2020 Operating Budget Placeholder Image ajax.ca February 3, 2020 - PowerPoint PPT Presentation

2020 Operating Budget Placeholder Image ajax.ca February 3, 2020

Agenda  Operating Budget Overview  Framework – Process, Timelines and Funding  Pressures  Exceptions  2020 Operating Budget Summary Wrap up – Next Steps   Questions? 2

Operating Budget Overview  Covers the day-to-day operation  8 Departments:  Mayor and Council  Office of the CAO/ HR Services  Legislative & Information Services  Finance  Operations & Environmental Services  Recreation, Culture & Community Development  Fire & Emergency Services  Planning & Development Services  Library Grant 3

Operating Budget Overview Money is spent on the day-to-day expenses for program and service delivery including:  Road & sidewalk maintenance including winter control  Recreation, parks, trails & waterfront maintenance Emergency services   Library services  Grass cutting 4

Process/Timelines June – November  Departments complete operating budget which is then reviewed with Finance September - December  Senior Management Team review/recommend any submitted staffing and new/expanded service requests and tax rate increase January 6 th – Operating Budget Workshop February 3 rd – 2020 Operating Budget Presentation  Budget was published on website on January 27 February 24 th – Council Approval 5

Operating Budget Framework  The Town is required by provincial law to balance its operating which means that money raised must balance the money spent. To balance the budget, the Town can either:  Increase its revenue stream through raised property taxes and fees; or  Manage expenses by reducing the cost of programs and services 6

Operating Budget Framework  Ongoing monitoring and reporting throughout the year Operating Budget Forecast Report   Final year-end reporting 7

2020 Net Operating Budget 2020 Proposed Operating Budget Amount Town of Ajax 66,053,500 Less: Payments in Lieu & Supplementary Taxes (1,786,000) Library Grant 6,063,100 Sub-total 70,330,600 New Staff 651,600 New and Expanded Services/Programs (NEPI) 688,700 Net Operating Budget $ 71,670,900 8

Expenditures by Category Insurance, Other, $5,486,500 , 6% Materials/Supplies, $1,514,200 , 2% $2,376,300 , 3% Debt, $2,577,700 , 3% Utilities, $3,709,200 , 4% Contracted Services, $6,924,800 , 7% Reserve allocations, $5,736,200 , 6% Wages & benefits, $56,853,300 , 62% Library, $6,063,100 , 7% 9

Funding/Revenue Sources Reserve Other, Allocations, $(5,303,500), - Recoveries, Investment $(1,987,400), -2% 6% $(2,148,500), -2% Income, $(981,100), -1% Planning Fees, $(2,770,600), -3% Recreation Revenues, $(6,379,300), -7% Taxation Revenues, $(71,670,900), -79% 10

Exceptions to the Tax Rate: Limited in scope and generally fall into one of the following categories: Opening of New Town Facility/Building  New Services, Service  Improvements/Increases in Existing Service Levels Legislative Change  11

Operating Budget Pressures  Annualization impact of prior year decisions e.g. ARC, staffing  CIP – taxation & planning fees Growth related to new subdivisions assumed   Contractual labour increases  Inflationary increases – contracted services  Winter control maintenance 12

Increase / Tax 2020 Draft Operating Budget (Decrease) Tax Rate Exception Rate Total Base Budget ARC Phase 2 2.19 Wages & benefits 1,597,900 Library annual increase 77,100 Winter Control maintenance 138,100 Vehicle rentals (pending Fleet utilization study) 73,300 Education & training 65,500 Contracted security 65,200 On-going routine software maintenance 63,400 LED savings (192,000) Other 31,100 1,919,600 2.76 Annualization - 2019 approved positions 724,300 1.08 Reserve allocation - approved by Council Dec 20 104,300 0.16 New Staff requested in 2020 651,100 0.97 New/Expanded Services - 2020 688,800 1.03 4,088,100 6.00 Fees (691,200) (1.04) Assessment Growth - Final (657,500) (0.98) Reserve Transfers (debt/strategic initiative/turf) (444,900) (0.66) Library Surplus (373,000) (0.56) (2,176,900) (3.24) Net Base Increase 1,911,200 2.76 2.19 4.95 13

Tax Rate Increase 2020 Average Assessed Home $ 486,600 2020 $ Increase Town (4.95%) $ 81.75 Region (2.5%) $ 73.83 Education $ - Total $ 155.58 2020 Combined rate 2.89% Monthly - Town $ 6.81 Monthly - Region $ 6.15 14

Tax Rate Increase AVERAGE ASSESSED HOME - $486,600 $6.15 $73.83 $6.81 $81.75 MONTHLY - $12.96 ANNUALLY - $155.58 Combined – 2.89% Town of Ajax 4.95% Region of Durham - 2.50% 15

Property Taxes Distribution 14% Region of Durham Town of Ajax 55% 31% Province - Education 16

2020 Draft Operating Budget Tax Rate Non Discretionary Approved Budget Items Audley Recreation Centre Phase 2 2.19 Annualization – 2019 approved positions 1.08 Reserve allocation – approved by Council Dec 20 0.16 Total non-discretionary tax rate increase 3.43 Base budget increase 1.52 4.95 Proposed tax rate increase 13

Tax Rate 6.00 4.93 4.95 5.00 1.40 2.19 4.00 ARC ARC 3.00 3.53 2.00 2.76 BASE 2.75 2.75 2.52 BASE 2.25 1.00 0.00 2015 2016 2017 2018 2019 2020 18

Tax Rate Comparison 7.00 5.90 5.68 6.00 4.95 5.00 2.19 4.00 ARC 3.08 3.00 2.03 2.00 2.00 2.76 1.00 1.00 0.00 Richmond Hill - Clarington - Oshawa - Oakville - Ajax Milton - Whitby - Target Target Approved Approved Approved Target 19

Budget Savings Initiative  Communication to all Town staff to share ideas on how to find efficiencies and savings  22 staff suggestions received to-date  Currently being evaluated  Will review and report back to Council 20

THANK YOU/ QUESTIONS? Sandy Serrao Acting Director of Finance Finance Town of Ajax sandra.serrao@ajax.ca (905) 619-2529, ext. 3324 21