Tax and Area Rates Budget 2020 January 16, 2020 Budget Cycle for - PowerPoint PPT Presentation

Tax and Area Rates Budget 2020 January 16, 2020

Budget Cycle for 2020 • Dept. Managers – Draft Capital Projects • Capital & Studies Presentation – Nov. 21 • Assessment Roll Received Dec. 2019 • Impacts Presentation – Dec 12, 2019 • 2019 prelim. year end – Jan. 13, 2020 • Consolidated Budget Presentation – Jan.16 • Municipal Budget Adoption – Jan. 28, 2020

Financial Summary • Year End – preliminary – Generally on track for good year end numbers – Bldg. Dept. – great activity, transfer to reserve • Deficit updates – Fire dept. – small accum. revenue – Winter Control – deficit - big impact on $$$ – Arenas – deficits at both facilities

Assessment

Assessment Summary • True growth – 1.27% increase in actual assessed values – Yields $131,401 in new tax dollars • Assessment Roll received – 4.58% increase in overall current value assessment (CVA) phase-in assmt. • CVA phase-in – Last year of four year process

Tax Levy Increase • What is 1% increase in spending in 2020? • $71,500 of new expenditures equals a 1% increase in the net tax levy (adj. for real growth)

Grants and Other Funding

Provincial Grant Details • O.M.P.F . grant in 2020 $1,054,600 • O.C.I.F . grant for 2020 expected to be approx. $190,000 (currently unknown) • Modernization Grant supports technology • Mainstreet Grant - public realm Youngs Pt

Federal Grant Details • Continue use on capital roads projects – Only eligible on contracted services and materials $517,536 – This is currently the only stable source of outside funding for road reconstruction Plus One Time $$$

Capital Purchases & Projects

Capital Budget Summary

Capital – Amendments • See narratives dept # 6 for changes • Summary sheet for funding changes • 2019 year end still underway - $ impacts • Trail construction – delayed - future

Studies – 2020 Summary Comments

Studies and Plan Overview • Cultural Master Plan • Building Facilitation • Flood Plan Mapping projects - with ORCA – completion in 2020 • Asset Management Plan – work plan, preparing for 2021

Reserves

Reserve Overview

Impacts

Tax Levy Increases • General Government $ 54,645 • Facilities $ 12,500 • Economic Development $ 40,786 • Fire Services $ 52,927 • Roads & Winter Control $103,276 • Waste Mgmt. $ 15,000 • Stormwater $ 28,568 • Parks & Arenas $ 54,121 • Library Services $ 10,580 • Total $372,404 • Less: Assessment Growth ($131,401) • Net Tax Levy Increase $241,003

Cuts/Rationale to achieve 3.37% • Fleet (using proceeds of sale) $21,693 • Fleet (reduced reserve contribution) $23,000 • Transit (initial phase in) $80,000 • Waste Mgmt. (savings applied) $25,000 • Arenas – transfer to equipment $30,000 • Arenas – remaining deficits $76,509 • Chats w/ Dept. Heads $11,000 • Finance fine tuning of estimates (net) $20,000 • Addt’l Accumulated Revenue Use $30,000 $317,202 • Total

ORCA Levy & Police Area Rates

Otonabee Conservation • ORCA Operating Levy – up 5.5% • Selwyn portion of total levy $230,735 Up $10,122 over 2019 – 4.6% An outside levy with separate tax rate.

OPP Costs in Rural Wards • 2018 year-end adjustment – Charge of $11,297 impacts accum. revenue • OPP estimate for 2020 received • Impact on Smith and Ennismore only Small Area Rate Levy Reduction in 2020

Police Costs in Lakefield • Operating under contract relationship – Have 2020 # but waiting on schedule of costs • No planned contribution to reserve, only accum. revenue in 2020 • No additional chargebacks received from City in 2019 Small Area Rate Levy Reduction in 2020

Impact on the Typical Homeowner

2020 Tax Increases - Rural Annual impact on typical homeowner 314,173 • General Municipal Increase $25.25 – an increase of 3.81% • OPP Area Decrease -$ 7.19 – a decrease of 3.15% • Total Municipal - Rural $18.06 – an increase of 2.03 %

2020 Tax Increases - Village Annual impact on typical homeowner 314,173 • General Municipal Increase $25.25 – an increase of 3.81% • Police Area Decrease -$26.91 – an decrease of 4.79% • Total Municipal - Village -$ 1.66 – an decrease of .14 %

Department Highlights & Next Steps

General Government • Communications • Technology

Economic/Community Development • Increased Communications efforts • Implementing Marketing Plans • CIP Financial Incentives Increased – $6,250 increase (year 2 of 4) Sufficient CIP Reserve Balance allowed for a four year phase-in for this initiative.

Fire Service • Call volumes increasing – growing medical calls

Building Department • Busy year in 2019 yields positive results • No C.P.I increase on permit fees in base 2020 budget Service Delivery Review

Roads • Road side maintenance in advance of road construction • An increase to Resurfacing to address increasing contract costs and utilize one time AMO Gas Tax funding $100,000 funding increase to Roads Resurfacing in 2020.

Winter Control • Sanding & salting dominates winter operations • Need to address requirement for sufficient contingency reserve Over $173,000 used in reserves and transfers in 2019

Public Works Fleet • OMPF impacts on replacement reserve • Equipment rates increase will affect operating budget • Considerations will need to include: – Greater consistent utilization of equipment – Seasonal rentals for specialized equipment instead of replacement

Transit • Implementation of pilot community transportation program • Promotion and responsiveness to maximize ridership Maximize partnerships

Waste Management • Collection contract extension costs • Construction & Demolition Debris costs phase-in completed • Addressing significant brush stock pile • Selwyn Landfill Site operating at break-even Consolidation in the private waste management sector could have larger impact. No Private Road Collection Charges

Stormwater • Establishing a small levy component for a large asset class OCIF grant used

Arena Deficits • Developing a sustainable approach – Initial plan to reduce deficit • More taxation to offset AODA and insurance costs • Continued efforts to increase revenues • Ongoing needs to be accountable and find energy savings & efficiencies – Future phase-in plan includes: • transfer to offset equipment replacement • Re-evaluating the remaining operating deficits

Library Services New Board to begin new Strategic Plan • consider Trent Centre for Aging and Society report and recommendations • supporting volunteers efforts into the future • developing new metrics for measuring Library impact (more than circulation #s)

Infrastructure Investments • Ontario Regulation 588/17 – Mandated to use lifecycle and risk management – Greater documentation and tracking of levels of service – Looking to the long term for capital investments and funding model (capital levy report as part of asset mgmt.)

Recommendation • That the report of the Manager of Financial Services entitled Taxation Budget 2020 – Draft be received for information; and • That, based on meeting discussions, the Manager of Financial Services prepare a report for presentation to Council at a date to be determined by Council supporting the adoption of the 2020 Taxation Budget.

Questions?