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Home My WebLink About2017-11-17 Special Budget Workshop Special General Government Committee Minutes November 17, 2017 - 1 - If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Minutes of a special meeting of the General Government Committee held on Friday, November 17, 2017 at 9:00 AM at the Diane Hamre Recreation Complex. Present Were: Mayor A. Foster, Councillor S. Cooke, Councillor R. Hooper, Councillor W. Partner, Councillor C. Traill, Councillor W. Woo Regrets: Councillor J. Neal Staff Present: A. Allison, T. Cannella, J. Caruana, D. Crome, A. Greentree, F. Horvath, R. Maciver, M. Marano, N. Taylor, G. Weir, L. Gordon, H. Lynch, B. Radomski, L. Kent 1 Call to Order Mayor Foster chaired this portion of the meeting. 2 Declaration of Interest There were no disclosures of pecuniary interest stated at this meeting. 3 Finance Department 3.1 Verbal Report from the Director of Finance/Treasurer Regarding the 2018 Budget Nancy Taylor, Director of Finance/Treasurer introduced today’s agenda. Ms. Taylor provided a verbal report, accompanied by a PowerPoint presentation, highlighting the 2018 Budget. Financial Indicators – BMA Statistics o The Director/Treasurer committed to providing Members of Council with an electronic copy of the BMA Study once it is has been received. o Property Tax comparisons and assessment -- Clarington’s 2017 Assessment composition provided. Staff will continue to assess the various splits (i.e 90/10, 80/20, etc.) and the impact this has on tax rates. o Clarington’s property taxes is at 3.7% as a percentage of income which is lower than Durham lakeshore municipalities o Provided a tax comparisons for bungalows, 2 story homes and senior executive homes and an overall 5 year trend. The Director/Treasurer Special General Government Committee Minutes November 17, 2017 - 2 - indicated that there was an upward trend in affordability in 2017, with Clarington being second lowest for senior executive homes. o Average household income is high in Clarington and the tax burden is in low to mid-range overall and low in comparison to GTA group and study average. Net levy per capital out of the 102 participates we are at 32. 1% = $535,000 for the 2018 budget. Historical Trends o The share of the property tax bill remains as follows: 49% Region 19% goes to School Board 32% remains with Clarington o The assessment growth is at 3.05%, being strong, which is primarily residential that came on the roll in 2017. o The 10 year average for budget increase history is 3.55%. o A comparison of total annual operating expenses (regardless of funding sources). Highlighted how each $100 of Clarington Local Levy is spent Budget Survey The Director/Treasurer reported on the survey that was posted on the Municipal website regarding “how would you build a budget?” This survey was not about satisfaction, but rather an attempt to seek input from residents as to where they feel funding should be allocated. She acknowledged that the survey did not include all services but rather those services which are very familiar to the public and which have budgetary cost centres. The results, based on the 78 responses, concluded that, more or less, the respondents wanted to maintain existing spending levels. As well a number of thoughtful comments were received. The Director/Treasurer agreed to provide members of Council with materials regarding funding, services, and tax comparisons between urban and rural. Asset Management Plan o This plan is now complete. During 2018, staff will be analyzing how the plan translates to the budget. o A large portion of the capital budget includes items that relate to the asset management plan, but approximately 57% are non-TCA assets or growth assets. o Council’s commitment to assets is demonstrated through the annual capital budget. o Roads and structures - Council has continually provided an annual support of about $13m on roads and structures expended through both Operations and Engineering Services. Special General Government Committee Minutes November 17, 2017 - 3 - Recess Resolution #GG-464-17 Moved by Councillor Woo, seconded by Councillor Cooke That the Committee recess for 15 minutes. Carried The meeting reconvened at 10:10 AM with Mayor Foster in the Chair. Reserve and Reserve Fund Issues: o Critical component of long-term financing plan and provides stability to tax rates in the face of variable economic factors. o The Director/Treasurer explained that Reserve Funds represent accounts where the funds are segregated for a specific purpose while Reserves are accounts where ongoing operating surplus monies set aside, both of which avoids spikes in capital budget requirements. o Highlighted the status of Reserves, including Self Insured losses, municipal acquisition of property, tax write-offs, general capital, legal fees, consultant/professional fees, records maintenance, election expenses, and pits and quarries. o Highlighted Development Charges reserve funds - The Director/Treasurer highlighted that the development charges fund collections have not been very strong in 2017. Other key areas highlighted included: General Government – being primarily funding for the Official Plan Appeals; Public Library – being primarily a balloon payment; and roads and related works – larger than normal primarily to support economic development. o Indoor recreation development charges reserve fund is short by $3,100,000 as of October 31, 2017. Significant analysis has been undertaken to determine feasible timing of construction of the next indoor recreation facility. It appears that the schedule for a new indoor recreation facility would begin with design in 2020, followed by construction in 2021 and an opening in 2022. The Director confirmed that we could borrow because there is debt capacity available. The repayment, however, is the challenge as it would appear that we would have to borrow to repay. In response to questions, the Director/Treasurer of Community Services recommended that the entire project be pushed out three years and, at that time, undertake a review of what is actually required at that time. o Highlighted Reserve Funds - Key areas of specific focus being: Economic Development, Strategic Capital, Municipal Capital Works, General Municipal, ASO Benefits, Future Staffing, Parking Lot, Fire Equipment, Community, Emergency Management, Federal Gas Tax, Parking Lot Rehabilitation, Facility Parks Maintenance and Community Services Capital, Parkland Cash-in-lieu, Library Capital, and Museums R/F’s. Special General Government Committee Minutes November 17, 2017 - 4 - Debt The Director of Finance/Treasurer continued with her presentation, highlighting debt and Clarington’s repayment schedule. Debt is a tool to be used strategically. Debt issues specifically highlighted include: o Streetlight LED replacement possible debt $3,010,000 o Parking Lot Garnet B. Rickard and Fire Hall #1 of $3,000,000 o Waverley Interchange project of $2,500,000 The Director/Treasurer highlighted the significant capital projects. Specifically discussed were: IT hardware and software, sound testing equipment for MLE, emergency services equipment, various parking lot rehabilitation projects, various LED street light conversion and improvements, road rehabilitations and trail projects. The Director of Engineering spoke briefly to explain some of the 2018 Capital Budget for Engineering Services, including road reconstructions, improvements, trails, weight restriction and wheel load scales, and erosion protection. The Director of Finance/Treasurer and Manager of Operations provided an overview of the Operations Services 2016 Capital Budget, highlighting: Rural Road Resurfacing, Various building works, and Fleet replacement The CAO presented a list of new staff positions under consideration for 2018, and noted that most of them are simply to maintain service levels. In addition to the list presented, there were five other requests for F/T staff, being four full-time fire fighters and the full- time IT staff position who were identified in the IT Strategic Plan. The CAO advised that this list is still under review, and he will be considering feedback received through the 2018 budget survey, Council decisions on an upcoming report regarding snow clearing, and the outcome of the current Animal Services Service Delivery Review, which is expected to be completed in January 2018. The CAO confirmed that this is his best guess at this point and that his final list will be based on supporting business cases. The Director/Treasurer, along with input from Department Heads, continued her presentation with highlighting the Operating Budget impacts and issues, including: Revenue increases – Total $3,013,469 Expense decreases – $826,401 Revenue losses – $244,500 Expense increases – $5,700,166 Final impact including options A and B is 3.78% without external agencies (Priority A items – 1.34% and Priority B items – 2.44%)