2016 Budget Presentation. Presentation to Estimates Committee December 8, 2015

Transcription

1 2016 Budget Presentation Presentation to Estimates Committee December 8, 2015

2 2016 Capital Budget & 10-Year Forecast

3 Summary of Plan by Commission Commission 10 Year 2016 Only Public Works $705M $63.4M Community Services $ 64M $8.4M Public Health, Safety & Social Services $ 47M $3.5M Corporate Services $ 8M $0.8M TOTAL $824M $76.1M 3

4 How Capital Plan is Funded 10 Year 2016 Only Development Charges $175.8M $5.9M Gas Tax $60.9M $8.3M Reserve Funds $344.6M $48.4M Other/Third Party $26.9M $1.4M Additional Capital (1.5% levy & $1M Casino contr) $143.1M $8.4M Casino Reserve Fund $4.7M $3.1M Council Priorities Reserve Fund $0.5M $0.5M Debt $67.3M $0.1M TOTAL $824M $76.1M 4

5 Available Debt Capacity over 10 Year 18,000,000 17,000,000 16,000,000 15,000,000 $2.1M in annual repayment room = $25M debt capacity 14,000,000 13,000,000 12,000,000 Annual Repayment Limit Current and forecasted repayment Current Annual Commitments 11,000,000 10,000,000 9,000,000 8,000,

6 Operating Impact of Increased Debt PROJECT YEAR AMOUNT OP IMPACT Accommodation Strategy Phase 3 New Administrative Facility 2017 $8,540,641 Fire Station 2 Relocation 2017 $2,511,409 Market Parkade Rehabilitation and Repairs 2017 $3,000, % Accommodation Strategy Phase 3 New Administrative Facility 2018 $2,690, % Clarence Street Improvements (Colborne to West) 2020 $4,000, % New Library Branch 2021 $3,044,570 Clarence Street Improvements (Colborne to West) 2021 $10,000, % Development of Stage 3C/D/E of the Landfill-Phase 1, 2 and 3 (Pre-Eng & Approvals, D, C) 2022 $3,750,000 Erie Ave (Cockshutt) Bridge Rehabilitation Over Grand River 2022 $7,000, % Oak Park Road Extension (from Hardy Road south to 2025 Colborne Street) $20,991, % TOTAL TAX SUPPORTED $65,529, % 6

7 User Rate Supported Debt PROJECT YEAR AMOUNT Northridge Bunker Reshaping/Drainage/Sand Replacement 2016 $100,000 Arrowdale Golf Course Facility Interior & Exterior Repairs including Mechanical Upgrades 2017 $45,000 Airport Additional T Hangar Installation 2017 $531,000 Arrowdale Golf Course Facility Interior & Exterior Repairs including Mechanical Upgrades 2019 $45,000 Northridge Golf Course Roof and Roof Top Equipment Replacement 2019 $350,000 Northridge Interior Renovations (Fire System, Electrical & Mechanical Repairs & Replacement) 2019 $50,000 Northridge Interior Renovations (Fire System, Electrical & Mechanical Repairs & Replacement) 2020 $584,000 Arrowdale Golf Course Facility Interior & Exterior Repairs including Mechanical Upgrades 2021 $45,000 TOTAL RATE SUPPORTED $1,750,000 7

8 How Capital Plan is Funded Success of 10 Year Plan is dependent on the following assumptions: Council continues to endorse a 1.5% net capital levy annually $1M of Casino is allocated to Capital annually DC s are collected at the level forecasted in the study The Capital Plan is fully funded for what is in the 10 Year Plan, minimal amount of funding for out of budget approval of projects 8

9 2016 Operating Budget

10 Overview 2016 Budget = $132.89M 2015 Budget = $128.47M $4.4M increase or 3.44% 10

11 Overview Commission 2015 Budget 2016 Budget Incr/(Decr) Mayor & Council $0.59M $ 0.56 M (4.21)% CAO $1.00M $ 1.04 M 3.66% Public Health, Safety & Social Services $74.77M $ M 0.43% Community Services $14.39M $ M 2.23% Public Works $21.13M $ M 4.51% Corporate Services $8.79M $ 8.91 M 1.43% Corporate Finance $7.80M $ M 34.42% Total $128.47M $132.89M 3.44% 11

12 Overview Portion of Overall Budget Increase 2016 Budget Increase 3.44% 1.5% Capital Levy (1.50%) Day to Day Operating Budget Increase 1.94% 12

13 Meeting The Target

14 Overview Day to Day Operating Budget Increase 1.94% Less: Impact of Assessment Growth (0.73%) Budget Increase after assessment Growth 1.21% Target Established by City Council (1.00)% Reductions Needed to Meet Target 0.21% 0.21% equals $279,332 14

15 Proposed Fee Increases Department Description Tax Supported Reduction Parks Kiwanis Field Rentals $85,000 Engineering Services Engineering Services Committee of Adjustment Review Fee $15,000 Increase Parking Fines $42,000 Wastewater Pre-Installed Sanitary Sewer Laterals $0 Facilities & Asset Management Operational Services Operational Services Farmer s Market Stall Rental 5% increase $0 Increase Street Cut Restoration Fee $56,882 Shopping Cart Retrieval/Return $250 Transit Transit Fare Increase (non-cash) 5% increase $56,250 Finance Purchasing Bid Document Fees $14,200 TOTAL $269,582 15

16 Proposed Service Level Reduction Department Description Amount Solid Waste Elimination of Backyard Composter Truck Load Sale Event Day $9,750 16

17 Impact on Forecasted Budget if all Approved Previous Reductions Needed to Meet Target $279,332 Less: Proposed Fee Increases (269,582) Less: Proposed Service Level Reduction (9,750) Revised Reductions Needed to Meet 1% Target 0 Average residential tax increase at target is $

18 Commission Budgets

19 Tax Supported Efficiencies Previous 5 years: $3,571, $613,067 19

20 Public Health, Safety & Social Services Department Incr/(Decr) Explanation Ontario Works Housing Child Care (8.07%) ($444K) (0.20%) ($18K) 0.42% $4K $563K upload of general assistance costs Gross GA expenditure increase City portion of cost share based on caseload has increased Neighbourhood Hub 3 yr funding ended ($92K) Non Profit provider mortgage renewals and discharges ($197K) LHC properties repairs and mtce increase significantly City portion of cost share has increased Total (2.94%) 20

21 Public Health, Safety & Social Services Department Incr/(Decr) Explanation Fire Police 1.07% $177K 1.94% $580K No wage increase for 2016 consistent with police contract Some wage and retention grid movement No wage increase for 2016 based on current contract Some wage and retention grid movement 5 new FTE s (2 back ended 2017 impacts) approved by Board and built into budget $261K New fee for false alarms offsetting increases $175K Total 1.63% 21

22 Public Health, Safety & Social Services Agencies Incr/(Decr) Explanation Library Brant County Health Unit Ambulance John Noble Home St. Joe s Lifecare Other Outside Agencies 1.49% $62K 2.00% $45K 0.93% $31K 2.58% $55K (25.00)% ($172K) 2.08% $1.6K Total 0.18% Inflationary and staff compensation increases Staff compensation increases Increased provincial funding offset inflationary increases LTC has only increased 1.55% Annualization of debt payment for the B&C bed upgrade offset by increased provincial funding Reduction as per agreement to phase out funding $172K is transferred to JNH capital envelope in corp finance as per council resolution Minimal incr to police board honorariums & 911 phone system 22

23 Public Works Department Incr/(Decr) Explanation Operational Services Engineering Services Environmental Services Facilities & Asset Management Fleet & Transit Services 4.87% $406K 2.02% $59K 8.50% $173K (0.25)% $(5.6K) 5.75% $319K Increase in winter road salt - $131K based on 5 yr avg Fleet Charges $102K Employee compensation $104K Streetlight electricity $49K Parking fee decrease $44K offset by $23K from Council priorities for one hour free and $35K service delivery efficiencies Waste and Yardwaste collection contracts $97K Landfill Site Operations contract $35K Waste Diversion contract down ($55K) Lower sales or recyclable material -$160k offset by increased Stewardship Ontario grant ($77K) Corp Admin prop savings ($28K) offsetting increased costs for Corp Commercial properties $15K & Admin $10K Fleet $85K Fare revenue decrease $85K Loss of Tim Horton s rental $55K Wage increases based on contract $97K Total 4.51% 23

24 Corporate Services Department Incr/(Decr) Explanation Human Resources Legal & Real Estate Clerks Finance 2.27% $31K 3.04% $17K 10.29% $140K (5.37%) ($154K) Manulife recoveries down $50K Utility recoveries down $38K (BPI zero quest program done) Annualization of full time Municipal Accessibility Coord. approved in $15K Offset by removal of one-time costs $(75K) approved in 2015 Legal budget down 2.4% ($22k) due to increased OH POA budget up 10.38% - $39K City share of increased Adjudication & Prosecution costs as set by the province and increased OH charges Animal control SPCA contract increased $100K in addition to $15K less animal control revenue Other revenues combined down $14K Employee compensation $30K Increased OH recoveries ($20K) Staffing reduction Purchasing $(62K) Payroll reduction FT to PT ($24K) Increased overhead recoveries $(60K) Postage savings from reduction in AP cheques $(17K) IT Services 3.50% $92K Total 1.43% Annual hardware mtce & licencing costs increasing $38K Decreased utility recoveries $29K Employee compensation $39K Increased overhead recoveries ($14K) 24

25 Community Services Department Incr/(Decr) Explanation Parks 4.87% $297K Fleet charges increased $99K Employee compensation $78K Loss of Brantford Power recoveries re: Tree Maintenance $42K Tree Planting reserve depleted no offsetting contribution to offset costs $30K Water consumption $18K Recreation 3.28% $133K WGSC increase only 1.75% - increased fees offsetting increased utility, repairs & maintenance, and fleet increases Lion s Arena increase 37.23% or $22K - $11K electricity and $11K part-time wages & OT to reflect actuals Civic increase 4.32% or $31K $17K council approved transfer of OLG parking revenues to reserve, remainder is electricity Golf 0.00% Rate supported Increased revenues from increased early approval fees offsetting higher costs, including cost of borrowing for 2016 capital project Net transfer to reserve budgeted at $42K vs $37K in 2015 Planning (0.78%) $(12K) Many new staff starting lower in the pay grid than previous incumbents 25

26 Community Services Department Incr/(Decr) Explanation Building (0.21%) $(1.5K) Building Services is rate supported no impact Property Standards fees budgeted to decrease $4K offset by savings expected from slight shift in wages/benefits to the rate supported unit Ec Dev & Tourism (6.55%) $(91K) Elimination of a position resulted in $95K employee compensation reduction for Economic Development Sanderson (0.63%) $(4K) Increase in rental revenues resulting from changes to priority booking procedures made in 2015 offsetting increase wage and utility costs Total 2.23% 26

27 Mayor/Council/CAO Department Incr/(Decr) Explanation Mayor Council (6.11%) $(17K) (2.55%) $(8K) Decreased salary expenses Increased OH recoveries Increased OH recoveries partially offset by increase to meals Total (4.21%) CAO 3.66% $37K Decreased OH recoveries $29K, increased education $12K, Communication Prof Services $17K Offset by annualized savings from elimination of FT Communications Specialist Total 3.66% 27

28 Corporate Finance Department Incr/(Decr) Explanation Supps/PILS/Adj to Taxes Investment Income Retiree Benefits Capital/Debt Financing Operating Contingency (12.46%) $(464K) 0.36% $5K 20.09% $198K 18.95% $2.23M 68.75% $293K Casino Assessment phase-in increasing PIL s Based on forecasted cash balances and rates Increased number of retirees Council approved 1.5% capital levy = $1.93M Incr JNH capital to offset decr contribution to St. Joe s = $172K Annualization of Garden Ave Debt = $135K Increase budget to reflect actuals FTE Bank Unified Communications $(150K) Expected operating efficiencies from Unified Communications Utility Financing Insurance 21.44% $390K 7.80% $178K Promissory notes issued to BPI and BHI expire Feb 1, New interest rate is lower Premiums decrease coupled with decreased OH recovery Claims increase $260K resulting from deductible doubling. Total 34.42%

29 Unmet Needs

30 Unmet Needs Unmet Needs total $2,132,034 for new city FTE s and 25 Ambulance FTE s Equates to 1.66% operating budget increase Incremental Impact in 2017 = $354,190 or 0.28% 30

31 Mandatory Types of Unmet Needs Legislatively required Council Initiated Resulting from council approval of items in-year and are outside of normal staff activities and budget approval Staff Recommended Required to maintain, improve or enhance levels of service 31

32 Budget Task Force Recommendation Budget Target 1% Capital Levy 1.5% Mandatory Unmet Needs Council Initiated Unmet Needs Total Budget Increase 2.84% 0.34% Average Annual Residential Tax Increase - $81.46, or $0.22 per day 32

33 Unmet Needs - Mandatory Department Description FTE s 2016 Incremental Housing Burford Well Water Testing/Prev Mtce - $28,063 $0 2. Human Resources Health & Safety Specialist 1.0 $58,150 $19, Operational Services 4. Facilities Mgmt Signal Maintenance Electrician Asset Management Specialist and Study 1.0 $63,805 $22, $127,807 (19,637) Total 3.0 $277,825 $22,314 If all mandatory unmet needs are approved, operating budget increases from 1.0% to 1.21%, plus the capital levy increase. 33

34 Unmet Needs Council Initiated Department Description FTE s 2016 Incremental Parks Kiwanis Field Staff 2.5 $75,600 $26, Recreation Special Events Assistant 1.0 $35,475 $14, Operational Services Sod Inspector 1.0 $47,943 $4,647 Total 4.5 $159,018 $45,117 If these unmet needs are approved, in addition to the mandatory needs from the previous slide, the operating budget increase will be 1.34% plus the capital levy increase. 34

35 Unmet Needs Staff Recommended Department Description FTE s 2016 Incremental Ambulance 2. Ambulance Transfer Supervisors to ERV backfill w/ addtn l staff 2 Additional 24/7 Ambulances 4.0 $338,637 $(165,932) 20.0 $884,284 $439, Finance Assessment Review Services - $0 $0 4. Facilities & Asset Mgmt Facilities Management Coordinator 1.0 $68,615 $16, Engineering Services Development Coordinator/ Inspector (incl new fee) 1.0 $0 $0 6. Engineering Services Design Engineer 1.0 $44,521 $15,785 35

36 Unmet Needs Staff Recommended Department Description FTE s Legal Dedicated Admin Support for Municipal Prosecutor Incremental $25,756 $7, Parks Forestry Service-One Additional Crew (contracted service) - $168,750 $36, Parks Turf Crew for New Development 1.5 $48,125 $(14,290) 10. Finance Purchasing Student 0.33 $6,705 $0 11. Mayor s Office Summer Student 0.33 $13,713 $(1,300) 12. Ambulance One Additional Supervisor 1.0 $96,085 $(47,081) Total $1,695,191 $286,759 36

37 Moving Forward

38 Date Timetable for December Approval Item November 12, 2015 Budget Task Force to endorse draft budgets November 16, 2015 Council meeting to approve Budget Task Force report November 26, 2015 Budget documents out to Members of Council December 8, 2015 Open House Presentations December 10, 2015 Presentations cont d.. Delegations Commencement/Finalization of Capital Budget December 15, 2015 Commencement/Finalization of Operating Budget December 17, 2015 If required - Operating Budget finalization December 21, 2015 Approve Capital and Operating Budgets 38

39 Thank You