2020 FINAL BUDGET March 2, 2020
CONTENTS • P URPOSE OF A B UDGET & W HAT • I NFRASTRUCTURE HAS C HANGED C OUNCIL S TRATEGIC P RIORITIES • T HE P AST D ECADE AT A G LANCE • P LANNING FOR G ROWTH • A FFORDABILITY • C OUNCIL R EQUESTS T HOUGH R ESOLUTIONS • • G RIMSBY D EMOGRAPHICS • C APITAL O VERVIEW • C OUNCIL A CCOMPLISHMENTS P ROPERTY T AX I MPACT • S TRATEGIC P RIORITIES AT A • C OUNCIL C ONSIDERATIONS • GLANCE C OMMUNITY E NGAGEMENT • B ASE B UDGET • • C ONCLUSION • H OSPITAL L EVY
THE PAST DECADE AT A GLANCE Levy Trends * 1.25% Average Combined Levy 2010 - 2018 Average 2018 2017 2016 2015 2014 2013 2012 2011 2010 Town 2.10 % 4.35 6.03 3.26 (5.04) 1.73 2.62 3.00 3.00 0.00 Region 1.28 % 2.00 2.00 0.00 1.92 1.89 1.97 3.20 (1.40) (0.10) Combined 1.25 % 2.25 2.66 0.81 (0.13) 1.49 1.75 2.50 0.00 (0.05) CPI 1.71 % 2.27 1.60 1.43 1.10 1.90 0.90 1.50 2.90 1.80 *Levies shown are net of assessment growth and does not include the waste management levy 2020 Budget
THE PAST DECADE AT A GLANCE Reserves Reserves 2010 - 2018 15,000,000 14,000,000 13,000,000 › Reserves depleted by Reserve Balance 12,000,000 11,000,000 approximately 28%, from 10,000,000 $14M down to $10M 9,000,000 8,000,000 7,000,000 6,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Years Reserve Balance Trend 2020 Budget
AFFORDABILITY Local Residential Property Taxes, 2019 (per $100,000 assessment) $1,000 900 861 800 796 Grimsby has the 2 nd lowest 700 › 683 $531 average property tax 600 630 609 586 residential property tax per 500 511 52% belowthe 400 436 436 average $100,000 of assessment 300 346 200 255 219 100 0 2020 Budget 2020 Budget
AFFORDABILITY 2019 Water, Sewer & Taxes as a Municipality % of Household Income LOWEST Grimsby 4.10% RATE Wainfleet 4.20% Pelham 4.20% Lincoln 4.50% West Lincoln 4.50% Niagara-on-the-Lake 4.80% Niagara Falls 5.20% Thorold 5.30% St. Catharines 5.40% Fort Erie 6.00% Welland 6.10% Port Colborne 6.10% Source: 2019 BMA Study 2020 Budget
GRIMSBY’S STORY Demographics/Trends Census & Growth Projections 2020 Budget
Over 173 Million in Construction Value in 2019 Building Permits Issued 2009-2019 Total Total Permits Issued Year Construction Permits for Residential Value Issued Units From 2018 to 2019, Grimsby’s 2019 $173,740,130 828 701 construction value doubled 2018 83,177,030 664 547 2017 43,294,910 384 282 2016 131,384,990 848 728 2015 38,517,290 385 287 2014 88,142,380 491 386 2013 71,571,150 512 425 2012 42,047,020 292 225 2011 49,993,970 455 377 2010 59,768,060 438 324 2009 46,065,120 318 244 2020 Budget
COUNCIL ACCOMPLISHMENTS › Sale of the biodigester › Strategic Priorities › Provided a vision › Road map for the next 3 years. › Restructuring of the organization has led to increased capacity › Forward thinking › Financial sustainability became a priority in the 2019 budget. › Made key investments › Modernized the governance structure: Committee of the Whole › Transparency 2020 Budget
STRATEGIC PRIORITIES AT A GLANCE Guiding Principals Priorities 1. We build trust with our community through meaningful 1. Responsible Development communication, transparency, leading financial management and 2. Business Attraction, Growth and Retention responsive service. 3. Accountability and Transparency 2. We welcome, nurture and support business to contribute to the 4. Transportation and Road Safety financial sustainability of our Town and create opportunities for 5. Heritage and Culture residents. 6. Environment 3. We are committed to growth that prioritizes the distinct character, 7. Community Amenities natural setting, culture and heritage that makes Grimsby special and puts residents first. 4. We are an inclusive community that considers needs from all generations, backgrounds and abilities.
Base Budget › Best-in-class financial management › Unprecedented teamwork › Addressed pressures › Thinking differently 2020 Budget
BASE BUDGET Maintaining service levels The base budget is what it costs to maintain all of the service levels that were delivered in 2019, adjusted to reflect 2020 realities. It is comprised of typical expenses such as, salaries and benefits, contracted services, professional fees, training and development, insurance, winter control, software licenses, utilities, fuel, vehicle parts, office supplies, debt charges, etc. 2020 Budget
TAX BILL IMPACT School Boards Share of the Tax Bill Town of 15% Grimsby › The total tax bill is shared amongst the Town, 28% the Region, and the school boards › Grimsby’s share is 28% of the total tax bill › Every 1% increase in the Town’s tax levy Region of Niagara equates to a 0.28% increase on the Total Tax 57% Bill 2020 Budget
BASE BUDGET Maintaining service levels Pressures in 2020 › Maintained existing services › Inflationary pressures › Employee agreement › Extra pay period in 2020 (absorbed half) › Added key core competencies Town: Tax Bill Impact: › Normalized revenues = 2.2% 0.62% › Growth 2020 Budget
WEST LINCOLN MEMORIAL HOSPITAL Goal To provide adequate and quality amenities to serve Grimsby’s growing population. Initiative Continue to support and advocate for new hospital construction for West Lincoln Memorial. 2020 Budget
HOSPITAL Investment: $200,000 Town: 1.60% Tax Bill Impact: 0.45% Demonstrates that Grimsby is fully committed to the redevelopment of West Lincoln Memorial Hospital Benefits : › Provides health care close to where people live › Allows Grimsby residents to age in place › Attracts and retains top physicians and nurses in the community › Acts as a catalyst for economic spinoffs 2000 Campaign 2020 Campaign › Est. Project cost - $25.15M › Est. Project cost - $200M › West Niagara* share - $12.5M › West Niagara* share - $60M *West Niagara is comprised of Grimsby, Lincoln and West Lincoln 2020 Budget
HOSPITAL Estimated Timeframe › May 2020 - Council resolution required for funding commitment › January 2023 - Construction commences › June 2024 - Town’s contribution advanced to the hospital › December 2024 - Construction finalized Rendering of New West Lincoln Memorial Hospital 2020 Budget
HOSPITAL Funding Plan 2002 2020 Additional Estimated Total Total Municipality Commitment Commitment Commitment Collected Grimsby $2,500,000 $9,500,000 $12,000,000 $0 › Hospital commitment to be funded through debenture › Estimated annual debt service of $800,000 per year starting in 2024 for 20 years › Recommend a $200,000 annual incremental investment over the next 4 years in order to build the debt service costs into the levy › No additional hospital levy increase after 2023 › This plan ensures best-in-class financial management 2020 Budget
INFRASTRUCTURE LEVY TOTAL ASSET REPLACEMENT COST: › Leverage › $629M Maintain federal and existing provincial assets funding 2020 Budget
PROTECTING OUR INFRASTRUCTURE Investment: $125,000 Town – 1% Tax Bill Impact – 0.28% Closing the 0% Levy Increase Current Infrastructure Gap: $4.8 Million 1% Levy Increase Infrastructure Gap in 10 Years: $5.7 Million Infrastructure Gap in 25 Years: 2% Levy increase $64 Million 2020 Budget
COUNCIL’S STRATEGIC PRIORITIES Council’s strategic priorities have been reviewed and assessed Projects and investments are included in the following slides for Council’s consideration in the proposed 2020 Budget 2020 Budget
COUNCIL’S STRATEGIC PRIORITIES LOCAL ON-DEMAND TRANSIT › In partnership with the Region and neighbouring municipalities “Provide safe and Transportation › A means to provide an efficient and innovative transit service efficient transportation & Road Safety › Leveraging the Region, Lincoln and Pelham’s financial commitments to options throughout make it feasible and affordable for our community Grimsby.” › Lincoln and Pelham councils eliminated the local transit systems to implement on-demand services “Build a sustainability › Region operates the transit system lens to become a Environmental › Supports the fastest growing demographic (30-39) in Grimsby municipal leader in › Assists in affordability and links to jobs addressing climate › Accessible vehicle change” › Operating flexibility (door to door, curb to curb, corner to corner) › Improved connectivity to intermunicipal connectors EXPLORE POTENTIAL FOR A › A means to reduce traffic congestion and assist in moderate climate MUNICIPAL PARTNERSHIP change WITH CAR SHARING SERVICES Annual Investment: $250,000 Town - 2% Tax Bill Impact - 0.56% 2020 Budget
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