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Home My WebLink About11/21/2008 Special - 2009 Budget Cl!J!pn SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: November 21,2008 TIME: 9:00 A.M. PLACE: NEWCASTLE & DISTRICT RECREATION FACILITY 1. MEETING CALLED TO ORDER 2. DISCLOSURES OF PECUNIARY INTEREST 3. FINANCE DEPARTMENT Verbal Report of the Director of Finance/Treasurer - 2009 Municipal Budget 4. ADJOURNMENT I CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TE:MPE:RANCE: STRE:E:T. BOWMANVILLE:, ONTARIO L 1 C 3A6 T 905-623-3379 I ! AGENDA . Financial Indicators . Status of Reserves and Reserve Funds . Development Charges . Historical Trends . Proposed Draft Capital Budget . Long-term Debt . Proposed Draft Tax Levy Impact . Economic Considerations . Looking Forward to 2010 . Where do we go from here? 11/20/2008 1 FINANCIAL INDICATORS . Clarington participates in an annual study performed by BMA Management Consulting Inc. . The BMA Study includes 82 Ontario municipalities representing in excess of 80% of the Ontario population . Provides a valuable tool for comparing to other municipalities as well as assessing affordability from a local perspective . Study in draft form due to timing of budget NET MUNICIPAL LEVY PER CAPITA . Calculated using 2007 estimated population and 2008 municipal levies . May vary as a result of the following: , Different service levels , Variations in types of services c Different methods of providing services c Varying demand for services c Locational factors c Urban/rural composition differences c Age of infrastructure 11/20/2008 2 Net Municipal Levy Per Capita Selected Municipalities Municipality per Capita Rating Survey per Capita Upper and lower Lower Only Milton . 882 low 5 327 Claringlon . 1,094 mid 2. 401 .,., . 1,230 high 58 412 Halton Hills . 971 low 12 440 Pickering $ 1,389 high 74 458 Whitby $ 1,281 high 65 470 Oshawa $ 1,402 high 76 688 GTAAverage . 1,202 Survey Average $ 1.164 ASSESSMENT PER CAPITA . Provide an indication of the "richness" of the assessment base . Assessment important due to reliance of municipalities on property tax base . Generally GTA municipalities have high assessment per capita as well as cottage country due to high lakefront and low year round populations . Municipalities with higher assessments per capita tend to have properties valued higher than other jurisdictions ill 11/20/2008 3 ASSESSMENT PER CAPITA Municipality Unweighted Position eVA/Capita Oshawa . 81,329 low Clarington $ 89,836 mid Ajax $ 98,110 mid Whitby , 99.645 mid Pickering . 111.627 high Halton Hills $ 115,612 high Milton $ 119,293 high GTAAverage $ 125,482 Survey Average $ 98,884 2008 ASSESSMENT COMPOSITION 0%4')() O'}6 % SHARE . RESlllENTIAI, . MlII.TI-RESmENTIAL .('(lMMEIWIAI, .INI)JJSTRIAI. .PIPI':I.INES . FARMLANDS . MANA( ;ED F( lRESTS 11/20/2008 4 PROPERTY TAXES AS A PERCENTAGE OF INCOME Mitton . 3.437 3.3% low Halton Hills . 3.967 3.7% low Pickering $ 4,658 4.0% low Whitby $ 4.546 4.4% low Ajax . 4,398 4.5% mid Clarington $ 4,030 4.7% mid Qshawa . 4,122 5.8% high Survey Average $ 3.751 4.8% mid RESERVES . Critical component oflong-term financing plan . Provides stability to tax rates in the face of variable economic factors . Provides financing for one-time requirements without impacting tax rates . Makes provision for asset replacement of infrastructure currently depreciating . Avoid spikes in capital budget requirements and reduce reliance on long-term debt Source of internal financing . Provide flexibility to manage debt levels and protect the municipality's financial position . Provide for liabilities incurred in current year but paid for in the future 11/20/2008 5 RESERVES AS A % OF TOTAL EXPENDITURES 120 100 80 60 ~ . 1--11 HI: 40 20 I ---. o ~ :i7 0-7 {? {> U'" ~V .~.q. 0-7 07/ ",,0-7 ~'P' c':-U [<.'94, U~ -*'''' O~ ~o/ .#' ~o/' <1,.,--0 'P' RESERVES AS A % OF TOTAL TAXATION Municipality Reserves Taxation asa% exel. oblig of Total Taxation Oshawa $24,275,056 $ 94,578,597 25.7% Halton Hills $ 6.826,158 $ 23,914,701 28.5% Pickering $23,927,149 $ 43,024,238 55.6% Ajax $26,016,290 $ 38,551,148 67.5% \IVhitby $48,467,712 $ 51,555,950 94.0% Milton $27.933,951 $ 21,048,011 132.7% ClaringtOl1 $55919,191 $ 35,507,805 157.5% Survey Average 71.4% 11/20/2008 6 DEBT CHARGES AS A % OF TAXATION % 8.<)% )'iL~llllj ~9" 0~~ ~:;; <<.,O~ ~";o. . 0 . .",~- .....' ~<$- ~~.$'V ~ #" ~'9 0'v v~ . ~O 0"3 v{9 .# $0/' 0/ ~:~ ";0 . This is tax levy supported debt only (not growth related) DEBT AND RESERVES PER CAPITA $1,200 81,000 $800 _DEBTPERCAPITA _RESERVES PER CAPITA '000 ! _J $400 $200 $--- 1- elf " {!- ^,O .;> .~",. ,,~ ~~ 0-<-: :Y ~~ ",<&<f ~-i$ 0..r {i"~ $'~ & .X' .<J" d" ~ 11/20/2008 7 r FINANCIAL POSITION . =Total fund balances (including equity in Veridian) less amount to be recovered in future years Gong term debt, post employment liabilities) . Reflects future financial capacity and amount of current obligations not funded NET FINANCIAL POSITION C\UI\I(ll'\IIn I Ml:\l(ll'\Il'OSlIIO:\' "'11 :'\I( 11'\1 POSllIO" 1'1 R (\1'11\ TORONTO -S2,007,lR4,RoR -81.029 OSK>\WA -""'-',876,'J49 -S6;;u KAWARTIIA LAKES -540,0,)9,:)67 -5522 WHITBY $24,023,823 8208 CLARINGTON $32,853,926 5411 AJ.o\X $53,809,064 8575 PICKERING $75,277,618 $852 HALTON HILLS $49,504,735 $871 MILTON $80,988,319 $1,204 AVERAGE $292 11/20/2008 8 FIRE NET EXPENDITURES PER CAPITA _1111_.... HALTON HILLS " "4 $4,284,565 ,0.6a ." 50,000-99,999 '" KAWARTHA 3' 8, $5.968.836 $0.77 ,,8 50,000-99,999 3,059 '-AX" MILTON " 86 $5,826,268 $0.68 "7 50,000"19.999 em WHITCHURCH- '8 " $2,619,668 $0.62 '94 20,000-49,999 207 STOUFFV1LLE CALEDON ,6 $5,169,8;>6 $0.,58 .s, 50,000-99,999 "'" CLARlNGTON " '" 58,276,849 81.07 S103 50,000-99.999 6u MAX '" 812,490,210 81-3\ "" 50,000-99,999 " NEWMARKET u7 810,2;31,373 80.98 SI35 50,000-99,999 38 PICKERl"'G '" 0 813,933.915 81-33 ''''' 50,000-99,999 '" BRANTFORD '" 0 $14484,405 $2.09 8159 50,000-99.999 " PETERBOROUGH 99 0 $J.3,182,009 $2.14 .,,, 50,000-99.999 ,8 AVERAGE $].21 .'~ COMPARISON OF RELATIVE TAXES . "Like" property comparisions . Provides overall trends, not exact differences . Differences in relative tax burdens caused by: Values of like properties vary significantly Affected by tax ratios Non-uniform education rates o Level of service choices u User fee structure , Other revenue types ie. casino 11/20/2008 9 PROPERTY TAX COMPARISONS- DETACHED BUNGALOW - 2008 MlJNI('fP\IIf\ 2()o8I'ROI" RIJ 1,\XtS RI 1.\11\1 I \XIH RBI N MILTON $2.543 LOW HALTONHIl..lS $2,744 MID CLARINGTON $2,891 MID WHITBY $3,485 HIGH AJAX $3.566 HIGH OSHAWA $3,727 mGH PICKERING $3,917 HIGH AVERAGE-OVERAll $2,819 AVERAGE- POPULATION 50,000- $2,854 99.999 GTAAVERAGE $3,255 PROPERTY TAX COMPARISONS- SENIOR EXECUTIVE HOME- 2008 Ml':\I(IP\lrn ..!.noN I'ROI'I- R n I \XI S RIL\Ii\l- nXHlRDI":\ MILTON $3.957 LOW CL.l,R!NGTON $4.552 LOW HALTON HILlS $5,139 MID "''HITBY $5,302 MID PICKERING $5,376 HIGH AJAX 85,434 HIGH OSHA'iNA 85,881 HIGH AVERAGE-OVERALL 85,184 AVERAGE- POPUIATION 50,000- $4,805 99.999 GTAAVERAGE $5,426 11/20/2008 10 PROPERTY TAX COMPARISONS- NON-RESIDENTIAL CLASSES 2008 -.....-..- MULTI-RES: $1,485 Mm WALK-UP APARTMENT MCLTl.RES:MID $1,723 MfD TO HIGH RISE OFFICE SLOG $l.:;8 Sl..5~ ArCH NElGHBOURHOOD $2.19 81.87 HIGH SHOPPING HOTELS "",, m6 ww "IOTELS $550 ,-,,,, ww INDUSTRVIL $1.22 $0.88 MID LARGE w.", $0.24 cow INDCSTRIAL PROPERTY TAX COMPARISIONS FARMLAND - 2008 ?tit !\(('IP\llfl n H'L\SS t I \XJ:.SPI R HR' {I \55 I C\ \(1 \55(, 1 \XlS 1'1 R \l'RI ( L\SS6 BELLEVILLE $1,950 $8.74 $300 $1.34 CALEIlON 86,850 817.18 81,000 $2.51 CLARlNGT'ON $4,975 814.60 '75' $2.20 EAST $18,100 851.75 86,325 S18.08 G\'{[LLIJ'l.1BURY GEORGINA $6,400 $22.32 $2,250 $7.85 HALTON HILLS $5,800 $12.31 $875 $1.86 KAWARTHAlAKES $2.775 $10.12 '4'5 $1.55 :MILTON 86,200 $11.70 $925 $l.75 OSH..o\WA 87,200 S25.68 $1,075 $3.83 AVERAGE 85,554 S18.00 81,003 $3.19 , 11/20/2008 11 2008 BMA STUDY - CONCLUSIONS DRAWN . Clarington's tax rates are at the average in most categories except large industrial . Clarington's relative tax burden is in the mid range . Property taxes as a percentage of income rated mid in Clarington in comparison to others . Clarington has the 29th lowest net levy per capita out of the 82 participants (Oshawa is 76 out of 82) 2009 PRELIMINARY BUDGET OVERVIEW . Based on preliminary "notice-based" roll that is subject to change in December . Currently at 7.00% after growth has been applied at 2.0% including all new initiatives . 1% is approximately $320,000 . A 1% increase in the local levy = approximately $10 for an average house valued at $244,400 . Impact is $70 annually .ill. 11/20/2008 12 STATUS OF RESERVES Self Insured Losses 404,771 454,771 Municipal Acq. Of Prop. 260,717 260,717 Tax Write-off 351 ,856 251,856 GIS 348,927 373,927 General Capital 283,738 56,238 Legal/Cons/Prof fees 33,186 33,186 Records Maintenance 73,910 13,910 Election Expenses 103,311 178,311 Fire Prevention 0 0 STATUS OF RESERVES CONT'D Pits and Quarries Park Development Don. Waterfront Trail Burketon Park Samuel Wilmot Nature Hockey Museum Acq. TOTAL 508,143 10,000 20,585 7,569 3,011 20,000 2,429,724 258,143 10.000 20,585 7,569 3,011 o 1,922,224 11/20/2008 13 STATUS OF RESERVE FUNDS ---- ECONOMIC DE\'. $48,060 0 -$90,000 RIF ~fUN. CAPITAL $4,952,622 -$512,811 0 WORKS DEBT $183,005 0 -$33,337 RETIREMENT IMPACT/ESCROW $1,660,524 0 0 GEN. MUNICIPAL $3,566,043 0 -$30,000 RATESTABIL. $3,838,864 0 -$1,000,000 COMPo 8771,231 -$220,000 0 EQUlPME..~l CLAR. STATION A 8646,085 0 0 PARXINGWT $273,182 0 -$150,772 <- OI'\ I RIBU I TONS .. $100,000 $58,060 $310,000 $4,749,811 0 $149,668 0 $1,660,524 0 $3.536,043 0 $2,838,864 $35,000 $586,231 0 $646,085 0 $122,410 STATUS OF RESERVE FUNDS -- 20U., l \1'11 \1 .!OUQ IOPIR\lI:'>J(; (O;';lRIIHlIIONS .. ANIMAL $144,744 -$63,365 0 $7,000 $88,379 SERVICES FIRE $638,215 -8270,000 0 $250,000 $618,215 EQUIP).fE:>IT ROADS $273,292 0 0 0 $273,292 CAPITAL ENG.& 82,319,168 0 -8275,000 0 82,044,168 INSPECTION ROADS $2,352,666 -$400,000 0 0 81,952,666 CONTRIBUTIOl'\ PARKS CAPITAL 81,028,847 -$48,000 0 $100,000 $1,080,847 CEMETERIES $32,585 -$5,000 0 0 $27,585 FED GAS TAX $78,565 -82,170,000 -$150,000 82,269,126 827,691 BUILDING DIY. $165,685 0 0 0 8165,685 . 11/20/2008 14 STATUS OF RESERVE FUNDS -- 200.t( \1'11,\' :!oo<) 01'] R\IING .. eO"lIRlBt liONS ENG. FLEET 879,964 0 0 $10,000 889,964 FACILITY/PARKS $384,367 -$214,000 0 8200,000 8370,367 MAINT. OPERATIONS $1,255,245 -8709,500 0 $450,000 $995.745 EQUIPMENT CSD BUILDING $110,203 0 0 854,000 8164,203 REFURBISH COMM SERV CAP $846,254 -8445.500 0 $125,000 $525,754 PARKLAND -8209,904 0 0 0 -8209,904 CASH-IN-LIEU COMMUNITY 882,338 0 0 $25,000 $107.338 IMPROVEMENT LIBRARY $435,180 0 0 $40,000 8475,180 CAPITAL LlBKARYCOMP. 877,417 0 0 0 877,417 EQUIPMENT STATUS OF RESERVE FUNDS N \1\11 .wo8 B\L\...'.;(l< 20U9 2009 ('\1'11 \1 OP1R\IING .. (()Nl Rlln J10"\S OLDERADt:LTS $93.698 0 -$35,000 $3,000 $61,698 OPERATING MUSEUM RjF'S $143,387 0 0 $6,000 $149,387 BOWBlA $49.579 0 0 0 $49,579 NEWC/ORONO $72,559 0 0 0 $72.559 BL^ NCH TRUSTS $171,441 0 0 0 $171,441 11/20/2008 15 HISTORICAL TRENDS ON USAGE OF RESERVE FUNDS Summary of Resel'Ye Fund Activity (exel. Development Charges) 30,000.000 25,000,000 20,000,000 15,000.000 10,000,000 5.000,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 200e 2009 Year RESERVE FUNDS HIGHLIGHTS . Non-DC related has been fairly consistent . Strong reliance for capital purposes . No improvements to funding of reserve funds have been recommended in 2009 in light of economic conditions, some will need to be addressed in future years . Reserve Funds per capita in 2004 = $867, 2005 = $863, 2006=$861, 2007=$851, Average in BMA study = $739 11/20/2008 16 DEVELOPMENT CHARGES . Supported by a detailed background study prepared every five years . Interim update approved in 2008 . Expires July, 2010 . Charges levied against new construction (residential and non-residential) to cover the capital costs for specific municipal activities associated v,ith that new growth . Can only be used for growth-related purposes as defined in the Development Charges Act . Segregated by legislation into dedicated reserve funds . Very dependent upon growth estimates to determine level of capital infrastructure required and cash flow DEVELOPMENT CHARGES RESERVE FUNDS -- .. GENERAL $160,802 0 -$162,000 0 -$1,198 GOVER.'IlM:ENT Pl:"6UC -$318,264- -$77.143 -$309,000 0 -$704A07 LIBRARY EMERGENCY $1.733,113 -$21,000 0 0 $1,712,113 SERVICES INDOOR 8742,661 0 -$2,642,902 0 -$1,900,241 RECREATION PARK $143.538 -$36,000 0 0 $107,538 DEVEWPMENT OPERo\TIOKS $l,264,;'60 -8762,660 , 0 $502,100 ROADS AND -87,432,474 -$1,441,292 -$75,000 0 -$8,948.766 RELATED PARKING $57,100 0 0 0 $57,100 11/20/2008 17 DEVELOPMENT CHARGES ITEMS TO CONSIDER Current ameudment is under appeal Statistics Canada indexing rates just announced and final 1/ 3 phasing both applicable for January 1, 2009 Library and Indoor recreation have funding issues particularly around supporting the cost of debt Based on various appeal assumptions, need 450 to 500 units in 2009 and 650 to 700 units in 2010 to cover debt payment requirements Other categories have had capital projects deferred in anticipation of slow development year in 2009 Roads and related shows financing requirements of approximately $9 million pertaining to major structures. It is advantageous from a financing perspective to not expedite these projects CLARINGTON'S ASSESSMENT GROWTH HISTORY 2001 2002 2003 2004 2005 2006 2007 2008 2.6% 3.47% 2.09% 2.94% 3.06% 3.64% 2.12% 2.8% .i< 11/20/2008 18 GROWTH ISSUES FOR 2009 Reassessment year presents particnlar difficulties in estimating growth impact because it has to be separated out from reassessment Impact Preliminary roll not as reliable due to reassessment therefore numbers may change after December 9 and will have to be recalculated West end commercial will not occur until sometime during 2009/2010 Courtice Water Pollution Control Plant did not translate to what was anticipated and incorporated into 2008 base amounts Very preliminary growth estimate for 2009 at 2% (adjusted for CWPCP) Tax class for new commercial construction since March 2007 approved in regulation in September 2008 so very little will be on roll so will be considered for growth in the 2010 budget year Education Retained Issues and Provincial Budget Impact Provincial budget in 2007 announced changes to education rates for non-residential classes. They have been uniform across the province for residential since 1998, but non-residential 1I,ras based on historical ratios. This created huge rnsparities and competitive issues amongst municipalities that was entirely beyond their controL Province responded to aggressive lobb)i.ng in 2007 budget by announcing a seven year phasing to bring all non-residential education rates to 1.6 %. In the Region of Durham, the commercial education rates were below the threshold so are not affected but the industrial and large industrial were in excess of 1.6% and therefore are subject to the mandatory reduction_ This may be good for overall competitiveness from an economic development perspective. This is a Rroblem for Clarington and Pickering because we are permitted to keep the education portion of pa}1nent in lieu properties. This is approximately $1.9 million for 2009_ This means that the rey'enue for Clarington is being reduced over the next 6 years as a result of provincial policy. For 2008, the impact was mitigated bv the new facililities at OPG, In other words, we would have had new revenue from education retaIned for 2008 that is now gone. However, we have no offsetting or mitigating factor for the next 6 years of this reducbon. This 'will be treated as a tax policy change once information is available before the tax rates are set for 2009. The 1.6% may be adjusted by the province due to reassessment. . 11/20/2008 19 CLARINGTON'S BUDGET INCREASE HISTORY YEAR LOCAL BUDGET INCREASE 2001 3.5% 2002 2.86% 2003 3.5% 2004 8.3% 2005 4.7% 2006 4.08% 2007 8.25% 2008 4.44% PROPOSED DRAFT CAPITAL BUDGET Total Program = S13,900,265 Tax levy support uot increased but a shift has occurred for the rural roads resurfacing program from the current budget to the capital budget (S660,ooo) Tax levy support increase of approximately 0% at $3,823,170 prior year at $3,169,47' (2007-$2,854,874) Includes full use of 2009 federal gas tax funding that was increased to $2,269,126 Increased gas tax funding has allowed for additional road works in engineeriug, additional funds to rural road resurfacing in operations, energy retrofit projects in community services, and sustainability studies in planning 11/20/2008 20 PROPOSED CAPITAL PROJECTS DEPARTMENT TOTAL COST TAX LEVY Corporate Services Computer Hardware 188,000 18,000 ComputerSoftware 101,500 51,500 GIS Software 25,000 25,000 Records Retention Centre 120,000 50,000 Various Renovations to the Animal 56,365 17,000 Ser\ices Shelter (lighting, alann system, new fencing) Emergency Services Vehicle Replacement (two vehicles) 55,000 0 Replacement of Tanker (tanker #5) 200,000 0 Bunker Gear 40,000 19,000 Various Fire Equipment (minitors, 70,000 55,000 SCBA, radio equipment, etc.) PROPOSED CAPITAL PROJECTS DEPARTMENT TOTAL COST TAX LEVY Engineering Services Pavement Rehabilitation Program 1,770,000 0 Stevens Road Extension 200,000 0 Nash Road - Road Reoonsbuction 740,000 31,652 Old Scugog Road Reconstruction and 320,000 0 Drainage Improvements High Street Road Reconstruction 580,000 sSo,ooo West Beach Bridge ~ Structural 2,50,000 0 Rehabilitation Baseline Road Reconstruction 200,000 11,880 Hunt Street 140,000 91,000 Fourth Street 200,000 166,000 Structures Rehabilitation 400,000 0 Solina Road Drainage ImpTovements 100,000 100,000 11/20/2008 21 PROPOSED CAPITAL PROJECTS ImPARTMENT TOTAl. COST T.\X LEVY Engineering Services (continued) Sidewalk Replacement (unspecified 200,000 200,000 locations) Bloor Street Sidewalk 80,000 0 Courtice Road Sidewalk 90,000 0 Prestonvale Road Sidewalk 100,000 0 Orono Skate Park pad 50,000 35,000 Operations 42 Depot (underground 227,000 27,000 fuel tanks, some new windows, painting, etc.) Rural Road ResUlfacing 860,000 660,000 Bridge and Culvert Improvements 96,000 96,000 Guide Beam Installation 190,000 0 Replacement of Fleet - Roads 617,000 0 Division PROPOSED CAPITAL PROJECTS DEPART:\lE:'IIT TOTAL COST TAX LEVY Operations Department (continued) KewEquipment- Roads Division 622AOO 0 Park Improvements (cemetery 163,000 0 equipment, park furniture & equipment, park upgrades, etc.) Parks Fleet Replacement (2 vehicle 125,000 0 replacement and 1 new vehicle) Arenas and Hall Boards 135,500 42,000 Improvements (roof and asbestos inspections, 6 buildings specified for improvements) Orono Arena (roof replacement) 310,000 0 Courtice Conununity Centre - Pool 200,000 0 Dry-o-tron replacement Darlington Sports Centre ~ Facility 1,830,000 0 Renovation Various Recreational Facilities 239,500 124,000 Replacements and Improvements 11/20/2008 22 PROPOSED CAPITAL PROJECTS DEPARTMENT TOTAL COST '[AXLE"'" Planni1!gServices Land Acquisition r.w,ooo 680,000 Communitylmprovement Program 100,000 100,000 Libral). Collection 110,000 24.286 Library Automation/Security 89,000 89,000 LONG-TERM DEBT STATUS . Debt Capacity requires ongoing monitoring with respect to repayment capacity in a restricted economic environment, both tax levy funded and development charge funded . Projects in the works requiring debt financing or in the process of obtaining debt financing . Newcastle Library debt has been issued and should be received by the Municipality November 21, 2008 11/20/2008 23 Debt Summary 1<'acility/Projcct January 1, 2009 Projected Additional South Courtice Areua 8,311,000 MAC I Main Library 4,390,000 Indoor Soccer I Lacrosse 2.719.000 Total Hockey 979,656 Newcastle Branch Library 0 1,084,266 Green RoadlMiIl StreetlStevens Road 0 9,100,000 Newcastle District Recreation Complex 17,025,000 TOTAL PROJECTED 33,424,656 10,184,266 2009 PRELIMINARY BUDGET OVERVIEW Based on preliminary "notice-based" roll that is subject to change in December Currently at 7.00% after growth has been applied at 2.0% including all new initiatives 1% is approximately $320,000 A 1% increase in the local levy = approximately $10 for an average house valued at $244,400 Impact is $70 annually Very challenged time wise due to reassessment year implications lJi. 11/20/2008 24 GENERAL REVENUE INCREASES: Assessment growth estimate = $641,615 Provincial Offences Act = $27,000 Veridian dividends = 827,200 Contribution from tax write off reserve = $25,000 Various Clerk's department = $9,750 Animal services various = $7,500 Cemetery revenues = 821,500 Bond interest -cemeteries = $14,095 Penalties and interest on taxes and aIr = $12,000 Engineering various = $24,000 Operations- sportfield rentals = $15,000 GENERAL REVENUE INCREASES: Operations miscellaneous = S65,000 CCC Daycare revenue = $28,500 CIS facilities revenue = 875,000 CIS fitness revenue = $60,000 11/20/2008 25 EXPENSE REDUCTIONS: Employee benefit savings = $329,569 Unclassified admin. Contingency = $35,743 Volunteer program = $5,500 By-law travel = $5,000 Purchasing consulting = S3,500 Corporate advertising = S15,000 Utilities (10% challenge) = $20,000 Reduction in contribution to Building division reserve fund = $55,000 Sidewalk maintenance = $42,000 Various = $34,360 REVENUE DECREASES: Courtice WPCP assessment issue = $217,272 Marketing advertising = S7,000 Souvenier sales = $5,000 Building Permit revenue = $100,000 CFC Revenue = $10,000 CCC Revenue = $33,000 Planning Revenue = $154,000 11/20/2008 26 EXTERNAL AGENCIES REQUESTS ...- AGENCY LAST YEAR THIS YEAR INCRI;ASI', $ NEWCASTI.E 100,000 40.000 40,000 NfA LIJUtARy CLARINGTON 2,290,359 2,372.372 82,013 3.58% UBRARY BOARD VISUAL ARTS 154,000 186.soo 32,500 21.1% CENTRE NEWCAS'I1.E HALL 13,000 13,000 0 0 COMMUNI'IYCARE 26,265 26,265 0 0 CURINGTON 218,653 226,585 7,932 3.63% MUSEUMS ORONO CEMETERY 10,000 to,OOO 0 0 BOARD FIREHOUSE YOUTII 45,000 45,000 0 0 OLDER ADULTS 114,750 125,000 10,250 8.93% OLDERADL'LTRfF 0 3,000 3,000 t'JA BOARD OF TRADE 103,000 106,500 3.s00 34% GRANT PROGRAM 65,000 80,000 15,000 N/A REAUGN:M.ENT COST INCREASES- UNCONTROLLABLE AND ADDITIONAL PRIORITIES Employer Health Tax, OMERS, CPP, EI = $100,775 Fire contract estimates = 8137,000 Pay equity revisions = $30,000 Severance catch up for elected officials = $23,000 Salary movements through grid = $44,000 Negotiated wage increases = S570,000 Employee wellness = $10,000 Post employment benefit funding = 825,000 Contribution to pandemic reserve = $5,000 Physician recruitment = $30,000 UncI. Admin legal = $25,000 Insurance = $130,000 11/20/2008 27 COST INCREASES- UNCONTROLLABLE AND ADDITIONAL PRIORITIES Hardware/software maintenance = $5,000 Communications- design = $12,300 Communications- newsletter = $15,000 Clerk's legal = $10,000 Assessibility issues (net) = S15,000 Animal services- feed/janitorial/licences = $7,100 By-law legal (net) = $30,000 Municipal election reserve contribution = $25,000 Legal (tax sales) = $10,000 Tax write-off expense = $20,000 Bank service charges = $11,000 Unci admin. Professional fees (tax levy share of dlc study) = $7,500 COST INCREASES- UNCONTROLLABLE AND ADDITIONAL PRIORITIES Suppression and training small capital = $15,000 Fire fuel/oil = $15,000 Fire phone (admin and MOC) = $11,200 Part time firefighters = $50,000 Applefest transit = $2,000 Operations telephone = $10,000 Operations - newcastle library = $5,900 Street lighting = $82,000 Bridge maintenance = $10,000 Brush/tree removal = $5,000 Ditch/shoulder maintenance = $35,000 Catch basin maintenance = $5,000 11/20/2008 28 COST INCREASES- UNCONTROLLABLE AND ADDITIONAL PRIORITIES Pavement patching = $40,000 Pavement marking = $5,000 Dust control = $10,000 Sand/salt = S125,000 Guide posts = $5,000 Fleet allocation (primarily winter control) = $86,500 Stormwater maintenance = $18,000 Newcastle recreation facility (net) = $251,015 Fitness equipment = $14,000 Recreation programs (net) = $26,000 Planning-legal = $10,000 Planning- consulting and OP (net) = $50,500 2009 Proposed New Staffing -- 1'1lSlliO!l .!(lO', ..lOll') S,II.u'\ 1I1'nefih Energy Conservation Officer/Research Assistant- 65,000 16,000 81,000 81,000 CAOOffice Aquatic Programmer/Co-Ordinator _ 43,000 11,000 54,000 24,000 CommunityServices Clerk I - Community Services 34,000 9,000 43,000 18,000 Accounting Clerk II - Finance 43,000 11,000 54,000 54,000 Clerkl-Finance 32,000 8,000 40,000 15,000 Firefighter (X4) - Emergency Services 220,000 56,000 276,000 276,000 Clerk II- Emergency Services 36,000 9.000 45,000 45,000 Records/Election Co-Ordinator - Clerks 65,000 16,000 81,000 81,000 Systems Analyst - Corporate Services 51,000 13,000 64,000 64,000 Web Technician - Corporate Services 40,000 10,000 50,000 19,000 , 11/20/2008 29 II I' if '~ 2009 Proposed New Staffing ! Position 2009 Salary 2009 Total Benefits Sal/Ben - ,ii Ii! Labourer (X2) - Operations 70,000 18,000 88,000 88,000 Clerk I (part-time) - Operations 23,000 2,000 25,000 25,000 Apprentice (mechanic) - Operations 49,000 12,000 61,000 47,000 Infrastructure/Capital Works Manager - Engineering 98,000 25,000 123,000 22,000 Landscape Technologist - Engineering 48,000 12,000 60,000 60,000 3 Leadhand Positions - Building Division ~ 15,000 15,000 Engineering Total 917,000 228,000 1,160,000 934,000 ;"' 'I :ii ;" OVERALL IMPACT SUMMARY C\TEGORY I:';CREASE $ II'\CREASE % REVENUE INCREASES (1,053,160) (3.29%) EXPENSE (545,672) (1.71%) REDUCTIONS REVENUE LOSSES 526,272 1.64% UNCONTROLLABLE 1,624,018 5.08% EXPENSE INCREASES SUBTOTAL 551,458 1.72% ADDmONAL 560,900 1.75% PRIORITIES STAFFING REQUESTS 934,000 2.92% EXTERNAL AGENCIES 194,195 0.61% TOTAL 2,240,553 7.00% 11/20/2008 30 ECONOMIC CONSIDERATIONS ,i No increases to contributions to reserves and reserve funds No increase to tax levy support to capital Deferral of development charge funded capital projects Diversified use of additional gas tax funding Consideration of development charges quantum issues Deferral of further development charges debt where feasible Options around limiting/freezing new staff or additional priorities Future options around service level reductions LOOKING FORWARD TO 2010 Reduction in rate stabilization reserve fund reliance $200,000 Physician recruitment Additional firefighters ?? Increased tax support to capital - Infrastructure Deficit Wage Settlements and benefits Address contributions to reserve funds Staffing pressures Aging facilities Implications on tax levy of new facilities Cash flow on indoor recreation dc debt 11/20/2008 31 WHERE DO WE GO FROM HERE? i , I I Comments from Council Further refinement and review by CAO and Department Heads Revise growth numbers with final returned roll Forecast issues and timing Draft Budget documents to be distributed approx. January 9th Budget Deliberations January 16'h Ratification January 26th Tax rates established late April 2009 Tax bills issued late May 2009 C" ;~ ill 'il: 11/20/2008 32