2011 Draft Rate Supported Operating & Capital Budgets

Transcription

1 2011 Draft Rate Supported Operating & Capital Budgets Joint meeting of the Engineering & Public Works Committee (PW ) and Corporate & Emergency Service Committee (CES ) February 2, 2011

2 The 2011 Draft Rate Supported Operating & Capital Budgets were not prepared in a PSAB Compliant Format The following budgets have been prepared on a semi accrual basis consistent with previous years presentations.

3 PSAB revenues recognized when earned expenses charged when goods & services are utilized or consumed tangible capital assets are recorded d as capital assets of the municipality & charged as an expense over the expected useful life of the asset gain/loss on disposal of capital assets introduction of accumulated surplus Draft Budget Format revenues recognized when earned expenses charged when goods & services are utilized or consumed capital acquisitions & funding create expenditures & revenues in the current year & are shown separately from the current operations in a capital fund schedule addition to or deduction from reserves & reserve funds creates a revenue or expense in the operating or capital fund(s) & in the schedule of reserves & reserve funds 3

4 Perceived Benefits with PSAB Reporting Better idea of total net worth of a municipality - all assets accounted for, not just financial assets Clearer picture of how a municipality has used its financial resources Cost of acquiring capital assets directly tied to operations via amortization expense Encourage thinking of capital acquisitions as long-term investments t with a finite it life 4

5 Perceived Shortcomings of PSAB The financial statements do not consider: - future commitments (including cash requirements) - service requirements (current & future) - infrastructure age, obsolescence or condition - Performance 5

6 2011 Draft Water Operating Budget 2011 Budget As Presented PSAB Adjustments Add Non- Tangible Less Capital Reserve Projects Transfers 2011 PSAB Budget Less Principal Add Payments Amortization Operating Costs Personnel 1,832,000 1,832,000 Employee Related Expenses 64,645 64,645 Materials & Supplies 1,564,120 1,564,120 Purchased Services 732, ,015 Major Contracts 57,070 57,070 Transfer To Others - - Minor Capital 62,510 (62,510) - Fleet 218, ,910 Non-Tangible Capital Asset Projects 700, ,000 Interdepartmental Charges 961, ,140 Total Operating Costs 5,492, , ,129,900 Revenues Application Fees/Permits (20,000) (20,000) User Fees (7,708,043) (7,708,043) Local Improvement Charges (113,703) (113,703) Supplementary Taxes - - Sources of Financing - Capital - - Urban Service Area Levy (3,270,400) (3,270,400) Total Revenues (11,112,146) (11,112,146) Finance Charges / Reserves Debt Pi Principali 1,819, (1,819,823) 823) - Principal Internal - - Interest 1,454,913 (36,742) 1,418,171 Interest Internal - - Amortization 5,003,000 5,003,000 Investment/Borrowing 30,000 30,000 Tax Write-offs 9,000 9,000 A/R Write-offs 6,000 6,000 Transfers to Reserve Funds 2,300,000 (2,300,000) - Total Finance Charges / Reserves 5,619,736 (1,856,565) - (2,300,000) 5,003,000 6,466,171 (Surplus) Deficit - (1,856,565) 637,490 (2,300,000) 5,003,000 1,483,925 6

7 2011 Draft Wastewater Operating Budget 2011 Budget As Presented PSAB Adjustments 2011 PSAB Budget Add Non- Less Principal Tangible Capital Less Reserve Add Payments Projects Transfers Amortization Operating Costs Personnel 1,641,600 1,641,600 Employee Related Expenses 43,415 43,415 Materials & Supplies 2,097,700 2,097,700 Purchased Services 677, ,020 Major Contracts 502, ,810 Minor Capital - - Fleet 249, ,540 Non-Tangible Capital Asset Projects 845, ,000 Interdepartmental Charges 1,016,790 1,016,790 Total Operating Costs 6,228,875, - 845, ,073,875, Revenues Grants Federal & Provincial - - Application Fees/Permits (20,000) (20,000) User Fees (6,147,875) (6,147,875) Local Improvement Charges (490,643) (490,643) Supplementary Taxes - - Sources of Financing - Capital - - Urban Service Area Levy (6,731,625) (6,731,625) Total Revenues (13,390,143) (13,390,143) Finance Charges/Reserves Debt Principal 2,699, (2,699,227) 227) - Principal Internal - - Interest 2,603,041 (24,930) 2,578,111 Interest Internal - - Amortization 5,298,000 5,298,000 Investment/Borrowing 50,000 50,000 Tax Write-offs 3, ,000 A/R Write-offs 6,000 6,000 Transfers to Reserve Funds 1,800,000 (1,800,000) - Total Finance Charges/Reserves 7,161,268 (2,724,157) - (1,800,000) 5,298,000 7,935,111 (Surplus) Deficit - (2,724,157) 845,000 (1,800,000) 5,298,000 1,618,843 7

8 2011 Draft Solid Waste Operating Budget 2011 Budget As Presented PSAB Adjustments 2011 PSAB Budget Add Non- Tangible Less Less Principal Capital Reserve Add Payments Projects Transfers Amortization Operating Costs Personnel 1,034,100 1,034,100 Employee Related Expenses 18,450 18,450 Materials & Supplies 154, ,735 Purchased Services 720, ,655 Major Contracts 8,064,020 8,064,020 Transfer To Others 1,347,400 1,347,400 Minor Capital 37,600 (37,600) - Fleet 706, ,340 Non-Tangible Capital Asset Projects 1,150, ,150, Interdepartmental Charges 692, ,080 Total Operating Costs 12,775,380-1,112, ,887,780 Revenues Grants Federal & Provincial (1,211,869) (1,211,869) User Fees (3,425,415) (3,425,415) Supplementary Taxes (100,000) 000) (100,000) 000) Special Area Service Levy (9,751,446) (9,751,446) Total Revenues (14,488,730) (14,488,730) Finance Charges/Reserves Debt Principal - Principal Internal 103,350 (103,350) - Interest - Interest Internal 65,000 (65,000) - Amortization 2,100,000 2,100,000 Bank Fees 5,000 5,000 Tax Write-offs 40,000 40,000 A/R Write-offs - - Transfers to Reserve Funds 1,500,000 (1,500,000) - Total Finance Charges/Reserves 1,713,350 (1,668,350) - - 2,100,000 2,145,000 (Surplus) Deficit - (1,668,350) 1,112,400-2,100,000 1,544,050 8

9 2011 Draft Water & Wastewater Operating & Capital Budgets

10 Significant Budget Drivers Lower Consumption Levels Consumption is significantly lower than what was provided for in the budget Consumption per household will not return to historical levels Adjusting the forecasted revenue requirement based on this new reality has accounted for 2.6% (or 65%) of the recommended 2011 rate increase of 4.0% Cubic Metres 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 2,900,000 2,800,000 2,700,000 2,600,000 Water Billed Consumption by Year Reference: CES Water & Wastewater Treasurer s Report page 6 Year 10

11 Significant Budget Drivers cont d Increasing electrical costs due to the Provincial Benefit Program surcharge is a significant ifi tbudget tdi driver for both systems. Commissioning of the Bracebridge Lagoon Lane wastewater treatment plant in September 2011 will add $126,000 in operational costing in 2011 & an additional $180, in This is a significant budget driver on the wastewater monthly user fee in both 2011 & The Debt Reduction Initiatives are beginning to bear fruits in terms of moderating the debt servicing & reserve contributions as underlying causes in year over year rate increases. 11

12 Water: Year-over-Year Budget by Major Revenue Category Local Improvements Hydrant Rentals Other Miscellaneous Revenues User Fees Urban Service Area Levy 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Urban Service Area Levy User Fees Other Miscellaneous Revenues Hydrant Rentals Local Improvements ,270,400 7,523,081 95, , , ,206,600 7,481, , , , ,191,100 7,445, , , ,408 Reference: CES Water & Wastewater Treasurer s Report, page 34 12

13 Wastewater: Year-over-Year Y Budget by Major Revenue Category Local Improvements Other Miscellaneous Revenues User Fees Urban Service Area Levy 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Urban Service Area Levy User Fees Other Miscellaneous Revenues Local Improvements ,731,625 6,089,675 48, , ,597,463 5,765,947 43, , ,088,866 5,332,229 30, ,434 Reference: CES Water & Wastewater Treasurer s Report, page 35 13

14 Water: "Fixed Revenue" vs. "Variable Revenue" Reference: CES Water & Wastewater Treasurer s Report, page 5 Local Improvements 1% Fire Protection Charges 1% Urban Service Area 29% User Fee - Flat Rate Charges 25% Other 44% User Fee - Volumetric Charges 43% Other Revenues 1% Wastewater: "Fixed Revenue" vs. "Variable Revenue" Reference: CES Water & Wastewater Treasurer s Report, page 5 Local Improvements 4% Urban Service Area 51% User Fee - Flat Rate Charges 3% Other 42% User Fee - Volumetric Charges 42% Other Revenues 0%

15 Rate & Property Tax Impact Water Services Monthly Impact on Typical Residential Household (23 cubic metres per month & house assessed at $200,000 ) Current 2011 vs vs vs 2012 $ $ % $ % $ % User Fee % % % Urban Service Area Charge % % % Year-over-Year Total % % % Accumulated Impact over 2010 Rate % % % Sewer Services Current 2011 vs vs vs 2012 $ $ % $ % $ % User Fee % % % Ub Urban Service Area Charge % 0.0% % 3.1% % 1.6% Year-over-Year Total % % % Accumulated Impact over 2010 Rate % % % Combined Water & Sewer Services Current 2011 vs vs vs 2012 $ $ % $ % $ % User Fee % % % Urban Service Area Charge % % % Year-over-Year Total % % % Accumulated Impact over 2010 Rate % % % Reference: CES Water & Wastewater Treasurer s Report, page 36 15

16 2011 Draft Water Operating Budget 16

17 % Share of 2011 Water Budget by Functional Area Reference: CES Water & Wastewater Treasurer s Report, page 7 Corporate Expenses 4% Finance Charges / Reserve Transfers 51% Other 45% Administration 11% Distribution ib ti 12% Treatment 22% New Services 0% Water: "Fixed Revenue" vs. "Variable Revenue" Reference: CES Water & Wastewater Treasurer s Report, page 5 Local Improvements 1% Fire Protection Charges 1% Urban Service Area 29% User Fee - Flat Rate Charges 25% Other 44% User Fee - Volumetric Charges 43% Other Revenues 1%

18 Water: Year-over-Year Budget By Functional Area Finance Charges/Reserve Transfers Non Operating Expenses New Services Distribution Treatment Administration 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Administration Treatment Distribution New Services Non Operating Expenses Finance Charges/Reserve Transfers ,249,025 2,423,070 1,352,115 19, ,600 5,619, ,197,850 2,427,441 1,047,430 30, ,300 5,850, ,132,257 2,529,929 1,055,268 38, ,400 5,832,540 Reference: CES Water & Wastewater Treasurer s Report, page 8 18

19 Water: Year-over-Year Budget Increases (Decreases) by Major Expense Category 150, ,000 50,000 0 (50,000) (100,000) (150,000) (200,000) (250,000) (300,000) (350,000) Personnel Em ploye e Re late d Expe ns e s Materials & Supplies Purchased Services Major Contracts Transfer to Others Base Budget Adjustments 112,800 5, ,533 40,191 10,870 0 (2,490) (3,510) 49,780 (330,995) 100,000 Minor Capital Fleet Interdepart Charges Debt Repay Transfer to Re s erve Funds Reference: CES Water & Wastewater Treasurer s Report, page 9 19

20 Budget Drivers within the Base Budget Adjustments Water Expense Category Personnel Item $ Increase (Decrease) Total $ Increase (Decrease) Annualized wages and benefits are based on projected costs and 2011 planned work schedules, with a shift in allocation between water and wastewater based on an average of the previous three years actual hours worked. Note: the total staff complement has not changed from the approved ,800 levels and the existing contract with the outside union expires December 31, Employee Related Expenses Membership fees increase due to drinking water quality management standard, MOE implementation requirement by September ,495 Material & Supplies Inflationary increase in Chemical Supplies. 39,980 Utility inflationary increases and projected base budget adjustments based on 2011 service levels including Provincial Benefit surcharge on electricity. 83,159 Reduction in Operating Supplies as a result of the near completion of the water meter exchange program. (33,256) Equipment Repair Parts increase mainly due to a shift in Huntsville from the Subcontractor line. 11,300 HST impact. 9, ,533 Purchased Services New Connection budget has been moved to this category. 20,000 Increase in Insurance premiums. 19, Reduction in SCADA (Supervisory Control and Data Acquisition) budget based on 2010 actual expenditures. (40,000) The increase in Subcontractor costs is mainly for repairs and maintenance to the Bala water plant. 49,390 Reduction in Communications budget for telephone, cell phone and alarm services. (20,414) Other miscellaneous adjustments. 4,280 HST impact. 7,035 40,191 Reference: CES Water & Wastewater Treasurer s Report, pages

21 Budget Drivers within the Base Budget Adjustments Water (cont d) Expense Category Major Contracts Item Total $ $ Increase Increase (Decrease) (Decrease) Increase is mainly for meter reading, infrared, HVAC and flow meter calibration contracts. 9,800 HST impact. 1,070 10,870 Minor Capital Items Reduction in meter replacements based on HST impact. (2,490) Fleet Reduction based on 2010 actual expenditures. (3,510) Interdepartmental Charges Finance and Accounting services annual increase. 11,800 Engineering and Drafting services. The increase is mainly due to the allocation of District provided professional services which increases the Public Works Administration i ti budget and in turn the interdepartmental t t 28,130 allocation to the Water Operating budget. Computer Services annual increase. 7,800 Other miscellaneous services. 2,050 49,780 Increase due to Non-Financing Costs 323,669 Debt Repayments Transfer to Reserve Funds Scheduled annual debt payments on existing debt and proposed new debt on open projects. (330,995) 100,000 Decrease due to Capital Financing Requirements (230,995) Subtotal 92,674 Offset Revenue Increases (28,874) Total Net Levy Increase 63,800 Reference: CES Water & Wastewater Treasurer s Report, pages

22 Water: Year-over-Year Budget by Major Expenditure Category Transfer to Reserve Funds Debt Repay Interdepart Charges Fleet Minor Capital Transfer to Others Major Contracts Purchased Services Materials & Supplies Employee Related Expenses Personnel 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Personnel Employee Related Expenses Materials & Purchased Major Transfer to Interdepart Transfer to Minor Capital Fleet Debt Repay Supplies Services Contracts Others Charges Reserve Funds ,832,000 64,645 1,564, ,015 57, , , ,140 3,319,736 2,300, ,719,200 59,150 1,253, ,724 46,200 30,000 65, , ,360 3,650,731 2,200, ,809,900 59,168 1,272, ,571 35,000 30,000 79, , ,650 3,832,540 2,000,000 Reference: CES Water & Wastewater Treasurer s Report, page 12 22

23 2011 Draft Wastewater ater Operating Budget 23

24 % Share of 2011 Wastewater Budget by Functional Area Reference: CES Water & Wastewater Treasurer s Report, page 13 Corporate Expenses Finance Charges / Reserve Transfers 55% Other 42% 3% Administration 9% Collection 5% Treatment 28% New Services 0% Wastewater: "Fixed Revenue" vs. "Variable Revenue" Local Improvements 4% Urban Service Area 51% User Fee - Flat Rate Charges 3% Other 42% User Fee - Volumetric Charges 42% Other Revenues 0% Reference: CES Water & Wastewater Treasurer s Report, page 5

25 Wastewater: Year-over-Year Budget by Functional Area Finance Charges/Reserve Transfers Non Operating Expenses New Services Collection Treatment Administration i ti 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Administration Treatment Collection New Services Non Operating Expenses Finance Charges/Reserve Transfers ,262,290, 3,924,125, 576,660 19, ,200 7,161,268, ,174,140 3,548, ,860 14, ,900 7,149, ,036,564 3,304, ,877 14, ,000 6,846,300 Reference: CES Water & Wastewater Treasurer s Report, page 14 25

26 Wastewater: Year-over-Year Budget Increases (Decreases) by Major Expenditure Categories 350, , , , , ,000 50,000 0 (50,000) Personnel Employee Related Expenses Materials & Supplies Purchased Services Major Contracts Minor Capital Fleet Interdepart Charges Debt Repay Transfer to Reserve Funds Base Budget Adjustments t 20, (160) 316,588 3,015 54, ,910 69,390 11,652 0 Reference: CES Water & Wastewater Treasurer s Report, page 15 26

27 Budget Drivers within the Base Budget Adjustments Wastewater Expense Category Item $ Increase (Decrease) Total $ Increase (Decrease) Personnel Employee Related Expenses Annualized wages and benefits are based on projected costs and 2011 planned work schedules, with a shift in allocation between water and wastewater based on the previous three years actual hours worked. Note: the total staff complement has not changed from the approved 2010 levels and the existing contract with the outside union expires December 31, ,200 Mileage, Memberships and Protective Clothing adjustment based on 2010 forecast usage. Material & Supplies Inflationary increase in Chemical supplies. 29,410 Utility inflationary increases and projected base budget adjustments based on 2011 service levels including the Provincial Benefit surcharge on 178,438 electricity. Operating Supplies have increased mainly due to a planned overhaul of the Dill Street pumps. 32,820 Equipment Repair Parts have decreased due to cyclical maintenance requirements. (48,880) Additional costs for the new Bracebridge Treatment Plant beginning in September Electricity costs (including Provincial Benefit), supplies and chemicals. 126,000 Other miscellaneous adjustments. (9,970) (160) HST impact. 8, ,588 Reference: CES Water & Wastewater Treasurer s Report, page 16 27

28 Budget Drivers within the Base Budget Adjustments Wastewater (cont d) Expense Category Item Total $ $ Increase Increase (Decrease) (Decrease) Purchased Services New Connection budget has been moved to this category. 20,000 Reduction in SCADA (Supervisory Control and Data Acquisition) budget based on 2010 actual expenditures. (35,000) Increase in Insurance premiums. 42,500 Subcontractor costs have decreased due to a budget adjustment for the Port Severn service lock capital project. (23,955) Reduction in Communications budget mainly due to decreased 2010 actual expenditures for Huntsville. (13,520) Other miscellaneous adjustments. t 6,770 HST impact. 6,220 3,015 Increases include planned annual maintenance contracts for 2011 including Major Contracts meter reading, HVAC and diesel maintenance, flow meter calibrations, and fire alarm and hoist inspections. 45,200 HST impact. 9,710 54,910 Fleet Increase based on 2010 actual expenditures. 14,910 Interdepartmental Charges Finance and Accounting services annual increase. 11,800 Engineering and Drafting services increase based on an average of the previous three years charges. 47,500 Computer Services annual increase. 7,800 Other miscellaneous adjustments. 2,290 69,390 Increase due to Non-Financial Costs 478,853 Debt Repayments Scheduled annual debt payments on existing debt and on proposed new debt to finance open projects. 11,652 Increase due to Capital 11,652 Subtotal 490,505 Offset Revenue Increases (356,343) Total Net Levy Increase 134,162 Reference: CES Water & Wastewater Treasurer s Report, page 16 28

29 Wastewater: Year-over-Year Budget by Major Expenditure Category Transfer to Reserve Funds Debt Repay Interdepart Charges Fleet Minor Capital Major Contracts Purchased Services Materials & Supplies Employee Related Expenses Personnel 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Personnel Em ploye e Related Expenses Materials & Supplies Purchased Services Major Contracts Minor Capital Fleet Interdepart Charges Debt Repay Transfer to Reserve Funds ,641,600 43,415 2,097, , , ,540 1,016,790 5,361,268 1,800, ,621,400 43,575 1,613, , , , ,400 5,349,616 1,800, ,513,500 42,600 1,485,540 1,047, ,950 65, , ,800 5,046,300 1,800,000 Reference: CES Water & Wastewater Treasurer s Report, page 17 29

30 2011 Draft Capital Budgets & Forecast 30

31 2011 Draft Capital Budget & Forecast Water Total 10 year Draft Capital Budget & Forecast is projecting $36 million in gross expenditures (2010Forecast $36.5 million). No provision ii for the issuance of long term dbt debt on the assumption of no shortfall in development charges revenue (2010 $1.8 million of the $36.5 million in forecasted expenditures was to be funded from long term debt). The largest source of funding continues to be from the internal reserve funds at $22 million. 31

32 2011 Water Capital Expenditures by Category Inspections 4% Reservoirs 2% Studies 2% Plants 46% Repairs and Maintenance 8% Local Improvements 0% Reference: CES Water & Wastewater Treasurer s Report, page 19 Pumping Stations 0% Replacement - Upgrades 34% Rehabilitation - Mains 4% Water Capital Budget & Forecast Sources of Financing Debenture 0% Development Charges 29% Grants 0% Area Roads 10% Water Capital 49% District Roads 1% Sustainable Infrastructure 11% Reference: CES Water & Wastewater Treasurer s Report, page 18 Project Program Budget Huntsville HV Kinton Ave WM Loop Replacement/Upgrade 500, HV WTP HVAC System & Misc. Rehab Plant 1,500,000 Subtotal Expenditures $2,000,000 Remaining Expenditures 3,015,000 Total Capital Project Expenditures $5,015,000 Reference: CES Water & Wastewater Treasurer s Report, page 19 32

33 Water Capital Expenditures by Category Studies 2% Inspections 4% Reservoirs 5% Repairs and Maintenance 2% Local Improvements 0% Pumping Stations 0% Replacement - Upgrades 45% Plants 40% Rehabilitation -Mains Project 2% Program Budget The District Municipality of Muskoka DMM MOE Water System Inspections Future Inspections 800,000 Gravenhurst GH Musquash Rd "B" (Hydrant #250) to MR 169 Replacement/Upgrade 500,000 Huntsville HV Hidden Valley Area WM Replacement Replacement/Upgrade 1,420, HV Earl's Road Connect to Hanes Reservoir Replacement/Upgrade 1,000, HV North End Servicing Replacement/Upgrade 1,500, HV WTP HVAC System & Misc. Rehab Plant 1,500,000 Port Carling PC Repair/Paint Tower Reservoir 500,000 Port Severn PS WTP Upgrade Plant 4,000,000 MacTier MT WTP Modifications Plant 1,500,000 Subtotal Expenditures $12,720,000 Remaining Expenditures 6,140,000 Total Capital Project Expenditures $18,860,000 Reference: CES Water & Wastewater Treasurer s Report, page 20 33

34 Water Capital Expenditures by Category Replacement - Upgrades 25% Local Improvements 0% Rehabilitation -Mains 11% Plants 25% Repairs and Maintenance 0% Pumping Stations 0% Studies 4% Inspections 8% Reservoirs 27% Project Program Budget The District Municipality of Muskoka DMM Water Quality Regulations Future Inspections 500, DMM MOE Water System Inspections Future Inspections 1,000,000 Bracebridge BB Taylor Road Watermain (Toronto to Pine) Replacement/Upgrade 500, BB Spencer from Andrea to Santa's Village Rd Replacement/Upgrade 650,000 Gravenhurst GH Repair/Paint Fairview Tower Reservoir 500, GH Repair/Paint Beach Road Tower Reservoir 500,000 Huntsville HV WTP Phase II Plant 3,000, HV Highland Dr Booster/Reservoir Reservoir 2,000,000 Subtotal Expenditures $8,650,000 Remaining Expenditures 3,430,000 Total Capital Project Expenditures $12,080,000 Reference: CES Water & Wastewater Treasurer s Report, page 21 34

35 2011 Draft Capital Budget & Forecast Wastewater Total 10 year Draft Capital Budget & Forecast is projecting $90.5 million in gross expenditures ($112 million in 2010). Of the $90.5 million budgeted, $35.2 million is forecasted to be financed from development charges ($39 million in 2010). No debt financing, however, shortfalls in development charges revenue can be expected. This shortfall will have to be financed from the issuance of long term debt. The user fee projections contained further within this report assumes $23.1 million in debt will be issued. The largest source of funding for the capital program at $45.6 million is financing i from internal resources. 35

36 Repairs & Maintenance 6% Inspections 0% Plants 64% 2011 Wastewater Capital Expenditures by Category Local Improvements 0% System Expansion 0% Reference: CES Water & Wastewater Treasurer s Report, page 23 Pumping Stations 25% Replacement - Upgrades 0% Rehabilitation 5% Wastewater Capital Budget & Forecast Sources of Financing Grants 5% Debenture 0% Development Charges 39% Local Improvements 2% Area Roads 4% District Roads 2% Wastewater Capital 17% Sustainable Infrastructure t 13% Environmental 18% Reference: CES Water & Wastewater Treasurer s s Report, page 22 Project Program Budget Bracebridge BB River St SPS Expansion Pumping Station 600, BB Lagoon Lane STP Plant 2,950,000 Huntsville HV Church St PS Upgrade Pumping Station 600, HV Coveside Dr PS Upgrade Pumping Station 1,400, HV GP STP Alkalinity, Screen and Gas System Plant 700,000 Bala BALA STP Upgrade Plant 1,000,000 Port Carling PC STP Expansion Plant 4,000,000 Subtotal Expenditures $11,250,000 Remaining Expenditures 2,585,000 Total Capital Project Expenditures $13,835,000 Reference: CES Water & Wastewater Treasurer s Report, page 23 36

37 Plants 24% Wastewater Capital Expenditures by Category Repairs & Inspections Maintenance 0% 4% Local Improvements 15% Rehabilitation 6% System Expansion 14% Replacement - Upgrades 3% Project Program Budget The District Municipality of Muskoka DMM Provision i for Expansion Local Improvement 1,000,000 Bracebridge BB Trunk Main from Inveraray Crt to MR 118 System Expansion 1,300, BB Trunk Main Sellens N System Expansion 1,500, BB Trunk Main MR4 from Meadow to Sellens System Expansion 800, BB River St SPS Expansion Pumping Station 2,500, BB New/Upgraded Forcemain for Robert Dollar Dr SPS Pumping Station 500,000 Huntsville HV Hidden Valley Local Improvement 4,475, HV North End Servicing System Expansion 1,500, HV Reline Twin Hodges PS Forcemain Pumping Station 2,500, HV Church St PS Upgrade Pumping Station 2,100, HV Hodges Lane SPS Expansion & Forcemain Pumping Station 3,000, HV Mountview STP UV Disinfection Plant 1,000, HV Mountview STP Expansion & Upgrade Plant 500,000 Port Severn PS STP Upgrade Plant 4,000,000 Port Carling PC STP Expansion Plant 3,000,000 Subtotal Expenditures $29,675,000 Remaining Expenditures 6,845,000 Total Capital Project Expenditures $36,520,000 Reference: CES Water & Wastewater Treasurer s Report, page 24 Pumping Stations 34% 37

38 Wastewater Capital Expenditures by Category Repairs & Maintenance 3% Inspections 0% Local Improvements System Pumping 3% Expansion Stations 0% 4% Replacement - Upgrades 1% Rehabilitation 8% Plants 81% Project Program Budget The District Municipality of Muskoka DMM Provision for Expansion Local Improvement $1,250,000 Bracebridge BB Various Sewer Rehabilitation Future Rehabilitation 810, BB Lagoon Lane STP Headworks Plant 7,000,000 Huntsville HV Ferguson Road SPS Expansion & Forcemain Pumping Station 500, HV Various Sewer Rehabilitation Future Rehabilitation 1,000, HV Mountview STP Expansion & Upgrade Plant 18,500, HV GP Process Upgrades Plant 7,000, HV MH Repairs Future Repairs & Maintenance 500,000 Subtotal Expenditures $36,560,000 Remaining Expenditures 3,615,000 Total Capital Project Expenditures $40,175,000 Reference: CES Water & Wastewater Treasurer s Report, page 25 38

39 Capital Financing Water Capital Sources of Financing % Share 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Development Charges Reserve Funds Debentures External Sources Wastewater Capital Sources of Financing Reference: CES Water & Wastewater Treasurer s Report, page 26 % Share 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Development Charges Reserve Funds Debentures Grants External Sources 39

40 Water Capital Budget & Forecast Sources of Financing Debenture 0% Development Charges 29% Grants 0% Area Roads 10% Water Capital 50% District i t Roads 0% Sustainable Infrastructure 11% Wastewater Capital Budget & Forecast Sources of Financing Grants 5% Debenture 0% Local Improvements 2% Area Roads 4% Wastewater Capital 17% Sustainable Infrastructure 13% Reference: CES Water & Wastewater Treasurer s Report, page 27 Development Charges 39% District Roads 2% Environmental 18% 40

41 Reserves & Reserve Funds Budgeted Contribution 2011 Draft 2010 Budget Fund Budget Water Operations Water Capital 2,200,000 2,300,000 Wastewater Operations Wastewater Capital 1,800,000 1,800,000 Total 4,000,000 4,100, Opening Balance (over-committed) 2011 Transfers in (excluding interest earned) Closing Fund Commitments Balance Water Capital $717,764 $3,092,000 $2,300,000 $(74,236) Wastewater Capital 498,448 1,875,000 1,800, ,448 Environment General 1,494,125 4,360,815 2,471,290 (395,400) Sustainable Infrastructure 1,917,417 1,806,000 1,764,243 1,875,657 Total $4,627, $11,133, $8,335, $1,829,469 Reference: CES Water & Wastewater Treasurer s Report, page 29 41

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43 43

44 $12,000,000 ProjectedReserve FundBalances $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ $2,000,000 Sustainable Infrastructure Commitments Sustainable Infrastructure Reserve Fund Balance Environmental Reserve Commitments Environmental Reserve Fund 44

45 Water Forecasted Debt Payments 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Forecasted Debt Internal Debt Obligations Forecasted Debt External Planned Debt Internal Existing Debt Internal Forecasted Debt External Planned Debt External Existing Debt External 500, Reference: CES Water & Wastewater Treasurer s Report, page 32 Reference: CES Water & Wastewater Treasurer s Report, page 31

46 12,000,000 Total Corporate Forecasted Payments Corporate Debt Obligation 10,000,000 8,000,000 Forecasted Debt Internal Planned Debt Internal 6,000,000 Existing Debt Internal Forecasted Debt External 4,000,000 Planned Debt External Existing Debt External 2,000, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Forecasted Available Credit Limit Available Limit Total Debt Payments Reference: CES Water & Wastewater Treasurer s Report, page 33 Reference: CES Water & Wastewater Treasurer s Report, page 32 46

47 RECOMMENDATION THAT the 2011 Draft atwater and Wastewater ate Operating Budget and 2011 Draft Capital Budget and Forecast as presented in Report No. CES be approved; AND THAT the 2011 rate structure for water and wastewater services and miscellaneous charges as outlined in Appendix D of Report No. CES be approved and become effective for all billings issued on or after March 1,

48 2011 Draft Solid Waste Management Operating & Capital Budgets

49 2011 Draft Solid Waste Management Operating Budget The 2011 Draft Operating Budget, attached as Appendix A, shows a net levy increase of 3% or $259,768. After an assessment growth of between 1.5% to 2.0%, the net impact on the property tax bill will be 1.5% or less. The primary causes for the increase can be categorized as follows: Budgeted Item Increase (Decrease) Contractual price adjustments built into primary contracts (under Major Contracts) $200,713 Increased provincial i funding on MHSW Program ($69,808) Reduced provincial funding in other Diversion Programs $90,487 Reduced tipping fees $301,809 Increased fees from Diversion Programs ($219,711) Harmonized Sales Taxes (cost net of rebate) $145, Other-Reduced Operating Costs (see details under Major Budget Drivers) ($189,155) Total $259,768 Reference: CES Solid Waste Management Treasurer s Report, page 3 A recommended d tipping i fee rate increase of $3 or 2.5% 5%t to $121 per tonne from the current $118 per tonne, effective April 1,

50 360,000 Solid Waste Management Budget-to-Budget Expenditure Increases 310, , , , ,000 60,000 10,000 (40,000) (90,000) (140,000) 000) Personnel Employee Related Materials & Supplies Purchased Services Major Contracts Transfer to Others Minor Capital Base Budget Adjustments 20,100 2,450 (84,015) (35,715) 341,141 (700) 7,600 (115,180) 36,810 (15,500) Fleet Interdept Charges Finance Charges/ Reserves Reference: CES Solid Waste Management Treasurer s Report, page 4 50

51 Budget Drivers within the Base Budget Adjustments Solid Waste Management Expense Category Item $I Increase (Decrease) Total $ Increase (Decrease) Personnel Annualized wages & benefits and assignment of labour based on 2011 work plans. 20,100 Employee Related Travel and Protective Clothing 2,900 Expenses HST effect on Employee Related Expenses. (450) ,450 Materials & Supplies reduced to reflect projections for 2011 based on current 2010 actual. (80,400) HST effect on Materials & Supplies. (3,615) (84,015) Purchased Services Major Contracts Internal insurance premium deduction in recognition of lower claims experience and lower deductible expenditures. (29,400) Consultant Fees for updates to the Certificate of Approval for Electronic -Waste (E- Waste) sites at Baxter, Eveleigh and Franklin, and the Beiers Road compost facility. 26, Building Maintenance will not occur in 2011 at Landfill Sites or Transfer Stations. (34,400) HST effect on Purchased Services. 11,470 Other minor adjustments. 9,985 (35,715) Curbside Pickup - Waste, Recycling, Kitchen Organics, Large Items, Leaf and Yard Waste base adjustment. 70,787 Removal of the 2010 Service Level Change for Green Bin educational plan. (59,310) HST effect on Major Contracts. 140,428 Removal of 2010 G8 Service Level Change. (33,440) Savings as a result of the Solar Powered Compactors at the Eveleigh, Franklin and McLean Transfer Stations. ti (40,607) Contract costs to include Household Hazardous Waste (HHW) collection/disposal site available year-round in Bracebridge. 29,020 Addition of Eveleigh Transfer Station 10-yard Green Bin. 8,000 Remote Bins and Front End Lift (FEL) Pickup: base adjustment. 36,626 Baxter operational changes resulting in a net savings due to switching 6-yard FEL s to40- yard Roll-off bins (20,865) Rosewarne landfill operational changes causing increased haulage costs. 54,050 Reference: CES Solid Waste Management Treasurer s Report, pages

52 Budget Drivers within the Base Budget Adjustments Solid Waste Management (cont d) Expense Category Item $ Increase (Decrease) Total $ Increase (Decrease) Haulage base budget adjustment. 6,772 Prime Contractor costs at Rosewarne and Beiers Road landfill sites have increased to include a BFI Canada Inc. employee with a loader for the full year at Rosewarne 26,966 and the summer months at Beiers Road. Roll-off lift and dump waste and recycle base budget adjustment. 8,758 HHW disposal costs have increased with corresponding increases in HHW tonnages. 98,170 Security Contract: base adjustment. 8,965 Other adjustments. 6, ,141 Transfer to Others Bear-proof container rebates and Backyard Composter rebates: reduce program by amount expected to be spent in (700) Minor Capital Items Refer to Minor Capital Detail Report in Appendix A pages 12 and 24 for details. 10, HST effect on Minor Capital. (2,400) 7,600 Fleet Disposition of two old loaders for one new unit. I (100,300) Miscellaneous decreases (14,880) (115,180) Interdepartmental Charges Financing / Reserves Costs and time devoted to the Solid Waste Management Finance & Engineering functions. 36,810 Annual contribution to the Solid Waste Capital Reserve (15,500) Subtotal 156,991 Reference: CES Solid Waste Management Treasurer s Report, pages

53 Budget Drivers within the Base Budget Adjustments Solid Waste Management (cont d) Expense Category Operating Revenues Grants Federal & Provincial User Fees Item $ Increase (Decrease) Waste Diversion Ontario (WDO). (58,887) Total $ Increase (Decrease) Increase for Municipal Hazardous and Special Waste (MSHW) due to an increase in Household Hazardous Waste materials and new available funding for 69,808 administration costs. Decrease in E-Waste funding based on current year activity. (24,000) Decrease in Ontario Tire Stewardship (OTS) funding based on 2010 projected actual. (7,600) (20,679) Tipping Fee: $3/tonne increase in tipping fee rate as of April 1, 2011 and an adjustment of revenue based on trends in the amount of waste disposed at sites. 100,000 Tipping Fee: Increase due to the discontinuation of the Clean Shingles program; reinstate tipping fee at the full rate effective April 1, ,800 Tipping Fee: Base budget decrease resulting from a decrease in general waste tonnage. (450,300) Tipping Fee: Wood Chipping base budget adjustment to reflect current year decrease in actual revenue. (104,979) Tipping Fee: Scrap Metal base budget adjustment to reflect current year decrease in actual revenue. (8,903) Tipping i Fee: Base budget adjustment t to remove the G8 Service Level Change from (8,300) Blue Box materials rebate from BFI Canada Inc. is expected to increase based on current market prices. 125,000 Scrap Metal revenue is projected to increase for 2011 based on current market prices. 93,711 Miscellaneous other revenue. 3,873 (82,098) Subtotal (102,777) Total Base Budget Adjustments 259,768 Reference: CES Solid Waste Management Treasurer s Report, pages

54 2011 Draft Solid Waste Management Capital Budget & Forecast The 2011 Capital Budget totals $2,030, in expenditures. - Major projects contained in the 2011 Capital Budget include compliance & final cover at: the Rosewarne landfill site ($500,000), the Beiers Road landfill site ($300,000), and the Stisted landfill site ($250,000) The Capital Forecast totals $13,140, in expenditures. - Major expenditures in this period include: site expansions, site closures & study costs, and $5,250, over the 10-year forecast period to development a new disposal facility commencing in 2016 All of the projects contained within the 2011 Draft Capital Budget & Forecast are financed by the Solid Waste Capital Reserve fund. 54

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56 RECOMMENDATIONS THAT the 2011 Draft Solid Waste Management Operating Budget and 2011 Draft Capital Budget and Forecast as presented in Report No. CES be approved; AND THAT the 2011 user fees as outlined in Appendix C of Report No. CES be approved and become effective on April 1,