COUNCIL CHAMBERS, CITY HALL SARNIA, ONTARIO

Size: px

Start display at page:

Download "COUNCIL CHAMBERS, CITY HALL SARNIA, ONTARIO"

Simon Paul
5 years ago
Views:

1 SARNIA CITY COUNCIL April 12, :30 p.m. COUNCIL CHAMBERS, CITY HALL SARNIA, ONTARIO Page SPECIAL MEETING AGENDA SPECIAL MEETING BMA Municipal Study 2009 Presentation by Jim Bruzzese Page 1 of 28

2 Page 2 of 28

3 Municipal Study 2009 City of Presentation Provide an update to Council on the 2009 Municipal Study 81 municipalities in the study Presentation focuses on 14 municipalities (similar size and/or geographic location) Municipal Profile Municipal Financial Indicators Revenue & Expenditure Analysis & MPMP User Fee & Revenue Information Comparison of Relative Taxes Comparison of Water/Sewer Costs Taxes as a % of Income Page 3 of 28 1

Population Statistics 2006-2008 8% 7% 6% 5% 4.7% 5.8% 4% 3% 3.

4 Population Statistics % 7% 6% 5% 4.7% 5.8% 4% 3% 3.4% 2% 1% 0% Growth below group and survey average Page 4 of 28 2

5 Ontario Population Projections % 8% 7% 6% 5% % 3% 2% 1% 0% GTA Central East Southwest Northeast Southwest Municipalities % 6% 5.8% 5% 4.6% 4% 3.4% 3% 2% 1% 0% Kingsville Haldimand Norfolk Amherstburg Leamington Tillsonburg Stratford Middlesex Centre Central Elgin St. Thomas Wellesley North Dumfries Wilmot Woolwich Kitchener Source: Stats. Canada Page 5 of 28 3

6 Unweighted Assessment per Capita $120,000 $100,000 $100,998 $80,000 $71,848 $60,000 $40,000 $20,000 $0 Provides an indication of the richness of the assessment base challenge in raising taxes Lowest quartile of total survey Unweighted Assessment Growth Municipality % Change CVA % Change CVA % Change CVA % 0.7% -6.1% 1.3% 0.7% 0.5% 0.6% 0.8% 4.8% 1.4% 2.0% 5.1% 0.6% 0.5% 5.4% 2.0% 2.0% 7.0% 1.9% 2.6% 7.2% 2.4% 2.1% 7.3% 1.4% 1.3% 7.4% 1.7% 1.4% 7.5% 0.0% 0.8% 7.8% 3.0% 3.0% 8.0% 2.1% 3.6% 8.6% While the assessment growth was below the survey average from in, it exceeded the survey average from This reflects growth and changes in assessed values as 2009 was a reassessment year 1.5% 1.7% 5.4% 2.3% 2.1% 7.3% 0.7% 1.3% 7.4% Page 6 of 28 4

7 Assessment Composition Residential Multi- Residential Commercial Industrial % 5.1% 12.7% 4.1% % 5.0% 12.8% 4.2% % 5.0% 12.6% 4.2% % 4.9% 12.9% 4.1% % 4.1% 12.6% 3.8% 2009 Total 79.6% 2.6% 10.7% 2.8% Difference to Survey -2.1% 1.5% 1.9% 1.0% Good mix of Residential/Non-Residential 2008 Building Construction Value Per Capita $3,500 $3,000 $2,500 $ 2,040 $2,000 $1,500 $1,283 $1,000 $500 $0 Building construction value per capita provides an indication of the relative activity in each municipality. has a good mix of development (residential/non-residential). In 2008, 44% was Residential versus 56% Non-Residential Page 7 of 28 5

8 Building Permit Activity (in millions) $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Building Permit Construction Value Building Permits Fee Comparison $2,500 Residential Building Permit Fee 1,800 sq.ft $2,000 $1,500 $1,000 $500 $0 Lowest in the entire survey of 80+ Ontario municipalities Page 8 of 28 6

9 2009 Development Charges - Residential $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Below average development charges Page 9 of 28 7

10 Net Municipal Levy per Capita $1,600 $1,400 $1,200 $1,167 $1,173 $1,224 $1,000 $800 $600 $400 $200 $0 is between the survey and the group average Net Municipal Levy per $100,000 CVA $2,500 $2,000 $1,500 $1,262 $1,577 $1,632 $1,000 $500 $0 is above the survey and the group average due to low assessment base Page 10 of 28 8

Assessment and Affordability Illustration Municipality 2009 Levy per Capita Levy per $100,000 of Weighted Assessment 2009 Unweighted Assessment per Capita 2009 Residential Tax Rate 2009 Average

11 Assessment and Affordability Illustration Municipality 2009 Levy per Capita Levy per $100,000 of Weighted Assessment 2009 Unweighted Assessment per Capita 2009 Residential Tax Rate 2009 Average household Income 2009 Property Taxes as a % of Household Income Oakville $ 1,382 $ 773 $ 162, % $ 147, % $ 1,173 $ 1,397 $ 71, % $ 79, % Service Cost Comparisons Roads/Winter Service Survey Average Group Average Roadways per Capita $ 68 $ Roadways Operating Costs Per Lane Km (MPMP) $ 1,321 $ 2,285 $ 3,115 Winter Control per Capita $ 27 $ 42 $ 38 Winter Control Operating Costs Per Lane Km (MPMP) $ 1,505 $ 2,508 $ 2,706 has a lower cost of service for roads and winter maintenance Page 11 of 28 9

Service Survey Average Group Average Waste Collection Net Expenditures per Capita $ 11 $ 15 $ 22 Waste Collection Costs per Tonne (MPMP)

12 Service Cost Parks/Recreation Survey Average Group Average Service Parks, Recreation Programming and Facilities Operating Costs Per Person (MPMP) $ 90 $ 128 $ 126 has a lower cost of service for parks, recreation and facilities Service Cost Comparisons Waste/Recycling Service Survey Average Group Average Waste Collection Net Expenditures per Capita $ 11 $ 15 $ 22 Waste Collection Costs per Tonne (MPMP) $ 37 $ 87 $ 86 Recycling Costs per Tonne (MPMP) $ 89 $ 121 $ 121 has a lower cost of service for waste collection and recycling Page 12 of 28 10

Service Cost Comparison - Transit Service Survey Average Group Average Transit Net Expenditures per Capita $ 52 $ 56 $ 72 Transit Cost per Regular Service Trip (MPMP) $ 4.56 $ 6.30 $ 4.

Fire Fire Above average fire costs 2008 MPMP Fire Operating Costs per 2008 Net Expenditure s per Capita $ 168 $ 131 $ 167 $ 139 $ 165 $ 139 Barrie $ 150 $ 141 $ 160 $ 141 Ajax $ 139 $ 142 $ 127 $ 143

13 Service Cost Comparison - Transit Service Survey Average Group Average Transit Net Expenditures per Capita $ 52 $ 56 $ 72 Transit Cost per Regular Service Trip (MPMP) $ 4.56 $ 6.30 $ 4.03 has a lower cost of service for transit on a per capita basis than the total survey average and group average Cost per trip is also lower than the total survey average Service Cost Comparison - Fire Fire Above average fire costs 2008 MPMP Fire Operating Costs per 2008 Net Expenditure s per Capita $ 168 $ 131 $ 167 $ 139 $ 165 $ 139 Barrie $ 150 $ 141 $ 160 $ 141 Ajax $ 139 $ 142 $ 127 $ 143 $ 109 $ 144 $ 270 $ 146 $ 199 $ 148 $ 184 $ 150 $ 200 $ 167 $ 220 $ 169 $ 215 $ 214 $ 177 $ 151 Group Median $ 168 $ 144 $ 277 $ 203 Influenced by a number of factors: staffing model: full-time firefighters or composite geography: topography, urban/rural mix, road congestion, fire station locations and travel distances nature and extent of fire risks: the type of building construction or occupancy (apartment dwellings vs. single family homes vs. institutions such as hospitals) Page 13 of 28 11

Reserves/Reserve Policies Reserves are a critical component of a municipality s long-term financing plan Reserves: Provide stability of tax and utility rates in the face of variable and

14 Reserves/Reserve Policies Reserves are a critical component of a municipality s long-term financing plan Reserves: Provide stability of tax and utility rates in the face of variable and uncontrollable factors (consumption, interest rates, unemployment rates, changes in subsidies) Provide financing for one-time or short term requirements without permanently impacting the tax and utility rates Make provisions for replacements/acquisitions of assets/infrastructure that are currently being consumed Avoid spikes in funding requirements Provide a source of internal financing Ensure adequate cash flows Reserves as a % of Total Expenditures 70% 60% 50% 48.1% 40% 32.5% 30% 20% 13.9% 10% 0% Amongst the lowest in the survey Page 14 of 28 12

15 Reserves as a % of Expenditures 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% Water Reserves as a % of Water Expend. 120% 100% 80% 60% 40% 20% 27.6% 29.4% 60.4% 0% -20% Page 15 of 28 13

16 Water Reserves as a % of Water Expend. 37.0% 32.0% 27.0% 22.0% 17.0% 12.0% WW Reserves as a % of WW Expend. 140% 120% 100% 80% 60% 40% 39.8% 45.7% 20% 0.0% 0% Page 16 of 28 14

17 Debt Charges as a % of Total Expenditures 10.0% 10% 9% 8% 7% 6% 5% 4.2% 4.2% 4% 3% 2% 1% 0% Debt Charges as % of Total Expenditures 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% Trending downward Page 17 of 28 15

18 Total Debt Burden $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ Trending downward Water Debt Charges as a % of Water Expend. 35% 30% 25% 21.0% 20% 15% 10% 5% 6.7% 7.9% 0% Page 18 of 28 16

19 WW Debt Charges as a % of WW Total Expend. 25% 20% 17.0% 15% 10% 5.7% 9.5% 5% 0% Debt Charges as a % of Exp. Excluding W/S 7% 6.8% 6% 5% 4% 3% 3.5% 3.9% 2% 0% 1% Page 19 of 28 17

20 Outstanding Debt to Reserve Ratio Recommended to have a ratio 1: For every dollar of reserves, has $4.30 of debt 0.0 Debt to Reserve Ratio - Trend Trending upward Page 20 of 28 18

21 Taxes Receivable as a % Taxes Levied 12% 10% 8% 6% 4% 2% 5.5% 5.7% 6.7% 0% Receivables as a % of taxes levied is below the survey average Page 21 of 28 19

Property Types Detached Bungalow Senior Executive Walk-up Apartment High-rise Apartment Neighbourhood Shopping Office Building Hotel Motel Vacant Land Industrial Large Industrial Standard Industrial

22 Property Types Detached Bungalow Senior Executive Walk-up Apartment High-rise Apartment Neighbourhood Shopping Office Building Hotel Motel Vacant Land Industrial Large Industrial Standard Industrial Comparable properties are used across the 81 municipalities Multiple properties are included in each municipality Focus should be on the trends rather than the absolutes Residential Detached Bungalow $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 s tax burden of $2,713 is below the survey average of $2,880 and group average of $2,985 $0 Page 22 of 28 20

23 Senior Executive Home $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 s tax burden of $4,713 is below the survey average of $5,343 $1,000 $0 Residential - Summary In relation to the other 81 municipalities in the survey and the group average reflected in this presentation, s relative tax position for Residential classes are: Total Survey low-mid Group Survey low-mid Page 23 of 28 21

24 Multi-Res and Commercial - Summary In relation to the other municipalities in the survey, s relative tax position: Total Survey Group Survey Multi-Residential Mid-High Mid-High Neighbourhood Shopping Mid Low-mid Office Buildings Low Low Higher tax ratio for multi-residential properties in, established by the County Optional class for shopping with a higher tax ratio in Industrial - Summary In relation to the other 81 municipalities in the survey, s relative tax position for industrial classes are: Total Survey Vacant Industrial Land Low Low Large Industrial Mid Low Standard Industrial Mid Low Page 24 of 28 22

Water/Sewer Cost Summary is close to or below the survey average for all categories Residential Commercial Industrial Industrial Industrial Industrial Volume 300 m3 10,000 m3 30,000 m3 100,000 m3

25 Water/Sewer Cost Summary is close to or below the survey average for all categories Residential Commercial Industrial Industrial Industrial Industrial Volume 300 m3 10,000 m3 30,000 m3 100,000 m3 500,000 m3 1,000,000 m3 Meter Size 5/8" 2" 3" 4" 6" 6" $ 711 $ 18,339 $ 52,831 $ 169,173 $ 828,001 $ 1,643,291 $ 700 $ 18,598 $ 54,745 $ 176,558 $ 874,665 $ 1,724,486 % difference 2% -1% -3% -4% -5% -5% Page 25 of 28 23

26 Average Household Income Levels (Gross) $120,000 $100,000 $79,700 $80,000 $60,000 $40,000 $20,000 $0 Source: FP Canadian Demographics (2009) Page 26 of 28 24

27 Property Taxes + W/S as a % of Income Municipality 2009 Property Taxes as a % of Income 2009 Property Taxes + Water and Sewer as a % of Income 3.9% 4.5% 4.2% 4.7% 4.1% 4.9% 4.1% 4.9% 4.3% 5.0% 4.3% 5.2% 4.4% 5.4% 4.7% 5.5% 4.5% 5.5% 4.6% 5.8% 4.5% 5.9% 5.2% 5.9% 4.9% 6.0% Lower than average burden in the City of for property taxes and water and sewer services as a percentage of household income Provides an indication of affordability 4.4% 5.3% 4.1% 5.0% 3.6% 4.5% Summary Good balance of Residential/Non. Res. Assessment Assessment base grew at a faster pace than comparable municipalities from but the total assessment base continues to be lower than average on a per capita basis Building construction is trending upward good mix of Res/Non-Res. Relatively low reserves and high debt but debt is being reduced over time Strategic long range policies in place for reserves and debt Low DC fees and building permit fees Average or lower than average Water/Sewer rates Net municipal levy per capita is lower than the average of comparable municipalities Cost of most municipal services is below the survey average Relative property tax burden across all classes of properties is in the low to mid range, except Multi-Residential which is mid-high due to higher than average tax ratio which is set by the County Total municipal burden as a percentage of income in is below the survey average Page 27 of 28 25

28 BMA Management Consulting Inc. Page 28 of 28 26

Municipal Study City of Greater Sudbury Comparison to Northern Municipalities

Municipal Study City of Greater Sudbury Comparison to Northern Municipalities Municipal Study 2013 City of Greater Sudbury Comparison to Northern Municipalities Presentation Provide an update on the 2013 Municipal Study 98 municipalities in the study Presentation focuses on Northern