2018 PRELIMINARY BUDGET April 16, 2018 Public Budget Review

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1 2018 PRELIMINARY BUDGET April 16, 2018 Public Budget Review 1

2 Fire and Emergency Services Public Facilities, Arenas, Parks and Recreation Garbage Collection and Landfill Water, Wastewater Services Cemetery Services Roads and Public Works Building, Planning and By-law Services Blue Flag Beach and Marina Communities in Bloom Heritage Committee 2

3 Library (County programs in 3 Bluewater locations) Huron County Health Unit (Huron County) Social Services/Social Housing (Huron County) Planning and Economic Development (County) Policing (Ontario Provincial Police) Watershed Protection (Ausable Bayfield Conservation Authority) Education Services provided by the area School Boards 3

4 In the 2018 Budget we have included costs for the Source Water Protection Act. The 2018 Budget for the Conservation Authority shows an overall decrease of 0.10% over The net change in the 2018 budget amount of $ translates to a 0% on our municipal levy. 4

5 The Municipality has no control over policing costs which is a service funded through the levy under the Protective Services Department. In 2014 the Ministry developed a new funding formula with 2015 being the first year of its application. The increase to costs were phased in over 5 years at which time our policing will cost us the calculated cost per property was the first year, Bluewater did not have a capped increase in the per property costs. 5

6 The 2017 O.P.P. billing amount was $1,473,720 an increase of $286,376 (24.12%) over policing costs are estimated at $1,534,897 which is an increase of $61,177. Given that the 2017 Levy was $7,025,023 this increase in policing costs equates to a 0.81% increase to the current year levy. 6

7 Tax Rate: The rate applied to a property assessment to determine annual tax amount. Assessment Growth: The increase in the assessment tax base in a given year as a result of new assessment added to the roll from in-year property improvements. (2017 =1.00%) 7

8 Reassessment Growth: The increase in the assessment tax base resulting from reassessment. That is, the base year is updated every 4 years with increases phased in over the period. Decreases are effective the first year. Current Value Assessment: The total assessment for all tax classes for a tax year. The annual change in CVA incorporates assessment growth and reassessment growth. (2017 to 2018 = 8.73%) 8

9 Department PROJECTED 2018 DRAFT DOLLAR PERCENT Revenue Fund BUDGET ACTUALS VARIANCE BUDGET CHANGE CHANGE Members of Council (130,986) (126,731) 4,255 (133,283) (2,297) 0 General Government 7,864,494 8,037, , ,154 (7,595,340) (1) Fire (659,843) (767,458) (107,615) (669,519) (9,676) 0 Protection to Persons (1,796,360) (1,753,007) 43,353 (1,879,236) (82,876) 0 Roads (2,853,263) (3,719,576) (866,313) (2,663,969) 189,294 (0) Fleet (153,177) (635,543) (482,366) 28, ,321 (1) Marina (7,717) (6,592) 1,125 (6,344) 1,373 (0) Environment (428,802) (339,331) 89,471 (561,968) (133,166) 0 Cemeteries (19,210) (25,070) (5,860) (41,219) (22,009) 1 Rec & Park (1,416,236) (1,631,420) (215,184) (1,638,105) (221,869) 0 Planning & Culture (398,900) (391,577) 7,323 (400,514) 1,613 (0) Current Taxation surplus (deficit) (0) (1,358,356) (1,358,356) (7,696,859) (7,693,632) Back out depreciation 1,370,090 11,734 reduced by 5k to CIP Self-funding Operations: Streetlights Water Sewer 0 (0) (0) Current surplus (deficit) (0) (1,358,356) (1,358,356) Surplus (deficit) for Utilities: ,696, Funding requirements -7,596, Levy 100, Levy Change 1.32% Growth Rate 1.00% Net tax impact: 0.32% Non-discretionary + CPI

10 2018 Tax Rate Calculation 2018 Weighted Municipal Municipal Class RTC/Q 2018 CVA Ratio CVA Tax Rate Current Taxes Residential RT 1,321,620, ,321,620, $6,170, Residential Farmland R1 1,478, , $1, Multi-Residential MT 7,322, ,054, $37, Commercial CT 81,519, ,671, $418, Commercial_New Construction XT 5,923, ,515, $30, Excess CU 847, , $3, Vacant CX 610, , $2, Industrial IT 4,339, ,773, $22, Industrial_New Construction JT 11,058, ,164, $56, Excess_New Construction JU 91, , $ Excess IU 44, , $ Vacant IX 624, , $2, Large Industrial LT $0.00 Pipeline PT 7,584, ,309, $24, Farmlands FT 788,466, ,116, $920, Managed Forest TT 4,451, ,112, $5, ,235,983,562 1,648,417,005 $7,696,

11 MUNICIPALITY OF BLUEWATER BUDGET SUMMARY FOR 2018 The Municipality of Bluewater's PRELIMINARY 2018 budget, represents proposed net expenditures in the amount of $ 7,696,859 This represents a 1.32% change from the 2017 levy collected through taxation of $7,596,580. The Bluewater Current Value Assessment (CVA) for taxation purposes for 2018 increased over the 2017 CVA for taxation purposes by 20,564,977 due to growth in the municipality or 1.00% The 2017 CVA was 2,056,497,684 and the 2018 CVA is 2,235,983,562 for taxation purposes. The increase from 2017 CVA to 2018 CVA is approximately 8.73% The tax ratios remain unchanged for the 2018 taxation year. The County of Huron sets these ratios as the upper tier municipality. We have updated the Huron County and the Education Tax rates for For $100,000 of assessment on a residential property, the amount of taxes for the year 2018 changes to $ 1, from $ 1, in The municipal portion moves from $ to $ This is a -3.85% change in the municipal portion and an overall change of -3.84% in total taxes. Year Bluewater County School Board Total Taxes 2017 $ $ $ $ 1, $ $ $ $ 1, Difference $ (18.69) $ (16.90) $ (9.00) $ (44.59) % increase/decrease -3.85% -3.41% -5.03% -3.84% 11

12 MUNICIPALITY OF BLUEWATER BUDGET SUMMARY FOR 2018 SHOWING IMPACT ON AVERAGE RESIDENTIAL ASSESSMENT The Municipality of Bluewater's PRELIMINARY 2018 budget, represents proposed net expenditures in the amount of $ 7,696,859 This represents a 1.32% change from the 2017 levy collected through taxation of $7,596,580. The Bluewater Current Value Assessment (CVA) for taxation purposes for 2018 increased over the 2016 CVA for taxation purposes by 20,564,977 due to growth in the municipality or 1.00% The 2017 CVA was 2,056,497,684 and the 2017 CVA is 2,235,983,562 for taxation purposes. The increase from 2017 CVA to 2018 CVA is approximately 8.73% The tax ratios remain unchanged for the 2018 taxation year. The County of Huron sets these ratios as the upper tier municipality. We have updated the Huron County and Education Tax rates for For $267,341 of assessment as the average residential property, the amount of taxes for the year 2018 changes to $ 2, from $ 3, in The municipal portion moves from $1, to $ 1, This is a -3.85% change in the municipal portion and an overall change of -3.84% in total taxes. Year Bluewater County School Board Total Taxes $286,000 average for 2017 $ 1, $ 1, $ $ 3, $267,341 average for 2018 $ 1, $ 1, $ $ 2, Difference $ (49.96) $ (45.18) $ (24.06) $ (119.20) % increase/decrease -3.85% -3.41% -5.03% -3.84% These larger decreases are a result of the average RT assessment decreasing by $18,659. Note: Rate The 2018 Notional or revenue neutral rate for Bluewater is: increase to notional rate The current proposed tax rate for Bluewater is: % increase to 2017 tax rate The change in the levy is skewed by the increase in CVA for taxation purposes. 12

13 2018 Taxes by Class $6,172, $37, $454, $81, $0.00 $24, $920, $5,

14 Difference Difference Tax Class Levy Levy % % $ % Residential $6,195, $6,172, % % -$23, % Multi-Residential $38, $37, % % -$1, % Commercial $450, $454, % % $4, % Industrial $80, $81, % % $1, % Large Industrial $0.00 $ % % $ % Pipeline $24, $24, % % -$ % Farmlands $802, $920, % % $118, % Managed Forest $4, $5, % % $ % $7,596, $7,696, % 100% $100, % 14

15 15

16 61,177 ( 303 ) 2018 Levy Increase to Policing Costs Increase to Conservation Costs 7,696,859 16

17 Bluewater receives annual contribution of $350, Council Policy allocates funding: 10% to community grant requests; 60% to current year projects; 30% to future sustainability. 17

18 60% of Annual Amount to apply for current Projects: $ 210, Balance of unallocated 10% per resolution: $ 16, Total 2018 amount eligible to distribute: $ 226, Items to consider for funding: Approved Full Amount Amount Staff Training: $ 49, $ 49, CIB - Self-watering Planters: $ 11, $ 11, Blue Flag - Main Beach Safety Audit $ 2, $ 2, Bayfield River Valley Trail Association: Cash donation plus in-kind (trail cut 3 times $ 6, $ 3, Huron Tract Land Trust Conservancy $ 2, $ 2, Bluewater Area Family Health Team $ 107, $ 107, Re-imburse Facilities dept. for BRVTA cuts: $ 5, Electric Vehicle Charging Station (BayLib) $ 3, % contribution for FCM Municipal Asset Management Funding $ 12, $ 178, $ 196, Remaining balance: $ 47, $ 29,

19 Annual transfer to Reserve for the cost of the next Municipal Election (2018). Provides Municipal Grants to local organizations in amount of $18,924. Continuing support for Blue Flag Program at the Bayfield Beach and the Marina. 19

20 Maintains per kilometer reimbursement cap on lakeshore road grants with 1.7% CPI ($3,147.33). Continuing involvement in the 2018 Communities in Bloom Program. Proposing to install a new furnace at the Hensall Fire Station. 20

21 Fire is transferring $188,000 to the Fleet department as a contribution towards fleet operating and capital costs. This amount also contributes to replacement of Bunker Gear with a 10 year life span. Protective Services are proposing to finance the difference in asset value of upgrading the older pickup truck with a newer model, 1500 series pickup truck. 21

22 Roads Department proposes banking the 2018 funding allocations from Gas Tax and Ontario Community Infrastructure Funding to fund future repairs to Bridge B35 at the south end of Airport Line. $48,500 for assumption of Sunset Estates Road. Proposed capital project costs of $586,500 with $466,500 offset from Reserve transfers. 22

23 Additional Capital projects include: 1. $140,000 Bayfield Terrace 2. $278,000 to complete Airport Line repair/repave from County Road #84 to Kippen Road 3. $58,000 towards repairs of Hensall Fire Station Parking Lot 4. $50,000 surface drainage work at Lorne Ave in Hensall 23

24 Roads will transfer $245,142 to Fleet department for fleet operating and capital costs. Transfer to Reserves totaling $404,834 to fund the Bayfield Main Street Project ($85,000), Bridge B35 on Airport Line ($75,000), 2018 OCIF Formula component towards B35 ($169,834) and transfer for future road assumptions ($75,000). 24

25 Replacement zero-turn mower ($26,000) New Zamboni for Hensall Arena ($115,000) To offset these purchases and daily operating expenses, Fleet is receiving contributions from the Fleet Reserve, Fire, Protective Services, Facilities and Roads. 25

26 The Utilities Department is responsible for provision of Water, Sewer and Streetlights which are all self-funding operations and do not impact on the municipal levy. Water Systems upgrade include Varna Water System, Compliance and Health & Safety Work on Hensall and Bayfield Water Towers, EA for Hensall Water Tower. 26

27 Proposing to finalize the documentation and billings for the Hensall Lagoons Upgrade. Work on EA for Bayfield Sewer System. Inflow and infiltration testing for Bayfield Sewer System. 27

28 The Facilities Department has proposed capital projects totalling $578,200 with offsetting transfers from Reserves in amount of $340,193. These projects are taking place in all three villages. The current draft budget does not include ice at the Bayfield Arena as that was Council direction when budget was drafted. 28

29 Continuing to set aside $24,000 per annum towards future closure costs for all the landfills. Funding continued monitoring work per the Provincial Order for the Hensall Landfill Site. Investigating implementing clear bags for garbage pickup. 29

30 Operation of the Marina has been contracted out but the municipality will still look after the dredging operations and billings. 30

31 2018 Budget results in a net 0.32% increase 1.36% of the levy are non-discretionary such as O.P.P., Conservation Authority, hydro and insurance. Discretionary amount is 1.7% 2017 Assessment Growth is 1.00% Total discretionary costs are -2.74%. 31

32 The 2018 Budget documentation is posted on the municipal website at: Residents were invited to submit questions or comments to the Manager of Finance. 32

Municipality of Bluewater Draft Budget

Municipality of Bluewater Draft Budget Municipality of Bluewater - 2010 Draft Budget 1 Draft 2010 Budget Bluewater Municipal Council has approved a draft 2010 budget of $5,551,702, a 4.66% overall increase which protects the current levels