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9 ' A A «' ;.A_ Budget2O 8 Of'T1;1 01-Old % u (Ihmlv Thc \lumuum.. BUDGET 2018 TH()lI.D.!) C111,5,-S -.2.,1., V 4 _ w _ w, w =» _7

10 2 Budget 2018 Budgets - City has 4 budgets: General Operating Budget - Gross Expenditures $20.9 Million - Levy- $14.1 Million Capital $5.2 Million Water WastewaterlSidewa ks I March 2018

11 Operating Expenses Capital Expenditures 3 Budget2018 \\"h.-vuslnpxclimb Thu \ /1I.v!u\:.lIn.u Funding Sources Reserves Reserves 5 Property Z Taxes Property Taxes / Other Investment Revenue lncome

12 User Fees % of Operating Expenses covered 4 Budget2018 7QO%o ' 10.0% (D 0.0% I Cemetery Arena Parks Pools Comm Centre I1998 I2018

13 it.;:'.;:;;;.; Z_i~_':: ;:;:;_;.. _; 3,,7 But i 8 5 Cha?enge - Sustainability Community Aging Limited Costs No Expectations Infrastructure Services and assets; Access to New Revenue Sources rising faster than revenues - Cost to service growth must be consid:e_rtetd desire to cut services - Taxpayer affordability

14 Budget City OfT1_ 1~o1-old \Vhm Slulvi<:u.uh Tn. 4\1UIn(hlH... Growth Cost Has Will LAG: to service growth must be considered - DC s pay for upfront capital; City pays for Ongoing Operating Costs already & continues to lead to staffing increases in the Planning and Building Departments filter down to all departments as developments progress, as servicing must be provided : eg. Receive growth $ up front, and once critical mass is achieved in future years, then costs will increase. - Snow plowing; street cleaning; Streetlighting costs; - Parks Maintenance; Fire Services; Billing & Administration - Infrastructure Maintenance & Capital Renewal Provisions - Vehicles & Equipment

15 7 Budget Total Property Taxes Allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% I City I USA/Hospital i Region I Education

16 2017 Total Property Taxes Detached Bungalow Budget 2018

17 2018 Budget Guideline 9 Budget Council target: 3% Net Levy 2% 1% Departmental Infrastructure

18 - Departmental Net Levy Increase 2.0% - Infrastructure/Asset provisions 1.0% TOTAL 3.0% 10 Budget 2018 City of T d 2018 Operating Budget COUNCIL TARGET ACHIEVED

19 H Budget2018 City of Tliol-01 d \\"h.-nvslur»ciimlvthe \4umu.zm.. Gross Expenditures Operating Budget Planning/EDO 5% Environmental Cemetew$\ ~ 4 /o Financial/Capital 4% Winter Control Trans 3% / 4% _ Gross Exp: $20.9 Million

20 Tax Re atedlp L 8;: 5% Fees& Charges 5% Building Permit fees 3% Reserve Funding 4% $19.9 Million 12 Budget2018 \\" lirwgimp:climbtlmmuunmin... Revenue Sources Operating Budget Where funds come from Investment Income Tax 1% Re atedlpll's Fees & Charges 5% Building Permit fees 5% Reserve Funding 3% Other 4% $20.9 Million

21 13 Budget 2018 Budget2018 MAJOR IMPACTS

22 Salary, Wages, Benefits 14 Budget Wage & Benefit increase existing staff: $123,800 Bill 148 Minimum Wage - $19,300 NET LEVY IMPACT: $143,100

23 Salary, Wages, Benefits 15 Budget New Positions Junior Bylaw Building PW Probationary Underground Planner (9 months): $64,500 Officer - $75,000 Inspector $90,000 (funded from Permit Revenues) Student (4 months) $15,000 Firefighter (Fill In) $63,000 Service Operator $78,000 (funded from Water Sewer Budgets) NET LEVY IMPACT: $217,500

24 16 Budget2018 Asset Provisions - Shortfall of $3.0 Million per year Projected - Plan to phase-in increases over 10 years started in Great Progress made in reducing shortfall from $4.0 Million Asset Management Plan for infrastructure mandated by Province Condition of grant eligibility & success

25 ASSET RENEWAL ANNUAL :1 O 0-! =1... S hortfall 2 $3.0M Budget I Amortization II Replacement 17 Budget2018

26 18 Budet 2018 O. Reg 588/17 - July 1, 2019 Strategic Asset Management Plan finalized Goals, Process policies/plans supported by the AMP by which AMP is to be considered in development of Budget/long term financial plans - July 1, 2021 Approved Asset Management Plan for Core Assets (hard services) Current levels of service & cost of maintaining those services - July 1, 2023 Approved AMP for all municipal infrastructure assets including service levels/costs

27 19 Budoet2018 citv 0* T*3. ro1ci Capital Transportation I: r Vin;-.( limb Thu Mu - AMP requires increase to Transportation Assets Capital Provision $1.5 Millionper year underfunded - 100% of Federal Gas Tax - Ministry-mandated definitions: Roads, Streetlights, Signs, Bridges, Storm Sewers & Culverts, Sidewalks - Budget includes recommended increase to capital provisions of $263,700 - OCIF Grant increase $83,100 NET LEVY IMPACT: $180,600

28 20 Budget2018 Capital Provision Non-Infrastructure Assets - Annual Shortfall Estimate $1.48 Million Projected Increase required was $260,000 To mitigate impact, only $53,000 increase was included A NET LEVY IMPACT: $53,000

29 NET LEVY IMPACT: $75, Budget2018 Facility Maintenance - Budget includes $75,000 re: Facility Maintenance - General Contractor to oversee and respond in a timely fashion Improved Quality Overall Accountability Services levels of workmanship appearance and upkeep of the facilities on service levels for stakeholders

30 NET LEVY IMPACT: $63, Budget 2018 TransitlParatransit - Paratransit expenditures increased by $15,000 - Revenues decreased by $48,200 from Provincial Gas Tax Funds/Transit Reserve - Gas Tax Funding insufficient

31 23 Budget 2018 Ash Trees Program - Budget has been increased by $59,600 for contracts for removal/replanting 2018 Contract Budget: $195,000 - Removal: $150,000 - Planting: $ 45,000 NET LEVY IMPACT: $59,600

32 - Budget has been reduced by $35,000, from $325,000 to $290, Budget2018 Tax Provision NET LEVY IMPACT: $35,000

33 - Parking Lot Pass Revenues: $86,400 - Expenses (excluding Wages & benefits included above) $26,000 - Pay Back Loan Parking Lots: $49,600 NET LEVY IMPACT: $(10,800) 25 Budget2018 Remaining Loan 0/s $207,000

34 - Monitoring costs reduced by $32,500 to $125,000 NET LEVY IMPACT: $(32,500) 26 Budget2018 Rice Road Landfill

35 0 0 Rental Housing Licensing 27 Budget Proposed Revenues increased by $100,000 $50,000 $50,000 to Bylaw to Fire - Requires Additional Bylaw of?cer (included above) along with Related Vehicle & Equipment Expenses NET LEVY IMPACT REVENUES: $(100,000)

36 28 Budget 2018 OfThOr0ld X Revenues Major Changes - OMPF Grant decrease by $16,600 - Supplemental Taxes increase by $100, Parking Enforcement Fines increase by $25,000 NET LEW IMPACT: $(1o3,4oo)

37 City of T1101-old 1- Reductions and Deferrals 29 Budget To meet Council Guidance: >Tota of $1.3 Million in Capital Items Deferred >Facilities $700,000 >Land Purchase new Station 1 - $600,000 >Total Operating reductions excluded from draft budget $453,000 >Capital Asset Provision - $207,000 >Staffing: $150,000 >Council can review these items as part of deliberations.

38 - City represents an average of 38% of the total bill incorporating all property classes 30 Budget Net Levy increase: 2.0% 1.0% Departmental Infrastructure Provision 1.1% Estimated Average Impact to Total Tax Billacross all property classes

39 31 Budget2018 ~ Budget Summam Residential - Average Residential home increased in value by 2.6% from $230,000 in 2017 to $236,000 in 2018 For City Estimated the home that increased by the average 2.6%, the estimated impact from the City General Levy will be a 1% increase to the total tax bill* Budget Impact: Estimated $34 to the Average Home Impact to Total Tax billfrom City, Region, Education combined 0.9% increase or $32* *Estimates only based on existing tax ratios to be?nalized by Region

40 New: $5.2 Million Projects Slated: $15.9 Million Budget2017 Recreation 7% Funding 2018 Levy: $700,000 Reserves: $2.29 M Water/Sewer: $775,000 DC : $650,000 Grants/Other: $ Internal : $18,000 32

41 33 Budget 2018 OfThOr0ld \~ Ten Year Capital Forecast - Known - $86.1 Million - Estimated total funding gap for City for ten years is $19.6 Million - Big ticket items: Road Fire Combined Arena New Rails Operations Urbanization - $9.1 Million Stations $7.7M Sewer Phase II-$6.6 M $2.35 M - Mausoleum $1.5 M - to Trails - $1.1 M Centre Phase 2/3 - $1 M

42 Debtlunfunded Capital 34 Budget2018 Q?$1.18 Dec 315*,2017 City Hall - Unfunded Cagital Internally financed/last Payment Outdoor Pool $1.75 Million (2027) Arena Expansion/Roof 2015 $139,000 (2023) Arena Works 2016 $543,000 (2027) - Arena Works 2017 $919,000 (2040) Streetlight LED $315,000 (2020) - City Hall : $271,000 (2025) Seniors Centre/8 Carleton $940,000 (2024) Energy Project $800,000 (2028) Parking Lots $207,000 (2023) -

43 Budget 2018 General Equipment - Major Purchases 2018 Aerial part of Capital Budget $1.3 Million - $400,000 Development charges - $880,500 General Equipment Replacement Rsv - $19,500 Levy Dump/Plow $235,000 - Replacement under funding is $226,000 per year - To mitigate replacement vehicles funded: 1 Balance Any year s useful life from levy fromreserves future large vehicle purchases can be debt financed, if required 35

44 36 Budget2018 Reserves Excluding Hydro & Water/Sewer I 2017 Year End Estimate I 2018 Budget

45 37 Budget 2018 Hydro Reserve - Projected Interest is $520,000 - Utilization proposed 2018: City Capital Capital Hall debt servicing $199,800 (to 2026) Asset Transportation $153,250 Asset General $153,250

46 - Items which may impact on the 2018 actual results: 38 Budget2018 City oft o1-old Risks & Opportunities 2018 Revenue & Expenditure Estimates Variances Winter Control & Utilities Emergencies New Grant Programs - Municipal Portion In Year Overruns - Crucial that these are limited to emergencies only.

47 39 Budget2018 PROCESS - Suggested Process: Operating Capital Budget Budget Deferrals - Items to be voted on as you go - Reconsideration of any item voted upon: - Occurs only once - Occurs only at the end of the budget process, immediately prior to final adoption of the budget. COUNCIL TARGET WAS MET

48 Questions Budget 2018