Town of Georgina Long Range Financial Plan Council Information Session. Wednesday, November 4 th, 2015

Transcription

1 Town of Georgina Long Range Financial Plan Council Information Session Wednesday, November 4 th, 2015

2 Topics 1. Demographic & Socio-Economic Conditions 2. Current Financial Position 3. Policies for Consideration 4. Next Steps 1

3 Demographic & Socio-Economic Conditions 2

4 Population a Key Driver of Municipal Expenditures POPULATION GROWTH TOWN OF GEORGINA, (000s) Rate % 10% 9 9% 8 8% 7 7% 6 6% 5 5% 4 4% 3 3% 2 2% 1 1% % Source: Hemson Consulting Ltd. based on Statistics Canada data. 3

5 Population Growth Driven Mainly By Migration From Southern GTA Outflow among late teens & young adults NET MIGRATION BY AGE TOWN OF GEORGINA, ,200-1, ,000 1,200 Source: Hemson Consulting Ltd. based on Statistics Canada data. 4

6 Age An Important Factor For Municipal Service Demand CENSUS POPULATION AGE STRUCTURE TOWN OF GEORGINA, 2011 & % 5% 4% 3% 2% 1% 0% 1% 2% 3% 4% 5% 6% Source: Hemson Consulting Ltd. based on Statistics Canada data. 5

7 Most New Housing To Be In Keswick Service Area New Dwellings Keswick 3,280 68% Sutton (High Street) 1,000 21% Sutton (Remainder) 157 3% Remainder of Town 422 9% Total 4, % Source: Hemson Consulting Ltd., based on 2011 Georgina DC Study Georgina Housing Mix 2015 Georgina Housing Mix Growth % 6% 15% Shift to higher density 16% 85% 69% Singles/Semis Rows/Duplexes Apts Singles/Semis Rows/Duplexes Apts 6

8 Region Planning for Greater Employment Growth in Georgina EMPLOYMENT GROWTH TOWN OF GEORGINA, ,000 (#) Rate % 10% Forecast Job Growth ,440 jobs 27% populationrelated 74% on employment lands (vast majority in Keswick) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, % 6% 4% 2% 0% -1, % Source: Hemson Consulting Ltd. based on Statistics Canada data. 7

9 Georgina Plans are for a More Complete Community Activity Rates (Ratio of Jobs to People) % 51% 53% 53% 54% 38% 36% 36% 37% 39% 39% 36% 48% 54% 26% 18% 25% 24% 29% 32% 33% 34% 33% 37% 41% 41% 36% 49% 51% 54% 60% 64% Source: Hemson Consulting based on Statistics Canada data. 8

10 Georgina Has a More Rural Assessment Base Weighted Total Assessment Per Capita (2014) $300,000 $280,925 $250,000 $217,758 $200,000 $171,177 $176,193 $178,394 $181,491 $184,412 $185,365 $150,000 $112,600 $123,615 $130,796 $147,815 $149,877 $149,931 $100,000 $50,000 $ Source: Financial Information Returns

11 Driven By Relatively Lower Value Homes Weighted Residential Assessment Per Capita (2014) $300,000 $267,237 $250,000 $200,000 $150,000 $100,000 $104,518 $107,959 $111,285 $122,518 $131,508 $134,313 $143,994 $149,775 $151,418 $151,711 $154,315 $161,682 $166,804 $50,000 $0 Source: Financial Information Returns

12 Assessment Base Profile Georgina has a comparatively high proportion of residential assessment Property Class Georgina % Unweighted Assessment York Region % Average Unweighted Assessment 1 Residential (inc. Farm) 93.4% 86.1% Commercial 6.1% 11.8% Industrial 0.4% 1.9% Other 0.2% 0.1% Total 100.0% 100.0% Source: Financial Information Returns Excludes the Town of Richmond Hill (2014 FIR Information is not available) 11

13 After-Tax Household Income Reflects Town s Smaller Rural Nature $90,000 $80,000 $70,000 $60,000 Median Household After Tax Income 2010 After-Tax Income an indicator of: Municipal revenue security $50,000 $40,000 $30,000 o Ability to pay residential property taxes $20,000 $10,000 $ o Credit rating Demand for Town services Source: Statistics Canada, National Household Survey

14 Growth Can Bring Positive Change to Georgina High demand for housing = richer assessment moving forward $450,000 for new singles/semis $350,000 for new rows Regional and Local policies to encourage complete communities means more jobs better assessment mix (non-residential development generally = less demand for municipal services) Forecast heavily dependent on development of Keswick employment lands 13

15 Current Financial Position 14

16 2015 Operating Budget Expenditures by Account Category Other Expenses, 1.4% Maintenance, Repairs & Land Improvements, 1.4% Rent & Utilities, 4.0% Capital Levy Requirement, 2.4% Long-term debt P&I, 2.2% Financial, 2.2% Materials & Supplies, 6.8% Contracted Services, 8.0% Miscellaneous Fees & Charges, 12.2% Transfer to Reserve & Reserve Funds, 12.3% Wages & Benefits, 47.2% Total Expenditures = $57.7M 15

17 2015 Operating Budget Revenues by Account Category Penalities & Interest, 2.4% Permits & Other Development Fees, 2.5% Registration & Facility Fees, 3.5% User Fees, Licences and Fines, 9.7% Other Revenue, 2.4% Grants, 0.8% Water & Wastewater Fees, 18.4% Transfer from Reserve & Reserve Funds, 0.1% Property Tax, 60.2% Total Revenues = $57.7M 16

18 2015 Tax Levy Requirement by Department Grouping Planning, Building, Engineering & Other, 6.1% Capital From Current, 3.9% Library, 5.8% Municipal Law Enforcement, 3.5% Fire, 19.2% Recreation & Culture, 10.1% Operations - Parks & Facilities, 19.5% Corporate & Other, 14.4% Operations - Roads & Related, 17.5% Total Tax Levy Requirement: $34.6M 17

19 Current State of Reserves 2015 Cumulative Reserves Opening Balance: $26.7M Reserve Highlights Capital Reserve - Utility, 24.9% Contingency, 5.3% Operating Reserves - Tax, 4.4% Working Funds, 4.4% Capital Reserve Tax Equipment Replacement Roads = $1.9M Capital Reserve Utility Sanitary Sewers Lifecycle = $2.7M Capital Reserve - Tax, 61.1% Contingency Revenue/ General Fund = $1.3M Operating Reserves Tax Accessibility = $0.5M Working Fund Working Fund = $1.2M Note: 1) 2015 working funds include provision for tax rate stabilization 2) Does not include Obligatory Reserves such as DC reserve funds. 18

20 Georgina has Comparatively Moderate Reserves Municipality Total Reserves per Capita 1 Total Reserves per Household 1 Total Reserves to Expenditure Ratio 1,2 King $1,179 $3, Innisfil $1,046 $2, Aurora $982 $3, Vaughan $767 $2, Brock $916 $2, Whitchurch - Stouffville $633 $1, Georgina $613 $1, East Gwillimbury $608 $1, Markham $594 $2, Newmarket $546 $1, Caledon $531 $1, Scugog $513 $1, New Tecumseth $442 $1, Uxbridge $399 $1, Source: Financial Information Return 2014: Schedule 60 1 Total Reserves = Gas Tax + Discretionary Reserves + Reserves 2 Includes water and sewer 19

21 Georgina has Comparatively Moderate Debt Municipality Outstanding Debt per Capita Outstanding Debt per Household Debt as Share of Gross Expenditure % of Debt Limit Used 1 New Tecumseth $1,582 $4,245 11% 7% King $894 $2,550 10% 9% Innisfil $812 $1,949 6% 4% Whitchurch - Stouffville $758 $2,195 6% 5% Newmarket $497 $1,495 5% 4% Georgina $248 $667 4% 3% Caledon $237 $743 4% 8% Vaughan $224 $762 3% 2% Brock $121 $274 1% 2% Aurora $76 $239 3% 2% Markham $42 $140 0% 0% Scugog $18 $44 0% 0% East Gwillimbury $2 $5 0% 0% Uxbridge $0 $0 0% 0% Source: Financial Information Returns Provincial Debt Limit is 25% of own source revenue Debt payments for 2015 = $1.3 million related to the Willow Beach Water & Wastewater project 20

22 Policy Considerations 21

23 Decision to do a Financial Plan is Timely Opportunities: Rapid growth Increase assessment Achieve Complete Community Address funding gaps Challenges: Reliance on Keswick employment Few funding options Asset management 22

24 Policies for Consideration 1. Reserves & Reserve Funds 2. Debt Management Fiscal Policy 3. Capital Budget Process (Multi-Year Budget Approval And Tax Rate Strategy) 4. User Fees & Charges Policy 5. Better Balance of Assessment 23