2018 Draft Budget Highlights. Sarnia: The Place You Want to be!

Transcription

1 2018 Draft Budget Highlights Sarnia: The Place You Want to be!

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3 BUDGET The budget is our plan to manage your money and other funding we receive to deliver the services important to you, your family and our community. The budget is based on the 5 Fiscal Fitness Pillars the Financial Policy Statement adopted by Council in Fiscal Fitness Pillars Reduce Debt Increase Reserves and Reserve Funds Maintain Affordable Service Levels Infrastructure Renewal Maintain Reasonable Tax Rates Our goal is to align the budget with the Mission, Values, Vision and 4 Strategic Priorities within the City s Corporate Strategic Plan Draft Budget Highlights Page 2

4 CORPORATE STRATEGIC PRIORITIES #1: Economic Innovation Support revitalization and growth. Invest in infrastructure needed to revitalize the City and support growth Create a business-friendly environment Collaborate with stakeholder networks to attract and retain new business, industry and institutional services Collaborate with stakeholders to encourage land development #2: High Quality of Life & Caring for all Citizens Be a safe, healthy and accessible community. Promote safe and affordable housing alternatives Improve quality of life assets and amenities Continue on the path to accessibility Continue to build our relationship with Aamjiwnaang First Nation #3: Responsible Financial Management Align City services and capital investment with citizen expectations and ability to pay. Maintain reasonable tax rates Aggressively manage our assets Foster financial stability Grow and diversify revenues #4: Corporate Excellence & Leadership Focus on open and transparent government. Develop employees. Deliver service excellence. Improve both internal and external communications Improve service delivery effectiveness and efficiency Focus on people and culture Establish a culture of continuous improvement 2018 Draft Budget Highlights Page 3

5 BUDGET PROCESS Sarnia s budget is first proposed by City staff to deliver the services and programs that our community values. Once a recommended budget has been set by City staff, it is made public and presented to Council. Council and the community have time to review and comment. To help guide Council regarding the budget, City Council holds a Public Input and Grants Session on Monday, November 20, 2017 in the Council Chambers of Sarnia City Hall at 6:00 p.m. Any citizen, group, or organization who wishes to make a presentation on the 2018 Budget is requested to notify the City Clerk s office on or before noon, Wednesday, November 15, On December 5, 2017, Council will consider all aspects of the budget and aim to approve a budget that takes into account the City s 5 Fiscal Fitness Pillars. City staff drafts recommended budget City staff presents recommended budget Public Comment City Council deliberates to set the budget Questions or Comments to finance@sarnia.ca 2018 City Budgets & Fees Public Input Meeting Monday, November 20, 6:00 p.m. Council Chambers (City Hall) 2018 City Budgets & Fees Deliberation Day Tuesday, December 5, 9:00 a.m Draft Budget Highlights Page 4

6 $103M+ Deve lopm ent Applications Reviewed & Approved 154 Zoning & Complia nce Certificate s 14 Home Occupations Per mits 106 Planning Applications 29 Pre-Application Meetings 623 Building Permits 6, 520 By-Law Com plaints 9, 381 Parking Violations 40,300 Tax Bills Issued 21 Proposals 3,529 followers 52,500 average impressions per month f 3,262 followers 177,000 average impressions per month 34 Quotations 25 Tenders Information l echnology r n n Transit legal Realty an~ Property Services Pf1 1 ~e 344 Business Licenses 173 Lottery Licenses 412 Marriage Licenses 30 Marriage Ceremonie s 1,033 Buria l Permits 22 Council Meeti ngs 36 Agendas 109 Media Re leases 19 Council Meeting Highlights 19 MFIPPA Requests 1.196M Passengers 23 Conventional Buses 13 Conventional Routes ~... ~- OICe 5 Care-A-Vans 52 Bus Shelters (3 Solar) Engineering 500 Bus Stops 150 Documents Regist ered 100 Prope rty Searches 200 Notaries 1, 200 acres of Pa rkland SARNIA HRPublic Works Parks and Recrealion Cler~s Planning Buil~ing an~ By-law Enforcement Waste Purchasing ==~ I 496 km of Watermains 336 km of Sanitary Sewer 293 km of Storm Sewer 51 km of Forcemains 100 Watermain Breaks 130 Service Repairs 5, 716 Service Locates 488 Water On/Off 15 Hectares of Beach/Wate rf ront 2 Greent10uses 90,000 Municipal Trees 1,000+ Trees Planted Annually 33,000 sq. m of Gardens 5 Fire Stations 2, 727 Responses 439 km of Roads 27 Bridges 4,614 Public Education Interactions 2 Public Works Centres 378 Fire Prevention Inspections 2 Wastewater Treatment Facil ities 2018 Draft Budget Highlights Page 5

7 WHERE DOES THE MONEY COME FROM? Revenue Sources User fees o Transit fares o Licence fees o Recreation programs o Contracts Water & Sewer Rates 24% Contribution Costs Other from Reserves Recovered 1% 1% 7% Property taxes Water/sewer rates Investment income Senior government grants Development charges Reserve funds Grants & Subsidies 4% User Fees & Service Dividends & Charges Interest 5% 2% Property Tax 56% WHERE DOES THE MONEY GO? Operating Operating budgets include the day -to- day activities needed to provide City services. Includes expenditures such as wages, service contracts, supplies, equipment, insurance, and utilities and revenues such as tax and user fees. Capital Capital budgets include costs for new, major rehabilitation or replacement of the City s infrastructure. Includes road and underground service rehabilitation, shoreline protection, fire trucks, building and technology upgrades Draft Budget Highlights Page 6

8 PROPERTY TAXATION WHERE DOES IT GO? The City of Sarnia is part of a two-tier municipality, where our residents receive one tax bill to cover the total cost of services provided by the City, the County and School Boards. The County of Lambton is the upper tier and the City of Sarnia is the lower tier. Here is how your tax bill is split: School Boards, 19% County of Lambton, 27% City of Sarnia, 54% SUMMARY OF PUBLIC SERVICES AND WHO PROVIDES THEM... Parks & Trails, Arenas & Sports Fields Recreation Centres, Programs & Events Solid Waste Collection, Recycling & Compost Maintaining Local Roads/Bridges Building Permitting, Land Use Planning Fire & Rescue Services Police & Emergency Management Services Public Transit Tax Collection Business & Marriage Licencing Water & Wastewater Stormwater Management & Drainage City of Sarnia Emergency Medical Services Housing Services Public Health Social & Family Services Maintaining County Roads/Bridges Long Term Care Child Care & Children Services Provincial Offences Administration Libraries, Museums & Cultural Services Building & Plumbing Permits Solid Waste Management Economic Development & Tourism through SLEP/Tourism Sarnia Lambton County of Lambton Elementary Education Secondary Education School Boards 2018 Draft Budget Highlights Page 7

9 HOW IS THE CITY S BUDGET STRUCTURED? There are various components of the budget that Council reviews and approves. 1. Operating Budget: Includes all of the day-to-day activities of the City needed to provide services. The operating budget is broken down into 5 main categories: a. General Levy Includes all City department budgets except Conventional Transit, Water and Sewer. b. Police Budget - Included in the General Levy, but follows a different approval process regulated by the Police Services Act. The Police Services Board reviews and approves the detailed budget; City Council does not have the authority to approve/disapprove specific estimates. City Council establishes the overall budget allocated to Police Services. c. Transit Levy The Conventional bus system has a separate budget. Only property owners within a specified distance of the transit routes pay these costs. d. Water Rates Costs associated with providing municipal water services, including the Lambton Area Water Supply System, are separated to determine how to set water rates. These are broken into a monthly fee based on water meter size and a variable fee based on the water used. e. Sewer Rates Costs associated with providing municipal storm and sanitary sewer services are separated to determine how to set the sewer rate added to water bills. 2. Capital Budget: Includes costs for new assets, major rehabilitation, or replacement of the City s infrastructure, such as road and underground service rehabilitation, storm/sanitary sewer separation, arena upgrades, shoreline protection, streetlight upgrading, a new fire hall, fire trucks, or buses. 3. Reserves Budget: Reserves assist in long term planning, so there is money to replace infrastructure now, and in the future. Reserves also assist in minimizing tax fluctuations due to unanticipated expenditures and revenue shortfalls. The Reserves Budget includes expected inflows and outflows for spending from reserves. Currently, our reserves balance is not growing, and not much is being saved 2018 Draft Budget Highlights Page 8

10 for the future. This does not provide the City with financial flexibility to respond to unexpected demands and address all of our infrastructure needs. 4. Fees for Services: Includes the fees to be paid for by only those that use a service. Some examples are marriage or business licenses, bus passes, water meter removal, notary, fire inspections, special event bookings, sports fields, ice rentals, parking, site plan agreements, building permits, dog licences, garbage tags, replacement blue boxes, marriage ceremonies, and recreation program fees. PROPOSED 2018 BUDGETS EXPENDITURES First, we will look at the City s total expenditures; this is everything the City spends money on. Expenditures are higher than what is collected through property taxes. Other projected revenues make up the difference to determine what is required in property tax to create a balanced budget. Projected Expenditures Projected Other Revenues Property Taxes Required 2018 Draft Budget Expenditures 2018 Draft Expenditures 2017 Approved Expenditures Change $ % Change General Operating 73,886,368 73,123, , % Police Services 25,536,513 24,861, , % Transit Area 6,443,860 6,309, , % Water 16,053,297 15,589, , % Sewer 17,808,275 17,062, , % Total Expenditures $139,728,313 $136,946,069 $2,782, % 2018 Draft Budget Highlights Page 9

11 Let s break the City s expenditure dollars out two different ways to help explain how this money is spent. Expenditures by service area: Protection Recreation Planning & General Gov't & Environmental Transportation Debt Services & Culture Development Reserves 27% 14% 3% 33% 7% 1% 15% Expenditures by type of spending: Staff Contracted Service Equipment/Vehicles Supplies Insurance 57% 6% 5% 2% 1% Utilities 4% Facilities/Grounds 1% Debt 3% Other 7% Contribution to Reserves 14% 2018 Draft Budget Highlights Page 10

12 2018 Draft Staff Summary A large part of what the City spends is for the people that provide the services. Staff costs include wages and benefits. City staff are represented by the following unions and associations: CUPE 3690, CUPE 2713, CUPE 153, Unifor 127, Sarnia Professional Firefighters Association, and Sarnia Police Association. Expressed in Full Time Equivalents (FTE) Full Time Proposed Changes Police Association - Officer 19% Police Association - Civilian 8% CUPE 3690 (Inside Workers) 18% CUPE 2713 (Parks&Rec) 7% CUPE 153 (Public Works) 10% Non-Union 8% SPFFA (Fire) Unifor 127 (Transit) 8% 22% * Pie chart based on Full Time Active Employees Part Time Proposed Changes Student Proposed Changes Proposed 2018 Full Time Proposed 2018 Part Time Proposed 2018 Student Corporate Services Legal/Property/Risk Finance Fire Emergency 1.00 Engineering Public Works Transit Parks & Rec Planning/Building/By-Law Total without Police Police Total with Police *FTE depends on the total hours worked in a year, for example 3 students working 4 months each is equivalent to one FTE 2018 Draft Budget Highlights Page 11

13 TOTAL AMOUNT TO BE COLLECTED THROUGH TAXATION AND RATES Property tax and water/sewer rates are the City s largest source of revenue. Property tax is the number that balances the budget, so only the amount the City budgets to spend, less other revenue, are collected as property tax. An increase to the City s total assessment does not result in the City collecting more tax. When costs to provide services go up, property taxes go up, or service levels must go down. TAXATION 2018 Draft Budget 2017 Approved Budget Difference Change % General Operating 48,951,975 46,294,109 2,657, % Police Services 23,216,178 22,529, , % General Taxation $72,168,153 $68,823,645 $3,344, % Transit Area 3,940,258 3,838, , % Total Taxation $76,108,411 $72,661,834 $3,446, % RATES 2018 Draft Budget 2017 Approved Budget Difference Change % Water 15,969,221 15,444, , % Sewer 17,585,275 16,908, , % Total Rates $33,554,496 $32,353,457 $1,201, % Property taxes are shared between various types of property. These charts show how residential properties now share a larger portion of the total property taxes than twenty years ago. CURRENT CITY PROPERTY TAXES CITY PROPERTY TAXES 20 YEARS AGO Industrial Industrial Commercial 7% 17% 18% Farmland 1% Residential 74% Commercial 15% Residential / Farmland 68% 2018 Draft Budget Highlights Page 12

14 WHAT DOES THIS PROPOSED PROPERTY TAX INCREASE MEAN TO SARNIA S RESIDENTIAL PROPERTY OWNERS? The amount of property tax revenue that is approved by City Council is spread between property owners based on assessment value. Assessment is the amount you should be able to sell your property for. This chart shows the recent Residential Assessments for the various types of Residential properties in Sarnia. Residential Assessments Property Count Median Value Average Value Residence valued at $100K 100,000 Single Family Detached 20, , ,464 Link Home , ,446 Freehold Row House , ,158 Semi-Detached 1, , ,387 Single Family on Water , ,681 Condominium 2, , ,783 24,642 $ 218,753 $ 189,000 Based on MPAC 2016 Municipal Change Profile City of Sarnia Based on these residential values, the proposed increase is broken down between the general tax, which applies to everyone, and the conventional transit tax, which is charged only to those within the conventional transit service area. City Portion of Property Taxes 2017 City Tax Proposed Increase (General Tax) Proposed Increase (Transit Tax) 2018 Proposed City Tax Residence valued at $100K $ 901 $ 41 $ 1 $ 943 Single Family Detached $ 1,784 $ 81 $ 3 $ 1,868 Link Home $ 1,531 $ 70 $ 3 $ 1,604 Freehold Row House $ 901 $ 41 $ 2 $ 944 Semi-Detached $ 1,144 $ 52 $ 2 $ 1,198 Single Family on Water $ 8,431 $ 384 $ 15 $ 8,830 Condominium $ 1,135 $ 52 $ 2 $ 1,189 Proposed Increase - CITY Portion Only 4.74% Assumes No Real Growth as population is stable, Based on 2016 City of Sarnia Median Value 2018 Draft Budget Highlights Page 13

15 PROPERTY TAX CHANGE COMPARISON Now, just focusing on what the City retains in property taxes (General Tax + Transit), how does this proposed property tax increase compare to the actual increase in previous years? 8.0% 7.0% 7.34% Property Tax Changes : City Portion (General + Transit) 6.76% 6.96% 6.0% 5.33% 5.0% 4.0% 3.0% 4.34% 3.70% 3.60% 2.57% 3.57% 3.45% 3.20% 4.08% 3.24% 4.74% 2.0% 1.81% 1.0% 0.0% 2018 Draft Budget Highlights Page 14

16 WHAT ARE THE KEY THINGS CAUSING THE PROPOSED INCREASE TO PROPERTY TAXES/RATES? The chart below shows the key areas of increased spending or reduced revenue anticipated for Staffing Costs - Wages & Benefits 1,463, % Police Budget - as approved by Police Services Board 686, % Sarnia General Hospital Sale Agreement - New Debt 480, % Return after 2016/17 Moratorium - Fleet/Equipment Replacement 465, % Reduction of Interest on Late Payment of Property Tax 250, % Finalized Brownfield Development Tax Incentive Agreement 199, % Reduction in Street Lighting Electricity (125,000) -0.18% Increase to Cost Recovery Revenues (100,000) -0.15% Other 24, % Proposed Increase - General Taxation $3,344, % Staffing Costs - Wages & Benefits 51, % Transit Operational Revenues 197, % Bus Stop Maintenance - Accessibility for Ontarians with Disabilities Act (AODA) 47, % Cell data for AODA mandated Automated Vehicle Location (CAD/AVL) system 12, % Insurance 9, % Vehicle Maintenance - New Bus Fire Suppression System 8, % Increased Contribution from Provincial Gas Tax (230,000) -5.99% Other 6, % Proposed Increase - Transit Taxation $102, % Staffing Costs - Wages & Benefits 166, % Contribution to Reserves - for Capital Infrastructure 574, % Contract Expense 172, % Lambton Area Water Supply System (LAWSS) Operating Costs 128, % Other Revenue - Right-Size Other Water Revenue 60, % Other 98, % Proposed Increase to Water & Sewer User Rates $1,201, % 2018 Draft Budget Highlights Page 15

17 WHAT DOES THE CITY S PROPOSED INCREASE MEAN FOR MY TOTAL TAX BILL? As a part of a two-tier municipality, property taxes are collected by the City of Sarnia for the County of Lambton and the Ministry of Education. For the Residential homeowner located in the transit area, this chart shows the estimated change to your total tax bill. It is estimated using the most recent median residential assessment values. The County of Lambton and the School Boards have a separate budgeting process from the City, and their changes will not be finalized until early This chart is shown now for an estimate only. It will change based on the approved budgets and any real assessment growth. Total Property Tax Estimate 2017 Total Tax Bill Proposed Increase City Estimated Increase Lambton County and School Boards 2018 Estimated Total Tax Bill Residence valued at $100K $1,526 $43 $13 $1,582 Single Family Detached $3,021 $85 $26 $3,132 Link Home $2,594 $73 $23 $2,689 Freehold Row House $1,526 $43 $13 $1,583 Semi-Detached $1,938 $54 $17 $2,009 Single Family on Water $14,282 $399 $125 $14,806 Condominium $1,923 $54 $17 $1,993 Estimated Increase on Total Property Tax Bill 3.67% Residential information has been shown, but property taxes are shared by all property owners; this includes all property classes, such as residential, multi-residential, farm, commercial, and industrial. Heavily regulated by the Province, the County of Lambton sets policy to determine what portion of taxes each property class throughout the County pays. As the total tax collected is based on the approved budget, any change to this policy shifts tax liability from one property class to another, but the total amount collected stays the same Draft Budget Highlights Page 16

18 HOW DOES THIS COMPARE TO HISTORICAL PROPERTY TAXES? This chart shows the historical cost for a residential property assessed at $100,000 for comparison. The dark bars show the total of taxes collected, and the lighter bars include the taxes used by the City. To compare, if your home is assessed at $300,000, you would triple these numbers. 1,800 1,600 $1,710 Property Tax Dollars paid for a Residence Assessed at $100,000. $1,580 $1,632 $1,568 $1,618 $1,673 $1,615 $1,566 $1,513 $1,479 $1,502 $1,493 $1,505 $1,521 $1,526 $1,582 1,400 1,200 1, $841 $793 $841 $819 $852 $899 $878 $851 $829 $812 $834 $842 $862 $887 $901 $ Total Residential Property Tax Portion of Residential Tax Directed to the City *Proposed property tax includes an estimate of County of Lambton and Education taxes. They will not be finalized until Spring Draft Budget Highlights Page 17

19 CAPITAL BUDGET INFRASTRUCTURE PLANNING The Capital Budget includes costs for the major rehabilitation or replacement of the city s infrastructure (assets) that provide a long term benefit. A key element to a sustainable capital program is the ability to compare competing needs and priorities across the City. Our Capital Budget is funded through Federal and Provincial Grants, Other Grants, and Reserve Funds. The Pay-as-you-Go approach has been used for a number of years, eliminating new debt to pay for Capital projects. When loans expire, the dollars previously used to pay principle and interest, are now placed in reserves to pay for capital projects. Maintaining municipal infrastructure is vital to achieving our vision Sarnia the place you want to be! Our Asset Management Plan (AMP) is used to optimize our assets and help prioritize infrastructure needs. Currently, the AMP includes only our Core Linear infrastructure including water, sewer, drainage, and road networks. Work continues to add all assets to the AMP, with completion planned for the end of In the AMP our infrastructure is rated based on its condition and performance. Once an asset reaches a point where it is rated as very poor condition, it is providing minimum service to the citizens and its estimated life expectancy is less than a year. At that point, it is added to the infrastructure backlog. The chart below shows an estimated cost of the Infrastructure Backlog provided to Council. LINEAR ASSET TYPE Roads 1,158,286 6,905,859 7,402,489 11,245,167 Major Bridges & Culverts 4,803, , , ,050 Watermains 77,939,469 78,593,024 79,681,035 80,372,548 Sanitary Sewers 69,009,141 76,126,371 85,123,392 90,124,528 Storm Sewers 67,258,771 76,398,575 98,752, ,906,985 Shoreline Protection 16,868,251 16,868,251 16,868,251 19,570,951 INFRASTRUCTURE BACKLOG $237,037,058 $255,499,140 $288,506,752 $309,747,229 *Currently only includes Core Linear Assets Source September 26, 2016 Report to Council on State of Infrastructure 2018 Draft Budget Highlights Page 18

20 The City s revenues are not sufficient to meet the outstanding infrastructure needs or address the infrastructure backlog. The prioritization for infrastructure rehabilitation and replacement focuses on urgency, available resources, readiness to proceed, and affordability. The recommended capital spending by infrastructure category is shown in pie chart below, and a listing of recommended projects are included in Appendix 3. The bar chart shows where the money for the capital projects comes from, note based on the City s Fiscal Fitness Plan there is no new debt included PROPOSED CAPITAL BUDGET $25.8 MILLION WHERE THE $ COMES FROM General Capital Projects Water & Wastewater Capital Projects Police $2,000,000 Parks & Recreation $1,225,000 Shoreline $700,000 Transit $150,000 Water & Wastewater, $11,541,201 $325,000 Roads, Streetscape & Bridges, $8,850,000 Facilities & Buildings $590,000 Corporate & Economic Development $710,000 $3,000,000 $5,089,424 SENIOR GOV'T $8,600,959 $8,225,000 $134,617 $391,201 TAXPAYERS USERS DEVELOPERS 2018 Draft Budget Highlights Page 19

21 BUDGET HIGHLIGHTS This highlight document provides a high-level overview of the budget process, aspects of the budget, and the proposed changes for Additional summary reports are included in the Appendices to provide citizens information for review in advance of the Public Input session. The Public Input and Grants Session will be held on Monday, November 20, 2017 in the Council Chambers, Sarnia City Hall, at 6:00 p.m. Any citizen, group or organization who wishes to make a presentation on the 2018 Budget is requested to notify the City Clerk s office on, or before, noon on Wednesday, November 15, You can watch video (live or recordings) of special Council meetings leading up to the Council Budget Deliberations scheduled for December 5, 2017 at 9:00 a.m. at In preparation for the Budget process there are a number of presentations to Council; they are available on our website for your review. If you would like a more detailed look at all the numbers and background data that goes into the development of the proposed budgets, there are a number of detailed documents that will be available on our website after November 9, 2017 at These documents include: 2018 Draft Operating Budget 2018 Draft Capital & Reserves Budget Summary of Expenditures and Revenues, Summary by Department Total Full Time Equivalent Staff Summary Detailed Operating Budget (line by line) including explanations of changes Capital Projects Summary and 10 Year Capital Plan Detailed Project Descriptions Reserve & Reserve Fund Revenues & Expenditures, and Projected Fund Balances 2018 Draft Fees for Services Fees by Department (including description of user fees) 2018 Draft Supplementary Budget Information City of Sarnia Financial Policy Statement Municipal Grant Policy and Procedure Municipal Grant Summary and Submitted Applications 2018 Draft Budget Highlights Page 20

22 APPENDIX 1: 2018 DRAFT OPERATING BUDGET SUMMARY Budget Area General 2018 Draft Revenue 2018 Draft Expenses 2018 Net Expenses/ (Revenue) 2017 Approved Revenue 2017 Approved Expenses 2017 Net Expenses/ (Revenue) 2018 Proposed Change Taxation (79,506,374) 1,706,457 (77,799,917) (76,282,085) 1,410,200 (74,871,885) (2,928,032) Mayor & Council - 316, , , ,337 4,027 CAO & General Municipal - 9,324,075 9,324,075 (465,000) 9,226,382 8,761, ,693 Economic Development (40,000) 284, ,279 (40,000) 308, ,632 (24,353) Legal (53,850) 641, ,870 (53,850) 582, ,729 59,141 Human Resources (158,470) 1,031, ,500 (141,344) 958, ,707 56,793 Finance (1,105,945) 4,280,230 3,174,285 (737,303) 3,922,983 3,185,680 (11,395) City Clerk (565,045) 929, ,497 (289,046) 886, ,655 (233,158) Harbour (1,160,602) 1,041,102 (119,500) (1,004,318) 891,318 (113,000) (6,500) Properties (32,500) 1,198,745 1,166,245 (32,500) 1,231,003 1,198,503 (32,258) Emergency & Other - 168, , , ,146 2,141 Fire (138,467) 19,449,109 19,310,642 (133,880) 18,732,408 18,598, ,114 Engineering (1,808,060) 4,239,869 2,431,809 (1,904,996) 4,338,817 2,433,821 (2,012) Public Works (3,450,079) 7,602,264 4,152,185 (3,587,437) 7,421,365 3,833, ,257 Waste Management (1,284,480) 3,582,960 2,298,480 (1,142,704) 3,406,438 2,263,734 34,746 Specialized Transit (230,099) 1,149, ,158 (218,499) 1,131, ,031 6,127 Parks & Sports Fields (371,850) 4,083,104 3,711,254 (356,144) 3,927,041 3,570, ,357 Recreation Programs (450,439) 988, ,511 (430,089) 942, ,112 26,399 Arenas (2,637,285) 3,541, ,396 (2,647,535) 3,550, ,607 1,789 Pools (80,300) 244, ,617 (77,000) 200, ,559 41,058 Parks & Rec Admin (15,240) 399, ,371 (5,000) 398, ,900 (9,529) Planning (964,088) 957,907 (6,181) (973,323) 946,926 (26,397) 20, Draft Budget Highlights Page 21

23 Budget Area 2018 Draft Revenue 2018 Draft Expenses 2018 Net Expenses/ (Revenue) 2017 Approved Revenue 2017 Approved Expenses 2017 Net Expenses/ (Revenue) 2018 Proposed Change Building (708,000) 708,000 - (697,500) 697, By-Law Enforcement (642,000) 1,285, ,077 (657,450) 1,202, ,274 97,803 Debt (1,699,373) 3,527,955 1,828,582 (3,703,992) 5,130,911 1,426, ,663 Boards, Commissions - 373, , , ,640 44,970 Other - 829, ,326 (72,366) 871, ,025 30,301 Police Services (2,320,335) 25,536,513 23,216,178 (2,331,568) 24,861,104 22,529, ,642 Total General Operating (99,422,881) 99,422,881 - (97,984,929) 97,984, Transit Taxation (3,940,258) 70,300 (3,869,958) (3,838,189) 70,300 (3,767,889) (102,069) Operations (2,503,602) 6,373,560 3,869,958 (2,471,402) 6,239,291 3,767, ,069 Total Conventional Transit (6,443,860) 6,443,860 - (6,309,591) 6,309, Water & Sewer Water Administration (16,053,297) 7,367,091 (8,686,206) (15,589,547) 7,159,524 (8,430,023) (256,183) Water Distribution - 8,686,206 8,686,206-8,430,023 8,430, ,183 Sewer Administration (16,819,313) 2,423,453 (14,395,860) (16,090,062) 2,315,027 (13,775,035) (620,825) Sanitary Sewers - 6,069,096 6,069,096-5,472,652 5,472, ,444 Pump Stations - 1,580,971 1,580,971-1,542,375 1,542,375 38,596 Sewage Treatment (180,000) 6,925,793 6,745,793 (80,000) 6,840,008 6,760,008 (14,215) Storm Sewer Maintenance (808,962) 808,962 - (891,940) 891, Total Water & Sewer (33,861,572) 33,861,572 - (32,651,549) 32,651, Draft Budget Highlights Page 22

24 APPENDIX 2: PROPOSED WATER & SEWER RATES Size of Meter Monthly Water Monthly Water Size of Meter Distribution Charge Distribution Charge ⅝ $ $ ¾ $ $1, $ $2, ½ $ $4, $ $6, Cents per Cubic Meter of Water Consumed Sewer Surcharge (% of Water Distribution + Consumption Charge) % Average Residential Water & Sewer Cost per Year - based on 200 m3 per year ⅝ Water Meter ¾ Water Meter Distribution per month $33.89 $47.85 Water Used per month $4.85 $4.85 Distribution + Use $38.74 $52.70 Sewer Surcharge $45.11 $61.37 Total per Month $83.86 $ Average Cost per Year $1, $1, Draft Budget Highlights Page 23

25 APPENDIX 3: 2018 PROPOSED CAPITAL PROJECTS General Capital Projects 2018 Recommendation Energy Efficiency 300,000 Sarnia Library Renovations & Accessibility Upgrades 340,000 Infrastructure Assessment 100,000 Oversized Load Corridor 200,000 Fire Station 3 Demolition & Rebuild 250,000 Bus Stop Accessibility Improvements (Accessibility for Ontarians with Disabilities Act) 75,000 Transit Plant & Premises Security 75,000 Arena Improvements 500,000 Sports & Recreation 600,000 Park Infrastructure 125,000 Kinsmen Centre Demolition 110,000 Public Works Improvements 100,000 Road Resurfacing/Reconstruction 2,000,000 Rural Roads Rehabilitation 300,000 Rehabilitation - Various Structures (Bridges & Culverts) 250,000 Shoreline Protection 700,000 Donohue Bridge 6,000,000 Transportation Masterplan - Sidewalks & Bike Lanes 75,000 Streetscape Improvements at Various Locations 125,000 Water & Sewer Capital Projects Sarnia Sewer Upgrade Project 4,500,000 Storm Water Management Facilities 200,000 Talfourd, Devine and Side Streets Separation 2,150,000 Watermain, Sanitary & Storm Sewer Replacement - Various Locations 2,691,201 Water Pollution Control Centre (WPCC) Improvements 300,000 Water Pollution Control Centre (WPCC) - Ultraviolet Change Out 1,000,000 Pump Stations Improvements 400,000 Corrosion Protection Plan 300,000 Police Services Police Communication System 2,000,000 Total Recommended Capital Project Funding $25,766, Draft Budget Highlights Page 24

26 APPENDIX 4: RESERVES AND RESERVE FUNDS The City holds Reserves and Reserve Funds that are similar to your savings account; they ensure the City has funding for specific purposes or capital projects when needed. Some examples of different types are: 1. Reserves are set up by Council and cushion the impact that major expenditures have on property taxes. For example, Tax Stabilization Reserve or Operating Contingency Reserve. 2. Reserve Funds earn interest and have external restrictions for collection and use. a. Obligatory (Restricted) required for legislated or legal reasons. For example, Development Charges are collected from developers and can only be spent for very specific purposes. b. Discretionary created by Council By-Law, often based on an agreement or donation, for example Bluewater Gymnastics Reserve Fund, or YMCA Reserve Fund. Below is a high-level summary of the expected beginning balances, revenue and spending, and forecasted ending balances for the City s Reserves and Reserve Funds, and types of Inflows (contributions) and Outflows (commitments). Reserve Type Opening Balance Jan Reserve Inflows 2018 Reserve Outflows Ending Balance Dec 2018 Obligatory Reserve Funds 14,807,366 5,736,824 (7,106,844) 13,437,346 Discretionary Reserve Funds 6,643,496 5,688,610 (5,852,294) 6,479,812 Reserves 13,015,876 23,782,406 (22,484,284) 14,313,997 Reserves & Reserve Funds $34,466,738 $35,207,839 ($35,443,422) $34,231,155 Inflows From Operating Budget Retired Debt Senior Government Grants Development Charges Other Outflows Capital Projects Equipment/Fleet Replacement Direct from Reserve Requests To Operating Budget Other 19,966,780 4,823,081 8,169, ,000 1,716,105 $35,175,523 (25,766,201) (2,069,000) (3,804,558) (3,401,553) (402,110) ($35,443,422) 2018 Draft Budget Highlights Page 25

27 NOTES:

28 The Corporation of the City of Sarnia 255 North Christina Street PO BOX 3018 Sarnia, ON N7T 7N Draft Budget Highlights Page 26