Municipality of North Perth 2018 Capital and Operating Budget FINAL - PDF document

Municipality of North Perth 2018 Capital and Operating Budget FINAL REPORT Presented by: Matt Duncan, Councillor & Budget Chair Dated: April 23, 2018 Municipality of North Perth 330 Wallace Avenue North Listowel, ON N4W 1L3 P: 519-291-2950 F: 519-291-5611 www.northperth.ca

Municipality of North Municipality of North Perth 2018 Budget Presentation to Council Table of Contents Budget Chair’s Review ................................................................................................................ 3 2018 Operating Budget ............................................................................................................... 3 2018 Project Budget .................................................................................................................... 4 Impact on Property Taxes ........................................................................................................... 4 2018 Combined Operating Budget ............................................................................................. 6 2018 Combined Project Budget .................................................................................................. 7 Estimated 2018 Tax Rate Schedule .......................................................................................... 10 2017 Budget Presentation to Council

Municipality of North Budget Chair’s Review On behalf of Council, I am tabling the 2018 Budget for Council approval. Through the 2018 Budget Process, members of Council and staff have worked to find a balanced position between the need to support important municipal services while limiting tax increases. Council started the 2018 Budgeting Process with a policy statement and pre-budget public survey, followed by a visioning session. The visioning session gave each member of Council the opportunity to outline their concerns about municipal services provided and the delivery of those services in North Perth. With the development of the Pre-Budget Survey, a Budget webpage and the hosting of a Budget Open House, the public were given the opportunity to provide input on the proposed 2018 Operating and Capital Budgets. 2018 Operating Budget Prior to the budgeting process, the Province announced an increase in North Perth’s annual Ontario Municipal Partnership Fund (OMPF) revenue transfer of $46,500.00. This is the first time in several years that direct provincial funding cuts will not have a direct impact on the local municipal budget. The total Operating Budget for 2018 is to be set at $13,605,252.54 for services provided by tax dollars. The following chart illustrates the allocation of North Perth tax dollars to various services: 2018 Net Operating Budget Parks & GenAdmin/EcDev/ Recreation Clerk/Fin/ConsAuth/BIA $1,837,575.80 $604,184.55 14% 4% Police Landfill $2,431,266.00 $221,991.10 18% 2% Library Roads, Storm $882,227.78 Drainage & 6% Cemeteries $6,296,027.00 46% Fire $1,331,980.31 10% 2017 Budget Presentation to Council

Municipality of North Other operational budgets totalling $6,979,867.26 are solely funded by user fees, including: Childcare Services, Building Department, Water Services and Wastewater Services. The BIA levy covers $98,040.00 in operational expenditures for that purpose. New for 2018 is an area rated levy to provide for storm water management (SMS) services in the built up area of Listowel, including some of the fringe development. This levy has been estimated at $200,000.00. The service and levy are included as part of the operating budget. 2018 Project Budget The 2018 Budget includes numerous and significant ongoing initiatives that prepare for the long- term viability and sustainability of North Perth. Construction for 2018 includes: • Completion of the new Monkton Fire Station • Elma Street West (Victoria to Livingstone) Reconstruction and Victoria Street Reconstruction (Design in 2018, Construction in 2019) • Binning Street West Reconstruction • Wastewater Treatment Plant and Biosolids Upgrades (Two year project for $14 million) • Completion of the Spinrite Field/Park at the Steve Kerr Memorial Complex Numerous other projects are also planned with an overall project cost estimate of over $13 million. This includes numerous carry over projects from 2017. The ongoing project work is being funded by Development Charges revenues, segregated surplus, generous corporate and personal donations, the tax levy and provincial/federal grant funding. Interim to medium term financing will be required given the volume of work being completed. Maintaining and improving North Perth’s municipal infrastructure will continue to require significant and planned investment. Impact on Property Taxes North Perth continues to grow and has generated net growth in property assessment over the past year of nearly 1.12%. The North Perth Building Department had another record-setting year in 2017, issuing 434 building permits, which included the creation of 183 new residential dwelling units. This increased tax base allows the costs related to growth to be applied across a greater number of properties. MPAC reassessed all properties in 2017 based on January 2016 values. Increases in property value are being phased-in over four tax years (2018 is the second phase-in year), resulting in staggered, ongoing tax impacts. Decreases in value were applied in full immediately in 2017. Depending on assessment changes, tax impacts will vary from property to property. An individual’s property tax impact will vary depending on whether their property assessment was higher or lower than the overall assessment increase. The value of farmland has increased significantly in recent years and farm properties will experience increases in property taxes due to increased property values. 2017 Budget Presentation to Council

Municipality of North The North Perth 2018 tax levy increase is $1,002,391.77 for local municipal purposes. However, your total property tax bill reflects taxes levied by the Municipality of North Perth, the County of Perth and local school boards. Specifically, for every residential tax dollar received in 2018, approximately 59 cents is kept by North Perth, 21 cents will be transferred to Perth County and 20 cents will be transferred to local school boards. When all three 2018 levy requisitions are combined, the overall levy increase in North Perth will be about 5.7%. Due to assessment shifts, the residential levy impact is less than 3.63% or approx. 27 cents/day. Actual % change will depend on individual assessment changes and specific relative tax class. Our final budget addresses operational and infrastructure needs to maintain anticipated municipal service levels required by our community, while managing past provincial revenue cutbacks in OMPF funding (although this year North Perth received a slight increase). Members of Council will be closely monitoring the 2018 financial statements to ensure that the Municipality is sustaining the desired levels of services, while moving forward with current development to ensure growth and prosperity during 2018. On behalf of Councillor David Ludington, Vice-Chair, and myself, I thank members of Council and our staff for working through the challenges we faced during our 2018 budget deliberations. Yours sincerely, Matt Duncan Councillor and Budget Chair 2017 Budget Presentation to Council