DUFFERIN COUNTY 2019 BUDGET PRESENTATION 2 We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
AGENDA Review Possible Budget Changes Council to determine their desired final 2019 end-result in terms of 2019 alone taking the longer-term into consideration We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Some Perspective Changing net 2019 Budget by 1.0% requires $370,880 data from January presentation: NET TAX LEVY Adopted 2018 Draft 2019 difference Initial Position $37,089,000 $39,669,000 $ 2,580,000 6.96% Operations $29,348,000 $30,433,000 $ 1,085,000 Capital Levy $ 7,741,000 $ 9,236,000 $ 1,495,000 1.4%, $545,000 of the Operations amount is from items approved in 2018 Indicates most focus needs to be on Capital Levy We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Some Perspective Data from January presentation: 6.96% Draft budget increase 1.90% Assessment Growth 5.06% = $18.65 per 100K CVA Draft Taxpayer increase We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Some Perspective Some changes being presented now were discussed at Committees, plus some new changes are being proposed tonight. Changes are grouped on the next slides based on the nature of the change: Refinements of estimates, after more in-depth review of I. historical results Changes that are based on consideration of “Organizational II. Capacity”, a concept that was discussed at Committees Changes that are based on the nature of specific 2019 capital III. projects We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
PROPOSED CHANGES A Change 2019 DRAFT Changes based on review of recent 2019 DRAFT Amount (see page 11) (as amended) historical results, refined estimates - 45,079,000 Non-Tax Revenues - 100,000 #1 revise Treasury Dep’t revenue estimates - 45,179,000 -100,000 88,518,000 Total Expenses #2 reduce Employee Benefits estimates -200,000 - 200,000 - 35,000 #3 reduce some Legal Fees estimates 88,283,000 - 35,000 -3,770,000 Reserves and Other Transfers - 35,000 #4 apply Reserve to Climate Change section - 3,805,000 - 35,000 Subtotal Tax Levy 2019 39,299,000 5.96% Increase after Growth = Taxpayer Impact = 4.06% = $14.92 per $100,000 CVA We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Changes 2019 1%=$370,880 The next set of Proposed Changes come from giving some consideration to the problem of “Organizational Capacity”. CAPITAL TAX LEVY : 2017 = $6.814 M, 2018 = $7.741 M DRAFT 2019 = $9.236 M (increase of $1.5 M) Throughout the 2019 Budget package, in many Capital Asset Fund tables, the Total Capital Work section shows 2018 Actual below 2018 Budget. AND FURTHER, in Work Plan Summary tables, there are multiple examples of Footnotes that say “work postponed”. This indicates the capacity of the County, as an organization, to accomplish all the approved capital projects, has been stretched to its limits, and beyond. For 2019, a more realistic target for capital projects is required, taking into consideration a more reasonable expectation of capacity to do the work. We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
PROPOSED CHANGES B Change 2019 DRAFT 2019 Changes based on review Page 2019 DRAFT Amount (as amended) Ref. (as amended) of “Organizational Capacity” - 45,179,000 Non-Tax Revenues - 45,179,000 88,283,000 Total Expenses -100,000 - 100,000 #5 reduce Capital Levy for Oaks 128 #6 reduce Housing Capital Levy 115 -250,000 - 250,000 - 50,000 #7 reduce JH Daycare Capital Levy 120 - 50,000 - 30,000 #8 reduce Info-Tech. Capital Levy 45 - 30,000 - 170,000 #9 reduce PW Capital Levy 82-85 87,683,000 -170,000 -3,805,000 Reserves and Other Transfers - 3,805,000 4.34% Subtotal Tax Levy 2019 $38,699,000 Increase after Growth = Taxpayer Impact = 2.44% = $ 9.09 per $100,000 CVA We manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Changes 2019 1%=$370,880 After Changes #1 – 9, Draft 2019 Budget is at a 2.44% Taxpayer Impact (= $9.09 per 100,000 CVA) There are some optional further changes to consider : Adjust Salary Grid Market Review to 55 th (not 50 th ) percentile. This change will increase the 2019 Budget. Use Reserves (Rate Stabiliz.) to partially finance the $800K Courthouse Chimney (CC) project. REASON CC is a one-time expense, resulting in an unusually high Capital Levy for Facilities in 2019 (pages 91, 92) Precise amount to take from Reserve for CC is optional. We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
PROPOSED CHANGES C 2019 DRAFT Page 2019 DRAFT Change 2019 Changes - Other Amount (as amended) Ref. (as amended) - 45,179,000 Non-Tax Revenues - 45,179,000 87,683,000 Total Expenses #10 Amend Salary Adj. to 55 th percentile 22, 27 100,000 100,000 87,783,000 -3,805,000 Reserves and Other Transfers -300,000 #11 Use RSR to finance CC project, in part 91, 92 -300,000 -4,105,000 Subtotal Tax Levy 2019 38,499,000 3.80% Before Growth 2019 Increase after Growth = Taxpayer Impact = 1.90% = $7.08 per $100,000 CVA We manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
PROPOSED CHANGES C 2019 DRAFT Page 2019 DRAFT Change 2019 Changes - Other Amount (as amended) Ref. (as amended) - 45,179,000 Non-Tax Revenues - 45,179,000 87,683,000 Total Expenses #10 Amend Salary Adj. to 55 th percentile 22, 27 100,000 100,000 87,783,000 -3,805,000 Reserves and Other Transfers -400,000 #11 Use RSR to finance CC project, in part 91, 92 -400,000 -4,105,000 Subtotal Tax Levy 2019 38,399,000 3.55% Before Growth 2019 Increase after Growth = Taxpayer Impact = 1.65% = $6.05 per 100,000 CVA We manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Longer Term View IF the 2019 net Tax Levy is set at $38,499,000 take note that: Per page 11 of the Budget materials, Levy for 2020 showing as $41,454,000 (7.7% higher) Levy for 2021 showing as $42,378,000 Levy for 2022 showing as $43,316,000 Future numbers will be re-evaluated based on 2019 results Circumstances will change by the time these budgets come up. As news comes in from Province, staff reports will be brought to Council regarding County’s options to respond We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Questions & Comments We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Concluding Points As figures on page 14 indicate, the County’s Capital Levy ought to reach a “Goal” of about $10 million from taxes per year, eventually, to address its Infrastructure Gap. Additional progress continues in 2019, maintaining the momentum from 2016, 2017, 2018 This 2019 Budget still leaves substantial amounts in Reserves (see page 8) to protect the County against anticipated revenue losses coming from the Province, and/or from an economic downturn We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
Questions/Discussions Recommended Motion Changes #1-11, as presented herein, be adopted AND THAT staff be directed to prepare the Estimates Bylaw, for March Council, with the Dufferin County Tax Levy for 2019 set at $38.499 million. We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions
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