Table of Contents. Budget at a Glance Operating and Capital Revenues Community Profile Did you know? Fast Facts...

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1 2015 BUDGET

2 y0 Table of Contents Budget at a Glance... 3 Operating and Capital Revenues... 4 Community Profile Did you know?... 7 Fast Facts... 8 Budget Background... 9 Financial Principles & Policies Revenues Reserves Budget Framework Basis of Accounting and Budgeting Budget Process Department Budgets Warden & CAO Statutory & Cultural Services Corporate Performance Social & Community Services Health and Emergency Services Engineering, Planning & Environment Risks & Opportunities Consolidated Financial Summary Operating Balance Property Taxation Salaries and Benefits Staffing Enhancements Operational Enhancements Operational Summary by Department Capital Capital Funding Capital Plan Reserves Cash Flow Debt Financing Cities of Barrie and Orillia Summary Final Budget January 27, 2015 Page 1

3 Budget and the Strategic Plan Long Term Financial Plan Projection Long Term Capital Plan Projection Long Term Cash Flow Projection Long Term Debt Financing Projection Strategic Management Process Final Budget January 27, 2015 Page 2

4 Budget at a Glance The 2015 budget contemplates operating expenditures and capital assets acquisitions of $432 million. Operating and capital revenues excluding levy increase and unfinanced charges are $413 million. The remaining funding is assumed to be financed as follows: 1.06% levy increase of $1.47 million ($3.23 per $100,000 assessment) Unfinanced development charges reserve balance increase of $18.3 million o No additional long term debt financing is budgeted for in 2015 o Short term financing of $8.3 million is anticipated to balance cash flow for unfinanced development charges Total County Operating Expenditures of $363 million include: Ontario Works - $84 million Long Term Care and Seniors Services - $50 million Transportation and Engineering - $21 million Solid Waste Management - $44 million Social Housing - $38 million Paramedic Services - $40 million Children & Community Services - $34 million Total County Capital Expenditures of $69 million include: Roads Construction - $47 million Roads Maintenance - $6 million Solid Waste Management - $3 million Paramedic Services - $5 million Long Term Care and Seniors Services - $1 million Simcoe County Housing Corporation - $5 million During the 2014 strategic planning session County Council determined that the 2013 surplus was to be allocated to the Social Housing reserve for future Social Housing capital requirements totaling $1.0M and $900K to the General Contingency reserve. Council also directed condensing major roads construction projects as much as possible in order to minimize the construction time impact on residents. The projects identified include CR90, CR50, CR17 and CR4 with related road, bridge and intersection components. This will increase capital expenditures over the next two years and drives the need for short term financing as outlined in the long term financial plan. Other key directions for the budget includes the continuation of the current annual commitment to the hospital alliance until 2016 of $3.0M and to contribute $1.5M to fund post-secondary education initiatives in Final Budget January 27, 2015 Page 3

5 Operating and Capital Revenues Exhibit Total County Revenues The County s actual tax requirement of $140M is broken down as follows: How Your Tax Dollars Work Levy Support Area % of Tax Dollars ($000's) Per $100,000 Residential Assessment Value Ontario Works 4.6% 6, Paramedic Servcies 12.2% 17, Social Housing 11.3% 15, Health Unit, MPAC, Hospital Support 8.7% 12, Transportation & Engineering 21.4% 30, Operational & Statutory Support 7.6% 10, Solid Waste Management 21.2% 29, Long Term Care and Seniors Services 4.6% 6, Cultural Services 2.5% 3, Children & Community Services 2.9% 4, Planning, Economic Development & Tourism 2.3% 3, Emergency Management 0.4% Forestry & By-Law 0.3% Total Taxes based on Services listed above: 100.0% 140,328 $ * All numbers are rounded Exhibit 2 Tax Requirement by Department 2015 Final Budget January 27, 2015 Page 4

6 Operating and Capital Expenditures Exhibit Operating and Capital Expenditures Exhibit Total Capital 2015 Final Budget January 27, 2015 Page 5

7 2015 Final Budget January 27, 2015 Page 6

8 Community Profile Did you know? The County of Simcoe Consists of 16 member municipalities Is the second largest County with a population of approximately 465,000 and third largest based upon physical size in Ontario Owns approximately 13,087 hectares (more than 32,150 acres) of County Forests Borders on 500 kms (311 miles) of shoreline Maintains more than 850 kms of County roads, 200 bridges and structures and 50 major signalled intersection Plays host to over 9 million visitors annually More than 1,650 full and part-time employees Manages the provincially legislated Ontario Works program for the residents throughout the County and the cities of Barrie and Orillia Provides Paramedic Services for the residents throughout the County and the cities of Barrie and Orillia Provides Long Term Care and Seniors Services within the County and in the cities of Barrie and Orillia Provides Children Services for the County and in the cities of Barrie and Orillia Manages and funds Homelessness Prevention Programs throughout the County and the cities of Barrie and Orillia Responsible for delivering affordable housing for Simcoe County and the cities of Barrie and Orillia Is the co-ordinating agency for 911 and Emergency Planning Is responsible for the residential waste and recycling programs, environmental compliance, and waste diversion initiative Customer Service handles on average more than 8,200 inquiries per month Planning and Development works with the partner municipalities to guide and influence growth and development policies that will enhance the quality of life, conserve natural and cultural resources and ensure the efficient delivery of Planning Services 2015 Final Budget January 27, 2015 Page 7

9 Fast Facts Building Permit Construction Values ($ millions) for Simcoe County Year Industrial Commercial Residential Source: Area Municipalities, Building Reports *Simcoe County refers to Simcoe County s 16 member municipalities including the separated Cities of Barrie and Orillia. Consumer Price Index Non Residential Price Index Year % Change Year % Change % % % % % % % % % 2010 (5.07%) Source: Area Municipalities, Building Reports *Simcoe County refers to Simcoe County s 16 member municipalities including the separated Cities of Barrie and Orillia. Population Change % Change Jurisdiction of Simcoe County 263, , % Simcoe County (including Barrie & Orillia) 422, , % Province of Ontario 12,160,282 12,851, % NOTE: Barrie: ,430; ,711; Orillia: ,259; ,586 *Source Statistics Canada Number of Housing Starts in Simcoe County Number of Visitors to Simcoe County Year Number Year Number , million , million , million , million , million , million 2015 Final Budget January 27, 2015 Page 8

10 Budget Background The County of Simcoe delivers a wide variety of programs and services to local residents and businesses ensuring residents needs are met by allocating the limited resources available to the County to the best use. The County of Simcoe is a dynamic community that continues to experience tremendous growth. With growth, the municipality is faced with delivering core services to an expanding demand, enhancing programs and services to address community feedback, while balancing the financial burden on the taxpayers as there are only limited sources of funding available to support the services used by residents every day. This challenge is addressed annually through budget deliberations as Council decides on the overall level of services and the types of programs, infrastructure and long-term investments necessary to support a growing community while preserving a valued lifestyle affordable to residents of Simcoe County. The annual budget is a strategic planning document whereby the limited financial resources of the County are allocated to various programs and services to achieve the County of Simcoe s priorities and reflects the needs of residents. The budget establishes service levels, program offerings, replacement schedules as well as capital improvements, and determines the amount of taxes to be collected from residents and businesses. The County of Simcoe s 2015 operating and capital budgets provide a balance between the service demands of a growing community and maintaining the economic stability of the County s fiscal strength while minimizing the tax impact on ratepayers. The County of Simcoe is a unique and diverse community that continues to grow at a rapid pace. Balancing the need to provide core services to an expanding population with the desire to pursue new opportunities presents a challenge due to limited revenue sources. County staff has maximized other sources of revenues to support Simcoe County s history of maintaining low tax rates through a strong pay for service and growth pays for growth philosophy. Where appropriate, service fees and charges have been introduced or increased and services have been aligned with the needs of the growing community. Multiyear financial planning incorporated into the budget ensures current and future impacts associated with decisions are understood and identified. Staff continue to be conscious of Council s desire to limit the impact of growth on taxpayers and mitigate the impact on the tax levy wherever possible. Through the budget, Council and staff have the ability to meet the needs and expectations of the community Final Budget January 27, 2015 Page 9

11 Financial Principles & Policies The County has recognized the need to adopt an approach to financial management, one that shifts the emphasis from bottom line financial concerns to service delivery with a longer term financial planning horizon. The principles in the preparation of this budget may be summarized into the following: 1. Ensure Long-Term Financial Sustainability Determine on a multi-year basis the financial requirements for operating and capital needs Identify any funding gap between revenues and expenditures Ensure there are sufficient revenues to meet long-term operating and financial requirements and balance spending with revenues Plan for the replacement of assets and maintenance of assets through asset management and replacement reserves Maintain existing service levels Keep tax levy impact within cost indices 2. Deliver services in a cost-effective and efficient manner Undertake reviews of programs on a regular basis to ensure services are delivered in a cost-effective and efficient manner Identified and implement efficiencies Provide sustainable service levels 3. User Fees Ensure that user recover program operating costs 4. Manage capital assets to maximize long-term community benefit Maintain the County s assets in a state of good repair' by implementing asset management plans 5. Implement a capital funding plan to address the County s requirements New asset requirements Develop debt financing program to address the County s capital needs Ensure debt terms are consistent with the life of the asset 6. Maintain reserves at appropriate levels Establish reserves to provide funding for future assets 7. Prudent Investment Management Invest the County s reserves to achieve optimum return within appropriate risk tolerances 2015 Final Budget January 27, 2015 Page 10

12 Revenues The County utilizes service charges and user fees that are either at or near full cost recovery for funding of the services that benefit users. This reduces the need for property tax by requiring the users of services, that do not benefit the community as a whole, have the responsibility for the cost of those services. User fees are reviewed and updated regularly. Development Charges are collected to recover the growth-related capital costs associated with residential and non-residential development that create the need for capital. As the majority of the County s capital expenditures are growth related, development charges are a major source of financing for the capital plan. Property taxes are calculated by multiplying the property assessment values established by Municipal Property Assessment Corporation (MPAC) by the tax rate set for each property class that is sufficient to raise the revenue required to support municipal services. The amount required for municipal services is based on planned operating and capital expenditures net of all other revenue sources. The taxes levied for municipal purposes are used to fund the County s financial condition, investment in infrastructure, on-going expenditures and liabilities incurred. Each year Council establishes budget directions for staff to set out priorities for the year and the level of taxation deemed to be acceptable. Tax increases are based on the requirement to maintain existing service levels, proposed service level changes and on the long term financial plan. Non-recurring revenues are those revenues that the County has little control over in terms of the amount, timing or conditions associated with receiving them. Examples are funding from senior levels of government for a specific purpose, an operating surplus or gain from sale of an asset. Reserves Reserves and Reserve Funds are critical to the County s long term financial plan. Reserves are used to provide stability by smoothing the effect of variable or unanticipated expenditures by providing one time funding. Reserves also provide flexibility to manage debt within the County Debt and Capital Financing Policy. The long term financial plan identifies the projected contributions and disbursement for each reserve and strategies to ensure that funding will be sufficient to meet planned future obligations. Further specifics of each reserve or reserve fund can be found in the appendix of the department budgets Final Budget January 27, 2015 Page 11

13 Budget Framework Council is required to approve a balanced budget each calendar year (Jan 1 Dec 31), before property taxes can be billed. The operating budget includes annual expenditures for staff, materials, services, debt servicing, reserve activity, taxation, subsidy revenue and program costs. The capital budget identifies projects that will be undertaken during the year and how they will be funded. Recurring expenditures are to be financed from recurring sources of revenue and one-time, non-recurring expenditures financed from reserves. During each budget development process, Council will consider staffing, operational and capital expenditures to increase efficiencies and effectiveness. Ontario municipalities are not permitted to budget an operating deficit. Any operating surplus in any given year is allocated as per Council s direction during strategic plan discussions. Financial status reports on spending against budget and forecast to year end are prepared on a regular basis for Council s and management s information. Basis of Accounting and Budgeting The County of Simcoe s financial statements are prepared and presented in accordance with Generally Accepted Accounting Principles for local governments as recommended by the Public Sector Accounting Board (PSAB). The County of Simcoe follows the full accrual basis of accounting, which recognizes revenues as they are earned and expenses as they are incurred and measurable through the receipt of goods or services and where a legal obligation to pay exists. As required at year-end, revenues and expenses that have not yet been processed are accrued and then reversed in the following year. New financial reporting standards that became effective in 2009 require municipalities to report information about the tangible capital assets they own on their financial statements. Details about their historical cost, accumulated amortization and an amount charged to operations that represents the value of the assets used up in the year ( amortization expense ) need to be reported and are subject to audit. Tangible capital assets represent a large portion of a municipality s assets and are an important part of its operating activities. Reporting tangible capital asset data provides important information for assessing accountability and stewardship. The County s annual budget and long term financial plan framework utilize financial information that incorporates Strategic Plans, asset management plans and data from the financial accounting systems. The Asset Management System (RIVA) provides projections of capital maintenance and replacements based on established criteria and service levels. Most recently the County implemented a Budgeting and Reporting Software which provides a central repository for the County s budgeting and planning requirements. This has enhanced consistency in budgeting methods and assumptions among the divisions, increased integrity by leveraging the information available in the financial system (SAP) and broadened the opportunity for analytics. The enhanced reporting capacity improves transparency by creating reports that are more readily available for review Final Budget January 27, 2015 Page 12

14 Budget Process The County of Simcoe strives to provide good value for tax dollars and works to enhance value for taxes by monitoring the efficiency and effectiveness of services. The challenge of the budget process is to meet the many and varied needs of residents and businesses at a cost that is reasonable to County taxpayers. The County of Simcoe s 2015 Budget four primary purposes are to: 1. Set out the program of services provided by the County, their purpose and planned costs; 2. Provide a method of controlling expenditures; 3. Forecast revenues and funding to support our services to the communities we serve; 4. Support and facilitate achievement of our long term plans and objectives. The County of Simcoe is organized into five major areas: Warden & CAO, Statutory & Cultural Services, Corporate Performance, Health & Emergency Services, Social & Community Services, Engineering, Planning & Environment. Each area includes departments covering specific service areas. How the Budget is developed The Strategic Plan is the focus that establishes the strategic directions for the budget. The budget review process separates: Base Budget Costs required to maintain existing service level Mandatory/Legislative Non discretionary costs imposed by others Carry Over Projects Costs from prior year commitments Growth Costs required to maintan existing levels of service for the increasing population New initiatives funded by development charge revenues, and assessment growth Enhancements New Services or enhanced service levels Funding to cover cost of providing these services depends on property taxes and growth in the assessment base that may lag the timing of expenditures Department Budgets Each department prepares an operational budget and a capital budget. Changes to operations, staffing complements and capital projects are supported by an expenditure form. All enhancements must support the County s strategic plan and each department s mandate. The budget process requires each department to meet with their Financial Controller and prepare a budget that ensures all relevant budgeting principles and application of 2015 Final Budget January 27, 2015 Page 13

15 Generally Accepted Accounting Principles (GAAP) are consistently applied. Executive Management then further reviews, challenges and assesses each proposal. Budget Documentation The budget document includes an and Department Budgets. The includes financial summaries on operating balance, staffing, capital assets and operational enhancements. The Department budgets outline each department s 2015 budget with associated revenues and expenditures, net operating balance, net capital requirement and the total department requirement. The County of Simcoe is required to balance the budget under the Municipal Act and not to plan for a deficit. The budget is prepared with a long term perspective to ensure affordability and equity to the residents Key Assumptions As a guideline, the following assumptions were used to develop the 2015 budget: 1. Salaries & Benefits are based on current contracts, non-union 1.5% COLA and performance of 1.0%. 2. General tax rate increase of 1.06% estimated at $1.4M 3. Assessment Growth increase of 1.5% estimated at $2.0M 4. 2% inflation factor for year over year operational cost increases 5. Negative development charge reserve balances will be replenished as future development charges receipts are received. Balance is forecasted to increase in 2015 due to the number of development charge eligible projects in the proposed budget. 6. Long Term Interest Rates are estimated at 4.0% and construction advances at 1.6% 7. Revenues from the Cities Barrie and Orillia are to be estimated based on the current cost sharing agreement 8. Caseload cost increase of 4.7% (3.7% caseload cost increase + 1% legislative client benefit increase) 2015 Final Budget January 27, 2015 Page 14

16 Next Steps Once reviews are completed, the proposed budget is presented to Committee of the Whole. The Committee of the Whole provides comments and direction to staff for any required adjustments. The Committee of the Whole refers the proposed budget to County Council with their recommendations for review and final approval. Date Committee Council October 30 th, 2014 Special budget meeting Committee of the Whole November 10 th, 2014 Committee of the Whole November 25 nd, 2014 County Council December 16 th, 2014 Special budget meeting Committee of the Whole January 6 th, 2015 Special budget meeting Committee of the Whole January 13 th, 2015 Committee of the Whole January 27 th, 2015 County Council Department Submission Finance Review Executive Management Review Committee of the Whole County Council 2015 Final Budget January 27, 2015 Page 15

17 Department Budgets Warden & CAO The Warden & CAO division consists of the Warden, Council, CAO, Customer Service and Communications departments. Fundraising activities are captured in the Warden s department with net proceeds from these events being transferred to a reserve. Customer Service provides residents of Simcoe County with a central point of contact to access services and programs. Corporate Communications manages both internal and external communications such as media relations, publications, newsletters and County of Simcoe branding. This area is responsible for implementing Council s decisions and strategic directions, provide leadership and advice on policies, programs and services and to ensure compliance with the Municipal Act. The draft 2015 budget includes an increase of $21K. Statutory & Cultural Services Statutory and Cultural Services division consists of the Clerk Department, Archives, Library and Museum. The primary role of the County Clerk is to perform the statutory duties assigned to the position by provincial legislation and County Council, as well as oversee a broad range of responsibilities related to the function of County Council. The Archives preserves and promotes Simcoe County's cultural and visible heritage as well as provides efficient permanent-records management services to the departments of the County of Simcoe. The Simcoe County Museum welcomes 30,000 visitors each year and offers a range of programs and activities that highlight the stories of the people and events that shaped our County. The Library Co-operative supplements and enhances the library services provided by its members to the residents of the County of Simcoe. The draft 2015 Statutory & Cultural Services budget includes a net departmental requirement of $3.6M compared to $3.7 in 2014, which is a decrease of $134K. Corporate Performance Corporate Performance division consists of the support functions: Finance, Information Technology, Human Resources and Procurement, Fleet & Property. These areas are responsible for the overall administration of the corporation and help enable and support the operating division s provision of services to the County. The draft 2015 Corporate Performance budget includes a net departmental requirement of $18.4M compared to $18.9M in 2014, which is a decrease of $517K Final Budget January 27, 2015 Page 16

18 Social & Community Services Ontario Works The Ontario Works program provides temporary financial and employment assistance to people in financial need. The draft 2015 Ontario Works budget includes a net departmental requirement of $3.5M compared to $4.1M in 2014, which is a decrease of $621K. The 2015 projected caseload is the same as the 2014 budgeted caseload. The cost sharing included in the overall municipal requirement for Ontario Works with the Cities of Barrie and Orillia will decrease. Based on the proposed budget, the City of Barrie s share is to decrease $618K and the City of Orillia s share is to decrease $213K. The County s portion will decrease $621K. The 2015 Ontario Works subsidies are proposed to increase from the 2014 budget by $4.9M, which is a result of increases in Ontario Works benefit subsidy, administration funding and employment support funding. The provincial cost sharing ratio for Ontario Works increases to 91.4% in 2015 from 88.6% in Beginning in 2010, the Province began phasing in the upload of the municipal portion of Ontario Works benefits (income and employment assistance) over nine years. The proposed impact of the 2015 upload is a reduction in municipal costs of $1.5M; County s share is $667K, the City of Barrie s share is $606K, and the City of Orillia s share is $187K. Cost of administration of this program continues to be funded 50:50. The following chart illustrates the percentage upload per year. Ontario Works Benefits Municipal On-Going Share Provincial Share 88.6% 91.4% 94.2% 97.2% 100.0% 100.0% % OW Benefit % Municipal Share 11.4% 8.6% 5.8% 2.8% 0.0% 0.0% Social Housing The County of Simcoe administers both mandated and non-mandated social housing programs which provide affordable housing to seniors, families and single individuals who require financial assistance. The Social Housing Department has two distinct areas of responsibility. The first area is the administration of non-profit housing, whereby the County issues subsidies to non-profit providers and ensures compliance with the Housing Services Act. The second area is the direct management of County owned public housing. The draft 2015 Social Housing Non-Profit budget includes a net departmental requirement of $11.1M compared to $10.2M in 2014, which is an increase of $840K Final Budget January 27, 2015 Page 17

19 The draft 2015 Simcoe County Housing Corporation budget includes a net departmental requirement of $3.6M compared to $3.9M in 2014, which is a decrease of $302K. During the 2014 strategic planning session County Council directed that $1.0M of the 2013 surplus be allocated to the Social Housing reserve for future Social Housing capital requirements. The 2015 proposed tangible capital asset budget is $5.4M of which $4.3M is for the Simcoe County Housing Corporation s Intensification build at 33 Brooks Street in Barrie. This expense will be funded 10% from the DOOR Reserve, with the remaining 90% to be cost shared with the Cities of Barrie and Orillia. The County s portion of this remaining expense will be funded by Development Charge Revenue. Total project cost is $11.6M This investment in Social Housing not only creates new social housing units, but it also makes improvements to the existing facility through accessibility, operating cost reductions and more energy efficient heating and plumbing systems. Exploring opportunities to increase the County owned housing supply is aligned with Council's strategic direction to develop a strategy to use current housing stock and future funding opportunities to create a more sustainable housing system. Health and Emergency Services Paramedic Services Paramedics provide land ambulance services at a Primary Care Paramedic (PCP) level of service with a required response time in addition to training programs, public education, Public Access Defibrillator and Advanced Care Paramedic programs. The draft 2015 Paramedic Services budget includes a net department requirement of $13.7M compared to $11.2M in 2014 which is an increase of $2.5M. The 2015 draft Capital budget for Paramedic Services includes: - 7 replacement ambulances, 2 rapid response unit replacements and 1 new ambulance - 23 power stretchers and 23 track stair chairs - Land purchases for Orillia and Collingwood new paramedic stations - Additional construction costs for the Alliston and Beeton stations - Replacement of 50% of the required defibrillators Long Term Care and Seniors Services Long Term Care provides effective, high quality, safe and efficient long term care services in a home-like setting for the clients and families. The draft 2015 Long Term Care budget includes a net department requirement of $2.9M compared to $2.4M in 2014, which is an increase of $440K Final Budget January 27, 2015 Page 18

20 The 2015 Long Term Care budget includes a net municipal requirement of $4.7M. The City of Barrie cost share is $923K, an increase of $93K. The City of Orillia cost share is $921K, an increase of $72K. The county s net department requirement is $2.9M. Engineering, Planning & Environment Transportation & Engineering The Transportation & Engineering Department delivers the operational, maintenance, and construction services required for the County's road and bridge system for the safe and efficient operation for the public, both at present and in the future. This is accomplished through the daily maintenance activities, an aggressive program of rehabilitation, and reconstruction of the road and bridge infrastructure, and through the application of effective traffic operation and planning principles. The department's goal is to ensure an acceptable level of service is maintained at all times. The department also provides engineering input for local and county planning issues related to transportation planning. The draft 2015 Transportation & Engineering-Construction budget includes a net department requirement of $16.1M compared to $14.1M in 2014, which is an increase of $2.0M. Simcoe County is a key growth area. The demand for growth is a major challenge facing the County transportation system. The key objective of the Transportation Master Plan is to create a future vision for transportation in the County of Simcoe. The vision includes identifying how cycling, transit and road components can service future transportation needs. In 2014 and 2015, an update to the Transportation Master Plan will be completed. The 2015 budget has been prepared to reflect the County s vision. Projects totaling $46.5M for road construction, intersection improvements and bridge construction have been identified. Funding for road projects include gas tax revenues totaling $8.0M which are being used for various roads rehabilitation and capital projects. In addition $5.2M in roads reserve are being used to fund priority projects. The 2015 plan utilizes approximately $25.4M of development charges. Development Charges projected to be received in 2015 are $13.8M. The draft 2015 Transportation & Engineering-Maintenance budget includes a net department requirement of $12.8M compared to $11.3M in 2013, which is an increase of $1.5M. Transportation & Engineering maintenance department is responsible for maintenance of approximately 850 kms of County roads, 200 bridges and structures and 50 major signalled intersections. Transportation & Engineering construction operations budget includes $6.2M for the rehabilitation, asphalt resurfacing and micro surfacing of various County roads Final Budget January 27, 2015 Page 19

21 Solid Waste Management The Solid Waste Management Department is divided into facility related activities and collections. Facilities include managing waste disposal facilities, monitoring site diversion projects (composting, electronics, tire programs etc.), maintaining environmental compliance for waste disposal facilities and future capacity planning. Collections includes contracts and collections for residential waste, curbside diversion projects, green bin program, blue box, special collections, waste auditing of collections and contractors and enforcement of waste management. The draft 2015 Solid Waste Management budget includes a net department requirement of $27.5M compared to $27.3M in 2014, which is an increase of $235K. In the 2015 budget, major waste diversion programs will continue to be staff s focus including exploration of additional reduce and reuse programs in addition to improving efficiencies and services. In 2010, County Council approved a comprehensive Solid Waste Management Strategy. The purpose of the Strategy is to provide direction for the County s waste management system, to make progress towards zero waste and to address processing and waste disposal needs for the next twenty years. Staff continues to be guided by the recommendations in the strategy. Solid Waste Management Capital requirements include the following: - Equipment replacement - Work at various sites to improve customer service and quality of our processed materials - Permanent Household Hazardous Waste buildings at the North Simcoe Transfer Station and Nottawasaga - Land purchases 2015 Final Budget January 27, 2015 Page 20

22 Risks & Opportunities The following risks and opportunities could impact our ability to achieve the budget as outlined. Risks Repayment of non-profit housing loans Future collective agreements, interest arbitration settlements and pay equity settlements Delays in regulatory approval and their impact on construction projects Delays in utility relocations and their impact on construction projects Delay of the Official Plan could result in reduction in development charge receipts and taxation revenues Unplanned initiatives requiring funding Landfill debt repayment to municipalities Development charge receipts not keeping pace to levels identified in Development Charge Study Opportunities Municipal partnerships to achieve economies of scale in common service areas Taking advantage of additional borrowing opportunities at historical low interest rates Official Plan approval resulting in future increases in development charge receipts and tax revenues Potential rebates received i.e. WSIB neer, Waste Diversion Ontario Realize market appreciation on County assets (i.e. housing, lands) Engage federal government to further support Affordable Housing Strategies 2015 Final Budget January 27, 2015 Page 21

23 Consolidated Financial Summary Operating Balance Gross expenditures in the operating budget are $363M. The 2015 Operating Budget maintains existing service levels and extends those services to the growing community while accommodating for inflationary impacts. Enhancements to service levels identified as desirable by Council have been incorporated into the budget as well. The Operating Budget for the County of Simcoe has been summarized into major revenues and expenditures categories below. County Council s strategic planning session provided direction for the development of the 2015 budget based on a tax rate increase of 1.06% and has been incorporated into the following statement. Exhibit Operating Budget 2015 Final Budget January 27, 2015 Page 22

24 Property Taxation Each year County Council is responsible for making tax policy decisions that are sensitive to local needs and priorities and which will ultimately shape the local property tax landscape. The decisions that must be made include: Tax ratios Tax rates Optional capping tools and recovery of capping costs Assessment valuations reflect changes in real estate market conditions, which are driven by economic factors, demographics etc. Generally, valuation reflects the impact of reassessment, which involves updating the current assessed value of properties to reflect a new, more recent effective valuation date. These types of assessment changes will not necessarily affect municipal revenue because tax rates must be restated; they will, however, affect the overall distribution of the tax burden among taxpayers as rates of valuation change do vary by class. This reflects the growth estimate that is contained in the budget. The County collects tax by providing a tax requisition to member municipalities who levy separate tax rates for County purposes. To raise the levy amount from member municipalities, the County sets tax ratios and tax rates. A 1.06% increase is approximately $1.4M in levy dollars. Approximate tax increase per residential property assessment is an example of how much the average property tax would increase based on every $100K of property assessment. For instance, if a property was assessed at $100K the County portion increase would be $3.23 for The following table illustrates the tax impact per $100K of a property s assessed value at the general tax increase of 2.0% for residents in the community. Approximate Tax Increase Per Residential Property Assessment County Tax Rate Increase % $ per $100,000 per $200,000 per $300, % $1.4M $ 3.23 $ 6.46 $ 9.69 Exhibit 6 - Approximate Tax Increase 2015 Final Budget January 27, 2015 Page 23

25 The 2015 Draft Tax Supported Budget, as presented, has a levy increase over 2014 of 3.06%. This takes into consideration estimated assessment growth of 1.5% in 2014 and shifts in weighted taxable assessments and the tax rate increase of 1.06%. The impact on the tax rate and the taxes paid by an individual property owners will vary depending on the property s new assessment applied by Municipal Property Assessment Corporation (MPAC) relative to the average assessment and to the 4 year phase-in provisions Levy Budget 2014 Levy Budget 136,113, Year End Growth 0.51% 690, Year End Levy 136,803, Growth Rate Assumption 1.50% 2014 Projected Growth 2,052,062 Subtotal 138,855,573 Property Tax Rate Increase Assumption 1.06% 2015 Property Tax Increase 1,471, Levy Base 140,327,442 Supplementary Taxes 2,195, Levy 142,522,442 Exhibit 7 Levy Budget Supplementary taxes are realized throughout 2015 resulting from growth related assessments that are not on the 2014 year end returned roll. The following table shows the impact on a typical residential property assessed at $200,000 before any adjustments as a result of the reassessment Budget Impact on a Residential Property Assessed at $200, Tax Rate 2014 Taxes 2015 Tax Rate 2015 Taxes $ Increase (Decrease) % Increase (Decrease) $ $ % Exhibit 8 Approx. Residential Property Impact 2015 Final Budget January 27, 2015 Page 24

26 Salaries and Benefits Salaries, wages and benefits have increased by $6.2M (or 5.3%) over the 2014 budget. The breakdown for the 2015 budget is as follows: 1. Compensation and benefit adjustments total $2.3M which is 1.8% of salaries (includes COLA, market adjustment, performance, benefits and union contracts) staff enhancements of 34.1 Full Time Equivalent (or 2.7% FTE over 2014 budget) equaling $3.5M. These costs are partially offset by provincial and municipal funding resulting in a net increase of $2.5M. 3. During 2014 County Council approved 5.8 FTE s totaling $414K Staffing Requirements The 2015 staffing requirements indicate the number of Full Time Equivalent (FTE) staff members required to deliver services to residents. An FTE is calculated by determining the total staffing hours required to provide the service and dividing this by a full time employee work hours. The County employs more than 1,650 full and part-time employees including seasonal staff which is higher due to the use of part-time and backfill requirements Budget Staffing Enhancements FTE'S By Department 2014 Budget 2014 Approved 2015 End of Contract 2015 Enhancements 2015 Net Change 2015 Budget Warden & CAO Warden & Council CAO Communications Customer Service Statutory & Cultural Clerk Services Archives Library Museum Corporate Performance Human Resources Information Technology Finance Procurement, Fleet & Property Health & Emergency Health & Emergency Services Services Emergency Management Long Term Care & Seniors Services Paramedic Services Social & Community Ontario Works Services Simcoe County Housing Corporation Social Housing Non-Profit Children & Community Services Engineering, Planning & Corporate Service Environment Transportation & Engineering Solid Waste Management Forestry & By-Law Planning, Economic Development Tourism Simcoe County TOTAL 1, ,309.5 Exhibit Staffing Requirements 2015 Final Budget January 27, 2015 Page 25

27 Staffing Enhancements Staffing enhancements are changes to the existing staff levels that are required to deliver services to residents. The chart below summarizes the staffing enhancements and costs related to each. Detailed staffing enhancements forms are included in the department budgets Staffing Enhancements Wages & Benefits Division Department Title # of FTE 2015 Gross Expenditures Wages & Benefits Net County Impact Warden & CAO Customer Service Representatives - Permanent , ,788 Customer Service Customer Service Representatives - Temporary , ,788 Corporate Performance Information Technology Supervisor Web Applications Position ,069 73,948 Human Resources Human Resources Associate ,500 48,351 Finance Senior Accounting Clerk - Health & Emergency Services ,000 58,812 Senior Accounting Clerk - Ontario Works & Children Services ,000 58,812 Procurement, Fleet Manager, Procurement and Sustainable Operations ,485 98,876 & Property Health & Emergency Coordinator, Research and Project Manager ,426 16,873 Services Long Term Care & Long Term Care Staffing - Housekeeping ,000 29,926 Seniors Services Personal Support Worker Hours ,000 39,946 Coordinator, Research and Project Manager ,703 58,533 Paramedic Services Paramedic Staffing - Enhancement ,127,634 1,453,113 Social & Community Services Simcoe County Housing Student - Temporary (Brooks Street) ,000 - Corporation Student - Temporary (Brooks Street) ,000 - Students ,170 35,632 Ontario Works Elgibility Review Officer - Temporary ,091 19,635 Elgibility Review Officer - Temporary ,441-18,403 Children & Community Program Supervisor - Policy and Research ,667 39,842 Services Local Immigration Partnership - Student - Temporary ,113 - Engineering, Planning & Environment Transportation & Labourer/Truck Driver and Seasonal Labourer/Truck Driver , ,200 Engineering Engineering Technician , ,800 Planning - Economic Development, Tourism Solid Waste Management Economic Development Officer ,200 87,200 Site Attendants ,900 83,900 Total 2015 Salary Enhancements 34.1 $3,533,291 $2,476,996 Exhibit Staffing Enhancements 2015 Final Budget January 27, 2015 Page 26

28 Operational Enhancements Operational enhancements are changes to the existing County of Simcoe programs, services and operations that are delivered to residents. Detailed operational enhancement sheets have been included in the budget book and are based on expenditures which commit the County for greater than one budget term or are greater than $50K. Operational enhancements describe expenditures that are either permanent or temporary that may be an annual expense in future years. Detailed operational enhancements are included in the department budgets Operating Enhancements Division Department Location Title Health & Emergency Services Social & Community Services 2015 Gross Expenditures Net County Impact Paramedic Services Barrie North Paramedic Station Barrie North Paramedic Station Relocation $150,000 $112,446 Ontario Works Ontario Works Barrie Ontario Works Satellite Office Barrie Ontario Works Satellite Office Equipment and Leasehold Improvements 3rd Floor $548,354 $129,566 Equipment and Leasehold Improvements 4th Floor $75,000 $17,721 Social Housing Non-Profit Administration Centre Provider Loans $2,769,756 $0 Engineering, Planning & Environmental Solid Waste Management Various Sites Solid Waste Management Strategy 5 Year Update $150,000 $150,000 Total 2015 Operating Enhancements $3,693,110 $409,733 Exhibit Operational Enhancements 2015 Final Budget January 27, 2015 Page 27

29 Operational Summary by Department Summarized on the following table is the 2015 operating budget requirement by department. Further details of each department requirements are available in the department budgets. Financial Information 2015 Budget 2014 Budget 2015 Budget to 2014 Budget Change $ 2015 Budget to 2014 Budget Change % Operating Category Total Operating Expenses County Impact Warden & Council 1,307,341 1,310,503 (3,162) -0.2% 1,096,081 CAO, Communications & Customer Service 2,384,294 2,419,542 (35,248) -1.5% 2,384,294 Total Warden & CAO 3,691,635 3,730,045 (38,410) -1.0% 3,480,375 Museum 1,926,975 2,054,180 (127,205) -6.2% 1,563,785 Library 675, ,020 2, % 595,811 Clerk 716, ,150 6, % 703,637 Archives 632, ,525 (45,279) -6.7% 580,556 Total Statutory & Cultural Services 3,950,369 4,112,875 (162,506) -4.0% 3,443,789 Human Resources 3,073,697 2,917, , % 3,073,697 Finance 3,474,802 3,375,516 99, % 3,420,802 Information Technology 6,747,488 6,669,629 77, % 6,694,087 Procurement, Fleet & Property 4,142,497 4,066,317 76, % 3,995,064 Total Corporate Performance 17,438,484 17,029, , % 17,183,650 Social Housing Non-Profit 24,528,566 25,476,472 (947,906) -3.7% 11,050,286 Children & Community Services 34,286,827 32,382,116 1,904, % 3,241,665 Ontario Works 83,814,282 80,383,968 3,430, % 3,451,698 Simcoe County Housing Corporation 13,730,037 14,225,250 (495,213) -3.5% 2,914,810 Total Social & Community Services 156,359, ,467,806 3,891, % 20,658,459 Long Term Care & Seniors Services 49,012,358 46,749,037 2,263, % 2,863,610 Paramedic Services 40,162,548 36,719,343 3,443, % 12,413,612 Emergency Management 591, ,388 (28,485) -4.6% 458,851 Total Health & Emergency Services 89,766,809 84,088,768 5,678, % 15,736,073 Transportation & Engineering - Maintenance 11,859,648 11,061, , % 11,504,648 Transportation & Engineering - Construction 8,993,070 11,161,745 (2,168,675) -19.4% 2,232,070 Solid Waste Management 44,156,498 43,597, , % 25,370,066 Forestry & By-Law 1,348,856 1,496,775 (147,919) -9.9% 157,356 Planning, Economic Development & Tourism 3,222,711 3,002, , % 2,997,211 Total Engineering, Planning & Environment 69,580,783 70,319,466 (738,683) -1.1% 42,261,351 General Municipal 22,585,182 24,682,956 (2,097,774) -8.5% 17,238,182 Total 363,372, ,430,974 6,942, % 120,001,879 Exhibit Operational Budget by Department 2015 Final Budget January 27, 2015 Page 28

30 Capital Capital Funding The net operating balance for the County of Simcoe is used to partially fund capital requirements for the current year. In addition capital is funded by reserves, development charge reserves, municipal partners and senior levels of government. Any shortfall is financed through various debt facilities. In 2015, the total financing requirement is $18.3M in unfinanced development charges. Capital Acquisition of 2015 Capital Assets 69,099 Proceeds: Reserves (11,496) Gas Tax (2,055) Development charge reserves (31,978) Federal and Provincial Grants (26) Barrie and Orillia (3,218) Total Funding for tangible capital assets (48,773) Operating Balance available for Capital (20,326) 2015 Budget Capital Funding Requirement 0 Financing Capital Plan 2015 Budget Capital Funding (000's) 2015 Development Charge Funding 13, Development Charge Expenditures (32,034) 2015 Development Charge Financing (18,264) Exhibit 13 Capital Funding The capital plan reflects council direction to condense major roads construction projects as much as possible in order to minimize the construction time impact on residents. The projects identified include CR90, CR50, CR17 and CR4 with related road, bridge and intersection components. This will increase capital expenditures over the next two years. The capital budget includes total projects worth $69.1M. This represents investment in the development and rehabilitation of capital infrastructure to support the provision of services to the citizens of Simcoe County. A significant portion of the capital program is to service growth in the expanding community while the balance of the budget is for the rehabilitation and/or replacement of existing infrastructure. Capital by department shown in exhibit 14, illustrates the capital acquisitions with corresponding funding for each asset. Total acquisitions equal $69.1M of which funding is provided by the following; operating balance of $20.3M, reserves $11.5M, development charge reserves of $32.0M, gas tax proceeds of $2.0M, the Cities of Barrie and Orillia $3.2M and other external sources of $25K Final Budget January 27, 2015 Page 29

31 The Corporation of the County of Simcoe 2015 Capital by Department Department Project Total Project Cost 2015 Budget Expense Gas Tax Development Charges Grants City of Barrie City of Orillia Reserves County Impact Total 277,405,713 69,098,980-2,055,000-31,978,123-25,440-2,576, ,638-11,496,025 20,325,626 Statutory & Cultural Services 257, , ,800 Museum 142,000 68,800 68,800 Alarm System Upgrade 20,000 20,000 20,000 Exterior Window Replacement & Wall Upgrades 122,000 48,800 48,800 Clerk 115,000 40,000 40,000 Agenda Management System - Phase 2 115,000 40,000 40,000 Corporate Performance 1,859,202 1,716, ,902 1,114,150 Procurement, Fleet & Property 832, , , ,000 Administration Centre Roof Replacement 336, , ,600 Window Replacement for East Wing Upper & Lower 265, , ,302 Council Chambers Window Glazing 50,000 50,000 50,000 Maintenance Van Compressed Natural Gas 46,000 46,000 46,000 Chamber Gallery Seat Replacement 90,000 90,000 90,000 UPS Battery Replacement 45,000 45,000 45,000 Information Technology 736, , ,150 Information Technology Infrastructure 250, , ,000 Service Request System Replacement 200, , ,000 Business Continuity 286, , ,150 Human Resources 290, , ,000 Employee Self Service Portal (HR) 120, , ,000 Learning Management System 170, , ,000 Health & Emergency Services 15,226,212 5,707,812-1,399,609-1,275, ,549-1,500,771 1,177,304 Long Term Care & Seniors Services 1,227,300 1,167,300-95,350-95, ,647 Sunset Manor Capital 200, ,000-13,814-13, ,379 Synergy Information Panels 165, ,500-11,211-11,205-83,084 Trillium Manor Capital 214, ,000-17,427-17, ,154 Synergy Food Management System 91,800 91,800-9,755-9,750-72,295 Simcoe Manor Capital 376, ,000-34,642-34, ,733 Sunset Village Capital 30,000 30,000-30,000 Simcoe Village Capital 70,000 70,000-70,000 Self Serve Web Based Shift Planning 50,000 50,000-5,313-5,311-39,376 Integrated Autodialer 30,000 30,000-3,188-3,186-23,626 Paramedic Services 13,998,912 4,540,512-1,399,609-1,180, , ,124 1,177,304 Emergency Response Unit Replacements 146, ,534-38,089-8, ,078 Power Stretchers 250, ,000-64,983-14, ,743 Ambulance Enhancement 130, ,156-79,655-33,832-7,431 9,238 Defibrillators 1,696, , ,527-48, , ,433 Track Stair Chairs 90,000 45,000-11,697-2,569 30,734 Ambulance Replacements 926, , ,702-52, ,442 Self Serve Web Based Shift Planning 50,000 50,000-12,997-2,855 34,148 Integrated Autodialer 30,000 30,000-7,798-1,713 20,489 Collingwood Paramedic Station - Land 2,252, ,000-73,762-31,192-6,852-8,194 Orillia - Property Purchase 3,660, , , ,960-34,258-40,979 Alliston - Paramedic Station 3,155,500 1,012, , ,182-57,810-56,265 Beeton - Paramedic Station 1,611, , ,145-99,270-21,805-18,686 Social & Community Services 50,880 50,880-25,440-10,518-2,900 12,022 Ontario Works 50,880 50,880-25,440-10,518-2,900 12,022 Equipment & Leasehold Improvements 3rd Floor 50,880 50,880-25,440-10,518-2,900 12,022 Note: Total Project cost includes the budgeted amounts for prior year budgets, 2015 and future years. Exhibit Capital List 2015 Final Budget January 27, 2015 Page 30

32 Department Project Total Project Cost 2015 Budget Expense Gas Tax Development Charges Grants City of Barrie City of Orillia Reserves County Impact Simcoe County Housing Corporation 12,811,735 5,435,076-2,635,062-1,290, , , ,062 Mechanical Enhancement - St Paul 180, ,000-31,192-6,852 81,957 Brooks Street Intensification Project 11,621,335 4,304,676-2,635, , , ,763 Interior Enhancement - Victoria St 35,000 35,000-9,098-1,998 23,904 Interior Enhancement - Blake St 40,000 40,000-10,397-2,284 27,319 Mechanical Enhancement - Maria St 140, ,000-36,391-7,993 95,616 Mechanical Enhancement - Sophia St 70,000 70,000-18,195-3,997 47,808 Mechanica Enhancement - Miller Park A 38,000 38,000-9,877-2,170 25,953 Building Envelope Enhancement - Blake St 246, ,000-63,944-14, ,968 42,043 Building Envelope Enhancement - Victoria St 120, ,000-31,192-6,852 81,957 Building Envelope Enhancement - Nelson St 59,400 59,400-15,440-3,392 40,568 Building Envelope Enhancement - Regent St 200, ,000-51,987-11, ,594 Exterior Enhancement - Sophia St 62,000 62,000-16,116-3,540 42,344 Engineering, Planning & Environment 247,200,684 56,080,360-2,055,000-27,943,452-8,814,620 17,267,288 Tourism Simcoe County 40,000 40,000 40,000 Tourism Van Replacement 40,000 40,000 40,000 Transportation & Engineering - Maintenance 9,808,230 5,786,230-2,521,107-2,038,523 1,226,600 New Maintenance Garage Construction 8,189,230 4,167,230-2,128,707-2,038,523 2 Plow Truck Enhancements 436, , ,400 43,600 Loader Replacement 185, , ,000 Road Grader Replacement 300, , ,000 Wheeled Excavator 250, , ,000 Pick-Up Truck Replacement - Midhurst 28,000 28,000 28,000 1-Ton Truck Replacement - Midhurst 47,000 47,000 47,000 Midhurst Garage Dome Roof Repairs 50,000 50,000 50,000 Mechanic's Service Truck Replacement - Beeton 47,000 47,000 47,000 Pick-Up Truck Replacement - Moonstone 28,000 28,000 28,000 Fuel System Upgrade 150, , ,000 Creemore Garage Dome Widening 42,000 42,000 42,000 Pick-Up Truck Replacement - Perkinsfield 28,000 28,000 28,000 Pick-Up Truck Replacement - Ramara 28,000 28,000 28,000 Transportation & Engineering - Construction 231,637,454 46,539,130-2,055,000-25,422,345-5,196,097 13,865,688 CR 50 29,873,596 7,115,236-5,834,494 1,280,742 RD 88 7,400,000 CR 10 2,195, , ,000 CR 4 - Phase I 5,455, , ,400 75,600 CR 21 - Phase I 9,091, , , ,000 CR 21 / CR 39 5,220,800 20,000-15,800 4,200 CR 27 / Mapleview 4,225,000 10,000-7,900 2,100 Bear Creek Bridge ,200, , , ,000 Collingwood Bridge ,530,000 1,920, , ,000 Vigo Bridge ,886, , , ,500 RD 43 / Wilson 3,455, , ,800 27,200 Alliston Bridge ,314, , , ,500 Old Townline Bridge ,012,200 75,000-37,500 37,500 Willow Creek Bridge 4,123, , , , ,244 CR 90 / Base Borden 4,385,000 3,792,500-1,896,250-1,896,250 CR 34 / 19 1,700, , ,000 36,000 CR 27 / 5th Line BWG 5,325, , , ,093 Baxter Bridge ,106,230 1,926,230-1,926,230 Wye River North Bridge ,474,360 20,000 20,000 RDS - Culvert 201 Wilson Rd Repl & Widen 1,446,000 1,106, , ,000 RDS - Signalization Improvements 670,000 55,000 55,000 CR 22 - Truck Lane Phase I 8,446,800 80,000-40,000 40,000 Overage Drainage Canal ,919,600 25,000-12,500 12,500 Thunder Bridge ,471,440 20,000 20,000 Williams Bridge ,256,000 50,000 50,000 Holland River Bridge ,850,000 50,000-25,000 25,000 CR 21 / 5TH SR 5,175, , , ,700 CR 90 / King Street 1,930,400 1,805,400-1,805,400 CR 88 / 5th SR 3,990, , ,000 42,000 CP Bridge ,029,000 5,000-2,500 2,500 CR 17 - Phase I 3,046,200 2,480,200-1,114,461 1,365,739 Bear Creek Culvert # ,478,200 1,473, , ,600 Bear Creek Culvert # , , , ,500 CR 21 / CR 4 5,110, , , ,800 CR 4 / Innisfil 4th (Churchill) 2,805,800 50,000-39,500 10,500 CR 4 / Innisfil 9th 2,182,584 80,000-63,200 16,800 CR 50 to CR 14 1,131, , , ,268 Exhibit Capital List 2015 Final Budget January 27, 2015 Page 31

33 2015 Final Budget January 27, 2015 Page 32 Department Project Total Project Cost 2015 Budget Expense Gas Tax Development Charges Grants City of Barrie City of Orillia Reserves County Impact Transportation & Engineering - Construction (continued) Elliot Bridge ,798,400 5,894,200-2,947,100 2,947,100 Walkers Creek Culvert ,018, , ,000 CR 90 - Phase II 10,573,400 7,044,300-5,846,769 1,197,531 Matheson Creek Bridge ,445, , ,000 CR 90 - Phase III 12,725, , ,580 89,420 CR 90 - Phase IV 12,735, , ,000 51,000 CR 90 - Phase V 2,916,880 1,265,000-1,049, ,050 Con 7/8, Lot 17 Culvert ,318,320 50,000-25,000 25,000 Wye River South Bridge ,484,000 75,000 75,000 CR 17 - Phase II 2,880, , ,000 CR 17 - Phase III 2,880, , ,000 CR 17 - Phase IV 2,880, , ,000 CR 15 - Victoria St to Allist Bdry 3,256, , ,000 Solid Waste Management 7,680,000 3,080, ,000 2,100,000 Land Purchases, SSTS, CAZ Purchases 4,000, , ,000 Paving Diversion Areas Various Sites 900, , ,000 Household Hazardous Waste Buildings - Site 10 & 24 1,020, , ,000 Highway Tractor & 3 Walking Floor Trailers 665, , ,000 Landfill Compactor Wheel Replacement 89,000 89,000 89,000 Front End Wheel Loader 365, , ,000 New Diversion Program Development 340, , ,000 Loader Broom Attachment 24,000 24,000 24,000 Pick-Up Truck Replacement 40,000 40,000 40,000 Skid Steer 22,000 22,000 22,000 Site 2 (Collingwood) Force Main to Mountain Rd 180, , ,000 Site 13 Cardbard Compactor Replacement 35,000 35,000 35,000 Forestry & By-Law 5,435, , ,000 35,000 By-Law Truck Replacement 35,000 35,000 35,000 Forestry Land Purchase 5,400, , ,000 Exhibit Capital List

34 2015 Final Budget January 27, 2015 Page 33 Reserves Under the Municipal Act, Council has the authority to establish reserves as required. Reserves and reserve funds can be formed to meet specific liabilities such as replacement/rehabilitation or acquisition of capital assets Projected Reserves Reserves 2015 Available Funds 2015 Budget Transfer To Reserves Operating 2015 Transfer Budget From Reserves Operating 2015 Transfer Budget From Reserves Capital 2015 Budget Year End Balance Archives Contingency Reserve 136,383 1, ,583 Museum Contingency Reserve 36,813 74, ,813 Forestry Reserve 6,207, , ,000 5,888,075 Homes Contingency Reserve 2,262, , , ,645 1,634,091 General Contingency Reserve 4,169, , ,000 4,090,693 Social Services Reserve 879, ,588 Simcoe Village Reserve 131,137 25,514 15,000 70,000 71,651 Roads Contingency Reserve 9,410, ,000 7,234,620 1,575,982 Paramedic Contingency Reserve 1,455, , ,125 1,031,650 Administration Building Contingency Reserve 1,016, , , ,870 Tourism Simcoe 81,725 81,725 Social Housing Reserve 4,349,585 2,648,344 1,034, ,968 5,837,246 Waste Management Contingency Reserve 12,365,177 2,863, , ,000 13,581,177 Sunset Village Reserve 313,647 27, ,909 Harriet Reserve 4,514 4,514 Economic Development & Planning 2,276,696 10,000 2,286,696 Total Reserves 45,098,036 6,672,326 2,809,839 10,843,260 38,117,263 Reserves Funds 2015 Available Funds 2015 Budget Transfer To Reserves Operating 2015 Transfer Budget From Reserves Operating 2015 Transfer Budget From Reserves Capital 2015 Budget Year End Balance Georgian Manor Donations 57,650 50,000 5, ,650 Georgian Village Suites - Residents 2,819 41,509 44,328 Georgian Village Suites - 284, ,755 Georgian Village Homes - Residents ,708 13,421 Georgian Village Homes - 1,866 1,866 Simcoe Manor Donations 49,663 50,000 5,000 50,000 44,663 Sunset Manor Donations 46,613 50,000 14,000 50,000 32,613 Trillium Manor Donations 46,444 50,000 16,553 50,000 29,891 Simcoe Village Donations 2,215 2,215 Sunset Village Replacement - Residents 307,247 17,000 30, ,247 Alcona Development 522, ,200 Hospital Reserve 6,908,138 3,000,000 3,000,000 6,908,138 Social Housing - DOOR 1,079, , ,667 Total Reserves Funds 9,023,133 3,540,838 3,057, ,763 8,873,655 Trust Funds 2015 Available Funds 2015 Budget Transfer To Reserves 2015 Transfer Budget From Reserves 2015 Transfer Budget From Reserves Capital 2015 Budget Year End Balance Homes for the Aged Residents - 0 Estate of S.O. Bain 138,182 2,000 5, ,182 Estate of H.P. Brown 465,160 6,000 15, ,160 Ross Channen Memorial Fund 7,018 7,018 Honor Guard 19,498 2,500 21,998 Total Trust Funds 629,858 2,500 8,000 20, ,358 Grand Total 54,751,027 10,215,664 5,875,392 11,496,023 47,595,276 Exhibit Reserve Summary

35 2015 Final Budget January 27, 2015 Page 34 Development Charge Reserves Development Charges are collected to recover the growth-related capital costs associated with residential and non-residential development that create the need for capital. As the majority of the County s capital expenditures are growth related, development charges are a major source of financing for the capital plan. The balance of the source of financing for the County s capital plan includes tax levy, reserves and provincial subsidies. A background study of the current development charge by-law occurred early in Process reviews were conducted to ensure stakeholders understand the methods and assumptions used in determining the development charge rates. This process helps to ensure stakeholders understand the infrastructure needs, associated costs, methods and address any concerns. The County of Simcoe s current Development Charge by-law was effective September 1, ,000 12,000 Development Charge Receipts (000's) 10,000 8,000 6,000 4,000 2,000 7,014 9,956 10,631 6,897 6,773 11,100 13,455 13,500 13, Forecast 2015 Budget Exhibit 16 - Development Charge Receipts In addition, the Development Charge Act, 1997 and other legislation require that municipalities maintain specific reserves. Such reserves include development charge deferred revenue. Development Charge reserves have been advanced resulting in development charge unfinanced capital. In 2015 unfinanced development charges are proposed to increase by $18.3M, resulting in a year end unfinanced development charges of $51M Projected Development Charge Reserves Obligatory Reserves Funds 2015 Available Funds 2015 Budget Transfer To Reserves Operating 2015 Transfer Budget From Reserves Operating 2015 Transfer Budget From Reserves Capital 2015 Budget Year End Balance Library Development Charge Reserve 56,305 30,363 55,800 30,868 Paramedic Development Charge Reserve (1,897,697) 181,040 1,399,609 (3,116,266) Long Term Care Development Charge Reserve (12,937,658) 1,131,944 (11,805,714) Social Housing Development Charge Reserve 357, ,073 2,635,062 (1,903,017) Public Works Development Charge Reserve (563,513) 321,460 (242,053) General Government Development Charge Reserve 53,962 78, ,974 Roads & Related Development Charge Reserve (18,213,665) 11,653,108 27,943,452 (34,504,009) Total Obligatory Reserves Funds (33,144,294) 13,770,000 55,800 31,978,123 (51,408,217) Exhibit 17- Development Charge Reserves

36 2015 Final Budget January 27, 2015 Page 35 Cash Flow The following exhibit shows the estimated operational cash flow for In order to balance operations, $8.3 in short term financing will be required due to development charge receipts continuing to lag development charge expenditures. Other funds are held separately and may be used for cash management and emergency cash purposes. Category 2015 Budget $ 2015 Cash Flow $ in millions CASH - BEGINNING OF YEAR 17.1 SOURCES FROM OPERATIONS Operating Revenue Capital Revenue 5.3 Development Charge Receipts 13.8 USES FOR OPERATIONS Operating Expenses (353.2) Capital Expenditures (69.1) NET CASH FROM OPERATIONS (25.4) FINANCING SOURCES / USES New Short Term Financing 8.3 Accelerated Debt Payments 0.0 CASH - END OF YEAR (0.0) Exhibit 18- Cash Flow

37 2015 Final Budget January 27, 2015 Page 36 Debt Financing Section 401 of the Municipal Act grants Council the authority to issue debentures, when deemed in the best interest of the taxpayers, to finance its own capital expenditures. Best Interest for the County of Simcoe will be consistent with the County s Strategic Directions which includes fiscal management that contains both financial principles and policies. This philosophy is also reflected in the County of Simcoe s capital financing and debt policy as approved by Council in September 2011 where the following key objectives were set out: Adhere to statutory requirements Ensure long term financial flexibility Limit financial risk exposure Minimize long term cost of financing Match term of financing to the useful life of the related asset A municipality may only issue new debentures provided that the projected financial charges related to the outstanding debt will be within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing (MMAH). This limit is set at 25% of a municipality s own source revenues less debt charges and financial commitments. The total principal and interest payments in 2015 are $7.0M with an estimated 2015 year end debt balance of $185.2M as shown below. Principal & Interest Payments Estimated Balance Debt Type Total P&I Principal Interest Year End 2015 Short Term Debt $0.5M - $0.5M $ 38.5M Roads Debenture $1.1M $0.9M $0.2M $ 5.2M Simcoe County Housing Corporation $2.1M $1.4M $0.7M $ 14.1M Landfill Debt Payment to Municipalities $0.6M $0.6M - $ 7.9M Unfinanced Capital $2.7M $1.1M $1.6M $119.5M Total $7.0M $4.0M $3.0M $185.2M Exhibit Debt Schedule The County has a current debt service capacity of $31.9 million available per year for payments relating to debt and financial obligations under provincial guidelines based on the 2012 Financial Information Return. The additional long term borrowing which the County of Simcoe could undertake over a 5 year, 10 year, 15 year and 20 year period is illustrated below at 5% interest rate, for information purposes only. Period Maximum $ Long Term borrowing 5% annual interest 20 years $397.8 million 15 years $331.3 million 10 years $246.5 million 5 years $138.2 million

38 2015 Final Budget January 27, 2015 Page 37 Cities of Barrie and Orillia Summary The Cities of Barrie and Orillia share costs for Health & Emergency Services and Social & Community Services divisions. Departments included are: Simcoe County Housing Corporation, Social Housing Non-Profit, Long Term Care & Seniors Services, Paramedic Services, Ontario Works, Children & Community Services. Exhibit 20 and 21 outline their 2015 budgeted cost sharing contributions Budget City of Barrie Operating Budget Summary 2015 Budget $ 2014 Budget $ 2015 Budget to 2014 Budget Change $ 2015 Budg et to 2014 Budget Change % Health & Emergency Services 6, , % Long Term Care & Seniors Services % Paramedic Services 5, , % Social & Community Services 12, , % Children & Community Services 2, , % Ontario Works 5, , % Social Housing Non-Profit 3, , % Simcoe County Housing Corporation 1, , % Cultural Services % Museum % Archives % Total Operating 19, , % Total Capital 2, , Total Municipal Share 22, , % Capital Budget Summary 2015 Budget $ 2014 Budget $ 2015 Budget to 2014 Budget Change $ Long Term Care Building Enhancements 37.2 Equipment 54.4 Land Improvements 3.8 Paramedic Services 1, , Vehicles Equipment Collingwood Paramedic Station 31.2 Orillia Paramedic Station Alliston Paramedic Station Beeton Paramedic Station 99.3 Ontario Works Leasehold Improvements 10.5 Simcoe County Housing Corporation 1, , Brooks Street Intensification Project Building Enhancements Total Capital 2, , Exhibit 20 - City of Barrie Shared Services

39 2015 Final Budget January 27, 2015 Page Budget City of Orillia Operating Budget Summary 2015 Budget ($ 000's) 2014 Budget ($ 000's) 2015 Budget to 2014 Budget Change ($000's) 2015 Budg et to 2014 Budget Change % Health & Emergency Services 2, , % Long Term Care & Seniors Services % Paramedic Services 1, , % Social & Community Services 3, , % Children & Community Services % Ontario Works 1, , % Social Housing Non-Profit % Simcoe County Housing Corporation % Total Operating 5, , % Total Capital Total Municipal Share 6, , % Capital Budget Summary 2015 Budget ($ 000's) 2014 Budget ($ 000's) 2015 Budget to 2014 Budget Change ($000's) Health & Emergency Services 306,735 Long Term Care Building Enhancements 37.2 Equipment 54.4 Land Improvements 3.8 Paramedics Vehicles 68.7 Equipment 69.9 Collingwood Paramedic Station 6.9 Orillia Paramedic Station 34.3 Alliston Paramedic Station 57.8 Beeton Paramedic Station 21.8 Ontario Works Leasehold Improvements 2.9 Simcoe County Housing Corporation Brooks Street Intensification Project Building Enhancements 64.5 Total Capital % Exhibit 21 - City of Orillia Shared Services

40 2015 Final Budget January 27, 2015 Page 39 Budget and the Strategic Plan Long-range planning is one of the most powerful tools the County has available to help make informed decisions to ensure the County s future vitality and economic stability. The long term plan identifies and analyzes current and future events and their effect on the County s short and long-range goals and objectives. Building upon these efforts, the 2015 budget and long financial plan will refer to some of the major issues facing the County of Simcoe. The budgeting process is an integral component of the cycle of planning, budgeting, forecasting and measuring our activities and results. The foundations of these forward looking processes are the County s strategic objectives and long term business plan. By remaining focused on these strategic initiatives we ensure that the Corporation s plans, budgets, and forecasts reflect the actions and activities necessary to achieve our strategic objectives and targets. The County of Simcoe updates the strategic plan and long term financial plan annually which serves as a framework by which County departments, agencies and other municipal partners can align their goals and strategies, thereby making budgetary decisions more consistent, sustainable and transparent. The budget is a subset of these long term plans that encompasses directed and approved service levels, capital projects, debt levels and revenue sources. Strategic Planning Cycle Strategic Planning Process 1. Develop core Values 2. Define a Mission statement 3. Outline a Vision statement 4. Determine Strategic Directions 5. Identify Actions,Responsibilities & Resources 6. Measure results 7. Modify plans in response to the environment Exhibit 22 - Strategic Planning Cycle

41 2015 Final Budget January 27, 2015 Page 40 A well developed strategic plan reflects the strategic nature of the planning process at the County of Simcoe. Several master plans drive the development of the strategic plan. Included are: - County s Strategic Plan - Growth Management Strategy - Solid Waste Management Plan - Transportation Master Plan - Economic Development Strategic Plan Long Term Financial Plan Rehabilitation /Replacement Costs required for ongoing maintenance or replacement of existing assets Growth/ Expansion Costs required to maintain existing levels of service for the County s increase population Improvement/ Enhancement Expenditures that increase the level of quality of service currently provided Growth continues to be a primary driver of the 2015 budget and Long Term Financial Plan with majority of projects targeted for new capital infrastructure to address capacity and development demands. However, increased emphasis is being placed on maintaining the County of Simcoe s infrastructure and providing for its eventual replacement. As part of the Strategic plan annual review, the long term financial plan is established with this in mind.

42 2015 Final Budget January 27, 2015 Page 41 Long Term Financial Plan Projection As part of the strategic planning process, the annual budget becomes the base year for the 10 year long term financial plan. Debt or alternative funding for major capital projects allows Council to proactively complete much needed projects. As major capital projects are completed, there will be an increased requirement for debt serving that will affect the operating balance. The 2015 budget plus the next four years of the ten year long term financial plan has been included to allow Council to better understand what financial requirements exist and what resources are available. By focusing on the long term, Council will ensure that the County will continue to be in a strong financial position and can finance public services on an on-going basis. Financial Information 2015 Budget Long Term Plan Category $ Operating Summary OPERATING REVENUES Subsidies -166,995, ,485, ,056, ,962, ,888, ,035,407 Municipal Billings -25,243,308-25,324,385-25,126,920-24,060,053-24,205,785-23,078,850 County Levy -142,522, ,727, ,727, ,903, ,262, ,810,271 User Fees -38,217,587-38,880,500-39,873,576-40,408,427-41,267,206-41,968,161 Miscellaneous Income -4,788,255-4,031,628-4,107,985-4,185,868-4,065,310-4,146,341 Transfer From Reserve -5,931,192-7,134,926-11,862,304-10,995,716-12,119,625-8,443,202 TOTAL REVENUE -383,698, ,584, ,754, ,516, ,808, ,482,231 OPERATING EXPENSES Client Benefit 121,461, ,307, ,625, ,150, ,578, ,418,972 Salaries 124,127, ,753, ,702, ,535, ,156, ,055,724 Administration 23,940,891 23,820,382 24,082,497 24,339,133 24,960,469 25,094,841 Facilities 23,910,104 25,238,121 26,377,236 25,609,837 26,743,179 26,324,887 Cost of Service Delivery 59,717,153 59,178,556 64,248,476 65,041,533 65,876,652 66,875,784 Transfer To Reserve 10,215,664 9,729,056 9,943,960 9,855,380 9,778,168 9,825,331 TOTAL EXPENSES 363,372, ,026, ,980, ,532, ,093, ,595,538 TOTAL OPERATING BALANCE -20,325,629-23,557,573-26,774,121-30,983,311-34,715,561-37,886,692 Exhibit Operating Balance Outlook

43 2015 Final Budget January 27, 2015 Page 42 Long Term Capital Plan Projection The 2015 capital budget plus projected capital expenditures for the next 4 years is presented below. Financial Information 2015 Budget Long Term Plan $ in millions $ Capital Summary Transportation & Engineering - Construction Transportation & Engineering - Maintenance Solid Waste Management Paramedic Services Long Term Care and Seniors Services Simcoe County Housing Corporation Other Departments TOTAL Exhibit Capital Plan Projection Long Term Cash Flow Projection Exhibit 25 provides a forecast of the County s cash flow for the next 5 years Budget Long Term Plan Category $ Cash Flow $ in millions CASH - BEGINNING OF YEAR (0.0) (0.1) SOURCES FROM OPERATIONS Operating Revenue Capital Revenue Development Charge Receipts USES FOR OPERATIONS Operating Expenses (353.2) (349.3) (361.0) (365.7) (373.3) (374.8) Capital Expenditures (69.1) (76.3) (70.2) (50.7) (49.5) (41.2) NET CASH FROM OPERATIONS (25.4) (27.1) (17.8) FINANCING SOURCES / USES New Short Term Financing Accelerated Debt Payments (5.0) CASH - END OF YEAR (0.0) (0.0) (0.1) Exhibit Cash Flow Projection

44 2015 Final Budget January 27, 2015 Page 43 Long Term Debt Financing Projection Increased infrastructure needs to service the growing population especially relating to facilities, roads, bridges and solid waste management. Each of these will continue to have an impact on debt financing requirements over the next few years. Exhibit 26 details the possible total annual accumulated debt projection resulting from the Ten Year Capital Plan which has been revised based on the draft 2015 budget. Future years assume annual operating balances are used to retire debt and unfinanced capital $222.4 $219.6 $208.2 Possible Accumulated Debt (in millions ) $191.6 $185.2 $215.8 $213.0 $201.8 $187.9 $182.2 $ $157.8 $ $126.0 $105.5 $108.9 $ $44.5 $58.0 LTFP 2014 $34.5 Budget Exhibit Possible Accumulated Debt Projection

45 2015 Final Budget January 27, 2015 Page 44 Strategic Management Process The County of Simcoe has embarked on a strategic management process which includes: 1. Strategic planning 2. Long-term financial planning 3. Budget development and management 4. Performance improvement projects The Strategic planning process will guide the County s direction over the next several years and set out in broad terms, how it is going to get there. It will prepare a framework for future decisions, allowing the County to take advantage of opportunities as they arise. It is an integral part of the County s responsibilities to its community and is the cornerstone of effective public management. The Strategic Directions have been incorporated as guiding principles in the day to day operations of County services. Strategic Plan in Action serves: As a document which links the Strategic Plan and the Department Business Plans As a management tool that is updated through-out the year to keep the County focused on the goals outlined in the Strategic Plan To communicate strategies and initiatives to ensure commitment and smooth implementation Exhibit 27 - Strategic Management Phases The Strategic Plan Cycle framework consists of: Year 1 Establish a Strategic Plan for the term of Council and provide a Council update and review Year 2 3 Strategic Plan term of Council update and review, Strategies and Initiatives reaffirmed by Council Year 4 Review the Strategic Plan for the term of Council, current services and projects reaffirmed, Acknowledgement of Accomplishments The County of Simcoe s 2015 budget objective supports the County s vision, mission and strategic directions and priorities. Highlights found in departmental budgets can be linked to the Strategic Plan.