HALDIMAND COUNTY 2017 Tax Supported Operating Budget Committee of the Whole March 7, 2017
Council Approved Budget Guidelines When establishing/approving the annual budget guidelines, a four year projection (2015 to 2018) was provided to understand future budget pressures. 2017 guidelines were approved as highlighted below: Total Residential Property Tax Impact of 2.50% (would require some mitigation based on known drivers) Use of “assessment growth” and “education room” to offset total tax impacts New Initiatives for new/enhanced services would only be considered during the budget review if the net levy impact can be mitigated on a consolidated, corporate wide basis. Funding for Council approved New Initiatives would be considered above and beyond the base budget requirements. Separate report was presented to Council to review and approve Fees and Charges (October 2016) 2017 Draft Budget
“Unbudgeted Expenditures” Municipal Act provides ability to not budget for specific expenditures: Amortization of Capital Assets: No specific costs related to annual amortization of County’s assets; does include “contributions” to Capital replacement Reserves County has a multi-year financing plan to address potential funding shortfalls Post Employment Benefits: Includes WSIB, sick leave payouts and benefit payouts after active employment The County has sufficient budget to accommodate current required sick leave and benefit payouts (actuarial liability indicates shortfall); draft budget includes increased WSIB contributions to address estimated shortfall Solid Waste Landfill Closure and Post-Closure Costs: Includes PV of future costs to maintain landfill sites Capital and Operating post closure costs have been included in the 2017 budget based on projected annualized costs 2017 Draft Budget
Major Drivers 2017 2017 Levy Impact Increase/(Decrease) $ % Municipal Levy (prior year) 59,616,750 Major Drivers: Base budget adjustments – controllable: -WSIB Self-insurance increase for PTSD claims & VFF presumptive liability 273,430 0.46% -Solid Waste Operations – reduced non-residential waste 305,400 0.51% -Other controllable base cost adjustments 426,430 0.72% Total Base budget adjustments – controllable 1,005,260 1.69% Base budget adjustments – uncontrollable 157,920 0.26% Streetlight Conversion to LED – annualized operational savings (313,100) (0.53%) Ontario Municipal Partnership Fund unconditional grant increase (151,400) (0.26%) Social Assistance Provincial Uploading Net of Caseload #/$ Increase (complete by 2018) (109,500) (0.18%) Capital Levy Increase 596,170 1.00% Council approved staffing adjustments – temp. FTE and/or market wage adjustments 118,380 0.20% Net impact of other Council approved initiatives (pre-2017 budget approval) (160,970) (0.27%) New/Enhanced Service Initiatives 200,940 0.34% Municipal Levy Increase 1,343,700 2.25% Mitigation Measures: Phase out Haldimand Hydro Dividend Impact from 2015 500,000 0.84% OPG Taxation – 3 year phase-in of reduced revenue 293,000 0.49% Revised Municipal Levy Increase 2,136,700 3.58% Draft Municipal Levy 61,753,450 Less: Estimated Assessment Growth (0.90%) Less: Estimated Education Tax Room (0.50%) Total Estimated Residential Tax Rate Impact 2.18% 2017 Draft Budget
Assessment & Tax Impacts Year 2014 2015 2016 2017 Avg. Tax Impact 2.95 2.79 2.20 2.18 2.53 (%) Assessment 1.26 0.74 1.12 0.91 1.01 Growth ($) Education Tax Room 0.88 0.80 0.44 0.50 0.66 (%) 2017 Draft Budget
Impact on Average Residential Home 2016 2017 PRO ROPE PERT RTY TAXE XES S $3,08 ,082 PRO ROPE PERT RTY TAXE XES S $3,150 ,150 ASSE SESSE SED VALUE $241,100 ASSE SESSE SED VALUE $245,90 ,900 INCREASE $67 OR 2.18% (APPROX. $5.60/MONTH) 2017 Draft Budget
Other Factors Impacting Property Taxes Impacts on Property Taxes: Assessment changes/shifts Municipal Levy Requirements Education Tax Rates Tax Policy Decisions Tax Ratios – levy restrictions on multi-residential properties Municipal flexibility over Vacant Unit Rebate program and reductions for vacant sub-classes Amendments to collectors role (i.e. assessment changes) 2017 Draft Budget
Average Residential Tax Bill - Allocation by Services Based on 2017 Draft Tax-Supported Operating Budget 21.1% Capital Levy 14.6% Roads Maintenance & Winter Control 14.3% Education Property Taxes 8.9% Police 6.8% Governance/Corporate Support/Financing 5.7% Fire 5.3% Facilities and Parks Operations 5.2% Garbage & Recycling 3.2% Ambulance 2.0% Grandview Lodge 1.6% Libraries 1.5% Uncontrollable Social Assistance & Child Care 1.4% Social Housing Controllable 1.2% Tourism & Economic Development 1.2% Planning & Development 1.1% Public Health Services 1.1% By-law, Animal Control & Crossing Guards 1.1% Roads Engineering & Construction 0.8% Municipal Property Assessment Corp. 0.7% Conservation Authorities 0.5% Community Development & Partnerships 0.4% Heritage & Culture 0.3% Municipal Drains & Storm Sewers $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 2017 Draft Budget
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