1 MUNICIPALITY OF HASTINGS HIGHLANDS 2018 MUNICIPAL CAPITAL BUDGET PRESENTATION COUNCIL APPROVED NOVEMBER 22, 2017
INTRODUCTION 2
3 INTRODUCTION - We are targeting to have Council approve the 2018 capital budget on November 22, 2017 - Benefits of approving before Dec 31, 2017 include: - It will give department heads adequate time to prepare tenders and be subject to the most competitive market prices - It will allow the municipality to get a jump start on construction projects before the busy summer construction season
4 2018 MUNICIPAL BUDGET TIMELINE 2018 Municipal Budget Timeline Level Task Comments July August September October November December January Council create & appoint members to budget adhoc committee Treasurer disburse budget worksheets to all department heads department heads submission deadline of August 31st Department Heads complete and submit budget worksheets to treasurer Treasurer review department heads completed worksheets and input figures into master budget workbook Department Heads prepare proposed municipal budget for review by budget ad-hoc committee Budget Ad-Hoc Committee review proposed municipal budgets and begin to prepare draft for council Council review draft municipal budget as presented by the budget ad-hoc committee a special meeting of council may be necessary to receive the draft municipal budget Public Consultation council to host draft budget open house for public consultation and feedbck a special meeting of council will be necessary to present the draft municipal budget Budget Ad-Hoc Committee review of public comments committee will review publics comments and diliberate before presenting final draft for approval by council Council approval of municipal budget Council Public Budget Ad-Hoc Committee Treasurer Department Heads
5 Where we are Where we are going Completed: Corporate Strategic Plan Completed: Comprehensive Asset Management Plan Completed: 5 Year Capital Roads Plan Completed: Finance Reserves Policy In Progress: Fire Services Capital Plan In Progress: Buildings & Facilities Strategy In Progress: Landfill Closure & Post Closure Financial Risk Mitigation
6 CORPORATE STRATEGIC PLAN WASTE SITES FINANCIAL RISK MITIGATION ASSET MANAGEMENT PLAN BUILDINGS & FACILITIES STRATEGY CAPITAL BUDGET ROADS CAPITAL PLAN FIRE SERVICES CAPITAL PLAN FINANCE RESERVES POLICY
7 HASTINGS HIGHLANDS CAPITAL - 486 km of roads ASSET INVENTORY - 13 bridges - 2 structural culverts - > 50 vehicles/equipment - > 30 municipal buildings or facilities - 9 municipal waste sites
8 2018 Municipal Reserves (Estimate) YEAR: 2018 (Estimate Only) 2017 Description of Discretionary Reserve Account # Balance Dec 31 Reserve for Working Capital 01-3100-0100 2,208,708.46 Reserve for Insurance Expense 01-3100-0110 30,065.48 Reserve for Policing Expense 01-3100-0120 109,999.52 Reserve for Election Expense 01-3100-0130 47,500.26 Reserve for Recreation Expense 01-3100-0140 32,500.00 Reserve for Economic Development Expense 01-3100-0150 77,000.00 Reserve for Health Expense 01-3100-0160 25,000.00 Reserve for Gym Equipment Expense 01-3100-0170 8,164.00 Reserve for Capital Expense 01-3100-0200 36,736.32 Reserve for Admin Capital Expense 01-3100-0210 130,871.28 Reserve for Equipment Replacement 01-3100-0220 445,286.23 Reserve for Water Capital 01-3100-0230 1,667.72 Reserve for Road Construction Expense 01-3100-0240 147,699.21 Reserve for Landfill Capital 01-3100-0250 161,655.20 Reserve for Fire Capital 01-3100-0260 283,053.42 Reserve for Landfill Closure Expense 01-3100-0900 504,545.40 TOTAL 4,250,452.50 2017 Description of Obligatory Reserve Account # Balance Dec 31 Reserve for Gas Tax Fund 03-3200-1030 30,632.49 Reserve for Cash In Lieu of Parkland (Deferred Revenue) 01-2200-0800 42,500.00 TOTAL 73,132.49
9 2018 DRAFT CAPITAL BUDGET
10 Proposed Critical Priority Needs - 6.7 kms of municipal roads to be paved - 30.2 kms of municipal roads to be gravelled - Hastings Highlands Local Road 62 Revitalization Project Design (Dependent Upon Success of OCIF Application) - 1 New Roads Highway Plow Truck for Local Road 62-1 Fire Services Pumper/Tanker for Lake St. Peter - 1 Fire Services Equipment Van for Lake St. Peter - Roof Replacement at Lake St. Peter Community Centre
11 One of the Projects Proposed - HCB Overlay (Pave) South Baptiste Lake Road FROM Y Road TO Mira Street 1 KM Total Cost $82,544
12 One of the Projects Proposed - HCB Overlay (Pave) Graphite Road FROM Hwy 62 TO Moxam Road 3.3 KMS Total Cost $330,000
13 One of the Projects Proposed - HCB Overlay (Pave) Golfers Lane FROM River Road TO Dead End 1.2 KMS Total Cost $107,500
14 CAPITAL BUDGET (Expense Only) Total Budget: $1,763,544 *Refer to Capital Plan for detail Buildings 1% or $20,000 Vehicles/ Equipment 28% or 495,000 Information Technology Replacement 1% or $20,000 Roads 70% or $1,228,544
15 CAPITAL BUDGET (Revenue Only) Total Budget: $1,763,544 *Refer to Capital Plan for funding detail Gas Tax Transfer 15.5% or $269,500 Provincial Grants/Other 16% $285,944 Municipal Taxation 16.5% or $290,000 Municipal Reserves 52% or $918,100 Municipal Debt 0% or $0
In other words 16 The municipality needs $1,763,544 in order to pay the bills for the proposed 2018 capital related expenses. $269,500 will be sent to Hastings Highlands by the Federal Governments Gas Tax Fund $82,544 will be sent to Hastings Highlands by the Provincial Governments Community Infrastructure Fund Formula Based $203,400 will be sent to Hastings Highlands by the Provincial Governments Community Infrastructure Fund Application Based $918,100 will be used from Hastings Highlands reserves or otherwise referred to as the municipality s savings $0 will be provided to Hastings Highlands in the form of a bank loan $290,000 will be used from Hastings Highlands operating expenses to fund capital expenses $1,763,544
17 CAPITAL BUDGET COMPARISON EXPENSES $ $ 2018 BUDGET % 2017 BUDGET % Roads 1,228,544 70% 754,449 51.5% Bridges 0 0% 0 0% Buildings 20,000 1.0% 25,000 2% Waste Sites 0 0% 22,000 1.5% Vehicles/Equipment 495,000 28% 611,689 42% Information Technology Replacement 20,000 1.0% 50,000 3% TOTAL 1,763,544 1,463,138
18 CAPITAL BUDGET COMPARISON REVENUES $ $ 2018 BUDGET % 2017 BUDGET % Municipal Taxation 290,000 16.5% 265,000 18% Municipal Reserves 918,100 52% 845,689 58% Gas Tax Transfer 269,500 15.5% 269,500 18% Municipal Debt 0 0% 0 0% Provincial Grants/Other 285,944 16% 82,949 6% TOTAL 1,763,544 1,463,138
19 2018 Municipal Reserves Budgeted through (If Proposed Capital Budget Approved As Is) operating budget per Reserves Policy YEAR: 2018 (Estimate Only) 2017 2018 2018 2018 Description of Discretionary Reserve Account # Balance Dec 31 Budget From Budget to Balance Dec 31 Reserve for Working Capital 01-3100-0100 2,208,708.46-165,600.00 2,043,108.46 Reserve for Insurance Expense 01-3100-0110 30,065.48 30,065.48 Reserve for Policing Expense 01-3100-0120 109,999.52 109,999.52 Reserve for Election Expense 01-3100-0130 47,500.26 47,500.26 Reserve for Recreation Expense 01-3100-0140 32,500.00 32,500.00 Reserve for Economic Development Expense 01-3100-0150 77,000.00 77,000.00 Reserve for Health Expense 01-3100-0160 25,000.00 25,000.00 Reserve for Gym Equipment Expense 01-3100-0170 8,164.00 8,164.00 Reserve for Capital Expense 01-3100-0200 36,736.32 36,736.32 Reserve for Admin Capital Expense 01-3100-0210 130,871.28-20,000.00 110,871.28 Reserve for Equipment Replacement 01-3100-0220 445,286.23-260,000.00 185,286.23 Reserve for Water Capital 01-3100-0230 1,667.72 1,667.72 Reserve for Road Construction Expense 01-3100-0240 147,699.21-237,500.00-89,800.79 Reserve for Landfill Capital 01-3100-0250 161,655.20 161,655.20 Reserve for Fire Capital 01-3100-0260 283,053.42-235,000.00 48,053.42 Reserve for Landfill Closure Expense 01-3100-0900 504,545.40 504,545.40 TOTAL 4,250,452.50-918,100.00 0.00 3,332,352.50 2017 2018 2018 2018 Description of Obligatory Reserve Account # Balance Dec 31 Budget From Budget to Balance Dec 31 Reserve for Gas Tax Fund 03-3200-1030 30,632.49-269,500.00 247,406.63 8,539.12 Reserve for Cash In Lieu of Parkland (Deferred Revenue) 01-2200-0800 42,500.00 42,500.00 TOTAL 73,132.49-269,500.00 247,406.63 51,039.12 * This does not include taxation transfer of $290,000 and provincial grant support of $285,944
20 2018 MUNICIPAL RESERVES - If this draft capital budget is approved, the forecasted balance of municipal reserves at year end is just over $3.3 million dollars - **Special Note** This balance of just over $3.3 million dollars does not take into account any transfers to the reserves from the municipality s operating budget - Section 5.2 of the municipality s approved Reserves Policy recommends a total of transfers from the operating budget to fund reserves should be at a minimum target of between 8% and 10% of the total tax levy For example, if Hastings Highlands total tax levy was $6,700,000 then a minimum target of 8% or $536,000 should be transferred from the operating budget to fund reserves. That would take the municipal reserves balance from just over $3.3 million to over 3.8 million
CONCLUSION 21
22 CONCLUSION - Balanced capital budget proposed - No new municipal debt proposed - Pay as you go principle applied - The draft capital budget addresses the most critical municipal infrastructure needs while maximizing the use of public dollars to ensure the right investments are made at the right time - All the proposed projects take into consideration the formal municipal planning completed to date
DISCUSSION 23