and new equipment purchases for the SWS department. Funded through operating transfer from SWS Equipment budgets vary from year to year with a five year average of $2 million in roads and $355,000 for SWS Annual operating transfers helps to keep the levy stable Budget and Five Year Plan 24

25 Reserves Budgeted Equipment Replacement Reserve Transfers County Equipment purchases for Roads and Solid Waste are fully funded from reserve. Over the 5 years we are using $2.7 million more than we are contributing will have to review Equipment Replacement Reserves Transfer to Reserve 1,834,200 1,834,200 1,834,200 1,834,200 1,834,200 Transfer From Reserve (2,282,000) (2,210,000) (2,885,000) (2,427,000) (2,130,000) Net Effect on Reserve (447,800) (375,800) (1,050,800) (592,800) (295,800) 2016 Budget and Five Year Plan 25

26 Roads related reserves include: Reserves Roads Capital Reserve funds capital project variances at time of tender and project completion. This reserve is also used to fund roads facility replacements. Funded from an operating transfer equal to aggregate revenue approximately $100,000 per year (1 ½ cent per tonne) Additional operating transfers are included to cover facility replacements to help smooth the levy impact of these projects Federal Gas Tax is available to fund a broad category of projects but historically the majority of the funds are used for roads infrastructure projects. The County receives $2.6 million annually and has budgeted $14.5 million over Roads Asset management reserve creation has been incorporated into the 5 year plan with a projected balance of $7 million by As projects become increasingly more costly, planning for the future will become more important Budget and Five Year Plan 26

27 Capital/Operating relationship 2016 Reserve transfers to operating = $2.1 million which funds: Minor capital for facilities Insurance claims Work at closed landfill sites Growth related debt Non budgeted transfers occur to offset budget variances for winter control ($1.2 million in 2014), WSIB and sick leave Operating Expenditures -Asset operations -Asset maintenance -Contributions to capital -Debt servicing costs -Reserve Provisions Reserves & Reserve Funds -Transfer from operating budget -Transfer to capital 2016 Budget and Five Year Plan 27

28 Capital/Operating relationship 2016 Reserve transfers to capital = $39.6 million Fully fund equipment purchases Fully fund facility improvements for corporate property Partially fund various projects to offset levy impact Capital Financing -Grants/subsidies -Development charges -External recoveries Property taxes/user fees -current year -future years (debentures) -previous years (reserves) Reserves & Reserve Funds -Transfer from operating budget -Transfer to capital 2016 Budget and Five Year Plan 28

29 Capital/Operating relationship Funding of Capital projects has the potential to impact operating expenditures - Debt Servicing cost Capital Financing -Grants/subsidies -Development charges -External recoveries Property taxes/user fees -current year -future years (debentures) -previous years (reserves) $ Operating Expenditures -Asset operations -Asset maintenance -Contributions to capital -Debt servicing costs -Reserve Provisions 2016 Budget and Five Year Plan 29

30 Debt Servicing Costs by department Total tax supported debt servicing costs average $3.9 million annually over the next five years representing approximately 4.4% of the 2016 levy requirement $2,000 Tax Supported Debt Servicing Thousands $1,500 $1,000 $ $0 Property Roads Terrace Police Library Housing Health Unit POA 2020 Department 2016 Budget and Five Year Plan 30

31 Forecast of Debt Outstanding 40 County of Wellington Debt Outstanding ($ Million) Tax Supported Debt DC Supported Debt 2016 Budget and Five Year Plan 31

32 Debt Management Benefits of issuing long term debt include: Allows much needed or desired projects to proceed without severe spikes in the tax levy or user fees Spreads the payments for capital projects over a longer period (for as long as the life of the asset), as well as over a larger group of users Downside of issuing long term debt: Repeated borrowing results in reduced operating budget flexibility as debt servicing costs increase, which in turn can result in a cycle of borrowing Can be used to keep the current year s tax impact artificially low which means potential trouble in future years 2016 Budget and Five Year Plan 32

33 Debt Management Considerations of issuing debt in the budget process Potential impact on County Credit rating Standard & Poor s Ratings Services, August County of Wellington AA+ ratings affirmed on exceptional liquidity and very low debt burden Increased operating expenses Date Rating Outlook 2002 (initial rating) A+ Stable Apr-04 A+ Positive Aug-05 AA- Stable Aug-06 AA- Stable Aug-07 AA- Stable Oct-08 AA- Positive Apr-10 AA Stable Jun-11 AA Stable Aug-12 AA Stable Aug-13 AA Positive Aug-14 AA+ Stable Aug-15 AA+ Stable 2016 Budget and Five Year Plan 33

34 Debt Management An example from our past Wellington Terrace - constructed a new facility that opened in 2006 Final cost to complete the project $22.7 million Funded by three debentures Annual debt servicing costs $1.9 million 2016 Budget and Five Year Plan 34

35 Debt Management An example from our past Wellington Terrace building reserve established in 2009 to fund future building related capital expenditures Terrace Building Reserve Thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ Budget and Five Year Plan 35

36 Debt Management An example from our past Legislated facility requirements may see the need for a new building assume 2031 Current 5 year projection includes a provision to transfer an amount equal to debt servicing cost as the debt matures. Assumption that reserve also funds building improvements as the building ages ($13.7 million in improvements included in projection) Current insured value of the building is $30.2 million 2031 replacement cost??? 2016 Budget and Five Year Plan 36

37 Library Construction History 2016 Budget and Five Year Plan 37

38 Library Construction History The County has invested over $22 million in the library system since 2002 $16 million funded from the levy and reserve representing 71% of the total $7.8 million in debenture representing 35% of the total Resulting in Tax support Debt Servicing costs of $560,000 in 2015 (7.7% of levy requirement for libraries) Hillsburgh Branch Operating impact of issuing debt As Projected in Five year plan Library Tax Supported Debt charges Library Total Net Cost 7,326 8,784 6,284 6,301 6,456 Debt as % of Library Operating Budget 7.7% 6.4% 8.9% 5.7% 4.4% Fund Hillsburgh Library with 2.5 million in debt Library Tax Supported Debt charges Library Total Net Cost 7,326 6,284 6,593 6,611 6,766 Debt as % of Library Operating Budget 7.7% 10.2% 13.1% 10.1% 8.8% 2016 Budget and Five Year Plan 38

39 Capital/Operating relationship Operating contributions to capital represent the current year funding of capital works as well as the contribution to capital reserves from Operating Capital Financing -Grants/subsidies -Development charges -External recoveries Property taxes/user fees -current year -future years (debentures) -previous years (reserves) $ Operating Expenditures -Asset operations -Asset maintenance -Contributions to capital -Debt servicing costs -Reserve Provisions 2016 Budget and Five Year Plan 39

40 Levy Funding The overriding principle with respect to capital budget financing is to adopt a pay-as-you-go approach, and therefore to minimize or avoid altogether the issuance of debentures or other forms of long term financing - County of Wellington Capital Budget and Long Term Financing Policy Benefits of Pay-as-you-go include: The financial consequences of capital spending are faced as the spending decisions are being made Paying for capital costs up front encourages a realistic level of spending Provides greater operating flexibility Avoid interest, fiscal agent fees and debenture issuance costs 2016 Budget and Five Year Plan 40

41 Capital Budget & Forecast Budget and Five Year Plan 41

42 Sources of Financing - 5 year Plan Capital The 5 Year Plan is developed using the principles outlined in the County of Wellington Capital Budget and Long Term Financing Policy as follows: Maximize the use of grants and subsidies from senior levels of government or other sources Use development charges to fund growth-related capital works To the greatest extent possible, fund the County share of capital through current year tax levy Use capital reserves to finance capital works and to limit large fluctuations in tax levy funding Debentures are considered financing of last resort and only to be used for: Equipment and machinery when there are insufficient funds in the equipment reserve of tax levy Capital projects in excess of $1 million where insufficient reserve and current year tax levy financing exists Emergency capital expenditures 2016 Budget and Five Year Plan 42

43 Capital Financing Development Charges, 3.4% Debentures, 0.8% Recoveries, 8.4% $70.7 million 46.2% of capital spending will be funded from tax levy Federal Gas Tax, 9.5% Subsidy, 5.9% $39.6 million 25.9% funded through reserve $23.5 million -15.4% funded through Fed and Prov subsidies including Fed Gas Tax Reserves, 25.9% $5.2 million - 3.4% funded from Development Charges Current Revenues, 46.2% Only one project scheduled to be debt financed: $1.2 million for the rebuild of the Drayton Shop (2016) 2016 Budget and Five Year Plan 43

44 Capital Expenditures Economic Development, 0.8% CAO & Clerks, 1.3% Wellington Terrace, 0.7% Social Services (Housing, Childcare, Ontario Works), 10.1% County Library System 5.7% Museum and Wellington Place, 0.7% County Property, 0.5% Solid Waste Services, 4.3% Hospital and Other Capital Grants, 5.9% Ambulance Service, 1.3% Other (Emergency Management, Green Legacy, Police, POA), 0.5% Roadways, 62.2% Gross Capital Expenditures for $153 million Roadways % or $95 million Social & Affordable Housing 18.9% or $28.9 million Hospital Grants 5.9% or $8.96 million (balance of $9.4million) 2016 Budget and Five Year Plan 44

45 Setting Priorities Capital Plan: Roads Projects are brought forward to the five year plan based on: Safety Asset preservation The provision of an efficient transportation network Need is determined through: Bi-annual inspections of bridge and culverts Annual review of pavement condition index scores Analysis of bi-annual traffic counts to ensure the roadway meets the provincial standards Roads staff have recently purchased the WorkTech software system. Once the software implementation is complete (2016) the data within the roads asset management plan will be updated, and may result in changes to the forecast years within the capital budget Budget and Five Year Plan 45

46 Capital Plan: Roads County was not selected to move forward to second intake for the Small Communities Fund (SCF) funding for the Badley Bridge project Roads envelope of funding increases significantly in 2017 (approximately $2.3 million in current funding) Investment in County roads network almost $64 Million over next five years $26.6 million roads construction $28.9 million bridge and culvert rehabilitation $20.8 million in roads resurfacing Rebuild Drayton Garage $3.5 million in 2016, ($1.2 million funded from debt, $1.3 million from current and $1 million from reserves) Rebuild Erin Garage - $4.5 million in Budget and Five Year Plan 46

47 Capital Plan: Solid Waste Services $4.7 million in improvements at active Landfill sites over 5 years (current funding) Includes potential Leachate Collection System at Riverstown - $3.4 million in 2018/2019 Riverstown New cell development - $400K in 2017/2018 Waste Management Strategy project - $300K spread over 2016, 17 and 18 and has the potential to impact future operating & capital budgets Equipment replacements totaling $1.8 million over the five years fully funded from reserve 2016 Budget and Five Year Plan 47

48 Capital Plan: Economic Development SWIFT - The five year plan increases the total payment by $140,000 total budget for SWIFT program is $1.14 Million to be paid out by The Wellington signage implementation is budgeted at $130,000 funded from the tax levy and is scheduled for Budget and Five Year Plan 48

49 Capital Plan: Terrace Various furniture and equipment replacements over the five year plan $895,000 The Domestic Hot Water Boiler Replacement is budgeted in 2016 for $120,000 Resident Van replacement in 2020 for $40,000 The forecast has all projects funded from the levy Budget and Five Year Plan 49

50 Capital Plan: Social Housing Capital spending includes: Capital improvements in the County owned units totaling $14.4 million over the next five years the County s share of $3.5 million is fully funded from reserves Building condition audits for Non-Profits and Affordable Housing units are scheduled for 2016 ($110,000) The final phase of the Speedvale elevator project is planned for 2016 and is currently expected to be completed at a lower cost than originally forecast (savings of approximately $200,000). Included in the capital budget for IT is the acquisition of the Integrated Housing System (IHS), a database being developed to streamline non-profit administration at $65, Budget and Five Year Plan 50

51 Capital Plan: Affordable Housing The capital plan includes $13.7 million for the construction of Fergusson Place Phase II. The County has secured $8 million in funding from senior levels of government with the remaining $5.8 million funded from reserves. $307,000 over the five years has been allocated for facility improvements at 165 & 169 Gordon Street (Fergusson Place Phase I & II) in Fergus and 182 George St in Arthur. These projects will be funded through the Housing Development Reserve Fund Budget and Five Year Plan 51

52 Capital Plan: Social Services Child Care - The capital budget includes an allocation of $175,000 over to complete facility improvements at the administration offices located on Douglas Street. The County s portion of $40,000 is funded from reserve and the City requirement is $135,000 Ontario Works - The Capital plan includes facility improvements at 129 Wyndham St and the Fergus Ontario Works office. The County s portion is $67,000 funded from reserve. The City s funding contribution for capital works is $43, Budget and Five Year Plan 52

53 Capital Plan: Hospital Grants In 2008, Council committed $5 M for Groves Memorial Hospital In 2014, Council committed an additional $9.4 M by 2019 for Groves ($5M), Louise Marshall ($2.2M) and Palmerston District ($2.2M) Annual reserve contributions over are required to fund these grants ( $1.2 m, $1.5 m, 2017 $ 1.7 m, $2.5 m, $2.5 m) $440,000 being paid out to Palmerston over , Groves and Louise Marshall balance of $7.2 million paid out in Budget and Five Year Plan 53

54 Capital Plan: Libraries New Hillsburgh Library scheduled for $4 million has been identified, funded $1.5 million from the County Property Reserve and $2.5 million from the tax levy $1 million in 2016 funded from Property Reserve $3 million in 2017 funded from Property Reserve ($500,000) and current revenue ($2.5 million) Local branch improvements in 2016 include Installation of two self check out terminals Replacement of outdoor signs at Marden and Palmerston Addition of interactive programme material in the children s department at various branches. Upgrade to interior lights at the Rockwood branch 2016 Budget and Five Year Plan 54

55 Capital Plan: Museum and Archives The rehabilitation of Wellington Place - budget of $264,000 including $80,000 federal funding from the Canada 150 Community Infrastructure Programme with the remaining $184,000 funded from reserve in Upgrade of existing washroom facilities to make them accessible in 2016 budgeted at $100,000 Resurface Driveway and Parking Lot in $400,000 funded from reserves Wellington Place signage - replace the existing electronic sign and the installation of directional signs within WP property. The proposed budget is $150,000 fully funded from reserves 2018/ Farm House Archeological dig budgeted at $175,000. The dig site is located near the hospital construction zone so the timing of this project is dependent on the completion of the hospital. Proposed funding is the tax levy Budget and Five Year Plan 55

56 Capital Plan: Green Legacy & Community Emergency Management Green Legacy: Facility work on the southern nursery includes waterproofing the foundation funded from the property reserve. A replacement truck for the Tree Nursery manager scheduled for 2016 Community Emergency Management: Upgrading of the County fire paging equipment budgeted at $400,000, funded from the General Capital Reserve Emergency Management software budgeted at $80, Emergency Management vehicle replacement budgeted at $50, Budget and Five Year Plan 56

57 Capital Plan: Administration CAO & Clerks: The capital forecast includes replacement activities for network, server, switches and electronic storage. The implementation of software solutions for Social Housing ($65,000) and Planning departments ($130,000) are included in Property Services: The capital budget includes provisions for improvements at the Court House (Elevator, Electrical and Mechanical systems) and Administration Centre (Roof and Heating system repairs and furniture replacements) as well as repairs and renovations to other County buildings. Also included in 2016 is a provision for an asset management tool, and the purchase of a new maintenance van Budget and Five Year Plan 57

58 Operating Budget 2016 Overview 2016 Budget and Five Year Plan 58

59 Operating Budget: Roads Winter control budget of $4.9 million in 2016 An increase to purchased services has been added for fleet maintenance ($100,000) as well as in roads garages ($60,000) Minor Capital has been increased by $150,000 based on the increasing costs associated with Hot Mix Patches 2016 Budget and Five Year Plan 59

60 Operating Budget: Roads Additional roads safety hours in 2016 offset by reduced contracted services Debt servicing costs associated with Drayton Shop are expected to commence in 2016 with the majority of the charges to begin in 2017 $200,000 reserve transfer in 2016 towards asset management, growing to $5 million in 2020, total amount set aside over the 5 years of $7 million 2016 Budget and Five Year Plan 60

61 Operating Budget: Solid Waste The 2016 estimate of blue box recyclables and scrap metal sales revenue has been decreased by $200,000 based on 2015 experience SWS will be implementing a new HHW mobile unit in order to increase the quantity of and access to HHW materials diverted each year. This includes the addition of a part-time HHW technician in June of Budget and Five Year Plan 61

62 Operating Budget: Museum and Archives Annualization of part-time Archives assistant added in 2015 Additional hours for the Curatorial Assistant position will enable the WCMA to continue and expand its outreach programme of artifacts in public spaces; and, work with local municipalities and groups on their heritage projects Budget and Five Year Plan 62

63 Operating Budget: Library $100,000 in Provincial funding for electronic databases previously funded by the province are ending in $30,000 worth are being retained and now funded by the County. Additional Assistant Branch Supervisor and Page hours at the Fergus location to meet the current needs of the location, additional page hours at the Clifford location Additional Assistant Branch Supervisor and Page hours at the Palmerston location as it is set to re-open in Budget and Five Year Plan 63

64 Operating Budget: Housing The Special Projects Manager position approved in the 2015 budget remains vacant as there is currently a staffing review being performed by an external consultant The Integrated Housing System (IHS), a database being developed to streamline non-profit administration, is included in the operating budget at $30,000 for maintenance Increases in the budget to allow for higher move out repair demands, hydro costs, and grounds maintenance Budgetary implications for End of Operating Agreements beginning in 2016 currently under review Budget and Five Year Plan 64

65 Operating Budget: Ontario Works Staffing levels for 2016 increasing by 2 temporary caseworker positions required for pressures from ongoing SAMS provincial software issues (received one time funding in 2015) The County will continue to advocate to the Province to provide additional funding to cover these administrative costs related to SAMS Federal funding for Immigration Settlement services has been confirmed to extend to March Budget and Five Year Plan 65

66 Operating Budget: Child Care A new management position has been created to realign oversight of prescribed services due to increased contractual requirements with the Ministry of Education, increasing staffing levels by 1 FTE Palmerston Child Care may move to an Upper Grand District School Board site with increased capacity in Budgetary implications are unknown Budget and Five Year Plan 66

67 Operating Budget: Planning Funding for the Rural Water Quality Programme ($425,000) and the Risk Management Officer ($170,000) have been maintained at 2015 levels The annual grant programme for the Local Trail Fund continues in 2016 with a budgeted amount of $150,000 to provide funding for local municipalities to implement projects identified in the Active Transportation Plan Budget and Five Year Plan 67

68 Operating Budget Green Legacy: Funding has been maintained at historical levels to provide for operations for both the northern and southern nurseries as well as volunteer and educational programmes for students Community Emergency Management: Fire safety training is continued throughout $20,000 has been added in 2016 to finalize the fire paging system and determine needs and scope of replacement 2016 Budget and Five Year Plan 68

69 Operating Budget: Wellington Terrace Additional funding expected for 2016 of $260,000 based on case mix changes The first debt charge maturity from the Terrace building construction matures in 2017, resulting in a reduction in debt charges of $114,000. Staff propose to use the savings to increase the transfer to the Terrace building reserve to continue to set aside funds for the future repairs and replacement of the facility Budget and Five Year Plan 69

70 Operating Budget: Economic Development The addition of a full-time Talent Attraction Position (1 year contract) budgeted to start March 1 st, This may be partially offset by grant funding. Responsibilities of this position will include: Live and Work in Wellington bus tours Follow up on Interviews Represent community at two Newcomer Fairs in Toronto for new immigrants Matching export businesses with native speaking newcomers Assist with IPM coordination International Plowing Match in $150,000 is budgeted in 2016 to cover County related costs to host the event. In addition, a transfer of $100,000 to the town of Minto is budgeted in 2016 for the event Budget and Five Year Plan 70

71 Operating Budget: Economic Development County-Wide Business Retention and Expansion Implementation ($50,000) Business Retention and Expansion Local Implementation Fund ($175,000) continue throughout the period $50,000 for exploration of County Improvement plan programmes (CIP) Existing initiatives including Taste Real, Festival and Events Guide Total budget for Economic Development is just under $1.4 million in 2016 Approx. half is related to core activities Remaining amount is for grant programme ($175,000); IPM ($250,000) and SWIFT funding ($240,000) 2016 Budget and Five Year Plan 71

72 Operating Budget: POA Revenue has been reduced throughout the five year plan to better reflect actual results in 2015 due to low charge volumes by $280,000 budget Transfer to capital also reduced by $120,000 in 2016 Net negative impact is $160,000 POA no longer a revenue generating area revenues now only cover debt servicing 2016 Budget and Five Year Plan 72

73 Operating Budget: Police The 2016 contract estimate is $15,664,428 and represents a savings of $769,000 from the 2015 contract As part of the Strategy for a Safer Ontario the Ministry is developing a new funding model to support local initiatives and is not able to confirm any funding beyond the 1st quarter of 2016 this represents a reduction of $157,500. The Safe Communities transfer payment ($25,000) has now been moved from Economic Development into Police to align with this strategy. Each year from the 5 year plan allows for the addition of one new officer 2016 Budget and Five Year Plan 73

74 Treasury: Operating Budget: Administration A new Asset Management Coordinator position to meet ever increasing financial reporting requirements. This position will allow the County to complete comprehensive asset management plans along with a longterm financing strategy Property: Additional hours for existing cleaner positions from part-time to full-time to allow for additional cleaning coverage at various County buildings where work area space and usage has been expanded as well as the Willowdale Child Care Centre (offset by the end of the existing cleaning contract costs $20,500 at that location) 2016 Budget and Five Year Plan 74

75 Operating Budget: Administration CAO & Clerks: The addition of a Graphic Designer position in 2016 in order to allow shifting of current duties and the expansion of the County s Social Media presence The addition of an Information Management assistant position in September of Budget and Five Year Plan 75

76 Operating Budget: Public Health and Ambulance Public Health: The County funds 32.7% of the municipal share of Wellington-Dufferin- Guelph Public Health expenditures levy requirement of $2.2 M for 2016 representing a 2 % increase. Impact of Provincial funding freeze unknown on future years. Ambulance: The County funds roughly 39% of the municipal share of Land Ambulance expenditures (based on calls for service) levy requirement of $3.5M in 2016 Reserve transfer increased by $100,000 to address all capital requirements related to Land Ambulance 2016 Budget and Five Year Plan 76

77 General Revenues: Operating Budget: General Exp and Rev. OMPF funding further reduced by an additional $448,000 over 2015 Interest earnings estimated $2.7 million (transferred to reserves) Supplementary Taxes decreased by $200,000 as MPAC catches up on outstanding permits General Expenses: Tax write-offs - remain at $850,000 throughout Contribution to MPAC for property assessment - $1.365 million (1.3% increase) 2016 Budget and Five Year Plan 77

78 Operating Budget: Staffing Changes 2016 Staffing Summary 2015 Approved staff complement (expressed as full time equivalents) Annualization of positions approved in the 2015 budget 0.6 Adjusted 2015 staff complement In-Year Adjustments FTE # of New Employees Annualize in 2017 Gross Cost (Sal & Ben.) Other Funding / Savings Net County Cost - $ Subtotal 0.0 $ - $ - - Other Gross Cost Funding / Net County 2016 Budget Changes FTE (Sal & Ben.) Savings Cost CAO & Clerks: new Information Management Assistant ,800 24,800 CAO & Clerks: new Graphics Designer ,600 55,600 Museum: additional hours Curatorial Assistant ,000 28,000 Solid Waste: new HHW Technician ,000 (18,000) - Treasury: new Asset Management Co-ordinator ,000 81,000 Economic Development: Economic Development Project Coordinator (contract) ,700 (9,000) 44,700 Child Care: new Child Care Manager ,400 (68,100) 10,300 Roads: Additional safety devices hours ,000 (30,000) - Library: additional ABS and Page hours Fergus, additonal ABS and page hours Palmerston, additonal page hours Clifford, , ,000 Property: Additional Cleaner Hours ,000 (20,500) 47,500 Two temp Caseworkers/two temp step increases (1 year only) ,400 (155,000) 26,400 Proposed changes to Staff Complement 9.7 $ 734,900 $ (300,600) $ 434, Proposed Staff Complement (full time equivalents) Budget and Five Year Plan 78

79 2016 Operating Budget Summary 2nd year of Police Billing Model, $769,000 in savings from the 2015 contract Reserve funding set aside for hospital grants ($1.5 million in 2016 Total $9.4 million by 2019), SWIFT rural broadband ($340,000 in 2016 Total $1.14 million by 2019) Major investment in asset management with transfers beginning in 2016 ($200,000) with reserve transfers totaling $7 million over the 5 year forecast OMPF funding reductions ($448,000 and 0.5% impact on tax levy) Reduction in POA revenue($280,000) offset by reduced transfer to capital Net negative impact $160,000 Reduction in SWS recyclable revenue ($200,000 and 0.2% impact on tax levy) 2016 Preliminary tax impact at 2.8% 2016 Budget and Five Year Plan 79

80 Challenges Beyond 2016 Updating and completing Asset Management Plans and development of Long Term Financing Strategy Addressing Social Housing needs Development and implementation of a Waste Management Strategy Ongoing Tax Assessment issues including Gravel Pit and Farm Tax Rebate 2016 Budget and Five Year Plan 80

81 County of Wellington County tax impact ( ) 6.2% 4.9% 1.9% 2.4% 2.2% 2.8% 2.8% 3.3% 3.8% Actual Projected 2016 Budget and Five Year Plan 81