Prepared & Presented by. Shelley Eliopoulos. Treasurer/Director of Finance

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1 Prepared & Presented by Shelley Eliopoulos Treasurer/Director of Finance Municipality of Trent Hills

2 Overview Expenditures Operational Costs Repaymentof Debt Capital Projects Revenues Revenue Sources Reserves Taxation Levy Reservesand Reserve Funds Taxation Levy Requirement Impact on Tax Rates Other Issues, Meetings Issues, Meetings Recommendation for Council

3 Municipalities generate property tax bills to all properties within their boundaries including Residential, Commercial, Industrial and Farmlands. Trent Hills is a lower tier municipality which means it collects taxes for the Municipal Services, County Services and School Boards. Tonight s budget presentation is for the municipal portion only, however estimates for the County portion and the Education portion are included for comparison purposes. These rates have not been set for 2010 so the 2009 rates are used for comparison purposes. To calculate the tax rate the municipality calculates the total cost for all services, less any offsetting revenues such as grants, user fees, money borrowed or money transferred from reserves. This total is divided by the total assessment of the municipality.

4 The 2010 budget is a 3.5% net tax increase with an additional 1% for recreation centre re-development. Overall, our operating expenses are up about approximately 1.5% (keeping in mind a 1% tax increase is approximately $82,000). A number of expenses we face each year are what would be considered to be uncontrollable. Some examples of uncontrollable expenses that have had a significant impact on this years operating budget are as follows: Policing Costs $ 130,701 increase Insurance Costs $ 74,448 increase Conservation Authorities $ 6,311 increase Reduction in OMPF Grant $ 22,400 decrease revenue These three things alone cost an additional $211,460 in 2010 and this represents in excess of a 2.5% increase.

5 When staff began reviewing the budget and created a first draft it included a 27% levy increase. Management was able to reduce that in a number of ways to create a document that had a more realistic number for Council to begin their review. Some examples of ways staff reduced the operating expenses are as follows: Re-tendered the insurance contract; Adjusted budget estimates to more accurately reflect last year s actual expenses; Reduced staffing levels at arenas (limiting the number of times and the circumstances in which we call in arena attendants); Reduced energy and phone costs by sourcing out cheaper pricing plans; Our goal is to have salary costs (collective agreement to be negotiated) at, or less than our Northumberland counterparts; Eliminated some programs (Ferris Park and Day Camp) that were duplicated in the community or not deemed necessary by Council);

6 The Trent Hills capital program has been adjusted with many of the projects proposed being funded (leveraged) by funding from other levels of government. This includes: funding we received in 2007 being spent on projects like Trent Drive etc., RIII funding to construct Hayes Bridge, Infrastructure Stimulus Funds going to fund the Hastings Watermain replacement program and the Sewer Separation Program in Campbellford Build Canada Funding for Isabella/Oliver St. reconstruction.

7 The value of my property has gone down since the MPAC reassessment. Should my taxes go down as well? Since the reassessment is based at a point in time (January 1, 2008) and is relative to all other properties, a general market decline in the values will not affect property taxes. As required by provincial legislation, the January 1, 2008 values provided by MPAC are used by the Municipality of Trent Hills to equitably apportion the property tax amount required for current year budget approved by Council. In 2009 it was legislated that this increase from the 2005 assessement to January 1, 2008 assessment would be phased in over 4 years. If the value of your property increased, you will find ¼ of this difference added to your assessemnt each year from 2009 to 2012.

8 Total 2009 Budget = $17,845,481 Total 2010 Budget = $ 17,757,017.

9 2010 = $11,435,316 *Other Expenditures include Audit fees, Licences, Office Supplies, Parts, Tools, External Contracts, Inspections, Program costs, Courses, Winter Maintenance Supplies, Repairs, Health & Safety, Legal fees, Insurance.

10 Loan Amount Annual Repayment Campbellford Water $ 600,000 $ 47,122 Campbellford Sewer $ 10,023,241 $ 637,001 Warkworth Water $ 1,233,375 $ 106,825 Warkworth Sewer $ 324,805 $ 41,747 Hastings Water $ 2,412,273 $ 170,856 Hastings Sewer $ 1,300,000 $ 83,744 Roads - Municipal Levy $ 4,204,711 $ 332,840 Admin. - Computers $ 40,000 $ 18,000 Trenval Loan $ 18,495 $ 1,929 $ 20,156,900 $ 1,440,064 Note: Debt for the Hastings Sewer Plant, Campbellford Sewer Plant, 2007/08 Road/Water/Sewer Upgrades and loans for Build Canada and Infrastructure Grant programs have not had long term arrangements finalized, however repayment has been calculated and budgeted for and will reduce the principal. Debt is at various terms and interest rates.

11 Road Reconstruction Projects Front St. West (Hast.) (Elizabeth to Park Lane) Water Tower Hill 10 th Line W/13 th Conc. (Rural Roads) George St West Re-occurring Programs Resurfacing (25 km) Sidewalk Program Annual Maintenance Allowance Flood Roads Bridge Program 2010 Gross Expenditure Estimates = $5,978,932 $15,000 $10,000 $23,000 $75,000 $375,676 Gas Tax Funding $20,000 $10,000 $40,000 Bridge Repairs $39,000 Fleet Rubber Tire Loader Tandem Dump/Plow Truck GPS System $180,000 $220,000 $25,000

12 Campbellford/Seymour Arena Facility Repairs $15,000 Percy Arena Facility Repairs $384,300 Outdoor Pool Design & install accessible ramp Transformer Repairs Parks Greenspace Capital Equipment & Materials Communities In Bloom Kennedy Park Campbellford Skateboard Park Warkworth Skateboard Park 2010 Gross Expenditure Estimates = $5,978,932 $20,000 funded by C. Foundation $10,000 $33,000 $5,000 $100,000 Funded C. Foundation $50,000 Funded by C. Foundation $30,000 Funded by WW Committee Fundraising Recreation Centre Development $75,000 To be set up in reserve for future costs. Approx. 1% of the Municipal levy.

13 2010 Gross Expenditure Estimates = $5,978,932 Upgrades to Resource Facility $500,000 Funded by Reserves and Rents Administration Server upgrade $45,000 Fire Capital $275,000 Emergency Measures $40,000 ($10,000 from County and JEPP funding applied for) Hastings Improvement Plan $20,000 - Funded by CFDC Grant and partial from Hastings Hydro Reserve Economic Development Park $756,426 to be funded from Reserve. Hastings Opportunity Homes $300,000 to be funded from sale of homes Warkworth Bridge Painting $10,000 Municipal Cultural Plan $50,000 (Est. $40,000 from Grant) Trails Master Plan $50,000 (Est. $40,000 from Grant) Hastings Improvement Plan $150,000 (If funding available, $50,000 cost to munic.)

14 The Provincially and Federally aided Infrastructure Programs were approved for funding in 2008 and 2009, however the majority of the work will be completed in This includes: Build Canada: Oliver St, Isabella, Major, Leonards Lane Infrastructure Stimulus: Hastings Front St - Water Infrastructure Stimulus: Campbellford Garry, Canrobert, Churchill Drive & Robert St. One Time Roads Grant (2008): Trent Drive (Camp) TSW Bridge Parkview Trent Drive (Camp)(Parkview- Bridge) Bay Street George St (Warkworth) (Mill- Walter) George St (Warkworth) (Conc. St W Walter)

15 Total Revenues = $17,757,017

16 Reserves for Ongoing Projects AS AT DEC 2008 Operational Reserves Working Capital (Goal to Match $3.8M Receivables) General Government Protection to Persons & Property Environment Services Health Services Recreation Services Planning & Development 2,483, ,269 79,382 2,712,895 5, ,021 32,502 Total Operational Reserves $5,687,336 Capital Reserves General Government Protection to Persons & Property Environment Services Health Services Recreation Services Planning & Development 25, , ,102 2,076, ,040 66,854 Total Capital Reserves $3,251,044 Total Reserves $8,938,380

17 Reserves Funds Delegated by Legislation AS AT DEC 2008 Economic Development General Recreation Capital Waterfront Development Hydro Funds Water 12, , ,795 9,939 1,273,048 56,677 Total Reserve Funds $1,769,897 Total Reserves & Reserve Funds $10,708,277

18 Taxation General Levy 2009 Required: $8,285, Requires: $8,744,162 Increment: $458,865 General Levy Increase: 5.5% (Note approx. 1% levied from growth and 1% toward the Recreation Centre redevelopment)

19 Assessment 2008 Taxes 2009 Taxes 2010 Taxes Net Change Percent Change Residential 100,000 $ 1, $ 1, $ 1, $ (62.38) % Multi-Res. 100,000 $ 3, $ 3, $ 3, $ (123.65) % Commercial 100,000 $ 4, $ 3, $ 3, $ (76.34) % Industrial 100,000 $ 6, $ 6, $ 6, $ (132.51) % Farmland 100,000 $ $ $ $ (15.60) % Please note the rates include the reduced Municipal tax rate as calculated, however the Education and County rates are based on the 2009 amounts, which based on preliminary information will also be reducing. However, 2010 is the second year of phased in assessment, so assessments will, in most cases be increasing over the 2001 assessment. This chart is for illustration purposes only.

20 2006 Average Assessment Per Household 2007 Average Assessment Per Household 2008 Average Assessment Per Household 2009 Average Assessment Per Household 2010 Average Assessment Per Household 147, , , , , Taxes 2007 Taxes 2008 Taxes 2009 Taxes 2010 Taxes $ 2, $ 2, $ 2, $ 2, $ 2,678.53

21 The Water and Sewer Budgets and Rates for Campbellford, Warkworth and Hastings have been passed for Information and the presentation on these rates is available on the Municipality of Trent Hills website The Library Board has approved their budget and the cost to the ratepayers of $331,200. This is a 1.7% increase over The User Fees for 2010 were adopted on December 7, 2009 by Council. The by-law with the fees is available at:

22 THAT the Council of the Municipality of Trent Hills approve the budget as presented and a by-law be introduced to adopt the 2010 budget with a tax levy of $8,744,162and corresponding 2010 Municipal Tax Rates be hereby adopted attached in Schedule A to the By-law. It is recommended that this by-law be introduced for 1 st and 2 nd reading at the Council meeting on February 2 nd and that 3 rd reading be held on February 16 th, 2010, thus allowing time for public input.

23 Thank you to Council, the CAO, Department Heads, Managers and Staff from the various deparments for all the hard work and effort in preparing the 2010 budget. The 2009 Year End audit is still in progress but once completed more information will be presented to Council on the Municipality of Trent Hills Financial position. This report will be made available on the Municipality Website at Questions?