2019 Budget Presentation April 17, 2019 This presentation was - PowerPoint PPT Presentation

2019 Budget Presentation April 17, 2019

This presentation was developed by staff for the Council and members of the public to provide financial information and strategies as it relates to the 2019 Budget deliberations. The report covers the following topics for review and discussion purposes. 1. Recapping 2018 Taxation Year. 2. 2018 Capital Projects Completed. 3. Comparison of 2018 Budget to Proposed 2019 Budget in graphs. 4. 2019 Proposed Capital Projects. 5. 2019 Operating Budget potential impacts and challenges. 6. Questions?

Recapping 2018 Taxation Year At the May 1, 2018, Council meeting, By-law No. 26-18 was enacted to adopt the 2018 Budget and associated tax rates. The 2018 Budget was a balanced budget, with a required tax levy of $7,752,756.00 SUMMARY: OPERATING BUDGET $ 7,371,476.00 CAPITAL BUDGET $ 4,308,708.00 TOTAL BUDGET $ 11,680,184.00 LESS REVENUE SOURCES OPERATING REVENUES ($2,110,520.00) RESERVES ($1,159,388.00) CAPITAL REVENUES -OTHER SOURCES ($599,000.00) CAPITAL GRANTS ($58,520.00) EQUATES TO LOCAL TAXATION LEVY $ 7,752,756.00

Zorra’s 2018 Tax Levy and Assessment In 2018 the Township tax levy requirement was $7,752,756.00 and apportioned as follows: • Operating expenditures $5,260,956.00 • Capital expenditures $2,491,800.00 Based on the Property Assessment Roll; the following summarizes how the tax classes funded the levy requirement for Township purposes:

2018 Capital Projects In 2018, approximately $4,500,000.00 dollars was spent on capital infrastructure. Skate Park and Spray Pad in Thamesford

2018 Capital Projects Continue Electric Charge Station Council Chambers Renovations

2018 Capital Infrastructure Projects Continue Road construction projects included Road 60, Road 64 and joint project with the Town of Ingersoll for a section of North Town line.

Proposed 2019 Taxation Year The draft 2019 operating and capital budgets were presented to Council and deliberated between January and March, 2019. As part of the process Council had instructed the Director of Finance to host a public presentation to seek input from interested public. This preliminary budget requires a Township levy requirement of $8,257,785.50 ($505,029.50 increase or 6.52%). 2018 BUDGET 2019 BUDGET VARIANCE OPERATING BUDGET $ 7,371,476.00 $ 7,739,813.00 $ (368,337.00) CAPITAL BUDGET $ 4,291,008.00 $ 5,692,947.00 $ (1,401,939.00) * TOTAL BUDGET $ 11,662,484.00 $ 13,432,760.00 LESS REVENUE SOURCES OPERATING REVENUES $ (2,110,520.00) $ (2,004,127.50) $ (106,392.50) RESERVES $ (1,141,688.00) $ (1,228,536.00) $ 86,848.00 CAPITAL REVENUES -OTHER SOURCES $ (599,000.00) $ (1,268,620.00) $ 669,620.00 CAPITAL GRANTS $ (58,520.00) $ (673,691.00) $ 615,171.00 * EQUATES TO LOCAL TAXATION LEVY $ 7,752,756.00 $ 8,257,785.50 $ (505,029.50) * Includes the One-Time MMAH Grant $581,087.00 transfer to Capital Infrastructure Reserve

Proposed 2019 Taxation Year The following several slides represents the following information in graph form for comparison purposes: Graph 1: Operating expenditures categorized by departments; capital expenditures categorized between Transfer to Reserves/Capital expenditures and Long Term Debenture Repayments. Graph 2: Revenue not included taxation categorized by its source(s). Graph 3: Taxation levy categorized by department – how it is spent.

Graph 1 – Operating and Capital Expenditures 2018 Budget $11,662,484.00 2019 Budget $12,851,673.00 Long Term Long Term Debenture Debenture Fire Payments Payments Fire $695,545 $941,258 $929,360 $639,625 5.41% 8.07% 7.23% 5.48% General General $977,585 $1,018,047 8.38% Policing 7.92% Policing $1,163,298 $1,170,562 9.97% 9.11% Capital & Transfer to Capital & Reserves Transfer to $3,349,750 Reserves 28.72% $4,182,500 32.54% Transportation Planning; $3,073,195 Transportation Economic Dev 23.91% $2,898,350 & Other Parks & 24.85% Planning; Parks & $87,280 Recreation Economic Dev Recreation 0.75% $1,199,455 & Other $1,262,888 10.28% $114,265 9.83% 0.89% Building & By‐ Cemeteris & Law Health Cemeteris & $307,810 Building & By‐ Services Health 2.40% Law $104,398 Services $301,485 0.90% $97,501 2.59% 0.76%

Graph 2 - Revenues Sources not including Taxation 2019 Budget $4,593,887.50 2018 Budget $3,909,728.00 Provincial Grants ‐ Provincial Transfer from Operating Grants ‐ Reserves $810,250 General Transfer from Operating 17.64% $1,228,536 Revenues; Reserves $915,000 26.74% User fees $1,141,688 23.40% $417,053 29.20% 9.08% General Revenues; User fees Federal Gas $401,250 Federal Gas Tax 10.26% Parks & Tax $527,905 Recreation $245,000 11.49% Fees 6.27% $515,560 11.22% Parks & Recreation provincial Fees Grants ‐ $474,750 provincial Building Capital 12.14% Grants ‐ Permits $58,520 Capital $261,265 1.50% Capital Revenue $92,604 5.69% Aggregate Aggregate from Other Capital Revenue Building 2.02% Royalites Royalites Sources from Other Permits $285,000 $450,000 $86,000 Sources $251,000 7.29% 1.92% 9.80% $86,000 … 6.42%

Graph 3 -How the Township Levy is spent. 2018 Budget $7,752,756.00 2019 Budget $8,257,785.50 Long Term General Debenture Long Term $632,747 General Payments Debenture 7.66% $542,042 $929,360 Payments 6.99% 11.25% $941,258 12.14% Policing Policing $1,030,789 $990,949 12.48% 12.78% Capital and Transfer to Capital and Reserves Fire Transfer to Fire $1,592,740 $607,120 Reserves $539,665 19.29% 7.35% $1,550,542 6.96% 20.00% Parks & Recreation Parks & $658,013 Transportation Transportation Recreation 7.97% $2,446,200 $2,446,200 Planning & Dev 31.55% $603,707 31.55% $43,913 7.79% Planning & Dev 0.57% $43,913 0.57% Building & Building & Health Servcies By‐law By‐law $27,386 $24,776 Cemeteries $22,143 Health Servcies 0.32% 0.33% $25,538 … 0.27% $38,759 Cemeteries 0.50% $30,945 …

2019 Capital Budget – What are we planning? Capital Expenditures 2019 Budget Comments Debenture Payments $ 929,360.00 Reflects payment schedule Transfer to Reserves $ 827,000.00 Increase contributions Program ‐ bringing high speed internet SWIFT ‐ New Initiative $ 170,000.00 rural service General ‐ Building $ 30,000.00 Computers/windows/painting Fire ‐ Building $ 171,000.00 Cistern and Overhead doors Embro Station Fire ‐ Equipment $ 100,000.00 same levels as 2018 Fire ‐ Vehicle $ 470,000.00 Tanker ‐ Embro Station Rink Boards Thamesford Arena, Washroom upgrades Embro Arena; Recreation ‐ Buildings $ 121,900.00 Harrington Hall ramp Ice Resurfacer; Brine Header, Recreation ‐Machinery $ 180,000.00 Refrigeration Controls Recreation ‐ Infrastructure $ 159,000.00 Playground; trails; paint pool Roads ‐ Vehicles $ 327,000.00 Tandem and pickup truck Road 92 25th line to 27th line; Road 78, Roads ‐ Construction $ 1,385,100.00 Road 88 and 33rd Line Roads ‐ Bridges/Culverts $ 241,500.00 Raod 74, Cobble Hills Road, 13th Line Total Capital Budget Expenditures $ 5,111,860.00

2019 Capital Budget – how are we financing it? Capital Financing 2019 Budget Comments OCIF Annual Grant ‐ Rural Infrastructure $ 92,604.00 Road Construction Other Revenues ‐ Federal Gas Tax $ 527,905.00 Road Construction Other Revenues ‐ MNR Royalties $ 450,000.00 Road Construction Other Revenues ‐ ERTH Interest $ 59,000.00 Debt Repayment Other Revenues ‐ Development Charges $ 201,915.00 as per Development Charges Study Contributions from Reserves ‐ Recreation $ 350,500.00 Recreation Capital Projects Contributions from Reserves ‐ Parkland $ 58,000.00 Playground and Trails Contribution from Reserves ‐ Roads Fleet $ 327,000.00 Fund Tandem and Pickup Contribution from Reserves ‐ Fire Vehicles $ 353,000.00 Fund Tanker Embro Enabling Accessibility Grant $ 22,800.00 Harrington Hall Ramp Other ‐ Revenues ‐ Community $ 4,000.00 Volleyball Lights ‐ Community Subtotal of Other Revenues Sources $ 2,446,724.00 2019 Capital Tax Levy ‐ Proposed $ 2,522,100.00 Resulting in SHORTFALL of capital levy $ 143,036.00 Total Capital Financing $ 5,111,860.00 Therefore resultingin Transfer from Insfrastructure Reserve of $143,036.00; Reserve balance as at December 31, 2018 was $814,190.00.

2019 Operating Budget The 2019 Draft Operating Budget as presented, requires an operating levy of $5,735,685.50, $474,729.50.00 more than the 2019 levy requirement. For 2019, the Province has released the 2019 Ontario Municipal Partnership Fund (OMPF) allocation notice, and the Township will see experience a decrease of $137,250.00; which makes up 29% of the increase in tax levy requirement for 2019. Year 2018 2019 Dollar change year to year Rural Community Grant $ 714,600.00 $ 718,900.00 $ (4,300.00) Northern or Rural Fiscal Circumstances Grant $ 40,400.00 $ 37,200.00 $ 3,200.00 Transititonal Assistance $ 154,000.00 $ 16,600.00 $ 137,400.00 Court Security/Prisoner Transporation Grant $ 6,000.00 $ 6,000.00 $ ‐ $ 915,000.00 $ 778,700.00 $ (137,250.00)