HomeMy WebLinkAboutFND-001-18Clarington
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Report To: Special General Government Committee
Date of Meeting: January 29, 2018
Report Number: FND-001-18 Resolution: #GG -061-18, #C-028-18 &#C-029-18
File Number: By-law Number:
Report Subject: 2018 Operating and Capital Budget
Recommendations:
That Report FND-001-18 be received;
2. That Council approve the 2018 Operating Budget as outlined in Attachment #1, at an
estimated tax levy impact of 1.15% (exclusive of tax policy impacts), as directed in
FND-001-18;
3. That Council approve the 2018 Capital Budget as outlined in Attachment #1, at an
estimated tax levy impact of 2.2%;
4. That Council provide direction on the remaining items listed as Priority "B" for
consideration, as itemized in Attachment #2;
5. That Council provide direction on the grants for external agencies per their requests
itemized in Attachment #3, at an estimated tax levy impact of 0.26%;
6. That the external agencies, referred to in Attachment #3, be advised of Council's
decision regarding their grant request and be thanked for their delegation on
January 26th, as appropriate;
7. That attachments outlining Reserve and Reserve Fund Contributions and new
Reserve/Reserve Funds be approved as shown in the 2018 Draft Budget binder;
8. That approximately $800,000 be drawn from the Rate Stabilization Reserve Fund to
offset the tax rate impact;
9. That the financing of Capital projects, as outlined in the attached documents be
approved;
Municipality of Clarington
Report FND-001-18 Page 2
10. That any cash flow shortfall in the Development Charges Reserve Funds be interim
financed from the Municipal Capital Works Reserve Fund and General Municipal
Reserve Fund, to be repaid with interest as cash flow permits;
11. That Report FND-001-18 be adopted by resolution in accordance with provisions of
Ontario Regulation 284/09 of the Municipal Act, 2001;
12. That, subject to Council approval of the Streetlight LED replacement and the Parking
Lot Rehabilitation Programs, identified in the 2018 Draft Capital Budget to be
financed from debenture financing, that the Director of Finance/Treasurer be
authorized to make application to the Region of Durham for the necessary
debenture, such terms at the discretion of the Director of Finance/Treasurer; and
13. That the appropriate By-laws to levy the 2018 tax requirements for Municipal,
Regional and Education purposes be forwarded to Council for approval, once final
tax policy information is available.
Municipality of Clarington
Report FND-001-18
Report Overview
Page 3
The purpose of this report is to provide necessary information to Council in order to approve
the 2018 Capital and Operating Budgets. The report includes a number of important
components and the detailed Budget binder provides specific details. There are significant
capital considerations for 2018 that further enhance the municipality's capital infrastructure.
On the operating side, Council has put important long term plans in place in 2016, including
a new Official Plan, a first ever Transportation Master Plan and an enhanced economic
development service along with receiving an Asset Management Plan in 2017. The Budget
is continuing to carry out the principles and objectives of these important Council priorities.
1. Overview
1.1 The 2018 Budget is outlined in detail in the Draft Budget documents circulated in
conjunction with this report with important information summarized in the attachments to
this report. The approximate 2018 base requirements are detailed in Attachment #1
attached hereto and provides a summary of the contents of the Draft Budget binder. To
the best extent possible, all documents have been provided in an accessible format.
1.2 The Chief Administrative Officer and the Director of Finance/Treasurer have worked
diligently with all departments to review all areas and identify savings.
1.3 The base requirement impact of 1.25% is after assessment growth (growth is estimated
at 3.05%). Every 1 % increase in the Budget results in a tax increase of approximately
$13.76 for the average residential taxpayer for the local portion of the tax bill (based on
average value of $348,700). A 1 % increase also translates to $535,000 in total additional
tax revenue for the municipality. This does not include the impact of tax policy changes
determined by the Region of Durham.
1.4 Based on the 2018 returned roll, Clarington assessment splits sit at 91 % for residential,
farm and multi -residential and 9% for commercial and industrial properties.
1.5 Clarington continues to rely on reserves and reserve funds to alleviate tax levy impacts
for capital and operating as a long term strategy. Surpluses in a given year are
transferred into the Rate Stabilization Reserve Fund and then used in subsequent years
to offset the levy. Contributions are made annually into reserve funds for future capital
replacement and then drawn upon in those future years. For 2018, the net annual draw
on reserves and reserve funds is approximately $22.7 million (2017 - $18.9 million)
including $800,000 drawn from the Rate Stabilization Reserve Fund to offset the tax levy.
This includes capital and operating. The summaries for the reserves and reserve funds
are included in the front section of the 2018 Draft Budget binder.
1.6 In our continued efforts to enhance public understanding and assist Council in their
communications efforts regarding budget changes, there are a few additional
attachments of note. Attachment #4 is the chart designed to show where tax levy funds
are spent based on categories that reflect services provided rather than by department
name. The chart is entitled "How each $100 of the Clarington local levy is allocated in the
Municipality of Clarington
Report FND-001-18 Page 4
2018 Draft Budget". It does not include the Region of Durham or Education portion of the
tax bill. For ease of understanding, the chart includes all base requirements and Option
B and full external agency requests. The chart will be amended to reflect final budget
decisions.
1.7 Attachment #5 is some comparative taxation information based on the final BMA study
data.
2. Tax Rate Stabilization
2.1 Historically, Clarington has drawn on our Rate Stabilization Reserve Fund approximately
$800,000 per year. This is proposed to remain for 2018. We have had stable financial
results so the Rate Stabilization Reserve Fund continues to support this practice. It is too
early to determine final financial results for 2017.
3. Tax Policy Changes
3.1 A long term strategic tax policy plan was initially approved in 2002 by the Region of
Durham (who has legislative authority over tax policy), that may have an impact on final
tax rates. The 2018 update is anticipated to be presented to Regional Council in
February 2018. Any tax ratio changes impact upon the relative share of the total taxes
that each property class pays. A copy of the Region's report will be circulated once it is
available. Some topics likely to be referenced include multi -residential properties,
capping changes and vacancy rebates due to recent Provincial announcements in these
areas and a reduced tax rate for the first $50,000 of assessment on small-scale value-
added commercial activities on farms.
3.2 Additionally, Clarington is affected by tax policy decisions made on the education side by
the Province of Ontario. This stems from municipalities retaining the education portion of
eligible payment in lieu properties such as Ontario Power Generation. In the 2008
Provincial Budget, a provincially mandated reduction in the industrial education rate was
announced. The rate has been reduced for 2018. This results in tax policy impacts of
lost revenue to Clarington of approximately $96,500 which will be incorporated into the
final tax rate by-law.
4. Staffing
4.1 The Municipality has been and will continue to experience significant growth. Any staffing
decisions need to have regard to the challenges and opportunities that come with this
growth. Investments in staff should only be made after due consideration of the desired
level of service and the economic impact of hiring a new staff member (ie. is there a
business case that demonstrates greater efficiencies, increased revenues and/or reduced
costs).
4.2 This year, Department Heads requested that a total of 13 new positions be added to the
2018 Operating budget. Planning Services, Engineering Services, Finance and Legal
requested no additional staff.
Municipality of Clarington
Report FND-001-18 Page 5
4.3 At the Special Council meeting on November 17, 2017, the CAO indicated that he would
be recommending that eight (8) of the 13 positions (four (4) full time and four (4) part-
time) be included in the 2018 budget. As a result of the recently completed service
delivery review for Animal Shelter Services, one (1) part-time position that was included
in the November 2017 list is no longer recommended. The remaining seven (7) positions
are as follows: IT Business Development Supervisor (Corporate Services),
Community/Customer Services Manager (Community Services), two (2) Light Equipment
Operators (Operations), part-time Building Services I (Operations), part-time Clerk II
(Operations) and part-time Clerk II (Clerks).
4.4 The rationale for the creation of four (4) new full time positions and three (3) part-time
positions is set out in Attachment #6 of this Report. The other five (5) positions that were
requested but are not recommended are four (4) full time firefighters and one (1) full time
IT Security Specialist.
4.5 The total cost of the recommended new staffing including salary and benefits is
$474,374. This represents a 1.1% increase to the overall cost of staffing.
5. Capital Budget Commentary
5.1 The recommended impact on the tax base of the proposed Capital Budget is $1,175,132
and is included partially in the Base Requirements in Attachment #1 and partially in
Priority B in Attachment #2. It falls under the various categories due to the criticality of
some of the individual capital items that make up the increase for 2018. The overall
increase translates to a 2.2% tax levy impact. These recommendations reflect the
importance of capital funding that will is reinforced through our asset management plan
work. Of the total budget increase including all capital and operating options of 3.61 %,
over 60% of the recommended increase is devoted to capital.
5.2 For Rural Roads, $400,000 has been included with $200,000 under base requirements
as part of the Operations capital increase and $200,000 has been included under Priority
B. Should Council not select item #4 of Attachment #2, the $200,000 in Attachment #1
would remain and result in a 0.37% increase dedicated to rural roads.
5.3 The capital recommendations are incorporated into the detailed Budget pages and details
of capital projects, by department, are found in the Draft Budget binder.
5.4 Federal gas tax proceeds have been incorporated into the Draft Capital Budget at
$2,692,935. Interest earned in the reserve fund due to timing differences in the receipt of
funds versus invoice payments have also been incorporated into the Budget. Formula
based funding under the Ontario Community Infrastructure Fund has been incorporated
under the Engineering section of the Capital Budget in the amount of $1,162,894. This
will increase to $1,797,935 for the 2019 budget.
5.5 At the time of writing of this report, details on Phase II of the Investing in Canada
Infrastructure Plan are not sufficiently available to incorporate projects at this time.
Municipality of Clarington
Report FND-001-18 Page 6
5.6 Finally, worthy of discussion pertaining to capital are two (2) projects where debenture
financing is recommended, the Parking Lot Rehabilitation Program and the Streetlight
LED retrofit. The parking lot rehabilitation program is a multi-year plan for which Council
has approved base tax levy funding over the last several years. Due to the size of the
work related to the RRC parking lot and fire station #1, it would take a number of years of
the base tax levy funding having to be accumulated before any project could proceed.
The recommendation is to debenture this large project and use approximately one half of
the current base funding to repay the debenture, allowing the other half of the base
funding to deal with smaller projects. With respect to the streetlight LED retrofit project,
the return on investment on energy savings will ultimately fund the debenture required to
undertake the project. There may be a time lag between the project work and the energy
savings commencing that will have a tax levy impact until the full savings are
implemented.
5.7 The Capital Budget is presented to Council for consideration and approval. The financing
for most of the projects is a combination of Reserves, Reserve Funds, Development
Charges and tax levy.
6. Operating Budget Impacts
6.1 Consistent with any other major employer, as well as all other municipalities, Clarington is
experiencing cost increases in areas such as wage increases, statutory benefit costs and
maintenance of our significant asset base. Also of note is utility costs. The Operating
Budget impacts are detailed in Attachment #1 to this report. The first year known impact
of Bill 148 has been incorporated for things like the minimum wage increase. The first
year impact is estimated at $305,000. There will be subsequent impacts in future budget
years for the second phase of the minimum wage increase as well as the evolution of the
other legislative changes as identified in COD -001-18 that was on the January 2, 2018
General Government Committee Agenda.
6.2 The election costs have also been incorporated into the 2018 budget with the
corresponding funding from the Election Reserve set up for this purpose.
6.3 During Council budget deliberations in the 2017 budget, Council commenced contributing
$125,000 into a reserve fund for future staffing. Under Priority B, Council has the option
of applying this towards 2018 staffing or generally towards the 2018 budget overall by
reducing this contribution to the reserve fund. Council can also leave it as is whereby the
contribution will continue into the reserve fund until a future decision is made.
6.4 Staff have endeavoured to find offsetting revenue increases and expense decreases to
alleviate the tax levy impact. These efforts are reflected in items #1 through #32 of
Attachment #1.
6.5 Several items have been referred to the 2018 Budget during the latter part of 2017.
These are reflected on Attachment #2 and include item #18— Micro dog fencing and
gates, item #19 — Tooley's Mill Park electronic sign and item #13 — quench buggy rental,
for Council's consideration. All other items have been addressed through reports to
Council.
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6.6 Consistent with prior years, interest revenue from the Strategic Capital funds were
factored in so as to mitigate the tax levy in the amount of $230,000. Investment income
is also showing strong signs of improvement due to interest rate increases and Council's
decision to participate in the High Interest Savings Account (HISA) through the One Fund
sponsored by AMO and MFOA. Revenue increases for many departments, where
possible, have been factored in and are reflected in Attachment #1.
6.7 For 2018, the Budget is reflecting no change to the Veridian dividends.
6.8 On the expense side, other items approved in 2017 having a direct bearing on the 2018
Budget is the position change approved per the IT Strategic Plan report in the amount of
$17,038 (item #38), the Clarington Board of Trade increase of $9,900 (item #43 and
memo under the CAO tab of the budget binder) and the last phase of the impact of the
move to the ActiveNet software for recreation and facility booking of approximately
$59,200.
6.9 Also worthy of specific note is the Development Charges by-law incentives that need to
be incorporated into the Budget due to uptake, particularly on the multi -residential side
(item #54).
7. Debt Status
7.1 Current projected annual debt repayment obligations for 2018 Budget purposes total
$3,403,277. This is comprised of debentures issued for Bowmanville Indoor Soccer,
Garnet B. Rickard Recreation Complex, Community Care Durham space, the Newcastle
Branch library (balloon year), Green Road Grade Separation, Courtice Branch Library,
the Newcastle and District Recreation Complex, as well as the retrofits/renovations
required for the Municipal Administrative Centre and Pad A of the Garnet B. Rickard
Recreation Complex.
7.2 The total principal amount outstanding at January 1, 2018 is $17,065,755. Anticipated
new debentures in the course of 2018 based on Council approval would be an additional
$5,010,000. This is well below the Municipality's debt limit prescribed by the Ministry of
Municipal Affairs.
7.3 As Council is aware, annual growth is required to maintain the debenture repayment
obligations where they are funded from development charges. As previously reported,
due to limited growth numbers during the economic downturn, there remains interim
borrowing from prior years that will need to be repaid from development charges
collections in conjunction with maintaining annual debt repayments. 2017 was the last
year for debenture payments for the South Courtice Arena. This will then create the
needed funding envelope to repay the balance of the interim borrowing starting in 2018
and lead to future indoor recreation opportunities as discussed with Council.
8. Municipal Grant and Sponsorship Programs
8.1 The Municipal Grant program and the Municipal Sponsorship Programs are administered
through the Community Services Department. The Budget presented via this report
Municipality of Clarington
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includes $60,000 for the municipal grant program and $35,000 for the municipal
sponsorship program. The funds are allocated based on Council direction when the
appropriate reports are brought forward in compliance with the approved policies for the
two programs.
9. Reserves and Reserve Fund Contributions
9.1 Consistent with past practice, increases in reserve fund contributions are at times
deemed appropriate to bolster balances in depleting reserve funds or to begin to put
aside funds for an identified need. This is an important part of our asset management
strategies. For 2018, there are several increases to the contributions that are
recommended on Attachment #2.
9.2 The proposed transfers are items #5 through #9 and are focussed on fleet and facilities
deficiencies.
9.3 Further policy work will be forthcoming with respect to reserve and reserve fund
requirements.
10. External Agencies
10.1 The requests from the external agencies, including the Clarington Museum, Clarington
Library, Visual Arts Centre, Bowmanville Older Adults Association, etc. are detailed in the
External Agencies section of the Draft Operating Budget for Council to consider their
requests on an individual basis. They are summarized in Attachment #3 to this report.
The increase in Budget requests for external agencies total $138,505 for 2018 which is a
0.26% total municipal levy increase. Individual percentages vary widely from the 2017
approved grants. The agencies will be provided the opportunity to address Council on
their 2018 requests on Friday, January 26th, 2018. A ten (10) year history of requests
versus grants was circulated under separate cover.
11. Mayor's Golf Tournament and "For the Love of Art" Events
11.1 As approved in the 2015 Budget, for the remaining term of Council, the net proceeds of
the Mayor's Golf Tournament are to be directed to the Bowmanville Hospital Foundation
in 2018. The "For the Love of Art" event net proceeds are divided equally between the
Clarington Visual Arts Centre and The Gift of Art.
12. Citizen Survey for 2018 Budget
12.1 As Council is aware, our first ever budget survey was undertaken in the fall of 2017 to
obtain public input on priorities for the 2018 budget. It is important to note that the survey
was specific to budget priorities rather than a typical satisfaction survey. The survey did
not include an exhaustive list of services, but rather tried to focus on those most visible to
the public. We also had to determine larger scale services for which we could track
financially on a standalone basis.
Municipality of Clarington
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12.2 Significant attempts were made to engage the public through many communication tools.
There were 78 respondents. This is not a statistically valid result but is intended to
generally inform Council. For future years, we hope to build momentum in participation
as well as further enhance the level of detail for the types of services to be included in the
survey.
12.3 Survey results were provided to Council at the Special General Government Committee
meeting of November 17, 2017. Overall the public were very pleased to have the
opportunity to participate in the survey. Strong support was shown in maintaining
spending across the categories included in the survey. Those categories receiving the
highest priority for increasing spending included roads maintenance, winter roads
maintenance, recreation facilities and parks maintenance. You will see references for
these service areas reflected in the 2018 staffing requests as detailed in Attachment #6.
13. 2018 Accrual Based Budget for PSAB per Ontario Regulation
284/09
13.1 Public Sector Accounting Board annual reporting requirements for municipal Budgets
require that certain accrual based items be reported to Council in conjunction with the
Budget for 2011 onwards.
13.2 Accrual based expenses that are excluded from the 2018 tax based budget include post -
employment benefits and amortization of capital assets. Other items to transfer to a
PSAB Budget include tangible capital asset acquisitions and accounting treatment of debt
principal payments.
13.3 There is no immediate financial impact of these PSAB additions or reductions since the
tax based budget approves necessary funds to provide municipal services for 2018, but
there are longer term implications.
13.4 The estimated change to the accumulated surplus at the end of 2018 resulting from the
above items is as follows:
PSAB Additions to the 2018 Budget
Tangible Capital Asset Amortization
Post -employment Benefit Estimate
Total PSAB Additions
PSAB Reductions to the 2018 B
Tangible Capital Asset Acquisitions
Debt Principal Payments
Total PSAB Reductions
$19,134,549
$ 512,111
$19,646,660
($26,084,308)
($ 2,983,855)
($29,068,163)
(Increase) Decrease in Accumulated Surplus ($ 9,421,503)
Municipality of Clarington
Resort FND-001-18
14. Conclusion
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This report and accompanying documents are intended to provide Council with the
information necessary to make strategic decisions and ultimately adopt a Budget for the
2018 year.
15. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by: Reviewed by.
Nancy Taylor, BBA, CPA, CA, Andrew C. Allison, B. Comm, LL.B
Director of Finance/Treasurer CAO
Staff Contact: Nancy Taylor, Director of Finance/Treasurer, 905-623-3379 ext. 2601 or
ntaylor@clarington.net
Attachments:
Attachment #1
— 2018 Base Requirements
Attachment #2
— Priority B Items for Consideration
Attachment #3
— External Agencies 2018 Requests
Attachment #4
- How each $100 of the Clarington local levy is allocated in the 2018 Draft
Budget
Attachment #5
— Comparable BMA Study Statistics
Attachment #6
— New Staff Recommendations for 2018
Municipality of Clarington
2018 Draft Budget Attachment #1
2018 Base Requirements to Report FND-001-18
Description Amount
Revenue Increases:
1
Preliminary Assessment Growth
(1,629,477)
2
Increase in Investment Income
(175,000)
3
Increase to Supplementary Taxation Revenue
(50,000)
4
Increase in Linear Rights of Way Taxation Revenue
(50,000)
5
Legal- increase in planning agreement fees
(8,000)
6
Increase in Revenue re: OPG
(5,000)
7
Net increase in Building Division Revenue
(54,452)
8
Increase in Entrance Culvert Revenue
(5,000)
9
Seniors Snow Clearing Fee Increase
(4,500)
10
Facilities Revenue Increases
(31,401)
11
Aquatic Program Revenue Increase
(91,100)
12
Fitness Program Revenue Increase
(40,000)
13
Recreation Programs Revenue Increase
(37,000)
14
Sports Hall of Fame net Revenue Increase
(14,300)
15
Increase to Planning Revenues
(105,625)
16
55+ Program revenue increase
(23,900)
17
Records Maintenance contribution from reserve
(70,000)
18
Rural Road Signage contributution from reserve
(293,740)
19
IT Risk Assessment contribution from reserve
(40,000)
20
Election Reserve Transfer
(294,474)
21
Increase in Parking R/F transfer for online payment charges
(5,000)
027
Expense Decreases:
22
Reduction in Energy Master Plan Savings transfer to R/F
(1,137)
23
Reduction in transfer to tax write off reserve
(50,000)
24
Reduction in transfer to election reserve
(65,000)
25
Reduction in transfer re: health and safety documentation
(2,500)
26
Reduction in transfer to ASO Reserve Fund
(398,250)
27
Various communications and tourism savings
(24,400)
28
NEER Surcharge removal
(38,600)
29
Catch basin/guiderail/small reno savings
(42,000)
30
Planning reduction in tax levy support to growth studies
(55,000)
31
Reduction to Fire Maintenance accounts
(10,000)
32
Minor Adjustments to Various Line Items
(53,413)
Municipality of Clarington
2018 Draft Budget
2018 Base Requirements
Revenue Losses:
Attachment #1
to Report FND-001-18
Amount
33 Net Loss of Rental Revenue 132 Church St 10,031
34 Reduction in Penalty and Interest on Taxes 50,000
35 Reduction in Recovery from 407/Blackbird oper misc revenue 23,877
36 Reduced Rentals at RRC during floor replacement 26,500
11
Expense Increases:
37
Salary Negotiations, Grid Changes
788,964
38
Position changed approved per IT Strat Plan Report
17,038
39
Statutory Benefits
215,921
40
Extended Health
419,073
41
Municipal Election Salaries and Wages
147,328
42
Bill 148 Estimated Impact
305,000
43
Clarington Board of Trade Increase
9,900
44
Heat
1,033
45
Hydro
325,195
46
Water/Sewer
38,381
47
Debt Charges to match actual
18,000
48
Streetlighting Hydro and Maintenance
150,000
49
Playing Field Lighting
15,000
50
IT Capital
19,500
51
Engineering Capital
230,252
52
Operations Capital
417,000
53
Various Other Capital
40,880
54
DC Bylaw Incentives
100,000
55
Mayor and Council Travel
17,230
56
Communications community engagement application
580
57
Legal- tax levy share of OP Appeal costs
10,000
58
Post Employment Benefits
25,000
59
HR Legal
15,000
60
HR Service Charges
39,900
61
IT Software Maintenance- MS 365
108,000
62
IT Risk Assessment to be funded from reserve
40,000
63
Clerk's records digitization project funded from reserve above
70,000
64
Bylaw Enforcement costs for Trulls road location
9,500
65
Election Expenses net of salaries
147,146
361
Grand Total 670,500
Tax Levy Impact on Percentage Basis 1
January -15-18
DN: Finance Admin/2018budget/2018 rate increase summary.xlsx
Municipality of Clarington
2018 Draft Budget
2018 Base Requirements
Description
Attachment #1
to Report FND-001-18
Amount
66
Bank Service Charges
17,500
67
Fire Dispatch Contract
12,500
68
Fire Communications/Radio
10,000
69
Traffic Signal Regional increase
40,000
70
Annual Building Condition Assessments
10,000
71
Goose Management Program
15,000
72
Parks Grass Cutting
7,100
73
Parks Waste Disposal
13,000
74
Orono Arena Elevator Maintenance
4,500
75
Flame Resistant Textile Treatment at Hall Boards
10,000
76
Office modifications in Engineering and Finance
10,000
77
Emergency Tree Removal Increase
15,000
78
Forestry Block Pruning Increase
20,000
79
Seniors Snow Clearing Program
30,000
80
Line Painting- growth and bike lanes
20,000
81
Rural Road Signage funded from reserve
293,740
82
Community Services ActiveNet transaction fees
59,200
361
Grand Total 670,500
Tax Levy Impact on Percentage Basis 1
January -15-18
DN: Finance Admin/2018budget/2018 rate increase summary.xlsx
IMunicipality of Clarington Attachment #2
2018 Draft Budget to Report FND-001-18
Prioritv B Items for Consideration
1 Reduction in transfer to Future Staff Reserve Fund
2 New Staffing Proposals
3 Engineering Capital
4 Operations Capital
5 Community Services Transfer to R/F
6 Increase to Municipal Capital Works Reserve Fund
7 Increase to Fire Equipment Reserve Fund
8 Increase to Facilities Maintenance Reserve Fund
9 Increase to Operations Equipment Reserve Fund
10 Engineering Admin Studies -tax levy component- North newc drainage
11 Engineering- Safe Roads/Active transportation program
12 Dust Control Increase
13 Quench Buggy Rental
14 Fleet GPS Update
15 Canada Day Event and Fireworks
16 Various Community Improvement Program Changes
17 Heritage Grant Incentive
18 Micro Dog fencing and gates
19 Tooley's Mill Park Electronic Sign
January -15-18
DN: Finance Admin/2018budget/2018 rate increase summary.xlsx
(125,000)
474,374
267,500
200,000
25,000
40,000
50,000
25,000
25,000
18,500
13,500
6,000
20,000
7,000
31,500
4,000
1,000
12,000
28,000
1,123,374
Attachment #3
to Report FND-001-18
Municipality of Clarington
External Agencies - 2018 Requests
2017
2018
Increase
Increase
Approved
Request
($)
(%)
Clarington Public Library
3,016,710
3,084,313
67,603
2.24%
Clarington Library- Capital Tax Levy
114,176
114,176
-
0.00%
Bowmanville Older Adult Association
260,100
314,502
54,402
20.92%
Clarington Museums
282,643
282,643
-
0.00%
Visual Arts Centre
210,848
210,848
-
0.00%
John Howard Society / Firehouse Youth
61,200
65,200
4,000
6.54%
Community Care Durham
40,500
50,000
9,500
23.46%
Newcastle Community Hall
22,000
20,000
(2,000)
-9.09%
Orono emete Board
10,000
15,000
5,000
50.00%
4,018,177
4,156,682
138,505
Percentage Increase on Municipal Tax Levy
0.26%
dn: FinanceAdmin/2018 budget/2018 rate increase summary.xls
15 -Jan -18
Attachment #4
To Report FND-001-18
How Each $100 of Clarington Local Levy is Spent in 2018
DRAFT Budget
OPERATIONS*
FIRE SERVICES
CORPORATE SUPPORT
CAPITAL FINANCING
RECREATION FACILITIES AND..
LIBRARY
COMMUNITY PLANNING
WINTER MAINTENANCE
ENGINEERING SERVICES
CULTURE
MUNICIPAL LAW AND PARKING..
COMMUNICATIONS
ANIMAL SERVICES
DEBT SERVICING
CROSSING GUARDS
TOURISM
ECONOMIC DEVELOPMENT
COMMUNITY GRANTS
$4.82
3.79
$2.84
1 $1.4
1 $1.16
1 $1.15
$0.97
$0.80
$0.65
$0.52
$0.52
$0.15
$10
$15.05
3.40
* INCLUDES ROADS, PARKS, CEMETERIES, BUILDINGS,
STREETLIGHTS & SIDEWALK MAINTENANCE ETC.
$20.27
$18.58
Attachment #5
To Report FND-001-18
Property Taxes as a Percentage
of Income
Milton
$3,433
2.7%
Low
Halton Hills
$4.162
3,2%
Low
Caledon
$4,931
3.6%
Low
Newmarket
54,461
3,6%
Low
Clarington
$4,139
3,7°x6
Mid
Whitby
$4,925
3.9%
Mld
Niagara Falls
$3,118
4,0°x6
Mid
Plaering
$5,157
4.2%
High
Oshawa
84,399
4,9%
High
Property Tax Comparisons
Detached Bungalow — 2017
Milton
53,192
Mid
Niagara Falls
83,258
Mid
:laringtnn
$3,402
Mld
dalton Hills
$3,503
Mld
Newmarket
$3,748
Hlgh
'aledon
83,824
High
Nhitby
84,307
High
Jshawa
$4,390
High
Dickering
$4,947
High
Overage — overal
53,349
Mid
leverage — popwlatlon 30,404-99,999
$3.504
'a fA Average
$4,035
Attachment #5
To Report FND-001-18
Property Tac Comparisons
Storer Home — 201
Ailton
$3,763
Low
{aledon
$4,330
Mid
{larington
$4,432
Mid
fiagara Falls
$4,551
Mld
Jalton Hills
$4,583
Mld
#ewmarket
64,737
Mid
Vhikby
55,134
High
)shawa
$5,220
High
>Ickering
$5,581
Hlgh
Overage — overall
$4,503
hvemge — populawn 30,000 - 89,999
$4,716
STA Average
$4,808
Property Tac Comparisons
Senior Executive Horne - 2017
1 ilton
$4,545
Lour
larington
$5,388
Low
:aledon
$5,405
Low
lewmarket
$5.983
Mld
Ilagara Falls
$6,018
Mld
lalton Hills
$6,338
Mid
lshawa
$6,421
Mid
Whitby
$6,495
High
lickering
$13,949
Hlgh
,overage — merall
$6.287
wrage — population 30,000 - 99,899
$6,143
iTAAwerage
$6.683
Attachment #6
To Report FND-001-18
New Staff Recommendations for 2018
Corporate Services Department
IT Business Development Supervisor (Full Time - $103,222 salary and benefits)
This new position was identified in the "Recommended 2017 Restructured IT Division"
shown in the Information Technology Strategic Plan (2017 — 2022). The primary
responsibilities of the position would include large system project management,
business analysis, process and workflow documentation and software contract
management. It is recommended that this position be filled for the following reasons
(most of which were identified in the IT Strategic Plan):
1. There is pent-up demand for new technology solutions. Legacy applications,
work-arounds, spreadsheet and paper-based manual processes no longer meet
corporate needs or expectations.
2. There is no formal process for documenting and prioritizing IT projects. To date,
solutions have been sought by individual departments, often with little awareness
of similar needs in other departments.
3. IT is acting as a utility provider, but not as a partner in the identification and
optimization of technology. Departments want advice on new technologies, but
the IT resource has little time for research and strategizing.
4. The consultants noted that the "problem for Clarington is that the demand for
major business systems exceeds the current capability and capacity of the IT
organization to support the research, acquisition, implementation and
sustainment of big systems".
5. The consultants identified the following as key areas for solutions that will enable
business improvements:
x Complete Upgrades in Flight — GP 2016 Financials, Active Net
Recreation Management, CityWide Works
x Planning, Engineering (LDO), Licensing and By-law System, Document
Management System — workflow and mobile
x Automations — purchasing, accounts payable, accounts receivable,
staff scheduling
x Customer Relationship Management — customer service and issues
tracking
6. The new position is needed to successfully implement these major business
systems in a timely and coordinated manner which will promote greater
efficiencies across the entire organization.
Operations Department
Two (2) Light Equipment Operators (Full Time — $70,173 each salary and benefits)
Report OPD -001-18 provided most of the rationale in support of the request for two (2)
additional Light Equipment Operators. Essentially that report described how these two
(2) positions will enable the Municipality to maintain service at the level required by
Ontario's Minimum Maintenance Standards.
With residential expansion in Courtice, Bowmanville and Newcastle and the addition of
40 kilometers of roads over the past four (4) years and the addition of 24 new kilometers
by 2019, staff are recommending two (2) additional Light Equipment Operators. With
this expansion of the road network, one (1) winter maintenance route needs to be
added in early 2018 and a second one by October 2018 will have to be incorporated to
meet our existing service levels. These new positions would therefore not reduce
overtime during the winter months since they would be part of the winter maintenance
response network.
These new staff could assist with Emerald Ash Borer, pruning and forestry requests,
ditching, patching, park related activities, cemetery activities, shoreline emergency
response and community rinks start up. There will be opportunities to reduce overtime
in the cemetery and park maintenance from May to November with flex scheduling.
Part-time Building Services 1($29,366 salary and benefits)
The Building Services Division has evolved with the growth of the Municipality over the
last 25 years. Increased work load that has affected the Division as follows:
x Newcastle Branch Library - previous site was leased - no building envelope or
plant requirements prior
x Newcastle Fire Station 2 - previous site was part-time, new site is full time and
has full complement of various HVAC, BAS, fire and life safety systems
x Depot 42
x Clarington Fields
x 2611 Trulls Road - previously leased
x Asbestos Management program as legislated under OHSA - management and
maintenance of 22 sites
x AO DA
x PAD program coordination for 20 sites
x Safe Drinking Water act and regulations
x Working at Heights certifications
Staffing increases at MAC - 25% which results in more support requests
x Addition of service contracts for elevators - CBC, Orono Arena, Solina
Community Centre
x Management of photo IDs/access cards for five (5) sites - 300 plus employees
x Space management at the MAC
Future demands on the Division will include those in relation to the Camp 30 property.
The addition of a part-time Building Services I employee would create the following
efficiencies:
x Increased capacity to complete work in house
x Small roof replacements
x Reassignment of one (1) employee back to Parks
x City Wide implementation
x Security and access control system administration of municipal buildings
x Reduction in overtime by an estimated $6,000
x Meet demands of new space if approved
x Meet demands of Camp 30 property when it is transferred (funded through the
Camp 30 agreement)
x All building structures would fall under Building Services
Part-time Clerk II ($34,465 salary and benefits)
The current Clerk II has been assigned with developing and implementing new software
and will be required to dedicate their time to City Wide; Active Net; Workforce and Sign
Reflectivity. We also require their expertise in claims handling.
A new Clerk II would be relieving duties such as:
x Accounts Payable for roads division, including processing of Master Card
statements and employee expense claims. This involves review of invoices,
verify amounts and assign account number for approval.
x Preparation of e -requisitions as required by Supervisors.
x Prepare spreadsheets to track winter sand/salt; gravel; etc.
x Accounts Receivable for winter snow clearing invoicing to developers as well as
MVA's.
x Electronic filing of worksite inspection forms from Supervisors.
x Provide assistance to Supervisors as requested by typing letters, notices,
photocopying, filing, etc.
All four (4) of the above recommended positions will allow the Department to maintain a
high level of customer satisfaction.
Community Services Department
Community/Customer Services Manager (Full Time - $132,510 salary and benefits)
The Community Services Department has maintained its current management structure
since 2003. At that time, Recreation Services was responsible for Aquatic, Youth and
Fitness programming only, with 127 part time staff, approximately $700,000 in municipal
program revenues, and operating expenses of approximately $950,000.
Over the years, additional responsibilities were assigned to Recreation Services, which
include Community Development, Customer Service, ACTIVE Recreation Software,
Municipal Special Events, Sponsorship Program, Financial Aid Program and Older Adult
Programming.
By comparison, the Recreation Services portfolio is currently responsible for
approximately 260 part time staff, generates approximately $2.2 million in revenues and
has operating expenses of approximately $3.1 million. This demonstrates significant
growth not only in volume but in added responsibilities that have been assigned to the
Department over the last 15 years.
There is no reason to expect this trend to change as Recreation Services continues to
experience unprecedented growth year after year. Participatory statistics indicate
registrations are increasing by the thousands each year, and as our community
continues to evolve, pressure for more recreational and social programming will prove
more prevalent.
The proposed Community/Customer Services Manager will assume responsibility for all
aspects of Community Development in addition to Customer Services initiatives,
specifically identified as follows:
Community Development Customer Services
Sponsorships / Grants
Special Events / Workshops
Community Group Support
Inclusion
Diversity
Integration
Financial Aid
ACTIVE Recreation Software
Customer Services Desks
Community Guides
Facilities Permitting
Clerical Support Services
The Department restructuring and resulting creation of this new position provides a
platform to accommodate the Department's growth into the foreseeable future, and
realigns departmental responsibilities into a more realistic structure.
Clerk's Department
The Clerk's Department initially requested that two (2) part-time positions be filled, but
recognized that one (1) of the positions was dependent upon the outcome of the service
delivery review for Animal Shelter Services. The results of that review are set out in
Report CAO -001-18. Based on the review, it was determined that efficiencies could be
obtained through a reclassification and reorganization within the Department. These
changes will eliminate the need to hire additional staff in Animal Shelter Services at this
time.
Part-time Clerk II ($34,465)
The Clerk's Department is having difficulty providing reception coverage at the MAC,
especially at lunch times and during sick or vacation days. It is difficult to provide
counter coverage and while meeting Employment Standards Act and collective
agreement requirements regarding breaks and lunches. These challenges are primarily
due to three (3) reasons: increase in volume of counter and telephone interactions, shift
to two (2) standing committees of Council, and the MLE Division move to Trulls Road
location.
The number of service interactions (at the counter or on the telephone) at the MAC is
increasing. There was a 43% increase between 2016 and 2017.
Where the Committee Coordinator historically had provided regular daily counter and
telephone support, since the shift to the two (2) standing committee structure, the
increased workload for Committee related work has resulted in the Coordinator only
being available to assist in extreme circumstances.
There was already an increased volume of customer service encounters (phone calls
and counter work) prior to Municipal Law Enforcement moving to Trulls Road, however
there were three (3) clerks (Vital Statistics Clerk; Lottery Licensing Clerk; and By-law
Clerk) for coverage when everyone was in the same building. Despite the three (3)
staff, there were still instances where the Committee Coordinator or the Administrative
Assistant to the Clerk was called upon to assist with coverage.
The Department is experiencing a similar situation in the Municipal Law Enforcement
Division at Trulls Road, where there are no other clerical persons other than the two (2)
By-law Clerks (as the expectation is that the officers should be performing their
enforcement duties out of the office as much as possible). If one (1) of the By-law
Clerks is away sick or on vacation, the result is that the other Clerk ends up working all
day with no breaks or lunch. To mitigate this, we have been trying to "lend" the Lottery
Licensing Clerk to cover lunches at Trulls Road, however there is a cascading effect on
the MAC coverage which results in pulling the Committee Coordinator off her duties to
assist with coverage.
Vacation coverage at the MAC needs to happen for 35 days out of the year and 30 days
at the Trulls Road location.
Hiring a part-time Clerk II (24 hours per week) will provide coverage between 10:00 AM
and 2:30 PM Monday to Thursday, and 10:30 to 4:30 on Fridays (typically the busiest
day for marriage licenses, etc.). The person would primarily provide coverage at the
MAC for lunches. Additionally, the person would shift over to Trulls Road to provide
coverage where needed there. This will free up the Committee Coordinator and
Administrative Assistant to focus on Council/Committee related duties.