2015 Draft Budget. Council Education Session January 21, 2015

Transcription

1 2015 Draft Budget Council Education Session January 21, 2015

2 Proposed 2015 Budget Results in an overall tax rate of 1.6% (combined Region, Town, Education) Achieves the budget strategy of balancing: - continuation of program delivery - maintaining capital assets - servicing growth demands - taxpayer affordability - economic realities 2

3 Community of Choice Address Community Needs Provide Competitive Taxes Live Within Our Means 3

4 147 sq. km. Population density sq/km 901 GTA Avg. 1, ,976 People 52% increase (2000 to 2014) % change greater than GTA Average 10% of Population > 65 yrs. GTA avg 12% 29% of Population < 19 yrs. GTA avg 26% $2 Billion Infrastructure 961 acres of parkland 1,357 acres of open space 1,092 km of roads 2014 Average Assessment $339,900 High Average Household Income - $116,550 43,559 Households 6.3% Unemployment Rate Oshawa CMA November 2014 Ontario average 7.0% 4

5 Addressing Community Needs Special Events Recreation Programs and Facilities Seniors Programs Sports Fields Marina Animal Services Waste Collection Road Construction and Maintenance Fire and Emergency Services Snow Clearing Street Lighting Traffic Signals Storm Water Management Economic Development Sustainability Emergency Planning Forestry Diversity and Inclusivity Records Management Implement By-laws Traffic Control By-law Enforcement Cycling and Leisure Trails Parks Libraries Station Gallery Community Grants Development Approvals Long Range Land Use Planning Downtown Support Financial Planning Heritage Preservation Accessibility Future Master Plans (Port Whitby Secondary Plan, Sports Facility Strategy, Cullen Park Master Plan, Waterfront Master Plan, Culture Plan, Asset Management Plans, Fees Study etc.) 5

6 Providing Competitive Taxes Taxes Four Home sample compared to other similar municipalities Source: Region of Durham, Long Term Strategic Property Tax Plan 2014 Update 6

7 Providing Competitive Taxes 2014 Comparison of Total Taxes On a Property Assessed at $339,900 $6,000 $5,407 $5,000 $4,425 $4,455 $4,508 $4,624 $4,000 $3,000 $2,000 $1,000 $0 Pickering Ajax Whitby Oshawa Clarington 7

8 2014 Town of Whitby Taxes $4,507 on a Property Assessed at $339,900 Town, $1,421, 32% Region, $2,396, 53% Education, $690, 15% 8

9 Providing Competitive Taxes 2014 Comparison of Lower Tier Taxes on a Property Assessed at $339,900 $2,500 $2,321 $2,000 $1,536 $1,500 $1,337 $1,367 $1,421 $1,000 $500 $0 Pickering Ajax Whitby Oshawa Clarington Taxes $62 for waste collection Note for Pickering, Ajax and Clarington $62 has been added for waste, green bin and yard waste collection 9

10 Providing Competitive Taxes A recent independent report on policy notes that for a similar home located in similar municipalities in and around the GTA the actual total tax dollars collected are very similar. 10

11 Providing Competitive Taxes 2014 Senior Executive Home $14,000 $12,000 $10,000 $8,000 $6,000 $5,962 $6,122 $4,000 $2,000 $0 Milton Toronto (East) Caledon Clarington Brampton Newmarket Richmond Hill Mississauga Aurora Burlington Halton Hills East Gwillimbury Scugog Vaughan Whitby Ajax Oakville Oshawa GTA Average Georgina Markham Whitchurch Stoffville Pickering Toronto (North) Toronto (West) King Toronto (South) Senior Executive Home - 2 Storey, 4 or 5 bedrooms, 3 bathrooms, main floor family room, plus atrium or library. Unfinished basement, attached 2 car garage approximately 3000 sq. feet. Approximate lot size of 6,700 sq. feet. Comparison of taxes on a per household basis. Source : 2014 BMA Study. 11

12 Providing Competitive Taxes 2014 Residential Bungalow $6,000 $5,000 $4,000 $3,645 $3,854 $3,000 $2,000 $1,000 $- Toronto (East) Milton East Gwillimbury Brock Clarington Georgina Halton Hills Toronto (West) Caledon Burlington Newmarket Richmond Hill Whitchurch Stouffville Oakville Aurora Scugog Average Brampton Toronto (North) Whitby Mississauga Oshawa Ajax Vaughan Pickering King Toronto (South) Markham Residential - Single Family Detached Home - A detached three-bedroom single storey home with 1.5 bathrooms and a one car garage. Total area of the house is approximately 1,200 sq. ft. and the property is situated on a lot that is approximately 5,500 sq. ft. Comparison of taxes on a per household basis. Source: 2014 BMA Municipal Study 12

13 Providing Competitive Taxes 2014 Two Storey Home Comparison $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $4,442 $4,707 $- Toronto (East) Milton East Gwillimbury Georgina Halton Hills Caledon Burlington King Clarington Scugog Brampton Markham Newmarket Aurora GTA Aveverage Richmond Hill Vaughan Toronto (West) Oakville Whitchurch Stouffville Mississauga Whitby Toronto (North) Ajax Oshawa Brock Pickering Toronto (South) Residential - Two Storey - A two storey, three bedroom with 2.5 bathrooms, two car garage. Total area of the house is approximately 2,000 sq. ft. on a lot approximately 4,000 to 5,000 sq. ft. Comparison of taxes on a per household basis. Source: 2014 BMA Municipal Study 13

14 Residential Comparison Summary Low Low-Mid Mid Mid-High High Toronto East Clarington Brampton Aurora Ajax East Gwillimbury Caledon Brock Oakville Halton Hills Georgina Burlington Oshawa Milton King Pickering Markham Mississauga Newmarket Toronto (North) Toronto (South) Whitchurch-Stouffville Richmond Hill Scugog Toronto (West) Vaughan Whitby Source: 2014 BMA Municipal Study Edited for GTA Municipalities 14

15 Providing Competitive Taxes The Region of Durham reports that for similar commercial properties the total tax dollars collected per square foot is relatively competitive across the GTA. 15

16 Providing Competitive Taxes Source: Region of Durham, Long Term Strategic Property Tax Plan 2014 Update 16

17 Providing Competitive Taxes Source: Region of Durham, Long Term Strategic Property Tax Plan 2014 Update 17

18 Living Within Our Means Our current debt is not funded from the tax base. While the Town of Whitby has a debt capacity based on Municipal Affairs and Housing regulations of $257M our actual internal debt at the end of 2014 will be $7.2M. 18

19 Living Within Our Means $5.1M worth of debt is related to the Downtown Whitby Library. The 2011 budget committed funding for the repayment of this debt over time through development charges and reserve funds specifically set aside for this purpose. $2.1M of this debt is related to the new soccer dome and marina improvements both of which are being repaid entirely through user fees. 19

20 Living Within Our Means In prior Capital Budgets, Council approved additional debt for the Marina and Soccer Club totalling $1.2M. Both Capital Projects are expected to be completed in They will be financed through debt once complete. Both projects will be repaid entirely through user fees. 20

21 Living Within Our Means This financial position can only be maintained if we continue to finance ongoing expenses with ongoing revenues and use uncommitted reserves for special one time projects. As a result of our very low debt and long range financial plan the Town has considerable capacity to consider borrowing for significant projects in the future. 21

22 Whitby Population 22

23 Community of Choice Over the last 20 years our population has almost doubled. A further 48% increase in our population is expected over the next 16 years. 23

24 Challenges Existing Services Legislative/ External/Other Changes Council Priorities Inflation operating and capital Annualization Asset Management Revenues Street Lights (energy costs) Growth (infrastructure and staff) Succession Planning Town Hall Office Restructure Risk Management Accessibility Green Energy Act 407 Impacts Intensification ROPA 128 Settlement Official Plan Review Development Charges Building and Planning Fees Environment (Climate Change, Emerald Ash Borer) To be determined/confirmed by Council ECONOMY 24

25 Council Goals 2014 to To build a strong, respectful Council team with a positive, shared vision and four year action plan. To ensure that all municipal affairs are conducted with professionalism and integrity. To enhance the transparency and accessibility of Town Hall and support effective public consultation and engagement. 2. To make workplace morale a priority by building a collaborative and creative work environment that engages the abilities of all staff to solve problems, accomplish new things and deliver the best outcomes to our residents. 3. To continue the Whitby tradition of responsible financial management and respect for the taxpayer. To understand the importance of affordability to a healthy, balanced community. 4. To ensure that Whitby is clearly seen by all stakeholders to be business and investment friendly and supportive. To strive to continuously improve the effectiveness and efficiency of service delivery. 25

26 Council Goals 2014 to 2018 (continued) 5. To build downtowns that are pedestrian-focused destinations. To leverage municipal tools and resources to generate local jobs and prosperity. To facilitate a major, multi-faceted, downtown supportive investment on the lands on and around the firehall site. To gain local ownership of Baldwin Street through downtown Brooklin. 6. To enhance the safety of our local streets and neighbourhoods by reducing traffic speeds and impacts through design standards that support traffic calming and safe speeds across the community. To increase citizen involvement in building safe streets. To manage parking effectively on residential streets and in our downtowns. To reduce the traffic impacts of new developments on existing neighbourhoods. 7. To remain the community of choice for families and become the community of choice for seniors and job creators. To focus new growth around the principles of strong, walkable and complete neighbourhoods that offer mobility choices. 8. To become the destination of choice for visitors from across Durham and the GTA. To realize the economic and social potential of our downtowns, waterfront and greenspaces in developing local tourism. To create more things to do and places to enjoy. 26

27 Our Economy Recovery from the previous economic challenges is slowly continuing due to strengthening US economy. However, global uncertainties and record levels of household debt remain key risks for the economy. Unemployment rates have improved, interest rates are expected to remain low in the near term and inflation rates are projected to remain at 2% in The recent decline in the Canadian dollar and oil prices will improve Ontario s competitive position Focus on reducing deficits at the Federal and Provincial level poses risks and uncertainties for municipalities. 27

28 Budget Strategy Being aware of the state of our economy and the impact it has on the ability of our taxpayers to afford improvements, the proposed 2015 budget focuses on: maintaining core services taking care of our assets providing for growth 28

29 2015 Recommended Budget Capital $25M Plan For Infrastructure and Major Projects Operating $108M Plan for Delivery of Services and Programs Investing in capital assets, including land, facilities, infrastructure, vehicles and equipment Expenditure: Compensation, supplies, services, utilities, debt servicing, contribution to capital and transfers to reserves Financing: grants, development charges, property taxes and user rates, debentures Revenue: grants, subsidies, user fees and charges, property taxes 29

30 2015 Draft Operating Budget Sources of Revenue ($108M) Federal and Provincial Grants, $3.7, 3% Whitby Hydro Income, $4.9, 5% Taxation, $75.7, 70% Other, $28.8, 27% User/Program Fees and Revenues from External Sources, $19.7, 18% Internal transfers and recoveries, $4.2, 4% 30

31 Who Pays Property Taxes 2015 Draft Operating Budget $75.7M (including PIL s and Supps) Non-residential, $14.2, 19% Residential, $61.5, 81% 31

32 Total 2015 Draft Operating Budget Expenditures by Category Total $108M Whitby Public Library, $4.7, 4% Transfer to Maintenance and Growth Capital Programs, $20.8, 19% Other Transfers to Reserves and Internal Transfers, $2.8, 3% Grants (Station Gallery $0.4 and Others $0.2), $0.6, 1% Administrative Costs, $4.9, 5% Purchased Services and Supplies, $7.0, 6% Vehicle & Equipment Maintenance and Fuel, $2.6, 2% Building Related Costs & Utilities, $6.1, 6% Salaries, Wages & Benefits, $58.7, 54% 32

33 2015 Operating Budget Impact Inflation Prior Year Decisions Other Budget Adjustments

34 Operating Budget Inflation The Consumer Price Index (CPI) is forecasted to be 2.0% for 2015 The CPI is based on a basket of goods and services utilized by a typical household. Municipalities typically have a Municipal Price Index (MPI) that is higher than the CPI due to a heavy reliance on labour and energy costs (hydro, heating, fuel). 34

35 2015 Actual Municipal Price Index Inflation Impact $1, % 4.5% 4.4% 4.0% 3.8% 3.5% Percentage increase 3.0% 2.5% 2.0% 1.9% 2.5% 2.1% 2.0% 1.5% 1.0% 0.5% 0.6% 0.8% 0.0% Salaries, Wages & Benefits $1076K Utilities & Other Building Costs $259K Fuel, Parts & Repairs $16K Purchased Services & Operating Supplies $57K Administrative Costs $172K Grants $127K Inflation on expense groupings 2015 CPI Forecast 2015 Actual MPI Note: theoretical MPI was estimated at 2.4% 35

36 Impacts of Fuel Prices The 2015 budget was prepared in the fall prior to the unforeseen decline in fuel prices The Town s consumption of fuel is split 30% unleaded and 70% diesel The 2015 budget reflects a rate of $1.13/litre

37 Impacts of fuel prices Fuel prices experienced in 2014: Unleaded Diesel Weighted average 2014 Average price $ 1.05 $ 1.09 $ Maximum price - Jun/Jan $ 1.18 $ Minimum price - Dec $ 0.80 $ 0.94

38 Operating Budget Prior Year Decisions - $619K Deferred $400K of the reduced Whitby Hydro revenues to 2015 using the one time reserve fund in new positions must now be included for a full year. This results in an additional cost of $175K Also deferred the AVL costs of $44K to 2015 using the insurance reserve fund 38

39 Operating Budget Other Budget Adjustments Growth, Service Level and Capital impacts: $000's Growth related pressures (eg streetlighting) 115 Loss of handi-transit vehicle maintenance contract 68 Reduced recreational programming demand 33 ON1Call Program 75 Other

40 Operating Budget Impact 000's Tax Impact Inflation $1,707 Prior Year Decisions 619 Other Budget Adjustments 277 $2, % 40

41 Our Challenges/Opportunities Growth % 86,475 people 26,894 households 801 kilometers of roads 36% 84% 131,360 people 43,559 households 1,092 kilometers of roads 23,400 garbage collections per week 43,150 garbage collections per week 41

42 Our Challenges/Opportunities Growth % 583 acres of parks 961 acres of parks 87,315 sq. feet of Gardens maintained 117% 189,477 sq. feet of Gardens maintained 40% 606 Full Time 434 Full Time Equivalent Staff Equivalent Staff 42

43 Operating Budget Efficiencies Departments from across the organization have identified operating budget reductions totaling $301K 43

44 Operating Budget Revenues User fee increases and other revenue adjustments produce an additional $283K Whitby Hydro has forecasted that the 2015 dividend to the Town will remain the same at $4.9M 44

45 Building Permit Revenue Reserve Fund A Building Permit Revenue Reserve Fund was established as part of the Town s 2005 review of Building Code revenues (also known as BRAGG). This reserve fund was created to stabilize service delivery during periods of economic downturn. In years where building permit revenues exceed the full cost of Building Code Enforcement the excess revenues/surpluses are transferred to the reserve fund. In years when building revenues are less, the reserve fund is drawn on to avoid a tax impact. Since 2009 the poor economy has affected building permit revenues and the reserve fund is expected to sit at ($2.2M) by the end of Due to ROPA 128 settlement, it is anticipated that 2015 will continue to have less building permit revenues than expenses and a further estimated $0.4M loan from the one time reserves is proposed 45

46 Operating Budget One Time Costs The 2015 operating budget includes one time costs of $703K and include: Transfer to Building Permit Reserve Fund, $442K (internal loan) Short term pressure in supplementary revenue due to low growth over next 2 years, $134K Contract Energy Manager net of OPA grant, $20K Temporary operating costs for 300 King Street property, $30K Professional assistance for one time projects including Business By-law review, Health and Safety Initiatives, $20K Implementation costs associated with replacing HRIS/payroll system, $30K Other miscellaneous one time costs, $26K These costs will be funded by one time reserves and therefore does not have a tax impact. 46

47 Operating Budget Impact 000's Tax Impact Inflation $1,707 Prior Year Decisions 619 Other Budget Adjustments 277 $2, % Increased Revenues and Efficiencies -584 One time costs funded by one time reserves 0 Operating Budget Impact $2, % 47

48 What Is Not Included in Draft 2015 Budget Items removed due to time limited nature: 1) New summer playground program offered in 8 local parks with no user fee was delivered in 2014 and funded by one time provincial grant - $60K 2) Food Truck Frenzy assistance for start up year funded by one time reserves - $3K Items added recently at Council 1) Food Truck Frenzy - $7K 2) Building Division vehicles - $0K 48

49 Capital Budget Taking Care of Our Assets The delivery of Core Services to the community requires considerable infrastructure and equipment. The Town utilizes assets with an estimated value of $2 billion to deliver its Core Services. 49

50 Variety of Assets ($2 Billion in value) 1,092 km of Roads 23 Bridges 525 km of Sidewalks / Multi- Use Pathways 11,853 Street Lights 31 Traffic Signals 85.3 km of Fencing 38 Municipal Parking Lots 492 km of Storm Sewers 40 Storm Water Management Ponds 23 Town Facilities Other Town Owned Property 46,136 Road Right of Way Trees 961 acres of Parkland 1,357 acres of Open Space 72.05km of Leisure Trails 126 Parks Fleet and Equipment including: 13 Fire Trucks 23 Garbage Trucks 26 Vans / Cars 86 Trucks 6 Cranes 12 Plows 20 Pieces Heavy Equipment 26 Trailers 8 Zambonis Other Miscellaneous Equipment 50

51 Taking Care of Our Assets Timely maintenance of assets is required to: Minimize capital costs infrastructure deteriorates on a pay me now or pay me much more later basis Avoid service interruptions and additional operating costs 51

52 Taking Care of Our Assets The annual capital maintenance envelope allows the Town to best manage our assets. The maintenance projects in the budget are determined by priority based on inspections / condition assessments / community needs. Based on priority, projects are balanced within the annual envelope. 52

53 Taking Care of Our Assets The annual envelope is adjusted each year due to: Inflation - Stats Canada and other price indexes are used to guide an annual inflation index for each category in the envelope. i.e. Roads may be experiencing a different inflationary pressure compared Computer Equipment Additional assets - Assumption of additional assets, and new acquisitions required to maintain existing service levels. (Based on the most recent audited financial data.) 53

54 Taking Care of Our Assets Periodically the envelope is adjusted for: Comprehensive business cases / Updated Asset Management Plans Town purchasing experience / Unexpected purchasing savings (Adjustment of $1.2 million was taken in the 2014 Budget) 54

55 2015 Capital Maintenance Envelope Budget Section 2014 Envelope Acquisitions / Assumptions Inflation Draft 2015 Envelope Parks and Facilities $ 2,004,626 $ - $ 60,139 $ 2,064,765 Roads and Roads Related Infrastructure $ 8,528,166 $ 244,281 $ 259,268 $ 9,031,716 Alternate Transportation Systems $ 812,490 $ 39,795 $ 25,569 $ 877,854 Storm Water $ 598,126 $ - $ 17,944 $ 616,070 Vehicles and Equipment $ 4,433,068 $ 1,573 $ 117,583 $ 4,552,224 Studies, Intitiatives etc. $ 790,433 $ - $ 20,340 $ 810,773 $ 17,166,909 $ 285,649 $ 500,843 $ 17,953,402 55

56 Capital Budget Providing for Growth The growth related needs of the Town of Whitby were last identified in the 2012 Development Charge Study. The cost of these capital projects is funded partially through Development Charges and partially from tax revenue. 56

57 Tax-based Cost Implications of Growth ( ) 10-YEAR GROWTH FORECAST 38,315 persons (30,970 net) 13,350 housing units 16,610 employees 12.1 million sq.ft. GFA 10-YEAR CAPITAL GROWTH PROGRAM $344 million INDIRECT OPERATING COSTS (net of user revenues) $23.7 million ( ) DIRECT OPERATING COSTS (net of user revenue) $20.6 million ( ) LIFECYCLE REPLACEMENT COSTS $38.2 million ( ) TOWN PORTION OF CAPITAL GROWTH PROGRAM $123 million ( ) $83 MILLION TO BE PAID BY TAXPAYER (Figures 5 & 6) COSTS TO BE PAID BY TAXPAYER (Figure 2) Source: Watson & Associates Fiscal Impact of Growth, September 10, 2012 Presentation H:\Whitby\[fi - implications of grow th.xlsx]op exp 57

58 Number of Households 60,000 50,000 40,000 30,000 20,000 10,000 The current forecast shows a 2 to 3 year delay in the Town's expected growth, when compared to the 2012 DC Study Growth Forecast. This has resulted in lower than expected Development Charge Collections and Assessment Growth. As a result, Staff have postponed projects in the Capital Forecast to better reflect the growth need based on certain population / household levels Historic & Revised Forecast DC Study Forecast 58

59 Development Charge Collections $14.00 $13.28 $12.00 $10.00 $10.49 $12.02 On average ( ), the Town has collected only one third of the expected development charges for that timeframe. $8.00 $ % of the expected residential DC's and 8 % non-residential DC's have been collected. $4.00 $2.00 $3.55 $3.05 $4.40 Staff will be reviewing and updating the DC Study in using a revised growth forecast. The delay in growth has been attributed to ROPA 128 and the economy. $ Development Charge Background Study Forecast Total Actual Collections 59

60 Providing for Growth Growth related capital projects are new infrastructure and assets required in order for the Town to maintain service levels as the Town s population increases. The Town utilizes assessment growth to fund its share of the growth related capital projects. The Town s funding requirement is forecasted annually to ensure the identified ten year projects are financed based on a stable funding methodology. On average from 2012 to 2014 the Town has directed 44% of the available assessment growth towards funding its share of the capital growth projects in the 2012 Development Charge Study 60

61 The Assessment Base Assessment Growth Last year s taxable assessment Plus: new properties added Less: appeals, vacancies, etc. Equals: this year s taxable assessment 61

62 Funding Growth Related Projects with Assessment Growth Thousands Assessment Growth to Fund Growth Related Capital Projects On average, from 2012 to 2014, the Town directed 44% of the available Assessment growth to fund the its legislated share of growth. For the 2015 Capital forecast, it is assumed that starting in 2016 this ratio will continue (at minimum). The Town could choose in future years to increase this contribution as a way to forgo potential long term debt ,009 1,009 1, Existing Contribution Future Assessment Growth 62

63 $50 $40 Comparison of Growth Reserves with Various Assumption % $30 $20 $10 Recommended Assessment Contribution Range: 44% - 100% dedicated to the Capital Growth Program. Million $ $10 -$20 Forecasted Long Term Debt Requirement To address cash flow timing on the forecasted capital growth related projects, long term debt will be required. -$9 The current shortfall for Development Charges is $45.1 Million by $30 -$40 -$50 The shortfall in the Growth Reserve Fund (which funds the Town's share of capital growth projects), is based on the amount of Assessment Growth contributions allocated to fund the program. If 100% is contributed the maximum shortfall would be $8.8 Million in If only 44% is contributed the shortfall would reach $29.2 Million in $29 -$45 Growth Reserve Fund with 100% of Future Assessment Growth 2012 Development Charge Reserve Funds Growth Reserve Fund with 44% of Future Assessment Growth 63

64 Providing for Growth Similar to other growing municipalities, the forecast indicates the Town will need to issue select long term debt to finance certain growth related projects. The amount of long term debt needed for cash flow purposes is impacted by 1) the amount of Assessment Growth dedicated to funding the growth related capital program annually and 2) the timing of the larger growth related capital projects. 64

65 Providing for Growth Any future growth related long term debt would be repaid entirely from Development Charges and Assessment Growth no additional tax increase for debt 65

66 Future Growth Related Long Term Debt Operations Centre Expansion (Phase 1, 2016, Phase 2, 2020 to 2021, Phase 3, 2023) Town Hall Expansion 2020 to 2023 Brooklin Indoor Recreational Facility 2020 to 2023 Future Fire Hall/Training Complex 2022 to2023 Heydenshore Pavilion Renovations/Addition 2022 to

67 2015 Capital Budget $25.1M by Project Type Other, $0.9, 3% Growth, $4.9, 20% Maintenance, $19.2, 77% 67

68 Capital Other Projects The 2015 Capital Budget includes 3 Other (ie not maintenance or growth related) projects previously approved by Council: Emerald Ash Borer - $770 This is the second year of a multi-year plan to address the damage caused by the Emerald Ash Borer to the Town s trees. In 2014 Staff brought forward an update report that included revised costing. These costs have been included in the 2015 Capital Budget/Forecast Funding for this plan comes from a one time reserve China Investment Attraction and Trade Strategy - $70 This is the second year of a four year, $250,000 strategy previously approved by Council Funding for this plan comes from the one-time reserve Downtown Façade Improvement Program - $40 This is an ongoing program for Façade improvement grants for the Town s Downtown areas. Funding for this plan comes from a specific program reserve. The program reserve is funded annually through a contribution from the Operating Budget. 68

69 2015 Capital Budget $25.1 Million by Asset Type $1.0, 4% $3.9, 16% Facilities and Parks $5.3, 21% Roads and Roads Related Alternate Transportation Systems $1.5, 6% $2.4, 9% $10.9, 44% Storm Water Vehicles and Equipment Studies, Intiatives and Reserve Transfers 69

70 2015 Capital Budget $25.1Million by Financing Source $0.4, 1% $0.6, 3% $0.9, 4% Maintenance Reserves * $4.2, 17% Growth Reserves (tax based) Development Charges $0.8, 3% $17.9, 72% Program Reserves (user fees, tax based, donations) External Funding (grants, other recoveries) One-Time Reserves (surplus) * The Maintenance Envelope of $17.9M is financed $14.4M from the tax base and $3.5M from Federal Gas Tax 70

71 Budget Impact (000's) Tax Impact Capital Budget Maintenance Envelope 786 Growth Program Funded By Existing Assessment Growth $ - Contribution no additional funding in 2015 One-Time Reserves $ - Capital Budget Impact % Operating Budget Impact $ 2, % Total Budget Impact $ 2, % 71

72 Reserves 72

73 Reserve Balances ($117.1M) Based on proposed 2015 Budget Maintenance Reserves $3.8 Million (Available With Some Restricted Usage) Growth Reserves $83.9 Million ($64.1 M Development Charges, $19.8 M Growth Reserve) (Earmarked for a Specific Purpose) Program Reserves $20.2Million ($9.7 M One-Time Funds Available, $10.5M Earmarked for a Specific Purpose) Stabilization Reserves $9.2 Million (Earmarked for a Specific Purpose) 6.9% of gross expenditures 73

74 Estimated Year End Reserve Balances $70.0 $65.0 $60.0 $55.0 $50.0 $45.0 $40.0 $35.0 $30.0 $62.6 $64.1 $25.0 $20.0 $17.8 $19.8 $15.0 $10.0 $5.0 $3.8 $3.8 $11.1 $10.5 $9.8 $9.8 $9.2 $9.2 $- Maintenance Reserves (incl Federal Gas Tax) Growth Reserve Development Charges Program Reserves One-Time Reserve Stabilization Reserves Estimated Year End Balance 2014 Forecated Year End Balance

75 One Time Funds The Long Term Finance Reserve Fund is also referred to as the One-Time Reserve Fund Its usage and funding sources have been defined in the Council approved policy # F030 (2013) It is a discretionary program reserve that can be utilized as a source of funding for approved one-time or nonrecurring items and long term debt payments as approved by Council. Funded by any operating surplus and any capital maintenance reserve surplus No ongoing sustainable funding source. 75

76 How to Reduce the 2015 Tax Impact 76

77 Maintain 2014 Gapping $350K Typically the Town experiences salary and benefit savings due to vacant positions during the year. These savings are estimated at each quarter and reported in the quarterly projection reports throughout the year. These savings become part of the year end surplus. The Town s surplus policy directs the surplus (one-time revenues) to the long term finance reserve fund. 77

78 Vacancy Savings as a % of Total Salaries, Wages and Benefits Budget 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 $934K 2010 $342K 2011 $864K 2012 $1332K 2013 $182K 2014 Projection $971K 2015 Budget $350K Note: Vacancy savings exclude amounts offset to program reserves but includes pressures resulting from greater than budgeted overtime. Net savings are stated in each year's respective dollar amounts. 78

79 Assessment Growth - $535K Change in the tax roll during 2014 results in a net increase of $535K additional tax revenue from assessment growth (ie new properties, change in assessment value due to additions/renovations to existing properties or changes in assessment value (+ or -) due to ARB decisions. Due to the shifting of growth projects to match the delay in growth, the $535K assessment growth is being directed to operating this year as the existing contribution and a portion of all future assessment growth beginning 2016 along with debt will fund the Town s portion of growth related projects. 79

80 Federal Gas Tax - $133K The Town s share of the Federal Gas Tax has increased by $133K based on recent redistribution between provinces reflecting population changes. This increased funding will be directed to the Town s capital maintenance program as per the Federal Program requirements. Note the Federal Gas Tax redistribution is done periodically and Whitby s share could decrease in the future based on population growth averages. 80

81 WSIB 2015 premium rate released in December reflects an unanticipated increase of 29%, an impact of $124K. Only rate group to have an increase, due to the expanded coverage under the presumptive legislation for firefighters. WSIB True Up History 2014 $333K 2013 $126K 2012 $73K 2011 $60K 2010 ($180K) Report will come forward recommending that rebates be directed to a WSIB contingency reserve to be used as a funding source for unanticipated premium increases or retroactive charges. 81

82 Recommended Positions ($ in 000's) Ongoing Annual Impact FTE 2015 Impact 2016 Impact Corp Services Buyer $ $37 $37 Fire Convert Part Time Clerk to Full Time $ $31 $10 Planning Executive Assistant $ $51 $51 Planning Planner I - Downtown and Heritage $ $43 $43 Planning Program Assistant - Marketing and Events $ $12 $12 CMS Manager of Facilities $(178) (1.00) $(125) $(53) CMS Manager of Facilities (Arenas, Community Centres) $ $98 $42 CMS Manager of Facilities (Capital Project) $ $93 $40 CMS Summer Student - Parks Development $ $12 Public Works Labourer/Equipment Operator Grade II $ $41 $41 Public Works Summer Student - Parks Horticulture $ $13 Public Works Part Time Road Patroller $ $21 $21 Public Works Crossing Guard $ $6 $6 Public Works Conversion of Parks Labourer* $ $33 Total Recommended Budget Changes $ $365 $247 Tax Impact where 1% = $718K 0.85% 0.51% 0.34% * Conversion of position from 9 month to 12 month as per report PW 2-15

83 Summary 000$ Tax Impact Operating Budget 2,019 Capital Budget 786 Budget Impact 2, % Budget Reduction Recommendations -668 WSIB - funded by contingency reserve 0 Recommended positions 365 Budget Impact 2, % 83

84 Tax Payer Impact 84

85 Government Tax Dollars Federal 47% Ontario 44% Municipal 9% Source: AMO, % - Region 3% - Town 1% - Education 85

86 Town of Whitby Portion of Tax Bill 1% for Town = $718K 1% for average Taxpayer = $

87 Projected 2015 Taxes Average Home Assessed at $339, Increase 2015 Town (32%)* $1,421 $50 $1, % Region (53%)* $2,396 $24 $2,420 1%** School (15%)* $690 $0 $690 0%*** Total $4,507 $74 $4,581 Total Overall Tax Increase 1.6% * portion of total tax bill ** assumes 1% target tax increase *** assumes 0% tax increase 87

88 Average Town Tax Bill per Month Compared to Other Household Expenses Region Tax Bill Phone/Cable/ Internet Bundle $177 $202* Town Tax Bill $122 $122 Fire ($30/month) Waste Services ($6/month) Transportation Network ($40/month) Community Programs, Events, Library and Station Gallery ($16/month) Community Facilities, Parks & Trails ($16/month) Corporate Governance & Other ($14/month) Hydro $121 Water & Sewer $71 *Police, EMS, Transit, Public Health, Long-Term Care, Regional Works 88

89 What Taxpayers Receive for their 2015 Town Taxes of $1,463* Station Gallery: $9 Special Events and Grants : $10 Sustainability, Heritage, Downtowns and Community Development and Economic Development: $24 By-Law and Animal Services: $30 $8 $1 $10 $19 $5 $28 $2 The capital budget allocated to various services fluctuates year-to-year based on current capital program requirements (ie. life of equipment, age of fleet, building maintenance schedule, etc) Building, Planning & Development Services: $32 $26 $6 Operating Capital Winter Control: $56 $56 Community Programs : $70 Waste Management: $71 Corporate Governance and Administration: $82 $57 $54 $66 $13 $17 $16 Public Library Services: $105 $91 $14 Facilities, Parks and Trails: $192 $150 $42 Fire and Emergency Services: $357 $338 $19 Roads, Bridges, Sidewalks: $425 $227 $198 * based on a house assessed at $339,900 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 89

90 What Does a Taxpayer Receive for their 2015 Town Taxes of $1,463? Roads, Bridges and Sidewalks - $425 Maintenance of 1,092 lane kilometers of paved roads, 525 kilometers of sidewalks/multi-use pathways, 85 kilometers of fencing, 492 kms of storm sewers, 40 storm water management ponds, 23 Bridges, 21 culverts (>3m), 11,853 street lights, and 31 traffic signals Parking Services responded to 1,700 complaints in 2014 and provides 274 metered on-street parking spaces along with 541 off-street pay-and-display parking spaces Fire and Emergency Services - $358 24/7, 365 days a year 5 stations providing 3 primary services Fire Prevention, Public Education and Emergency Response Facilities, Parks and Trails - $191 Maintenance of 121 parks, 950 acres of park land, 69 kms of leisure trails, 98 sports fields, 28 tennis courts, 128 playgrounds, 13 splash pads and 3 skateboard parks Maintenance and operation of 3 arena complexes (10 ice pads and pool), 6 community centres, Municipal building and other Town-owned properties 1,188,880 hours of arena and sports fields programming 90

91 What Does a Taxpayer Receive for their 2015 Town Taxes of $1,463? Public Library Services - $105 Over 1.1 million visits to the Library s 3 physical locations and virtual branch which is available 24/7 Over 1,600 programs offered reaching more than 34,000 participants, including early literacy programs which pave the way for student success Collection of over 321,000 print, electronic, and audiovisual formats with a total circulation of 1.6 million Registered 6,500 new members in 2014 Corporate Governance and Administration - $82 Includes Mayor and Council, Chief Administrative Office, Human Resources, Legal Services, Finance, Clerk s Services and Information Systems 91

92 What Does a Taxpayer Receive for their 2015 Town Taxes of $1,463? Waste Management - $72 42,763 weekly garbage, organics, and yard waste collection 10,626 special collections in 2012 Whitby residents divert 60% of waste every year through weekly recycling (Region of Durham) and organic pickup (Whitby) Community Programs - $70 1,470,978 hours of recreational, fitness and aquatics programs for youth, adults and seniors Maintenance of Fitness Centre including pool Winter Control - $56 Clearing of 1,092 kms of roads, 298 kilometers of sidewalks/multi-use pathways and 38 municipal parking lots Snow and windrow clearing services for seniors and the disabled (over 750 locations) 92

93 What Does a Taxpayer Receive for their 2015 Town Taxes of $1,463? Building, Planning and Development Services - $31 Good planning ensures controlled growth areas to protect and conserve residential neighbourhoods and commercial/industrial lands as well as the preservation of parkland and natural heritage areas Enforcement of the Ontario Building Code ensures safe, healthy, accessible and sustainable buildings. By-Law and Animal Services - $30 By-law Services responded to 2,060 complaints and issued 433 permits in 2014, achieving a compliance rate of 98.5%. Additionally, By-law Services administered the development and implementation of a new Property Standards By-law, Noise By-law and Towing By-law in response to community needs. Animal Services provides animal care and control services to the citizens of Whitby. In 2013, 74% of sheltered animals were adopted, claimed or rescued. 93

94 What Does a Taxpayer Receive for their 2015 Town Taxes of $1,463? Sustainability, Heritage and Downtowns Community Development and Economic Development - $25 Working closely with businesses, business associations, residents, and other stakeholders in the community to build a prosperous and diversified economy through corporate and community sustainability initiatives Establishing vibrant and safe downtowns, and preserving and advancing Whitby s heritage and cultural resources Economic development services focused on business retention and expansion and investment attraction for job creation, at an annual cost of $8 per household Special Events and Community Grants - $10 56 Community Special Events Grants to community partners and tax relief programs Station Gallery - $9 39,000 annual visitors 14,200 program participants 94

95 The Budget Cycle and Timeline Budget analysis and preparation Quarterly Projection Reporting Council Education Jan 21 Council Approval Feb 26 Target Setting Meeting Jan 26 Budget Committee review, public input Feb 12 Preliminary Budget Book Feb 5 95

96 Other Municipalities Projected Tax Increases Lower Tier Oakville Release Feb 19, Council Mar 23 Markham Release Jan 23, Council Mar 31 Ajax 2.75% est. Release Jan 26, Council Feb 9 Milton 5.50% January? Brampton Feb Release - Council Apr? Whitby 2.98% Proposed - Council Feb 26 Clarington 3.75% - est. March 3 Pickering 3.75% - est. March? Burlington 3.55% Proposed - Council Feb 23 Mississauga 4.40% Proposed - Council Feb 11 96

97 DISCUSSION AND QUESTIONS 97