HomeMy WebLinkAbout02/19/2010 (Special)
Cl~iJJ.gron
SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE:
TIME:
PLACE:
February 19, 2010
9:30 A.M.
COUNCIL CHAMBERS
1, MEETING CALLED TO ORDER
2. DISCLOSURES OF PECUNIARY INTEREST
3, PRESENTATIONS
(a) Nancy Taylor, Director of Finance/Treasurer - 2010 Municipal Budget
4. DELEGATIONS
(a) Angie Darlison & Peter Evans, Clarington Older Adult Centre Board,
(b) Clarington Public Library Board
(c) Jean-Michel Komarnicki, Adrian Short and James Campbell, The Visual
Arts Centre of Clarington
(d) Sally Barrie, Community Care Durham, Clarington
(e) Keith Isnor and Martha Rutherford-Conrad, Clarington Museums and
Archives
(f) Marie Marano, Director of Corporate Services and Human Resources
Regarding 2010 Corporate Services Departmental Budget
(g) Patti Barrie, Municipal Clerk
Regarding 2010 Clerk's Services Departmental Budget
(h) Gord Weir, Director of Emergency Services
Regarding 2010 Emergency Services Departmental Budget
(i) Tony Cannella, Director of Engineering Services
Regarding 2010 Engineering Services Departmental Budget
U) Frank Wu, Acting Director of Operations
Regarding 2010 Operations Departmental Budget
CORPORATION OF THE MUNICIPALITY OF CLARINGTOI'
40 TEMPERANCE STREET, BOWMANVILlE, ONTARIO L 1 C 3A6 T 905-623-3371
Special G.P. & A. Agenda
- 2 -
(k) Joseph Caruana, Director of Community Services.
Regarding 2010 Community Services Departmental Budget
(I) Faye Langmaid, Acting Director of Planning Services
Regarding 2010 Planning Services Departmental Budget
5. STAFF REPORTS
February 19, 2010
(a) CAO-002-10 Change in Legal Services for 2010 Budget Consideration 1
(b) FND-004-10 2010 Current and Capital Budget
(a) FND-005-10 2011 to 2014 Operating and Capital Forecast
6. COMMUNICATION
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(a) Laverne Morrison, Advertising Consultant, Metroland, Durham Region 27
Media Group
Regarding Advertising Proposal
7. UNFINISHED BUSINESS
8. OTHER BUSINESS
9. ADJOURNMENT
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REPORT
CHIEF ADMINISTRATIVE OFFICER
Meeting:
SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
February 19, 2010
Resolution#:
By-laW#: N/A
Report #: CAO-002-10
File#:
Subject:
CHANGE IN LEGAL SERVICES 2010 BUDGET
Recommendation
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report CAO-002-10 be received;
2. THAT the Chief Administrative Officer be authorized to implement in-house legal
service in 2010 and to phase out the current legal service arrangement with Mr.
Dennis Hefferon;
3. THAT the Corporate Organization structure be amended to have Mr. Hefferon and the
future staff solicitor report to the Chief Administrative Officer;
4. THAT the costs related to the establishment of an in-house Legal Department be
reallocated from various departmental legal accounts, and the projected saving of
$150,000 be included in the 2010 budget; and
5. THAT Mr. Hefferon be advised of Council's decision.
) ,-'
Submitted bY;= r(-<-~, --=- t~L.t
Franklin Wu
Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-072~
REPORT NO.: CAO-002-10
PAGE 2
1. BACKGROUND
The high cost of legal services has been a concern with members of Council, both
past and present. Recently, during the budget workshop held on November 20,
2009, members of Council raised this issue again. In view of the current financial
restraint and the need to scrutinize every expenditure, it is prudent that the cost of
legal services be addressed as part of the 2010 budget deliberation. It should be
noted that there has never been a concern over the quality of legal services
provided.
2. CAUSES OF HIGH LEGAL COST
2.1 On average over the last 10 years, the Municipality expended on average
about one million dollars annually on legal cost. The high cost is attributable
in part to the claims and litigation, including OMB Hearings where the volume
and complexity of the legal issues have caused budget overrun consistently
every year. Notwithstanding the unpredictable nature of the foregoing which
is a major challenge in expenditure control, there are two elements that are
within the control of the Municipality. They are:
a) the method it chooses to procure legal services, and;
b) the policies or criteria it determines appropriate to monitor and
scrutinize how, what, when and by whom legal services should be
sought.
2.2 Our research in the procurement of legal services of similar size
municipalities in Durham has reveal,ed that Clarington legal cost is
significantly higher than these municipalities. The primary reason is that most
of those municipalities, with the exception of Ajax, have an in-house Legal
Department where the staff lawyer is paid a salary at a significantly lower
equivalent hourly rate than the hourly rate we pay under the current
arrangement. In 2009, Clarington's legal cost, exclusive of specialized legal
works and cost recovery from developers, was approximately $700,000. By
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REPORT NO.: CAO-002-10
PAGE 3
comparison, the City of Pickering's entire Legal Department budget is
$320,000 and Ajax provides about $120,000 retainer for a local law firm to
look after its legal needs annually.
2.3 Clarington does not have any written policy in place to determine how, when,
what and by whom legal services should be sought. By practice, litigation
and major legal matters are authorized by Council, and the day-to-day legal
works are authorized by the Department Heads and/or their managers. Since
the solicitor reports directly to Council, it has created a challenge for the CAD
and senior staff to provide the necessary oversight and this adds to the
difficulty of maintaining proper administrative and financial control.
3. IN- HOUSE LEGAL DEPARTMENT
3.1 The establishment of an in-house Legal Department involves the hiring of a
solicitor and a supporting law clerk or paralegal personnel. Office space on
the 4th floor of the Municipal Administrative Centre has been set aside for this
purpose. The annual operating budget inclusive of salaries, benefits and
office expenditure will be in the vicinity of $300,000. The job description of the
new municipal solicitor will be modeled similar to the City of Pickering to
include all municipal legal works inclusive of OMB hearings, bylaw
prosecution, real estate transaction, development agreements, legal advice to
Council and staff etc. but exclude labour law practices.
3.2 With complex legal matters or litigation of a specialized nature, the
Municipality will continue to secure the services of an external solicitor as the
need arises. The CAD and the staff solicitor will review each case and will be
reporting to Council for direction.
4. BUDGET SAVING
4.1 The cost saving to the Municipality is estimated at $150,000 in 2010 and we
expect this saving will increase in subsequent years once the transition from
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REPORT NO.: CAO-002-10
PAGE 4
the current arrangement to in-house legal services is completed. This saving
has been built into the 2010 budget.
4.2 An added benefit to an in-house legal department is the elimination of the
need to administer, review, and process legal invoices. This saves a
significant amount of staff time.
5. THE TRANSITIONAL PERIOD
5.1 Prior to hiring the new municipal solicitor, it is important to ensure legal
services are continuous. In this regard, it is recommended that Mr. Hefferon
continue his current role. Once the staff solicitor is in place, the Chief
Administrative Officer, in consultation with the staff solicitor, will address the
issue of transferring the outstanding legal files to the staff solicitor.
5.2 Assuming Council approves the recommendations contained in this report, it
will be several weeks or months before a staff solicitor is in place and
comfortable to assume the full legal portfolio. During this interim period, it is
important that the Municipality exercise its due diligence to provide proper
oversight to ensure both accountability and transparency in legal
expenditures. Therefore, it is recommended that the legal services be under
the direct supervision and oversight of the Chief Administrative Officer
effective immediately. The corporate organization structure will be amended
accordingly.
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Claringron
REPORT
FINANCE DEPARTMENT
Meeting: SPECIAL GENERAL PURPOSE AND ADMINISTRATION
Date:
FEB 19,2010
Resolution#:
By-Iaw#:
Report#: FND-004-10 File#:
Subject:
2010 CURRENT AND CAPITAL BUDGET
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following: '
1. THAT Report FND-004-10 be received;
2. THAT Council approve the 2010 Operating and Capital budgets as outlined in
Schedule "A", at an estimated tax levy impact of 3.2% (exclusive of tax policy
impacts), as directed in FND-004-10;
3. THAT Council provide direction on the items listed as optional items for
consideration, as itemized in Schedule "B";
4. THAT Council provide direction on the grants for external agencies per their
requests itemized in Schedule "C", at an estimated tax levy impact of 0.21 %;
5. THAT Schedules "0", "E" and "F" outlining Reserve and Reserve Fund
Contributions and new Reserves/Reserve Funds be approved;
6. THAT approximately $700,000 be drawn from the Rate Stabilization Reserve
Fund to offset the tax rate impact;
7. THAT the financing of Capital projects, as outlined in the attached documents be
approved;
8. THAT the external agencies, referred to in Schedule "C" be advised of Council's
decision regarding their grant request;
9. THAT the corporate advertising policy which restricts advertisements to statutory
notices be amended to include provision for required Municipal notices as
determined by the Chief Administrative Officer;
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379
5
REPORT NO.: FND-004-10
PAGE 2
1 O. THAT Council authorize the Mayor's Golf Tournament to take place in 2010, at
no cost to the tax base with the net proceeds from the Mayor's Golf Tournament
to be directed to the Visual Arts Centre for capital improvements;
11. THAT the cash flow shortfall in the Development Charges Reserve Funds be
interim financed from the Municipal Capital Works Program, Impact/Escrow
Reserve Fund and General Municipal Reserve Fund, in equal proportions, to be
repaid with interest as cash flow permits.
12. THAT the unspent budget from the 2007 Capital budget for the Green Road
grade separation be cancelled at this time, along with the projected debt and that
a report from staff be brought back at such time that appropriate negotiations
have been undertaken with GoTransit; and
13. THAT the appropriate By-laws to levy the 2010 tax requirements for Municipal
Regional and Education purposes be forwarded to Council for approval, once
final tax policy information is available.
,/"7
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Submitted by: ~
Nan Tayl ,BBA, C.A
Director of Finance/
Treasurer
Reviewed by:
o (-cu.eQ.,,- R,,-,'<-L
Franklin Wu,
Chief Administrative Officer
NT jhjl
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REPORT NO.: FND-004-10
PAGE 3
1.0 OVERVIEW:
1.1 The 2010 budget is outlined in detail in the draft budget documents circulated in
conjunction with this report. The approximate 2010 base impact is detailed in
Schedule "A" attached hereto.
1.2 The Chief Administrative Officer and the Director of Finance have worked
diligently with all departments to review all areas and identify savings.
1.3 This impact is after assessment growth, which is estimated at 1.92%. Every 1 %
increase in the budget generally results in a tax increase of approximately $9.87
for the average residential taxpayer for the local portion of the tax bill (based on
average value of $246,000). This does not include the impact of tax policy
changes determined by the Region of Durham.
1.4 Based on the 2010 returned roll, Clarington assessment splits are 90% for
residential, farm and multi-residential and 10% for commercial and industrial
properties.
1.5 Clarington continues to rely strongly on reserves and reserve funds to alleviate
tax levy impacts. For 2010 the net annual draw on reserves and reserve funds is
approximately $15 million (2009 - $11 million) including $700,000 drawn from the
Rate Stabilization Reserve Fund to offset the tax levy. This includes Capital and
Current (operating). The summaries for the reserves and reserve funds are
included in the attached Schedule "0", "E" and "F".
1.6 Consistent with prior years, interest revenue from the Port Granby Trust monies
were factored in so as to mitigate the tax levy impact. This is, of course, much
reduced due to poor interest rates currently available on investments. Revenue
increases for many departments where possible have been factored in. Ontario
Municipal Partnership Fund (OMPF) will not be received from the province (loss
of $116,000). Due to expect economic conditions, building, investment income
and planning revenues are expected to decline from the 2009 budget value
consistent with the amendments made to the 2009 budget in August, 2009.
1.7 For 2010, Clarington will experience minor increases in Veridian dividends.
2.0 TAX RATE STABILIZATION:
2.1 Historically, Clarington has drawn on our Rate Stabilization Reserve Fund
approximately $1,000,000 per year, on average. This is proposed to be reduced
by $300,000 for 2010. The municipality must reduce its reliance on these funds.
The forecast documents reflect a continued decrease in our reliance on this and
a switch to a focus replenishing this reserve fund for future economic downturns.
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REPORT NO.: FND-004-10
PAGE 4
3.0 TAX POLICY CHANGES:
3.1 A long term strategic tax policy plan was approved in 2002 by the Region of
Durham that will have an impact on the final tax rates. The 2010 update of the
plan will be presented to Regional Council in early 2010. The tax ,ratio changes
impact upon the relative share of the total taxes that each property class pays. A
particular additional impact to Clarington relates to the education retained portion
of payment-in-Iieu properties such as Ontario Power Generation. In the 2008
provincial budget, a provincially mandated reduction in the industrial education
rate was announced. As a result, Clarington will continue to experience a loss of
revenue in this area. For 2010, any loss in this area will be included as a tax
policy adjustment in the calculation of the final tax rates.
4.0 PHYSICIAN RECRUITMENT:
4.1 On July 14, 2008, Council committed to a four year funding program for the
Physician Recruitment Program to be undertaken by the Clarington Board of
Trade. The $120,000 annual commitment is drawn from ImpacUEscrow Reserve
Fund and from the general tax levy. In 2009, the split is $90,000 from Reserve
Fund and $30,000 from the tax levy. In 2010, the tax levy support was to be
$60,000 from the Reserve Fund and $60,000 from the tax levy. The result would
be a net levy increase of $30,000 which would need to be built into the 2010
budget.
4.2 In order to reduce the budget impact, staff proposes to change the funding
formula by eliminating the additional $30,000 previously committed for 2010.
The effect of this change would result in reducing the recruitment target from four
to three new family physicians with $60,000 from the ImpacUEscrow Reserve
Fund and $30,000 from tax levy.
4.3 The Clarington Board of Trade has been advised of the foregoing proposed
changes and is in agreement with it.
5.0 STAFFING:
5.1 Despite the economic downturn, the Municipality is still experiencing some
growth and development activities over the last few years. There are more
roads, parks and facilities to be maintained and there are always the demands
for various services from both new and existing residents. Yet, our Current
workforce has remained stagnant. Notwithstanding our continuous effort to re-
engineering new ways to do our work more efficiently, staff resources are
definitely stretched to the limit and staff morale and customer service are
beginning to suffer. The senior administration understands and respects the
desire of Council to keep the tax levy as low as possible and therefore is not
proposing any new staff for the 2010 budget. However, looking ahead in the next
couple years, we have a few areas of pressure points where additional staff
resources are definitely needed such as operational staff, firefighters and IT
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REPORT NO.: FND-004-10
PAGE 5
personnel. These needs will be more urgent if the growth and development
rebounds quicker than anticipated.
5.2 As part of our effort to re-engineer our organization, several minor organizational
structural changes are proposed for a few departments. These changes include
position title changes, reduction in part time staffing, reclassification, attrition from
retirement, etc., none of which involves any budgetary increase. On the contrary,
a net savings of $26,400 will be realized from the aforementioned measures and
this saving is built into the 2010 budget. Details of all changes are contained in
the respective departmental organizational chart included in the budget
document.
5.3 Also incorporated into the 2010 budget is the elimination of two full time positions
(Manager of Subdivision Implementation and Building Inspector), as well as the
elimination of students in the office environments.
6.0 CLARINGTON.NET:
6.1 In an effort to aid Council with options to further reduce the budget, we propose
as an option, the Clarington.net publication be discontinued. This will net a
savings of $27,400. In addition to budget pressure, it would be prudent to
discontinue this publication in light of the sensitivity that it will bring in an election
year. This item has been included in the option list on Schedule "B" for Council,
if they wish to remove this from the budget.
7.0 LEGAL SERVICES:
7.1 The proposed change in the procurement of legal services will net the
Municipality an estimated saving of $150,000 which has been built into the 2010
budget. Details of the changes of legal services are contained in a separate
report scheduled to be considered prior to this budget report. Subject to
Council's decision on this matter, the $150,000 would have to be added back into
the tax levy should Council remain with the status quo.
8.0 2009 YEAR END RESULTS:
8.0 While final financial results and audited financial statements will not be available
for some time, preliminary indications are available for the 2009 year. As Council
has seen through the report on revenue sensitive to economic conditions, revised
budget targets for building permit revenues and planning revenues were
achieved. Winter control for 2009 was not overextended due to relatively mild
conditions in November and December 2009.
8.1 As a result, it is not anticipated that the financial results for 2009 will have nay
detrimental impact on the 2010 budget. Council will not need to make any
budget adjustments for any projected deficit due to the amendments made in
August 2009 to prevent this from occurring.
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REPORT NO.: FND-004-10
PAGE 6
9.0 CAPITAL BUDGET COMMENTARY:
9.1 The recommended impact on the tax base of the proposed Capital Budget is an
increase from last year of $22,343. This translates to a 0.07% tax levy increase
and is very minor in nature.
9.2 There has been significant dialogue in recent years pertaining to the state of
municipal infrastructure in Ontario. In Clarington, there have been only minor
changes to the tax levy support to Capital since 2003. Clarington has the PSAB
Capital asset project underway and will be reporting on this as the project
progresses. We are not recommending a notable tax levy increase for 2010 due
to economic considerations but have factored 1 % per year into the forecast due
to concerns over deteriorating conditions.
9.3 Details of Capital projects, by department, are included in the Draft Capital
Budget.
9.4 Federal fuel tax proceeds have been incorporated into the Draft Capital Budget
at $2,393,743. Recent announcements show a modest increase in this funding
in 2010 of approximately $124,000.
9.5 The Capital Budget is presented to Council for consideration and approval. The
financing for most of the projects is a combination of Reserve, Reserve Funds,
Development Charges and tax levy.
10.0 CURRENT BUDGET IMPACTS:
10.1 Consistent with any other major employer, as well as all other municipalities,
Clarington is experiencing costs increases in areas such as wage increases,
insurance costs, winter maintenance costs, OMERS impact, fuel cost increases,
utilities and facility maintenance costs. The Current budget impacts are detailed
in Schedule "A" to this report.
11.0 DEBT STATUS:
11.1 Current projected annual debt repayment obligations for 2010 budget purposes
total $4,517,000. This is comprised of debentures issued for the South Courtice
Arena, the Bowmanville Indoor Soccer Facility, the MAC/Main Library, the
Newcastle Aquatic facility, RRC Museum space and the Newcastle branch
library. It also includes the projected new debenture for the Mill Street
Underpass project.
11.2 The total principal amount outstanding at January 1, 2010 is $32,289,000. New
debentures will be required in 2010 for the Mill Street works. As Council is
aware, annual growth is required to maintain the debenture repayment
obligations from development charges without impacting the tax levy. Growth
numbers in 2009 were severely impacted by the economic conditions. As a
result, Council approved interim borrowing from other Reserve Funds for 2009
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REPORT NO.: FND-004-10
PAGE 7
and this is also necessary for 2010. Based on a projected 350 new residential
units for 2010, interim borrowing would be required of approximately $1,600,000.
11.3 It is recommended that these funds be interim borrowed from the Municipal
Capital Works Reserve Fund, General Municipal Reserve Fund and the
Impact/Escrow Reserve Funds in equal proportion with the amounts to be repaid,
with interest, as cash flow allows.
11.4 It is proposed that the unspent funds from the budget page for Green Road from
the 2007 Capital budget be deleted at this time, as well as anticipated debt. The
project is still intended to proceed but due to the requirement and involvement of
GoTransit, the currently authorized budget is no longer a valid representation of
what may be occurring. Staff will report back when negotiations are completed
with GoTransit to request appropriate approvals and funding at that time.
11.5 Total debt is now projected to be $31,724,000 on January 1,2011, most of which
is growth-related through development charges. The projected debt may be
reduced further subject to the amount of collections occurring in the Roads and
Related Development Charges Reserve Fund between now and when the
debentures will be issued for Mill Street.
12.0 MUNICIPAL GRANT PROGRAM:
12.1 The municipal grant program is administered through the Community Services
Department. The budget presented via this report includes a total of $60,000 for
the grant program. The $60,000 is allocated based on Council direction when
the grant report is brought forward. It is listed as an option on Schedule "B"
should Council wish to reduce or eliminate this program as a cost saving
measure.
13.0 INSURANCE:
13.1 Insurance premium costs for 2010 are fairly stable at this point. A budget
increase of $30,000 has been incorporated into the draft Current budget as an
estimate due to deductible requirements and a minor premium increase.
14.0 RESERVE AND RESERVE FUND CONTRIBUTIONS:
14.1 Consistent with past practice, transfers between reserve funds are at times
deemed appropriate to bolster balances in depleting reserve funds. Other
reserve fund contributions have been reviewed for reduction to assist with budget
restraints. For 2010 some changes are included on the Reserve and Reserve
Fund summaries in the attached Schedules "0" and "E". Primarily these changes
relate to future Capital replacement needs.
14.2 In light of Council's expressed concern over budget restrictions and the positive
balances in our Reserve Funds, it is recommended that for one-time only, to
alleviate some of the pressure from reduced building permit revenues, $200,000
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REPORT NO.: FND-004-10
PAGE 8
be transferred in to offset the tax levy impact from the General Municipal Reserve
Fund. The funds originate from interest on Veridian promissory notes. This is
proposed for 2010 only as an economic consideration and would be reverted
back for 2011 when the building permit revenues should rebound by this amount.
15.0 EXTERNAL AGENCIES:
15.1 The requests from the external agencies, including the Museum, Library, Visual
Arts Centre, Clarington Older Adults Board, etc. are detailed in the External
.Agencies section of the Draft Current Budget for Council to consider their
requests on an individual basis and Schedule "c" to this report. The external
agencies tab in the Draft Current Budget provides background information
pertaining to the requests by the external agencies. The increase in budget
requests for the external agencies total $69,760 for 2010 which is a 0.21 % total
municipal levy increase.
16.0 MAYOR'S GOLF TOURNAMENT:
16.1 For the 2010 budget, Council is requested to provide direction on inclusion of the
Mayor's Golf Tournament. The anticipated gross revenues to be generated are
approximately $61,000. The costs (including out-of-pocket costs for staff
overtime), are anticipated to be in the vicinity of $35,000, resulting in net
proceeds of $26,000. These net proceeds would be donated to the Visual Arts
Centre, if approved by Council.
17.0 CORPORATE ADVERTISING POLICY:
17.1 An amendment to the corporate advertising policy is requested through the
budget process as this policy was approved through the 2009 budget process. It
is requested that Council approve some flexibility in the policy to allow for
municipal notices beyond the strict statutory definition. Advertisements or
promotion-type notices will still be restricted. However, it is necessary to
advertise such things as road closures, tax installment due dates, public
information open houses, etc.
18.0 HISTORIC SIGNAGE:
18.1 At a meeting held on September 21, 2009, the following resolution was passed:
"The correspondence Item D-37 from Sandra and David Walton-Ball with respect
to signage indicating the entrance to "Historic Bond Head" be referred to the
Operations Department for inclusion in the 2010 budget process".
18.2 In the draft budget for 2010, staff have included an additional $700 in account
#100-36-384-10315-7112 Traffic Signs - Miscellaneous Operating expenses for
this purpose. While it is small in dollar v~lue, the concern is whether additional
requests will come forward for other areas. Staff wanted to draw to the attention
of Council the inclusion of this in the 2010 budget, per your request.
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REPORT NO.: FND-004-10
PAGE 9
19.0 NEWCASTLE FIRE HALL:
19.1 The construction of a new fire hall in Newcastle has been included in the Capital
budget for 2010. However, it is not intended that the facility will be complete or
operational in 2010. A future report will be forthcoming from the Fire Chief
regarding the process and decisions to be made by Council, including future
staffing implications for 2011 onwards.
20.0 FUTURE YEARS' BUDGETS:
20.1 There are certain known impacts for the 2011 budget year such as staffing, wage
settlements, fire master plan implications, insurance costs and normal inflationary
impacts. Also, depending upon the growth and resulting funds collected for
development charges for indoor recreation and library, there may be tax levy
impacts for debenture repayment requirements for new facilities. As mentioned
above further consideration must be given in 2011 to the Rate Stabilization
Reserve Fund.
20.2 Other items for future consideration include increased tax support to roads
(estimated at 1 % of $340,000). Detailed information pertaining to future years'
budgets is included in the forecast documents reported separately.
Attachments:
Schedule "A" - 2010 Base Budget Impact Summary
Schedule "B" - 2010 Additional Funding Options
Schedule "C" - External Agencies B'udget Requests
Schedule 0" - Reserve Funds
Schedule "E" - Reserves
Schedule "F" - 2010 Operating - Reserves and Reserve Fund Contributions
Interested Parties:
. Clarington Museum and Archives
. Clarington Older Adult Board
. Clarington Public Library
. Durham Region Community Care Association
. John Howard Society (Firehouse Youth)
. Newcastle Community Hall
. Orono Cemetery Company
. Visual Arts Centre of Clarington
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MUNICIPALITY OF CLARINGTON
2010 BUDGET IMPLICATIONS SCHEDULE "A"
02/03/10
DESCRIPTION AMOUNT
REVENUE INCREASES
CONTRIBUTION FROM BUILDING DIVISION RESERVE FUND (143,054)
INCREASE IN CONTRIBUTION FROM DC RESERVE FUNDS FOR DEBT COST INCREASE (455,036)
INCREASE IN FINANCE FEES (100,000) .
NET INCREASE IN DOG/CAT LICENSES (19,000)
VERIDIAN DIVIDENDS (27,200)
OPERATIONS FEES FOR ROAD OCCUPANCY/SPECIAL EVENTS SERVICE (20,000)
GROWTH AT 1.92% (650,000)
CLERK'S FEE INCREASES (16,000)
CORP SERVICES MISCELLANEOUS REVENUE (20,500)
CONTRIBUTION FROM VERIDIAN INTEREST- ONE TIME FOR ECONOMIC CONDITIONS (200,000)
CEMETERY INTEREST (25,000)
CEMETERY FEES (13,750)
(1,689,540) -5.00%
REVENUE LOSSES
REDUCE CONTRIBUTION FROM RATE STABILIZATION R/F 300,000
REDUCE CONTRIBUTION FROM IMPACT/ESCROW R/F RE: PHYSICIAN RECRUITMENT -
REDUCE CONTRIBUTION FROM TAX WRITE-OFF RESERVE 25,000
REDUCTION IN BUILDING PERMIT FEES 600,000
REDUCTION IN INVESTMENT INCOME 370,000
REDUCTION IN PLANNING FEES 146,000
REDUCTION IN PROVINCIAL GRANT (ompf) 116,000
REDUCTION IN RENTAL INCOME 50,000
EST LOSS OF EDUCATION RETAINED REVENUE
COMMUNITY SERVICES VARIOUS REVENUES 100,000
REDUCTION IN TRANSFER STATION ROYALTIES 50,000
1,757,000 5.20%
EXPENSE INCREASES
SALARIES 422,385
BENEFITS (PRIMARILY OMERS AND HEALTH) 282,296
PARTTIME FIREFIGHTERS 99,500
FIRE GRID MOVEMENTS AND EST SmLEMENT 273,941
BAL OF NEW POSITION FROM 2009 47,775
STREETLIGHT ENERGY AND PLAYING FIELDS LIGHTING 93,000
TRAFFIC SIGNALS ENERGY 11,000
POST EMPLOYMENT BENEFITS 25,000
HUMAN RESOURCES LEGAL 20,000
SOFTWARE MAINTENANCE 30,000
INSURANCE 30,000
AUDIT FEES 10,000
FIRE MECHANICAL 32,000
GRASS/TREE CUTTING 50,000
PAVEMENT PATCHING 60,000
WINTER CONTROL 121,000
WATER- PARKS AND IRRIGATION 29,200
CATCH BASIN REPAIRS 15,000
GUIDE RAIL REPAIRS 7,000
BRIDGE AND CULVERT MAINTENANCE 12,000
INCREASE IN CONTRIBUTION TO TAX WRITE OFF RESERVE 75,000
CONTRIBUTION TO IMPACT/ESCROW RE: POLICE LEASE -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
14
46
47
48
49
50
51
MUNICIPALITY OF CLARINGTON
2010 BUDGET IMPLICATIONS SCHEDULE "A"
02/03/10
DESCRIPTION AMOUNT
CONTRIBUTION TO FIRE EQUIP R/F 50,000
CONTRIBUTION TO COMMUNITY SERVICES CAP R/F 100,000
CONTRIBUTION TO LEGAL RESERVE 100,000
INCR IN TAX SUPPORT TO CAPITAL (currently included) 22,343
DEBT SERVICING COST 455,036
TAX LEVY SUPPORT TO DEBT 36,940
2,510,416 7.43%
EXPENSE DECREASES
STAFF REDUCTION (STUDENTS AND BUILDING INSPECTOR AND MGR SUBDIVISION) (244,039)
COMM SERVICES P(T STAFF REDUCTION (234,826)
STAFF RECOGNITION (23,000)
PHONE/FAX (20,000)
ADVERTISING (58,000)
PSAB PROJECT (40,000)
CONTINGENCY (55,000)
BUILDING AND SIDEWALK MAINTENANCE (49,000)
UTILITIES -10% CHALLENGE (100,000)
BUDGn MEASURES SAVINGS
ADMINISTRATOR'S OFFICE (20,500)
CORPORATE SERVICES (58,625)
CLERK'S (20,000)
FINANCE (34,000)
PLANNING (10,500)
ENGINEERING (30,000)
OPERATIONS (32,000)
COMMUNITY SERVICES (13,500)
NET PROSHOP CLOSING (20,000)
REDUCTION IN CONTRIBUTION TO SELF INSURED LOSSES RESERVE (25,000)
SENIORS SNOW CLEARING CHANGE TO COST RECOVERY BASIS (85,000)
REDUCTION IN CONTRIBUTION TO MUNICIPAL CAPITAL WORKS RESERVE FUND (75,000)
REDUCTION IN CONTRIBUTION TO ECONOMIC DEVELOPMENT RESERVE FUND (25,000)
REDUCE CIP . (20,000)
LEGAL SAVINGS (150,000)
MISCELLANEOUS REVENUE INCREASES AND COST DECREASES (52,044)
(1,495,034) -4.43%
GRAND TOTAL 1,082,842 3.20%
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
OVERALL SUMMARY
SCHEDULE "A" 1,082,842 3.20%
SCHEDULE "C"- EXTERNAL AGENCIES 69,760 0.21%
GRAND TOTAL 1,152,602 3.41%
15
MUNICIPALITY OF CLARINGTON
2010 BUDGET Schedule "B"
OPTIONAL ITEMS FOR CONSIDERATION
COST CUTTING/ REVENUE INCREASES: $ %
1 Cancel Clarington.net (27,400) -0.08%
2 Cancel! Reduce Community grant program (60,000) -0.18%
3 Increase projected building permit revenue (50,000) -0.15%
4 Cancel Employee Assistance Program (25,000) -0.07%
(162,400)
COST INCREASES:
5 Increase rural road resurfacing program 100,000 0.30%
6 1% tax levy increase dedicated to road rehabilitation 337,800 1.00%
437,800
16
MUNICIPALITY OF CLARINGTON
2010 BUDGET SCHEDULE "C"
EXTERNAL AGENCIES DOLLAR PERCENTAGE
BOARD OF TRADE (106,500 TO 110,000 per agreement) 3,500 3.29%
CLARINGTON PUBLIC LIBRARY (2,492,872 TO 2,542,600) 49,728 1.99%
VISUAL ARTS CENTRE (169,000 TO 171,500) 2,500 1.48%
CLARINGTON MUSEUMS (226,585 TO 231,117) 4,532 2.00%
CLARINGTON OLDER ADULTS CENTRE (125,000 TO 132,000) 7,000 5.60%
FIREHOUSE YOUTH (45,000 TO 47,500) 2,500 5.56%
TOTAL INCREASE ON OVERALL MUNICIPAL TAX LEVY 69,760 0.21%
17
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21
Clarington
REPORT
FINANCE DEPARTMENT
Meeting: SPECIAL GENERAL PURPOSE AND ADMINISTRATION
Date:
FEB 19,2010
Resolution#:
By-Iaw#:
Report#: FND-005-10 File#:
Subject: 2011 TO 2014 OPERATING AND CAPITAL FORECAST
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FN 0-005-10 be received for information.
Submitted by:
Reviewed by:
Jo~~ ~
Franklin Wu,
Chief Administrative Officer
NT/hjl
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T (905)623-3379
22
REPORT NO.: FND-005-10
PAGE 2
OVERVIEW
1.0 In June, 2008, Council requested that an operating and capital forecast be
provided to Council in conjunction with budget deliberations for future years. The
maximum total budget years that are permitted under the Municipal Act is five
years. Therefore, the 2010 budget was circulated with a separate report and
binder and 2011 to 2014 is presented here with a binder providing specific
details. .
1.1 Many factors come into play when dealing with multi-year future budgets. There
is a great deal of uncertainty, particular when dealing with an overall five year
budget window. There are also some rules pertaining to election years when
dealing with multi-year budgets. Due to that uncertainty, rather than adopt the
future year budgets, it is recommended simply that the forecast be received for
information. It is provided to aid Council in decision making and as a general
guide to prepare for the next several years.
1.2 As Council is keenly aware, there is significant economic uncertainty for the next
year. This has had an impact on the forecast as we have tried to incorporate this
into some of the cost drivers and implications on revenues that may be
experienced. This is reflected in the assumptions underlying the forecast
information provided.
ASSUMPTIONS
2.0 A forecast extending out to the end of 2014 cannot be provided without an
extensive number of assumptions that are critical to understanding what is
driving the end result.
2.1 Many of the significant assumptions pertaining to reserves and reserve funds are
as follows:
1. 2011 to 2014 development charges rates are calculated using an estimated
annual indexing percentage applied bn January 1st of each year starting at 3.0%
for 2011 due to economic conditions and increasing to 3.5% by 2014 as the
economy shifts.
2. It is very important to note that the development charges background study is
underway to establish the development charges quantum for the next five year
timeframe. For the purposes of the forecast, the quantum is based on the 2008
update due to the timing involved.
23
REPORT NO.: FND-005-10
PAGE 3
3. It is assumed for purposes of this analysis that there will be no phase in or
significant change in the development charges quantum as a result of the total
update to the development charges by-law that is required by mid-2010. This
may not be the case, but is impossible to predict at this time.
4. The number of residential units in each year that translate into development
charges collections is estimated at 650 for 2011,700 for 2012,750 for 2013 and
800 for 2014. This may be overly optimistic in the early years and conservative
in later years.
5. Interest earned in all reserve funds is calculated on the balances in those reserve
funds as of November 2009. This may vary over the forecast time frame,
particularly in those reserve funds not being replenished at the same rate they
are being drawn upon.
6. The estimated interest rate used for predicting available reserve fund balances
for capital financing is estimated at 2.5% for 2011 and escalates to 3.5% by
2014. This may also vary significantly and will have an impact upon the timing of
capital works.
7. Those reserve funds that generate contributions were assumed to continue to do
so on a fairly static basis. We are not able to predict at this time any greater level
of certainty.
8. Some reserve funds required increased tax levy contributions in ~rder to fund
future required capital obligations.
9. It is assumed that the reliance on the rate stabilization reserve fund to stabilize
the tax levy will be reduced over the forecast period.
2.2 Significant capital fund assumptions are as follows:
1. The reserves and reserve funds will continue to be a significant source of
financing for the capital programs and the capital projects are therefore deferred
in particular years where shortfalls were occurring until such a time as the costs
can be supported by that reserve or reserve fund.
2. It was assumed that no new debt will be undertaken during the forecast period
beyond that already identified.
24
REPORT NO.: FND-005-10
PAGE 4
3. Due to the shrinkage in income in the reserve funds due to economic conditions
and interest rate implications, the capital fund required additional tax levy
support, even with deferral of projects. As a result, it was assumed that a 1 %
increase in tax levy support for capital was approved annually. If this is not
undertaken, the forecast projects that can be accomplished would be significantly
impacted.
4. The capital forecast does not include any implications that may arise as a result
of the PSAB capital asset exercise and potential provincial requirements that
may flow from the PSAB reporting process.
5. The full amount of any federal gas tax funding has been applied to the capital
budget. No other capital grants were included as none are predicted at this time.
2.3 Significant operating budget assumptions are as follows:
1. Inflation is assumed at approximately 3% for most general operating expenses.
2. Education retained will decline each year due to the provincial reduction in the
education tax rate through until 2014.
3. While the Newcastle Fire Hall will be constructed during the forecast time period,
no additional costs have been incorporated beyond staffing due to further
analysis that will be required in this area and reported to Council at a later date.
There is an estimated reduction in the part-time firefighter budget subsequent to
the facility opening.
4. No significant changes in staffing models or service levels have been
incorporated. Any changes to the Municipality's operating structure would have
an impact upon the future budgets. The status quo was necessary in order to
create a base forecast.
5. It is assumed in the forecast that Council have not approved additional staffing in
2010 with the balance of the staffing request that was presented at the 2009
budget education session for the 2009 budget deferred to 2011. The staffing
forecasts provided by the department heads and reviewed by the CAO for 2009
budget deliberations have been spread over the 2011 to 2014 years. Any
decisions made by Council pertaining to staffing will have a direct impact upon
each future forecast year.
6. For the existing staff complement, continuing percentage increases have been
applied consistent with prior year's experience. This has the potential to vary
greatly as contracts come up for renewal over the forecast period.
25
REPORT NO.: FND-005-10
PAGE 5
7. Employee benefit increases are assumed at 10% per annum. Again, this has the
potential to vary greatly due to their unpredictable nature.
8. Assessment growth is assumed at 2% for 2011 escalating to 3% by 2014.
9. Revenues are assumed to increase modestly over the forecast period.
2.4 Listed above are the significant assumptions only. Each department would have
made a series of assumptions embedded into each of their budget submissions
for the forecast period. It is crucial to keep in mind that many of the above
assumptions are very sensitive and therefore have a significant impact upon the
end result. It is important to reiterate that the forecast is provided for information
purposes only. There is a great deal of information provided throughout the
detail pages in the attached binder based upon services provided by each
department.
OVERALL RESULTS
3.0 Based on the above assumptions, overall tax levy increases are predicted as
follows: 2011 - 9.83%,2012 - 2.24%, 2013 - 5.65% and 2014 -1.78% with an
overall average of 4.88%. It is important to note that the forecast does not take
the place of the Municipality's annual budget exercise. Each year, the current
budget undergoes a great deal of scrutiny by the CAD as well as many iterations
within each department.
3.1 It is also important to note that upper levels of government and other outside
influences can create a very unpredictable environment for municipalities. As
mentioned above, we have assumed the status quo generally throughout the
forecasting exercise. In order for Council to assess the trends occurring, staff
have transitioned some expenses over time to build in the tax levy impact (ie
winter control) but have not otherwise made service cuts etc to achieve any
desired outcome.
CONCLUSION
4.0 It is the goal of staff that the forecast provided will provide a "big picture"
perspective to Council of future cost pressures within each department and assist
as a guiding document for decision making purposes. The fulsome annual
budget exercise will take place each year whereby annual pressures are
reevaluated and resulting decisions made. This will hopefully assist Council in a
general way in the coming years in assessing service levels and public demands
versus affordability to the taxpayer.
26
Clarin
Proposal to produce quarterlv
Clarington Lifestyle Magazine
Clarington This Week, in partnership
with the Municipality of Clarington,
would be pleased to produce, print
and distribute a quarterly lifestyle
magazine: Experience Clarington.
the m'agazine would cover the
following topics of interest
Downtown Development, Business,
Style Report, Home Decor, Health and
Wellness, Dining, Nightlife, Tourism
and Upcoming Events.
Each edition would require a blueprint
for success from both your tourism
office and out advertising/editorial
team. This could be co-ordinated
through Jennifer Cooke and
Laverne Morrison.
SPECIFICATIONS:
I -'j
Press-run:
.-
Stock:
Presswork:
Financial Investment:
MOLAND DURHAM REGION MEDIA GROUP
Metroland Durham Region Media Group, A Division of Torstar Corporation
865 Farewell Street. Oshawa ON L 1H 7L5
905-579-4400 www.durhamreAion.com
27
Clarin
Proposal to print and distribute Clarington.net
Clarington This Week would like to tender the following quote for the
print and distribution of the 2010 Clarington.net newsletters.
~laringtoILnet
. .2 ISSUE 3 WWW.dartngton.net
~~~__-.. __ SEPTEMBER 2009
~RrNGTQ ,'. ; , ;,"
*"~lf(Jr Flt~ c:::t/ AtlR'S 1l:I 110$7
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Dates:
Stock:
Financial Investment:
Please note that this price includes production,
print and distribution of the newsletter.
Distribution:
IftOLAND DURHAM REGION MEDIA GROUP
Metroland Durham Region Media Group, A Division of Torstar Corporation
865 Farewell Street, Oshawa ON L1H 7L5
905-579-4400 www.durhamreAion.com
28
cmriQgron
MEMO
CLERK'S DEPARTMENT
To:
From:
Date:
Subject:
Mayor Abernethy and Members of Council
Anne Greentree, Deputy Clerk
February 18, 2010
SPECIAL GENERAL PURPOSE & ADMINISTRATION COMMITTEE
MEETING AGENDA - FEBRUARY 19, 2010 - UPDATE
Please be advised of the following amendments to the GPA agenda for the meeting to be
held on Friday, February 19, 2010:
4. DELEGATIONS
See attached Final List. (Attachment #1)-
Also:
Please find attached letters from the Orono Downtown Business Improvement
Association and the Bowmanville Business Centre regarding the expense of road
closures for street festivals
/
I!.
Patti L. Barrie, Municipal Clerk
PLB/jeg
cc: F. Wu, Chief Administrative Officer
Department Heads
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T 905-623-3379 F 905-623-6506
FINAL LIST
OF DELEGATIONS
Special GPA Meeting: February 19, 2010
(a) Angie Darlison & Peter Evans, Clarington Older Adult Centre Board,
(b) Gail Rickard, Chair, Clarington Public Library Board
(c) Jean-Michel Komarnicki, Adrian Short and James Campbell, The Visual
Arts Centre of Clarington
(d) Sally Barrie, Community Care Durham, Clarington
(e) Keith Isnor and Martha Rutherford-Conrad, Clarington Museums and
Archives
(f) Jean-Michel Komarnicki, The Mayor's Golf Tournament
(g) Bill Skitch, Regarding FND-004-10, Section 18.1 (Historic Signs)
(h) Marie Marano, Director of Corporate Services and Human Resources
Regarding 2010 Corporate Services Departmental Budget
(i) Patti Barrie, Municipal Clerk
Regarding 2010 Clerk's Services Departmental Budget
U) Gord Weir, Director of Emergency Services
Regarding 2010 Emergency Services Departmental Budget
(k) Tony Cannella, Director of Engineering Services
Regarding 2010 Engineering Services Departmental Budget
(I) Frank Wu, Acting Director of Operations
Regarding 2010 Operations Departmental Budget
(m) Joseph Caruana, Director of Community Services
Regarding 2010 Community Services Departmental Budget
(n) Faye Langmaid, Acting Director of Planning Services
Regarding 2010 Planning Services Departmental Budget
'lOFEB16 Pr112:34:25
8B
';iI~ Z)~
BOWMANVILLE BUSINESS CENTRE
DDC
WlO
BOWMANVILLE
BUSINESS CENTRE
DISTR~B)JTION
REVIEWED BY [Q
OR!9INAL TO:
>1"COUNCll 0 COUNCil 0 FILE
DIRECTION INfORMATION
COPYTO:
o MAYOR 0 MEMBERS 0 CAD
OF COUNCil
o COMMUNIl 0 CORPORATE 0 EMERGENCY
SERVICES SERVICES SERV~ES
o _RWG 0 MUN1CIPl\l 0 OPE!".~ONS
SERVICES CLERK'S
o PlANNING 0 SOllCITlffi 0 TREASURY
SERVICES
P.O. BOX 365
BOWMANVILLE, aNT.
Lie 3L 1
201002 11
Mrs. Patti Barrie
Municipal Clerk
Municipality of Clarington
40 Temperance Street
Bowmanville, Ontario
LIC 3A6
o OTHER
MlJNlQPAlCURK'SFILE Ao( 50
mO&<G>c
Would you be kind enough to please bring the following concern, from the
Board of Management and our over 150 members, to the attention of the
Mayor and Council at the earliest possible opportunity:
Dear Patti Barrie
"That Council be requested to discontinue the Policy that it instituted in
September, 2009, to charge the BIA's for street closing and waste removal,
when a street festival is being held."
While we recognize Council's desire to be fiscally conservative, we do not
believe that it is in the best interest of the Municipality to charge for such
services when the purpose of these events is to promote the historic
downtown core, the very essence of the community. We exist at the
pleasure of Council and, as such, play a major role in attracting both
residents and visitors to the area to make the Municipality of Clarington the
"best place to work and play". In fact, during our market surveys, we have
been told that "new" homeowners chose to buy a home in the Bowmanville
area because of our many very popular events.
As you well know, these festivals, which by their very nature are expensive,
are paid for from the extra property taxes which each property owner in the
downtown is required to provide. As a result, the BIA's and the
Municipality are, in fact, in a form of partnership, with each doing what it
can in support of the other. To have one partner arbitrarily charge the other
.
Page 2
for services rendered has never been the case since the inception of the BIA
in 1977, by By-law 77-33, and the many Mayors and Councillors who have
served since that time; and we believe to do so now is both unfair and
unjustified. Therefore, it is our sincere hope that this arrangement will be
discontinued beginning in 2010.
Yours very truly
~
;:/~
Edgar Lucas
Chairman .
Board of Management
Sent By: Orono Weekly Times;
905-983-5301 ;
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Feb-12-10 11:21AM;
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HANDOUTS
&
PRESENTATIONS
2010 Budget
Overview
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FRIDAY, FEBRUARY 19, 2010
Topics to Cover
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Fiscal/Economic Update
· Financial Indicators
· Historical Trends
· Current/ operating overview
· Capital Budget
· Status of Reserve Funds
· Development Charges
· Long-term Debt
· Next Year
Fiscal/Economic Update
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· TD Securities:
o Core inflation to be held relatively in check
o Canadian dollar will continue to strengthen against US dollar
o Bank of Canada to leave overnight rate unchanged until mid-
year
o Yields should advance gradually upwards but not return to
"normal" levels until late 2011
o Recovery will be gradual, forecasts economy will grow by 2.5%
.
In 2010
Fiscal/Economic Update
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· CIBC Economics:
o Inflation not seen as a big concern in Canada
o Low interest rates
o Bank of Canada may raise rates in the third quarter
o Sometime in 2010 and 2011 "we will lose some of the 'sugar
high' from the stimulus money"
o Taxes may have to increase to compensate for huge deficits
Fiscal/Economic Update
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Conference Board of Canada:
o Canadian cities are on the rebound in 2010, although the pace
of recovery will vary markedly
o Oshawa CMA is forecast to post growth of 3.2% in 2010
o Housing starts are expected to double from 2009 levels, which
will boost the construction sector
Fiscal/Economic Update
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Region of Durham Economic Update, February 2010
o Rebound in housing demand expected to continue well into
the first half of 2010 and produce positive spinoffs in the local
economy
o Unemployment rate in Oshawa CMA at 9% for 2009 (same as
Province)
o Uncertainty in local labour market
o Durham Region is likely to see more housing construction
compared to the rest of the GTA due to its relative affordability
compared to neighbouring jurisdictions, although CMHC does
not expect housing starts in Durham to return to the pace of
recent years for at least another three years
Financial Indicators
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Clarington participates in an annual study
performed by BMA Management Consulting Inc.
· The BMA Study includes 81 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
Assessment Breakdown
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
Assessment
6.8% 2.7%
. Residential
. Multi-Residential
. Farmlands
. Managed Forest
. C;ommercial
. Industrial
· Total Residential Category = 90.6%
· Total Non-Residential Category = 9.4%
Net Municipal Levy Per Capita
Selected Municipalities
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
2009 Levy Relative Rank in 2009 Levy
Municipality per Capita Rating Survey per Capita
Upper and Lower Lower Only
Milton $ 896 low 6 340
Clarington $ 1,134 mid 34 404
Ajax $ 1,272 high 62 429
Pickering $ 1,344 high 69 444
Halton Hills $ 971 low 11 448
Newmarket $ 1,030 low 16 454
Whitby $ 1,298 high 65 477
Oshawa $ 1,358 high 71 674
Cobourg $ 1,417 high 75 908
Peterborough $ 1,134 mid 35 1134
GT A Average $ 1,185
Survey Average $ 1,167
PROPERTY TAXES AS A PERCENTAGE OF
INCBME
-----------------------------------------------------------------------------------------------------------, -----------------------------------------------------------------------------------------------------------
"'\.
-
~JJ ii1I(~l~Hr}l1
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I Milton $ 3,341 3.0% low
Halton Hills $ 3,865 3.2% low
I Newmarket $4,004 3.3% low
Clarington $ 3,967 3.9% low
I Ajax $ 4,318 4.1% mid
Whitby $ 4,476 4.1% mid
I Pickering $ 4,584 4.2% mid
Peterborough $3,143 4.7% high
I Oshawa $ 4,060 4.9% high
Cobourg $3,904 5.5% high
I Survey Average $ 3,637 4.1% mid
Financial Position Per Capita
--:--------------------------------------------------------------------------------------------------------,0-----------------------------------------------------------------------------------------------------------
Oshawa -$81,229,835 -$529
Whitby $38,020,102 $318
Newmarket $29,820,545 $363
Clarington $35,277,232 $422
Cobourg $8,439,534 $466
Ajax $68,174,403 $704
Pickering $79,987,596 $843
Halton Hills $55,422,641 $921
Peterborough $73,072,752 $940
Milton $82,773,528 $1,104
Survey Average $359
Financial Indicators
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
Indicator
Clarington
Survey Average
2008 Building Permit Fees on a Residential $1,526 $1,688
Home
Reserves as a % of Total Expenditures 106.8% 48.1%
Reserves as a % of Total Taxation 158.3% 79.2%
Reserves per capita $867 $833
Debt per capita $413 $513
Financial Position per capita $422 $359
Property Taxes as a % of Household Income 3.9% 4.1%
Comparison of Relative Taxes
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
Property
Type
Clarington Survey
Average
Avgwith
Population Range
50,000-99,999
GTA
Average
Detached $2,902 $2,880 $2,898 $3,326
Bungalow
Senior $4,649 $5,343 $4,929 $5,600
Executive
N eighbourhood $4.27/ sq ft $3.37/ sq $3.50/ sq ft $3.50/ sq ft
Shopping ft
Industrial $2.17/sq ft $1.84/sq $1.85/sq ft $2.18/sq ft
ft
Large Industrial $0.57/sq ft $1.34/sq $1.29/sq ft $1.50/sq ft
ft
2009 BMA Municipal Study
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Clarington's tax rates are at the average in most
categories except large industrial which is low
· Clarington's relative tax burden is in the low-mid range
· Property taxes as a percentage of income rated low in
Clarington in comparison to others
· Clarington has the 34th lowest net levy per capita out of
the 81 participants (Other Durham Lakeshore are 62 to
71)
Historical Trends
Assessment Growth History
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
"-
\
t:i~~)~[3)@I~!D~It\~u (~~CQ)\~~?~/,7lf-~1
2001 2.60/0
2002 3.470/0
2003 2.090/0
2004 2.940/0
2005 3.060/0
2006 3.640/0
2007 2.120/0
2008 2.80/0
2009 3.00/0
2010 1.920/0
Clarington's Budget Increase History
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
"-
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2001 3.5%
2002 2.86%
2003 3.5%
2004 8.3%
2005 4.7%
2006 4.08%
2007 8.25%
2008 4.44%
2009 2.35%
2010 Draft 3.41%
2010 Budget Overview
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
· 1% is approximately $337:'800
· A 1% increase in the local levy = approximately $9.87
for an average house valued at $246,000
· Impact of proposed budget would be $33.66 on
average household
I
I Schedule A 3.20%
Schedule C- External Agencies 0.21%
I Grand Total 3.41%
Schedule
Tax Levy Impact
Provincial Funding
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Notified by Ministry of Finance on December 15, 2009 that the
Municipality of Clarington will no longer receive OMPF grant of
$116,000
· "Although your municipality does not qualify for OMPF funding in
2010,...AlI municipalities within the Region of Durham will benefit
from the phased upload of ODSP and OW benefit costs commencing in
2010...The removal of these costs will benefit all taxpayers with in the
Region. "
· Increase in Provincial Social Assistance Benefit Program Uploads for
Durham Region compared to 2009 = $10,475,900
· The Region's committee approval of the budget was for 2.15%
incorporating savings from province
· Based on Province's position, this creates some "tax room" for the lower
tier municipalities on the tax base for 2010
Budget Impact Summary
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Review of Schedule A to Report FND-004-10
· Review of Schedule B to Report FND-004-10
· Review of Schedule C to Report FND-004-10
· Schedule B items require specific resolutions to
consider each item individually or specific items
Committee wishes to move on.
· Schedule C- External agencies require specific
resolutions.
Proposed Draft Capital Budget
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Total Program = $15,048,682
· Tax levy support represents .06% increase over prior year at
$3,732,648 (2009-$3,710,305) as identified in Schedule A
· Includes use of 2010 federal gas tax funding of $2,327,000.
Rules for federal gas tax prevent reduction in tax levy support
to roads programs.
· Continues with limitations in usage of development charges
capital funding due to reduced development charges
collections. This has significant implications to timing of
development related projects over next several years and will
have a direct impact on the development community.
Strategic focus will be needed to optimize the usage of limited
dollars.
Comparison of Capital and Road Expenditure
Budgets
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
~
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Rural Roads Roads Section
2006 20,912,083 3,165,874 340,000 11,230,100
2007 13,886,266 3,259,874 405,000 6,848,000
2008 12,955,538 3,829,471 660,000 6,108,388
2009 13,722,400 3,710,305 860,000 5,200,000
2010 15,048,682 3,732,648 960,000 5,076,000
Significant Capital Projects
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Construction of Newcastle Fire Hall- $4,500,000
· Penwest Parkette- $245,000
· Pavement Rehabilitation Program- $1,050,000
· Osbourne Road Reconstruction- $1,500,000
· Structures Rehabilitation- $400,000
· Horsey Street Reconstruction- $720,000
· Jane Street Reconstruction- $475,000
· Total Sidewalks- $285,000
· Bridge and Culvert Improvements- $200,000
Significant Capital Projects
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Bowmanville Creek Erosion- $200,000
· Rural Road Resurfacing- $960,000
· Roads Fleet- new and replacement- $1,021,525
· Facilities repairs and equipment replacements-
$471,900
· Land Acquisition- $720,000
Budget Status of Reserve Funds
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
HISTORICAL SUMMARY OF RESERVE FUND ACTIVITY
(EXCLUDES DEVELOPMENT CHARGES)
2000
2006
2010
2008
2001
2002
2003
2004
2005
2007
2009
Summary of Reserve Funds
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
· Non-DC related is showingdecline for 2010 due to
increased capital draw and reductions in contributions
· Continued strong reliance for capital purposes
· Reserve funds are structured to assist with one-time
type items under operating or stabilized capital
funding based on the reserve funds being replenished
· Net increase to transfers to reserve funds over 2009
for fire equipment, community services capital and
legal reserve but some additional will have to be
addressed in future years (operations fleet)
· Reduction in draw on rate stabilization reserve fund of
$300,000
Summary of Reserve Funds
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
· Development Charges reserve funds are presenting
a problem and require continuing work and
analysis.
· Roads DIC reserve fund will require debenture for
Mill Street work approved in previous year budget.
· Green Road l?roject previously approved for future
debenture will come back to Council in future once
dialogue and agreement with GO Transit
completed
· Reserve Funds per capita in 2004 = $867, 2005 =
$863, 2006=$861, 2007=$851, 2008=$867,
Average in BMA study = $833
Development Charges Items to Consider
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· New Development Charges Background Study and by-law
underway
· Library and Indoor recreation have funding issues around
supporting the cost of debt. Currently, interim borrowing of just
over $1 million from other reserve funds to address shortfall
· Based on 350 new residential units for 2010, there would be an
additional shortfall of $1.6 million to be interim financed from
other reserve funds. Any increase over the 350 units would
reduce this amount.
· As mentioned in capital update, all categories have had capital
projects staged in anticipation of amount of development in
2010.
Debt Summary
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
Facility/Project Jan1,2010 New 2010
South Courtice Arena 7,573,000
MAC/Main Library 3,755,000
I ndoor Soccer/Lacrosse 2,530,000
RRC CCO Space 922,012
Newcastle Branch Library 1,000,000
Mill Street EST 0 2,250,000
Newcastle Aquatic Facility 16,509,000
Total Projected 32,289,012 2,250,000
Debt Summary
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Financing of Debenture Payments- 2010
. Contribution
. Tax Leyy
. Deyelopment Charges
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Debt Summary
-----------------------------------------------------------------------------------------------------------0-----------------------------------------------------------------------------------------------------------
5,000,000.00
4,500,000.00
4,000,000.00
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
Annual Debt Repayments
. DC Component
. Non-DC Component
2003
2006
2010
2008
2004
2005
2007
2009
ECONOMIC CONSIDERATIONS
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Few 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
· Reduction of planning fee revenue and building permit fee revenue and
interest revenue
· 10% reduction challenge on utilities
· Significant cost cutting measures put into place, including reduction in
part-time staff, elimination of some students, elimination of building
inspector position, elimination of Manager of Subdivision
Implementation position, as well as many line-by-line cuts
· Managed to offset lost revenue due to economic conditions with cost
cutting measures
LOOKING FORWARD TO 2011
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· Further reduction in rate stabilization reserve fund reliance
· Final resolution of fire retention issue at estimated total cost of over
$500,000 built into budget
· Additional firefighters once Newcastle Fire Hall complete and
operational
· Increased tax support to capital - Infrastructure Deficit
· Wage Settlements and benefits
· Significant OMERS funding issue
· Address contributions to reserve funds
· Staffing pressures
· Aging facilities
· Implications on tax levy of new facilities
· Cash flow on indoor recreation dc debt
2011-2014 Forecast
-----------------------------------------------------------------------------------------------------------...0-----------------------------------------------------------------------------------------------------------
-
· For Council information
· Does not replace annual budgeting exercise
· Significant number of assumptions that may cause
dramatic shifts
· "big picture" perspective of future cost pressures only
201 0 Budget Presentation
Gail Rickard
Chair
Clarington Public Library Board
, I'
=.!. ~ Clarington Public Library
I www.clarington-library.on.ca
Service Comparisons
Library Card
Holders
40,563,
8.20/0 increase
Materials
Checked Out
652,469,
7.90/0 increase
=~:. Clarington Public Library
I www.c1arington-library.on.ca
,~
.: e ~ Clarington Public library .
, Bowmanvllle Branch 623.7322
Orono Branch 983,5507
Courllce Branch 404.0707
Newcastle Village Branch 987-4844
Ililll~i~"~llm 1111' i~~1 i~I" II
02169001283135
e
Service Comparisons
Visits Online
174,992
27.30/0 increase
Visits to Branches
321,516,
17.70/0 increase
, I'
=.1. ~ Clarington Public Library
I www.clarington-library.on.ca
e
Public Library Use Increases in
Uncertain Economic Times
· Computers /
Internet
· Job Searches /
Business
Information
· Study/Lounge
Spaces
, I'
=.1. ~ Clarington Public Library
I www.clarington-library.on.ca
o
New Library in Newcastle
Opened August 29,2009
~:. Clarington Public Library
I www.c1arington-library.on.ca
Improvements:
· Computers / Collections
· Hours of Service
· Parking
· Program Room
· Study, Reading Spaces
o
New Library in Newcastle
Opened August 29,2009
, I'
=.1. ~ Clarington Public Library
I www.clarington-library.on.ca
Construction Costs
· Funded by a Provincial
Grant (69010) and the
Municipality (31 010)
· Came in under budget
I n its first four months,
Newcastle's usage
increased by 1 000/0
e
New Library in Newcastle
Opened August 29,2009
"The library makes
you proud to live in
Newcastle."
"This place has
definitely improved,
man. Awesome job."
.:~~ Clarington Public library
I www.clarington-library.on.ca
e
Library Costs per Capita (2008)
Ajax
CI,<trin'gtQn
Oshawa
Pickering
Wh itby
$35.73
$30.42
$54.74
$49.72
$38.46
, I'
=.!. ~ Clarington Public Library
I www.clarington-library.on.ca
e
Current Budget
2009 Budget
2010 Bud et Year-on-Year
g Cost Impact
Expenses
Total Expenses
0/0 Increase 2010/2009
$2,674,050
$2,713,980
$39,930
1.490/0
Revenue
Non-Municipal Revenue
Municipal Support
Total Revenue
$181,178
$2,492,872
$2,674,050
$171,380
$2,542,600
$2,713,980
$(9,798)
$49,728
$39,930
0/0 Increase 2010/2009
1.990/0
Why People Value CPL
"Never had anything but
prompt, polite and excellent
service in 29 years. Can't
imagine life without it."
"Thank you for giving Orono
a chance to experience the
world from its own town."
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=.1. ~ Clarington Public Library
I www.clarington-library.on.ca
-
Why People Value CPL
"We love listening to the
audio CDs when we
travel. It is a highlight of
our trip. Thanks."
"Words of mine could not
express the pleasure,
great service and
pleasant personnel. An
endless source of free
information and help."
"I've learned more here
than anywhere else... [a]
place worthy of taxes."
"You saved my sanity. I
am partially blind. Thank
you very much."
.:~:.. Clarington Public library
I www.c1arington-library.on.ca
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Why People Value CPL
Dear Clarington Public Library...
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I www.clarington-library.on.ca
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Thank you
for your support of
Clarington Public Library
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ClaringtoD
M USCUm.s
aDd Archives
Annual Report to
Council
2009
OUf Community
Museum
ClaringtoD
M USCUm.s
aDd Archives
Highlights 2009
Dinosaurs & Company
A travelling exhibition from
Musee de la nature et des
sciences, Sherbrooke, QC
January 6 - April 30, 2009
ClaringtoD
M USCUm.s
aDd Archives
Highlights 2009
ClaringtoD
M USCUm.s
aDd Archives
Virtual Museum of Canada
Bowmanville! 150 years of Celebrating Community
Challenges 2009
'---
Showcasing
one of Canada's
largest publicly
owned
DOLL & TOY
collections,
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Marketing
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Ta-.k.Chockoutoor_b61teolt
www.cla.~onm\llleu[WI.com fur
th.eTuyExhlhulhlaF'AL
Building
Maintenance
ClaringtoD
M USCUm.s
aDd Archives
Revenue Highlights
ClaringtoD
M USCUm.s
aDd Archives
Financial Summary
2009
. 720/0 increase in federal funding
. 680/0 increase in admission fees
. 450/0 increase in public donations
Expense Successes
. 480/0 reduction in telecommunication fees
. 360/0 reduction in banking fees
Plans for 2010
ClaringtoD
M USCUm.s
aDd Archives
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Thank you...
ClaringtoD
M USCUm.s
aDd Archives