FINANCIAL IMPLICATIONS Community Recreation Programming Assistance Program: $50,000 of the $50,000 budget from GL 01-2-271-210 Community Hall Assistance Program: $18,949.66 of the $50,000 budget from GL 01-2-219-530 *Leaving $31,050.34 remaining in the GL for emergency funding Park, Playground, and Trail Maintenance and Development: $135,000 of the total $135,000 from GL’s 01-2-271-822, 01-2-271-800 & 01-2-271-911 5
RECOMMENDATION That Council receive the Community Grants Allocation Briefing report for information. 6
Update to Action Plan for Ending Racism and Discrimination RFP Award Brittany Mastroianni/ Rob Frost Special Council August 18, 2020
Proposals 7 proposals received • All brought unique experience and background • All met RFP Criteria • Scored independently by three staff • 2
Successful Proponent Lightship Strategies • Partnered with Live Infinitus, and Indigevisor • Total cost: $25,000 • 3
Next Steps - Intro meeting with Diversity Kings (last week) Kick off meeting with staff to finalize - timelines (this week) 4
Recommendation For Council to receive this briefing regarding the RFP award for the Update to Action Plan for Ending Racism and Discrimination for information. 5
2020-21 Capital Investment Plan & Allocation of Gas Tax to Villages Kevin Wheaton, BBA – Financial Analyst Special Council August 18, 2020
Capital Investment Plan (CIP) • Must include the Capital Budgets of the Municipality and the 7 Villages • Must also include the 5-Year Capital Plans of the Municipality and the 7 Villages 2
2020-21 Capital Investment Plan • Sources of funding for each project must be identified • Gas Tax projects must be determined to be Eligible Projects 3
2020-21 Capital Investment Plan • Includes 119 projects planned by the Municipality and the 7 Villages (see Appendix B). 4
2020-21 Capital Investment Plan • CIP prepared from Municipality’s and Villages’ approved Capital Budgets & 5-Year Plans • Gas Tax projects have been determined to be Eligible Projects 5
CIP Budget Year 1 Appendix B, Part 1 lists • all projects planned for 5-Year period • amounts to be spent this year • sources of funding for each project • cumulative spending since 2014-15 6
CIP Budget Years 2 through 5 Appendix B, Parts 2 through 5 lists • all projects planned for 5-Year period • amounts to be spent in each of the next four years • sources of funding for each project 7
Federal Gas Tax Agreement • Current Gas Tax Agreement expires March 31, 2024 • Municipality - $2.1 million in 2020-21 8
Federal Gas Tax Agreement • Municipality must: file Pre-construction Report each year file Annual Expenditure Report (AER) listing details of all Gas Tax spending file 5-Year Capital Investment Plan (CIP) follow a Communications Protocol display approved Gas Tax signage 9
Gas Tax Allocations to Villages • March 2009, Council approved model for allocating Gas Tax funds to Villages • September 2012, Council approved a revision to the model 10
Gas Tax Allocation to Villages 2020/21 TOTAL INFRASTUCTURE Annual Gas Tax VILLAGE VALUE % Allocation Canning $ 7,868,743 5.077% $ 108,408 Kingston $ 13,004,513 8.391% $ 179,171 New Minas $ 26,278,629 16.956% $ 362,057 Port Williams $ 12,469,146 8.045% $ 171,783 Municipality of the County of Kings $ 95,364,308 61.531% $ 1,313,855 Total $ 154,985,339 100.00% $ 2,135,274 11
Gas Tax Allocations to Villages • 4 Villages with sewer or water infrastructure receive automatic allocation • 3 Villages with no sewer or water infrastructure must apply for a portion of the Municipality’s allocation 12
Gas Tax Allocations to Villages • Council must evaluate the requests in light of other Municipal priorities 13
Gas Tax Projects - 4 Villages with Infrastructure • Villages with automatic allocation are not required to spend it in current year • May carry it forward to “save up” for a large project in a future year 14
Village of Canning • No Gas Tax projects for current year • Planning for large sidewalk & water line projects on Chapel Road in the 2021-22 year 15
Village of Kingston • No Gas Tax projects for current year • Saving up for large sidewalk project (Balser Drive) in 2021-22 16
Village of New Minas • Design & construction of two sections of sidewalk on Commercial Street • Installation of 350 RF meter reading boxes on household water meters • Design & construction of 50m of sidewalk to complete Lockhart Drive 17
Village of New Minas • Purchase 200 water meters to be installed at new and existing locations • Purchase & install 2 water fountains in the Louis Millett Community Complex • Construct trail connector for access to the Harvest Moon Trail from Lockhart- Ryan Park 18
Village of New Minas • Refurbish surfaces of tennis courts at Lockhart-Ryan park • Construct dog park along the Kentville- New Minas border at Eaves Hollow • Expand size of fitness centre in LMCC and purchase additional equipment 19
Village of New Minas • Purchase & install wireless thermostats and sensors in gym and conference room areas of the LMCC • Modify entry connecting Commercial Street to the LMCC and add lighting 20
Village of Port Williams • Phase 2 Upgrade of Wastewater Treatment Facility • Decommission Well #1, drill and commission replacement Well #1a • Purchase & install stationary generator for Community Centre 21
Gas Tax Projects - 3 Villages without Infrastructure • All Villages without infrastructure have requested Gas Tax funding • Approved funding would come from Municipality’s share of Gas Tax 22
Village of Aylesford • Construct 600m of new sidewalk on New Road • Construct 450m of new sidewalk on Victoria Rd • Construct 350m of new sidewalk on Pine Avenue 23
Village of Aylesford • Total budget for projects is $757,922 (with Gas Tax funding of $505,279) 24
Village of Cornwallis Square • Construct rest area on the Harvest Moon Trail • Total budget for project is $7,405 (includes Gas Tax funding of $4,937) 25
Village of Greenwood • Design of 165m of new sidewalk for Central Avenue and 270m of new sidewalk for Rocknotch Rd • Construct new sidewalk on Rocknotch Rd • Total budget for projects is $206,397 (includes Gas Tax funding of $137,598) 26
Impact of Requests - 3 Villages without Infrastructure • Total new Gas Tax funding requested by 3 Villages is $373,332 • Village of Aylesford has carried forward an additional $261,947 27
Impact of Requests - 3 Villages without Infrastructure • Village of Cornwallis Square has carried forward an additional $4,937 to 2020-21 and $48,000 for 2021-22 • Village of Greenwood has carried forward an additional $7,598 28
Impact of Requests - 3 Villages without Infrastructure • Council could decide to approve, or decline, Gas Tax funding for any project or all projects 29
Gas Tax Account Balances Appendix A, Page 1 lists • Opening Gas Tax balances • 2020-21 allocation • Gas Tax spending per project • Closing Gas Tax balances 30
Gas Tax Account Reconciliation Appendix A, Page 2 • Reconciles Gas Tax account balance for Municipality and Villages to G/L 31
Implementation • Capital Investment Plan will be filed with the Province • Villages will submit Gas Tax claim documentation for reimbursement, throughout the year 32
Recommendations • That Municipal Council approve the 2020-21 Gas Tax allocations and Gas Tax use for Village projects, as included in Appendix A attached to the August 18, 2020 Request for Decision report 33
Recommendations • That Municipal Council approve the 2020-21 Five-Year Capital Investment Plan, as included in Appendix B attached to the August 18, 2020 Request for Decision report 34
Council Update Report COVID-19 Response Greg Barr, Director of Finance & IT Scott MacKay, Manager of Revenue Mike Livingstone, Manager of Financial Reporting Special Council August 18, 2020
Section 1 Municipal Finance Balanced Budget • Expenditure Line Item Allocation • Cash Flow • Tax Revenue • Assessment Trends • Collection & Bad Debt • 2
Section 1.1 Balanced Budget • The budget must be balanced • Logical tie between service & taxation • Relief measures breaks down logic 3
Section 1.2 Expenditure Line Item Allocation • In-depth review of budget line items • Largely essential service & support • Allocations from Reserves & HR 4
Section 1.2 5
Section 1.3 Cash Flow • Obligation to provide essential Service • Limits to control on cash flow • Future cash flow consideration 6
Section 1.4 Tax Revenue Tax Rate x Property Value = Tax Revenue • Control tax rate not property value • Annual Lift impacts 7
Section 1.5 PVSC Assessment Trends • Residential – Not showing decline Assessment timing • • Commercial – Potential declines 8
Section 1.6 Collection & Bad Debt • Short-term PVSC trends - favourable • Ratepayer ability to pay - uncertain • Collection through Tax Sale • Impact on future services 9
Section 2 Human Resources Impact • Municipality of the County of Kings • Other Municipalities 10
Section 2.1 HR - Within Municipality • 75% FT staff support essential service • Defined scope and uninterrupted delivery of service • Reduction of 6 FTEs for fiscal year 11
Section 2.2 HR - Other Municipalities • Local Towns - similar responses • Similar sized Municipalities - varied but mostly temporary responses • HRM 12
Section 3 Update on Current Position • Outcome of Interim Tax Bill • Initial Cash Flow Projections • Relief Measures Undertaken to Date 13
Section 3.1 Outcome of Interim Tax Bill • Due date extension to July 31, 2020 • Collection stronger than expected • High value properties are delinquent 14
Section 3.2 Initial Cash Flow Projections • Cash balance stronger than projected • Earlier than expected collection • Delays of certain payments 15
Section 3.3 Relief Measures Undertaken • $1,845,079 allocation to reserve • $596,376 utilized for relief • $150,000 held for later • Balance remaining $1,098,703 16
Section 3.3 17
Section 4 Accounting and Reporting • Essence of the COVID-19 Reserve • Supplemental Budget • Utilization & Tracking • Cash Flow Considerations • Financial Reporting 18
Section 4.1 Essence of the Reserve • Reduction in other expenditures • Flexibility • One approved supplementary budget 19
Section 4.2 Supplemental Budget • Approved May 21, 2020 • Identification of line item transfers • Balanced with transfer to reserve 20
Section 4.3 Utilization & Tracking • Separate from operating budget • The reserve is not cash • Arriving at the end balance 21
Section 4.4 Cash Flow Considerations • Avoiding cash flow stress • Protecting Municipal cash flow • Settling the end balance 22
Section 4.5 Financial Reporting • Internal - Reserve specific reporting • External - Consolidated statements • Financial Condition Indicators (FCIs) 23
Section 5 Go Forward Considerations • Provincial Loan Program • Ratepayer Loan Program • AVCC Consultation • Loan Administration 24
Section 5.1 Provincial Loan Program • Announced April 28, 2020 • $380 Million through MFC • Help municipalities with financial losses 25
Section 5.2 Ratepayer Loan Program • Enabled by the Provincial program • Low uptake in other municipalities Municipal Government Act • Risk factors: Lien rights Repayment priority High risk borrowers 26
Section 5.3 AVCC Consultation • Determine program need • Focus groups & survey • Results not yet available 27
Section 5.4 Loan Administration • Separate from tax accounts • Specific requirements • Managed under current staff capacity 28
Section 6 Conclusions • Provincial Loan Program - Not at this time • Ratepayer Loan Program - Not at this time • Further COVID-19 Responses - Hold • Final Tax Bill - Due date extension 29
Recommendations That Municipal Council approve a due date of October 31, 2020 for the 2020/21 final property tax bills being issued in September 2020. That Municipal Council approve that the interest charges for fiscal 2020/21 tax accounts not be levied for the month of September and the month of October, provided that full payment is made on or before October 31, 2020. 30
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