HomeMy WebLinkAboutTR-23-99
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THE CORPORATION OF THE MUNICIPALITY OF CLA.RINGTON
REPORT
TRCUR99
Meeting:
Date:
Report #:
Subject:
SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
File # So"'> .
Res. #
By-law #
May 3, 1999
TR-23-99 File #:
1999 CURRENT BUDGET
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report TR-23-99 be received for information,
2. THAT the 1999 Current Budget which includes the Executive Summary and
external budgets, be approved, with the non-controllable and priority #1 items
identified on Attachment #2 ,
3. THAT Council give consideration to those items identified as priority # 2 on
Attachment #2,
4. THAT the appropriate by-laws to levy the 1999 tax rates for Municipal, Region
and Education purposes be recommended to Council for approval,
5. THAT Clarington Library Board, Visual Arts Centre and Museums be advised of
Council's actions.
Background and Comments:
1.0 Capital Budget
1.1
The 1999 Capital Budget was approved by Council through Report TR-15-99 on April 12, 1999.
This allowed the Municipality to tender required construction contracts and proceed with other
capital projects while the current budget was awaiting finalization of Provincial numbers.
1.2
The grant requests were also dealt with separately through Report CS-06-99 on March 29, 1999.
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TR-23-99
Paj1;e2
2.0 Current Budget
2.1 Non-Controllable and Priority #1 Items
The current budget reflects those items classified on Attachment #2 as non-controllable and
priority #1. These items represent the increase to the 1998 tax base and have municipal tax
implications.
2.2
The non-controllable impacts result from service levels previously committed to and include such
items as 24 hour Fire Service in Courtice, the Collective Agreement negotiations, reinstatement
of the transfer to the Reserve Funds for the tax portion of development charges, the Board of
Trade 1999 funding, net impact of Street Light charges and various other expenses over which
the Municipality has no influence.
2.3
The Priority #1 items are required to maintain current levels of service. Many of the items were
removed from past budgets in order to maintain the zero percent impact. The departments. over
the past few years have accommodated many adjustments and assessed which are required to be
reinstated to effectively maintain the existing levels of service. For example, the Public Works
request for two light equipment operators will only fill two out of the eight existing vacancies in
their division.
2.4
There are some items recommended which are new additions to the base, but are required
because of growth, to maintain existing service levels; for example the recommended addition of
the fire prevention officer. The merits of each department's recommendations will be elaborated
on during their respective presentation. .
2.5
The tax implications and the impact of Bill 79 are ongoing and are reflected in the non-
controllable costs. The Municipality of Clarington is accommodating all the pressures of growth
along with the effects of downloading with no Provincial funding, neither through Community
Reinvestment Funds such as those received by other area municipalities, nor direct grants of any
kind. Finance staff resources have been almost entirely devoted to the implementation of Bill 79,
as is evidenced by the overtime accumulated. The situation is not expected to improve due to the
permanent changes imposed through legislation and the fact that only 20% of tax changes are
introduced through Bill 79 and the exit strategy to deal with the 80% impact is pending.
2.6
The Community Services Master Plan request is to update an approximately ten year old analysis
of the community requirements in response to growth. This study will support the direction of
the development charge capital plan. In addition, the Planning consulting fees have been
increased to account for projects such as the CAUSE study. These studies will be discussed by
the Department Heads during deliberations.
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TR-23-99
Page 3
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3.0 Priority #2 Requests
3.1
The items identified as priority #2 are requests put forward for Council to consider. They are
generally enhancing service levels or responses to demands experienced by departments from the
effects of growth. In some cases the effects may be deferred to next year's budget, however
Council should be aware that these items may escalate to a priority #1 consideration in future.
There are also other known impacts on the 2000 budget; ie. the third year of the Courtice phase-
in for fire service; the third year of the financial system phase-in; the second year of
negotiations impact; the third year of the phase-in of the support to the roads pavement
maintenance program, etc.
3.2
The recommendation for inclusion of all priority #1 items, assists in alleviating some of the
pressures that might otherwise transfer to further impact the year 2000 budget.
4.0 Staffmg:
4.1
As mentioned above, there are for the first time in many years, some staffing recommendations
reflected in the 1999 budget. In some cases the recommendations are to fill currently vacant
positions that have been left vacant as cost cutting measures. As the municipality continues to
grow all of the departments are performing additional responsibilities and functions. In some
cases continuation with the existing complement will actna1ly erode the level of service because
the same staff are serving an increased number of residents and physical attributes; for example
fire prevention officer, building services/property management, and public works equipment
operators. In other cases the municipality has experience burn out and loss of key staff with
replacement at a higher cost, such as the Tax Collector due to increased accounting pressures.
The cost associated with overtime accumulation in some cases will offset the cost of the human
resource adjustments; ie. finance. The recommendations related to staffing do not increase
service levels but assist in maintaining existing levels, with the minor exception of the Animal
Services increase of part time hours in order to increase the present level of service..
5.0 Garbage Rate
Municipal <:;ollection
Regional Disposal etc.
The garbage rate continues to be collected based on a flat rate applied to each collection stop.
The rate is calculated based on tonnage as follows:
1998
$ 48
77
$125
1999
$44
101
$145
(Region Rate Subject to minor reduction in tipping fee - rate will be adjusted accordingly)
The increase in the garbage rate is primarily due to the elimination by the Region, of the subsidy
to the garbage charges from their Stabilization Reserve. This has caused the tipping fee to
increase from $86/tonne in 1998 to $911tonne. Also the municipal collection contract has
increased, in accordance with their contract, by approximately 3 % which is to represent the
consumer price index. In the other area municipalities, garbage is charged on an assessment
TR-23-99
Page 4
basis, thereby making the increase more dramatic for many properties. In Clarington the flat
rate application ensures that the charges are collected evenly and on the same basis (tonnage) that
they are charged to the municipality. The charge has been stabilized by bringing in a transfer at
the municipal level of $110,000, which has lowered the municipal portion of the charge from
$48 to $44.
6.0 External Agency Budgets
The Library, Museums and Visual Arts requests were classified into non-controllable, priority #1
and #2 costs. Their detailed submissions are included in the draft print of the budget, and they
have been invited to attend budget deliberations to present their requests. The Clarke Museum
has notified staff of their intention to appear as a delegation to the Council ratification meeting of
May 10, 1999.
7.0 Conclusion
Attachment #1 shows the impact of the non-controllable cost for all agencies and the
Municipality's priority #1 requests at 1.62%. Inclusion of the priority #1 requests from the
Library, Museums and Visual Arts Centre bring the total operating impact to approximately
2.15%, which results in a revised tax base of $16,248,549.
Respectfully Submitted
Reviewed by
d-v~~~.~
ie A. Marano, H.BSc., AMCT
Treasurer.
Franklin Wu, M.C.I.P.,R.P.P.
Chief Administrative Officer
MAM/pp
Attachments:
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I I I Report TR-23- 99 Attachment # 1
I I I I Page_~_ -_.-
~m___.'___ -_."
1999 CURRENT BUDGET-SUMMARY
I I [Totals] Impact Cumulative ....................... <
-. ..
I [From Page 2] I
-.- - I\}?\
Add: Operati_ng Increases: [Net of Operating Revenue]
, Non.Controllable [Including Library & Externals I $ (5,606) (0.04~..................
___"..w,,'__._._ i Priority # 1 Town Only I 243,500 1.66 I
-----,_..._-- $ 0.72
,
I ---.
/
Library - Priority # 1 68,160 OA6 2.08 ... ....... ....... ..... ...2491$.... .0 21.'
--.---.----. Museums & VAC - 9,724 0.07 2.15 //0,3611 /0,03
77,884 $ 2.84 p 0,24
--"---'~-'--- -~::,,~~>>/
.,""- I -----
Combined Town & Externals Including Priority #1 iMI . $ 0.96
- _U"'_ I
1998 TAX BASE 14,680,382 I
PROPOSED 1999 TAX BASE(lncludlng Priority #1) 16,248.549 [subject to rounding)
._'.._-~---'-- ____u.
GARBAGE RATE: Regional Ch~rge '.___ 101 [subject to Region Reduction
Municipal Charge 44
Garbaae Flat Rate - 145
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PRIORITY # 2 IMPACT : % _.__~__~um~~ve
. ~----- Monthly $
! Impact % Annual $
-- i18,29/ $
PRIORITY # 2 Considerations: Town 185,000 1.26 3.41 1.52
-,.-.. $
PRIORITY # 2 Consider3:'!i..~~_s: Library 93,649 0.64 4.05 21.71 1.81
" --.-
Total All Requests 594,427 4.05
.......i....i.. < i .................... ...
INOll>: i ..i.... << ~-_.-- ,
Addition of $ 100,000 adds approximately..7% to tax base &_ $3.50 to tax bill , ---
Addition of $ 50,000 adds approximately .3% to tax base & $1.80 to tax bill , ..-.-
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. ,2 ~99 DN:99TXlNCR Report TR.23 ~~ Attahcment #2
. 1999 OPERATING BUDGET 1
I Page 2
" Impact by Department
" ----.- ~.._--
OPERATING: Additional EXDendltures over 1998 Base: Expense Reserve Non-Controllable Priority #1 Prloritv #2
''''''. I Contribution Net Impact MalnlainsService IlncreasesSilrVlce
Administration: ..'.' I
1 Nenotiations (CUPE/Firel!Part time iocl. @JulYf99 .
2 legal - ArbitralionsINeaotialions & General 42,000
3 Board of Trade (3510 $50) r 10 $75,000 in 2000 1 15.000 I
4 Building Services -lead hand reallocated from P.W. on full time basis 1- 25,000 I
5 Economic Development - printina - citizen newsletter J survey etc. ------- 35,000 .
1 -.
Clerks: I f--- ,
6 Transfer to Reserve For Records Retention/Animal Servicesrnet incLl . 20,000 I
7 Animal Services - Building Heatl$9,500J1ncrease P.T. hoursr$8500 ..,' 9,500 8,500 .
1
Finance & Unclassified Administration: :
8 Bell. hone u rade, internet, n6V\l Fire & CIS program line cosls 25,000 I
9. Transfer to Munici al Ca ital Works Reserve Fund {Tax Component of Dev.Chg.} 120,000 ~ - u;
~M
10 Bill 79 1m lications staffing-n6V\l Acctg Manager/overtimefTax Coil] 35;000 ~-
11 GIS Contract & im lementation 60,000 (40,000) . 20,000 ,
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Fire: I i
12 Fire Service. Courtice 4 men hired in 98 @ full yrl 4 men in '99 @ 1/2 year 160,000 (100,OOO} . 60,000
13 Fire Rural House Numbering Re:PD--2-99 [RIF contribution 1 130,000 170,000\ . ~ : 60,000
14 Canatex Exercise - included in tax base, subsidized by Escrow Res.Fund 75,000 175,000\ I
15 Fire Prevention Officer ull vear budaetl 50,000 .
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Public Works:
16 C.B.O. Position/benefits Ifullvearl 50,000 I
17 Public Works. Add back 2 U. Equip. Operators to complement lOne 8S PriOlity#1 & #2) 40,000 40,000
18 SnOlrV Clearing. Sidewalks 40,000
18 Parks Maintenance. temps for maintenance of parks at expected service levels 40,000
19i Buildina & Plumbim:J Inspector for increased inspections I 45,000
I 1 ,
Communit Services: I
20 Community Services, Deoartmental reoraanization 44{){)( -
21 Consultina Services - Masler Plsn 35,000
22 Grants. Community OraanLzations ~:~
23 Grants. Vallevs 2000 Insurance
Plannln : I -
24 PO-12S..g8 X-guard added to budeet 15,000 -- ~- ,
25 Consulting Services; ra CAUSE studies elc. 30,000
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General: I
26 Net: Nonnal Budgetary Increases, Training, Heat, Insurance, Pay EQuiiv, leaa!. Etc 132,128 -- ~ ,
27 Street Li hts added to enerallevv (net) 79,000 -,--_. I
I <' ,
1;027;628 243,500 185,000
Revenue:
28 P.IL/ & Rt.ofWay Linear PropertvTax (150,000)
29 Surplus Applied - increase from $SOak to $1,025k (225,000) -- ,
30 Building PermitsJPenaltv & Int. on Taxes & other general revenue (100,000)
31 Omers Holiday ($130, in 98 budaet, additional) ~O,OOO) ~
32 Other general revenue increases (including roundina from arowth calculations) 60,000
Total Revenue Increase 665,000 - -
33 Growth - estimated value cont:ributed by growth 1 Cil3.5% {525.043)
~ ftotalstoPo_ll
I MUNICIPAL ONLY - OPERATING: NET IMPACT ON TAX BASE [total to page 1 ).WW1Mt:%)\il$%l1_
I I
EXTERNAL'J\~ENCI~BUI)Gl;tReC\lfl!STS ..ii. >H ii .......iii .i . Hiii ;L....... ........ .I....
.. · ....iii. ...... ... .... .. ..ii... .iiH ..i..i ....... Priority#:'!
I I 1999 Request 1998""'" %Over199~o~r,
34ILibrary - (neg'ns)1 Pr.#2 Incr Services [Excludes Main Library Trf] 99=$1,103,477 1,056,608 4.53 47,869 68,160 93,64.9
35;Bowmanvllle Museum 1999 Reauest = $60,990 58,010 6.14 2,980 --~
361Clarke Museum 1999 Reouest = $67,218 57.403 5.19 2,980 6,835
37 Visual Arts Centre 1999 Reauest - $47,000 41,131 7.25 2;980 2,889
ISub-total 56,809 77,884 93 649
Note: Museums & VISual Arts Requests have been placed in Non-Controllable & Priority #1 based on Bo<Nmanville Reauesl
TOTAL REQUESTS - MUNICIPAL & EXTERNAL BUDGETS (5,606)1 321,364 278,649