2018 Budget Overview Operating January 11, 2018 Presentation - PowerPoint PPT Presentation

2018 Budget Overview Operating January 11, 2018

Presentation Overview • Budget Framework and Highlights • Budget Best Practices and Ten-Year Financial Plan • Public Consultation Feedback • 2018 Operating Budget • Long Term Debt • Reserves and Reserve Funds • Budget Challenges – Tax Refunds • 2018 Property Assessment and Property Taxes • Proposed 2018 City Tax Dollars At Work • Review of Departmental Operating Budgets 2 2

Budget Framework Council’s Strategic Plan Compliance Budgets Results Evaluation Asset Management (Operating & Capital) Long Term Financial Plan • Policy environment/ • Actual performance vs. Customer Service guidelines for Benchmark annual/long-term • Informs financial plan • Inform strategic and budgeting (priorities, services, and long-term financial plan service levels) • Services, service levels and priorities for budgeting • Resource limitations • Future financial state 3 3

Budget Highlights The 2018 Budget for the City of Cornwall can be summarized as follows:  This document has been prepared with a tax levy increase of 7.54% or $5,078,150.  This includes $1,186,500 of Growth (new assessment from 2017 supplementary taxation) that has been added to the 2018 tax roll. The net effect of these two components results in a comparative levy increase of 5.68% or $3,891,650.  Operating budgets funded from the tax base for City departments have increased by $2,027,621 or 3.49%. Debt financing charges for capital projects have increased by $504,557 or 14.11% and net contributions to reserves increased by $1,036,922 or 23.98%.  The overall operating budget (including debt payments and contributions to reserves) funded from the tax base has increased by $3,569,100 or 5.41%.  The combined capital budgets for City departments funded from the tax base has increased from $1,364,200 to $2,873,250 (by $1,509,050 or 110.62%).  The average municipal taxes for a residential home valued at $166,771 is $2,486.45 ($2,310.85 in 2017). 4

Sustainable Financial Planning A sustainable level of revenue accounts for the future investment needs in addition to current period expenses. Revenues in These items excess of current period expenses will be together fund reflected as an accounting surplus in replacement financial statements. costs. If revenues are at this point, the City is just meeting current period expenses. It is not adequately planning for the future. If revenues are at this point, the City is just This is an accounting recovering cash costs. It is significantly view of cost under underfunded. municipal full accrual accounting practices. (Source: Ontario Ministry of Environment, 2007, Toward Financially Sustainable Drinking Water and Wastewater Systems) 5

Long Term Financial Plan (LTFP) Budget ------------ --------------------------------------FORECAST-------------------------------------------------- 2023-2027 2017 2018 2019 2020 2021 2022 Avg/Yr Net Operating Budget 58,118,260 59,278,795 60,848,286 61,925,808 63,118,418 64,646,900 70,259,594 change $ 1,160,535 1,569,491 1,077,522 1,192,610 1,528,482 1,997,570 change % 2.00% 2.65% 1.77% 1.93% 2.42% 2.92% Debt Payments 3,575,846 4,222,360 5,117,495 5,745,682 6,652,048 7,190,592 7,000,918 Net to/from Reserves 4,324,468 4,616,161 4,409,191 4,898,848 7,414,613 8,055,521 8,672,930 Total Net Operating 66,018,574 68,117,316 70,374,972 72,570,338 77,185,079 79,893,013 85,933,442 Total Net Capital 1,364,200 2,233,295 2,959,170 4,256,630 3,433,880 3,327,684 3,798,638 Total Levy 67,382,774 70,350,611 73,334,142 76,826,968 80,618,959 83,220,697 89,732,080 Net Levy Change $ 2,967,837 2,983,531 3,492,826 3,791,991 2,601,738 2,113,803 Net Levy Change % 4.40% 4.24% 4.76% 4.94% 3.23% 2.42% The LTFP forecasts revenues, operating expenditures, contributions to/from Reserves, and capital requirements (based on the 10-year Asset Management Plan) over the period 2018-2027. The LTFP is one tool that Council can use to identify the impact of current and future decisions when setting priorities for the City. 6

2018 Submission Comparison The 2018 Submission is built on the City’s current operating levels and current infrastructure needs. There is a variance of $2,110,313 between the 2018 Budget Submission and the City’s LTFP. Net Operating Budget of $867,086 LTFP 2018  $632,000 S&B 2018 Submission Variance  $226,000 Bill 148 Net Operating Budget 59,278,795 60,145,881 867,086  $225,000 PIL 867,086  $200,000 Suppl. Taxation 1.46%  $100,200 Fuel Costs  $100,000 Transit MP Implementation Debt Payments 4,222,360 4,080,403 (141,957)  $97,000 Waste Collection Services Net Reserve Transfers 4,616,161 5,361,390 745,229  $75,500 P&R Contracted Services Total Net Operating 68,117,316 69,587,674 1,470,358  ($306,349) OMFP  ($220,000) Insurance Premiums Growth  ($153,000) WDO Recycling Funding Operating Levy 68,117,316 69,587,674  ($143,000) Police Court Upload Net Operating Levy Change $ 1,470,358 Debt Payments ($141,957) Net Operating Levy Change % 2.16% Net Reserves $745,229 Total Net Capital 2,233,295 2,873,250 639,955  $778,000 Brownfields CIP  $100,000 Marleau Property Total Capital Levy 2,233,295 2,873,250  $65,700 Purchase of leased vans Net Capital Levy Change $ 639,955  $55,000 Mural Net Capital Levy Change % 28.66%  ($174,400) Progress Fund  ($100,000) Insurance Reserve Total Levy 70,350,611 72,460,924 2,110,313 Net Levy Change $ 2,110,313 Net Levy Change % 3.00% 7

2018 Budget Survey Results Level of Service 79 % 72 % would choose choose to spend on to enhance or infrastructure maintain City services maintenance now 57 % would 53 % support a tax would support a dedicated 1% increase to do this increase in taxes to fund infrastructure Top 3 priorities requiring the most attention from Elected Officials and City Administration Infrastructure Safe Community Economic Development 67 % 55% 40 % 8

Operating Revenue Comparison (excluding Police Services) Major variances (000s):  $ 166 PIL & Supplementary Taxation  $ 1,187 2017 Growth  $ 44 School Portion Kept  '17 Budget '18 Submission ($ 1,078) Supplementary Taxation  PIL & Suppl. Taxation $2,974,775 $3,140,705 ($ 112) Provincial / Federal Funding  $ 4,598 EDU Funding Provincial $67,370,546 $67,123,908  $ 251 MOH (GSDL/Paramedic Services)  Federal $2,828,767 $2,962,947 $ 212 Min of Industry (Ec Dev)  Municipal $7,228,837 $7,254,948 $ 134 Federal Gas Tax  User Fees $17,222,634 $17,243,940 ($ 317) OMPF  Internal Tfr $4,686,468 $5,167,198 ($ 1,735) MCSS  $102,312,027 $102,893,646 Subtotal ($ 3,256) Social Housing  $ 26 Other Municipalities  $ 480 Internal Transfers  % increase 0.57% $ 296 Social and Housing Services  $ increase $581,619 $ 121 HR and ITT  $ 106 Municipal Works  9

Salaries & Benefits Comparison (excluding Police Services) Major variances primarily relates to  increases/(decreases) in (000’s) : • $1,188 Full-Time $1,014 Contractual Obligations  $ 174 New Increase in FTE (Child Care Contracts)  '17 Budget '18 Submission • $ 350 Part-Time S & B $56,660,259 $58,655,941 $ 199 Minimum Wage Increase • $ 62 New Increase in PT (GSDL) • % increase 3.52% $ 35 New Increase in PT (Transit) • $ increase $1,995,682 $ 22 Elections Staff • $ 21 New Increase in PT (EMS) • • $ 441 Benefits $ 301 Contractual Obligations  $ 27 Minimum Wage Increase  $ 62 Retiree Benefits  $ 51 New Increase in Child Care  10

Purchase of Goods Comparison (excluding Police Services) Major variances primarily relates to  increases/(decreases) in (000’s) : $110 Gasoline & Fuel  '17 Budget '18 Submission $ 47 Parts and Equipment  PoG $8,462,091 $8,892,015 $ 46 Food Provisions (GSDL $40)  $ 44 Uniforms/Safety Equipment  $ 43 Supplies (stationery, medical)  % increase 5.08% $ 40 Scissor Lift & Lazer Ice Leveller (Rec)  $ increase $429,924 $ 38 Extrication, Highrise, Rescue Equipment (Fire)  $ 21 Calcium Chloride (Winter Control)  $ 19 Utilties  11

Services & Rents Comparison (excluding Police Services) Major variances primarily relates to  increases/(decreases) in (000’s): $3.8M Social & Housing Services  $2.49M Child Care Expansion Plan  $1.65M Early ON Child and Family Centres  ($621K) SIF, IAH  $212K Waste Management  Operation of the Landfill and Recycling Plant  '17 Budget '18 Submission $136K 2018 Municipal Election  Leasing of Tabulators, Advertising, Postage, Election day staff. S&R $29,289,405 $34,048,967  $126K EMS  $55K Stretcher refurbishments  % increase 16.25% $37K Ambulance and Defibrillator maintenance  $ increase $4,759,562 $21K Lease Agreements  $123K Parks and Recreation  $119K Contracted Services  $315K Other  $65K Transit Master Plan  $90K Zoning Bylaw / Waterfront Plan  $40K Fire Prevention and Public Education  $40K Line Painting and Hired Equipment  $40K Trac Group  $33K Tourism Advertising  12