MUNICIPALITY OF HASTINGS HIGHLANDS

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1 1 MUNICIPALITY OF HASTINGS HIGHLANDS 2018 MUNICIPAL CAPITAL BUDGET PRESENTATION COUNCIL APPROVED NOVEMBER 22, 2017

2 INTRODUCTION 2

3 3 INTRODUCTION - We are targeting to have Council approve the 2018 capital budget on November 22, Benefits of approving before Dec 31, 2017 include: - It will give department heads adequate time to prepare tenders and be subject to the most competitive market prices - It will allow the municipality to get a jump start on construction projects before the busy summer construction season

4 MUNICIPAL BUDGET TIMELINE 2018 Municipal Budget Timeline Level Task Comments July August September October November December January Council create & appoint members to budget adhoc committee Treasurer disburse budget worksheets to all department heads department heads submission deadline of August 31st Department Heads complete and submit budget worksheets to treasurer Treasurer review department heads completed worksheets and input figures into master budget workbook Department Heads prepare proposed municipal budget for review by budget ad-hoc committee Budget Ad-Hoc Committee review proposed municipal budgets and begin to prepare draft for council Council review draft municipal budget as presented by the budget ad-hoc committee a special meeting of council may be necessary to receive the draft municipal budget Public Consultation council to host draft budget open house for public consultation and feedbck a special meeting of council will be necessary to present the draft municipal budget Budget Ad-Hoc Committee review of public comments committee will review publics comments and diliberate before presenting final draft for approval by council Council approval of municipal budget Council Public Budget Ad-Hoc Committee Treasurer Department Heads

5 5 Where we are Where we are going Completed: Corporate Strategic Plan Completed: Comprehensive Asset Management Plan Completed: 5 Year Capital Roads Plan Completed: Finance Reserves Policy In Progress: Fire Services Capital Plan In Progress: Buildings & Facilities Strategy In Progress: Landfill Closure & Post Closure Financial Risk Mitigation

6 6 CORPORATE STRATEGIC PLAN WASTE SITES FINANCIAL RISK MITIGATION ASSET MANAGEMENT PLAN BUILDINGS & FACILITIES STRATEGY CAPITAL BUDGET ROADS CAPITAL PLAN FIRE SERVICES CAPITAL PLAN FINANCE RESERVES POLICY

7 7 HASTINGS HIGHLANDS CAPITAL km of roads ASSET INVENTORY - 13 bridges - 2 structural culverts - > 50 vehicles/equipment - > 30 municipal buildings or facilities - 9 municipal waste sites

8 Municipal Reserves (Estimate) YEAR: 2018 (Estimate Only) 2017 Description of Discretionary Reserve Account # Balance Dec 31 Reserve for Working Capital ,208, Reserve for Insurance Expense , Reserve for Policing Expense , Reserve for Election Expense , Reserve for Recreation Expense , Reserve for Economic Development Expense , Reserve for Health Expense , Reserve for Gym Equipment Expense , Reserve for Capital Expense , Reserve for Admin Capital Expense , Reserve for Equipment Replacement , Reserve for Water Capital , Reserve for Road Construction Expense , Reserve for Landfill Capital , Reserve for Fire Capital , Reserve for Landfill Closure Expense , TOTAL 4,250, Description of Obligatory Reserve Account # Balance Dec 31 Reserve for Gas Tax Fund , Reserve for Cash In Lieu of Parkland (Deferred Revenue) , TOTAL 73,132.49

9 DRAFT CAPITAL BUDGET

10 10 Proposed Critical Priority Needs kms of municipal roads to be paved kms of municipal roads to be gravelled - Hastings Highlands Local Road 62 Revitalization Project Design (Dependent Upon Success of OCIF Application) - 1 New Roads Highway Plow Truck for Local Road 62-1 Fire Services Pumper/Tanker for Lake St. Peter - 1 Fire Services Equipment Van for Lake St. Peter - Roof Replacement at Lake St. Peter Community Centre

11 11 One of the Projects Proposed - HCB Overlay (Pave) South Baptiste Lake Road FROM Y Road TO Mira Street 1 KM Total Cost $82,544

12 12 One of the Projects Proposed - HCB Overlay (Pave) Graphite Road FROM Hwy 62 TO Moxam Road 3.3 KMS Total Cost $330,000

13 13 One of the Projects Proposed - HCB Overlay (Pave) Golfers Lane FROM River Road TO Dead End 1.2 KMS Total Cost $107,500

14 14 CAPITAL BUDGET (Expense Only) Total Budget: $1,763,544 *Refer to Capital Plan for detail Buildings 1% or $20,000 Vehicles/ Equipment 28% or 495,000 Information Technology Replacement 1% or $20,000 Roads 70% or $1,228,544

5% or $269,500 Provincial Grants/Other 16% $285,944 Municipal

15 15 CAPITAL BUDGET (Revenue Only) Total Budget: $1,763,544 *Refer to Capital Plan for funding detail Gas Tax Transfer 15.5% or $269,500 Provincial Grants/Other 16% $285,944 Municipal Taxation 16.5% or $290,000 Municipal Reserves 52% or $918,100 Municipal Debt 0% or $0

16 In other words 16 The municipality needs $1,763,544 in order to pay the bills for the proposed 2018 capital related expenses. $269,500 will be sent to Hastings Highlands by the Federal Governments Gas Tax Fund $82,544 will be sent to Hastings Highlands by the Provincial Governments Community Infrastructure Fund Formula Based $203,400 will be sent to Hastings Highlands by the Provincial Governments Community Infrastructure Fund Application Based $918,100 will be used from Hastings Highlands reserves or otherwise referred to as the municipality s savings $0 will be provided to Hastings Highlands in the form of a bank loan $290,000 will be used from Hastings Highlands operating expenses to fund capital expenses $1,763,544

17 17 CAPITAL BUDGET COMPARISON EXPENSES $ $ 2018 BUDGET % 2017 BUDGET % Roads 1,228,544 70% 754, % Bridges 0 0% 0 0% Buildings 20, % 25,000 2% Waste Sites 0 0% 22, % Vehicles/Equipment 495,000 28% 611,689 42% Information Technology Replacement 20, % 50,000 3% TOTAL 1,763,544 1,463,138

18 18 CAPITAL BUDGET COMPARISON REVENUES $ $ 2018 BUDGET % 2017 BUDGET % Municipal Taxation 290, % 265,000 18% Municipal Reserves 918,100 52% 845,689 58% Gas Tax Transfer 269, % 269,500 18% Municipal Debt 0 0% 0 0% Provincial Grants/Other 285,944 16% 82,949 6% TOTAL 1,763,544 1,463,138

19 Municipal Reserves Budgeted through (If Proposed Capital Budget Approved As Is) operating budget per Reserves Policy YEAR: 2018 (Estimate Only) Description of Discretionary Reserve Account # Balance Dec 31 Budget From Budget to Balance Dec 31 Reserve for Working Capital ,208, , ,043, Reserve for Insurance Expense , , Reserve for Policing Expense , , Reserve for Election Expense , , Reserve for Recreation Expense , , Reserve for Economic Development Expense , , Reserve for Health Expense , , Reserve for Gym Equipment Expense , , Reserve for Capital Expense , , Reserve for Admin Capital Expense , , , Reserve for Equipment Replacement , , , Reserve for Water Capital , , Reserve for Road Construction Expense , , , Reserve for Landfill Capital , , Reserve for Fire Capital , , , Reserve for Landfill Closure Expense , , TOTAL 4,250, , ,332, Description of Obligatory Reserve Account # Balance Dec 31 Budget From Budget to Balance Dec 31 Reserve for Gas Tax Fund , , , , Reserve for Cash In Lieu of Parkland (Deferred Revenue) , , TOTAL 73, , , , * This does not include taxation transfer of $290,000 and provincial grant support of $285,944

20 MUNICIPAL RESERVES - If this draft capital budget is approved, the forecasted balance of municipal reserves at year end is just over $3.3 million dollars - **Special Note** This balance of just over $3.3 million dollars does not take into account any transfers to the reserves from the municipality s operating budget - Section 5.2 of the municipality s approved Reserves Policy recommends a total of transfers from the operating budget to fund reserves should be at a minimum target of between 8% and 10% of the total tax levy For example, if Hastings Highlands total tax levy was $6,700,000 then a minimum target of 8% or $536,000 should be transferred from the operating budget to fund reserves. That would take the municipal reserves balance from just over $3.3 million to over 3.8 million

21 CONCLUSION 21

22 22 CONCLUSION - Balanced capital budget proposed - No new municipal debt proposed - Pay as you go principle applied - The draft capital budget addresses the most critical municipal infrastructure needs while maximizing the use of public dollars to ensure the right investments are made at the right time - All the proposed projects take into consideration the formal municipal planning completed to date

23 DISCUSSION 23

2018 BUDGET PUBLIC MEETING

2018 BUDGET PUBLIC MEETING April 23, 2018 Council Chambers Presented By: Dawn Galusha, Deputy Treasurer BUDGET PROCESS Municipalities exist under the mandate of the Province. Municipal Act and a variety