HomeMy WebLinkAbout01/18/2019 Special Budget Workshop
Special General Government
Committee Agenda
Date: January 18, 2019
Time: 9:00 AM to 2:00 PM
Place: Garnet B. Rickard Recreation
Complex
2440 Durham Regional Hwy 2,
Bowmanville, ON
Hall 3
Inquiries & Accommodations: For inquiries about this agenda, or to make
arrangements for accessibility accommodations for persons attending, please contact:
Samantha Gray, Committee Coordinator, at 905-623-3379, ext. 2106 or by email at
sgray@clarington.net.
Alternate Format: If this information is required in an alternate format, please contact
the Accessibility Coordinator, at 905-623-3379 ext. 2131.
Audio Record: The Municipality of Clarington makes an audio record of General
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and will make the recording public by publishing the recording on the Municipality’s
website.
Noon Recess: Please be advised that, as per the Municipality of Clarington’s
Procedural By-law, this meeting will recess at 12:00 noon, for a one hour lunch break,
unless otherwise determined by the Committee.
Cell Phones: Please ensure all cell phones, mobile and other electronic devices are
turned off or placed on non-audible mode during the meeting.
Copies of Reports are available at www.clarington.net
Special General Government
Committee Agenda
Date: January 18, 2019
Time: 9:00 AM to 2:00 PM
Place: Garnet B. Rickard
Hall 3
Page 1
1 Call to Order
2 Declaration of Interest
3 Finance Department
3.1 Verbal Report Verbal Report from the Director of Finance/Treasurer
Regarding the 2019 Budget.
4 Adjournment
2019 Budget Overview –Education Session
Friday, January 18, 2019
Agenda
External Factors
Historical Trends
BMA Comparative Review
Citizen Engagement
Asset Management
Reserves and Reserve Funds
Long Term Debt Management
2019 Departmental Budgets
Next Steps
2
External Factors
Economic
Closure of the GM Plant in Oshawa
Slowing housing market in parts of Durham and GTA
Overnight interest rates expected to increase 0.25% in Q3 of 2019
Provincial
Funding programs currently being reviewed (likely to decrease)
Provincial affordable housing strategy may have impacts on DC’s or planning rules
GO Transit and other infrastructure projects in Clarington being reviewed
3
Historical Trends
2019 Growth And Tax Levy
1% = $567,600
Growth in 2018 = $385,481,110
Provides new revenue of $1,814,429
2018 Municipal Levy = $56,757,931 Region of
Durham
50%
Municipality of
Clarington
31%
Education
19%
Share of Property Tax Bill -2018
5
Historical Assessment
$-
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
$16,000,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Historical Assessment
2008 to 2018
Residential Assessment Non-Residential Assessment
6
2019 Assessment Mix
Residential Farmland Multi-Res Commercial Industrial Large Industrial Pipeline Managed Forest Exempt
2019 $12,353,533,512 548,596,334 136,333,156 925,892,753 125,299,526 175,737,765 53,145,148 35,081,997 532,214,452
$-
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
2019 Assessment By Type
83.0%
6.2%3.7%3.6%
7
How Is the Money Spent -2018
$0.15
$0.41
$0.49
$0.66
$0.81
$0.95
$1.03
$1.16
$1.44
$2.86
$3.34
$3.96
$4.86
$10.87
$12.68
$15.17
$18.65
$20.51
Communitiy Grants
Economic Development
Tourism
Crossing Guards
Debt Servicing
Animal Services
Municipal Law and Parking Enforcement
Communications
Culture
Engineering Services
Winter Maintenance
Community Planning
Library
Recreation Facilities and Programs
Capital Financing
Corporate Support
Fire Services
Operations *
* Includes Roads, Parks, Cemeteries, Buildings, Streetlights & Sidewalk Maintenance.
How Each $100 of Clarington Local Levy is Spent in 2018
8
Municipal Budget Increases
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Local Budget Increase
As a %
9
Municipal Capital Support
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tax Support to Capital
2008 to 2019
Support to Capital Budget
10
BMA Comparative Review
Province Wide Study –BMA Consulting
Clarington participates in the annual study by BMA
Management Consulting Inc.
Final study has been sent to Council
Provides a valuable tool for comparing Clarington
with other municipalities independently
12
Socio-Economic Factors Overview
Factor Clarington Total Survey
Average
GTA Average
2018 Population Density per sq. km.162 547 1,119
2011 to 2016 Population Increase (%)8.8%4.8%6.0%
2017 Building Construction Value per Capita $ 3,835 $ 3,028 $ 3,541
2018 Estimated Average Household Income $ 116,511 $ 102,194 $ 127,780
2018 Weighted Median Value of Dwelling $ 346,816 $ 340,734 $ 555,650
2018 Unweighted Assessment per Capita $ 133,155 $ 154,140 $ 205,410
2018 Weighted Assessment per Capita $ 136,930 $ 156,898 $ 216,974
13
Financial Indicators
Sustainability –The ability to
provide and maintain service and
infrastructure levels without
resorting to unplanned increases
in rates or cuts to services
Clarington Survey
Financial Position per Capita $ 677 $ 435
Tax Asset Consumption
Ratio
40.0%43.8%
Net Financial Liabilities Ratio (0.8)(0.4)
14
Financial Indicators
Vulnerability –
Addresses a
municipality’s
vulnerability to
external sources of
funding that it
cannot control and
its exposures to
risk
Clarington Survey
Tax Reserves (less Water and Wastewater) as
% of Taxation
119.3%72.7%
Tax Reserves as % of Own Source Revenue 90.9%52.3%
Tax Reserves /Capita $ 726 $ 684
Tax Debt Charges as a % of Own Source
Revenues
0.4%4.4%
Total Debt Outstanding / Capita $ 173 $ 731
Tax Debt Outstanding / Capita $ 173 $ 507
Debt Outstanding per Own Source Revenue 21.6%40.9%
Debt to Reserve Ratio 0.2 1.0
15
Financial Indicators
Flexibility –The ability to issue
debt responsibly without
impacting the credit rating. Also,
the ability to generate required
revenues
Clarington Survey
Taxes Receivable as % of Taxes
Levied
4.5%6.0%
Rates Coverage Ratio 90.9%92.1%
16
Comparing Levy and User Fees
Clarington Survey GTA
Net Levy per Capita $ 1,412 $ 1,527 $ 1,509
Net Municipal Levy per $100,000 Unweighted CVA $ 1,060 $ 1,111 $ 776
Development Charges –Single Detached (includes Region and
Education)
$ 48,869 $ 33,411 $ 72,422
Residential Building Permit Fee $ 2,209 $ 2,270 $ 2,457
17
While levy per unweighted CVA is higher than the GTA, this can be accounted for by the very high commercial
assessment and industrial assessment (which pays a higher ratio) in the central GTA and Western GTA.
Property Taxes
Clarington Survey GTA
Detached Bungalow $ 3,497 $ 3,397 $ 4,188
2 Storey Home 4,536 4,524 4,955
Senior Executive Home 5,497 6,286 6,895
Walk Up Apartment /Unit 1,958 1,382 1,401
Mid / High Rise / Unit 2,050 1,715 1,544
Neighbourhood Shopping / sq. ft.4.96 3.63 4.21
Office Building / sq. ft.3.40 3.04 3.41
Industrial Standard / sq. ft.2.04 1.67 2.19
Industrial Large / sq. ft.0.53 1.11 1.58
Industrial Vacant Land / acre 3,612 3,673 8,602
18
Residential Tax Rate
1.0000%
1.1000%
1.2000%
1.3000%
1.4000%
1.5000%
1.6000%
1.7000%
2014 2015 2016 2017 2018
Comparative Residential Tax Rates
5 Year Rolling (2014 to 2018)
Brock Clarington Oshawa Pickering Whitby
19
Detached Bungalow –2008 to 2018
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Detached Bungalow -Tax Levy
2008 to 2018
Brock Clarington Oshawa Pickering Whitby
20
Detached Bungalow –Annual Increase Per Year 2008 to
2018
0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%
Clarington
Oshawa
Pickering
Whitby
Average Annual Change / Year
2008 to 2018
21
2 Storey –2014 to 2018 (No information available prior)
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2014 2015 2016 2017 2018
Change in Tax Levy -2 Storey
(2014 to 2018)
Brock Clarington Oshawa Pickering Whitby
22
2 Storey –Average Annual Change in Levy 2014 to 2018
-2.0%-1.5%-1.0%-0.5%0.0%0.5%1.0%1.5%2.0%2.5%3.0%
Brock
Clarington
Oshawa
Pickering
Whitby
5 Year % Change (2 Storey)
23
Affordability of Taxes
Clarington Survey GTA
Property Taxes as a % of Household Income 3.6%3.8%3.8%
Water / Sewer + Taxes as a % of Household Income 4.4%4.9%4.5%
24
Citizen Engagement
2019 Citizen Budget Survey
Second Year Completed
Purpose is to provide input in determining priorities
Focused on operating expenditures only
131 Respondents (78 in 2017)
Overall 85.6% of respondents are neutral or satisfied
with the value they receive for their dollar
Sample size is not statistically significant
0%
10%
20%
30%
40%
50%
60%
70%
Satisfied Neutral Dissatisfied
Value for Tax Dollar
26
Clarington Service Valued The Most
0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%16.00%
Emergency and Fire Services
Roads - Winter Maintenance
Roads Maintenance
Recreation
Parks, Bike Lane, Trails and Cemetery Maintenance
Library, Museums, Arts, Older Adults & Youth Centres
Land Development and Planning
Regulatory Services
Community Grants & Sponsorships
Other
% Most Valued
27
Changes to Funding By Service Category
0%10%20%30%40%50%60%70%80%90%100%
Emergency and Fire Services
Municipal Law Enforcement
Animal Services
Recreational Facilities and Programs
Community Grants Program
Community Events Program
Roads Maintenance
Roads Maintenance - Winter Control
Land Development and Planning
Parks, Bike Lane, Trails and Cemeteary Maintenance
Library, Museums, Arts, Older Adults and Youth Centres
2019 Survey -Spending Levels
Increase 5%Maintain Decrease 5%
28
Asset Management
Regulatory Changes
July 1, 2019 –Strategic
Asset Management
Policy
•Outline commitments to
best practices and
continuous improvement
July 1, 2021 –Phase 1
•Core assets
•Current level of service
measured by standard
metrics
•Costs to maintain levels of
service
July 1, 2023 –Phase 2
•Phase 1 extended to all
assets
July 1, 2024 –Phase 3
•Add proposed levels of
service
•Lifecycle management and
financial strategy
Update Phase 3 every 5
years
30
Asset Management In Clarington
Asset Management Plan received in fall 2017
Meet requirements of funding agreements
Q1 2019 –Inter-departmental working group established for asset management
Draft Strategic Asset Management Policy completed, going through review process
New requirements for Council
Must approve Strategic Asset Management Policy
Must approve asset management plans (which will include financing strategy eventually)
Increased public awareness (requirement for AMP to be on the website)
31
Reserves and Reserve Funds
Reserves and Reserve Funds
Obligatory Reserve Funds
Shown as deferred revenue on balance sheet
Legislative or contractual obligation (i.e. Development
charges, gas tax, etc.)
Reserves
Not separately held fund (it’s a parking lot)
Does not earn interest
Reserve Fund
Separately reported fund with income and expenses
Earns interest
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2013 2014 2015 2016 2017
Year End Balances
Reserves and Reserve Funds
Obligatory Reserve Funds Reserves Reserve Funds
33
Obligatory Reserve Funds
$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000
Parkland cash-in-lieu
Federal gas tax
Building code act
Provincial infrastructure
Development charges
Obligatory Reserve Funds
2017 2016 2015 2014 2013
34
Reserves
Tax write-off Acquisition of capital
assets
Legal / consulting
issues Election expenses Fire prevention Waterfront trail Burketon park
improvements
Samuel Wilmot nature
area
Clarington Heritage
Committee Board
2013 $256,045 2,777,982 967,016 235,686 97,132 17,818 7,569 523 6,039
2014 $306,045 3,007,947 1,084,776 18,312 12,132 17,818 7,569 523 8,138
2015 $381,045 3,162,044 1,213,920 91,812 75,694 -7,569 49 9,752
2016 $456,045 3,054,179 1,242,819 181,812 85,969 7,569 49 7,781
2017 $-3,277,989 1,283,376 281,812 83,730 7,569 49 8,222
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Reserves
2013 2014 2015 2016 2017
35
Reserve Funds
$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000
General municipal purposes
Rate stabilization
Strategic capital
Recreation programs and facilities
Industrial development
Acquisition of capital assets
Municipal capital works
Other capital - unspecified
Road contributions
Reserve Funds
2017 2016 2015 2014 2013
36
Projected Balances –Reserve Funds
Development Charge Projected
December 31
General Government $ 622,662
Public Library 745,314
Emergency Services 5,068,344
Indoor Recreation (437,860)
Eng –Park Development & Facilities 1,915,637
Operations 2,314,186
Roads and Related 10,524,251
Parking 420,072
Reserve Fund Projected
December 31
Strategic Capital $9,843,585
General Municipal 2,513,098
Rate Stabilization 5,368,707
Engineering Inspection 2,453,902
Building Division 2,567,903
Parkland Cash In Lieu 2,610,746
Library Capital 1,344,524
37
Long Term Debt Management
Debt Regulations
The Municipality has several restrictions for issuing debt
Capital only
Maximum debt servicing costs of 25% of own source revenues
Can only issue debts through the Region of Durham
Timing of issuance and cost of debt is not within our control
Funding of debt servicing costs can be Development Charge related
39
Debt Servicing Costs vs Annual Repayment Limit
2017
Total debt 4.8%
Tax debt 0.8%
40
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Debt Servicing Costs vs Annual Repayment Limit (2007 to 2033)
Total Annual Repayment Limit (2018)
Max 25%
Provincial
averages
Total 5.1%
Tax 4.4%
Total Ending Balance for Existing Long Term Debt
41
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Total Ending Balance for Long Term Debt
2007 to 2033
Total
Future Debt Use
A policy will be developed for debt management
The asset management strategy will drive priorities
for projects which will impact timing of potential
debts
A long-term financial strategy is suggested
Takes into account DC Study
Asset Management Plan
Strategic Plan
Master Plans
42
2019 Budget Submissions
Staffing Complement
Department Non-Affiliated Affiliated Other Total
Mayor and Council 3 0 0 3
Administration 5 4 3 12
Legal Services 2 0 0 2
Corporate Services 15 10 0 25
Clerks Services 7 16 5 28
Finance Department 7 16 0 23
Emergency / Fire Services 4 66 125 195
Engineering Services 10 22 0 32
Operations Department 9 62 32 103
Community Services 19 29 364 412
Planning Services 7 18 41 66
2019 Staffing Changes -Recommended
Planning
Planner II (Contract to May 2019, extend to 2020)
Tourism
Merge two part time to one full time
Operations
3 Temporary Staff
2 Seasonal
Clerks
Part Time Animal Care Attendant
Engineering
Traffic Technician
Development and Utility Technician
Emergency Services
Increase $125,000 contribution to future staffing reserve
fund for future hiring
CAO’s Office
Climate Change Coordinator (approved January 14, 2019)
45
2019 Staffing Changes –Other Requests
Corporate Services
IT Specialist
EMS
4 Fire Suppression
Fire Prevention Inspector
Training Officer
46
Mayor and Council
Mayor and Council
Strategic Oversight
Governance
Community Engagement
48
Mayor and Council
Community Co-
ordinator
Administrative
Assistant to Council
Executive Assistant
to the Mayor
Administration
Chief Administrative Officer –Andrew Allison
Organization and Services
Administration
Communications
Tourism
Chief Administrative Officer
Manager of Internal Audit
Communications and
Tourism Manager
(6 FT, 3 PT)
Executive Assistant to the
CAO
50
Manager of Internal Audit is included
in Finance for cost purposes
2019 Budget Highlights
Operating Budget Highlights
Clarington Board of Trade Increase
Increase for staff recognition
Communications
Increase for design work
Increase for corporate advertising
Increase for phone / fax (allocated from Corp Services)
Capital Budget Highlights
No capital items
51
Legal Services
Municipal Solicitor –Rob Maciver
Organization and Services
Municipal
Solicitor
Law Clerk
Legal Services
53
2019 Budget Highlights
Operating Budget Highlights
Removing Professional Fee Recovery revenue
None expected in 2019
Professional Fee Recovery Expense will include
transfer from DC Revenue for OPA 107
Capital Budget Highlights
No Capital Budget
54
Corporate Services
Director Of Corporate Services –Marie Marano
Organization and Services
Director
Information Technology
Manager
(10 FT)
Compensation & Benefits
Supervisor
(2 FT)
Human Resources Manager
(1 FT)Health & Safety Co-ordinator Purchasing Manager
(5 FT)
Administrative Assistant
Human Resources
Payroll and Benefits
Corporate Health and Safety
Purchasing
Information Technology
56
2019 Budget Highlights
Operating Budget Highlights
Administration
Increase Other Capital (photocopiers)
Increase Misc Other Revenue
Human Resources
Decrease legal fees and consulting fees
Increase bank charges for payroll
IT
Shift funds from hardware maintenance to software
maintenance
Capital Budget Highlights
Project Tax
Support
Other
Computer Hardware $110,000 $90,000
Computer Software 200,000 1,050,000
Computer software includes planned upgrade of LDO
software which is an inter-departmental project
57
Clerks Services
Municipal Clerk –Anne Greentree
Organization and Services
Municipal Clerk
Deputy Clerk
Accessibility Co-
ordinator
Municipal Law
Enforcement Manager
(13 FT, 4 PT)
Records Information and
Legislative Project Co-
ordinator
Administrative Assistant
(4 FT, 1 PT)
Council / Committee Support
Elections
Animal Services
Municipal Law and Parking Enforcement
Records and Information Management
Licensing
Vital Statistics
Accessibility
Marriage Ceremonies
Cemetery Administration
Internal Printshop / Mailroom Services
59
2019 Budget Highlights
Operating Budget Highlights
Clerks
Volunteer recognition moved to CAO Office
Decrease record retention (was a specific project)
Increase furniture and equipment (no previous budget)
Animal Services
Decrease vet services
Municipal Law Enforcement
No significant changes
Parking Enforcement
Increase Repairs and Maintenance
Elections
Expenses removed from 2018 election
Proposed increase for election reserve (from $65,000 to $100,000) will
fund ward review
Capital Budget Highlights
Project Tax
Support
Other
Sign for Trulls Road $55,000
Parking Lot Central
Meters
24,000
60
Finance and Unclassified Administration
Director Of Finance / Treasurer –Trevor Pinn
Organization and Services
Director / Treasurer
Deputy Treasurer
(2 FT)
Tax Collector
(5 FT)Manager of Internal Audit Capital Asset Manager
(3 FT)
Manager of Accounting
Services
(5 FT)
Administrative Assistant
(1 FT)
Insurance and Risk Management
Investments and Banking
Financial Studies
Accounting
Tax Billing and Collections
Budget, Financial Reporting and Performance
Measures
Internal Audit
Asset Management
62
2019 Budget Highlights
Operating Budget Highlights
Finance
Increase in postage, courier
Increase in printing tax bills
Unclassified
Professional Fees
Actuarial study $25,000, BMA Study $3,000, DC Study
$80,000 (90% DC), other $12,500
Increase in Reception / Tributes
Capital Budget Highlights
No Capital Budget
63
Emergency / Fire Services
Director Of Emergency / Fire Services –Gord Weir
Organization and Services
Director / Fire Chief
Deputies (2)
Platoon Chiefs (4)
Suppression Captains (8)
Firefighters (44)
Mechanical Technician Senior Training Officer
(1 FT)
Senior Fire Prevention Officer
(4 FT)
Administrative Assistant
(2 FT)
Emergency Response
Emergency Planning
Fire Prevention and Public
Education
Fire Suppression
Communications
Training
65
2019 Budget Highlights
Operating Budget Highlights
Administration
Increase in clothing / uniforms
Increase in phone / fax
Fire Prevention
Increase in Emergency Management / Education
Fire Suppression
Increase in safety equipment
Fire Communication
Increase in radio / equipment rental
Fire Mechanics
Increase in repairs for vehicles
Capital Budget Highlights
Project Tax Support Other
SCBA $45,000
Bunker Gear 75,000
Leather Bunker Boots 7,500
SCBA Air Compressor (Stn
4)
88,000
P25 Pagers 6,000
Thermal Imaging Cameras $25,000
Car 1-10 55,000
66
Engineering Services
Director Of Engineering Services –Anthony Cannella
Organization and Services
Director
Assistant Director
Chief Building Official
(10 FT)
Capital Works Engineer
(5 FT)
Construction Manager
(3 FT)
Development Manager
(1 FT)
Park Development
Manager
Administrative Assistant
(5 FT)
Right of Way Management
Capital Budgeting and Forecasting
Design and Construction
Park Development
Development Review / Municipal
Servicing
Subdivision Construction Inspection
Transportation and Traffic
Pavement Management
Building Permit and Inspection
Utility Co-ordination
68
2019 Budget Highlights
Operating Budget Highlights
Administration
One-time increase for studies
Decrease to office supplies and phone /
fax lines
New requirement for natural area
monitoring
Building Inspection
Increase in Printing
Create professional fee budget
Roads and Structures
New requirement for natural area
monitoring
Capital Budget Highlights
Asset Class Tax
Support
Other
General $55,000 $160,000
Street Lighting 100,000 200,000
Parks 275,564 2,169,076
Bridges 1,102,065 987,935
Roads and Structures 1,456,000 9,981,000
Sidewalks and Walkways 320,000 140,000
Traffic Signals 85,000 13,500
Erosion Protection 200,000
69
Parks Projects
Bowmanville Valley Trail
Newcastle Community Park
Samuel Wilmot Nature Area
Toyota Trail
Waterfront Trail Access Barriers
Outdoor Recreation Needs Study
Farewell Creek Trail
70
Roads and Related Projects
Roads
Pavement Rehab Program
Roadside Protection Program
Rural Road Program
Projects >$100,000
North Scugog Court
Concession Road 3 (Middle Rd to Gimblett St)
Prospect Street (Odell St to Fourth St)
Middle Rd (Con Rd 3 to Urban limit)
Lambs Rd Interchange (EA)
George Reynolds Dr Extension
Nash Rd Rehabilitation and bicycle facilities
Whistle Cessation Study
Baseline Rd Reconstruction (Trulls Rd to Courtice Rd)
Related
Sidewalks
Unspecified Replacement
Pave Waterfront Trail (Waverley Rd to West Beach)
King Lane Sidewalk (Hampton)
Traffic Signals
Accessible signal upgrade (Clarington Blvd at Stevens
Rd)
71
Operations Department
Director Of Operations –Fred Horvath
Organization and Services
Director
Manager of Operations
Supervisor Parks
Supervisor Roads (3)
(44 FT, 2 PT, 22 Students, 5
Seasonal
Supervisor Fleet
(5 FT, 1 Apprentice)
Supervisor Building
(9 FT, 1PT)
Administrative Assistant
(4 FT, 1PT)
Road Maintenance
Fleet Maintenance
Parks Maintenance
Winter Control
Parking Meters
Sidewalk Maintenance
Municipal Buildings
Streetlight Maintenance
Cemetery Operations
Fleet maintenance and acquisition
Rural Road Rehabilitation ProgramStaff for Roads are
shared with Parks
73
2019 Budget Highlights
Operating Budget Highlights
Administration
Reduction in revenue from Hwy 407
Parks
Increase operational supplies (Wallbridge Park)
Decrease phones, lighting at playing fields, irrigation system
Increase for grass cutting
Increase for waste disposal
Increase for field development (Clarington Field, Depot 42)
Operating Budget Highlights
Building and Property Maintenance (Including MAC, Halls, Other)
Increase to building repairs
Increase to operating equipment repairs
Increase to fire equipment repairs
Road Maintenance
Increase to urban/rural trees (EAB)
Increase to catch basin and storm sewers
Increase to fencing
Maintain emergency clean-up contribution
Increase for winter control and senior winter clearing
Increase for guiderails and other safety equipment
74
2019 Budget Highlights
Capital Budget Highlights
Asset Class Tax
Support
Other
Parks $100,000 $250,000
Cemetery 45,000
Roads and Structure 50,000
Building and Property
Services
651,250 82,500
Road Maintenance 1,885,000 475,000
Fleet 1,405,000
75
Project Highlights
Parks
Various park upgrades
Park furniture / equipment
Cemetery
Columbarium
Roads and Structures
Retaining walls
Buildings and Property Services
Emergency Services Stn 3
Orono Town Hall
Haydon Community Centre
Various roof replacements
Kendall Community Centre
Various Arenas
Newcastle Community Hall
Clarington Stormwater Pond clearout
76
Community Services
Director Of Community Services –Joseph Caruana
Organization and Services
Director
Facilities Manager
(27 FT, 89 PT)
Recreation Manager
(7 FT, 244 PT)
Client Service Manager
(7 FT, 36 PT)
Administrative Assistant
(2FT)
Administration
Aquatic Facility Operations
Arena Facility Operations
Municipal Programs
Community Development
Municipal Construction
Community Grants
Older Adult Programs
Youth Liaison
Indoor Soccer Operations
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2019 Budget Highlights
Operating Budget Highlights
Several expenses moved from one sub-department to
another as a result of 2018 creation of three divisions
Facilities
Increase to repairs and maintenance for aging infrastructure
Increases and decreases to rental revenues as appropriate based
on trending actuals or loss of available space (SCA and DHRC)
Reduction throughout for utilities to reflect better efficiency
Increase to other capital (non-TCA) for emergency response
and unforeseen needs
Increase to RRC snow clearing for contract change
Operating Budget Highlights
Concessions
Reflect change in operations and commissions
Proshop
Reallocated to Customer Service division
Programs
Increase aquatic program revenues in DHRC, CCC and ASC
Reduce fitness revenues at CCC to reflect trend and split out
programs to other facilities
Remove Youth Centre pilot project from Programs
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2019 Budget Highlights
Capital Budget Highlights
Asset Class Tax
Supported
Other
Facilities $383,000 $619,500
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Capital Projects
South Courtice Arena
Heat Pump Compressors and roof replacement
Safety ladder and railing rooftop cooling tower
Re-caulk exterior windows and control joints
Walk behind scrubber
Darlington Sports Centre
Walk behind scrubber
Lobby skylight replacement
Diane Hamre
Duct insulation repairs
Rickard Rec Centre
Roof Top HVAC
Pad A Metal Roof Replacement
Refrigeration Plate and Frame Exchanger
Olympia room concrete floor replacement
Courtice Community Centre
Re-grout pool tanks
Refinish pool change room floors and locker
replacement
Older adults convection ovens
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Planning Services
Acting Director Of Planning Services –Faye Langmaid
Organization and Services
Director
Manager Community Planning
& Design
(5 FT)
Manager Development
Review
(8 FT)
Manager Special Projects
(4 FT)
Administrative Assistant
(4 FT, 40 PT)
Planning Policy
Urban Design
Development Approvals
Heritage Preservation
Special Projects / Research
Real Estate
Geomatics
Crossing Guards
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2019 Budget Highlights
Operating Budget Highlights
Unassigned
Increase to Courtice CIP
Increase to Orono CIP
Administration
Consulting for Secondary Plans (offset by developer
contribution)
Revisited revenues and increased which will be dependent
on economy and housing growth continuing on the same
trend
Capital Budget Highlights
Asset Class Tax
Supported
Other
Land Acquisition $ 696,728 $ 67,626
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Ongoing Development
85
External Agencies and Related Organizations
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Levies, BIAs
Levies relate to the Region of Durham and the
educational portion for the Province of Ontario
These are outside of our control and are simply a flow
through as we are the collecting agent
BIAs are established in Orono, Newcastle and
Bowmanville
The BIA sets their budget and requests that the
Municipality collect based on assessment within their
boundaries
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Clarington Library
Clarington Public Library sets their own
budget
Request for 2019 is 2.2% for operating
grant ($69,204 increase)
Library is also requesting funds from
their reserve fund for capital works
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2012 award 2013 award 2014 award 2015 award 2016 award 2017 award 2018 award 2019 request
Clarington Library Operating Support
Clarington Library
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Annual Increase in Funding
89
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2012 award 2013 award 2014 award 2015 award 2016 award 2017 award 2018 award 2019 request
% Change Year over Year in Funding
2009 to 2018
Clarington Library
Museums, Arts and External Agencies
Request Increase over 2018 % Increase
Visual Arts Centre $ 215,065 $ 4,217 2.0%
Clarington Museums 308,080 25,437 9.0%
Firehouse Youth (John Howard)276,731 211,531 324.4%
Bowmanville Older Adults 306,800 11,800 4.0%
Newcastle Community Hall 20,000 0 0.0%
Clarington Community Care 50,000 0 0.0%
Increase for John Howard
reflects operations of two
additional youth centres
(Newcastle and Courtice)
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Historical External Agency Support
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$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Community Care Durham Clarington Museum Bowmanville Older Adult FireHouse Youth Newcastle Community Hall Orono Cemetery Board Visual Arts Centre
Historical Support for External Agencies
2012 award 2013 award 2014 award 2015 award 2016 award 2017 award 2018 award 2019 request
Includes request for operating
two additional youth centres
Hospital Funding
A request for $5,000,000 was received on December 10, 2018 and referred to the 2019 budget deliberations
Points of clarification
The request is for $5,000,000 in nominal value (i.e. not inflated dollars)
Funds are not required until project is completed (could be 2024 before first cheque is required)
Several options
Lowest estimate would be $4,190,000 to provide $5,000,000
$419,000 to a reserve fund from 2019 to 2028
Contributions to Foundation from 2024 to 2033 of $500,000 per year
Lowest annual contribution total would be $4,480,000
$224,000 to a reserve fund from 2019 to 2038
Contributions to Foundation from 2024 to 2038 of $333,333 per year
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Next Steps
Upcoming Meeting Dates
February 5, 2019 –draft budget book distribution
February 15, 2019 –Special General Government Committee Meeting (External Agencies)
February 19, 2019 –Special General Government Committee Meeting (Budget)
February 25, 2019 –Council Meeting with budget ratification
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Modernizing The Financial Framework
Existing Policies for Review
Accounts Receivable (include collections and credit
cards)
Capitalization
Capital Project Overexpenditure (to be replaced)
Investment Policy (investigating prudent investor)
New Policies for Creation
Budget Policy
Debt Management Policy
Reserve and Reserve Fund Policy
Asset Management Policy
95
Changing Government Landscape
Provincial Government Potential Changes
Planning Act
Development Charges Act
Provincial Policy Statement
Reporting Burden
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Proposed Budget Policy
Sets target for staff to come to Council with a reasonable draft
Does not prevent Council from going above or below the target
Target is set at
Operating between 75% and 125% of the July to July Ontario CPI
Capital is set between 1.5% and 2% of prior year
While CPI is an inflationary factor it may not be properly reflective of the Municipality’s inflation
Construction costs
Emergency services costs
Gas and diesel
Wage and arbitration costs
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How Does the Policy Compare to What Was Done
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Actual Levy Increase vs Budget Policy Range
(Using July CPI)
Low - July High - July Actual Levy Increase
Deflationary
Period
Actual increases have attempted
to smooth inflationary pressures
98
Summary of Tax Levy –DRAFT SUBJECT TO CHANGE
Budget Impact $ Amount
Increase to Levy (net of Transfers, Capital Support)$1,196,412
New Staff 430,000
Estimated health and dental benefit increase 297,952
Increase tax write off expenses 50,000
Increase contribution to future staffing reserve fund 125,000
Request from Hope Durham 5,000
Request from Grandview Children’s Centre 20,000
Request from Lakeridge Hospital 250,000
Council Chamber upgrades 70,000
Decrease finance service fee revenue 112,000
Decrease council compensation (92,848)
Total Budget Increase (DRAFT SUBJECT TO CHANGE)$2,463,516
Summary of Tax Levy Impact
Current municipal levy increase $2,463,516 4.34%
This includes all items historically known as the “A List” and “B List”
If all items included we are within the range outlined in proposed budget policy
Range is $2,175,000 for 3.83% to $3,335,000 for 5.88%
Mid point of the range is $2,755,000 for 4.85%
Based on conversations with other municipalities in Durham anticipated increases (except for Pickering) is 4% or
higher
100
Conclusion
Draft budget is well underway and will be within the target range
It is important to make decisions with a long-term view, decisions made today could hinder choices in the future
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