BAPJ E User Rate Supported Operating Budgets. The City of. Introduction

Transcription

1 Introduction The User-rate supported budget includes water, wastewater and parking services. For all three services, recently completed or ongoing capital works have a significant influence on each service's 2011 operating budget. Generally, these capital works have created, or will create, the service capacity necessary to respond to the City's growth needs. During 2010, work began on conducting a water and wastewater rate structure review with the objective of developing a water and wastewater rate structure that meets the goals and objectives established by City Council and a strategy that will enable the City to meet the full cost recovery requirements of the Sustainable Water and Sewage Systems Act and the Financial Plans Regulation (O.Reg. 453/07) under the Safe Drinking Water Act. The water and wastewater rate structure component of the review was completed in November and the Council approved structure changes have been incorporated into the 2010 Business Plan. The second component of the review establishing a full cost recovery six year financial plan was completed in June of The proposed rates reflect this work, however, it is anticipated that the plan will need to be updated in 2012 as the timing of the development of the plan was driven by legislative requirements. As such, key elements such as the capitalization of the SWTP and WPCC expansion were not included and work on the asset management plan and renewal requirements for water and wastewater services are still under development. BAPJ E 96

2 Water and wastewater budgets reflect the rate structure approved in 2009 that determines how charges will be billed to customers. The approved structure included a phase plan to reach the objective of the fixed rate component of the rate structure generating 34% of the water and wastewater revenue requirements by 2014 to bring Barrie's rate structure In line with other Ontario municipalities. For 2011, the fixed rates are being increased to move from the current contribution of 26% to 28%. The proposed new rates will be effective May 1, For a typical home that consumes 180 cubic meters annually, the annualized cost of water and wastewater services in 2011 are estimated to be $250 and $270 respectively for a combined cost of $519. This represents a 20% combined increase over 2010 levels of which $38 (18%) relates to water and $50 (23%) relates to wastewater. Barrie's average water and wastewater costs as a percentage of household income, based on the recommended increase is 0.6% (0.5% in 2010). This is well below the City's affordability target of 2.5% and it is also below the provincial average of 1.0%. For consistency, the water and wastewater user fees are now included in the Fees By-law. Parking operations are funded from user-pay revenues and the Parking Reserve. Although the objective is to have the parking operation be fully funded from operating revenues, in 2011 a draw from the Parking Reserve Fund of $1.4 million will be required to offset the net loss. An analysis is currently underway to assess the extent to which service can be self-sustaining. BAB8SIE 97

3 WastewaterRate Supported Operating Budget The revenues for the wastewater budget include a consumption rate and fixed service charge increases that will lead to increased wastewater charges for a typical household consuming 180 m3 of $270 which represents an annual increase of $50 (23%). The following table outlines the 2011 requested wastewater rate operating budget for the operation of the WPCC, the wastewater collection system, and the Oro Biosolids Storage Facility. Operations Department 2011 Base Budget Change Report Wastewater Rate Based Only Change in 2011 Change in 2011 Actual Approved Forecasted Base Program Requested Base Budget Requested Budget Expenditures Budget Expenditure Budget Change(s) Budget to 2010 Forecasted to 2010 Forecasted $ $ $ $ $ $ $ % $ % EXPENSES Salaries 2,244,153 2,755,615 2,628,388 3,111, ,124 3,222, ,371 18% 594,495 23% Fringe Benefits 420, , , ,780 27, , ,119 21% 130,365 27% Total Salary and Benefits 2,665,002 3,285,545 3,115,049 3,701, ,370 3,839, ,490 19% 724,860 23'Y OPERATING EXPENSES General Operations 6,556,634 7,678,124 7,618,902 7,875,842 5,500 7,881, ,940 3% 262,440 3% Minor Capital 4,658 4,000 4,000 (4,000) -100% (4,000) -100% Hydro, Water, Sewer, Gas 961,129 1,069,705 1,050,510 1,273,535 1,273, ,025 21% 223,025 21% Transfers to other Boards, Municipalities, Agencies Total Operating Expenses before Debenture 7,522,421 8,751,829 8,673,412 9,149,377 Costs and Transfers 5,500 9,154, ,965 5% 481,465 6",' DEBENTURE COSTS AND TRANSFERS Lease Equipment/Property 498, , ,844 3,981,179 46,303 4,027,482 3,359, % 3,405, % Financial Expenses 1,271,002 3,573,570 6,236,137 6,236,137 2,662,567 75% 2,662,567 75% Transfer to/from User Rate Reseiw Funds 3,878,093 2,941,978 1,707, ,622 (214,293) 407,329 (1,085,838) -64% (1,300,131) -76% Transfer to Reseiws 24,120 24,120 % 24, % Transfer to Capital Fund Total Debenture Costs and Transfers 4,376,373 4,819,013 5,902,874 10,838,938 (143,870) 10,695,068 4,936,064 84% 4,792,194 8W '3ross Expenditures 14,563,796 16,856,387 17,691,335 23,689,854 23,689,854 5,998,519 34% 5,998,519 34"/ Revenues Other Graemment Funding Contribution from Reseres/Reseiw Funds (10,775) (2,146,337) Licences, Permits, Application Fees (3,579,391) (3,579,391) (1,433,054) 67% (1,433,054) 67% Fines Fees, Charges, Ser4ce Rentals (14,530,174) (16,859,887) (15,486,522) (20,098,463) (20,098,463) (4,611,941) 30% (4,611,941) 30% Other Rraenue (22,847) 3,500 (58,476) (12,000) (12,000) 46,476-79% 46,476-79% Total Revenues (14,563,796) (16,856,387) (17,691,335) (23,689,854) (23,689,854) (5,998,519) 34% (5,998,519) 34/ Net Operating Expense/(Revenue) I - - BAPJ3SJ E 98

4 Key Drivers In 2011 the $100M expansion to the WPCC expansion and Oro biosolids storage facility wilt be completed and fully commissioned. The expansion will increase to capacity by 33%. The expansion was scheduled to be complete by June 2010 so the delayed commissioning of the expanded capacity resulted in operating cost savings during Salaries & Benefits - The 2011 base budget includes an increase of $416,000 compared to the 2010 approved budget and an increase of $586,000 from the 2010 forecast. The increase over the 2010 approved budget is due the annualized cost of three new positions in the 2010 budget, level increases as a result of 2010 positions re-evaluations, anticipated annual compensation and step increases, and overtime in the sanitary systems branch. The increase over 2010 forecast is due to delays in filling vacant positions, of which a significant number were filled by the end of the year. General Operations - Includes an increase of $197,000 compared to the 2010 approved budget and an increase of $257,000 from the 2010 forecast. The increase over the 2010 approved budget is due estimated chemical and contracted service increases as a result of both rate increases and expanded capacity increases. There is also a planned telephone communication upgrade to boosted intrinsically safe units for compliance with health and safety requirements. Savings in 2010 were a result of the delayed expansion commissioning and reduced access to the plant preventative maintenance due to the on-going construction. Utilities - Includes an increase of $204,000 compared to the 2010 approved budget and an increase of $223,000 from the 2010 forecast. The increase over the 2010 approved budget is due to estimated annual rate increases, significant facility expansions and increased flow levels. Lease Equipment/ Property - Includes an increase of $3.4 million compared to the 2010 approved budget and an increase of $3.4 million from the 2010 forecast. The 2011 budget is the first year that corporate overhead and direct support costs of $3.4 million are included within the user rate budgets as opposed to be being expensed directly to the wastewater reserve fund. This change in budgeting for all costs against the user rate budgets provides a more complete information regarding the cost of providing the wastewater service. Financial Expenses - Includes an increase of $5.0 million compared to the 2010 approved budget and an increase of $2.7 million from the 2010 forecast. The increase over the 2010 approved budget is due a full year of debt charges for the expansion of the wpcc. BARI34 E 99

5 Revenues Wastewater revenues for 2011 are projected to be $23.7 million, a 24.6% increase over 2010 levels. This includes $3.6 million from the Wastewater Development Charge reserve to partially offset debt financing costs related to the WPCP expansion, an increase of $1.1 million over The wastewater rate revenue for 2011 are projected to be $19.9 million, a 19% increase over 2010 levels. The rate revenue increase is based on a flatlined forecast in consumption levels and a 1.0% growth in connections over The table below indicates the wastewater rates for residential and non-residential (industrial, commercial and institutional) customers based on the new wastewater structure approved in 2009 including the phase in of the fixed charges to raise 31 % of the wastewater rate requirements. The increase relating to the fixed charge phase in represents 28% increase and the remaining increase represents the increased operating expenses and planned contributions to reserves for future asset renewal requirements. BARRI E 100

6 Residential Wastewater Rates 2011 Rates 2010 Rates Impact on Typical Household (180 m3) 2011 vs 2010 Monthly Consumption 0-15 cubic metres per m per m cubic metres per m per m3 > 45 cubic metres per m per m3 Fixed Charge by Service Size $50 23% l6tol9mm Non-Residential Wastewater Rates Monthly Consumption 2011 Rates 2010 Rates Impact on Consumption of 30,000 m3 and 75mm 2011 vs cubic metres per m per m3 >15 cubic metres per m per m3 Fixed Charge by Service Size l6tol9mm $ $ 7.12 mm 25 to 32 $ $ mm $ $ mm $ $ $4,583 13% 75mm $ $ mm $ $ mm $ $ mm $ $ mm $ 1, $ mm $ 1, $ BABJ34 E 101

7 Staff Complement There are 2 new positions requested in the 2011 operating budget to sustain the wastewater service levels OPERATING BUDGET - PERMANENT STAFF COMPLEMENT CONTINUITY (WASTEWATER USER RATE) Total Total Actuals Program Changes Impact Recommended Complement Approved Approved December 31, Vacant Total 2010 Division/Department Complement Complement 2010 Positions Base FT PPT Total FT PPT Total Wastewater BAR134E 102

8 Recommended Program Changes EMT reviews all program change proposals based on a common understanding of Council's strategic goals and the corporation's administrative requirements. Collaboratively, EMT creates a list of recommended program changes for Council's consideration that reflects its judgment about the corporation's most important unmet needs. The following chart summarizes the recommended program changes for Business cases for each program change are located in the Recommended Program Change section of the Business Plan. Recommended Program Changes - Wastewater Rate Based Position Description Operations Complement Impact Gross Costs 2011 Impact Funding Sources Net Impact Annualized Cost Director of Operations - Addition of 1.0 FTE to formally - 96,895 87,205 9,690 16,520 Roads & Parks and restructure the responsibilities of Fleet Services the Operations Department into two departments Roads & Parks Addition of 1.0 FTE to provide - 53,657 43,998 9,659 Operations - CMMS ongoing functions to assist with Coordinator improving the automation of business processes and to develop preventative maintenance programs that will assist with controlling escalating maintenance costs as a result of aging infrastructure_and_planned_growth Maintenance Operator Addition of 1.0 FTE to maintain 1 II BARRI E 73,185-73,185 13,657 97,580 service levels at all facilities and continue to ensure compliance with all C of A's and other relevant legislation as a result of the additional requirements for the expanded_facilities 103

9 Recommended Program Changes - Wastewater Rate Based 2011 Impact Complement Gross Fundn Net Annualized Position Description Impact Costs Sources Impact Cost Operator Class II - Addition of 1.0 FTE to increase staff 1 70,685-70,685 94,247 WPCC resources to maintain service levels at all facilities and to continue to ensure compliance with all CofAs and other relevant legislation Mechanical Operator, Implement Phase 2 of the staff Custodian complement for the Environmental - 124,866 89,374 35,492 28,196 will provide an additional staff member on site at the SWTP and the mechanical operator is to provide assistance at both the WPCC and Environmental Centre facilities. The Custodial position Information, Communications and Technology Public Safety Addition of 2.0 FTE to ensure there Coordinators (2) is constant 24/7 on-call staff to - 122, ,929 15,583 18,210 provide a single point of contact for public safety communications infrastructure outages and to have Total in-house_expertise_resources 2 541, , , ,410 BAPJ3J E 104

10 Non Recommended Program Changes The listing below summarized the program changes with a gross cost ot $275,000 and $227,000 after recovers from other user rates and revenues that staff considered but did not recommend as they did not meet the criteria established by EMT to prioritize program changes in Non-Recommended Program Changes - Wastewater Rate Based Complement Gross Net Position Description Impact Costs (Revenues) Cost Office Coordinator 1 Addition of 1.0 FTE to provide administrative - 53,291 47,962 5,329 support and managerial responsibilities to the proposed restructured department of Roads, Parks and Fleet Services Chemical and Materials Addition of 1.0 FTE to ensure the effective and Support Coordinator efficient storage and handling of chemicals and 1 73,285-73,285 materials associated with WPCC Contract Coordinator Addition of 1.0 FTE to be responsible for contractor relationship development, 1 70,535-70,535 management and coordination of contract administration at the WPCC Operations Project Addition of 1.0 FTE to create a permanent full- Coordinator - Wastewater time position to continue and to further develop 1 77,801-77,801 reporting requirements are maintained with programs to ensure all conditions, licences and current and changing legislation. This work is currently being performed by a temporary employee Total BARRI E 3 274,912 47, ,

11 Water Rate Supported Operating Budget The 2011 Business Plan reflects costs associated with delivering safe drinking water to the community in a very different manner. Since Barrie's initial development and its first project to provide a piped communal water supply, it has been fortunate to take advantage of an abundant supply of excellent quality ground (well) water in close proximity to service demands. The deep confined supply aquifers have provided abundant high quality source water requiring only minimal treatment processes to fully meet the standards necessary to provide fully potable drinking water to the city's consumers. This has resulted in relatively low production costs and associated water rates up until this juncture in time. The supply of ground water does have its sustainable quantity limits as recognized in the 1990's while planning to meet the demands of a rapidly expanding urban centre with a large potential for continued growth. The existing wells which have long provided the sole supply source for Barrie are fully expected to continue to produce a sustainable supply, however, as predicted the limit of their ability to sustain increased demand due to urban growth has been reached. Additional growth was recognized to require a second source to augment the ground water resources and accommodate growth and expansion well into the future. Knowing this, the City has been advancing the SWTP project over the last several years which extracts raw water from Kempenfelt Bay and treats it to fully potable drinking water quality. The SWTP will be fully commissioned in the second quarter of 2011 and will provide a supply that together with the city's well system will effectively meet the increasing demands of the city for a considerable time. The plant has been designed and built to be easily expandable as future requirements may dictate. The transformation from solely high quality easily treatable Ground Water Supply (GWS) to a combined raw water source now including Surface Water, with additional treatment regulations, represents a considerable additional obligation to the city requiring significant additional manpower and ancillary treatment costs. An additional layer of cost components due to ongoing additional and changing legislated regulations relative to drinking water systems' licensure has also increased the effort and associated costs of providing drinking water in Ontario. The overall cost of supplying treated drinking water for the City of Barrie has, thus, increased accordingly, all of which has been reflected and accounted for in operational budgeting, usage rate projections and accompanying rate increase recommendations. BARRI E 106

12 The revenues for the water budget include a consumption rate and fixed service charge increases that will lead to increased wastewater charges for a typical household consuming 180 m3 of $250 which represents an annual increase of $38 (18%). The following table outlines the 2011 requested water rate operating budget to provide safe drinking water to the community. Operations Department 2011 Base Budget Change Report Water Rate Based Only Changein2oll Changein2Oll Actual Approved Forecasted Base Program Requested Base Budget Requested Budget ExpendItures Budget Expenditure Budget Change(s) Budget to 2010 Forecasted to 2010 Forecasted $ $ $ $ $ $ $ % $ % EXPENSES Salaries 2,854,456 3,990,341 3,547,862 4,582,487 4,582,487 1,034,625 29% 1,034,625 29% Fr1nge Benefits 531, , , , , ,933 23% 157,933 23% Total Salary and Benefits 3, ,800,377 4,234,892 OPERATING EXPENSES 5,427,450 5,427,450 1,192,558 28% 1,192, ' General Operations 2,417,137 3,041,152 2,575,878 3,342,191 3,342, ,313 30% 766,313 30% MinorCapital 85, , , , , , % 241, % Hydro, Water, Sewer, Gas 1,020,837 1,767,100 1,533,452 3, ,322,760 1,789, % 1,789, % Transfers to other Boards, Municipalities, Agencies Total Operating Expenses before Debenture 3,523,195 4,910,252 4,209,852 7,007, ,351 2,797,499 66% 2,797,499 66% Costs and Transfers DEBEN1URE COSTS AND TRANSFERS Lease Equipment/Property 355, , ,056 4,436,646 86,336 4,522,982 3,935, % 4,021, % Financial Expenses 32 2,354, ,625,481 3,625,481 3,624, % 3,624, % Transfer to/from User Rate Reseow Funds 8,859,666 4,876,749 7,680, ,600 (123,186) 745,414 (6,811,595) -89% (6,934,781) -90% Transfer to Reser,ws 36,850 36,850 % 36, % Transfer to Capital Fund Total Debenture Costs and Transfers 9,215,123 7,723,452 8,182,019 8,930,727 8,930, ,708 95' 748,708 9! Gross Expenditures 16,123,899 17,434,081 16,626,763 21,365,528 21,365,528 4,738,765 29% 4,738,765 29! Revenues Other Gosemment Funding Contribution from Reseres/Reserse Funds (8,896) (697) (1,594,903) (1,594,903) (1594,206) % (1,594,206) % Licences, Permits, Application Fees Fines Fees, Charges, 5er.ce Rentals (16,071,954) (17,437,580) (16,605,429) (19,740,624) (19,740,624) (3,135,195) 19% (3,135,195) 19% Other tresenue (43,049) 3,500 (20,637) (30,000) (30,000) (9,363) 45% (9,363) 45% Total Revenues (16,123,8991 (17,434,080) (16,626,763 (21,365,527 (21,365,527) (4,738,764) 29% (4, ) 29% Net Operating Expense/(Revenue) BARRI E 107

13 Key Drivers Salaries & Benefits - The 2011 base budget includes an increase of $627,000 compared to the 2010 approved budget and an increase of $1.2 million from the 2010 forecast. The increase over the 2010 approved budget s due to the annualized cost of thirteen new positions in the 2010 budget, level increases as a result of 2010 positions re-evaluations, anticipated annual compensation and step increases, and overtime due to a number of large initiatives planned in 2011 including the commissioning of the SWTP commission, the staff move to the SWTP, the automated meter infrastructure/billing project and the management of the CMMS inventory system. The increase over 2010 forecast is due to delays in filling vacant positions, of which a significant number were filled by the end of the year. General Operations - Includes an increase of $301,000 compared to the 2010 approved budget and an increase of $766,000 from the 2010 forecast. The primary driver of the increase in the 2011 budget is the increased chemical costs associated with the SWTP. The increase over the 2010 forecast is due to the delay in opening the SWTP ($614,000) and savings in snow removal around hydrants due to a mild winter. Minor Capital - Includes an increase of $240,000 compared to the 2010 approved budget and an increase of $242,000 from the 2010 forecast. The increase over the 2010 approved budget is due to the need to upgrade SCADA controller units in 22 stations due to the radio communication upgrade and the purchase of equipment to support operations. Utilities - Includes an increase of $1.6 million compared to the 2010 approved budget and an increase of $1.8 million from the 2010 forecast. The increase over the 2010 approved budget is due to a full year of planned operations at the SWTP ($1,993,560 for hydro and $300,000 for gas). The increase over the 2010 forecast is due to the delay in partial commissioning of the SWTP in 2010 as planned. Lease Equipment / Property - Includes an increase of $3.9 million compared to the 2010 approved budget and an increase of $3.9 million from the 2010 forecast. The 2011 budget is the first year that corporate overhead and direct support costs are included within the user rate budgets as opposed to be being expensed directly to the water reserve fund. This change in budgeting for all costs against the user rate budgets provides a more complete information regarding the cost of providing the wastewater service. The other driver of the 2011 budget increase is the $481,000 in additional facility maintenance costs as a result of moving from the Operations Center to the SWTP. At the Operations Center the costs were shared with other users of the facility. Financial Expenses - Includes an increase of $1.3 million compared to the 2010 approved budget and an increase of $3.6 million from the 2010 forecast. The increase over the 2010 approved budget and forecast is due to the delay in issuing debt for the SWTP from 2010 to BAPJ3SJ E 108

14 Revenues Water revenues for 2011 are projected to be $21.4 million, a 29% increase over 2010 levels. This includes $1.6 million from the Water Development Charge reserve to partially offset debt financing charges related to the SWTP. Water rate revenue is projected to be $19.4 million in 2011 or 13% higher than 2010 levels. This is based on a flatlined forecast in consumption levels and a 1.0% growth in connections over the 2010 forecast. The table below indicates the water rates for residential and non-residential (industrial, commercial and institutional) customers based on the new water structure approved in 2009 including the phase in of the fixed charges to raise 28% of the water rate requirements. The increase relating to the fixed charge phase in represents 25% increase and the remaining increase represents the increased operating expenses and planned contributions to reserves for future asset renewal requirements. The city of BAIRJ3SI E 109

15 Residential Water Rates 2011 Rates 2010 Rates Impact on Typical Household (180 m3) 2011 vs 2010 Monthly Consumption 0-15 cubic metres per m per m cubic metres per m per m cubic metres per m per m3 $38 18% > 45 cubic metres per m per m3 Fixed Charge by Service Size 16 to 19mm Non-Residential Water Rates Monthly Consumption 2011 Rates 2010 Rates Impact on Consumption of 30,000 m3 and 75mm 2011 vs cubic metres per m per m3 >15 cubic metres perm per m3 Fixed Charge by Service Size 16 to 19mm to 32 mm mm mm $2,438 7% 75mm mm mm mm mm 1, mm 1, BAP&E 110

16 Staff Complement The current staff complement in the Water Operations Branch is 56 and there are no new positions recommended OPERATING BUDGET - PERMANENT STAFF COMPLEMENT CONTINUITY (WATER USER RATE) Total Total Actuals Program Changes Impact Recommended Complement Approved Approved December31, Vacant Total 2010 Division/Department Complement Complement 2010 Positions Base FT PPT Total FT PPT Total Water Recommended Program Changes EMT reviews all program change proposals based on a common understanding of Council's strategic goals and the corporation's administrative requirements. Collaboratively, EMT creates a list of recommended program changes for Council's consideration that reflects its judgment about the corporation's most important unmet needs. While there are no new positions recommended there are positions that have a financial impact on the Parking rate fund. These are summarized below. Recommend Program Changes - Water Rate Based 2011 Impact Complement Gross User Fees Net Position Description Impact Costs and Other Impact Impact Information, Communications and Technology Annualized Public Safety Addition of 2.0 FTE to ensure Coordinators (2) there is constant 24/7 on-call staff - 122,512 79,827 42,685 49,880 contact for public safety communications infrastructure outages and to have in-house to provide a single point of expertise_resources BikPi3J E

17 Leisure, Transit and Facilities MechanicaF Operator, Implement Phase 2 of the staff I - Custodian complement for the Environmental facilities. The Custodial position will provide an additional staff member on site at the SWTP and the mechanical operator is to provide assistance at both the WPCC and Environmental_Centre Total 124,866 44,365 80,501 63, , , ,186 The city of BAPJ3SJ E 112

18 Non Recommended Program Changes The listing below summarized the program changes with a $377,000 that staff considered but did not recommend as they did not meet the criteria established by EMT to prioritize program changes in Non-Recommended Program Changes - Water Rate Based Complement Gross Net Position Description Impact Costs (Revenues) Cost Chemical and Materials Addition of 1.0 FTE to ensure the effective 1 64,497-64,497 Support Coordinator coordination of chemicals and materials for the continual operation of water facilities without interruption to the compliance requirements and to assist in the development and management of contingency plans 2 Water Distribution Addition of 3.0 FTE to ensure infrastructure Operations (1 Operator II maintenance is maintained and to minimize 3 185, ,151 and 1 Operator IV), 1 Water infrastructure repairs during emergency shut- Utilities Program Clerk downs which will result in the minimization of service delays to customers Operations Project Addition of 1.0 temporary employee to maintain Coordinator (Temporary) the workload associated with Compliance and - 71,301-71,301 Conformance due to the temporary transfer. Waterworks Operator Addition of 1.0 FTE to replace the current field operator to assist with the field work associated 1 55,857-55,857 with system optimization Total 5 376, ,806 BARJE 113

19 Parking Rate Supported Operating Budget The following table outlines the 2011 requested operating budget for parking services. Operations Department 2011 Base Budget Change Report Parking Rate Based Only Change in 2011 Change in 2011 Actual Approved Forecasted Base Program Requested Base Budget Requested Budget Expenditures Budget Expenditure Budget Change(s) Budget to 2010 Forecasted to 2010 Forecasted $ $ $ $ $ $ $ - % EXPENSES $ % Salaries 192, , , , ,744 46,641 23% 46,641 23% Fringe Benelits 37,819 39,931 42,644 51,855 51,855 9,211 22% 9,211 22% Total Salary and Benefits 230, , , , ,599 55, ' 55,852 23/ OPERATING EXPENSES General Operations 307, , , , ,697 62,119 24% 62,119 24% Minor Capital Hydro, Water, Sewer, Gas 42,972 51,400 61,118 67,400 67,400 6,282 10% 6,282 10% Transfers to other Boards, Municipalities, Agencies Total Operating Expenses before Debenture 350, , , , ,097 68,401 21% 68,401 2W Costs and Transfers DEBENTURE COSTS AND TRANSFERS Lease Equipment/Property 5,564 17,011 20, ,563 16, , , % 282, % Financial Expenses 233, , , , ,776 (27) % (27) % Transfer to/from User Rate Reseiw Funds 500,637 (352,215) (258,075) (638,586) (16,665) (655,251) (380,511) 147% (397,176) 154% Transfer to Reserws Transfer to Capital Fund Total Debenture Costs and Transfers 740, , , , ,753 (114,248) -16'>' (114,248) -16% Gross Expenditures 1,321,056 1,311,500 1,299,444 1,309,449 1,309,449 10,005 1% 10,005 1 / Revenues Other Gmernment Funding Contribution from Reseres/Reser Funds Licences, Permits, Application Fees (299,649) (311,500) (287,554) (293,700) (293,700) (6,146) 2% (6,146) 2% Fines Fees, Charges, Serdce Rentals (1,021,406) (1,000,000) (1,011,889) (1,015,750) (1,015,750) (3,861) % (3,861) Other Renue Total Revenues (1,321,055) (1,311,500) (1,299,443) (1,309,450k (1,309,450) (10,007) 1'>' (10,007) Net Operating Expensel(Revenue) BAPJ3J E 114

20 Key Drivers Salaries & Benefits - The 2011 base budget includes an increase of $72,000 compared to the 2010 approved budget and an increase of $56,000 from the 2010 forecast. The increase over the 2010 approved budget is due to anticipated annual compensation and step increases, the addition of one 4 month co-op student and the cost of 0.5 FTE from Traffic Operations for in-house staff plowing of parking lots that was not captured in the Parking budget previously. The co-op student is planned for the fall term to address resource constraints in Parking and Traffic for basic maintenance of meters, parking lots, coin collection and on-going planned process improvements. General Operations - Includes a decrease of $75,000 compared to the 2010 approved budget and an increase of $62,000 from the 2010 forecast. The decrease from the 2010 approved budget is due to a thorough review of costs in a continued effort to reduce the impact on the parking reserve. In 2011 the budget was reduced for general expenses such as coin rolling, postage, grounds maintenance, sand/gravel and security contracts. Utilities - Includes an increase of $16,000 compared to the 2010 approved budget and an increase of $6,000 from the 2010 forecast. The increase over the 2010 approved budget is due to an increased hydro rates over Lease Equipment / Property - Includes an increase of $269,000 compared to the 2010 approved budget and an increase of $266,000 from the 2010 forecast. The 2011 budget is the first year that corporate overhead and direct support costs are included within the user rate budgets as opposed to be being expensed directly to the parking reserve fund. This change in budgeting for all costs against the user rate budgets provides a more complete information regarding the cost of providing the wastewater service. Financial Expenses - Includes an increase of $2,000 compared to the 2010 approved budget and a decrease of $27 from the 2010 forecast. The increase over the 2010 approved budget is due an increase in the credit card usage and corresponding fees for the Collier Street Parkade. Transfer from Parking Reserve Fund - Includes an increase of $286,000 compared to the 2010 approved budget and an increase of $382,000 from the 2010 forecast. The increase over the 2010 approved budget is due to the inclusion of the corporate overhead and direct support costs now included in the parking operations budget. This amount was expensed directly from the reserve fund in prior years. The additional increase over the forecast is due to savings in snow removal and maintenance due to the mild winter in early BARJ3SJ E 115

21 Revenues In 2011 the municipal parking system is currently anticipated to generate annual revenues of $1.3 million with operating expenses of approximately $982,049 excluding debt. It is projected that at the end of 2011, the parking reserve fund will have a balance of $916,000. The further reduction of the parking reserve is a result of insufficient parking meter and permit revenue to cover the Collier Street Parkade debenture costs and the capital funding requirements planned for Parking fees have remained unchanged since January 1, 2008 as follows: on-street parking at $1.00 per hour, off-street parking fees at $0.75 per hours, max. $5.50 per day, the maximum monthly rate at $70 in the Collier Street Parkade, Mulcaster Street, Simcoe Street East and 1-15 Bayfield, and the $55 monthly rate applies to all other off street parking lots. There are no parking rate increases proposed for In September 2010 an internal working group was assembled to review the 2011 Parking budget challenges (short-term), to make recommendations on the Parking rate structure to ensure mid-term sustainability and make recommendations on Parking policies and procedures to support long term sustainability. There was not sufficient time to make changes to the revenue in 2011, with the exception of the recommendation to eliminate free December parking at the Collier Street Parkade in 2011, which has been included in the 2011 budget. Staff Complement There are currently 4 staff complement in the Parking and Transit Maintenance section of the Roads and Parks Operations Branch and there are no new positions recommended OPERATING BUDGET - PERMANENT STAFF COMPLEMENT CONTINUITY (PARKING USER RATE) Total Total Actuals Approved Approved December31, Vacant Total 2010 Division/Department Complement Complement 2010 Positions Base Program Changes Impact Recommended Complement FT PPT Total FT PPT Total Parking BAP& E 116

22 Recommended Program Changes EMT reviews all program change proposals based on a common understanding of CouncWs strategic goals and the corporation's administrative requirements. Collaboratively, EMT creates a list of recommended program changes for Council's consideration that reflects its judgment about the corporation's most important unmet needs. While there are no new positions recommended there are positions that have a financial impact on the Parking rate fund. These are summarized below. Recommended Program Changes - Parking Rate Based 2011 Impact Operations Complement Gross Position Description Impact Costs Other. Funding Sources Net Impact Annualized Cost Director of Operations - Addition of 1.0 FTE to formally - 96,895 87,205 9,690 16,520 Roads & Parks and restructure the responsibilities of Fleet Services the Operations Department into two departments Roads & Parks Addition of 1.0 FTE to provide - 53,657 46,681 6,976 9,864 Operations - CMMS ongoing functions to assist with Coordinator improving the automation of business processes and to develop preventative maintenance programs that will assist with controlling escalating maintenance costs as a result of aging infrastructure and planned growth Total - 150, ,886 16,666 The city of BAPJ3SJ E 117

23 Non Recommended Program Changes The listing below summarized the program changes with a gross cost of $108,095 and $10,809 after recovers from other user rates and revenues that staff considered but did not recommend as they did not meet the criteria established by EMT to prioritize program changes in Non-Recommended Program Changes - Parking Rate Based Complement Gross Net Position Description Impact Costs (Revenues) Cost Office Coordinator 1 Addition of 1.0 FTE to provide administrative support and managerial responsibilities to the - 53,291 47,962 5,329 proposed restructured department of Roads, Parks and Fleet Services Traffic Operations Addition of 1.0 FTE to undertake additional Foreperson operational activities and administer contracts - 54,804 49,324 5,480 the increasing numbers and complexity of the assets associated with traffic assets and to maintain Total - 108,095 97,286 10,809 BABJ34 E 118