2019 EXECUTIVE SUMMARY / 1

Transcription

1 I VI Introduction he 2019 Business lan outlines how the ity of plans to allocate resources to deliver the programs and services residents and businesses rely on every day It is developed using a service-based approach that relates labour, materials and other costs to the programs and services they support Budget changes are driven by: increased costs to maintain existing service levels, legislative changes, or increased service levels due to service enhancements or the addition of a new service he ity of is committed to providing a vast array of services and programs to build and support a prosperous, growing and sustainable community he key front line services our orporation delivers impact the daily lives of people working and living in our community hese include police, fire, transit, recreation and cultural events, parks and operations, roads, snow removal, garbage collection, drinking water and wastewater he cost to provide these services while maintaining our aging infrastructure is becoming increasingly difficult his puts pressure on the property tax base et, only 9 cents of every tax dollar collected in anada goes towards these important municipal services In order to address the ity s current financial realities, decisions will need to be made that impact services and service levels now and in the future he ity is continuing to lay the foundation for a financially sustainable and responsible plan that addresses the needs of residents and business owners within the community lements of s Budget perating budget (tax-rate) is for ongoing programs and services that are funded primarily through a combination of property taxes, user fees and reserves and can be delivered by the ity of or by one of the ity s service partners (ie roads operations, parks and forestry, and olice) perating budget (user-rate) is for ongoing programs and services funded primarily through reserve funds and user fees intended to make the programs and services self-sustaining he ity currently has three user-rate-based operating budgets: water, wastewater and parking apital budget is for projects designed to create, enhance or restore the ity s significant network of assets, including infrastructure (roads, bridges, buildings etc), land, equipment and vehicles he capital budget is funded from a combination of property taxes, development charges debt issuance, grants, user rates and reserves ow the lan Is Built he Business lan reflects budget directions that were approved by ity ouncil in ay 2018 hese directions guide the Business lan and Budget building processes; ensure financial plans are built efficiently to demonstrate a clear relationship between costs and service levels; and, recognize that the ity faces many pressures through the development process osts to deliver ongoing programs and services at their current levels are increasing imilar to a household, the rising costs of utilities, materials, supplies, and labour impact the ity s budget he ity is in a high-growth period and has begun establishing the financial foundation to manage costs driven by our current and anticipated growth while continuing to maintain current service levels and existing infrastructure, and to ensure long term fiscal sustainability s Business lan makes strides to balance these cost pressures within the limited funding options that every municipality has at its disposal he ity looks for achievable efficiencies and process improvements that increase cost-savings in order to minimize increases in property taxes and user fees his document includes detailed performance plans which set out: services provided by each department, division or strategic portfolio, major objectives and performance measures, and detailed cost information his overview focuses on providing ouncil and the public with an explanation of the major drivers contributing to the recommended 2019 Budget 2019 U U / 1

2 2019 xecutive anagement oals he 2019 Business lan and Budget includes comprehensive plans to address key corporate goals hese have been organized under each of the four main headings eneral anagement, trategic Focus, rganizational ulture, and ervice elivery etailed key performance indicators for each of these goals are found in the lead division or strategic portfolio sections eneral anagement o direct and coordinate the general management and operations of the orporation in accordance with by-laws, policies and plans adopted by ity ouncil to ensure delivery of the highest quality services at the best value for the citizens and businesses of by: educing the risk of harm or loss of life by providing timely Fire and mergency services and Building ode review and enforcement roviding inclusive recreation facilities and programming that meets community needs and ensures all residents have the opportunity to participate Informing and encouraging individual compliance with and enforcing community standards through the administration and enforcement of municipal by-laws and licensing roviding for the balanced growth and development of the ity through clear, comprehensive and sound implementation of land use planning policies and principles, and servicing strategies, in a financially responsible manner aintaining, protecting and enhancing neighbourhoods through the application of zoning and land development standards anaging the ity s valuable portfolio of facility and property assets through comprehensive facility asset management and maintenance strategies that contain costs while preserving the ity s assets to maintain service levels for ity programs delivered through ity facilities trategically managing the ity s corporate assets to minimize replacement costs over the long-term and to close the infrastructure deficit gap xecuting the delivery of the apital lan to achieve best value for the community roviding open and transparent communication to the public and staff on the decision making process associated with ouncil and ommittee meetings elivering advice, policy support and administrative services to ity ouncil and the orporation for legislative, financial and facility management services trengthening Financial anagement through the ong ange Financial lan and increased automation of financial data to support accurate and timely reporting eveloping and maintaining financial policies and plans that support ouncil s strategic priorities perating and maintaining municipal infrastructure, meet service levels and ensure regulatory compliance while striving for service improvements and operating efficiencies for all service functions 2019 U U / 2

3 trategic Focus o set the strategic focus of the organization that is aligned with ouncil s strategies and priorities by: Implementing a performance measurement framework that enhances accountability and transparency Increasing corporate accountability, communications, collaboration and continuous improvement upporting initiatives to diversify the local economy including developing an open for business culture and fostering effective partnerships ositioning as a premiere destination for business investment in ntario eveloping innovative communication and advertising strategies to build effective relationships internally and externally, to address public relations and marketing needs and to identify and encourage opportunities for proactive and positive media coverage verseeing the development in the econdary lan areas xtending the life of the landfill through enhanced waste diversion programs rganizational ulture o build a positive and passionate organizational culture that is customer focused by: nhancing ustomer ervice access options across multiple channels including counter, phone, and online opportunities eveloping an energetic and inspiring leadership group along with attracting and retaining top talent roviding oversight of processes and initiatives leading to ultural hange across the orporation with a focus on leadership, customer service, accountability, collaboration, innovation, communications and continuous improvement roviding leadership and support on process improvement initiatives while building the capacity and capability in the organization through training Fostering an organizational culture that embraces corporate communications as a priority to ensure proactive and meaningful communications with the community as well as within the orporation nhancing an inter-connected community through comprehensive transportation planning, including access to and across ighway 400 roviding a public transportation system that is a viable alternative to the automobile 2019 U U / 3

4 ervice elivery o strengthen organizational capacity to more efficiently deliver service through the introduction of new tools (technology), process improvements and innovations in service delivery by: irecting and coordinating the operations of the orporation in accordance with by-laws, policies and plans adopted by ity ouncil to ensure delivery of the highest quality services at the best value for the citizens and businesses of the ity of ontinuing to lead the organization through project and change management initiatives for the nterprise esource lanning () implementation and future sustainment, the building permit application implementation, customer relationship management and computerized maintenance management implementations focused on delivering transformational business capabilities in areas including financial systems, human resources, reporting, master data management, permit application and processing, work order and asset management, facility management and space planning rganized for uccess is comprised of the heads of all ity ivisions and trategic ortfolios: hief dministrative fficer, eneral anagers of Infrastructure & rowth anagement, and ommunity & orporate ; xecutive irectors of Innovate, Invest and ccess ; and the irector of egal s mission is to build a customer-focused organization responsive to the community where all staff understand and embrace their fundamental role as one team providing services and programs to build and support a prosperous, growing and sustainable community Internal udit ayor & ouncil hief dministrative fficer egal nhancing network, computing and mobility environments to meet existing and new business requirements Infrastructure & rowth anagement IVII ommunity & orporate Innovate I I ccess Invest ngineering nvironmental lanning & Building oads, arks & Fleet BF Facilities Finance egislative & ourt ecreation entre for ontinuous Improvement uman esources Information echnology arketing & ommunications ervice ransit & arking Business evelopment reative conomy dvisory/eference ommittees ouncil members, citizens & staff 2019 U U / 4

5 ity of ard ap o 93 U I B B I B B J J J JFF I II I I I V U VV IB Q J Q UI BI UI JI' VI I I I I U B I U U J ' Z U I U J B VI I QU I U I J B I I I V I I I U I QU IZB I BV U I I U V B BI B V V I I B V J U B B I I VI IFI V U Q I I U F QUI U IV V V I B I U I U U I VI I IV I B V BV I F I V U 400 I B I U I I I U V c U II I cu V I I U B I VI I I U F U U I V V BV I I ' FI I ' U B F IV I U 7 IV I I BI I U I I IV VI BVI I I IFF U U IV V U BI 10 BV U V I VI IV I VI U I I BI VI ' U I J I I II I I 20 I IV V VU V U V V IV VI U I ' V I B I I U I U BI I JI V I U JI JUBI I U IV U 9 IV IV I I I I BVI U I I BJ V U I I I U VU I U I IV U I U I IV V I F I I IV I I V I I Q I IV U U V I I U I F IV ' I I U I I V I V BI ' I I I BI B QU F IV I U IV I BI B I BI J I I I U IV U I I J I U F B V U ' V ' BVI U I U B B ' I U V I BI V I F I I I U B VVI QU U I I I U I B U I F I I c BV I FI IV IV VI IV I V I U B V V IIU V BVI B IV U V I B B IF U BI VI I B I I BV ' V o 27 I B I U F U U V I BI BI B I I I I B BV I B U BI I I IV I I I I I ' U B QU V I U F VU I U I IV V U II I I I VI U BB I IV I I U IV V IV B VI B UB F U 8 U I VI U V IV U V I BI U I B I B F U I BI I I U I IV UB V B IV U BV B V I U I I U V I I VU FIZ J U U UI I BI I B I U U B U cuu ' V V I BI F I I I BI BVI II I V U U 'U ' 'U I o 27 IV B U IFF U I BV V I U U c U I J I U I' I IIFI V BIBB V U I I I B I VU I VI I I BV I IF I B F U I V B' FI U UVI IB U I VI Q VI U I U B U V IFF U I I I I I UI V I V I I I V F IV F I B I U B U U V IF I U F I FI B U U IIFI I F I U I I B ci VU B F V I B I FI FI I I VI B B IV I B QUI I I I UB FI F F I U I I I I I ci V B I ' BI I I Z U I U F 0 I IF B U I BI I V B IV B V F Z Z VI J J B U IV UBB 40 IZB U ' I B U B F o 27 I Z U B U U F F I I II I U I U F I IV I I I B V F I VU J 6 I U U V U I IV J I U V I I F U I VI IV BI I I U B 90 U B I FI U U I I IFFI F I B c I V I IZI II VU B J U U B I FFI IFFI U I V o I U V U U VI J I B I BV U F J IFFI J B UB U VU I F BI J U I I U UB I I I V BV VI U I FF U I B I I VI QU QU V cui I UBI II F QUI U I QUI UBI BI 1 I VII V V, I I J J I V U U V c J I B BI VI I I VU I U BI UBI I F U U I V I U U V I I U a I I I I U I I IV I J VI I I I U I F I I I U I I FI B I I IB J I I B U B I U U I I I V U U V I VI I U V I F BI I I I I I V VI FF U I II II F B 2 U I U ' V I QU I I I B V I I I IV I I I B 400 BV BI I I I I U U I I IB c U F ' I I U IV I F FF F U BV 5 U U BI I FIZ I B I B B I V U B V I B U I I I I F ' I I I V U U BV I I c I F U VI I I V I F U I U B I U FU I IV F U I Z V I I F I U UI I ity of ard ap V U I B I J I IV I I IV I IV II I U 4 I c FI B FI I V I IV V Z I I V I VI I Z J I I 3 V I I V U I VI 26 U IQ J I IU o U U / 5 BI I I

6 Financial ummary he ity faces many pressures in developing a fiscally responsible budget o understand how these various pressures impact the recommended business plan and budget, ity staff have used a building block approach considering the costs of maintaining ity operations, new investment and service recommendations, service partners, debt and reserve management he following summarizes the recommended Business lan and Budget ouncil direction outlined a maximum 2019 tax rate increase of 2% excluding legislated changes and the 1% levy for the edicated Infrastructure enewal Fund he recommended operating budget requires a 330% tax rate increase resulting in an increase of $141 to the property tax bill for a typical home he following are major drivers of the tax rate increase: osts to maintain ity services increased by $6 million, attributable to increases in abour, ontracted, and Fuel ome of these costs increases have been offset by recoveries from existing reserves and increases in user fee revenues he net impact to the tax levy is 052% or $13 million ew investments and service recommendations, including legislative requirements, amount to $25 million ome of these costs are recovered from capital projects, user rate budgets and reserves he overall net impact to the tax levy is $11 million or 043% ervice artners proposed budget increased by $38 million to a total of $86 million he ounty of imcoe has an increase of $19 million, olice Board $14 million, and the ibrary Board $499 thousand hese new debt servicing costs will be funded $800 thousand from evelopment harges and $2 million from the tax levy with an impact of 08% In maintaining the financial health of the ity, the 2019 proposed budget includes the annual 1% edicated Infrastructure enewal Fund contribution of $25 million to support renewal needs of the ity s $38 billion of infrastructure assets he proposed user rate budget for water will require a 344% rate increase resulting in an increase of $11 to the water bill for a typical home he proposed user rate budget for wastewater will require a 339% rate increase resulting in an increase of $16 to the wastewater bill for a typical home Building Blocks of the ax ate Increase 330% edicated Infrastructure enewal Fund eserve management ebt management 100% 022% 080% eserve contributions increased by a total of $547 thousand or 022% on the tax levy hese increases are needed to adequately fund the ity s reserves including the orkplace afety Insurance Board (IB) reserve and the election reserve s previously planned, new debt financing costs totaling $28 million are required in 2019 to fund the ity apital plan, including the -imcoe mergency campus and the arvie road highway 400 crossing ervice artners Investment & ervice ecommendations (legislated) Investment & ervice ecommendations aintain service levels for current ity operations ealized ssessment rowth 153% 008% 035% 052% (-120%) 2019 U U / 6

7 apital lan he ity acquires, operates, maintains and renews assets to support the delivery of services to residents, businesses, partner agencies and visitors oads, rail lines, bridges and sidewalks provide transportation networks to move goods and people, while water\mains and treatment infrastructure ensure safe drinking water is available ecreation centres and playgrounds are community gathering places where people learn, play, stay healthy and interact with one another Fire trucks and snow ploughs are required to support emergency services and keep our city safe and accessible all year long In total, the assets owned by the ity amount to an estimated replacement value in excess of $38 billion he ity uses a risk-based approach to capital planning that prioritizes and balances the ity s needs in a sustainable manner he need to build and acquire new infrastructure to service development is ongoing, while the ity must maintain, renew, rehabilitate and replace existing aging assets, particularly roads, facilities, sanitary/storm water drainage systems, fleet, and water supply and treatment systems o ensure that the ity manages its existing and future assets responsibly and is able to financially support future development, the application of leading asset management practices was a foundational element in the preparation of the apital lan he following is a high level overview of previously approved and new requests associated with the 2019 to 2021 apital lan projects: he 2019 recommended capital plan, includes new funding requests of $120 million to be spent over three years In addition, previously approved commitments of $144 million bring the total recommended capital plan to $264 million ome key projects included in the capital plan are listed below along with major funding sources: apital lan ey rojects imcoe mergency ampus arvie oad rossing astewater reatment Facility Improvements torm ater Infrastructure apleview r (ountry ane to onge) unlop treet orridor Improvements uckworth treet expansion urst rive ehabilitation eighbourhood enewal oad esurfacing cay oad expansion project, Veterans rive new trunk watermain and road expansion, ockhart oad new watermain, reservoir and expansion projects rand otal reviously pproved (ommitted) $ 99,833,478 $ 42,795,080 $ 993,100 $ 143,621,658 ew apital equests $ 87,870,222 $ 26,515,952 $ 5,608,933 $ 119,995,107 ew Investment and ervice ecommendations (associated with perating Budget requests) $ 65,133 $ 65,133 otal 2019 apital Budget $ 187,768,833 $ 69,311,032 $ 6,602,033 $ 263,681, U U / 7