Municipal Budgeting, Long-term Planning and Community Engagement

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1 Municipal Budgeting, Long-term Planning and Community Engagement AMCTO Presentation November 16 th, 2018 International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 1

Industry Hot Topics International ), a Swiss entity. All rights reserved.

International ), a Swiss entity. All rights reserved.

Introduction KPMG has been requested by the Orillia Soldiers Memorial Hospital ( OSMH ) to undertake a review of OSMH s payroll processes Intention of the review was to identify potential

5 Introduction KPMG has been requested by the Orillia Soldiers Memorial Hospital ( OSMH ) to undertake a review of OSMH s payroll processes Intention of the review was to identify potential opportunities for enhancements from an efficiency, internal control and risk management perspectives KPMG s review benefited from the participation and contributions of OSMH staff International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 5

What the GFOA Says A Good Budget Does Incorporates a long-term perspective Establishes linkages to broad organizational goals Focuses decisions on results and outcomes Involves and promotes effective

6 What the GFOA Says A Good Budget Does Incorporates a long-term perspective Establishes linkages to broad organizational goals Focuses decisions on results and outcomes Involves and promotes effective communication with stakeholders Provides incentives to government management and employees International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 6

What the GFOA Says A Good Budget Does Principles A government should have broad goals that provide overall direction and serve as a basis for decision making A government should have specific

7 What the GFOA Says A Good Budget Does Principles A government should have broad goals that provide overall direction and serve as a basis for decision making A government should have specific policies, plans, programs and strategies to define how to approach its goals A financial plan and budget that moves forward towards the achievement of goals should be adopted Program and financial performance should be continually evaluated Elements Assess community needs, priorities, challenges and opportunities Identify opportunities and challenges for government services Develop and disseminate goals Adopt financial policies Develop operating and capital policies and plans Develop programs and services that are consistent with these plans Develop management strategies Develop a formal budget process Develop and evaluate financial options Make choices necessary to adopt a budget Monitor, measure, and evaluate performance Make adjustments as needed International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 7

8 Planning, Budgeting and Evaluation Cycle Strategic Plan Establishes services, service levels and priorities for shorter term annual budgeting Provides financial perspective by identifying resource limitations and future financial state Informs financial plan of strategic intent, including priorities, services and service levels Budgets (Operating and Capital) Results Evaluation Evaluates and reports on actual performance against intended direction, allowing for adjustments to strategic and longterm financial plan Long-Term Financial Plan Establishes policy environment and guidelines for annual budget process Strategic Plan Long-Term Financial Plan Budgets (Operating and Capital) Organizational vision Long-term forecasting (revenue, expenditures, capital, debt, reserves) General environmental scan Fiscal environment analysis Service demand planning Service prioritization Resource allocation Management planning Does not address Partially addresses Fully addresses International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 8

Long-Term Financial Planning Ten year planning horizon Operating and capital Design to run scenarios Demonstrate financial indicators Include comparative

9 Long-Term Financial Planning Ten year planning horizon Operating and capital Design to run scenarios Demonstrate financial indicators Include comparative analysis Scale appropriately International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 9

Financial Indicators Sustainability Financial assets to financial liabilities Reserves per household Operating expenses as a percentage of assessment Capital additions as a

10 Financial Indicators Sustainability Financial assets to financial liabilities Reserves per household Operating expenses as a percentage of assessment Capital additions as a percentage of amortization expense International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 10

Financial Indicators Flexibility Total debt per household Residential taxation as a percentage of household income Total taxation as a percentage of total assessment Debt servicing costs as a

11 Financial Indicators Flexibility Total debt per household Residential taxation as a percentage of household income Total taxation as a percentage of total assessment Debt servicing costs as a percentage of total revenues Net book value of TCA as a percentage of historical cost International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 11

12 Financial Indicators Vulnerability Operating grants as a percentage of total revenues Capital grants as a percentage of total capital expenditures International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 12

Community Engagement State of the Town(ship) presentations Community information sessions Social media and hardcopy outreach Web-based tools

13 Community Engagement State of the Town(ship) presentations Community information sessions Social media and hardcopy outreach Web-based tools Dry-runs International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 13

14 If I Were You Multi-year budgeting Multi-year user fee bylaws Start early Get Council to commit Get your policies in place Don t budget for amortization International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 14

15 Sustainability Indicators FINANCIAL ASSETS TO FINANCIAL LIABILITIES This financial indicator provides an assessment of the Township s solvency by comparing financial assets (including cash, investments and accounts receivable) to financial liabilities (accounts payable, deferred revenue and long-term debt). Low levels of financial assets to financial liabilities are indicative of limited financial resources available to meet cost increases or revenue losses. TYPE OF INDICATOR Sustainability Flexibility Vulnerability FORMULA FIR Schedule 70, Line 9930, Column 1 divided by FIR Schedule 70, Line 9940, Column 1 POTENTIAL LIMITATIONS Financial assets may include investments in government business enterprises, which may not necessarily be converted to cash or yield cash dividends Financial liabilities may include liabilities for employee future benefits and future landfill closure and post-closure costs, which may (i) not be realized for a number of years; and/or (ii) may not be realized at once but rather over a number of years Financial Assets to Financial Liabilities Financial Assets to Financial Liabilities Minden Hills Algonquin Highlands Dysart et al Highlands East Trent Lakes International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 15

16 Residential Taxes (Lower Tier) 57% of residents will pay less than $1,000 in Less than $500 $500 to $750 $750 to $1,000 $1,000 to $1,250 $1,250 to $1,500 $1,500 to $1,750 $1,750 to $2,000 More than $2,000 International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 16

17 Residential Taxes By Property Type Education Upper tier Lower tier $2,822 $711 $2,609 $658 $1,439 $770 $712 $363 $392 $684 $1,079 $272 $294 $513 $1,341 $1,239 Year-round residence (not on water) Seasonal residence (not on water) Year-round residence (on water) Seasonal residence (on water) International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 17

18 Income and Municipal Burden (2009 = 100) % +6.1% % % +3.2% +3.0% +3.7% +4.2% International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 18

23 Detail Heading Detail Heading Detail Heading Detail Heading kpmg.ca 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

City of Greater Sudbury. Municipal Asset Management Plan

City of Greater Sudbury. Municipal Asset Management Plan City of Greater Sudbury Municipal Asset Management Plan Presentation to City Council December 13 th, 2016 Why Asset Management Planning Matters Both the Federal and Provincial governments have established