Public Meeting April 10, 2019 Service Highlights Budget Process - PowerPoint PPT Presentation

Public Meeting – April 10, 2019

 Service Highlights  Budget Process  Tax Levy Explained  Budget Highlights for 2019  Revenues  Expenditures (Operating and Capital)  Tax Rate Impact  Budget and Strategic Plan  2019 and Future Budget Challenges

 Transportation Services ◦ Patrol, Maintenance and Repair of 437 km of Unpaved and 46 km of paved roads including Winter Maintenance ◦ Improved Dust Control, gravel for repairs, and Phragmites Control in 2019  Prot otec ection S Services es  Fire and Police protection for 3,866 Residents

 Environme menta tal S Serv rvic ices  Waste and Recycling collection for 1,646 households and 95 Business properties and operation of the landfill  Rec ecreat ation an and Cultural S Ser ervices es  Maintenance and operation of parks and recreational facilities such as the Community Centre, Pool, South Dunwich Hall, Ball Diamonds, Theatre, Soccer Fields, Walking Path and the new Splash Pad.  Hea Health S Ser ervices  Maintenance and operation of the Medical Centre and Cemeteries.

 Admi minis istrativ ive S Serv rvic ices  Governance of the municipality  Assurance regarding compliance with legislation, billing and collection for municipal services, application for government funding, advocacy for the municipality and its residents  Planning and Deve velopm pment Servi vices  Building inspection and issuance of permits  Planning and zoning services provided  Economic Development  Heritage Committee funding  Drain maintenance and construction supervision and governance under the Drainage Act

 Donated $22,500 to a variety of organizations including:  Wallacetown Agricultural Society, Dutton Dunwich Horticultural Society, and Backus-Page House Museum  Allocated $120,000 toward a variety of organizations and programs including:  Lower Thames Conservation Centre and West Elgin Arena  Provided summer students with employment and the continued support of programs and community events, such as Canada Day Celebrations and the Santa Claus Parade

 At the centre of the municipal finance system is the budget. Through the budget, the council decides the municipality's priorities for the next year by setting aside money for each program or service. The budget is the single most important policy decision council makes each year. Careful budget planning and control mean better services for the residents. The budget of a municipality reflects its policies.  The Municipal Act - governs what we can do and cannot do and every aspect of our operation  Required to have a “ Balanced Budget ”

Tax Rate Increase • Expenditures Net Budget/ • Non-Property Tax Levy Tax Revenues Assessment Growth

 Budget target of 3% tax levy increase was provided by Council  Department submission of budget requests  Unedited first draft was reviewed with Council  Detailed review by the Finance and Department managers  Second, third, and fourth drafts were reviewed/prioritized/ amended by Council  Public Budget meeting

 Tax Rates are set by Council  Taxes need to increase to balance the budget and fund the Municipality.  Prior year tax rate increases: ◦ 2019 – 0.05% ◦ 2018 – (2.94)% ◦ 2017 – 1.86% ◦ 2016 – 3.0%

 Total budgeted Tax Levy increase – 4.36% and is broken down as: ◦ MPAC Assessment growth - 4.31% ◦ Tax Rate increase – 0.05%

2019 Municipal Tax Levy 2019: Tax Levy Increase/(Decrease 2018 ) % Change % Change % Change Tax Levy MPAC Tax Rate Total Levy Total MPAC Tax Rate Municipal $ 3,562,423 $ 153,647 $ 1,927 $ 3,717,999 4.36% 4.31% 0.05% County 2,555,305 110,134 19,420 2,555,305 5.07% 4.31% 0.76% Education 914,860 39,430 - 954,290 4.31% 4.31% 0.00% Total $ 7,032,588 $ 303,211 $ 21,348 $ 7,227,594 4.62% 4.31% 0.30% $324, $324,559 559 Munici cipal al L Level $155, $155,376 376 or 47. 47.9% 9%

Education 13% Municipal 52% County 35%

PROPERTY CLASS % CHANGE RESIDENTIAL 4.27% MULTI RESIDENTIAL 1.78% COMMERCIAL OCCUPIED -2.53% INDUSTRIAL OCCUPIED 30.94% COMM. VACANT LANDS 49.77% COMM. EXCESS LANDS 75.92% PIPELINES 2.80% FARMLANDS 5.34% MANAGED FORESTS 29.67% NEW CONSTRUCTION COMMERCIAL 1.67% TOTAL WEIGHTED ASSESSMENT GROWTH 4.31%

AMOUNT TO BE RAISED 3,717,799 2019 TAX RATE CALCULATIONS - OWN PURPOSE % TAX OF FULL WEIGHTED TAX TAX PROPERTY CLASS ASSESSMENT RATIO RATE ASSESSMENT RATE LEVY 2019 Assessments RESIDENTIAL 333,717,698 1.000000 100% 333,717,698 0.008056 2,688,338 FARMLANDS 410,678,737 0.230000 100% 94,456,110 0.001853 760,912 MANAGED FORESTS 1,365,432 0.250000 100% 341,358 0.002014 2,750 MULTI- RESIDENTIAL 4,983,000 1.999999 100% 9,965,995 0.016111 80,283 COMMERCIAL - OCCUPIED 9,457,725 1.637600 100% 15,487,970 0.013192 124,767 COMMERCIAL NEW CONSTRUCTION FULL 925,959 1.637600 100% 1,516,350 0.013192 12,215 COMMERCIAL NEW CONSTRUCTION EXCESS - 1.637600 100% - 0.013192 - COMMERCIAL - EXCESS 186,300 1.637600 100% 305,085 0.013192 2,458 COMMERCIAL - VACANT 383,950 1.637600 100% 628,757 0.013192 5,065 INDUSTRIAL - OCCUPIED 676,055 2.225100 100% 1,504,290 0.017925 12,118 INDUSTRIAL - NEW CONSTRUCTION FULL - 2.225100 100% - 0.017925 - INDUSTRIAL - EXCESS - 2.225100 100% - 0.017925 - INDUSTRIAL - VACANT - 2.225100 100% - 0.017925 - PIPELINE 3,133,464 1.144600 100% 3,586,563 0.009221 28,892 765,508,320 461,510,176 3,717,799 EXEMPT 21,419,814 0.00805573 - COMMERCIAL PIL - FULL 978,121 2018 amount raised 3,562,423 Commercial PIL - GENERAL 1,364,000 COMM PIL EXCESS 166,750 NEW COMMERCIAL TAXABLE - FULL, SHARED 7,853,175 Increase (Decrease) 155,376 NC COMM PIL EXCESS 432,075 FARMLAND TAXABLE FULL, SHARED PIL 23,225 4.36% LANDFILL PIL 838,500 INDUSTRIAL PIL 17,725 798,601,705 2018 Increase (Decrease) 107,620 TOTAL PER MPAC 798,601,705 3.12%

Penalties and interest on taxes Province of Ontario 2% 9% Other municipalities 10% Federal 1% User charges 4% Property Taxation (Municipal) 66% Payments in lieu of taxes 1%

Year Funding 2013 $1,027,200 2014 $899,900 2015 $727,200 2016 $619,900 2017 $526,400 2018 $447,500 2019 $403,200 2019 2019 Impact o on Municip icipal Ta Tax x Levy = = 1. 1.24% 24% Increase

 Total operating expenditures are $5,678,384  The largest department operating expenditure is transportation ($2.17M) followed by protection services ($1.17M).  Consistent with other Municipalities, the largest operating expenditure is salaries and benefits ($2.2M).

Planning and development 4% Recreation and cultural services General government 9% 16% Health services 5% Environmental services 7% Protection of persons and property 21% Transportation services 38%

 Increase in Tax Revenue 155,376  OMPF Decline (44,300)  OPP Increase (3,295)  LTCA Levy Increase (1,513) Remaining Tax Increase 106,628 2.98% 2.98% Ta Tax Lev evy Incr crease

Water Trunk Line Replacement - Currie Road $ 300,000 Currie Road Waterline Resizing $ 200,000 Cowal Road Waterline $ 250,000 $ 750,000 Administration Server Upgrades $ 6,000 Roof Repair $ 6,000 $ 12,000

Public Works Pioneer Line - Microsurface $ 180,000 Annie Street - Currie to Wesley Rehabilitation $ 150,000 Homestead Bridge Replacement $ 714,159 Homestead Hill Repair $ 50,000 Tandem Plow Truck Replacement $ 325,000 LED Conversion at Roads Garage $ 16,400 Brine Pond $ 75,000 $ 1,510,559 Parks & Recreation Splash Pad $ 150,000 LED Conversion at Community Centre $ 22,400 Community Centre Upgrades $ 20,000 $ 192,400

Developer Recovery, 8.1% Property Owner Recovery, 10.1% Debt, 33.9% Donations, 6.1% Tax Revenue , 6.0% Fed Gas Tax, 4.8% Grants, 31.0%

Tax Rate and Assessment Impact on the average Residential Property 2017 2018 2019 Change Average Assessed Value 183,133 196,585 204,609 8,024 Taxes: Municipal Taxes $ 1,514.93 1,582.78 1,648 65.50 County Taxes 1,120.50 1,181.85 1,230 48.24 Education Taxes 327.81 334.19 348 13.64 Total Taxes 2,963.24 3,099 3,226 127.38

Tax Rate and Assessment Impact on the average Farm Property 2017 2018 2019 Change Average Assessed Value 394,702 458,638 524,494 65,856 Taxes: Municipal Taxes 816.27 923.17 971.79 48.63 County Taxes 603.75 689.32 730.72 41.40 Education Taxes 176.63 194.92 209.80 14.88 Total Taxes 1,596.65 1,807 1,912 104.90

Strategic Priority To focus on financial management and planning in order to retire debt and increase revenues allowing the municipality to maintain and improve upon its services. Increased grants were obtained for 2019 Capital and services were increased in the form of a Splash Pad. No Services were cut in the 2019 Budget