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Home My WebLink AboutAdmin-1-96.r • THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT GENERAL PURPOSE AND ADMINISTRATION COMMITTEE �- Meeting. File #�� ° Dater January S, 1996 Res. # --� : By -Law # Report #: n1%41N_J-%File #: Subject: REPORTS TO ADDRESS THE PROVINCIAL TRANSFER PAYMENT REDUCTIONS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That Report ADMIN .1-96 be received, 2. That the Clerk's Department be authorized tolace an ad in the local newspapers, p substantially in the foam contained in ADMIN -1-96, for the purposes of public input into the 1996 Budget restraint program, and notification of potential services and fees affected; 3. That Staff prepare a report outlining proposed services affected and fee increases, incorporating any comments from thepublic in response to the placement of the advertisement, as soon as possible; and 4. That. proposed service level adjustments and fee increases be effective February 1, J rY 1996. Background 1.0 The Provincial Transfer Payment Reductions 1.1 The Province, with their policy statement of November 29, 19959 announced a' reduction in transfer payments to Municipalities amounting to approximately 43% over the years 1996 and 1997. To recognize the initial impact of the cuts and make preliminary decisions regarding continuation with the -capital construction of the Courtice Community Complex and question of the, Older Adults' Centre, Council received report ADMIN -35-95; Provincial Transfer Payment Reductions. 1.2 Report ADMIN -35-95 outlined theJ ro'ected Provincial. impact and known p p uncontrollable expenses ie insurance premiums increase a roximatel 15 %, social � pp y contract impact, fire primary response) which will affect the 1996 budget by RECYCLED PAPIER PAPER RECYCLE THIS IS PRINTED ON RECYCLED PAPER ADMIN -1-96 Paye 2 approximately $1.1 million and the 1997 budget by a further $1.2 million. 'These figures, although preliminary, dictate that the. Munici ali .of Clarin ton Iden ' new p �Y g sources of revenue or .reduced expenditures and services totalling $2.3 million over a two year period. 1.3 4n , December 29, 1995 the tY Munici ali 'verb allY confirmed that in fact the 1996 p Provincial cuts will be 34.32% rather than the 23% originally stated in the Provincial Policy Statement. This means that the Municipality will have to find $941,191 the $78,000 social contract deferral rant reduction in alternate revenue (including g ) rather than $631,000 as originally anticipated. The 1996 total including Provincial cuts and uncontrollable expenses is then adjusted to $1,445,191 versus the original $11 million projection. An updated version of the Provincial Impact Analysis which p Y was originally included. on Report ADMIN -35-95 is attached for information. See Attachment # 1) The transfer payments are to be made* in seven equal instalments, however they are not starting until June 1996, which will further erode the Mun.icipality's interest earning potential and much of the required payments the Municipality will have been paid out by that time. 2.0 Accommodating the Reductions 2.1 Staff are reviewing the levels of service currentlYprovided, . and potential areas of increased revenues. These areas are to be detailed in a report to the General Purpose and Administration Committee scheduled'for January 22 1996 and will be,'r recommended for immediate implementation in order to generate sufficient ..contribution toward the 1996 impact. The budget is scheduled for March 1996, and waiting for budget deliberations will reduce the earnings potential for the 1996 year by at least three months. 2.2 It is imperative to identify all areas that could be adjusted because of the magnitude �Y _ J g of the cuts combined with the uncontrollable expenses. In order to accommodate the 1996 $1.45 million overall impact, without increasing the household tax rate and . p g even after adjusting for assessment growth, areas of change will necessarily include, g Y but not be limited -to the followin g, - •Increased fees: ice rental rates, svvimming registration istration fees, ball diamond rates, licences and permits, fitness memberships, tender documents, etc. *Reduced grants to community groups •Charging for 'services previously free: letters for real estate orlannin p g issues, commissioner signatures, documents, fire burning permits, etc. *Reduced. levels of outside services: gravel to rural roads, treelantin and p g grass cutting, sidewalk cleaning deleted, etc. •Vacancies not filled •BU snow clearing during business hours r .T 0 ADMIN -1-96 Page 3 2.3 As report Admin -35-95Y identified, 1996 will be a difficult year. It is made even more difficult with the amount of cuts increased from $631,000 to $942,000 now confirmed. However it is anticipated that if the adjustments identified are implemented early in 1996, the impact to the household taxpayer should be' absorbed, and there are not recommended job losses other than through attrition and existing vacancies. This approach will help to ensure a stronger local economy and continued service at an acceptable and reasonable level. 2.4 The projections for 1997 however, are more tentative, and given the Provincial track record to date, Staff are much more concerned with the degree of adjustments required to find an additional $1.2 million new sources of revenue or service cuts. If the Province adds another $300,000 in cuts to the 1997 figure as it has just done g J for the 1996 transfer payment reduction, the Municipality will be looking at closer to $1.5 million or more in order not to affect the tax base. 3.0 Public Notification 3.1 In order to keep thepublic informed and advised of potential increases to fees, or reduction to anticipated service levels, it is recommended that Committee approve placement of the following advertisement in sufficient locale newspap ers to ensure area wide distribution: Public Notice: On Monday January 22, 1996 at 9:30 a.m. the Municipality of p tY Clarmgton will be considering possible increases. to user fees, and reductions to service levels to accommodate the reduction in grants from the Province of close. to $1 million. The areas to be discussed will include registration fees, permit fees (including ice rentals, ball diamonds etc.), membership fees, community grant reductions, outside roads and parks services, the Courtice - Community Complex operations, and the Older Adults' Centre ' op erations. Public input and comments are welcome at this meeting. 3.2 It is anticipated that there will be significant im act to the eneral public as a result g p g of the Provincial cutbacks, and this is an opportunity for input into the process and comments to be received regarding the ratepayers opinions on user fee increases and service .level cuts or household tax increases as the appropriate solution for the Municipality of Clarington. 4.0 Implementation 4.1 Staff are reviewing each aspect of operations and capital under their control, and will be reporting back to. G.P.A. ` on January 229 1996 with 'details and specific recommendations. Members of Council will also be meeting with Staff to explore the details, mechanics and impact of the recommendationsP rior to the Committee 1?03 PROVINCIAL IMPACT ANALYSIS UPDATED - JANUARY 1996 Attachment # 1 To Report Admin 1-96 ... ............................................. .... . ..................................................... .................................................... ...................................................... .......................................... 1:96:: 1:9 ................................................ ........................................................................... .................................. ..........:EOT0``I ....................................................................................................................................................................................................... f R0.V-1NC1� ::�::'1 � :..:� . --- . s ..: :::::::::::::::::::55 J -001.::::::::::::::::::::::::: ADD UNCONTROLLABLE EXPENSES: 1995 Actual Vacancies Not Filled: * E.D.O. Fire Primary Response ............................. ........... ....... ::::••.....••..30000) ................. Union Settlement 1 % .... ............ ' Eb({Negotiated }:. .... .............. Contract Impact(mileage,uniforms,overtime) ............................. QQSocial ......................... .'Insurance/Benefit Premiums 15% :: : : ................... ' ... ...........Q..... 0::::: '0 } .... . Permit Projected Revenue Loss ............................. 3 { ) 0 :. ............................. : ::f:Building Inflation Costs - utilities etc ...:. :::::::::4Q .. ................... . :.................Other Surplus no longer available P9 :.:.:.:.:.: :2 **:•.... �....'............ a ::::r) .... { ................ . Net Assessment Revenue Contribution 25,000 06% TOTAL AMOUNT REQUIRED TO MAINTAIN 0%11(Ot�Q PROPOSED BUDGET ADJUSTMENTS: General: 1995 Actual Vacancies Not Filled: * E.D.O. 55,000 55,000 * P.W. Clerk 1 25,000 25,000 * P.W. Labourers repl. w/temps 125,000 60,000 * Plans Examiner 35,000 35,000 * C/S Bldg. Maintenance Vacancy 28,000 28,000 Sub.-Toi 203,000 Consulting 203,000 25,000 Legal 231,000 25,000 Grants: Reduction to Community Grants 100,000 25,000 20,000 Public Works: Reduce Transfer to Reserve Equip. 550,000 100,000 100,000 Delay Capital : Station Street 960,000 200,000 0 St. Lights 50,000 0 Service Levels Reduced: * Rural Rds. gravel reduced 50,000 0 * Pavement Markings reduced 8,000 0 * Tree Planting reduced 5,000 0 * Unopend Rd. allow not maintained 12,000 0 * Mad Vac sidewalk cleaning BIA deleted 14,000 0 * BIA Snow Clearing in regular hours 15,000 0 * Parks - reduced planting/# grass cuttings 20,000 0 * Senior's Snow Clearing 30,000 0 30,000 Dufferin Aggregates - gravel value 140,000 0 REVENUES INCREASED: Increased User Fees 75,000 150,000 New/Increased Service Fees 15,000 15,000 Reserve Transfer -Pits & Quarries 0 140,000 2,342,000 TOTAL REDUCTIONS IN MUNICIPAL BUDGET 1,135,000 505,000 NET FUNDING EARNED /(STILL REQUIRED) (310,191) (700,000) ADD:::::CO UT ;.'. 0; IT'if:QQMPLEI:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ......................'..........'..��...G......N�11 11.[W............................................. . ::::::: :::::: :::::' :> 81 0 . 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