STRATEGIC INITIATIVES STANDING COMMITTEE AGENDA

Transcription

1 TOWN OF COLLINGWOOD STRATEGIC INITIATIVES STANDING COMMITTEE AGENDA December 7, 2016 Collingwood is a responsible, sustainable, and accessible community that leverages its core strengths: a vibrant downtown, a setting within the natural environment, and an extensive waterfront. This offers a healthy, affordable, and four-season lifestyle to all residents, businesses, and visitors. A meeting of the Strategic Initiatives Standing Committee will be held December 7, 2016 in the Collingwood Fire Hall, 45 High Street, Collingwood commencing at 10:00 a.m. ORDER OF BUSINESS 1. CALL OF STANDING COMMITTEE TO ORDER 2. ADOPTION OF AGENDA THAT the content of the Strategic Initiatives Standing Committee Agenda for December 7, 2016 be adopted as presented. 3. DECLARATIONS OF PECUNIARY INTEREST 4. STAFF REPORTS BMA Report Detailed review of the current financial position, CAO J. Brown (p.3) Budget Overview, Treasurer M. Leonard 3rd Quarter Budget Variance Reporting, Manager of Finance M. Switzer T Investment Policy (p.30) RECOMMENDING THAT the Strategic Initiatives Standing Committee support and refer the following Staff Report to the next regular meeting of Council: Staff Recommendation: THAT Council enact a By-law adopting the Investment Policy; AND FURTHER THAT the Treasurer is authorized to begin the process of including the Association of Municipalities of Ontario Local Authority Services ONE Program as part of the Town s investment portfolio. T Fees and Charges (p.46) RECOMMENDING THAT the Strategic Initiatives Standing Committee support and refer the following Staff Report to the next regular meeting of Council: Staff Recommendation: THAT Council enact and pass the Fees and Service Charges as attached. December 7, 2016 Strategic Initiatives Standing Committee Agenda - Page 1 of 2 1 of 96

2 T Update on Debt Position (p.70) RECOMMENDING THAT the Strategic Initiatives Standing Committee support and refer the following Staff Report to the next regular meeting of Council: Staff Recommendation: THAT Council receive Staff Report T consistent with the Town s Strategic Financial Plan. T Review of Reserves and Reserve Funds (p.83) RECOMMENDING THAT the Strategic Initiatives Standing Committee support and refer the following Staff Report to the next regular meeting of Council: Staff Recommendation: THAT Council receive Staff Report # entitled Review of Reserves and Reserve Funds for information purposes. T Procurement By-law (p.93) RECOMMENDING THAT the Strategic Initiatives Standing Committee support and refer the following Staff Report to the next regular meeting of Council: Staff Recommendation: THAT Council approve the Procurement By-law as attached in Appendix A T Insurance Coverage Review & RFP Award (report to be provided) RECOMMENDING THAT the Strategic Initiatives Standing Committee support and refer the following Staff Report to the next regular meeting of Council: Recommendation: THAT Council receive the results of the Insurance Coverage RFP as provided by Secure Insurance Solutions Group Inc. and recommend proceed with:. 5. CONSENT AGENDA General Consent Items A.1 Collus PowerStream re: Proposal for IT Hardware Purchase (direction required) (p.96) 6. PUBLIC DELEGATION(S) (maximum 5 minutes per delegation)* 7. ADJOURNMENT December 7, 2016 Strategic Initiatives Standing Committee Agenda - Page 2 of 2 2 of 96

3 Assessment of the Town of Collingwood s Financial Health November 23, 2016 Prepared by BMA Management Consul ng Inc. 3 of 96 26

4 Table of Contents Assessment of the Town of Collingwood s Financial Health 1 Growth and Socio Economic Indicators 4 Population Changes 5 Age Demographics and Quality of Life 6 Construction Activity 7 Assessment 8 Household Income 9 Summary Indicators 10 Collingwood's Financial Position 11 Tax Reserves and Reserve Funds 12 Tax Discretionary Reserve Ratio 13 Water and Wastewater Discretionary Reserve Ratio 14 Contingency Reserve 15 Asset Consumption Ratio 15 Debt Indicators 16 Total Debt Outstanding 17 Debt Principal & Interest as a Percentage of Own Source Revenues 18 Debt per Capita 19 Debt Outstanding per $100,000 of CVA 19 Financial Position 20 Taxes Receivable 21 Municipal Levy 22 Levy per $100,000 of CVA 23 Levy per Capita 23 Financial Position Summary 24 Summary Indicators 25 4 of 96 27

5 Assessment of the Town of Collingwood s Financial Health 5 of 96 1

6 Assessment of the Town of Collingwood s Financial Health Financial Health can best be described as a municipality s ability to finance its services on a con nuing basis. It refers to a municipality s ability to: Maintain required service levels Withstand local and regional economic disrup ons Meet the demands of natural growth, decline and change In order to maintain a strong financial posi on, municipali es must be able to con nue paying for services that they presently provide. This includes basic services to the public, maintenance and renewal of capital facili es to protect the ini al investment and maintain facili es in useable condi on It is important to understand the Town s current Financial Health and the external factors that impact the Town s delivery of programs and services. The Town s Financial Health can be best described as its ability to: Trend Analysis The problems that create fiscal challenges seldom emerge overnight, rather they develop slowly, thus making poten al problems less obvious. Analyzing the trends of the Town s key financial performance and socio economic indicators offer several advantages including: It provides informa on on changes in the Town s financial health, revealing the most current trends; It shows how quickly a trend is changing; It will form the basis for future forecas ng; It builds awareness and helps iden fy the poten al need to modify exis ng policies or develop new strategies; and It provides a good indica on of where the Town is heading. Peer Analysis Peer analysis has also been included to gain perspec ve on the Town s financial health. The following table summarizes municipali es which are considered good comparators in terms of popula on growth pa erns and proximity. Achieve its vision as iden fied in the Town s Strategic Plan Maintain required service levels including the maintenance and renewal of capital assets and infrastructure Withstand local and regional economic changes Peer Municipalities Region 2016 Population Innisfil Simcoe 35,843 Orillia Simcoe 31,699 Owen Sound Grey 22,196 Prince Edward County Prescott & Russell UCO 25,698 Springwater Simcoe 19,453 Wilmot Waterloo 21,966 Collingwood Simcoe 21,780 6 of 96 2

7 Compara ve Analysis Each year BMA Management Consul ng Inc. prepares a survey of over 100 Ontario municipali es. The results of this survey have been included in this report. Key financial and socio economic indicators have been included to help evaluate the Town s exis ng financial health and to iden fy future challenges and opportuni es. Industry recognized indicators that are used by credit ra ng agencies and/or recommended by Government Finance Officers Associa on (GFOA) have been included. GFOA is a municipal associa on represen ng best prac ces in North America. GFOA has a commi ee dedicated to addressing Canadian issues and has developed recommended best prac ces from a Canadian perspec ve. GFOA has developed a body of recommended prac ces in the func onal areas of public finance. Monitoring indicators contained in this report over me will reveal the progress and success of the plan and provide an enhanced opportunity to both respond to changing circumstances and to con nually improve the effec veness of the plan. This report also provides recommenda ons to build upon the policies already in place in order to ensure fiscal sustainability and maintain flexibility to address future financial and economic condi ons. Growth and Socio Economic Indicators This includes an evalua on of the Town s growth and socioeconomic indicators which are largely external to the Town s control but important to understand from a planning and forecas ng perspec ve. Popula on Building Construc on Ac vity Property Assessment Household Income Collingwood s Financial Posi on This includes an evalua on of the Town s financial framework upon which the Town operates. These indicators help determine if modifica ons are needed to the Town s exis ng financial policies. Discre onary Reserves Debt Municipal Financial Posi on Taxes Receivable Municipal Levy 7 of 96 3

8 Growth and Socio Economic Indicators Analyzing growth and socio economic indicators provide an overview of the internal and external factors that affect the community. They describe and quan fy a community s wealth and economic condi on and provide insight into the community s collec ve ability to generate revenue rela ve to the community s demand for public services. An examina on of economic and demographic characteris cs can iden fy, for example, the following types of situa ons: These indicators are closely interrelated and affect each other in a con nuous cycle of cause and effect. Also important are the Town s plans and poten al for future development. The diversifica on of the commercial and industrial tax base should be considered for its revenue genera ng ability, employmentgenera ng ability, vulnerability to economic cycles, and rela onships to the larger economic region. An increasing tax base and, correspondingly, the community s ability to pay for public services A need to shi public service priori es because of demographic changes in the community A need to shi public policies because of changes in economic and legisla ve condi ons 8 of 96 4

9 Popula on Changes Changes in popula on directly impact both revenues (assessment base) and expenditures (service demand). The following summarizes key findings related to the Town s popula on growth: Collingwood has had steady popula on growth and experienced an increase in popula on from 17,290 in 2006 to 21,780 in 2016 (25.9% increase), higher than the Ontario average popula on increase during this me of 7.3%. This increase in popula on has resulted in substan al new capital infrastructure requirements which ul mately will have to be replaced. Source: Stats Canada, Manifold Data Mining Over the past 15 years, Collingwood s popula on growth was second highest in comparison to peer municipali es. Sudden increases in popula on can create immediate pressures for new capital outlay and increased or different demands for service. 50% 45% 40% 35% 30% Changes in Population Peer Municipalities 25% 20% The Town of Collingwood is a designated growth node in Simcoe County under the Provincial Growth Plan. Provincial es mates indicate a popula on of 33,400 by 2031 in Collingwood. The con nued need for addi onal infrastructure to accommodate future growth will take place at the same me that exis ng assets are reaching an age where renewal/ replacement is becoming cri cal and more costly. 15% 10% 5% 0% Source: Stats Canada, Manifold Data Mining 9 of 96 5

10 Age Demographics and Quality of Life The age profile of a popula on affects Town expenditures. For example, expenditures may be affected by seniors requiring higher public service costs and families with young children desiring enhanced services for recrea onal, and related programs. Collingwood has a diverse demographic, requiring a full range of programs and services. Compared to the province average, Collingwood s age profile has some notable differences. The Town has 22.8% of residents that are ages of 65+ compared with the Ontario average of 14.6% in From , there was an increase in the propor on of residents in the age group 65 and older in Collingwood of 2.3%, more than double the average increase in Ontario of 1%. This can increase the need for recrea onal programs and services for seniors. Age Profile 2006 Collingwood 2011 Collingwood Change in Collingwood Ontario 2011 Ontario % Change in Ontario Age % 14.4% 1.2% 18.2% 17.0% 1.2% Age % 6.1% 0.4% 6.9% 6.7% 0.2% Age % 26.7% 2.0% 34.8% 33.0% 1.8% Age % 14.7% 0.6% 15.3% 16.0% 0.7% Age % 15.3% 2.0% 11.2% 12.7% 1.5% Age % 22.8% 2.3% 13.6% 14.6% 1.0% Total 100.0% 100.0% 100.0% 100.0% 0.0% Source: Stats Canada 10 of 96 6

11 Construc on Ac vity Another growth related indicator is the Town s construc on ac vity. Building ac vity impacts other factors such as the employment base, income and property values. As illustrated on the graph, construc on ac vity in the Town decreased from , however, in 2016 construc on ac vity to October was $87.8 million. Building permit value per capita is used as an indicator of the rela ve construc on ac vity within each peer municipality. The average building permit value per capita over the three year average in Collingwood was the third highest in the comparator group and also higher than the BMA average of over 100 Ontario municipali es. Generally, a municipality s ongoing opera ng costs to service residen al development is higher than the net ongoing cost of servicing commercial or industrial development. As illustrated on the graph, the majority of the construc on ac vity is in the residen al sector. The ideal condi on is to have sufficient commercial and industrial development to offset the net increase in opera ng costs associated with residen al development. Non residen al development is desirable in terms of developing a strong assessment base upon which to raise taxes and in providing employment opportuni es. $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Sources: Year End Building Reports $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Construction Activity Collingwood (000 s) Residential Non Res Construction Activity per Capita 3 Year Avg. ( ) Peer Municipalities Sources: BMA Municipal Study & FIRs 11 of 96 7

12 Assessment Property assessment is the basis upon which the Town raises taxes. Assessment growth, the richness of the assessment base and assessment composi on are important indicators of fiscal strength. Assessment Composi on Assessment composi on provides an understanding of the mix of assessment. Collingwood s propor on of residen al assessment is higher than the peer average. This over reliance on residen al assessment can affect affordability. Richness of the Assessment Base Weighted assessment per capita sta s cs have been compared to provide an indica on of the richness of the assessment base. Collingwood s weighted assessment base per capita is above the peer average and also above the BMA survey average. This is an indica on of a community s ability to pay for services. Note: weighted assessment includes the applica on of tax ra os which are set by Simcoe County. $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ Unweighted Assessment Composition % Peer Avg Weighted Assessment per Capita Peer Municipalities Collingwood Residential 81.4% 83.5% Multi Residential 2.4% 1.8% Commercial 9.3% 12.5% Industrial 1.2% 1.9% Farmlands 5.4% 0.1% Other 0.5% 0.2% Total 100.0% 100.0% Growth in Assessment Assessment increases include changes in assessment related to growth, as well as changes in market value of exis ng proper es (which does not generate addi onal revenues). The assessment increase from 2015 to 2016 in Collingwood was slightly lower than the peer average and also lower than the BMA survey average of 4.7%. Change in Unweighted Assessment Owen Sound 2.0% Orillia 2.3% Prince Edward County 4.4% Springwater 4.4% Wilmot 5.2% Innisfil 6.1% Peer Average 4.1% Source: BMA Municipal Studies Collingwood 3.9% 12 of 96 8

13 Household Income Household income is one measure of a community s ability to pay. Credit ra ng firms use household income as an important measure of a municipality s ability to repay debt and the poten al ability to pay for municipal services. Changes in household income are especially important to municipali es such as Collingwood that have a smaller propor on of Non Residen al tax base because this is the primary source from which taxes are levied. Average household gross income in the Town of Collingwood is lower than the peer municipal average. Household income in Collingwood may be lower than average due to the fact that Collingwood has a higher number of re rees on fixed incomes Average Gross Household Municipality Income Orillia $ 71,747 Owen Sound $ 71,845 Prince Edward County $ 90,878 Innisfil $ 92,741 Wilmot $ 113,395 Springwater $ 132,391 Peer Average $ 95,500 Collingwood $ 86,585 Source: Data Manifold Mining 2015 The average annual household income of the 105 Ontario municipali es in the BMA Study was $97, of 96 9

14 Summary Growth Related Indicators Indicator Trend, Observa on Ra ng Popula on Growth Demographics Construc on Ac vity Mix Construc on Ac vity Comparison Collingwood s popula on percentage increase over the past 15 years was higher than the Ontario popula on increase and is higher than the average increase in peer municipali es. Collingwood has a higher propor on of seniors popula on compared to the Ontario average. This can increase the need for services to support seniors. The Town s rela ve construc on ac vity is primarily in the residen al sector which is generally more costly to service. The Town s rela ve construc on ac vity, as measured on a per capita basis, was the third highest in the peer survey over the past 3 years. Neutral Neutral Assessment Composi on Richness of the Assessment Base Assessment Growth Propor on of residen al assessment is higher than the peer average. An over reliance on residen al assessment can affect affordability. The Town s assessment base, on a per capita basis, is the highest in the survey of peer municipali es. The Town s assessment growth from was just below the survey average. Neutral Household Income Average gross household income in Collingwood is below the peer municipali es and average of 105 Ontario municipali es. 14 of 96 10

15 Financial Indicators Reserves/Reserve Funds are an important financial indicator in a Town s overall financial health. By maintaining reserves, the Town has the capability to fund future liabili es; a key link to long term financial planning prac ces. They also provide a cushion to absorb unexpected shi s in revenues and expenditures. The availability of reserves also reduces the cost of financing capital as it allows the Town to avoid debt interest payments. Credit ra ng agencies consider municipali es with higher reserves more advanced in their financial planning. Financial Posi on of the Town is important to consider as this takes into considera on the Town s total assets and liabili es. Taxes Receivable as a percentage of taxes levied is an indicator of the overall economic health whereby trends and industry benchmarks can be evaluated. Debt is also an important indicator of the Town s financial health and is an appropriate way of financing longer life infrastructure and infrastructure related to growth that is not fully recovered through DCs. However, when debt levels get too high, it compromises the Town s flexibility to fund programs and services. 15 of 96 11

16 Tax Reserves and Reserve Funds Reserves are a cri cal component of the Town s long term financial plan. The purpose for maintaining reserves includes: To provide tax stabiliza on in the face of variable and uncontrollable factors (growth, interest rates, changes in subsidies) and to ensure adequate and sustainable cash flows; To provide a funding source for one me or unforeseen events; To make provisions for replacement of assets/infrastructure of exis ng Town assets; To provide flexibility to manage debt levels and protect the Town s financial posi on; and There are two types of Reserves and Reserve Funds: Obligatory Reserve Funds are created whenever a statute requires revenue received for special purposes to be segregated from the general revenues of the Town and includes reserve funds for development charges and developer agreements. Given that these are not available for use at the discre on of the Town or to support exis ng opera ons, they have not been included in this sec on of the analysis. Obligatory reserves include development charges to offset the cost of infrastructure related to new growth, however, under the Development Charges Act, not all growth related capital costs are recoverable. For example, for many services, the Town can only collect 90% of the costs. To provide for future liabili es. Discre onary Reserve Funds are established whenever the Town wishes to earmark revenues to finance a future expenditure for which it has the authority to spend money, and physically set aside a certain por on of any year's revenues so that the funds are available as required. The focus of the reserve analysis is on discre onary reserves, as this is an area where the Town can readily modify its exis ng policies to help ensure financial sustainability. 16 of 96 12

17 Tax Discre onary Reserve Ra o The tax discre onary reserve ra o is the total of tax discre onary reserves as a percentage of own source revenues. This ra o has decreased from 52% in 2013 to 46% in As shown below, the reserve ra o in Collingwood is lower than the peer municipal average. Reserves and reserve funds serve as a mechanism to plan financially for both today and in the future. Reserves were primarily funded from opera ng surpluses, however, because this prac ce does not provide a sustainable source of funding for capital asset replacement, a capital levy was established in % 80% 60% 40% 20% 0% 20% 2015 Tax Reserves as a % of Own Source Revenues It is recommended that each of the Town s reserves and reserve funds be reviewed at least on an annual basis to ensure future liabili es can be met, that capital assets are properly maintained and replaced on a mely basis and that the Town maintain sufficient flexibility to respond to economic cycles. The need for reserves will vary based on services provided by the Town and the age, composi on and amount of assets and infrastructure that each Town supports as well as the type of liabili es. 17 of 96 13

18 Water & Wastewater Discre onary Reserve Ra o 200% 150% 100% 50% 0% 50% 2015 Water Reserves as a % of Own Source Revenues 250% 200% 150% 100% 50% 0% 2015 Wastewater Reserves as a % of Own Source Revenues Collingwood s water reserves as a percentage of own source revenues is the above the average for the peer municipali es and the BMA survey. The Town s wastewater reserves are also amongst the highest in the survey. 18 of 96 14

19 Con ngency Reserves The Town maintains con ngency reserves to offset extraordinary and unforeseen expenditure requirements, revenue shor alls and to manage cash flows. At the end of 2015, working fund and con ngency reserves totaled approximately $3.7 million. GFOA recommends that municipali es maintain Con ngency Reserves/Reserve Funds for the general tax base within a target range of 5% 15% of own source revenues to provide sufficient liquidity and protec on against unforeseen events. The Town of Collingwood with tax related own source revenues of $36.5 million is 10%, within the recommended range. Con ngency reserves should be reviewed for adequacy on an annual basis. Source: Town Reserve Report and FIR Asset Consump on Ra o The asset consump on ra o shows the wri en down value of the tangible capital assets rela ve to their historical costs. This ra o seeks to highlight the rela ve age of the Town s assets and the poten al asset replacement needs. A higher ra o indicates higher replacement needs. However, if assets are renewed and replaced in accordance with an asset management plan, a high ra o should not be a cause for concern. Peer Municipalities Tax Water WW Innisfil 31.1% 19.4% 28.6% Orillia 36.8% 40.0% 43.2% Owen Sound 33.1% 54.4% 30.0% Prince Edward County 49.3% 35.3% 21.0% Springwater 34.2% 24.8% 27.9% Wilmot 38.8% 22.7% 25.3% Peer Average 37.2% 32.8% 29.3% Collingwood 33.1% 51.1% 39.6% In 2015, Collingwood s tax asset consump on ra o is 33.1%, below the peer average of 37.2%. Collingwood s water asset consump on ra o is 51.1%, the second highest in the survey, indica ng the poten al for significant capital needs. The wastewater asset consump on ra o is 29.3%, above the average of 39.6%. 19 of 96 15

20 Debt Indicators Using debt strategically can provide capital funding flexibility by allowing certain infrastructure to be built and used before sufficient revenue has accumulated to offset the needed investment. Debt is frequently issued and considered a standard prac ce in municipali es for capital projects that are long term in nature and that benefit future taxpayers, thereby spreading the costs across future years. High debt levels, however, reduce flexibility, can increase the cost of borrowing and could impair financial sustainability if debt repayments cause or contribute to future revenue inadequacy. A comprehensive and rou ne analysis of debt capacity provides assurance that the amount of debt required by a municipality is affordable and cost effec ve. A debt management policy improves the quality of decisions, iden fies policy goals and demonstrates a commitment to long term financial planning, including a mul year plan. Adherence to a debt management plan signals to ra ng agencies and capital markets that the municipality is well managed and is well posi oned to meet its obliga ons in a mely manner. Prior to the implementa on of any new capital financing, considera on should be given to its impact on future taxpayers. The Province regulates the amount of debt municipali es issue by se ng an annual repayment limit for each municipality at 25% (principal and interest) of a municipality s own source revenues. The Government Finance Officers Associa on (GFOA) recommends that municipali es adopt policies to iden fy the maximum amount of debt that should be outstanding at any me. The Town has a debt management policy that limits repayments to 7% of tax supported own source revenue, 7% of water own source revenue and 7% of wastewater own source revenue. In addi on, the Town monitors the use of debt to ensure that it is used in a fiscally responsible manner. Debt ra os are the key analy cal measures used by credit ra ng agencies to evaluate the credit worthiness of a municipality. Three key debt ra os for evalua ng debt include: 1. Debt interest as a percentage of own source revenues 2. Debt principal and interest as a percentage of own source revenues 3. Debt per capita 4. Debt outstanding per $100,000 of assessment The use of these indicators allows the Town to con nually monitor its debt posi on and provide a mechanism for calcula ng theore cal debt capacity and assist in the capital budget decisionmaking process. 20 of 96 16

21 Total External Debt Outstanding Debt Principal & Interest as a Percentage of Own Source Revenues $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Debt Outstanding % 10% 8% 6% 4% 2% 0% 2015 Tax Principal and Interest as % of Own Source Revenues Collingwood s external debt outstanding from has been trending down as is shown above. The total external debt outstanding at the end of 2015 is approximately $34 million, a decrease of approximately $3 million from Although the Province regulates debt principal and interest at 25% of own source revenues, the Town s policy is that debt charges not exceed 7%. The Town s external debt charges funded from tax revenues as a percentage of own source revenues is 12% amongst the highest in the BMA survey. The Town closely monitors this indicator and has imposed a pay as you go policy un l it is in accordance with this policy. This indicator shows the extent to which a municipality must use revenue to pay principal and interest costs rather than pay for programs and services. Financial flexibility is the ability to respond to changing circumstances which may relate to economic, social or environmental condi ons. The higher the percentage required by debt service, the less financial flexibility available for responding to economic slowdowns, unexpected expenditures or changes in services. 21 of 96 17

22 8% 6% 4% 2% 0% 2015 Water Debt Interest as % of Own Source Revenues 16% 14% 12% 10% 8% 6% 4% 2% 0% 2015 Wastewater Debt Interest as % of Own Source Revenues Water/Wastewater debt interest as a percentage of water and wastewater revenues ranged from a low of 0% to a high of 15.7%. As shown in the graphs, Collingwood s water debt interest of 1.1% is below the peer median. Collingwood s wastewater debt interest at 6.1% is above the survey and peer median, however, has decreased from 7% in Collingwood s total debt charges (tax, water, wastewater) as a % of total own source revenues is 9.9%, significantly higher than the BMA survey of 5.2%. 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2015 Total Debt Charges as % of Own Source Revenues Source: BMA Municipal Study, FIRs 22 of 96 18

23 Total Debt per Capita Total Debt Outstanding per $100,000 of CVA Debt per capita is another financial indicator that should be monitored according to GFOA. The debt outstanding per capita relates increases in debt to changes in popula on. As the popula on increases, capital needs and, therefore, long term debt would be expected to increase. However, if debt is increasing at a greater rate than its popula on, debt levels may be reaching or exceeding the Town s ability to pay. Debt outstanding per $100,000 of assessment should be monitored to ensure that the debt load is not exceeding the municipality s ability to pay for debt servicing costs. Debt outstanding per $100,000 of assessment is $915, a decrease from $1,045 in $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Debt per Capita $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $ 2015 Debt per $100,000 Debt per capita in 2015 is substan ally higher than the survey average of peer municipali es and the BMA average of 105 municipali es, however, has decreased from $1,765. in 2014 to $1,574 in 2015 Source: BMA Municipal Study, FIRs 23 of 96 19

24 Financial Posi on A Town s financial posi on is defined as the total fund balances including equity in business government business enterprises less the amount to be recovered in future years associated with longterm liabili es including water and wastewater opera ons. Net financial posi on is a broader and more appropriate measure of indebtedness than debenture debt as it includes all of a municipality s financial assets and obliga ons. At the end of 2015, Collingwood had a net financial liability of $5.2 million. A comparison was made of financial posi on per capita with the peer municipali es. As illustrated below, Collingwood s financial posi on on a per capita basis is minus $244, slightly below the survey average. In a broader survey of 105 Ontario municipali es represen ng over 85% of the Ontario popula on, Collingwood s net financial posi on per capita is in the bo om quar le. The trend of this financial indicator needs to be monitored, on an ongoing basis. $0 ($2,000,000) ($4,000,000) Collingwood s Financial Position Trend $1,500 $1,000 $ Financial Position Per Capita ($6,000,000) $ ($8,000,000) $(500) ($10,000,000) $(1,000) ($12,000,000) $(1,500) ($14,000,000) ($16,000,000) ($18,000,000) ($20,000,000) 24 of 96 20

25 Taxes Receivable Every year, a percentage of property owners are unable to pay property taxes. If this percentage increases over me, it may indicate an overall decline in the Town s economic health. If uncollected property taxes rise to more than 8%, credit ra ng firms consider this a nega ve factor because it may signal poten al instability in the property tax base. Collingwood s 2015 taxes receivable as a % of taxes levied has been trending down over the past 5 years. The current 7.2% ra o is at the high end of what is considered an acceptable range. Collingwood s Taxes Receivable as a % of Taxes Levied 14% Collingwood s ra o of taxes receivable to taxes outstanding in 2015 was 7.2% compared with the peer survey average of 7.7%. Further, the reduced from 8.5% in 2014 to 7.2% in Taxes Receivable Ratio 12% 10% 8% 6% 4% 2% 0% 12% 10% 8% 6% 4% Expected Uncollectible 2% 0% Source: FIRs 25 of 96 21

26 Municipal Levy Per Capita and Per $100,000 of Assessment Comparison It is important to understand the cost of municipal services as well as affordability metrics to ensure that there is an alignment between the cost of municipal programs and services and the ability and willingness of taxpayers to support the exis ng service levels. In order to be er understand the rela ve municipal tax posi on for the Town and to take into considera on the impact of growth, a comparison of net municipal levies on a per $100,000 of assessment and a per capita was used. This analysis does not indicate value for money or the effec veness in mee ng community objec ves as net municipal expenditures may vary as a result of: Different service levels Varia ons in the types of services Different methods of providing services Different residen al/non residen al assessment composi on Varying demand for services Loca onal factors Demographic differences Socio economic differences Urban/rural composi on differences User fee policies Age of infrastructure Use of reserves 26 of 96 22

27 Levy per $100,000 of Weighted CVA Levy per Capita A comparison of the 2016 levy per $100,000 of weighted assessment provides an indica on of the levy in rela on to the assessment base upon which taxes are raised. As shown below, the Town of Collingwood levies per $100,000 of assessment are close to the average of peer municipali es and total survey average in the BMA Study. An analysis was undertaken on the total municipal 2016 levy (upper and lower er) per capita across the peer municipal group. As shown in the following graph, the Town of Collingwood s levy per capita is the highest in the peer group, 2016 Municipal Levy per Capita $1, Municipal Levy per $100,000 Weighted CVA $2,000 $1,600 $1,200 $1,200 $800 $800 $400 $400 Source: BMA Municipal Study using Levy By laws Similar to other municipali es, the Town of Collingwood faces mul ple pressures annually related to costs that are not readily controllable by the Town and that are increasing at a rate faster than infla on. As expenditure demands increase, the Town s op ons to meet those demands are restricted to efficiencies, user fees, and lastly taxa on. This is exacerbated by declining opera ng grants from the Province. Municipal levy increases are also influenced by the internal policies and programs of the municipality and the overall health of the municipality. For example, some municipali es have developed financial plans to support ongoing contribu ons to reserves which will impact the levy in the short term and will help in the long term. The Town of Collingwood has undertaken an opera onal review of corporate expenditures to help ensure that taxpayers are receiving value for money. 27 of 96 23

28 Financial Posi on Evalua on Summary At the end of December 2015, the Town of Collingwood had an overall nega ve financial posi on (financial assets less financial liabili es) of $5.2 million (approximately $244 per capita). In addi on, the Town con nues to face significant capital budget pressures which will further impact the Town s financial posi on. On a per capita basis, the exis ng total debt obliga on amounts to approximately $1,574. Tax Reserves as a percentage of Own Source Revenues has decreased over the past two years but is close to the peer average and the total BMA Study average which included 105 municipali es. The City s Water and Wastewater Reserves are above the peer average and the total BMA Study average. Con ngency and Working Fund Reserves are within the recommended range in rela on to Own Source Revenues and increased from 2014 to Taxes Receivable have con nued to trend downward and are within the recommended ranged. Further, the City s taxes receivable in rela on to Own Source Revenues is below peer municipali es surveyed. Debt outstanding is higher than peer municipali es surveyed which impacts financial flexibility, however, has decreased from of 96 24

29 Summary Financial Indicators Indicator Trend, Observa on Ra ng Tax Reserves as a % of Own Source Revenues Water Reserves as a % of Own Source Revenue WW Reserves as a % of Own Source Revenue Con ngency Reserves Debt Outstanding Debt Interest as a % of Own Source Revenues Financial Posi on Taxes Receivable Municipal Levy Per $100,000 of CVA Municipal Levy per Capita Tax reserves are below the peer municipal and BMA survey averages and are trending down. Water reserves as a percentage of own source revenues are slightly above the peer average, but may not be sufficient to meet future capital needs. The wastewater reserves are amongst the highest in the peer comparator group however this may not meet future capital requirements based on the 10 year forecast. Con ngency reserves as a percentage of own source revenues have increased and are within the target range of 5% 15%. Debt outstanding has been trending down since 2013, however, debt per $100,000 of CVA s ll exceeds the survey average as does the debt per capita. The Town s tax, water and wastewater debt as a percentage of own source revenues is above the peer average and median. The Town s net financial posi on has decreased from lower than the peer municipal average and BMA survey average. Taxes receivable are within the range considered to be acceptable. The Town s taxes receivable are lower than the peer municipal average and have been trending down. The municipal levy per $100,000 of assessment is slightly lower than the peer average and slightly above the BMA survey average. The municipal levy per capita is higher than the survey average. Neutral Neutral Neutral 29 of 96 25

30 Submitted to: Submitted by: Subject: Strategic Initiatives Standing Committee Council Michael Switzer, Manager of Finance Marjory Leonard, Treasurer Investment Policy STAFF REPORT # /7/ /12/2016 Amendments: [] PURPOSE The purpose of this report is to present the Town s Investment Policy to Council for approval. RECOMMENDATION: THAT Council enact a By-law adopting the Investment Policy; AND FURTHER the Treasurer is authorized to begin the process of including the Association of Municipalities of Ontario Local Authority Services ONE Program as part of the Town s investment portfolio. 1. BACKGROUND The Town of Collingwood currently does not have a formal investment policy and has relied on the options contained in Ontario Regulation (O. Reg.) 438/97 to guide the investment strategy. We have maintained a conservative approach to investing surplus funds. Without a formally adopted Investment Policy, the Town s ability to diversify investments that are eligible under the Municipal Act, including the Ontario Association of Municipalities (AMO) Local Authority Services (LAS) ONE fund, is restricted. Given the current economic climate and with interest rates being at an all time low it is imperative to have a current and up to date policy that both follows the standards and requirements outlined in the Municipal Act O. Reg. 438/97 and takes advantage of higher yield investment opportunities. This will allow the Town to maximize the return received on public funds while maintaining liquidity and preservation of capital. An up to date Investment Policy is also a requirement under the Federal Gas Tax funding agreement of 96

31 2. INPUT FROM OTHER SOURCES Municipal Act, 2001 Ontario Regulation 438/97 The One Investment Program website: 3. APPLICABLE POLICY OR LEGISLATION Municipal Act, 2001 Ontario Regulation 438/97 This staff report supports the following Key Performance Indicators outlined in the Community Based Strategic Plan: Undertake an annual financial report card tracking the progress towards its achievement of financial sustainability, with particular regard for debt and reserve fund adequacy. 4. ANALYSIS The Town currently holds Guaranteed Investment Certificates with CIBC and National Bank with a value of $13.9M as at December 31, The yield or return for these instruments range from 1.20% to 2.00%. Although the Town has made improvements as far as investment returns from 2012 onward, it is becoming increasingly difficult to generate returns of long term funds that keep up with inflation in the current economic environment. The implementation of a formal investment policy will allow the Town to invest in the ONE fund, through LAS, which gives the Town the opportunity to generate increased returns. These increased returns on long term funds could help reduce our infrastructure funding gap and generate returns that are higher than inflation. The key objectives of the investment policy in priority order will be: 1. Adherence to statutory requirements; 2. Preservation of capital; 3. Maintaining Liquidity; 4. Investment diversification; and 5. Maximizing yield As you can see in the chart below the Town s investment return is trending upward slightly. This is mainly due to the Town holding a larger balance of cash in its general bank account. The current interest rate for our general bank account is 1.10%. The current (September 30) Consumer Price Index (CPI) is 1.30%. Under our current investment plan we are losing 0.20% in purchasing power every year or $80,000 based on a bank balance of $40 million of 96

32 Investment Income $532,007 $545,433 $550, $468, $238,498 $320, In order to generate higher returns the Town needs to look at alternative investments outside of GICs. The ONE investment program offers a range of alternative products and complies with all statutory legislation. Amendments made to the Municipal Act in 1992 allow Ontario municipalities to participate in joint municipal investment strategies. These amendments permitted municipalities to pool their investments in order to gain the opportunity to earn higher returns through access to larger, diversified, high-quality investment portfolios. Local Authority Services (LAS) (an affiliate of the Association of Municipalities of Ontario) and the CHUMS Financing Corporation (a subsidiary of the Municipal Finance Officers Association of Ontario) both established investment pools in response to the 1992 amendments. In 1995, LAS and CHUMS combined their efforts to create a single professionally-managed investment program known as ONE The Public Sector Group of Funds (commonly referred to as the One Funds ). ONE historically offered a Money Market Portfolio and a Bond Portfolio, but an equity portfolio was added in 2007 and a Corporate Bond Portfolio in The Corporate Bond and Equity portfolios were launched as a result of 2005 amendments to the Municipal Act O. Reg. 438/97 allowing municipalities to invest in Canadian equities and longer terms Canadian corporate bonds. The regulation however offered access to these investment types only through the One Investment Program. Throughout 2006, ONE worked with a diverse committee of municipal investment practitioners to develop investment policies and operating guidelines for both the Equity and Corporate Bond Portfolios, and to select professional managers for the two new portfolios of 96

33 In 2015 the One Investment Program also launched a High Interest Savings Account (HISA) option with a Schedule 1 Canadian Bank, that is fully liquid, and where all municipal investors are CDIC insured. The HISA provides a tiered competitive rate of return for municipal deposits premised on the collective investment power of the municipal sector. Local government investment pools are not a new idea, with many established in jurisdictions across Canada and the United States. They have proven to be a highly successful and popular investment and cash management tool for municipalities. Participation in such pools is, in fact, recognized as a recommended practice for achieving portfolio diversification and liquidity by the Government Finance Officers Association of the United States and Canada. Since 1995 The One Investment Program has successfully met the needs of Ontario municipalities by providing safe and high-quality investment opportunities. Assets invested in the ONE at March 31, 2016 are approximately $782M. The Program provides professional investment services to more than 105 organizations, and performance has been competitive against other permitted alternative investments for Ontario municipalities. All ONE portfolios are governed by formal investment guidelines requiring that monies be invested only in instruments allowed under the Municipal Act, with additional restrictions being established by the guidelines. All Portfolio Guidelines are available for review on the One Investment Program website: ONE currently utilizes the professional investment services of MFS Investment Services for the Money Market, Bond, and Corporate Bond Portfolios, and Guardian Capital LP for the Equity Portfolio. Both organizations have billions in assets under management and have a long track record of managing large multi-customer investment pools. The investment guidelines and manager activities for each investment portfolio are monitored by ONE staff, an independent third party investment consultant, as well as the ONE Advisory Committee, which is comprised primarily of senior public sector officials appointed by LAS and CHUMS. In addition, the program also receives periodic oversight from the MFOA/CHUMS and LAS Board of Directors, comprised of municipal finance professionals and municipal administrators and elected officials, respectively. There is no requirement for municipalities to invest for a specific period in the ONE Investment Program; money can be invested, withdrawn or transferred at any time, although each of the portfolios has been established with a certain investment duration in mind. If investment/redemption instructions are provided by 4:00 p.m. on any banking day, the funds are deposited or withdrawn, as the case may be, on the next banking day. The minimum transaction amount is $5,000 for any portfolio. There are no penalties or fees for deposit or withdrawal at any time of 96

34 The ONE Investment Program Portfolios are detailed below: Each portfolio is fully liquid (meaning the investment is never locked in ) but each portfolio is designed for a specific investment duration. There is an opportunity to enhance returns on longer-term investments if the proper ONE Investment Program portfolio is utilized, and the suggested investment durations are followed. Council should be aware of the trade off relationship that exists between risk and return. As the Town seeks to achieve higher returns the greater the probability of higher risk. However longer term funds invested in actively managed portfolios such as the ONE investment portfolios have the ability to manage market fluctuations and generate positive returns over the longer term. The ONE Equity Portfolio, even with more risk associated with it, has outperformed the major Canadian stock indices, and should outperform all other investment vehicles available to the municipal sector over the longer term of 96

35 Investment fees for all invested monies are calculated on a daily basis based on the total balance held in the account, and all performance figures provided by ONE are always posted net of fees. Current ONE Investment Program annual fees are lower than any other available public sector investment pool. The current fees are as follows: Money Market 19 Basis Points HISA 10 Basis Points Bond 40 Basis Points Universe Corporate Bond 45 Basis Points Equity 60 Basis Points For the fees paid, each investor receives numerous benefits, including but not limited to: Professional money management Reduced risk through diversification and regular investment oversight Flexibility and liquidity of investments Accounting and performance reporting Legal costs for program related issues Regulatory compliance guarantee Lower brokerage costs To allow for the investment of municipal funds through co-mingled public sector investment programs, in order to leverage enhanced returns and reduced administration costs, it is recommended that the ONE Investment Program be added to the municipality s list of eligible investments of 96

36 To illustrate the rate of return the ONE program is generating the 2 nd quarter 2016 report is illustrated below. In comparison to the current returns realized by the Town s existing investments (GICs 1.20% %) the ONE Investment Program portfolio returns are considerably higher. For example if our current GIC portfolio ($13.94M) were invested in the Universe Corporate Bond Portfolio we could achieve a 1 year return of 4.84% or $674,427. Comparatively our current investment vehicles would generate approximately $222,951 over the same period. The Town s finance staff believes this is a prudent investment program to implement. We are proposing that we begin with an initial investment of $3M - $5M of long term funds. 5. EFFECT ON TOWN FINANCES The implementation of the investment policy and the adoption of the ONE Investment Program into the Town s list of eligible investments will help the Town generate returns that exceed inflation and maintain or increase the purchasing power of each tax dollar we are responsible for of 96

37 6. APPENDICES & OTHER RESOURCES Appendix A Appendix B Resource 1 Resource 2 Town of Collingwood Draft Investment Policy Ontario Regulation 438/97 Eligible Investments and Related Financial Agreements SIGNATURES Prepared by: Michael Switzer, CPA, CA Manager of Finance Town of Collingwood Department head: Marjory Leonard, MBA, CPA, CMA, CFP Treasurer Town of Collingwood of 96

38 APPENDIX A of 96

39 INVESTMENTS Applies to: Effective date: January 2017 TREASURY POLICY NUMBER: Policy Statement The Corporation of the Town of Collingwood strives for the optimum utilization of its cash resources in a manner that will provide the highest risk adjusted return while recognizing the importance of protecting and preserving capital, maintaining solvency and liquidity and conforming to all applicable laws and statutory limitations. 1. PURPOSE The purpose of this policy is to ensure integrity of the investment management process when investing public funds. To provide guidelines for the management of the Corporation s surplus funds and investment portfolio based on the following five key objectives, in priority order: Adherence to statutory requirements All investment activities shall be in compliance with the relevant section of any applicable legislation and regulation. Preservation of capital Safety of principal is an important objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. Maintaining liquidity The investment portfolio shall remain sufficiently liquid to meet all cash flow requirements and limit temporary borrowing. Investment diversification The portfolio shall be diversified by asset class, issuer and term to the greatest extent reasonable, given legal and regulatory constraints. Maximizing yield The municipality shall maximize the rate of return earned on the investment portfolio, without compromising the other guidelines and objectives. Page of 7 39 of 96

40 [Investments Policy Number] 2. SCOPE It is understood that the policies and procedures herein shall govern the investment activities of all funds controlled by the Town of Collingwood and its agencies, boards and commissions, including any new funds created by the Town, unless specifically directed otherwise by Town Council. 3. LEGISLATIVE AUTHORITY The following legislation governs the Town s investment policies and procedures: Section 418 of the Municipal Act, 2001 Ontario Regulation 438/97 Eligible Investments and Related Financial Agreements 4. STANDARDS OF CARE Prudence Investments shall be made with judgments and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Investment officers acting in accordance with written procedure and this investment policy and exercising due diligence, shall be relieved of personal responsibility for and individual security s credit risks or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidation or the sale of securities are carried out in accordance with the terms of this policy. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interest in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Page of 7 40 of 96

41 [Investments Policy Number] Responsibility and Delegation of Authority The Treasurer is responsible for the prudent investment of the municipality s funds, including: selection and regular monitoring of the investments; ensuring compliance with this policy and applicable legislation and regulations; reporting to Town Council as required in the Reporting section of this policy; obtaining adequate insurance coverage to guard against any losses that may occur due to misappropriation, theft or unscrupulous acts of fraud with respect to the municipality s financial assets; and obtaining legal advice and financial advice with respect to proposed investments, when deemed to be in the best interest of the municipality. The Chief Administrative Officer, Clerk and Treasurer are authorized to execute and sign financial, administrative and investment agreements on behalf of the Corporation. The Treasurer may, through a competitive bid process, retain the services of an external investment Agent to act as an Investment Manager on behalf of the municipality. That Agent shall act in accordance with this policy. Staff in the Treasury Department may process transactions as instructed by the Treasurer. 5. SAFEKEEPING AND CUSTODY All securities shall be held for safekeeping by a financial institution (depository) approved by the municipality. Individual accounts shall be maintained for each portfolio. All securities shall be held in the name of the municipality. The depository shall issue a safekeeping receipt to the municipality listing the specific instrument, rate, maturity and other pertinent information. On a monthly basis, the depository will also provide reports, which list all securities held by the municipality, the book value of holdings and the market value as of month end. Page of 7 41 of 96

42 [Investments Policy Number] 6. INTERNAL CONTROLS The Treasurer of the municipality shall establish an annual process of independent review by the municipality s auditor. This review will provide assurance of compliance with governing legislation, this investment policy, and procedures established by the Treasurer. 7. SUITABLE AND AUTHORIZED INVESTMENTS All investment activities shall be governed by the Municipal Act, Investments, unless limited further by Council, will be those deemed eligible under Ontario Regulation 438/97 Eligible Investments and Related Financial Agreements or as authorized by subsequent provincial regulations. In keeping with the primary objectives of the Municipality s investment policy, namely preservation of capital, permissible investments have been restricted to those of high credit quality and reasonable liquidity. The following are authorized investments: Investments issued or guaranteed by the Government of Canada, province or territory of Canada, including any agency of Canada or province or territory of Canada; Investments issued or guaranteed by a bank as listed in Schedule I of the Bank Act, by a loan or trust corporation which is registered under the Loan and Trust Corporations Act, or by a credit union or league to which the Credit Union and Caisses Populaires Act, 1994 applies; Investments issued or guaranteed by a metropolitan, regional or district municipality, a school board, or a local board in Canada as defined in the Municipal Affairs Act, or a conservation authority established under the Conservation Authorities Act; Pooled investments operated by The One Investment Program. All investments must meet the criteria outlined below regarding investment quality, size limitations and term of investments. INVESTMENT PARAMETERS: Diversification Investments will be diversified by issuer and by the sector of the economy to which they belong. The Treasurer may establish maximum amounts and maximum percentages of the portfolio for each issuer and sector from time to time. Investment Page of 7 42 of 96

43 [Investments Policy Number] in a municipal investment pool as allowed by Ontario Regulation 438/97, such as the One Investment Program, is considered an appropriate method of diversification. The municipality shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow requirements of those funds. Investments shall be diversified by: Limiting investments to avoid over-concentration in securities from a specific issuer or sector (excluding Government of Canada securities); Limiting investment in securities to those that have higher credit ratings; Investing in securities with varying maturities; and Investing in mainly liquid marketable securities which have an active secondary market, to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. Maximum Maturity To the extent possible, the municipality shall match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the municipality will not directly invest in securities maturing more than ten (10) years from the date of purchase. Reserve funds and other funds with longer investment horizons may be invested in securities exceeding ten (10) years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of funds. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. Portfolio yields should be higher than the rate given by the municipality s bank for deposits held in its various bank accounts. 8. REPORTING The Treasurer or designate shall submit an annual investment report to Council, which identifies the investments held as at the prior December 31, prior to or together with the annual audited financial statements of the Corporation. The investment report shall include: a listing of investments by type, with cost and market value, held at the end of the reporting period; Page of 7 43 of 96

44 [Investments Policy Number] the investment term in days and the rate of return realized on matured investments; a detailed listing of bonds held, including investment cost, market value, interest realized year-to-date and maturity value; a statement about the performance of the investment portfolio during the reporting period; a statements as to whether or not, in his or her opinion, all investments were made in accordance with this policy; a record of the date of each transaction; and such other information that Council may require or that, in his or her opinion, should be included. 9. POLICY MAINTENANCE The Treasurer shall develop and maintain up-to-date procedures that provide for effective control and management of investments with sufficient assurance that the Town s investments are properly managed and adequately protected. All cash management transactions shall be properly recorded and interest earnings distributed annually to the various funds, as the case may be, in accordance with applicable legislation, Town by-laws, policies, generally accepted accounting principles, and Canadian public sector accounting standards. Periodic reviews shall be performed to determine whether or not the investment guidelines provided herein are being followed and to evaluate the adequacy of internal controls. 10. LIABILITY AND RESPONSIBILITY Authorized employees acting in accordance with this policy and exercising due diligence shall be relieved of personal liability and responsibility for an individual security s credit risk or market price change. 11. IMPLEMENTATION This policy shall become effective immediately upon approval by Town Council. This policy shall be reviewed by Town Council a minimum of once per term of office. Page of 7 44 of 96

45 [Investments Policy Number] 12. GLOSSARY OF TERMS CHUMS Financing Corporation: one of the entities that operates The One Investment Program, a co-mingled investment strategy in which local government and the broader Ontario public sector can invest Credit Risk: the risk to an investor that an issuer will default in the payment of interest and/or principal on a security. Depository: a depository in the context of this policy is a record keeper. Diversification: a process of investing assets among a range of security types by sector, maturity, and quality rating. Investment Officers: the Chief Administrative Officer, Clerk and Treasurer. Local Authorities Services (LAS): one of the entities that operates The One Investment Program, a co-mingled investment strategy in which local governments and the broader Ontario public sector can invest. Liquidity: a measure of an asset s convertibility to cash. Market Risk (Market Price Changes): the risk that the value of a security will rise or decline as a result of changes in market conditions. Market Value: current market price of a security. Maturity: the date on which payment of a financial obligation is due. The final stated maturity is the date on which the issuer must retire a bond and pay the face value to the bondholder. One Investment Program: a pooled investment option for Ontario municipalities and the broader public sector, where the deposits of participating groups are jointly managed by professional portfolio managers. The Program is operated by LAS and the CHUMS Financing Corporation, subsidiary of AMO and MFOA, respectively. Safekeeping: holding of assets (e.g., securities) by a financial institution. Schedule I Banks: Schedule I banks are domestic banks and are authorized under the Bank Act to accept deposits, which may be eligible for deposit insurance provided by the Canadian Deposit Insurance Corporation. Page of 7 45 of 96

46 Submitted to: Submitted by: Subject: Strategic Initiatives Standing Committee Council Marjory Leonard, Treasurer 2017 Fees and Charges STAFF REPORT #T /7/ /12/2016 Amendments: [] PURPOSE The purpose of this report is to receive Council approval for changes to our existing fees and charges effective January 1, 2017 RECOMMENDATION THAT Council enacts and passes the Fees and Service Charges as attached. AMENDMENTS 1. BACKGROUND Sections 390 to 400 of the Municipal Act, 2001 are the sections which govern the municipal authority to impose fees and service charges for services or activities it provides. The Act requires all fees and charges and any additions or amendments to fees and charges be set by by-law. Annually, as part of the budget process, staff review the current fees and charges and provide Treasury with requested changes, additions or deletions to their fees. 2. INPUT FROM OTHER SOURCES Municipal Act, 2001 Sections 390 to 400; Water and Wastewater Rate Study (2014); Water Rate Update (2015); Department Head input for changes to fees. T Fees and Charges Page 1 of 3 46 of 96

47 3. APPLICABLE POLICY OR LEGISLATION Municipal Act, 2001 Sections 390 to ANALYSIS User fee based models provide a number of benefits, including: Increased efficiency for production and consumption of the service; Increased efficiency of allocation of the service when capacity limits are reached; Improved fairness by assigning costs to those who gain most directly from the service; Improved transparency and accountability; and Improved information for decision-makers in relation to the current and future demands for the service. It is important to ensure that user fees allow for the recovery of costs associated with the delivery of services and programs, and for the ongoing maintenance of the facilities, equipment and other infrastructure that the municipality operates. As in past years, the Town will experience cost increases in 2017 for a number of reasons including higher wages, increased costs for utilities and generally higher costs for equipment purchases and maintenance. Fees have always been calculated on a cost recovery basis. While staff compares user fees to other local municipalities, it may not be an accurate comparison since neighboring municipalities have differing cost structures, recovery objectives or user fee policies. Where staff has used a benchmark based on surrounding municipalities, it has been determined that the cost structures and policies are also comparable and therefore these comparators are valid bases for determining a pricing structure. As part of the operating budget process and similar to the procedures followed in prior years, Department Heads have reviewed their respective fee schedules and have provided recommended changes to recover the costs associated with providing these services. Where services are similar across departments, staff is recommending that those fees be brought to a consistent level across the organization. Departments have, again, been cognizant of the current economic conditions and have held increases to the minimum possible. The following departments or boards have not made changes to their fee schedule but we have included the current fees for information purposes only: General Government Planning and Development Library Board Transit The Building department fees are established under the Building Code and were approved by Council By-law No on November 28, We have included these fees in the schedule for information only. Fees established by the OPP and controlled by the Provincial Government are included in the schedules for information purposes only. T Fees and Charges Page 2 of 3 47 of 96

48 Water and Wastewater rates are based on the Council approved rate study and have increased 2.5% and 3.5% respectively. Other areas of the Water and Wastewater fees as well as some of the Public Works fees have changed in order to ensure that the charges are the same throughout the department. Several of the changes to PRC fees, in particular those related to the Centennial Aquatic Centre Pool, have been changed to remove the HST charge that was embedded in the 2016 charges. This change will provide consistency with the other fees and charges. An extra column has been provided on these schedules to highlight the fees that are, in fact, changing. The requested changes are highlighted in yellow on the attached schedules. In terms of changes to the by-law, the following sections have been added to provide clarity and streamline the administration of the by-law: 1. Council hereby establishes the fees and charges as set out in Schedule A to this by-law for the Town of Collingwood. The fees and charges will be subject to Harmonized Sales Tax (HST) and Retail Sales Tax (RST), where applicable. 2. (a) That fees and charges, with the exception of Water and Wastewater Rates, shall be adjusted annually, on January 1, by the Consumer Price Index (CPI) of the third quarter of the prior year, where feasible. (b) That in those instances where the fee is not adjusted by the CPI in one year, the cumulative adjustment for past years may be made in future years, as approved by Council. (c) Despite paragraphs 2(a) and (b), fees and charges may be adjusted, as approved by Council to recover, at a minimum, respective service, administration and capital costs, as well as costs for any other purpose in any amount permitted under applicable law. 5. EFFECT ON TOWN FINANCES Fee increases have been built into departmental budgets for APPENDICES & OTHER RESOURCES Appendix A Changes to Municipal Fees and Charges SIGNATURES Prepared by: Marjory Leonard, Treasurer Town of Collingwood T Fees and Charges Page 3 of 3 48 of 96

49 2017 FEES AND SERVICE CHARGES Service/Item 2017 Fee SECTION A1-CORPORATE MANAGEMENT Marriage Licence $ Civil Marriages $ mileage Civil Marriages-during office hours $ Tax Certificate $75.00 Proof of Taxes Paid in Current Year $5.00 Administer Oaths and Affidavits $15.00 FOI Requests Fees as prescribed under M.F.I.P.P.A. In-camera Meeting Investigator Request $5.00 Non-refundable fee N.S.F. Cheques $40.00 Legal Costs Re: Preparation of Agreements (unless otherwise established) $ Photocopying Photocopies-Black & White $0.25/page Photocopies-Coloured $0.50/page Certified Photocopies $15.00 Lottery Licences Bingo Licence 3% of Gross Prize Raffle Licence 3% of Gross Prize "Break Open" Tickets 3% of Gross Prize 49 of 96

50 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION B1- FIRE DEPARTMENT Request for Reports Fire/Rescue/Accident $ Investigation $ Inspection $ Letters Of Compliance Department Letters of Compliance $ Request for Inspection of Properties Accreditation inspection for new licensed Day Care, Nursery, Schools, Rest Homes, etc $ Single Occupancy Building under 20,000 sq. ft. $ Single Occupancy Building over 20,000 sq. ft. $ Multiple Tenant Building under 20,000 sq. ft. - common areas $ Multiple Tenant Building over 20,000 sq. ft. - common areas $ Multiple Tenant Building each unit - occupancy $55.00 Apartment Buildings 0-10 units $ plus $12.00/unit Apartment Buildings over 10 units $ plus $12.00/unit Inspection required by L.L.B.O. Inspection of public hall facilities that are requested by owner, etc.. $ Inspection of public hall facilities that are Special Occasion Permits $ Permits/License/Plan Approvals Burning Permits Site approval no charge Burning Permits Renewal (max. one year) $30.00 Burning Permits Farmers No Charge Controlled Burn Permit $ Public Fireworks Permit $ Fire Prevention Services Inspection Programs No charge Public Education Programs No charge Hourly Rate per officer $80.00 Emergency Services Response to emergencies on waterways $1,200.00/hour Response to vehicle fires and accidents $1,200.00/hour * Bill for services provided for emergencies involving vehicles/boats on municipal roadways/waterways False Alarms after two alarms caused by a controllable factor within a 12 month period $ Elevator Calls after two alarms caused by a controllable factor within a 12 month period $ Open Air Burning without permit $ Apparatus Standby and 4 Fire Fighters $1,200.00/hour Fire Fighter - hourly rate per firefighter $80.00 Hazardous material calls - minimum 4 Fire Fighters and Apparatus $1,200.00/hour Technical Rescue Services obtained from other Municipalities Training Services Programmes/lectures No charge Fire Fighting/extinguisher demonstrations Materials Only Full Cost Recovery 50 of 96

51 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION B2- POLICE DEPARTMENT Excluding Statements, LE042 Template $40.00 $42.25 Request for Copies Statement (motor vehicle collision) Includes HST $42.25 Request through FOI Form LE172 (Occurrence Confirmation/Information Report) Includes HST $42.25 Certificate "No Criminal Record" $25.00 Form C216C RCMP Fingerprint Form $25.00 Pardon Application (local police check is required) $25.00 Technical Collision Investigation File Technical Collision Investigation File Includes HST $ Including the following reports Form LE092: On Scene Report Form LE093: Data Summary Report Form LE094: On-Scene Examination Report Form LE095/Form LE095-2 On-Scene Measurement Record and Supplementary Proportionate Sketch Reconstructionist Report Reconstructionist Report Includes HST- Includes the Review of the Technical $1, Collision, Investigator's Reports and Video, Re-enactment of the Collision Fingerprinting (Live Scan) (HST incl) $26.50 SECTION B3- PROTECTIVE INSPECTION AND CONTROL LICENCES/FEES -ANIMAL CONTROL Per dog $35.00 Per dog spayed/neutered or micro chipped (with documentation) $25.00 Per dog spayed/neutered and micro chipped (with documentation) $20.00 Penalty Surcharge after January 31st $10.00 New dog after July 1 $20.00 Service Dogs No Charge Replacement tag $5.00 Kennel Licence $ Adoption fee $25.00 Impoundment Fee - Dog wearing a current Town of Collingwood licence First Occurrence - Picked up within 24 hrs N/C First Occurrence - Picked up after 24 hrs $75.00 Subsequent occurrence $ $ Impoundment Fee - Dog not wearing a current Town of Collingwood licence First Occurrence $ Subsequent occurrence $ Lifetime Dog Licence $ Surrender of Cat (GTHS & Admin Fee) $75.00 Surrender of Dog (GTHS & Admin Fee) $ Pick up and drop of dog running at large $40.00 $50.00 Georgian Triangle Humane Society Boarding Fee $30.00/day 51 of 96

52 2017 FEES AND SERVICE CHARGES Service/Item SECTION B3- PROTECTIVE INSPECTION AND CONTROL LICENCES-MISC - BY-LAW ENFORCEMENT 2016 Fee 2017 Proposed Fee Food Vendor Class "A" $ Food Vendor Class "B" $ Food Vendor Class "A" and "B" relocation fee $50.00 Food Vendor Class "C" - Charitable/Not for Profit Organization $30.00 Food Vendor Class "C" - Private vendor $60.00 Food Vendor Class "C" - Group (3 or More Vendors) $ Busker Resident $25.00 Busker Non-Resident $50.00 Hawker and Peddler Licence per year $ Sale and Purchase of Second Hand Goods $ Special Event Hawker and Peddler Licence $30.00 or $60.00 Special Event Transient Trader Licence $30.00 or $60.00 Transient Trader Licence $ LICENCES-TAXI - BY-LAW ENFORCEMENT Taxi/Limousine Driver's Licence Original Application $75.00 $80.00 Taxi/Limousine Driver's Licence Original Application (after September 30) $ $8.00/month remaining $ /month remaining Taxi/Limousine Driver's Licence Renewal $50.00 $65.00 Taxi/Limousine Driver for more than one company (additional cost) $25.00 Remove Taxi/Limousine Driver Renewal Penalty Surcharge $25.00 Remove Taxicab Owner's Licence Original Application (each vehicle) $5, Taxicab Owner's Licence Renewal (each vehicle) $ Taxicab Owner's Licence Re-issue to approved Purchaser (each vehicle) $ Taxicab Owner's Licence Waiting List (original application) $ Taxicab Owner's Licence Waiting List - Annual Fee (to stay on list) $25.00 Limousine Owner's Licence Original Application (each vehicle) $2, Limousine Owner's Licence Renewal (each vehicle) $ Limousine Owner's Licence Re-issue to approved Purchaser (each vehicle) $ Taxicab Broker's Licence-Original $ Taxicab Broker's Licence-Renewal $ Extension of Vehicle Model Year $ Replacement of Lost or Damaged Plates $40.00 Registration of Replacement Vehicle/Plate Transfer $40.00 Maximum Taxi Tariff Rates - Adjust Annually in April by CPI $2.45/km Maximum Taxi Tariff Rates - Adjust Annually in April by CPI $3.60 drop rate Taxi Tariff Rates $36.00/hr Wait Time Limousine Tariff Rate - minimum pick up fee in boundaries of municipality $15.00 PERMITS- BY-LAW ENFORCEMENT Sidewalk Patio Curbside - April 1-October 31 one time installation fee $ Sidewalk Patio Curbside - April 1-October 31 Annual Renewal $0.00 Sidewalk Café-against building permitted year round one time installation fee $75.00 Sidewalk Café-against building permitted year round Annual Renewal $0.00 Sign Removal fee $40.00 /Occurrence + costs incurred for removal $60.00 / Occurrence + costs incurred for removal Sign Storage - maximum storage prior to disposal 30 days $2.00/day $5.00/day 52 of 96

53 2017 FEES AND SERVICE CHARGES Service/Item SECTION B3- PROTECTIVE INSPECTION AND CONTROL PROPERTY STANDARDS 2016 Fee 2017 Proposed Fee Clean Yards / Long Grass Notice First Occurrence - Free Clean Yards / Long Grass Order $ Property Standards Pre-Order First Occurrence - Free Property Standards Order $ Title Search $ Corporate Profile Search (per corporation) $50.00 Registration of an Order on title $ Discharge of an Order on title $ Compliance Letter $75.00 Inspection Letter $75.00 $ Property Standard Hearing Request $ Cutting of Long Grass/Weeds Remove Clearing/Cleaning of Yards Remove Work Completed for Compliance 100% of total cost + 30% admin fee 53 of 96

54 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION C1 TRANSPORTATION SEWER AND DRAINS $150.00/hr., $175.00/hr. OT Minimum 2 hrs. Call out. Additional labourer as required Flushing/Vacuuming Laterals/Culverts/Mains/CB etc. Policy (private) $35.00/hr. $130.00/hr., $145.00/hr OT Sewer Lateral Clearing Policy (after hrs) minimum 2 hrs call out $130.00/hr., $145.00/hr OT Sewer Lateral Clearing Policy (normal hrs) minimum 2 hrs call out $130.00/hr., $145.00/hr OT Steam Jenny minimum 2 hrs call out $130.00/hr., $145.00/hr OT Trace Sewer Lateral minimum 2 hrs call out Vactor truck disposal fee $60/1,000 Gallons LATERALS-NEW/REPAIR New Sewer Lateral - Semi-detached Lots (two services in common trench) Time & Materials New Sewer Lateral - Industrial/Commercial/Multi Residential Time & Materials New Sewer Lateral - Single Lots Policy Time & Materials Replacement of Problem Lateral - Semi-detached Lots (two services in common trench) $3, Replacement of Problem Lateral - Single Lots Policy $3, Owner pays 50% of time & material Replacement of Problem Lateral - Industrial/Commercial/Multi Residential costs Sewer Lateral Repair Only-On Public Property-Multi Residential, Commercial, Industrial Owner pays 50% of time & material costs Owner pays 50% of time & material Sewer Lateral Repair Only - On Public Property for Single Family Residential costs DITCHES AND CULVERTS Culvert Maintenance - Heaving Culvert Policy No Charge Curb Cuts Time & Material Cutting Grass/Weeds Policy $100.00/hr Extending driveway culverts Time & Material Filling of ditches Policy (ditch filling - 15" over-sizing catch basins extra) $65.00/Lin. Ft. or $215.00/m SWEEPING/WATER TRUCK $140/hr., OT $160/hr min. Sweeping 2 hr. call out $140/hr., OT $160/hr min. Trackless (re: Sweeping) 2 hr. call out $85/hr. OT $110/hr min. Water Truck (re: Sweeping) 2 hr. call out VEHICLE RENTAL CHARGE FOR TIME & MATERIAL Pickup $16.25 / hour 1 Ton Truck $25.00 / hour Single Axle Dump Truck $55.00 / hour Tandem Dump Truck $60.50 / hour Backhoe $62.00 / hour Small Track Hoe $45.00 / hour Rock Breaker $ / hour Loader $70.00 / hour OTHER CHARGES Truck Driver/Labour Charge - Normal Hours $50.00 per hour Operator - Normal Hours $60.00 per hour Labour Charge -Supervisor Normal Hours $70.00 per hour Administrative Charge as a % of material and contract cost 15% 54 of 96

55 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION C1 TRANSPORTATION PERMITS Entrance Permits $ Fill Permit - requiring $2,000 security $ Fill Permit - requiring more than $2,000 security $2, Fill Permit Renewal - requiring $2,000 security $ Fill Permit Transfer $ Fill Permits Renewal - requiring more than $2,000 security $ Street Cut Permit $ Wide Load Permits $ GENERAL Compliance Sheets $ Each Photocopy and Drawing Fees $0.55/copy & $10.00/Drawing Purchase of Sign(s) from Works Dept Costs plus 15% ENGINEERING Condominium Deposit for Legal Fees See Planning Fees Schedule Subdivision Deposit for Legal Fees $15, Pre-servicing Minimum Deposit $25, % of Total Construction Costs Subdivision Administration Fee (minimum fee $10,000.00) 5% of Total Construction Costs Condominium Administration Fee (minimum fee $10,000.00) 3% of Total Construction Costs Site Plan Administration Fee (minimum fee $2,000.00) Lot Grading Deposit - Subdivisions $3,000/lot maximum $150, of 96

56 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee Including HST 2016 Fee Excluding HST 2017 Proposed Fee SECTION D1- PRC- PARKS, FACILITIES, PROGRAMS AND SPECIAL EVENTS PROGRAMS Centennial Aquatic Centre Pool 12 Month Pass- Adult (18Y-54Y) $ $ $ Month Pass- Child/Youth (17 Y under) $ $ $ Month Pass- Family (3 or more max. 2 adults ) $ $ $ Month Pass- Senior (55+) $ $ $ Month Pass- Adult (18Y-54Y) $84.05 $74.38 $ Month Pass- Child/Youth (17 Y under) $63.05 $55.80 $ Month Pass- Family (3 or more max. 2 adults) $ $ $ Month Pass- Senior (55+) $63.05 $55.80 $57.47 Aqua Fitness Adult (18Y - 54Y) $4.00 $3.54 $3.76 Aqua Fitness Senior (55+Y) $3.00 $2.65 $2.88 Friday Public Swim no charge Monthly Pass- Adult (18Y - 54Y) $41.60 $36.81 $37.92 Monthly Pass- Child/Youth (17 Y under) $24.75 $21.90 $22.56 Monthly Pass- Family (3 or more max. 2 adults) $65.95 $58.36 $60.12 Monthly Pass- Senior (55+) $24.75 $21.90 $22.56 Public Swim/Lane Swim- Adult (18Y - 54Y) $4.00 $3.54 $3.76 Public Swim/Lane Swim- Child/Youth (17 Y under) $3.00 $2.65 $2.88 Public Swim/Lane Swim- Family (3 or more max.2 adults) $8.00 $7.08 $7.96 Public Swim/Lane Swim- Group Rate (up to 10 people) $30.00 $26.55 $30.97 Public Swim/Lane Swim- Senior (55+) $3.00 $2.65 $2.88 Public Swim/Lane Swim-Toddler (2Y under) no charge Frequent Swimmer Card (Adult) $40.00 $35.40 $37.61 Frequent Swimmer Card (Senior) $30.00 $26.55 $28.76 **Cancellation fee applies if notice not received within 48hrs of lesson $10.00 $8.85 $13.27 Swim Lessons Bronze Cross $ Swim Lessons Bronze Medallion/Emergency First Aid $ $ Swim Lessons Bronze Star $ Swim Lessons Adult $80.00 Swim Lessons Learn to Swim $65.00 Swim Lessons NLS Certification $ Swim Lessons Preschool $65.00 Swim Lessons- Private 1/2 hour $ Swim Lessons- Semi Private 1/2 hour $95.00 Swim Lessons- School Program $2.15/student/lesson Swim Lessons Standard First Aid/CPR "C" $ Swim Lessons Swim Patrol $75.00 Winter Public Skating/Hockey no charge remove Eddie Bush Memorial Arena & Central Park Arena Public Skating $3.00 $2.65 $2.65 Public Skating -Family (2 adults + 3 child/youth) $8.00 $7.08 $7.08 Intro to Skating $25.00 Sailing School Sailing Lessons- one week full-day Youth $ $ Sailing Lessons- one week full-day Adult $ Sailing Lessons- one week half-day Youth $ $ Sailing Lessons- one week half-day Adult $ Sailing Lessons- family rate (valid for families with 2+ enrolled in same week) $285.00/participant $300/participant Sailing Lessons- Adult evening programs (ages 16+) plus HST $ $ **Early bird fee applies to registrations before annual early bird date 10% savings **Cancellation fee applies if notice not received within 48hrs of lesson $ of 96

57 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee Including HST 2016 Fee Excluding HST 2017 Proposed Fee SECTION D1- PRC- PARKS, FACILITIES, PROGRAMS AND SPECIAL EVENTS PORT OF COLLINGWOOD SEASON APRIL 1 TO OCTOBER 31 Docking Fees - Commercial - Per day $2.00 per foot $2.25 per foot Docking Fees - Commercial - Per week $10.00 per foot $10.25 per foot Docking Fees - Commercial - Per month $ $ Docking Fees - Commercial - Per season $1, $1, Docking Fees - Recreational-Per overnight - up to 25' $1.50 per foot $1.75 per foot Docking Fees - Recreational-Per overnight - over 25' $1.50 per foot $1.75 per foot Docking Fees - Recreational-Per Month - up to 25' $ $ Docking Fees - Recreational-Per Month - over 25' $11.50 per foot $11.75 per foot Docking Fees - Recreational-Per Season - up to 18' $ $ Docking Fees - Recreational-Per Season - over 18' $50.00 per foot $51.50 per foot **Length includes bow sprint or pulpit, swim platform and auxiliary dinghies Launching Fee Per day (includes tax) $7.00 $8.00 Launching Fee Per Season - Resident (includes tax) $45.00 $50.00 Launching Fee Per Season - Non Resident (includes tax) $55.00 $60.00 Hydro Per Season $ $ Short term trailer storage approved by Harbour Attendant $5.00/day $6.00/day **Cancellation fee applies if notice received prior to June 30th refund pro-rated + $25.00 admin fee **Cancellation after June 30th non-refundable RENTALS PARKS/FIELDS MAY 1 TO OCTOBER 31 UNLESS PERMITTED Baseball diamond- rental/hour $19.00 $19.50 Baseball diamond- drag & line/each $15.00 $15.50 Baseball diamond- lights/hour $7.25 $7.50/hr Park full -no public access/day $ $ Park partial - event area/day $ $ Park partial /3 hour $55.00 $20.00/hr each additional Soccer pitch full size- rental/hour $15.50 $16.00 Soccer pitch full size- line/each $41.25 $41.50 Soccer pitch full size- lights/hour $7.25 $7.50/hr Soccer pitch full size- field layout $82.50 $83.00 Soccer pitch 3/4 size rental/hour $11.00 $11.50 Soccer pitch 3/4 size- line/each $33.00 $33.50 Soccer pitch 3/4 size- field layout/each $65.00 $65.50 Soccer pitch mini- rental/hour $10.00 $10.50 Soccer pitch mini- line/each $22.00 $22.50 Soccer pitch mini- field layout/each $55.50 $60.00 Soccer pitch micro- rental/hour $5.50 $6.00 Soccer pitch micro- line/each $11.50 $12.00 Soccer pitch micro- field layout/each $27.75 $28.00 Amphitheatre - minmum 3 hour $20.00/hr each additional Amphitheatre Hydro Fee $7.50/hr Tennis Court/Multi Use Court/Skatepark/day $77.25 $79.00 Tennis Court/Multi Use Court/Skatepark/Max 3hours $15.50 $16.00 Track & Field/Rugby/Football- line $82.50 $85.00 **Registered non-profit youth leagues pay 50% for park field rentals 57 of 96

58 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee Including HST 2016 Fee Excluding HST 2017 Proposed Fee SECTION D1- PRC- PARKS, FACILITIES, PROGRAMS AND SPECIAL EVENTS RENTALS- SERVICE 8' Table - delivered $8.50 each $8.75 each Barricades $9.50 each $9.75 each Chair $2.25 each $2.50 each Chair - White Folding (indoor use only) $2.75 each Delivery - In Town (labour & vehicle) $30.00 Delivery - Out of Town (labour & vehicle) $0.80/km + 10% Garbage/Recycling pail - delivered $3.00 each Garbage Removal Special Events/hour $ Metal fence - 10'x8' section - delivered $20 per section $25 per section Metal fence - 10'x8' section - delivered out of town $25 per section $30 per section Playground Inspection $50.00/hr Risers - delivered $10.50 each $11.00 each Staging (Wooden) - delivered $87.50 each $90.00 each Staging (sectional) - delivered and assembled with stairs $25.00 each Stantions - delivered $2.00 each $2.25 each Man Lift Rental - Facilities $150/day **Cancellation fee if notice not received within 48hrs of rental 10% of rental RENTAL- FACILITIES Centennial Aquatic Centre Pool Basic Max. 25 people $77.25 $79.50 Non-Profit Youth Max. 25 $38.65 $39.75 Pool and Room (1 hour each) Max. 25 people $ $ Pool- over 25 people additional guards required $20.50 each $21.00/hr/guard Base Room Rental -Public $25.00/hr Base Room Rental Non-Profit Organization $15.00/hr Central Park Outdoor Rink Lights $7.25/hr $7.50/hr Summer General Rental $230.00/day REMOVE Summer General Rental - Non-Profit Youth $113.00/day REMOVE Summer General Rental $45.00 max 3hrs $20.00/hr Winter General Rental $95.00 $84.07 $88.50 Curling Club During event $72.00/hr $74.00/hr Setup, tear down, overnight $20.00/hr $22.00/hr Upstairs lounge $50.00/hr Upstairs lounge - with floor rental $100.00/event Eddie Bush Memorial Arena & Central Park Arena Basic Rate $192.78/hr $198.68/hr Minor Sports Groups (CMHA, Collingwood Skating Club, Schools) $96.46/hr $99.34/hr Non Prime Ice rental (Monday - Friday 7am - 4:00pm & 10:00pm - 12:00am) $96.46/hr $99.34/hr Tournaments(15+ hours) $146.02/hr $129.22/hr $133.10/hr Adult program $153.98/hr $158.40/hr Commerical rate (hockey camps, hockey clinics, etc.) $146.02/hr $129.22/hr $133.10/hr Summer Floor Rental - Eddie Bush Memorial Arena $900/day Summer Floor Rental - Eddie Bush Memorial Arena $74.00/hr Multi-Purpose Room $25.00/hr Sports Hall of Fame $115.00/day $120.00/day Mezzanine $115.00/day Advertising- Wall $378.10/year Advertising-Clock $491.90/year Advertising- Scoreboard $491.90/year Advertising- Board $575.00/year Advertising- Ice $750/year plus logo cost Sunset Point Pavilion Pavilion 18.50/hr $19.00/hr 58 of 96

59 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee Including HST 2016 Fee Excluding HST 2017 Proposed Fee SECTION D1- PRC- PARKS, FACILITIES, PROGRAMS AND SPECIAL EVENTS PERMITS Special Event Permit Community Not-For-Profit - event under 300 people $25.00 Special Event Permit Community Not-For-Profit - event people $50.00 Special Event Permit Community Not-For-Profit - event people $ Special Event Permit Private function or for-profit - event under 300 people $ Special Event Permit Private function or for-profit - event people $ Special Event Permit Private function or for-profit - event people $ SECTION D2- PRC- CULTURE- MUSEUM GENERAL Admission $3.00/person donation Staff Costs $24.00/hr Photocopies-any size $0.25 RENTAL - EQUIPMENT Slide Projector $10.00 Overhead Projector $10.00 Damage Deposit $ RENTAL - FACILITY Adult Collingwood Resident $150.00/3 hr max Children Collingwood resident $90.00/3 hr max Adult/Children Non-Resident $165.00/3 hr max Additional Hours $55.00/hr TOURS Group Guided Tour $55/hr/ 20 participants Group Tour: self-guided By donation Bus tour/museum tour/interpreter $ Step on Bus Tours $75.00 Downtown Tour max 20 $35.00/group Downtown Tour 21 to 40 $70.00/group Group Walking Tour-East Side max 20 $35.00/group Group Walking Tour-East Side 21 to 40 $70/group Group Walking Tour-West Side max 20 $46.00/group Group Walking Tour-West Side $92.00/group SCHOOL PROGRAMMING $50 max 25, In House-local classes $2/additional student $3 per additional In House-Georgian Triangle classes student $3 per additional Remote - at school student $4.20 per additional Remote- Georgian Triangle Classes student $2.00 per additional Teacher use of program student Outreach Kits-One week loan $40.00 Outreach Kits-Over one week loan $5.00/day School Yearly Outreach Kits Unlimited Yearly Usage Membership Children's Group Programming Museum Member $10.00 Children's Group Programming Non Member $12.00 **Cancellation notice not received within 48hrs of Program fee non refundable 59 of 96

60 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee Including HST 2016 Fee Excluding HST 2017 Proposed Fee SECTION D1- PRC- PARKS, FACILITIES, PROGRAMS AND SPECIAL EVENTS SECTION D2- PRC- CULTURE- MUSEUM SPEAKING ENGAGEMENTS In House By Donation Research required/community History/ Group Request $40.00 Minimum Mileage Fee (Outside Collingwood) 0.55/km RESEARCH Mylar Encapsulation of Documents or Photography-14" x 18" $26.00 Remove Mylar Encapsulation of Documents or Photography-32" x 48" $41.50 Remove Research Inquiries 1/4 hr free Image & Research Inquiries Staff Assisted 1/4 hr free + $8.00/hour 1/4 hr free + $10.00/hour Research Inquiries by staff 1/4 hr free + staff cost Remove MEMBERSHIP FEES Individual annual membership $20.00 Family Membership $40.00 School Membership $70.00 Corporate Membership $ Benefactor Membership $ Life Membership $1, IMAGE REPRODUCTION PRINT 8 x 10 Print $ x 12 Print $ x 14 Print $ X 19 Print $ X 20 Print $ x 24 Print $ x 30 Print $ x 36 Print $ Larger images are by quote IMAGE REPRODUCTION DIGITAL Admin & Usage - Commercial* $30 per image Remove Admin & Usage - Non- Profit* $18 per image Remove Admin/New Scan** $10 per image Digital Image/Usage* $30 per Usage Mailing Fee Minimum Charge $5.00 *Applicable to images in the Public Domain (pre 1949) or those images for which the Town of Collingwood holds copyright **Applicable to images for which the Town of Collingwood does not hold copyright and are not in the Public Domain (pre 1949) 60 of 96

61 2016 FEES AND SERVICE CHARGES Service/Item 2017 FEE SECTION E1 - PLANNING APPLICATIONS Official Plan Amendment Official Plan Amendment with Zoning By-law Draft Plan Review - Subdivision Draft Plan Review - Condominium Draft Plan Review- Condominium after Site Plan Application $7, $2, contingency fee $10, $3, contingency fee $15, $4, contingency fee $10, $2, contingency fee $4, $2, contingency fee Registration of Plan of Subdivision $4, Pre-consultation $ $3, $1, Zoning By-law contingency fee $1, $ Removal of Holding Provision contingency fee $3, $2, Temporary Use By-law contingency fee Compliance: Zoning Request $ Compliance: Site Plan Control Agreement $ $ plus Compliance: Complicated - more than one property $75.00/hour research time $1, $ Land Sales, Easements & Encroachments contingency fee $5, $2, contingency fee all 3rd submission drawings Site Plan Control Application $ $3, $2, contingency fee all 3rd submission drawings Site Plan Control Application sq m or less $ Discharge of Agreements $ $3, , contingency fee all 3rd submission drawings Amendment to Site Plan Control Agreement $ $ $1, Minor Adjustment to Site Plan Control Agreement contingency fee $ $ Tree Protection By-law -.05 to 2 hectares contingency fee $1, $ Tree Protection By-law - Greater than 2 hectares contingency fee $1, $1, Tree Protection By-law-within an Environmental Policy, Conservation, or Recreation Area contingency fee $1, $1, Deeming By-law contingency fee $1, $ Parking Exemptions contingency fee 61 of 96

62 2016 FEES AND SERVICE CHARGES Service/Item 2017 FEE SECTION E1 - PLANNING Part Lot Control By-law Condominium Exemptions Extension of Draft Approval Red Line Revision Model Home Application Radio Communications - Protocol Conformity Review Process MISCELLANEOUS $1, $1, contingency fee $1, $ contingency fee $2, $ contingency fee $3, $2, contingency fee $3, $2, contingency fee $3, $2, contingency fee 11 x 17 Coloured $ x 36 B&W $ x 36 Coloured $72.00 Maps Coloured Official Plan Zoning By-law $2.00/ inch to plot $200 paper/ $20 CD /Web site free $240/binder with tabs Zoning By-law CD $20.00 Black/White Photocopies Colour Photocopies COMMITTEE OF ADJUSTMENT Minor Variance - Regular applications with considerable review Minor Variance - Checkbox form with minimum review Consent to Sever $0.25/page $0.50/page $1, $2,000 contingency if required $ $2,000 contingency if required $2, $2,000 contingency if required additional application on same property $ Certificate of Validation - property title $1, Applicant does not attend resulting in deferral and re-circulation of Notice $ Consent to Sever results in 911 re-addressing cost to adjacent owners $ per affected address 62 of 96

63 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION F1- MUNICIPAL SERVICE BOARD- AIRPORT PRODUCTS 100 LL Itinerant Based on Market Price Jet A-1 Itinerant Based on Market Price Jet A-1 Based Based on Market Price 100 LL CNY3 Based Based on Market Price MO Gas Based on Market Price Oil- 15W50/20W50 $12.25 $14.45 Oil- W65/W80/W100 $10.50 $12.40 PARKING Overnight without fuel purchase Single $15.00 Twin $18.00 Jet/Turboprop under $40.00 Jet/Turboprop over $70.00 Overnight with fuel purchase Single N/C Twin $10.00 Jet/Turboprop under $25.00 Jet/Turboprop over $55.00 LANDING Single N/C Twin $20.00 Twin/Jet/Turboprop under $60.00 Jet/Turboprop over $80.00 TIE-DOWN Tarmac $60.00/month Grass $50.00/month HANGAR'S PRIVATE Hangar Application Fee $1, Hangar Annual Lease Indexed Annual on prior years' CPI Hangar Development Fee $8, Hangar Lease Transfer Fee $ MISCELLANEOUS SERVICES Ground Power Unit Service $70.00/start Call Out $85.00/hour Hydro Hook-up $18.00/day $ of 96

64 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION F2- LIBRARY FINES Overdue - Books $0.25/day (to a max. of $2/item) Overdue - Video/DVD $1.00/day (to a max. of $5/item) Overdue - Compac Disc $.25/day (to a max. of $2/item) Overdue - Audio Books $.25/day (to a max. of $2/item) Lost or Damaged Audio Books Replacement Cost + $4.42 processing fee Lost or Damaged Books- Hardcover, Paperback, Children's or Trade Replacement Cost + $2.21 processing fee Lost or Damaged DVD, Video or CD Replacement Cost + $2.21 processing fee MEMBERSHIPS Institutional $25.00/year Non-Resident Household $10.00/ month or $120.00/year Non-Resident High School Students No Charge Visitor $15.00/month RENTALS Commercial And Other Groups Room Rental $50.00/hr Not for Profit Groups Room Rental $15.00/hr Room Preparation $15.00/hr Room Rental Late Charge first 15 minutes over time booked $50.00 Room Rental Late Charge for every 15 minutes thereafter $ SALES Art Sales 30% commission USER FEES Fax Machine $2.00 1st page + $1.00 each additional page Photocopies (Black and White) any size $0.13/page Printing $0.13/page Microfilm reader/printer $0.22/page 64 of 96

65 2017 FEES AND SERVICE CHARGES Service/Item SECTION G1 - BUILDING 2017 Fee PERMITS Minimum Permit Fee $ First $1, of construction value $ Additional charge per every additional $1000 construction value $10.00 Apartments $0.85/sq. ft. Assembly $0.85/sq. ft. Business and Personal Services (Finished) $1.00/sq. ft. Business and Personal Services (Shell only) $0.85/sq. ft. Deck $ Demolition - Buildings under 600 m. square $ Demolition - Buildings over 600 m. square $ Fireplace, woodstove, chimney $ Garages and accessory buildings $0.30/sq. ft. Hotel/Motels $0.85/sq. ft. Industrial (Finished) $0.70/sq. ft. Industrial (Shell only) $0.50/sq. ft. Installation of New Sewer System not to exceed 10,000 litres/day $ Institutional $1.25/sq. ft. Mercantile (Finished) $1.00/sq. ft. Mercantile (Shell only) $0.85/sq. ft. Private Pools $ Public Pools $ Repairs to Private Sewage System $ Residential Dwellings and Additions $0.85/sq. ft. Residential Interior Renovations $0.45/sq. ft. Right of Entry $50.00 Right of Entry- Renewal $10.00 Sign Permit "A" Frame-one time fee $75.00 Sign Permit: Permanent Sign $75.00 Sign Permit: Temporary Sign $75.00 Solar Panels on Building $ Temporary Structures $ MISCELLANEOUS Inspection on permit more than one year old $ Building Compliance Request $ Lot Grading Deposit $3, File Retrieval Fee $ of 96

66 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION G2 - NON-TAX SUPPORTED-PARKING Parking Hurontario Street between northerly limit of Hurontario Street & Fourth Street $0.75 / hour $1.00 / hour Parking on Side Streets $0.50 / hour $0.75 / hour Parking Lots $0.50 / hour $0.75 / hour Parking Permits in Lots - Monthly $45.00 $50.00 / month Parking Permits in Lots - Monthly day/night $90.00 $ / month Yearly Parking Permit in Lots $ / year Parking Lot Closure and Street Closure $4.00 / space per day $8.00 / space per day Payments in Lieu of Parking $5,000.00/space 66 of 96

67 2017 FEES AND SERVICE CHARGES Service/Item SECTION H1 TRANSPORTATION TRANSIT Colltrans Adult Monthly Pass Colltrans Senior/Student Monthly Pass Wasaga-Link Monthly Pass Blue Mountain-Link Monthly Pass Universal Monthly Pass (Wasaga Beach, Colltrans, Wasaga-Link) Colltrans Adult Fare Colltrans Senior/Student Fare Wasaga-Link Fare Blue Mountain-Link Fare 2017 Fee $40.00/Month $30.00/Month $40.00/Month $40.00/Month $120.00/Month $2.00/fare $1.50/fare $2.00/fare $2.00/fare 67 of 96

68 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION A1 - WATER DEPARTMENT OPERATIONS Municipal Water Supply-Monthly Charges Water Service Supply Charge - up to 1 1/4" line $21.38 $21.91 Water Service Supply Charge - 1 1/4" line $27.01 $27.69 Water Service Supply Charge - 1 1/2" line $40.99 $42.02 Water Service Supply Charge - 2" line $60.30 $61.81 Water Service Supply Charge - 3" line $90.18 $92.43 Water Service Supply Charge - 4" line $ $ Water Service Supply Charge - 6" line $ $ Water Service Supply Charge - 8" line $ $ Water Service Supply Charge - 10" line $ $ Municipal Water Consumption Filtered Water Consumption Charge - Residential $0.635/cubic meter of water consumption $0.651/cubic meter of water consumption Filtered Water Consumption Charge - Residential For consumption > 4 May, June, July, Aug. & Sep. $1.147 per cm May, June, July, Aug. & Sep. $1.176 per cm Filtered Water Consumption Charge - General $0.635/cubic meter of water consumption $0.651/cubic meter of water consumption Process Water Consumption Charge - Industrial $0.201/cubic meter of water consumption $0.206/cubic meter of water consumption $67.55 for 1st month based on estimate $69.24 for 1st month based on estimate of 50 cm of water consumption of 50 cm of water consumption Non-Metered (Flat Rate) Water Consumption Charge Increases by 50% each month thereafter. Increases by 50% each month thereafter. Bulk Water $2.50/cubic meter $2.75/cubic meter Municipal Water Misc. Service Charges Late Payment Charge 1.5% Cumulative Monthly Administrative Charge as a % of material and contract cost 15% Fire Hydrant Rental $ per year $ per year Highway #26 East Watermain Project $5,264.00/connection + $173.08/m frontage $5,432/connection + $178.62/m frontage Silver Creek Drive Improvement Project $ per m of frontage $ per m of frontage Osler Bluff Road Improvement Project $224.55/m frontage to max m + meter cost $231.74/m frontage to max m + meter cost Mountain Road Trunk water main connection $5, includes water meter $5, includes water meter Water Service Installation or Repair Actual Costs + overhead charge & admin. fee Time & Materials Water Meter Kit Purchase - up to 3/4" meter includes transmitter $ per meter Water Meter Purchase - > than 1" meter Actual Costs plus Admin. Fee Time & Materials Touch pad replacement $10.00 Transmitter $ Disconnection of a water service at main Actual Costs + Admin. fee Time & Materials Temporary removal and reinstallation of meter Actual Costs + Admin. fee Time & Materials Construction water supply-residential $63.00 per construction unit $65.00 per construction unit Construction water supply-non Residential $ $ of 96

69 2017 FEES AND SERVICE CHARGES Service/Item 2016 Fee 2017 Proposed Fee SECTION A1 - WATER DEPARTMENT Vehicle Rental Charge Service Truck & Pickup $15.00 / hour $16.25 / hour Large Truck $25.00 / hour $25.00 / hour Flat-Bed Truck $15.00 / hour $16.25 / hour Dump Truck $45.00 / hour $55.00 / hour Backhoe $45.00 / hour $62.00 / hour Small Track Hoe $25.00 / hour $45.00 / hour Rock Breaker $ / hour $ / hour Test Pump and Chlorinator $25.00 / hour $25.00 / hour Other Charges Water Service Turn on or off Charge - Regular Hours $45.00 per action Water Service Turn on or off Charge - Overtime/Emergency $ minimum Labour Charge - Normal Hours $50.00 per hour Labour Charge -Supervisor Normal Hours $70.00 per hour Inspection Charge Actual Costs + overhead charge & admin. fee Time & Materials Watermain Chlorination and Bacti Testing Actual Costs + overhead charge & admin. fee Time & Materials Water Service Thawing Actual Costs + overhead charge & admin. fee Time & Materials SECTION A2 - SANITARY SEWER DISPOSAL WASTE WATER TREATMENT Dumping of Raw Sewage - Haulers $17.10/m3 ($78.00/1,000 Gal) $17.70/m3 ($80.73/1,000 Gal) Dumping of Raw Sewage - Portable Toilets $17.10/m3 ($78.00/1,000 Gal) $17.70/m3 ($80.73/1,000 Gal) Dumping of Raw Sewage - Recreation Vehicles $17.10/m3 ($78.00/1,000 Gal) $17.70/m3 ($80.73/1,000 Gal) Extra Strength Surcharge Application $ $ Extra Strength Surcharge Application - Renewal or Amendment $80.30 $ Extra Strength Surcharge Rate $0.89/kg $0.92/kg Special Events $17.10/m3 ($78.00/1,000 Gal) $17.70/m3 ($80.73/1,000 Gal) SEWER SURCHARGE MONTHLY SUPPLY CHARGES General (Commercial/Industrial) $48.08 $49.75 Residential $48.08 $49.75 Municipal water service to location - 1 1/4" line $60.90 $63.03 Municipal water service to location - 1 1/2" line $91.34 $94.53 Municipal water service to location - 2" line $ $ Municipal water service to location - 3" line $ $ Municipal water service to location - 4" line $ $ Municipal water service to location - 6" line $ $ Municipal water service to location - 8" line $ $ Municipal water service to location - 10" line $ $ SEWER SURCHARGE MONTHLY CONSUMPTION CHARGES Residential $0.722 $0.748 General $0.722 $0.748 Municipal water service to location - 1 1/4" line $0.722 $0.748 Municipal water service to location - 1 1/2" line $0.722 $0.748 Municipal water service to location - 2" line $0.722 $0.748 Municipal water service to location - 3" line $0.722 $0.748 Municipal water service to location - 4" line $0.722 $0.748 Municipal water service to location - 6" line $0.722 $0.748 Municipal water service to location - 8" line $0.722 $0.748 Municipal water service to location - 10" line $0.722 $0.748 SEWER CONNECTION CHARGE Huronia Pathway $ per meter of frontage $ per meter of frontage 69 of 96

70 Submitted to: Submitted by: Subject: Strategic Initiatives Standing Committee Michael Switzer, Manager of Finance Update on Debt Position STAFF REPORT #T /7/ /12/2016 Amendments: [] PURPOSE The purpose of this report is to provide an update to the Committee on the annual tracking of the Debt Management Plan implementation. RECOMMENDATION: THAT Council receive Staff Report T consistent with the Town s Strategic Financial Plan. 1. BACKGROUND At the February 2 nd, 2015 Council meeting, Council adopted the following recommendations related to debt servicing limits: A water debt servicing limit not to exceed 7% of the water utility own source revenue be adopted. A wastewater debt servicing limit not to exceed 7% of the wastewater utility own source revenue be adopted. A tax supported debt servicing limit not to exceed 7% of tax supported own source revenue be adopted. 2. INPUT FROM OTHER SOURCES Municipal Act, 2001 as amended; Municipal Study 2016, BMA Management Consulting Inc., November 2016; Assessment of the Town of Collingwood s Financial Health, BMA Management Consulting Inc., November 2016; of 96

71 3. APPLICABLE POLICY OR LEGISLATION Municipal Act, 2001 as amended This staff report supports the following Key Performance Indicators outlined in the Community Based Strategic Plan: Continue implementing the approved Debt Management Plan (DMP) and; The DMP is monitored on a semi-annual basis 4. ANALYSIS The BMA report identifies debt as an important indicator of the Town s financial health. Debt is an appropriate way of financing longer life infrastructure, and infrastructure related to growth, that is not fully recovered through DCs. However, when debt levels get to high, it compromises the Town s flexibility to fund programs and services. The analysis below will outline details regarding four categories of debt. It will specify the balance in each category as at December 31, 2015 and More importantly it will provide the debt servicing costs as a percentage of own source revenues 1 (debt servicing indicator) which measures the percentage of revenues devoted to servicing debt. This indicator shows the extent to which a municipality must use revenue to pay interest and principal costs rather than pay for programs and services. The BMA report states that credit rating agencies recommend debt servicing costs should be below 10% of own source revenues. The Town s policy is that debt servicing costs not exceed 7% of own source revenues. As you will see from the analysis below external debt servicing costs alone exceed the policy by roughly two and a half percent. This coupled with the Town s levy per capita being the highest in its peer group, and a high reliance on the residential assessment, limits the Town s flexibility to fund programs and services and respond to unforeseen expenditures. It is important to note however that the debt servicing indicator has improved from the prior year for existing debt. 1 Own source revenues are revenues a government raises by levying taxes, user fees or by generating business or other income. It is all amounts of money received by a government from external sources, net of refunds and other correcting transactions. It does not include money from the issuance of debt or the sale of investments of 96

72 External Debt The Town defines debt as external, contractual debt, typically in the form of bank loans, debentures and mortgages. The following chart shows our consolidated historic levels of external debt: 50,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, External Debt At December Total External Debt $31,521, % $33,691, % Details of each outstanding debenture is provided in Appendix A. Total external debt has decreased from 2015 to 2016 as a result of regular principal repayments. Debt servicing costs as a percentage of own source revenue has decreased indicating the Town is moving toward the 7% debt servicing limit. The decrease in debt servicing costs is because of lower debt principal balances which resulted in less interest. Interest payable in 2016 was $139,586 less than The Raglan Street debenture (By-Law ) was issued on December 15, 2016 in the amount of $1,199,000. Principal repayments for this 10 year serial bond will begin in of 96

73 Internal Loans and Notes The Town s internal loans and notes represent transfers from reserves to the capital fund. These have been used as a source of alternative financing and reflect borrowing, from existing reserves for approved projects, to finance unfunded projects which Council has made a decision to proceed with. They are notional in nature with the exception of amounts loaned to the Water Services Department. Currently, the Town has the following outstanding internally financed loans and notes: Annual Repayment Balance Heritage Park Wellness Centre Concept $ 50,000 $ 400,557 Waterfront Trail $ 50,000 $ 801,926 OPP Renovations* maximum estimate N/A $ 627, Tenth Line $ 68,467 $ 821,601 Water Services Department Promissory Note $ 347,095 $ 5,209,351 Total Internal Loans and Notes $ 515,562 $ 7,861,337 *The OPP renovations are not anticipated to be completed by December 31, The costs incurred to year to date are $75,659. There is no annual repayment because the project has not been completed. At December Total Internal Loans & Notes $7,861, % $8,272, % Cumulative Balance $39,383, % $41,963, % The decrease of internally financed loans and notes from 2015 to 2016 is a result of principal repayments and funding of the Sunset Point Canteen (see Appendix B). The internal debt servicing indicator also decreased. This was due to higher projected own source revenues in 2016 and a reduction to the 507 Tenth Line annual repayment. Although the debt servicing indicator in this category has improved slightly, the OPP renovations have been earmarked for internal funding. This project will add approximately $60,000 to the annual debt servicing costs and will increase the indicator from 1.02% to 1.14%, moving the Town away from the 7% debt servicing limit of 96

74 Committed External Debt Committed external debt refers to capital projects that are completed or underway and were approved based on debenture financing which has not yet been placed. It is estimated this debt will be placed sometime in The following projects have been committed to be funded by debenture. Proceeds Will Be Used to Fund Eddie Bush Arena Phase 2 Curling Club Partnership Shipyards Walkway Phase 2 Potential Terms Estimated Repayment Maximum Balance Committed Potential Annual Interest Rate 2.51%* Serial debenture 10 year term $ 31,118 $ 250,000 Potential Annual Interest Rate 2.51%* Serial debenture 10 year term $ 56,012 $ 450,000 Potential Annual Interest Rate 3.21%* Serial debenture 20 year term $ 114,377 $ 1,400,000 Total Committed Debt $ 201,507 $ 2,100,000 * Interest rates based on Infrastructure Ontario indicative lending rates as of November 25, The funding for this new debt will have to be raised through tax revenues. At December Total Committed External Debt $ 2,100, % $ 3,210, % Cumulative Balance $ 41,483, % $ 45,173, % Both committed external debt and the committed external debt indicator have decreased from 2015 to Committed external debt is lower because the Raglan Street debenture will be sold on December 15, See details on adjustments in Appendix B. More importantly the debt indicator in this category has decreased as a result of lower annual debt payments moving the Town closer to the 7% policy limit. The majority of the decrease in annual debt payments is largely due to the relocation of the Raglan Street debenture from this category to the external debt category. This accounted for a reduction of $88,383 in debt repayments. When this additional debt is assumed, 11.1% of the Town s own source revenue will be used to pay principal and interest in of 96

75 Potential Debt Potential debt amounts are based on both the 2016 capital budget requests and discussions with management. The funding sources for these projects are unknown at this time. These projects may require debt financing if completion is required before sufficient reserves are available. The majority of these projects could be within the term of this Council and require consideration within the context of this report. Debt should not be seen as a source of funding for these projects unless it is absolutely necessary. Council may or may not proceed with any of the following items below: PRC Sunset Point Park Redevelopment - $200,000 Waterfront Master Plan and Development - $3,677,500 Eddie Bush Refurbishment Phase 3 - $750,000 Eddie Bush Refurbishment Phase 4 - $750,000 Water Front Master Development Plan - $17,000,000 Per discussion with management these projects (with the exception of the Water Front) have health and safety and accessibility drivers. As a result completion may be required before sufficient reserves and reserve funds can be accumulated. Roads Per discussion with management the High Street Widening (Tenth to Poplar) and 10 th Line Urbanization projects are not currently essential to meeting the communities required level of service. Therefore these projects will be completed only when sufficient reserves and reserve funds have accumulated (Pay as you Go policy). As a result these projects will not require any debt financing. Water There are several projects in the Rate Study and Development Charge Study that indicated external financing would be required. The acting COO and CFO of Water Services have reviewed their capital plan and are certain that this financing will not be required within the next five years. In other words the water and wastewater rates will provide sufficient funds for these capital projects. The total potential new debt that could be contemplated over this term of Council is $22,377,500. All of these funds would be tax supported debt. The first annual payment on the additional debt, based on the November, Infrastructure Ontario rate of 3.21% for a 20 year serial debenture, would be $1,828,189. Note that total payments for serial debentures will decrease gradually each year as principal is repaid of 96

76 At December Total Potential Debt* $22,377, % $5,377, % Cumulative Balance $63,860, % $50,551, % *Debt will be tax supported. Total potential debt has increased due to the addition of the Water Front Master Plan. The Town s estimated contribution to this project is approximately $17M and will be expended over roughly 15 years in various phases. The debentures issued to finance this project will coincide with the each phase however in the context of this report it is important to show the aggregate impact of using debentures to fully fund the Town s portion of the Water Front Master Plan. The potential debt indicator has increased as a result of higher annual debt servicing payments ($1.8M in 2016 compared to $426,178 in 2015). Debt servicing payments are higher because total potential debt is higher. The total potential debt indicator has increased from Assuming any of the debt above will move the Town further away from the 7% limit. 70,000,000 Cumulative Debt Balances 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 Potential Debt Committed External Debt Internal Loans and Notes External Debt 10,000, External & Internal Debt Servicing Costs Historical debt servicing costs (principal and interest) are illustrated in the following graph. It should be noted that not all of these costs are paid directly from taxes. Water, wastewater, BIA, development charges and recoveries from South Servicing properties account for about 48% of the annual repayments. Tax revenues form the largest portion of the funds for repayment of 96

77 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - External & Internal Debt Servicing Costs Internal Debt Servicing Costs External Debt Servicing Costs Historical Debt Servicing Costs as a Percentage of Own Source Revenues External Debt Servicing Costs External Debt Servicing as a % of Own Source Revenues Internal Loans and Note Servicing Costs Combined Debt, Loans and Notes Own Source Year Revenues 2006 $ 3,500,287 $ 32,524, % 2007 $ 3,219,791 $ 33,946, % 2008 $ 3,308,594 $ 37,393, % 2009* $ 4,604,726 $ 41,270, % 2010 $ 4,164,008 $ 45,238, % 2011 $ 6,297,722 $ 45,229, % 2012 $ 6,009,806 $ 44,817, % $ 50, % 2013 $ 5,617,042 $ 46,847, % $ 50, % 2014 $ 4,806,224 $ 49,804, % $ 530, % 2015** $ 4,969,800 $ 49,956, % $ 530, % 2016*** $ 4,867,131 $ 50,455, % $ 515, % *The 2009 debt servicing costs have been adjusted to remove the large balloon payment of $3,775,000 to provide a more appropriate year to year comparison. If this lump sum payment is included in the figures, the 2009 percentage is 20.34%. **Updated to actual 2015 Own Source Revenues per the 2015 FIR. Estimate amount per Report #T was $ 51,298,866. ***2016 projected Own Source Revenues based on 2015 actual plus a 1% increase. Town s policy that debt charges not exceed 7.00% Including external debt servicing costs only the percentage is 9.65% Including internal loans & note servicing costs the percentage is 10.67% Including committed debt servicing costs the percentage is 11.07% Including potential debt servicing costs the percentage is 14.69% WHERE WE ARE of 96

78 These would be the overall percentages for water, wastewater and tax supported debt. The chart below provides further detail on the component parts of own source revenues and debt. Water Wastewater Tax Supported Estimated own source revenues $ 6,179,602 $ 7,986,913 $ 36,289,252 $ 50,455,767 Debt servicing costs: Existing external debt $ 146,171 $ 1,696,297 $ 3,024,663 $ 4,867,131 Internal loans and notes $ 347,095 $ 168,467 $ 515,562 Committed external debt $ 201,507 $ 201,507 Potential external debt $ 1,828,189 $ 1,828,189 Total Debt servicing costs $ 493,266 $ 1,696,297 $ 5,222,826 $ 7,412,389 Water Wastewater Tax Supported % of own source revenues: Existing external debt 2.37% 21.24% 8.33% 9.65% Internal loans and notes 5.62% 0.46% 1.02% Committed external debt 0.56% 0.40% Potential external debt 5.04% 3.62% Cumulative % of own source revenues 7.98% 21.24% 14.39% 14.69% From the analysis above, no more external debt or internal loans and notes should be incurred for wastewater projects. Both the Water and Wastewater Rate Study and the Development Charges Background Study do not rely on debt issuance to complete the wastewater projects that have been contemplated. It should be evident that as the Town s tax levy, water rates and wastewater rates increase, debt as a percentage of own source revenue will decrease given that no additional debt is issued. The Town s debt servicing costs as a percentage of own source revenues still exceed the policy limit of 7%. The Town has made progress towards this limit in each debt category with the exception of potential debt. Nonetheless high debt levels limit the Town s flexibility to respond to unforeseen expenditures. It is also critical to note that the Town s levy per capita is the highest in its peer group and eighth highest out of the approximate 100 municipalities included in the BMA Study. As such taxes should not be seen as a funding source to take on additional debt. It is the recommendation of this report that no additional debt, beyond what has already been committed, be assumed. The BMA report recommended updating the debt policy to incorporate limits. These limits were approved by Council at the February 2, 2015 Council meeting and were outlined in the background section of this report. Given the long term nature of debt it is important these limits continue to be enforced and considered before any debt decisions are made of 96

79 It should be noted that, notwithstanding any limits that Council has approved to limit increasing debt, the ultimate decision on any recommended debt or borrowing rests solely with Council. Debt decisions will be considered through the municipal budget process and will require bylaw approval to apply for any debentures. 5. EFFECT ON TOWN FINANCES The purpose of this report was to provide Council with updated information regarding our current and potential external debt and internal loans and note position. What this report tells us is the Town s debt situation is slowly improving but it is not in a position to take on additional debt in any form beyond what has been committed. 6. APPENDICES & OTHER RESOURCES Appendix A Appendix B Current Outstanding External Debt Instruments Summary of Debt Category Changes Resource 1 Municipal Study 2016 Resource 2 BMA Report, November 2016 SIGNATURES Prepared by: Michael Switzer, CPA, CA Manager of Finance Town of Collingwood Department head: Marjory Leonard, MBA, CPA, CMA, CFP Treasurer Town of Collingwood of 96

80 Appendix A Current Outstanding External Debt Instruments By-law No. Proceeds Were Used to Fund: Purchase of Annex building $ 995,000 Black Ash Creek Channelization - $6,250,000 East End Force main - $6,100, Airport Terminal - $384,744 South Servicing - $8,670,000 Mountain Road Realignment - $388,539 Cambridge/First Extension - $246,103 Sanitary Sewer Renewal Phase 1 - $3,762, Sewer Renewal Program Phase First/Huron Streets Reconstruction Downtown Revitalization Downtown Revitalization BIA portion Library/Municipal Office Building Sewer Renewal Program Phase New Fire Station Terms Annual Interest Rate 5.58% Issued through Capital Markets Amortizing debenture Due December 9, Repayment Required Outstanding Balance December 31, 2016 $ 1,115,804 $ 7,121,709 Annual Interest Rate 5.57% Serial debenture Due November 1, 2028 $ 1,112,575 $ 8,070,124 Annual Interest Rate 3.07% Serial debenture Due November 2, 2020 Annual Interest Rate 3.55% Serial debenture Due November 2, 2020 Annual Interest Rate 3.55% Serial debenture Due November 2, 2020 Annual Interest Rate 4.30% Serial debenture Due November 2, 2030 Annual Interest Rate 4.30% Serial debenture Due November 2, 2030 Annual Interest Rate 3.09% Serial debenture Due November 2, 2023 Annual Interest Rate 3.22% Serial debenture Due November 2, 2034 $ 606,522 $ 2,175,742 $ 394,963 $ 1,394,274 $ 306,895 $ 1,083,380 $ 59,671 $ 525,000 $ 579,695 $ 5,100,318 $ 272,414 $ 1,576,400 $ 259,295 $ 2,970, Raglan Street Annual Interest Rate 2.46% Serial debenture Due $ 148,656 $ 1,199,000 December 15, Purchase of Fisher Field Non-interest bearing mortgage $51,000 $306,000 Due Date March 1, 2022 Total $ 4,867,131 $ 33,691, of 96

81 Appendix B Summary of Debt Category Changes Internal Loans and Notes Loan 2015 Report Balance 2016 Report Balance Variance Explanation Heritage Park Wellness Centre $ 450,557 $ 400,557 Regular principal repayment of $50,000 Waterfront Trail $ 851,926 $ 801,926 Regular principal repayment of $50,000. OPP Renovations $ 376,000 $ 627, balance was based on 2015 budget balance is based on actual expenditures incurred to date. 507 Tenth Line $ 1,017,504 $ 821,601 Regular principal repayment of $68,467. Sunset Point Canteen $ 100,000 $ 0 Project was fully funded through operations. Water Services Department $ 5,476,517 $ 5,209,351 Regular principal repayment of $267,166. TOTAL $ 8,272,503 $ 7,861,337 Committed External Debt Loan 2015 Report Balance 2016 Report Balance Variance Explanation Raglan Street (Hume to Ron $ 1,110,000 $ 0 Moved to external debt. Emo Road) Eddie Bush Arena Phase 2 $ 250,000 $ 250,000 No change. HVAC/Chiller Curling Club Partnership $ 450,000 $ 450, balance was based on 50% of actual cost. No change in Shipyards Walkway Phase 2 $ 1,400,000 $ 1,400,000 No change. TOTAL $ 3,210,000 $ 2,100, of 96

82 Potential Debt Loan PRC Sunset Point Redevelopment 2015 Report Balance 2016 Report Balance Variance Explanation $ 200,000 $ 200, balance is management s revised estimate to deal with accessibility and traffic control issues. No change in $ 3,677,500 $ 3,677,500 No change. Waterfront Master Plan and Development Eddie Bush Arena $ 750,000 $ 750,000 No change. Phase 3 Eddie Bush Arena $ 750,000 $ 750,000 No change. Phase 4 Water Front Master Plan $ 0 $ 17,000, amount is preliminary estimate of Town s contribution to the total project cost. TOTAL $ 5,377,500 $22,377, of 96

83 Submitted to: Submitted by: Subject: STAFF REPORT #T /7/ /12/2016 Amendments: [] Strategic Initiatives Standing Committee Michael Switzer, Manager of Finance Review of Reserves and Reserve Funds PURPOSE The purpose of this report is to provide the Committee with an overview and update on the reserve and reserve fund balances as at December 31, RECOMMENDATION: That Council receives Staff Report # entitled Review of Reserves and Reserve Funds for information purposes. 1. BACKGROUND Reserves and reserve funds fulfill the following critical financial needs for municipalities: Make provisions for the replacement / rehabilitation of existing Town assets; Provide for future liabilities; Provide source of contingency funding for one time and unforeseen events; and Provide flexibility to mange debt levels and protect the Town s financial position. A Reserve is an allocation of revenues set aside at the discretion of Council to provide for future expenditure requirements such as working funds, contingencies, equipment replacement or any other municipal need. They are generally used to support and or supplement activities which are normally funded through general revenues. Typically they are employed either to mitigate the impact of fluctuations in operating costs and revenue or to accumulate funds for future or contingent liabilities. In addition reserves are part of the accumulated surplus, from which they are not segregated. Council has discretion to redirect the funds in a reserve for any purpose of 96

84 that is of general benefit to the municipality at large. Reserves are created either through a provision in the current budget or by resolution or motion. Reserve Funds are segregated from the general assets of the municipality and are held in separate bank accounts with any/all interest earned on the balances being added to the respective reserve fund. Reserve funds are established through By-Law and are restricted to meet a specific mandate which is generally associated with a capital program. There are two reserve fund categories: Obligatory Reserve Funds and Discretionary Reserve Funds. Obligatory reserve funds are mandatory reserves created by statute. Examples include the Development Charge reserve funds, Parkland levy reserve funds and the Gas Tax reserve funds. Council does not have control over the application of these funds given that they were created by statute. Discretionary reserve funds on the other hand are created by Council through By-Law. These funds have specific mandates that have been defined by Council however there use is entirely at Council s discretion. Generally discretionary reserve funds are associated with large capital asset requirements. Fund balances have accumulated mainly through transfers from the revenue fund. 2. INPUT FROM OTHER SOURCES 1. Municipal Study 2016, BMA Management Consulting Inc., November 2016; 2. Assessment of the Town of Collingwood s Financial Health, BMA Management Consulting Inc., November 2016; 3. Town of Collingwood Asset Management Plan, Watson & Associates Economists LTD., June 24, APPLICABLE POLICY OR LEGISLATION Municipal Act, 2001 as amended This staff report supports the following Key Performance Indicators outlined in the Community Based Strategic Plan: Continue implementing the approved Debt Management Plan (DMP) and; The DMP is monitored on a semi-annual basis 4. ANALYSIS Reserves and reserve funds are critical to our long-term financial planning. The Assessment of the Town of Collingwood s Financial Health (BMA report) prepared by BMA Consulting identifies reserves and reserve funds as an important indicator of the Town s overall financial health. The Town s Asset Management Plan (AMP) prepared by Watson & Associates notes that the Town will be dependent upon maintaining of 96

85 healthy capital reserves/reserve funds in order to provide a portion of the lifecycle replacement funding. The December 2014 BMA Report recommended that the Town s Reserves and Reserve Funds be reviewed at least annually to ensure future liabilities are met, capital assets are maintained and replaced on a timely basis and that fund balances are sufficient enough to provide flexibility to respond to economic cycles. This report has been prepared to address this and will continue to be prepared annually. The analysis below will first outline the reserve section groups, the purpose of each section group and whether that group has sufficient funds to achieve its intended goal if applicable. Indicators specific to any section groups will also be addressed here. Second, analysis of the following BMA reserve indicators will be provided: Tax Discretionary Reserve Ratio Water Reserves as a Percentage of Water Own Source Revenue Wastewater Reserves as a Percentage of Wastewater Own Source Revenue Reserve & Reserve Fund Section Groups The Town maintains reserves and reserve funds designated for specific purposes as approved by Council. The following sections group reserves and reserve funds by their intended/legislated use. Stabilization/Contingency Reserves Stabilization/contingency reserves are used to offset extraordinary and unforeseen expenditure requirements, one-time expenditures, revenue shortfalls, manage cash flow and to minimize large fluctuations in the tax levy. The Government Financial Officers Association (GFOA) recommends stabilization reserves/reserve funds, for the general tax base, be within 5%-15% of taxation revenue. This range should provide sufficient liquidity and protection against unforeseen expenditure requirements. Stabilization/Contingency Reserves Dec 31, 2015 Balance Dec 31, 2016 Estimated Disaster Relief 7, , Employee Future Benefits 1,078, ,268, Emergency Social Services 28, , Operating Contingency 400, , Winter Control 300, , WSIB 333, , TOTAL 2,148, ,338, of 96

86 Based on the information above the stabilization/contingency reserves are within the 5%-15% range recommended by the GFOA. Currently the estimated December 31, 2016 stabilization/contingency reserves are 6.44% of tax related own source revenue. This percentage has increased slightly from 2015 s 5.98%. The increase is mainly due to an estimated increase in own source revenue and a larger estimated balance of stabilization/contingency reserves. The Town is still in the low end of the target range. Although the Town is within the GFOA recommended range more funds should be accumulated to provide additional liquidity and protection. Government Funded Reserve Funds Government funded reserve funds are used to track the revenues received from the Federal and Provincial Governments for transit and roads infrastructure. The funding that is received from other levels of government will be used in future budgets as per the guidelines of each program. Government Funded Reserve Funds Dec 31, 2015 Balance Dec 31, 2016 Estimated Federal Gas Tax 1,928, ,504, Provincial Gas Tax TOTAL 1,928, ,504, Council has no control over these funds. The different levels of government determine the funding that will be provided and restricts how that funding will be used. The Federal Gas Tax Fund is restricted to funding local public infrastructure projects and the Provincial Gas Tax is restricted to funding transit capital projects. The Provincial Gas Tax has a zero balance because normal practice has been to fully utilize it each year. Program Specific Reserves & Reserve Funds Program Specific reserves and reserve funds have been established in response to specific programs or special funding that has been received. Program Specific Reserves Dec 31, 2015 Dec 31, 2016 Balance Estimated BCRY Railway Balsam Debenture 206, , Mayor s Golf 32, , Physician Attraction Public Art 32, , Sailing School Cultural (Obligatory Fund) 8, , Greening (Obligatory Fund) TOTAL 280, , of 96

87 Program specific reserves do not have specific indicators or targets by which to compare actual balances. Balances are based on either the funding that has been received for a specific program or on management s best estimate of the program s future funding requirement. Corporate Use Reserves Corporate use reserves are established to provide for various potential future liabilities related to the operations of the Town. Corporate Use Reserves Dec 31, 2015 Dec 31, 2016 Balance Estimated General 617, , Legal 150, , Municipal Election 23, , Planning 8, Sustainability 39, , Collus Note Reserve 1,710, ,710, TOTAL 2,549, ,373, Corporate use reserves do not have specific indicators or targets by which to compare actual balances. Exceptions to this include the Municipal Election reserve and the Collus Note Reserve. The Municipal Election reserve has a target of $60,000 which is accumulated over a four year period starting in 2015 with annual contributions of $15,000. Currently the reserve is on track to achieve this target. The Collus Note Reserve is equal to the value of the promissory note previously issued to Collus. Board & Committee Reserves Board and Committee Reserves are established for the exclusive use of Boards and Committees of the Town. Boards and Committees Reserves Dec 31, 2015 Dec 31, 2016 Balance Estimated Accessibility Committee 30, , Airport BIA 137, , Elvis 1, , Heritage Committee 9, , Library - Capital Library - General 22, , Library - Internet 20, , TOTAL 222, , Board and Committee Reserves do not have specific indicators or targets by which to compare actual balances. Transfers to these reserves are made based on management s estimate of future funding requirements of each board or committee of 96

88 Capital Reserves and Reserve Funds Capital Reserves and Reserve Funds are used to fund specific replacement or renewal of capital assets. As the assets in the Town increase so should the contribution from the operating budget to capital reserves for replacement and refurbishment needs of the underlying capital assets, based on lifecycle costing. Capital Reserves and Reserve Funds Dec 31, 2015 Dec 31, 2016 Balance Estimated Affordable Housing 47, , Building Capital 40, , Capital Contingency 2,308, ,358, Town Hall Computer 155, , Fire Equipment 417, Fleet 29, , Harbourlands 6, , Lighthouse Restoration LED Light Conversion 1,671, , Parking 675, , PRC Parks 15, , Public Works 1,099, , Sewage Lagoon 315, , WPCP 15,387, ,345, Sewer Service Charge 341, , Water 5,293, ,850, Transit 126, , Highway 26 Sewer Line 100, , Land Acquisition (Discretionary Fund) 1,200, ,182, Non DC Growth (Discretionary Fund) 479, , Lifecycle Replacement (Discretionary Fund) 563, , Hume Street Reconstruction (Discretionary Fund) Tax Rate Stabilization (Discretionary Fund) 2,682, ,773, Parkland Levy (Obligatory Fund) 31, , Land (Obligatory Fund) 60, , Building Code (Obligatory Fund) 225, , TOTAL 33,275, ,172, TOTAL LESS WATER/ WASTEWATER 12,594, ,976, Capital reserves are maintained to fund capital projects and provide funds for unforeseen capital expenditures or project overages. According to the Town s approved asset management plan model there are insufficient capital reserves to meet future capital requirements. As the AMP is further refined we will be able to determine a specific target balance for capital reserves. Regular review will be required to account for changes in capital and contingency requirements of 96

89 Indicator Analysis, Other Information & What s Next The analysis below will provide additional detail on BMA s reserve indicators and the projected indicators for Tax Discretionary Reserve Ratio As defined in the BMA report the tax discretionary reserve ratio is the total of tax discretionary reserves (Appendix A) as a percentage of tax related own source revenues 1. Currently the tax discretionary reserve ratio is estimated to be 38% at December 31, 2016, down from 46% in The decrease is a result of significant reserves being allocated to the capital fund for projects such as Hume Street. Although not finalized, the 2017 capital budget does not include any capital projects comparable in cost to 2015/2016 projects. As a result this indicator should improve in the coming years if reserve contribution levels are maintained. Water Reserves as a Percentage of Water Own Source Revenues The BMA report identifies that the Town s water reserves as a percentage of water own source revenues is above the average for peer municipalities. A water reserve was established after the water department was assumed by the Municipality. The current water reserve is projected to be $5.8M at the end of It is important the Town continue to accumulate reserves for water to fund larger future capital projects (i.e. water plant expansion). Wastewater Reserves as a Percentage of Wastewater Own Source Revenues The BMA report noted that wastewater reserves (Appendix B) are amongst the highest in the Town s peer group. These reserves as a percentage of own source revenues are estimated to decrease by 40% from While the Town has a large wastewater reserve relative to other municipalities it also has a considerable capital expenditure expected in The Water Pollution Control Plant expansion has a total projected cost of $79 million per the DC Study. Development charge reserves will cover approximately $44.2 million, or 55.9%, leaving $34.8 million to be funded through reserves. With a projected timing of 2026, the inflated project cost to be funded by reserves is $45.5 million. Assuming consistent annual contributions to the reserve and minimal withdrawals until 2026, there should be sufficient funds available to meet this capital requirement as well as other projected wastewater capital expenditures. 1 Tax related own source revenues are revenues a government raises by levying taxes, user fees or by generating business or other income. It does not include user fee revenues generated by water or wastewater of 96

90 What s Next Based on the analysis above the Town s stabilization reserves are at the lowest limit of the GFOA recommended range. Additional allocations need to be made to these reserves in order to provide a sufficient buffer against unforeseen expenditures. Program Specific Reserves, Corporate Use Reserves, and Board and Committee Reserves do not have target balances to use as a benchmark. The GFOA recommends a risk-based approach to analyzing and setting appropriate reserve levels. This recommended risk analysis will take place when departmental resources are available. Management feels Capital Reserves are insufficient, based on the AMP, to sustain future capital expenditures. A specific target for capital reserves will be determined through refinement of the AMP in the coming months. 5. EFFECT ON TOWN FINANCES Not applicable. 6. APPENDICES & OTHER RESOURCES Appendix A Appendix B Tax Discretionary Reserves Schedule Wastewater Reserves Schedule Resource 1 BMA Report, November 2016 Resource 3 Town of Collingwood Asset Management Plan, June 24, 2014 SIGNATURES Prepared by: Michael Switzer, CPA, CA Manager of Finance Town of Collingwood Department head: Marjory Leonard, MBA, CPA, CMA, CFP Treasurer Town of Collingwood of 96

91 Tax Discretionary Reserves and Reserve Funds Appendix A Tax Discretionary Reserves Dec 31, 2015 Balance Dec 31, 2016 Estimated Affordable Housing 47, , Accessibility Committee 30, , Airport Elvis 1, , Heritage Committee 9, , Library - Capital Library - General 22, , Library - Internet 20, , Disaster Relief 7, , Emergency Social Services 28, , Operating Contingency 400, , Winter Control 300, , WSIB 333, , BCRY Railway Balsam Debenture 206, , Mayor s Golf 32, , Physician Attraction Public Art 32, , Employee Future Benefits 1,078, ,268, General 617, , LED Light Conversion 1,671, , Legal 150, , Municipal Election 23, , Planning 8, , Sustainability 39, , Collus Note Reserve 1,710, ,710, Building Capital 40, , Capital Contingency 2,308, ,358, Town Hall Computer 155, , Fire Equipment 417, Fleet 29, , Harbourlands 6, , Lighthouse Restoration Parking 675, , PRC Parks 15, , Public Works 1,099, , Transit 126, , Land Acquisition (Discretionary Fund) 1,200, ,182, Tax Rate Stabilization (Discretionary Fund) 2,682, ,773, Non DC Growth (Discretionary Fund) 479, , Lifecycle Replacement (Discretionary Fund) 563, , Hume Street Reconstruction (Discretionary Fund) TOTAL 16,574, ,954, of 96

92 Appendix B Environmental Reserves Environmental Reserves Dec 31, 2015 Dec 31, 2016 Balance Estimated Highway 26 Sewer Line 100, , Sewage Lagoon 315, , WPCP 15,837, ,345, Sewer Service Charge 341, , Water 5,293, ,850, TOTAL 21,887, ,953, of 96

93 Submitted to: Submitted by: Subject: Strategic Initiatives Standing Committee Council Rose Hewitson CSCMP, CPPB, CPPO, Purchasing Officer Procurement By-law STAFF REPORT #T Standing Committee 12/7/2016 Council 12/12/2016 Amendments: [no] PURPOSE The purpose of this report is to adopt the Procurement By-law. RECOMMENDATION THAT Council approve the Procurement By-law as attached in Appendix A AMENDMENTS None 1. BACKGROUND The last review and update of the Purchasing By-law was over 10 years ago and since then public procurement has become unnecessarily complicated and high risk. Good news is that the complication can be unraveled and the high risk can be reduced. Once we have a sense of how our organization measures up to the due diligence standards we can effectively focus our attention to implementing a strategy that includes a properly tailored good governance framework and an effective training program based upon a process roadmap and deployment strategy that: Aligns budget approval process with the procurement cycle to create an effective early warning system for proper procurement planning; Establish clear and accessible procurement policies that address ethical consideration while identifying roles, responsibilities and accountabilities within the Town s project planning, document drafting, bid document posting, bid receipt, bid evaluation, contract award and contract management phases of the procurement process; Develop a broad range of procurement templates and related procurement protocols to help establish consistent standards within the procurement cycle; and Implement a practical training program that increases institutional awareness of proper procurement procedures across the entire organization. Purchasing By-Law Page 1 of 3 93 of 96

94 During the first quarter of 2016 an assessment of current procurement conditions was completed through SWOT analysis (Strength, Weaknesses, Opportunities, Threats) encompassing department round table meetings, speaking with elected Council members and a vendor open dialogue meeting. The finding from the SWOT analysis were reviewed and measured against a procurement strategy plan. The procurement strategy plan encompasses the following 8 key areas and 24 sub-categories: 1. Institutional Governance o Accountability Controls o Integrity Indicators o Open Competition Requirements 2. Project Governance o Approval & review process flow o Proper roles & responsibilities o Clear requirements & formats 3. Forms &Formats o Range of formats o Template content o Awareness of format use 4. Document Drafting o Drafting process flows o Drafting roles and responsibilities o Document readability 5. Bidding Risks o Contract scoping o Material disclosure o Evaluation defensibility 6. Contract Management o Contract administration accountability o Scope management o Performance tracking 7. Training o Hiring standards o Procurement and legal o Broader organization awareness 8. Innovation o Organization traction o Market place traction o Effective use of technology The Procurement By-law is the first step in our implementation addressing the key area of Institutional Governance. 2. INPUT FROM OTHER SOURCES Department Heads have reviewed the Procurement By-law and recommend to proceed to Strategic Initiatives Committee. 3. APPLICABLE POLICY OR LEGISLATION Municipal Act, S.O., 2001 Municipal Conflict of Interest Act, R.S.O. 1990, c.m.50, as applicable Purchasing By-Law Page 2 of 3 94 of 96

95 Competition Act R.S.C., 1985, c. C-34 Agreement on Internal Trade (1995) and all Protocols of Amendment North American Free Trade Agreement (1994) Community Based Strategic Plan Accountable Local Government transparent in its decision-making and that demonstrates fiscal responsibility in all of its activities. 4. ANALYSIS None 5. EFFECT ON TOWN FINANCES None 6. APPENDICES & OTHER RESOURCES Appendix A Procurement By-law SIGNATURES Prepared by: Department Head: Rose Hewitson, Purchasing Officer Town of Collingwood Marjory Leonard, Treasurer Town of Collingwood Purchasing By-Law Page 3 of 3 95 of 96

96 Collus PowerStream Corp. 43 Stewart Road Collingwood ON L9Y 4M7 Phone: Administration Fax: Operations Fax: Finance Fax: December 2, 2016 Delivered by Collingwood Public Utilities c/o Town of Collingwood 97 Hurontario Street Collingwood ON. L9Y3Z5 Attention: Marjory Leonard, Treasure Re: Computer Rental Agreement Please accept this letter as confirmation that Collus PowerStream will not be renewing its existing computer rental agreement with the Collingwood Public Utilities that expires December 31 st, With regard to the existing equipment, the Board of Directors at our November 25 th meeting authorized me to offer a one-time payment of $23, plus any applicable taxes for the attached listing of user workstation equipment and associated accessories (keyboards, mice, cables etc.) we are currently using and are interested in acquiring. We ask that you please confirm acceptance of this offer by end of day December 15 th, This will allow us sufficient time to make alternate arrangements prior to year-end for replacement hardware should the Town choose to not accept this offer. If there are any questions regarding this correspondence and notification, please feel free to contact me at your earliest convenience. Respectfully, Larry Irwin, VP Operations TOGETHER WE ARE BETTER 96 of 96