CORPORATION OF HAMILTON 2016 BUDGET FINAL

Transcription

1 CORPORATION OF HAMILTON 2016 BUDGET FINAL

2 TABLE OF CONTENTS Contents Vision and Mission 1 Budget Summary and Assumptions 2-3 Proposed Rate Changes 4-6 Employee numbers by Department Operating Budget Capital Budget 9 Vehicle Renewals New Capital Projects Capital Renewals Capital items removed from budget Cash Flows 14

3 CORPORATION OF HAMILTON BUDGET Vision We will be a vibrant, dependable and clean city where services are delivered innovatively and effectively. Mission Our mission is to provide effective operations of the city through collaboration of members, management and staff. Goals Hamilton known as a safe city Encourage and enhance city development for the next century Create a more Vibrant City Long Term Financial Stability Employer of Choice Building the Brand Establish a Quality Management system Page 1

4 CORPORATION OF HAMILTON BUDGET Budget Summary The 2016 budget has been prepared on the assumptions that there will be minimal growth in the Bermuda Economy again in Basic operational duties will remain the same as in prior years. The repayment of the $18 million to Mexican Infrastructure Finance (MIF) will be paid back from revenue received from enforcement revenue. ASSUMPTIONS Car Park Revenue - Revenue has been budgeted to be in line with the previous year plus an additional $1.3 million has been added for the expected increase in ticket revenue if properly enforced. We have recently learned that 85% of those currently ticketed do not pay so we require confirmation from the Bermuda Government of the ability to enforce this new revenue source. Assumes that parking ticket revenue will be passed on to the Corporation of Hamilton ( the Corporation ) and that we will be able to enforce parking both on the streets and in the car parks through clamping. Rents No increase in rents. Sewage Small increase in sewage rates of 2% based on an increased tax rate. Assumes that tax rating ordinance will be published by the Bermuda Government. Taxes Small increase of 2% in rates. Assumes that Tax rating ordinance will be published by the Bermuda Government. Staff Costs Expect costs to be fairly consistent with prior year No accrual made for pay increase No significant changes in staff levels. Interest The Corporation has obtained a term sheet from a local bank which would NOT require Bermuda Government to guarantee the full amount of the loan. Assumes 1 st quarter will be interest only. Request to the Minister for the waiving of FCPT will be approved by adding the Corporation to schedule 2 or accepting the Corporation is considered to be a part of Governments reporting entities. Due to the delay in receiving confirmation from the Bermuda Government of additional revenue sources, the Bermuda Government will be required to provide a guarantee for the period of time from the loaning of the money to the parking legislation becoming effective. Page 2

5 CORPORATION OF HAMILTON BUDGET BUDGET ASSUMPTIONS CONT D Capital Expenditures In order to balance this budget the Corporation has removed $2 million dollars from the current budget to be able to repay the loan (see page 13). We cannot continue to delay capital projects as our infrastructure will suffer. If forced to delay capital projects over the life of this loan we will have to look at other avenues to obtain funds such as reducing staff and service levels. In summation we require the following from the Bermuda Government in order for the Corporation of Hamilton to continue to operate. 1) Written confirmation from the Bermuda Government that the following legislation will be passed by March a. Enforcement of parking through clamping both on and off streets. (VERY IMPORTANT) b. Expansion of the Pay and Display parking area. c. The ability for Corporation of Hamilton staff to issue parking tickets. d. The ability to increase parking rates without an Ordinance. e. The ability to charge for bike parking (wording in legislation must be clear and unambiguous). f. The ability for the municipalities to use their own systems and devices for parking management. 2) Guarantee from the Bermuda Government for the period of time from the loaning of the money to the parking legislation becoming effective. 3) Tax rating ordinance sent to the Minister on December 2, 2015 will be published. Since its inception in 1923 the Corporation of Hamilton has been financially stable with no assistance from the Bermuda Government. During the recent recession the Corporation of Hamilton has been able to remain financially stable and has not had to lay off staff, reduce working hours or implement furlough days. If the Bermuda Government should fail to provide any of the items listed above the Corporation of Hamilton will not be able to enter into the loan agreement and will have to accept any court actions taken by MIF. Page 3

6 CORPORATION OF HAMILTON BUDGET PROPOSED RATE CHANGES The following rate changes are proposed in this budget: Item Proposed Rate 2016 Current Rate Residential Parking $25 per permit $0 We currently do not charge for residential parking. All taxes must be paid before an individual will receive a parking sticker. Taxes (increase by 2%) Residential See proposed tiered tax rates (Page 5) Commercial Owner 2.60% Occupier 2.60% Owner 0.40% Occupier 0.21% Owner 2.55% Occupier 2.55% Sewage (increase by 2%) Sewage is charged to all properties outside the city limits that are connected to our sewage system. They are charged at 55% of the tax rate. Any increase in taxes will also result in an increase in sewage rates. Handicap Parking Handicap permit holders currently are allowed to park for two hours but only pay for one hour. (Essentially they pay half the rate of regular parking). The reason was they require more time to get back to their car than the average user. COH would like to remove this and charge the full rate for handicap parking. They would still be allowed to stay for two hours on the street. Page 4

7 CORPORATION OF HAMILTON BUDGET PROPOSED RATE CHANGES CONT D The following rate changes are proposed in this budget: Item Proposed Rate 2016 Current Rate Doctors Parking $3,500 per year $3,000 per year There are currently 8 doctors who rent parking bays in the city. Concession Stands (5% increase) These are vendor who rent space in our parks for their small concession stands $ per quarter or $3,150 per year $750 per quarter or $3,000 per year Earl Cameron Theatre (5% increase) Half Day, charity rate The rate will be increased by 5% in each of the next three years. $1,050 $525 $1,000 $500 Streets and Park Rentals $210 per hour $200 per hour Charity Rate $105 per hour Banners (5% increase) various rates Page 5

8 CORPORATION OF HAMILTON BUDGET PROPOSED RESIDENTIAL TAX RATES Owner Occupier Total Current rate 0.40% 0.21% 0.61% Proposed New rate (Includes a 2% increase and a changed to a tiered rate) 2016 ARV Bands Owner Occupier Total rate Tier 1-25, % 0.21% 0.62% Tier 2 25,001 50, % 0.42% 1.24% Tier 3 50,001 75, % 0.84% 2.48% Tier 4 75, % 1.68% 4.96% Ordinance Change Currently demand notes are sent to both the owner and occupier. COH is proposing to change the ordinance so that demand notes will only be sent to the owner who will be responsible for paying the entire tax. The owner can charge the occupier up to the occupier percentage noted above. This change will apply to both commercial and residential properties. Page 6

9 CORPORATION OF HAMILTON BUDGET EMPLOYEE LISTING BY DEPARTMENT DEPARTMENT CHANGE Wharf 1 1 Sanitation (1) Engineering Parks City Hall 1 1 Engineering Management & Admin Total Engineering (1) Finance 9 9 CEO and Administration 3 3 Events 5 5 HR 2 2 Total Employees (1) Temporary Staff Events 2 summer students for 16 weeks HR 6 summer students for 6 weeks Page 7

10 CORPORATION OF HAMILTON Draft Budget For the Twelve Months Ending December 31, 2016 Statement of Current Fund Revenue and Expenditures Budget Budget Variance Forecast Actual Actual Revenues Banners $5,000 $5,004 ($4) $5,251 $9,700 $4,800 Car parks 5,059,000 3,903,160 1,155,840 3,612,582 4,265,540 4,213,247 Docks storage 100 (849) Donations received 20,000 Encroachments 30,300 30,350 (50) 30,300 30,350 30,350 Goods sold 2,000 2,000 9,736 1,915 4,882 Interest ,004 3,832 Licences and permits 255, ,000 9, , , ,246 City Maintenance - PTB Cleaning 49,440 49,440 49,440 49,440 55,167 Miscellaneous 25,000 25,000 86,495 12,588 94,385 Rents 931, ,726 16, , , ,448 Sewerage 2,241,629 2,294,666 (53,037) 2,258,157 2,298,518 2,065,184 Tax revenue 8,635,520 8,475, ,145 8,562,447 8,534,243 8,469,630 Wharfage - Government 5,854,000 5,738, ,912 5,878,078 4,453,373 Wharfage - Ships 349, , , , ,686 Government Grant 5,000,000 Total Revenue 23,437,555 21,828,409 1,609,146 22,071,682 21,090,794 21,189,171 Expenses Staff costs Gross wages & salaries 5,273,880 5,075, ,220 5,054,682 4,882,112 5,114,545 Overtime 682, ,000 4, , , ,199 Social security 180, ,408 (14,510) 182, , ,047 Health insurance 984, ,810 36, , , ,494 Life insurance 145, , , , ,552 Long term disability 97,474 99,611 (2,136) 88,933 86,216 86,781 Payroll tax 298, ,112 23, , , ,744 Pension 488, , , , , ,958 Staff costs and fees 26,800 26,800 7,672 62,563 43,298 Management and Admin salaries 2,583,629 2,701,329 (117,700) 2,622,404 2,586,268 2,444,261 Total Staff Cost 10,762,516 10,524, ,260 10,389,697 10,154,293 10,184,879 Administrative & operating Advertising 100,000 98,000 2,000 89, , ,426 Audit fees 105, ,000 99, ,150 79,401 Computer expenses - hardware 965 1,633 5,167 Computer expenses - software 120, ,260 (11,260) 164, ,944 91,726 Contracted Services 1,351,500 1,485,000 (133,500) 1,886,773 1,639,594 1,708,509 Debt collection costs 180, ,000 50,000 61, , ,931 Electricity 1,193,500 1,198,300 (4,800) 1,129,562 1,450,699 1,096,480 Fuel 120, ,000 (10,000) 102, , ,053 Gifts and donations 20,000 20,000 23,050 4,209 17,161 Government charges 600, ,000 (50,000) 590, , ,511 Insurance 430, ,000 (10,000) 405, , ,978 Legal fees 450, , , , , ,392 Maintenance agreements 196, ,600 (7,000) 187, , ,030 Materials and equipment/ tool purchase 1,729, , ,749 1,191,273 1,256,032 1,204,619 Miscellaneous 11,757 4,100 (240,492) Meetings - Hospitality Expenses 7,500 23,500 (16,000) 8,105 15,368 6,975 Members Expenses 30,000 45,000 (15,000) 21,440 23, ,132 Office supplies 114, ,000 (3,500) 79,565 90, ,033 Professional fees 5,000 5,000 12,229 33,047 44,488 Security 740, ,000 (125,000) 789, , ,414 Telephone and Internet 167, ,200 (8,008) 160, , ,077 Temporary staff 35,000 60,000 (25,000) 20,045 7,834 12,627 Training 60,000 73,000 (13,000) 71,271 57,639 59,096 Travel 50,000 45,000 5,000 37, ,878 43,938 Uniforms and protective clothing 85,000 83,500 1,500 69,076 83,136 75,503 Water 75,000 80,000 (5,000) 99, , ,121 Fire service 690,405 Total Admin & Operating 7,965,241 7,375, ,181 7,853,625 9,191,358 8,820,700 Depreciation Depreciation 1,615,040 1,581,857 33,183 1,573,846 1,544,258 1,498,293 Finance Principal repayments 18,000,000 Interest 1,309, , , , , ,822 Interest on Guarantee (MIF) 752,548 Bank service charges 197, ,040 90,000 95, , ,432 Total Finance Charges 1,506, , ,032 1,257,338 18,637, ,254 Total Expenses 21,849,050 19,996,395 1,852,655 21,074,506 39,527,871 21,183,126 Surplus/(Deficit) 1,588,505 1,832,014 (243,510) 997,176 (18,437,077) 6,045 Page 8

11 CORPORATION OF HAMILTON 2016 Budget Capital Expenditures Budget Budget Variance Capital Expenditures Vehicles Renewals 150, ,000 New Capital Projects 565, ,000 (285,000) Capital Renewals 1,164,500 2,990,000 (1,825,500) Total Capital Expenditures 1,879,500 3,840,000 (1,960,500) See page 13 for a list of Capital Items that have been removed from this budget. Page 9

12 2016 Budget Vehicle Renewals Revised Budget Cab/Chassis Description Licence # Make Manufacture Date Van L 1892 Daihatsu 30,000 Water truck HC 545 Isuzu ,000 $ 150,000 Page 10

13 2016 Budget New Capital Projects Project Total Cost Budget 1 Car Park control equipment $500k per car park 350,000 3 Tree grates $ - 20,000 5 City Hall Theatre Stage access ladder $ 15,000 15,000 6 Works Depot Fire Access on Elliott Street $ 10,000 10,000 8 City Hall Lights 40,000 40,000 9 Bulls Head Lighting 100, , Works Depot roof repair 30,000 Total $ 565,000 Page 11

14 2016 Budget Capital Renewals Quantity Measure Year built Condition Likelihood Consequence Risk due to failure Life Budget Streets Parks Fencing Fort Hamilton $ 120,000 Property All Residential and Commercial Properties Doors 1 to $ 50,000 Windows 1 to $ 50,000 Corporation Offices Works Depot HVAC $ 20,000 Infrastructure Par-la-Ville Car Park Stone Wall stabilization 20 LF Unknown $ 60,000 Caulking top deck - Bulls Head $ 100,000 Wharf CCTV replacements 12 unit $ 25,000 Bollard replacement 50 unit Various $ 15,000 Asphalt surfacing m $ 70,000 Equipment Computers 28 unit various 1 to $ 20,000 Software $ 84,500 Wireless network $ 60,000 Wastewater Front Street Pump Station Electrical $ 275,000 Pumps $ 15,000 Odour unit $ 80,000 Sewer Reticulation System Manholes various $ 10,000 Rising Mains - Pipe various $ 10,000 Outfalls various $ 100,000 $ 1,164,500 Page 12

15 Items removed from Capital Projects Vehicles Vacuum Truck HC 623 Isuzu 120,000 New Capital Projects 2 Flow Monitoring Program $ 1,500, ,000 4 North Street Odour Control Unit $ 65, ,000 7 Street lighting poles and lanterns $ 100,000 50,000 Capital Renewals Streets Roads $ 400,000 Wharf Seawall $ 950,000 Equipment Wireless network $ 40,000 Corporation Offices Fixtures and fittings $ 100,000 City Hall - Front Desk Security $ 120,000 $ 2,000,000 Page 13

16 CORPORATION OF HAMILTON Budget For the Twelve Months Ending December 31, 2016 Cash Flows Budget Budget Variance Operating Budget Budgeted Surplus/(Deficit) 1,588,505 1,832,014 (243,509) Add Back Non-Cash Items 1,615,040 1,581,857 33,183 Financing Reverse budgeted Interest 1,309, , ,032 BNTB - Principal & Interest Payments ($5,243 per mo) (62,916) (62,916) - CAPITAL G - Principal & Interest Payments (1,068,075) 1,068,075 Loan - $18 Million (2,430,000) (2,430,000) Sewage Sewage Loan - Principal & Interest ($29,702 per month) - (356,422) 356,422 Sewage Loan (Assumes 5 year 7% Interest) - 1,500,000 (1,500,000) Sewage Tax % of ARV - 197,218 (197,218) - Net Cash movement - Operating Budget 2,019,842 4,031,857 (2,012,015) Capital Budget Capital Expenditures (1,879,500) (3,840,000) 1,960,500 Net Cash movement - Capital Budget (1,879,500) (3,840,000) 1,960,500 Net Cash Movement - Operating and Capital Budget 140, ,857 (51,515) - Projected Opening Cash 1,500,000 1,036, ,513 - Projected Closing Cash 1,640,342 1,228, ,998 Note: The Operating and Capital Budgets are financed through cash. In order to determine the amount of cash on hand the operating budget is adjusted to a cash basis. Page 14