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HomeMy WebLinkAboutClarington 2020 Draft Budget-- r- - ` Clarftma Table of Contents Introduction 4 What Does Administration Do? 40 Budget Philosophy 4 Administration Operating Budget 41 Continuous Improvement 5 What Does Legal Services Do? 46 Operating Budget Overview 6 Legal Services Operating Budget 46 Capital Budget Overview 7 What Does Corporate Services Do? 50 Organizational Structure Review 8 Corporate Services Operating Budget 51 Staffing Proposals 8 What Does Municipal Clerk's Do? 56 Future Initiatives 10 Clerk's Department Operating Budget 57 Conclusion 10 What Does Finance Do? 64 About the Municipality of Clarington 12 Finance and Unclassified Administration Operating Organizational Profile 12 Budget 65 Council's Strategic Plan 15 What Does Emergency and Fire Services Do? 70 Snapshot of Our Community 16 Fire and Emergency Services Operating Budget 71 Property Assessment 25 What Does Engineering Services Do? 76 Summary 26 Engineering Services Operating Budget 76 Snapshot of 2020 Budget 28 What Does Operations Do? 82 Operating Budget 31 Operations Department Operating Budget 83 Capital Budget 32 What Does Community Services Do? 92 Items for Council Consideration 33 Community Services Operating Budget 93 What Does Mayor and Council Do? 36 What Does Planning Services Do? 102 Mayor and Council Operating Budget 37 Planning Services Operating Budget 103 What Does Clarington Library and Museums Do? 108 Glr]rW#on Draft Budget 2020 1 1 What Does Art and Culture Do? 112 Reserve Summary 163 Visual Arts Budget Impact 112 Reserve Definitions 164 External Agencies Operating Budget Impact 116 Reserve Fund Summary 167 Long-term Debt Introduction 120 Reserve Fund Definitions 170 Annual Repayment Limit 120 Reserve Fund Contributions and Transfers 181 Existing Debt 120 What is Fund Accounting? 186 Proposed New Debt 122 Revenue and Expense Categories 188 Conclusion 124 Financial Policies 190 Capital Budget Introduction 126 Glossary of Terms 192 Summary of 2020 Capital Budget 127 Acronyms 198 Capital Projects 2020 131 Five -Year Capital Forecast 153 Reserve and Reserve Fund Introduction 162 Glr]rW#on Draft Budget 2020 1 2 CAT r. won- i,ipal Law EnfO wo� Introduction The Municipality of Clarington is pleased to provide its 2020 Draft Budget to Council and taxpayers. This document is the Municipality's financial plan for 2020 and serves as a document that guides policy, strategic decision-making and service levels. It includes a broad overview of the operations, current financial position and capital and operating budgets of the Municipality. Through Council, the Municipality delivers a wide range of services including local roads, recreation facilities and programming, parks and fields, municipal law enforcement, fire and emergency services, building inspection and local planning. The Region of Durham is responsible for providing services such as regional planning, water and wastewater, social housing and social services, regional roads, Provincial Offences Act court services, police and ambulance services. Cla 'Won Budget Philosophv The Municipality of Clarington takes the management and stewardship of public funds seriously. The Municipality's budget process is continually reviewed and refined to provide Council with the information required to enable effective and timely decision making. To ensure that the budget and financial position is reasonable, various metrics are tracked internally and compared to similar municipalities. The Municipality participates in the annual BMA Study which is a benchmarking study that has identified several key performance indicators for municipalities. The study also provides comparative information with similar municipalities as part of the package. Important metrics from the Study have been included to highlight the Municipality's fiscal health. Compiling the annual budget involves staff at various levels from across the organization. Finance begins the process by issuing budget guidelines and base budgets Draft Budget 2020 1 4 to departments. The budgets are reviewed and amended as necessary by the respective managers and department heads. Once Finance has consolidated all the information from the various sources, the CAO and Director of Finance meet with each Department Head individually to review the operating and capital budgets. Staff keep in mind Council guidelines, strategic priorities and other factors in the municipal sector that may impact the Municipality over the next several years. Once this review is complete, a draft budget is presented to Council and the public for discussion and consideration. In September 2019, Council passed a resolution directing Staff to prepare a draft budget with a tax levy increase of 2.0%. This budget document has been prepared with these guidelines in mind. As part of this document, projects and initiatives that were deferred or service reductions which have been included in order to meet the 2.0% threshold have been identified for Council's consideration. While the 2.0% was a target, which Staff have met, it does not prohibit Council from considering other options in their final budget determination. Claringon Continuous Improvement The Municipality's budget process focuses on containing costs and implementing best practices, with the goal of demonstrating leadership in financial management and providing residents with value for their property tax dollar. This approach to the budget and operational improvement has resulted in several specific cost savings that are reflected in the 2020 draft budget such as: x Structural reorganization of the administration of the Municipality; x Reduction in consulting expenses; x Merging office supplies in certain departments to pool funds; x Savings in paper and printing supplies from the recent investment in digital agendas and other paperless initiatives; x Savings in utilities from investment in modern energy-efficient lighting and HVAC systems; Draft Budget 2020 1 5 These are some examples of continuous improvement opportunities that have been identified by staff and implemented. Operating Budget Overview Council adopted a policy in 2019 that sets out a range for the year over year increase in the tax levy. The low end of the range is based on the annual Consumer Price Index (CPI) as of July. The CPI for July 2019 was 2.1 %. The range prescribed in the Budget Policy is from 3.08% to 4.63% with a mid -point of 3.85%. This range considers the CPI plus an amount for funding infrastructure replacement through the asset management plan. Council direction for 2020 was a target increase of 2.0%. Over the past few years the Municipality has continued to see increased growth. Since 2009, the Municipality has seen increased assessment growth averaging 6.1 % annually. This assessment growth includes both new growth (i.e. brand-new development) and market growth Cl #on (i.e. increase in the value of existing properties). As the market value has increased, the tax rate has seen a decrease to reflect the fact that the Municipality's spending needs have increased at a lower rate than assessment growth. To put the budget into context for the residents, every additional 1.0% increase in the property tax levy is approximately $598,200 added to the operating budget. This increase is approximately equal to $14.64/year for the average residential assessment of $390,700. Therefore, a 2.0% increase will be $29.28/year or $2.44/month. The Municipality's proposed tax levy is approximately $62.6 million which includes $8.3 million to capital projects and $3.8 million to reserves and reserve funds. The total operating transfers from reserves and reserve funds for 2020 are $4.6 million. The Municipality of Clarington collects taxes for the Region of Durham, as well as the Province of Ontario to fund public education. Approximately 49% of the property tax bill relates to services provided by the Draft Budget 2020 1 6 Region of Durham. An additional 19% goes to the Province to fund education. The remaining 32% is kept by the Municipality to provide local services and infrastructure investment to residents in Clarington. Estimated Breakdown of Property Tax Dollar Region of Durham 49% Education 19% Municipality of Clarington 32% Capital Budget Overview In addition to the delivery of services the Municipality is responsible for the maintenance and replacement of municipal capital assets such as facilities and roads. The value of these assets at their original cost is approximately $751.9 million. Aging infrastructure is an issue faced by all municipalities. Often the cost of ClarW#oa infrastructure requiring rehabilitation exceeds available funding. This situation is referred to as an infrastructure gap or deficit. The Municipality's capital investment in 2020 is approximately $28.7 million which includes $8.3 million directly from the tax levy, $7.6 million from development charge reserve funds, $7.4 million from reserve funds (Federal Gas Tax and Ontario Community Infrastructure Funding). A proposed debenture of $4.2 million relates to the start of work on the proposed South Bowmanville Recreation Centre. The complete South Bowmanville Recreation Centre project, expected to start in 2021 or 2022, will be one of the largest municipal projects in the history of Clarington. The 2020 capital budget is predominantly infrastructure based with over $15.2 million being invested in bridges, roads, sidewalks, stormwater management and traffic signals. Draft Budget 2020 1 7 Organizational Structure Review The Municipality of Clarington completed an organizational review in December 2019. The review, funded by the Province of Ontario, looked at Clarington's ability to realize cost savings and operational efficiencies while maintaining front line services. Grant Thornton LLP was retained by the Municipality to conduct an independent review for the Municipality and produced a report on December 4, 2019 containing 30 recommendations for the Clarington's consideration. A separate implementation report will be presented for Council's consideration prepared by the Chief Administrative Officer. The cost savings associated with the organizational change, where quantifiable, have been recognized in the determining the tax levy ( Net Levy Required). Any efficiencies realized resulting from the reorganization have not been included as the full impact may not occur until 2021. ClarW#oa Staffing Proposals The proposed budget includes the following positions which were all accomplished by departments staying within the 2.0% target: Full-time Planner II $24,900 The addition of a Planner II to the Planning Department would mean the workload could be more efficiently and effectively carried out. This position would be partially funded from the vacant Clerk I position. Contract Planner I to Full-time $20,900 The conversion of the existing contract Planner I to full-time would improve the ability of the department to recruit and retain this resource that is used for special projects including ZONE Clarington, research on other special projects and climate change. The impact for 2020 would be benefits only as funds have been carried over from past years due to turnover in the contract position. Draft Budget 2020 1 8 Full-time Aquatic Programmer $80,800 Located at the Diane Hamre Recreation Complex, this position would provide a full-time programmer at the two busiest pool facilities. The existing part- time position would be relocated to Alan Strike Aquatic and Squash Centre; Part-time Customer Service Programmer $51,400 The role assists the Customer Service Coordinator providing day-to-day support to the customer service team. This role is also essential for the Community Services Department's ability to take on the field permitting responsibilities from the Operations Department. Temporary Worker Extension (five staff for two additional months) $42,950 An extension of the existing Operations Department temporary workers from six months to eight months. Would allow work in April and November on pothole patching, litter collection and traffic control for ditching operations. ClarM#on Part-time Clerk II to full-time $19,600 The existing part-time position in Operations is responsible for completing ON1Call locates, budgetary and statistical information, accounts receivable and other clerical duties. Full-time responsibilities would include administration of seniors' snow clearing programs, timesheet inputs, performance metrics and work order process improvements; Full-time Municipal Law Enforcement Coordinator $0 This position is supported by the Municipality's parking meter revenue and would coordinate and supervise the parking enforcement operations of the Municipal Law Enforcement Division. The "Items for Council Consideration" within this budget book include: Full-time Firefighters (four) $318,400 The addition of four firefighters would make the total 60 providing 24/7 protection with Station 1, Draft Budget 2020 1 9 Station 2 and Station 4 having five staff per platoon (Platoon Chief or Captain and four firefighters). This would reduce the reliance on volunteer firefighters to ensure adequate coverage. If Council wished to mitigate the tax levy increase impact of any or all of the staffing recommendations the Future Staffing Reserve Fund may be used; however, this would mitigate the impact in 2020 with the full tax levy impact being deferred to 2021. Future Initiatives Infrastructure deficits and long-term fiscal sustainability are areas of continuous concern for municipalities across Ontario. Staff will continue to update the Municipality's Asset Management Plan as we move towards increasingly more complex legislative requirements for asset management. Staff will also look at combining the development charges plan, asset management plan and strategic plans into one comprehensive financial plan, which ensures fiscal sustainability is considered when making future decisions. ClarW#oa Conclusion The 2020 draft budget holds the proposed levy increase in line with the consumer price index level of inflation. While significant growth in 2020 provides additional funding, the Municipality needs to look ahead when prioritizing capital projects, mitigating grant reductions and closing the infrastructure deficit gap. 2020 is a year of change and opportunity for Clarington. With new leadership, a new structure, new technology and a vision towards continuous improvement, Clarington is poised to continue providing the services that our residents have come to expect. The draft budget maintains established levels of service, while allocating some additional funds to maintaining our aging infrastructure and supporting the Municipality's strategic priorities. This budget is a short-term plan while the Municipality refocuses and realigns its priorities to allow for the development of a long-term financial plan, an asset management plan and a development charges strategy. Draft Budget 2020 1 10 Overview Me r �k ., ..: ri �: w - About the Municipality of Clarington The Municipality of Clarington is a beautiful community that forms the eastern boundary of the Greater Toronto Area Clarington is one of eight municipalities located in the Region of Durham. With an estimated population of over 100,000 and growing, Clarington offers residents a blend of city living and rural charm. Clarington is a geographically large municipality, covering an area of approximately 611 square kilometres consisting of four major urban centres and 13 hamlets. Residents enjoy waterfront trails alongside Lake Ontario, Greenbelt protected farmlands and the natural beauty of the Oak Ridges Moraine. Organizational Profile The Municipality of Clarington is a lower -tier municipality within the Region of Durham. The Municipality is responsible for the provision of local roads, recreation services, stormwater management, local planning, building code inspections, municipal law enforcement, park maintenance, among other services that impact the daily lives of our residents. 2018 to 2022 Municipal Council The Municipality's governance is made up of the mayor, two regional councillors and four local councillors. The Council for the Municipality of Clarington consists of Mayor Adrian Foster Regional Councillors Joe Neal (Ward 1 and 2) and Granville Anderson (Ward 3 and 4) Local Councillors Janice Jones (Ward 1), Ron Hooper (Ward 2), Corinna Traill (Ward 3) and Margaret Zwart (Ward 4) CIarW#on Draft Budget 2020 1 12 (Back row: Janice Jones, Margaret Zwart, Ron Hooper, Corinna Traill. Front row: Joe Neal, Adrian Foster, Granville Anderson) C1arW#an Draft Budget 2020 1 13 The Corporation's current organization chart is: Mayor and Council Chief Administrative Officer Director of Director of Director of Director of Municipal Municipal Emergency Director of Director of Director of Clerk Solicitor Community Corporate Services / Finance / Operations Engineering Planning Services Services Fire Chief Treasurer Uouncii Services / Legal Services Recreation Facilities Human Resources Fire Suppression Accounting Parks Building Ins ection p Community Planning & g Print & Mail Design Municipal Law RecreationPayroll Fire Taxation Roads Infrastructure Enforcement Programming Prevention and Capital Development Works Review Accessibility Health & Training Capital Fleet Community Safety Assets Development Development Special Projects Records Information Internal Building Management Technology Audit Purchasing Animal Services ClarIWoon Draft Budget 2020 1 14 As part of an organizational review, the Municipality may be moving towards a structure, over a phased -in process, which consolidates several department areas to improve efficiency and reduce overhead. The proposed structure and the implementation plan are addressed in a separate report from the Chief Administrative Officer. Council's Strategic Plan Clarington's Council has developed a Strategic Plan to guide the Municipality and set out its vision for the next four years. The purpose of this plan is to provide strategic priorities and a road map for Council and Staff to determine the best way to provide services and help the community thrive. The Strategic Plan outlines five strategic priorities for the 2019 to 2022 term of Council: Engaged Communities Enhance two-way communication with community Establish and develop a unique Clarington brand for promoting our community ClarM#on Strong Economy Complete the implementation of the Downtown Plans Create partnerships in broadband expansion, working towards 100 percent connectivity Create partnerships to promote investment in infrastructure to make natural gas more accessible Expand our transportation network into commercial and industrial areas Explore an economic development strategy/ framework in collaboration with the business community and other stakeholders Sustainable Infrastructure Growth Develop an Affordable Housing Policy Develop strategies for infrastructure investments, including employment lands Legacy Projects Clearly articulate our plans for the Courtice waterfront and Port Darlington waterfront Draft Budget 2020 1 15 Pursue a final decision from Atomic Energy of Canada Limited (AECL) and Canadian Nuclear Laboratories (CNL) respecting the disposition of lands for the Port Granby Nature Reserve Develop the concept, financing, project plan and potential construction schedule for the South Bowmanville Recreation Centre Articulate a vision of a Performing Arts space Make a decision on Camp 30 Environmental Sustainability Advance waste reduction initiatives by promoting the four Rs: Refuse, Reduce, Reuse, and Recycle Snapshot of Our Community The Municipality participated in the BMA Management Consulting Inc. Municipal Study — 2019, which compares 110 municipalities in Ontario, representing in excess of 85% of the population. In 2019, there were five Durham Region ClarM#on participants, 22 Greater Toronto Area participants and 34 municipalities with populations over 100,000. Socio -Economic Indicators Socio-economic indicators assist a municipality by providing insight into its ability to generate revenue as compared to the municipality's demand for public services. Socio-economic indicators also allow municipalities to be considered for their appropriateness for comparison. Population Density Population density is an indicator of economies of scale in providing services to residents of the Municipality. In densely populated areas, certain services may be delivered in a more cost-efficient way. The Municipality of Clarington has the fifth lowest population density among the Greater Toronto Area (GTA) municipalities within the survey. With a land area of 611 square kilometres, the Municipality of Clarington is roughly the geographical size as the City of Toronto at 630 square kilometres. However, the Municipality has a population density of 165 people per square kilometre which is 28 times lower than the City of Toronto's 4,631 people per square kilometre. Draft Budget 2020 1 16 Population Density per Square KM 1200 1000 800 600 400 200 0 ■ ■ ■ il 2017 2018 2019 ■ Clarington ■ GTA Average ■ Survey Average Population Growth & Age Demographics The Municipality of Clarington has experienced significant growth since 2011. This growth puts upward movement in our assessment base as more residential, commercial and industrial properties are built to support that population. Growth does put pressure on municipal budgets as it increases the need for infrastructure to support the growth and correspondingly increases the demand for services required by the increasing population. Since 2006, a period of 13 years, the Municipality's population went from 77,820 to an estimated 100,800 in 2019. This represents a growth of approximately 30%. Over ClarM#on the same period population growth within the GTA was approximately 25% while the survey average was only 19%. The Municipality of Clarington has a higher than average youth and working -age population when compared to both the GTA and the Survey. This impacts the types of services that we provide. Draft Budget 2020 1 17 Population Growth 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 110 NEE 0.0% 2006 to 2011 2011 to 2016 2006 to 2019 ■ Clarington ■ GTA Average ■ Survey Average The Municipality of Clarington has a higher than average youth and working -age population when compared to both the GTA and the Survey. This impacts the types of services that we provide. Draft Budget 2020 1 17 Age Demographics 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 0 to 19 20 to 64 65+ ■ Clarington ■ GTA Average ■ Survey Average Average Household Income A factor for the Municipality when determining its budget is ensuring taxes are affordable. An indicator of affordability is comparing the property tax burden with the average household income. While the Municipality has a lower average household income than the rest of the GTA, it is higher than the rest of the Province. The municipal burden as a percentage of household income in Clarington is 4.3%, the GTA average is 4.5%; Clarington is the best ranked Durham municipality in this regard based on the 2019 BMA study. It should be noted that the total burden as a percent ClarW#oa of household income in the City of Toronto which we often hear has lower taxes is the same as in Clarington. Average Household Income $ 140,000 $ 120,000 $ 100,000 $ 80,000 $ 60,000 $ 40,000 $ 20,000 2017 2018 2019 ■ Clarington ■ GTA Average ■ Survey Average Property Assessment Municipalities raise a significant portion of their revenues by charging taxes on each property's assessment, as provided by the Municipal Property Assessment Corporation (MPAC). A strong, growing assessment base makes generating revenue easier for municipalities. A declining assessment base could result in significant tax increases in order to maintain revenues. Weighted assessments take into account the fact that non- residential taxpayers pay taxes as a ratio to the residential Draft Budget 2020 1 18 tax rate. Weighted assessments convert the actual assessment into the equivalent value for a residential assessment. Weighted assessment is impacted by the approved tax ratios; the Region of Durham has the authority to determine the tax ratios for all municipalities within the Region. Clarington has a lower assessment, the base for which property taxes are generated, as compared to both the GTA and the survey average. This is reflective of the assessed values of properties being lower in Clarington than our western neighbours. The GTA municipalities have a higher than average weighted assessment. This is explained in part by the high commercial and industrial assessments in the City of Toronto which pay a significantly higher portion of the property tax burden for that city. $250,000 $200,000 $150,000 $100,000 $50,000 S- Weighted Assessment Per Capita 2017 2018 2019 ■ Clarington ■ GTA Average Survey Average Financial Indicators Financial indicators, along with some socio-economic indicators, combine to provide a foundation for a municipality to evaluate its financial outlook and performance. Sustainability The ability to provide and maintain service and infrastructure levels without resorting to unplanned increases in rates or cuts to services Clarington Draft Budget 2020 1 19 Financial position is the difference between the financial assets (what we own) and liabilities (what we owe). The Municipality has a strong financial position per capita. For the years 2016 to 2018, the Municipality has a higher financial position per capita than both the GTA average as well as the overall survey average. The financial position is also increasing, we own more than we owe, which provides better sustainability. Financial Position per Capita $ 800 $ 700 $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 5- 2016 2017 2018 ■ Clarington ■ GTA Average Survey Average Capital assets are amortized, which is an accounting principle that allocates cost over time, based on its estimated useful life. Cl EWoon The "asset consumption ratio" measures the amortized value of the assets versus the historical costs of the assets. It shows how much of the useful life has been used, a higher ratio may indicate a need for significant investment in assets to maintain service levels. The Municipality of Clarington has a significantly lower tax asset consumption ratio than the survey which indicates that our assets have a lower amortized value. This likely is reflective of newer assets in our inventory as well as the recent growth of the Municipality which results in newer growth -related infrastructure. It should be noted that the trend from 2016 has been an increasing ratio which indicates that assets are being amortized quicker than new assets are being added, this is an indicator of a growing infrastructure gap(deficit). A stable ratio would be indicative of a municipality that is investing in new assets at a rate equal to the use of assets for the year. A decreasing ratio may be indicative of a growing municipality or a municipality which is investing more annually than the annual amortization amount. Draft Budget 2020 1 20 Tax Asset Consumption Ratio 45.0% 44.0% 43.0% 42.0% 41.0% 40.0% 39.0% 38.0% 37.0% 36.0% 2016 2017 ■ Clarington ■ Survey Average Vulnerability 2018 Addresses a municipality's vulnerability to external sources of funding that it cannot control and its exposure to risk. The majority of the revenue that the Municipality of Clarington receives is from property taxes. Every year a portion of ratepayers do not pay their property taxes. This forms the taxes receivable balance. The Municipality has seen a relatively consistent level of taxes receivable as a percent of taxes levied. The ClarW#oa Municipality is significantly lower than the survey average. The Municipality has been successfully collecting on property tax arrears and does not have a collection problem. 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Taxes Receivable as a % of Taxes Levied 2016 2017 2018 ■ Clarington ■ Survey Average The rates coverage ratio provides a measure of a municipality's ability to cover costs through own sources of revenue such as taxation and user fees. The Ontario Ministry of Municipal Affairs (MMAH) indicates a basic target of 40%, an intermediate target of 60% and an advanced target of 90%. The Municipality of Clarington has been in the advanced range (90% or higher) since 2017 and was close to the threshold in 2016. Draft Budget 2020 1 21 The Municipality does not receive operating grants from other levels of governments, other than project specific funding. The Municipality does receive capital funding from senior levels of government. 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% 87.0% 86.0% Flexibility Claringon 11 2016 Rates Coverage Ratio 2017 ■ Clarington ■ Survey Average Ik 2018 The ability to issue debt responsibly without impacting the credit rating. Also, the ability of the Municipality to generate the required revenues. Reserves and Reserve Funds Reserves and reserve funds are important fiscal tools used in long-term planning, internal financing and dealing with unanticipated situations arising in the municipality during the year. Draft Budget 2020 1 22 Tax Discretionary Reserves as % of Own Source Revenues 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2017 2018 2019 ■ Clarington ■ Survey Average Debt It is important to be aware of the level of debt and the resulting debt servicing obligations, to ensure that the reliance on debt is maintained at a manageable level. The use of debt is reasonable for many reasons including intergenerational equity; meaning the taxpayer benefiting from the service is the one paying for it. Cl EWoon ■ Clarington Survey Average The Province of Ontario has regulated that municipalities are limited to debt servicing (interest and principal) costs of 25% of own source revenue. The Municipality is currently well below this threshold at 4.8%, most of which is funded from development charges. Draft Budget 2020 1 23 Tax Debt Outstanding per Capita $600 $500 $400 $300 $200 $100 . 2016 2017 2018 ■ Clarington Survey Average The Province of Ontario has regulated that municipalities are limited to debt servicing (interest and principal) costs of 25% of own source revenue. The Municipality is currently well below this threshold at 4.8%, most of which is funded from development charges. Draft Budget 2020 1 23 Tax Debt Charges as a % of Own Source Revenue 5.0% 4.0% 3.0% 2.0% 0.0% 2017 2018 2' ■ Clarington ■ Survey Average A general benchmark for debt to reserve ratio is 1:1; ideally debt should not exceed the total that is held in reserve and reserve funds. The Municipality's ratio is below 0.2:1 which means that for every $0.20 of debt the Municipality has $1.00 of reserve and reserve funds. This is a healthy ratio and is an indication that the Municipality has available debt capacity for future needs as a percentage of own source revenue. Cl EWoon Debt to Reserve Ratio 1.2 1.0 0.8 0.6 0.4 0.2 . ■ 0.0 2016 2017 2018 ■ Clarington ■ Survey Average Municipal Levy While the public will often compare municipalities' tax levies, it is hard to find a true "apples to apples" comparison as each municipality is different. The net municipal levy per capita is an indicator of the total net levy required to provide services; it is not necessarily an indicator of quality or value for money. The Municipality of Clarington is below both the average levy per capita for the GTA and the survey average. This may indicate that there is room within the tax levy for service enhancements or investment(s) in infrastructure. Draft Budget 2020 1 24 Net Municipal Levy Per Capita Historical Assessment $1,650 2012 to 2020 $1,600 $20,000,000,000 $1,550 $1,500 $15,000,000,000 $1,450 $10,000,000,000 $1,400 $1,350 $5,000,000,000 $1,300 $- 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■ Clarington ■ GTA Average Survey Average Property Assessment A majority of our revenue is derived from property taxation. The assessment of properties is carried out by the Municipal Property Assessment Corporation (MPAC) and is independent of the Municipality. Significant growth of assessment and population has occurred since 2008 with significant growth in the past two assessment cycles (2012 and 2016). The following chart shows the historical and current assessments from 2012 to 2020: ClarlWgon ■ Residential Assessment ■ Non -Residential Assessment The chart demonstrates that most of the Municipality's assessment is through the residential tax class. Draft Budget 2020 1 25 The 2020 tax assessment mix is as follows: 2020 Assessment By Type $16,000,000,000 $14,000,000,000 $12,000,000,000 $10,000,000,000 $8,000,000,000 $6,000,000,000 $4,000,000,000 $2,000,000,000 S- F Cladngoa The 2020 assessment mix of residential, commercial, industrial and other property classes is consistent with the past assessment mix of the Municipality. Summary The Municipality of Clarington is a financially stable, sustainable and flexible organization. The municipal tax levy is below average for the Region of Durham and meets indicators for being at an affordable rate. As the Municipality continues to grow and requires replacement of existing infrastructure, there will be increasing pressures on the tax levy and debt capacity of the Municipality. Draft Budget 2020 1 26 L°�� \tea e The 2020 assessment mix of residential, commercial, industrial and other property classes is consistent with the past assessment mix of the Municipality. Summary The Municipality of Clarington is a financially stable, sustainable and flexible organization. The municipal tax levy is below average for the Region of Durham and meets indicators for being at an affordable rate. As the Municipality continues to grow and requires replacement of existing infrastructure, there will be increasing pressures on the tax levy and debt capacity of the Municipality. Draft Budget 2020 1 26 I G1arington Draft Budget 2020 1 27 Snapshot of 2020 Budget The result of the budget process is much more than a document full of accounts and numbers. The annual budget is the most important policy document for the Municipality, as it is a blueprint for Staff and Council. Each year, as Staff begin to prepare the budget, consideration is given to the different fiscal priorities, the projects that need to be completed, the community's interests and Council's Strategic Plan. The result is a document to guide future transactions, operations and decisions. Clarington's budget consists of two main components, the operating budget and the capital budget. Each section has its own special purpose for guiding staff and Council in their decision making throughout 2020 and into the future. The determination of the change in net levy required from property taxes is a combination of both the operating and capital budgets, including any contributions to and from reserves and reserve funds. Clara OR Net Levy Required The following table shows the net levy required for the 2020 Fiscal Year. The budget increase represents a 1.83% increase in tax levy from the 2019 Budget: Net Levy per Management Reporter BudgetDescription 2020 $ 55,352,318 Adjustments Tax levy support to capital 8,294,354 2018 Lev 59,822,692 Assessment Growth 1,608,600 Items not included in Budget Transfers from Reserve Fund 4,557,169 Transfers from Reserves 51,000 Transfers to Reserve Fund 3,122,200 Transfers to Reserves 747,500 Other adjustments Parking transfer to reserve fund double counted (in transfers and net levy above) (330,000 Extend temporary workers by two months in Operations 42,950 Upgrade part-time Operations Clerk II to full-time 19,600 Planner I I for from Clerk 1 21,000 Planner I contract to full-time, net of existing funding 20,900 Aquatic Programmer for Diane Hamre Recreation Complex 80,800 Part-time Customer Service Programmer 51,400 Draft Budget 2020 1 28 Description 2020 Budget Web redesign previously budgeted for, to be funded from reserve ($19,900) 0 Employee engagement survey previously budgeted for, to be funded from reserve $7,600 0 Remove professional fees from CAO office, included "Items for Consideration" 30,000 Adjust salaries in CAO office to reflect funding from FCM and grid movement 41,800 Adjustments related to Organizational Review Elimination of one director position 219,664 Budget increase $ 1,092,097 Two projects above, the web redesign and employee engagement survey, have been previously approved by Councils; however, the projects have been delayed or deferred for several years. They are included above so Council is aware that these projects will be completed in 2020. The web redesign is to ensure compliance with accessibility legislation and move away from obsolete technology to improve functionality and regional integration. The employee engagement survey will assist with the internal communication recommendation in the Grant Thornton Report. Both projects do not impact the ClarM#on tax levy in 2020 as they have already been levied in prior years and are currently in reserves. Impact on the Ratepayer — Municipal Taxes The Municipality typically discusses the annual change in funding with regards to a tax levy increase, as opposed to a tax rate increase. The tax levy is the amount that the Municipality needs to charge in property taxes to fund its operating and capital needs. The target increase for the 2020 Budget was 2.0%. This target has been met. Notionai i ax Rates A notional tax rate is defined as the rate applied against the current year assessment roll that would otherwise raise the same amount of taxes as the previous year. In situations where assessment is growing, the notional tax rate will be lower than the previous year's levied tax rate. For 2020, the notional tax rates are expected to decrease; however, the amount of the decrease is not known as tax policies (including ratios) have not been set by the Region. Draft Budget 2020 1 29 2020 Tax Levy The average residential property is assessed at approximately $390,700. A 1.0% increase in the tax levy is an average change of approximately $14.64. Please note that this is the average impact, individual properties will differ based on the assessed value of that property. ClarM#on The impact per $100,000 value of assessment is approximately $3.75. For example, if your home is assessed for tax purposes at $400,000, the municipal portion of your tax bill will increase $30 at the Municipality's target of 2.0%. Draft Budget 2020 1 30 Operating Budget The following table summarizes the operating budget by department: 2017 ACTUALS (23,650) 2018 ACTUALSw (74,820) DESCRIPTION �AWi 00 Unassigned 2018 BUDGET $ 0 2019 BUDGET $ 0 2020 BUDGET $ 0 CHANGE $ 0 233,726 2,228,199 03 Financial Statement Purpose 0 0 0 0 (71,562,985) (75,335,996) 05 Non -Dept Accounts (70,248,646) (72,678,606) (8,469,556) 64,209,050 868,774 928,329 10 Mayor & Council 920,932 944,482 823,063 (121,419) 1,872,374 1,973,119 13 Administrator's Office 1,934,693 2,137,416 2,431,470 294,054 234,324 399,670 14 Legal Administration 376,792 383,261 413,791 30,530 4,348,484 4,697,000 16 Corporate Services 4,712,273 4,487,739 4,506,396 18,657 2,466,712 2,966,684 19 Clerk's 3,055,464 2,892,994 2,816,278 (76,716) 8,570,306 8,005,077 21 Finance & Unclassified Administration 3,973,537 4,178,307 3,050,071 (1,128,236) 13,129,494 13,425,731 28 Emergency Services - Fire 12,252,786 12,589,344 12,365,762 (223,582) 17,599,029 18,354,296 32 Engineering Services 6,382,084 6,831,939 3,395,184 (3,436,755) 21,612,339 23,364,397 36 Operations 19,110,901 19,954,158 17,004,182 (2,949,976) 12,068,373 11,640,538 42 Community. Services 9,662,537 9,843,090 9,185,245 (657,845) 3,183,675 3,872,363 50 Planning Services 3,675,736 3,900,439 3,361,305 (539,134) 0 (1) 58 Levies 0 0 0 0 0 0 59 BIA Taxation 0 0 0 0 3,328,475 3,267,044 62 Libraries/Museums 3,261,220 3,332,761 3,515,599 182,838 522,221 498,683 64 Culture 499,491 529,145 219,366 (309,779) 383,800 430,200 66 External Agencies 430,200 673,531 734,162 60,631 $18,835,471 $20,640,513 Total Municipality of Clarington $0 $0 $55,352,318 $55,352,318 Claring on Draft Budget 2020 1 31 Capital Budget The following table summarizes the capital budget per department: Department Corporate Services $ 570,500 External $ 0 $ 0 Reserve $ 152,000 Development .- $ 0 . $ 0 Clerk's 4,500 0 0 35,000 40,500 0 Emergency Services 153,925 0 20,000 63,000 76,000 0 Engineering Services 3,346,536 804,904 200,000 4,669,893 6,064,667 0 Operations 3,110,000 0 175,000 1,682,000 1,278,000 0 Community Services 310,000 0 0 771,000 0 4,200,000 Planning Services 634,717 0 68,979 0 0 0 0- Library Library 164,176 0 0 0 127,589 - 0 Total $ 8,294,354 $ 804,904 $ 463,979 $ 7,372,893 $ 7,586,756 $ 4,200,000 CIff'WOOR Draft Budget 2020 1 32 Items for Council Consideration Each year there are items up for consideration during the budget process which are brought forward by a member of Council or the public. There are also items which staff are looking for Council direction on. In 2019, the Municipality passed the Budget Policy which provided a target range which staff were to use to develop the budget. In September 2019, Council directed a specific target amount of 2.0%. The following list are items, formerly known as the "B list" which are not included in the proposed budget but are highlighted for Council's consideration. 1 Air quality peer review 2 Cedarcrest shoreline study Newcastle Community Park Phase 1: The modular skateboard park is not 5 included in the 2020 budget request. Newtonville Estates Parkette: The Eden Development in Newcastle is underway, however existing residents could benefit 6 from a park they could safely walk to. 7 Roads: Parkway Ave Reconstruction 8 Roads: Flett St Reconstruction Claringon CAO / Climate Change $ 30,000 $ CAO / Climate Change 30,000 Engineering 0 Engineering 0 Engineering 0 Engineering 0 0 0.05% $ 0.73 0 0.05% 0.73 300,000 0.50% 7.34 250,000 0.42% 385,000 0.64% 150,000 0.25% 6.12 9.42 3.67 Draft Budget 2020 1 33 9 Roads: Lambert St Reconstruction Engineering 0 300,000 0.50% 7.34 10 Roads: George St Reconstruction Engineering 0 25,000 0.04% 0.61 Pavement Rehabilitation Program: the scope was reduced due to oversubscription of gas tax funds (next on the list is Pinedale Cr, Durham St 11 and Paynes Cr) Engineering 0 220,000 0.37% 5.38 Bond Head Parkette and bluffs shoreline erosion mitigation: Long-term strategies for beach nourishment and erosion 12 prevention. Operations 61,100 0 0.10% 1.50 Patterson Road bank stabilization: remediation work to correct erosion of 13 the bank on Patterson Road. Operations 0 200,000 0.33% 4.89 New Staffing Requests 14 Four new firefighters Fire 318,400 0 0.53% 7.79 Total $ 439,500 $ 1,830,000 3.93% $ 55.54 Not identified above are ongoing operating expenses which were not increased in 2020 despite increases in the cost to provide these services. The result will be a decrease in service resulting from the lost purchasing power. For example, the price of culverts increased significantly in 2019 and 2020 whereas the budget has remained the same; therefore, the Municipality will be able to purchase fewer culverts for the same budgetary limit resulting in certain work being deferred. CIarW#oa Draft Budget 2020 1 34 - 1 6ryiNp 0�ENIN GRAN Mayor a R � i Council WWF � �iW, � • p � � �`' '� t---: �:< ��. _ -n: ,,� � �� ..� i C04 141001 Am- 69L �• ! � ■. F it -- ♦=' � �� What Do Mayor and Councillors Do? The Municipal Act, 2001 defines the responsibilities of the Mayor and Council. Our Council membership includes an elected Mayor, two elected Regional Councillors and four elected Local Councillors. The Mayor holds dual roles as the Head of Council and the Chief Executive Officer of the Municipality. As the Head of Council, the Mayor presides over Council meetings so that its business can be carried out efficiently and effectively; provides information and recommendations to Council with respect to the role of Council; and represents the Municipality at official ClarWon functions. As the Chief Executive Officer, the Mayor upholds and promotes the purposes of the Municipality and fosters public interest and involvement in the Municipality and its activities. The Mayor is one of three representatives of Clarington to the Regional Municipality of Durham (the "Region") Council. Regional Councillors have a number of responsibilities as elected officials. Regional Councillors participate on Regional Council and Committees to make decisions for the Region. Local Councillors have similar responsibilities as Regional Councillors however do not represent the Municipality at the Region. Local Councillors may sit on several local committees as Council representatives. Draft Budget 2020 1 36 Mayor and Council Operating Budget Budget Summary 211111 21116 21; 16 Z11b 12t ACTUALS ACTUALS DESCRIPTION BUDGET BUDGET BUDGET CHANGE 100 Mayor Expenditures $377,518 $382,998 Salaries, Wages & Benefits $372,731 $381,673 $250,702 ($130,971) $45,925 $50,163 Materials & Supplies $61,568 $60,867 $61,867 $1,000 $2,071 Transfers from Res / RF / Cap Fund 105 Council Expenditures $391,427 $436,019 Salaries, Wages & Benefits $421,438 $439,027 $433,124 ($5,903) $6,809 $7,061 Materials & Supplies $12,350 $13,070 $9,070 ($4,000) 106 Ward Council Expenditures $27,174 $32,685 Materials & Supplies $34,788 $33,288 $42,800 $9,512 107 Regional Council Expenditures $17,850 $19,403 Materials & Supplies $18,057 $16,557 $25,500 $8,943 $868,774 $928,329 Total 10 Mayor & Council $920,932 $944,482 $823,063 ($121,419) CIff1woon Draft Budget 2020 1 37 Budget Highlights The following items highlight the 2020 budget submission for Mayor and Council: Mayor's Office Staff complement reduced by one in the Mayor's Office offset by cost of living increase and benefit increases - $130,971 Materials and supplies increased as a result of nominal changes to office supplies, phone/fax books/subscriptions and reception to reflect 2020 expected needs - $1,000 Council Office supplies combined with Office of the CAO and reduced to $3,000 to reflect efficiencies and savings of consolidating offices - $4,000 Clara OR Ward Councillors Conference expenses, which can be used for courses and other training, were increased to bring all members of Council in line with each other - $1,500 Travel allowance was increased to match the existing compensation by-law - $8,012 Regional Councillors Conference expenses, which can be used for courses and other training, were increased to bring all members of Council in line with each other - $1,500 Travel allowance was increased to match the existing compensation by-law - $7,443 Draft Budget 2020 1 38 a Administration What Does Administration Do? The Chief Administrative Officer (CAO) is appointed by Council to oversee the administration of the corporation. One of the main roles of the CAO is to ensure that Council's decisions are carried out and to advise Council on policy and programs. The CAO is responsible for establishing administrative policies and procedures and overseeing the management of Municipal staff ensuring the organization is run in an efficient and effective manner. Clara OR The CAO assists Council in developing their strategic plan that sets out Council priorities for its four-year term. This plan is a compilation of goals that Members of Council want to achieve while in Office. The CAO currently oversees the Communications and Tourism division. The priority of the Communications team is to inform and engage the community, striving to ensure that residents know what's going on in the Municipality and in their Government. They maintain the Municipal website, Twitter, Facebook and YouTube accounts and work hard to promote Clarington as a tourism destination. Draft Budget 2020 1 40 Administration Operating Budget Budget Summary ClarM#on Draft Budget 2020 1 41 000 Unassigned Expenditures $330,000 $339,900 Materials & Supplies $339,900 $356,097 $366,600 $10,503 130 Admin Revenue ($12,718) ($2,730) User Charges ($2,000) Expenditures $408,618 $436,778 Salaries, Wages & Benefits $404,327 $529,550 $567,904 $38,354 $42,720 $61,092 Materials & Supplies $54,700 $58,700 $59,700 $1,000 $60,236 $41,115 Contracted Services $70,000 $70,000 $60,000 ($10,000) $51,090 $60,800 Transfers from Res / RF / Cap Fund 140 Internal Audit Expenditures Salaries, Wages & Benefits $151,831 $151,831 Materials & Supplies $300 $300 Contracted Services $40,000 $40,000 170 Communications Revenue ($44,535) ($43,559) User Charges ($65,000) ($45,000) ($45,000) Expenditures $580,417 $583,200 Salaries, Wages & Benefits $593,957 $623,888 $645,631 $21,743 $135,617 $140,277 Materials & Supplies $123,400 $128,900 $124,400 ($4,500) $88,555 $90,071 Contracted Services $100,820 $108,225 $102,725 ($5,500) 171 Tourism Revenue ClarM#on Draft Budget 2020 1 41 2017 20181 1' 2020 ACTUALS ACTUALS DESCRIPTION BUDGET BUDGET BUDGET CHANGE ($31,086) ($30,940) User Charges ($15,000) ($30,500) $30,500 Expenditures $164,236 $199,064 Salaries, Wages & Benefits $205,392 $212,691 $244,544 $31,853 $78,434 $77,145 Materials & Supplies $79,700 $80,230 $80,750 $520 $32,429 $33,411 Contracted Services $44,497 $44,635 $32,085 ($12,550) 385 Environmental Revenue ($163,754) ($102,145) User Charges ($83,500) ($83,500) ($83,500) Expenditures $54,019 $208 Materials & Supplies $3,500 $3,500 $3,500 $98,096 $89,432 Contracted Services $80,000 $80,000 $80,000 $1,872,374 $1,973,119 Total 13 Administrator's Office $1,934,693 $2,137,416 $2,431,470 $294,054 Budget Highlights The following items highlight the 2020 budget submission for Administration: Unassigned Contracted services with the Clarington Board of Trade increased 3.0% per existing contract - $10,500 Admin Travel expenses for climate change team and corporate policy analyst increased to reflect need to attend meetings - $1,000 Professional fees of $40,000 related to service delivery reviews transferred to Internal Audit. ClarM#on Draft Budget 2020 1 42 Internal Audit x This is a new sub -department established to put a greater focus on internal audit function. Costs were transferred from Finance and CAO - $40,000 ± Communications x Advertising expenses reduced due to reflect anticipated demand for print advertising - $4,500 3 x Design costs related to software decreased to reflect anticipated needs in 2020 - $5,500 3 Claringon Tourism x Advertising revenue related to the visitor's guide removed - $30,500 3 x Various expense accounts such as utilities and travel expenses increased to reflect anticipated usage in 2020 - $520 ± x Contracted services decreased as a result of commission expense and printing costs eliminated as a result of the discontinuation of the visitor's guide ($13,750) This is offset by design costs increased $1,200 to reflect increase in service agreement for software - $12,550 3 Draft Budget 2020 1 43 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 44 Clarington Draft Budget 2020 1 45 What Does Legal Services Do? Legal Services is responsible for providing legal advice and support to Council, municipal staff and the CAO. The Municipal Solicitor provides professional advice on a variety of matters including planning and development, commercial issues, corporate matters, privacy, freedom of information, municipal elections and municipal by-laws. Legal Services is also responsible for providing transactional real estate services for the Municipality. The Solicitor provides legal representation for the Municipality before all levels of court, administrative boards and tribunals. Legal Services Operating Budget Budget Summary Clara OR Draft Budget 2020 1 46 Budget Highlights The following items highlight the 2020 budget submission for Legal Services: Decrease in user charges relates to a reduction in planning agreement fee revenue due to declining demand for these reviews - $12,000 Claringma Materials and supplies increased resulting from a $5,000 increase in conveyance expenses to reflect increasing demand for title searches and property searches. This is offset by a reduction in memberships and association dues of $2,150 - $2,850 Draft Budget 2020 1 47 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 48 1 r kmk"-, r:"� k-�Il dA�L Or G1arington Draft Budget 2020 1 49 What Does Corporate Services Do? Corporate Services provides administrative support to all municipal departments. They oversee Human Resources, Information Management (IT) and the Purchasing Divisions. Human resources is responsible for recruiting and on - boarding staff and negotiating contracts. In Clarington, the key to our success lies with our staff. Information Management Division (IT) supports our day- to-day operations and ensures programs, systems and ClarM#on devices that help the Municipality service our community are up to date. Purchasing Division is responsible for purchasing required supplies, vehicles, equipment, products, services, rentals, consulting, construction, renovations, and printing services. Strict rules and procedures are followed to ensure that all business conducted with the Municipality is done in a fair and transparent manner. In addition, the Purchasing Division handles building construction and renovations, park development contracts, sale of obsolete and salvage materials and road construction. Draft Budget 2020 1 50 Corporate Services Operating Budget Budget Summary ClarM#on Draft Budget 2020 1 51 130 Admin Revenue ($137,263) ($255,577) User Charges ($8,000) ($12,000) ($12,000) Expenditures $224,580 $274,498 Materials & Supplies $210,400 $217,400 $224,850 $7,450 $753 $1,428 Transfers from Res / RF / Cap Fund 160 HR/Payroll Expenditures $1,501,033 $1,631,071 Salaries, Wages & Benefits $1,489,350 $1,515,107 $1,542,249 $27,142 $7,488 $6,656 Materials & Supplies $6,525 $6,960 $6,600 ($360) $201,655 $86,728 Contracted Services $126,000 $96,000 $81,500 ($14,500) $100,571 $111,683 Rents/Financial Expenses $116,500 $127,000 $130,000 $3,000 $2,789 $39,850 Transfers from Res / RF / Cap Fund 1621T Expenditures $1,067,079 $1,260,161 Salaries, Wages & Benefits $1,269,330 $1,309,848 $1,417,707 $107,859 $5,904 $6,427 Materials & Supplies $4,500 $4,000 $5,000 $1,000 $39,434 $29,300 Contracted Services $50,000 $52,000 $15,000 ($37,000) $383,440 $536,329 Transfers from Res / RF / Cap Fund $400,000 $110,000 ($110,000) $320,170 $347,398 Reclass: CF (Non -TCA) to GF $434,500 $430,000 $437,500 $7,500 163 Purchasing Expenditures $603,105 $597,806 Salaries, Wages & Benefits $591,793 $611,999 $632,025 $20,026 ClarM#on Draft Budget 2020 1 51 Budget Highlights The following items highlight the 2020 budget submission for Corporate Services: Administration Materials and supplies increased to reflect corporate phone, fax, postage and courier increase of $12,450. This is offset by a reduction of $5,000 in other capital for reduced use of corporate photocopiers - $7,450 ClarM#on Human Resources / Payroll Materials and supplies decreased from nominal changes in books, memberships and small equipment. Miscellaneous operating increased to reflect needs - $360 Contracted services decreased resulting from legal and consulting fees reduction of $15,000 to reflect anticipated 2020 needs. Other professional fees increased $500 to reflect needs - $14,500 Rents and financial expenses increased for bank service charges to reflect increase in costs - $3,000 Draft Budget 2020 1 52 IT x Materials and supplies increased for nominal changes in travel and office repair expense accounts increased to reflect recent actuals - $1,000 ± x Consulting fees for cyber risk reduced and reallocated to student wages to implement IT security internship program rather than hire outside consultants. Further nominal decrease in data supplies equipment contracts - $37,000 3 x Software maintenance expense increased due to reflect more "cloud" services. Cloud software reduces upfront costs but increases annual subscription costs - $7,500 ± Claringon Purchasing x Decrease in materials and supplies resulting from nominal changes in postage and membership - $760 3 Health and Safety x Materials and supplies increased from nominal changes in miscellaneous operating supplies, presentations, memberships and travel. A specific budget for mental health related training has been established in this department for corporate wide mental health initiatives - $7,300 ± Draft Budget 2020 1 53 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 54 NO W�l 14 d-��r�va1 S4;ty esPVII � , t`T�a rceca��rise�a l.ri1� nti..,, � G i tri steric n � rriflS .it: r1 y, `i„� Clarington Draft Budget 2020 1 55 What Does Municipal Clerk's Do? The Municipal Clerk's Department is responsible for providing legislative services to Council and the public. These legislative services include the planning and conducting of the municipal elections, responsibility for maintaining official records and managing information for the Corporation and the protection of privacy. They also provide secretariat services for Council and committees including meeting management, agenda preparation and the publishing of meeting minutes. ClarM#on The Clerk's Department is also responsible for many public services including municipal law enforcement, business and lottery licensing, animal shelter services, administration services for Municipally owned cemeteries, issuing of marriage licenses, registering deaths, providing commissioner of oath services, performing civil marriage ceremonies, management of the internal printshop/ mailroom and processing requests for information. The Clerk's Department ensures that the Municipality is fully accessible to all residents including people with disabilities. Draft Budget 2020 1 56 Clerk's Department Operating Budget Budget Summary $13,975 $31,174 $23,495 ($133,507) ($115,140) $1,045,385 $95,415 $4,664 $34,146 $1,173,665 $101,138 $7,274 $97,252 000 Unassigned Revenue User Charges Expenditures Materials & Supplies 090 PSAB Expenditures Amortization Expense 130 Admin Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Transfers from Res / RF / Cap Fund 190 Animal Serv. Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Transfers from Res / RF / Cap Fund ($200) ($200) ($200) $6,000 ($126,800) ($122,800) $1,084,391 $1,133,314 $157,940 $91,390 $4,500 $10,500 $21,500 $15,000 ($77,800) ($77,800) $566,379 $71,601 $50,000 $7,000 $511,095 $67,665 $51,000 $7,000 ($118,800) ($67,819) ($110,668) $30,430 $595,557 $560,128 $10,800 $57,025 $52,615 $41,935 $53,815 $11,719 $16,061 Cladn#on 000 Unassigned Revenue User Charges Expenditures Materials & Supplies 090 PSAB Expenditures Amortization Expense 130 Admin Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Transfers from Res / RF / Cap Fund 190 Animal Serv. Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Transfers from Res / RF / Cap Fund ($200) ($200) ($200) $6,000 ($126,800) ($122,800) $1,084,391 $1,133,314 $157,940 $91,390 $4,500 $10,500 $21,500 $15,000 ($77,800) ($77,800) $566,379 $71,601 $50,000 $7,000 $511,095 $67,665 $51,000 $7,000 ($118,800) $4,000 $1,163,744 $30,430 $93,910 $2,520 $10,800 $300 $15,000 ($87,800) ($10,000) $433,420 $65,825 $55,000 $7,000 ($77,675) ($1,840) $4,000 Draft Budget 2020 1 57 ClarW#on Draft Budget 2020 1 58 191 Municipal Law Enforcement Revenue ($18,772) ($56,718) User Charges ($13,000) ($13,000) ($28,000) ($15,000) ($28,120) ($25,895) Fines/Penalties on Interest ($25,000) ($25,000) ($25,000) Expenditures $502,056 $500,480 Salaries, Wages & Benefits $707,347 $727,126 $739,827 $12,701 $15,009 $33,937 Materials & Supplies $40,684 $32,422 $33,700 $1,278 $34,715 $74,935 Contracted Services $40,700 $43,100 $54,100 $11,000 $14,500 Transfers from Res / RF / Cap Fund 192 Parking Enforcement Revenue ($108,661) ($132,719) User Charges ($80,000) ($80,000) ($80,000) ($276,594) ($298,641) Fines/Penalties on Interest ($200,000) ($200,000) ($250,000) ($50,000) Expenditures $247,899 $287,689 Salaries, Wages & Benefits $236,228 $402,992 $409,462 $6,470 $31,907 $32,579 Materials & Supplies $26,840 $26,840 $24,840 ($2,000) $8,443 $7,097 Contracted Services $10,000 $10,000 $10,000 $9,295 Rents/Financial Expenses $5,000 $5,000 $10,000 $5,000 $385,255 $431,360 Transfers from Res / RF / Cap Fund $280,000 $280,000 $330,000 $50,000 193 Election Revenue ($1,300) User Charges Expenditures $133,206 Salaries, Wages & Benefits $122,992 $83,033 Materials & Supplies $78,096 $3,200 ($3,200) $3,053 $140,823 Contracted Services $150,006 $3,500 $69,000 $65,500 $13,716 Rents/Financial Expenses $10,410 $100,000 $35,000 Transfers from Res / RF / Cap Fund $35,000 $125,000 $125,000 ClarW#on Draft Budget 2020 1 58 2017 20181 1' 2020 ACTUALS ACTUALS DESCRIPTION BUDGET BUDGET BUDGET CHANGE 230 Grants Revenue ($15,986) ($17,338) Grants ($22,000) ($22,000) ($22,000) 326 Cemetery Revenue ($185,645) ($170,195) User Charges ($140,100) ($140,100) ($258,100) ($118,000) Expenditures $1,062 Materials & Supplies $1,800 $1,800 $1,800 388 Fleet Expenditures $26,922 $26,705 Materials & Supplies $25,950 $25,950 $33,750 $7,800 $2,466,712 $2,966,684 Total 19 Clerk's $3,055,464 $2,892,994 $2,816,278 ($76,716) Budget Highlights Clerk's (Administration) Revenue decreased as a result of miscellaneous revenue of $5,000 being reallocated to Municipal Law Enforcement. This was offset by an increase in Clerk miscellaneous revenue increased by $1,000 to reflect actual trend - $4,000 Materials and supplies have increased as a result of nominal changes to various accounts such as office supplies, operating supplies, phone, travel, corporate shredding, livestock losses and accessibility committee expenses. These changes reflect anticipated need in 2020 based on historical trends - $2,520 Contracted services increased for printing expenses to reflect actuals - $300 Clar #on Draft Budget 2020 1 59 Animal Services x Increased dog and cat licensing revenues to better reflect actuals - $10,000 ± x Materials and supplies decreased as a result of changes to utilities, phones, postage and memberships - $1,840 3 x Contracted services increased as a result of anticipated commission increases for dog and cat licenses - $4,000 ± Municipal Law Enforcement x Revenues increased due to increases in snow fees recoverable revenue and miscellaneous revenue (previously in Admin). - the related expense to reflect actual trend - $15,000 ± x Materials and supplies increased as a result in nominal changes in several accounts including utilities, phone, postage and other small capital (desk and chair replacement) - $1,278 ± Claringon x Contracted services increased correspondingly with the increase in revenue from snow removal fees recoverable reflecting historical trends in needs - $11,000 ± Parking Enforcement x Increased revenues from fines to reflect trend in actuals — $50,000 ± x Phone expenses decreased to reflect the contract change - $2,000 3 x Bank charges related to online payment of parking tickets increased to reflect actuals - $5,000 ± Draft Budget 2020 1 60 Elections x Decreased miscellaneous expenses to reflect completion of compliance audit work in 2019 for the 2018 election - $3,200 3 x Contracted services increase includes the ward boundary review, the cost of the project is $65,000 of which $50,000 will be funded from reserves and the remainder from the levy. There is also a minor increase in the contract for data supplies - $65,500 ± Claringon Cemeteries x Increase in cemetery revenue includes plot sales of $18,000 at Orono which prior to 2019 were not a municipal responsibility. New revenues of $100,000 are estimated for the sale of niches at the Hampton Cemetery - $118,000 ± Fleet x Fuel, repairs and maintenance costs increased to accommodate the addition to the fleet - $7,800 ± Draft Budget 2020 1 61 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 62 -I G1arington Draft Budget 2020 1 63 What Does f=inance Do? The Finance Department is responsible for the Municipality's overall financial activities. It is responsible for all accounting services and provides financial advice to Council and other departments. The Finance Department develops Municipal budgets, collects taxes, and manages the Corporation's financial assets. The Finance Department also oversees and processes insurance claims against the Municipality. The Manager of Internal Audit reports to the Director of Finance as well as the CAO. The Finance Department budget includes: x Financial services to the organization; x Legal and professional fees related to tax assessment appeals and tax sales; and Provision of tax bills and collection of arrears. The Unclassified Administration budget includes: External audit and accounting services; Municipal insurance; Tax write-offs; Corporate banking charges; and Municipal corporate memberships (e.g. Association of Municipalities of Ontario). Glr]rM#on Draft Budget 2020 1 64 Finance and Unclassified Administration Operating Budget ClarW#on Draft Budget 2020 1 65 000 Unassigned Revenue ($11,462) ($15,056) Fines/Penalties on Interest ($12,000) ($12,000) ($13,000) ($1,000) 090 PSAB Expenditures $821,548 $817,433 Amortization Expense 130 Admin Revenue ($292,919) ($323,679) User Charges ($290,000) ($178,000) ($178,000) ($1,209,919) ($1,274,793) Fines/Penalties on Interest ($1,200,000) ($1,200,000) ($1,250,000) ($50,000) 210 Finance Administration Expenditures $2,301,466 $2,338,346 Salaries, Wages & Benefits $2,457,575 $2,530,750 $2,411,937 ($118,813) $89,452 $134,297 Materials & Supplies $110,525 $113,525 $106,400 ($7,125) $21,950 $81,920 Contracted Services $48,800 $51,000 $49,000 ($2,000) $588 Transfers from Res / RF / Cap Fund 211 Unclassified Administration Revenue ($1,144,519) ($419,294) User Charges Expenditures $563,788 $452,419 Materials & Supplies $406,247 $413,134 $433,134 $20,000 $1,346,581 $1,235,785 Contracted Services $1,255,600 $1,355,500 $1,285,600 ($69,900) $395,719 $174,282 Rents/Financial Expenses $340,650 $239,398 $205,000 ($34,398) ClarW#on Draft Budget 2020 1 65 Budget Highlights The following items highlight the 2020 budget submission for Finance: Fines revenue increased to reflect actuals of revenues from late payments - $51,000 Wages are reflective of the Internal Auditor being moved to a separate sub -department under the CAO offset by wage increases in the department - $118,813 Materials and supplies have decreased from nominal changes in various accounts including office supplies, phone, memberships and travel expenses to better reflect actuals and anticipated savings - $7,125 Claringon Printing expenses reduced to reflect change in contracted price - $2,000 Draft Budget 2020 1 66 The following items highlight the 2020 budget submission for Unclassified Administration: Materials and supplies have increased as a result of increases to staff development for all departments to reflect increased costs of training. This is a corporate pool. Small equipment purchases and reception expenses have nominal offsetting changes - $20,000 Contracted services have decreased as a result of professional fees budgeted for in 2019 studies of $99,900 do not need to be budgeted again in 2020 Cl #on (Development Charges Study and the triennial actuarial study for employee future benefits). An increase of $30,000 for corporate insurance has been included in anticipation of premiums - $69,900 Rents and financial expenses have decreased to reflect reduced bank fees Bank fees where related to specific departments are charged in the department - $34,398 Draft Budget 2020 1 67 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 68 Emergency and Fire Services [A oo 4 What Does Emergency and Fire Services Do? Clarington Emergency and Fire Services are an integral part of the community. First responders provide an essential service protecting and helping residents. Fire crews are also out in the community helping to educate residents about safety and fire prevention. Fire Prevention is responsible for a variety of function with one goal in mind: creating a fire -safe community. These functions are implemented through public education programs and fire inspections. Clarington strives to educate the public about fire safety through various education programs, hall tours and community events as well as provide safety lectures and fire safety training to families, community groups, schools, clubs and businesses throughout the municipality. ClarM#on Fire Suppression firefighters respond to a variety of different situations: medical calls, motor vehicle accidents, check calls, fire calls, specialized rescue calls such as water and ice rescues, rope rescue situations and others. To complete these tasks Fire Services has a variety of tools such as extrication tools (i.e. the Jaws of Life), defibrillators, specialized saws, rope equipment and fans. All this equipment assists in providing an affective response in suppression. Maintenance Division provides Self -Contained Breathing Apparatus (SCBA) fit testing, repairs and maintains the SCBA and other personal protective equipment used by the department. Fire Services maintains a large fleet comprised of eight front line pumpers, two aerial devices, five tankers, one rescue, one All -Terrain Vehicle (ATV) with trailer and one rehab trailer along with several prevention, training and administration vehicles. Draft Budget 2020 1 70 Fire and Emergency Services Operating Budget Budget Summary 090 PSAB ($55,000) 1 ($55,000) $883,985 $915,386 Expenditures $913,180 $942,480 Amortization Expense $509,750 $596,500 130 Admin ($596,500) ($45,000) Revenue ($224,984) ($233,939) User Charges Expenditures $954,146 $926,567 Salaries, Wages & Benefits $221,744 $198,574 Materials & Supplies $10,000 $10,000 External Transfers to Others $777,787 $736,845 Transfers from Res / RF / Cap Fund 280 Fire Prevention Revenue ($41,574) ($44,352) User Charges Expenditures $701,699 $730,649 Salaries, Wages & Benefits $35,228 $33,006 Materials & Supplies Contracted Services 281 Fire Suppression Expenditures $7,609,209 $7,764,774 Salaries, Wages & Benefits $59,465 $65,288 Materials & Supplies $59,860 $75,519 Contracted Services 282 Fire Train/Technical Support. ($55,000) 1 ($55,000) $883,985 $915,386 $217,712 $232,700 $10,000 $10,000 $509,750 $596,500 ($45,000) 1 ($45,000) ($105,000) ($50,000) $940,149 $24,763 $239,650 $6,950 $10,000 $650 $92,700 ($596,500) ($45,000) $711,988 $743,690 $735,643 $43,500 $46,500 $46,500 $650 $650 $92,700 $7,795,077 $7,931,366 $8,152,386 $87,500 $92,500 $92,500 $65,000 $65,000 $70,000 ($8,047) $92,050 $221,020 $5,000 Clam#on Draft Budget 2020 1 71 2017 2018DESCRIPTION 1 1• 2020 CHANGE ACTUALS ACTUALS BUDGET BUDGET BUDGET Expenditures $189,194 $420,281 Salaries, Wages & Benefits $335,100 $344,524 $350,680 $6,156 $4,803 $5,809 Materials & Supplies $6,000 $6,000 $6,500 $500 283 Fire Communication Expenditures $563,396 $567,343 Contracted Services $577,500 $585,000 $587,000 $2,000 284 Fire Mechanical Expenditures $105,331 $112,845 Materials & Supplies $115,000 $120,000 $120,000 285 All Stations - P/T Administration Expenditures $904,162 $926,687 Salaries, Wages & Benefits $793,123 $792,750 $867,380 $74,630 $32,188 $33,005 Materials & Supplies $42,250 $45,250 $45,700 $450 $2,646 $4,851 Contracted Services $6,500 $6,500 $6,500 286 Municipal Emergency Measures Revenue ($5,000) ($10,000) User Charges ($10,000) ($10,000) ($10,000) Expenditures $34,067 $27,265 Materials & Supplies $26,200 $26,950 $26,950 $68,108 Contracted Services $5,000 $5,000 ($5,000) 287 Mechanical Technical Support Expenditures $154,839 $132,234 Salaries, Wages & Benefits $130,951 $133,078 $135,524 $2,446 $13,129,494 $13,425,731 Total 28 Emergency Services - Fire $12,252,786 $12,589,344 $12,365,762 ($223,582) ClarW#on Draft Budget 2020 1 72 Budget Highlights Administration Revenues related to fire calls increased to reflect history of recovery third parties. This mainly relates to MTO calls and historically has been contributed to a reserve fund. - $50,000 Materials and supplies have increased as a result of changes requiring medical licensing, increased participating at public events and utilities. -$6,950 Fire Prevention Consulting costs increased to complete the Fire Masterplan which is funded from the development charge reserve fund - $92,050 Fire Suppression Contracted services have increased due to annual maintenance costs related to tablet command in three full time trucks - $5,000 ClarM#on Training and Technician Supplies Increase in miscellaneous supplies to reflect actual needs - $500 Fire Communication Contract expenses related to the dispatch service agreement with the City of Oshawa increased - $2,000 All Stations Part Time (Volunteers) Part-time firefighter expenses increased for Station #1 and Station #2 to reflect recent trend in call volume - $74,630 Materials and supplies increased due to nominal change in lighting supplies increased to reflect anticipated needs for replacements - $450 Municipal Emergency Measures Decreased OPG contract resulting from the rapid notification system being funded and purchased directly by OPG - $5,000 Draft Budget 2020 1 73 Page Intentionally Left Blank ClarM#on Draft Budget 2020 1 74 Ll G1arington Draft Budget 2020 1 75 What Does Engineering Services Do? Engineering and Building Services Department is responsible for major capital and road reconstruction projects, the development and design of parks and trails as well as oversee Clarington's transportation network looking at traffic flow on municipal roads, streets and sidewalks. They also review and place traffic control signals where needed to ensure pedestrian and commuter safety. The department issues building permits, conducts inspections and services and reviews subdivisions. The department fields a variety of questions from the public and makes staff available to provide information on private and public construction projects. Engineering Services Operating Budget Budget Summary 000 Unassigned Revenue ($607) ($1,171) User Charges ($500) ($500) ($500) 090 PSAB Expenditures $12,140,048 $12,766,854 Amortization Expense 130 Administration Revenue ($1,087,975) ($892,737) User Charges ($50,500) ($50,500) ($50,500) Expenditures Glr]rm#oil Draft Budget 2020 1 76 $2,205,696 $230,764 $226,902 $534,407 $4,089,810 ($2,630,293) $1,174,208 $94,410 $45,749 $469,768 $100,000 $1,730 Cl #on $2,171,568 $41,404 $160,622 $538,773 $4,095,394 ($3,242,724) $1,290,655 $95,493 $147,077 $992,103 $90,000 $2,749 $712 $13,284 Salaries, Wages & Benefits Materials & Supplies Contracted Services Debt Services (Principle and Interest Paid) Transfers from Res / RF / Cap Fund 321 Building Inspection Revenue User Charges Fines/Penalties on Interest Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Transfers from Res / RF / Cap Fund 324 Street Lighting Expenditures Transfers from Res / RF / Cap Fund 325 Parks Expenditures Materials & Supplies Contracted Services 327 Parking Lots Expenditures Debt Services (Principle and Interest Paid) 330 Roads & Structures Expenditures Contracted Services $2,257,452 $63,400 $268,325 $538,773 $3,265,106 ($1,554,032) ($500) $1,246,024 $104,436 $69,500 $90,000 $500 $15,000 $2,376,655 $53,550 $250,250 $541,802 $3,458,989 ($1,554,032) ($500) $1,305,005 $100,620 $145,000 $100,000 $500 $15,000 $21,000 $2,513,421 $53,950 $150,250 $544,417 ($1,554,032) ($500) $1,329,648 $102,930 $199,000 $500 $10,000 $21,000 $136,766 $400 ($100,000) $2,615 ($3,458,989) $24,643 $2,310 $54,000 ($100,000) ($5,000) Draft Budget 2020 1 77 2017 2018DESCRIPTION 1 1• 2020 CHANGE ACTUALS ACTUALS BUDGET BUDGET BUDGET 334 Safe Roads Expenditures $10,299 Materials & Supplies $13,500 $13,500 $13,500 $60,954 Contracted Services $50,000 $50,000 $50,000 380 Road Maintenance Expenditures $1,385 $7,694 Contracted Services $6,500 $6,500 388 Fleet Expenditures $3,027 $5,293 Materials & Supplies $5,600 $5,600 $5,600 $17,599,029 $18,354,296 Total 32 Engineering Services $6,382,084 $6,831,939 $3,395,184 ($3,436,755) Budget Highlights Administration Materials and supplies increased slightly due to nominal changes in the following accounts office supplies, phones, and membership and association expenses - $400 Contracted services have been decreased as a result of less reliance on external design and no planned 2020 studies - $100,000 Debt servicing increased to reflect actual 2020 costs - $2,615 Building Inspection (not levy supported) Materials and supplies have increased due to nominal changes in office supplies, phone, memberships and furniture and fixtures (planned chair replacements) - $2,310 ClarW#on Draft Budget 2020 1 78 x Contracted services increased to reflect a $55,000 cost of digitization of existing building records into a digital format. This is offset by a reduction in consulting fees of $1,000- $54,000 ± Parks x Consulting expenses related to park development reduced to anticipated needs in 2020 based on historical trend of usage - $5,000 3 Claringon Road Maintenance x Contracted services for curb cuts added to the budget as we are now contracting this service out, budget in past was included in Operations. - $6,500 ± Draft Budget 2020 1 79 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 80 Operations K)f 11 4�� ` •'' iii - What Does Operations Do? The Operations Department is responsible for the provision of services from 4 distinct sections being Roads, Parks, Fleet Services and Buildings/Properties Roads is responsible for a large network of urban and rural road rights -of -ways. Maintenance services include pothole repair, grading, bridges, signs, sweeping, ditches, culverts, sidewalks, walkways, storm sewers, rural road resurfacing, guidepost repairs, weed spraying and pavement markings. Winter control operations also represent a major role of the section by providing timely, efficient and cost-effective services for patrol, road plowing and snow removal. Parks is responsible for the maintenance of all open space areas, sports fields, trails, streetscape, forestry, horticulture, litter, beaches, playgrounds, splash pads and skate parks. The Parks section also has the ClarM#on responsibility for the operation of active cemeteries and the set-up, grass cutting, sport field permitting and support of municipally sponsored special events. Fleet is an internal service provider with the core responsibilities of acquiring, maintaining, regulating and disposing of vehicles and equipment utilized for the delivery of municipal services. The Fleet division performs on-going maintenance to a wide variety of equipment ranging between string trimmers to passenger vehicles, ice resurfacers, snowplows and firefighting apparatus. Buildings and Properties is an internal service provider responsible for the operation, maintenance, upkeep and capital improvement of municipal spaces that include the Municipal Administrative Center, Operations Depots, Community buildings, Museum, Fire Halls and various other building envelopes. Building Services is also responsible for facilitating the defibrillator program for all our community buildings. Draft Budget 2020 1 82 Operations Department Operating Budget Budget Summary Clam#on Draft Budget 2020 1 83 000 Unassigned Revenue ($210,752) ($216,498) User Charges ($215,000) ($221,000) ($208,800) $12,200 Expenditures $335 $1,106 Salaries, Wages & Benefits $3,000 $3,000 $3,000 $108,974 $115,781 Materials & Supplies $135,657 $184,666 $107,400 ($77,266) $9,920 $30,962 Contracted Services $3,000 $3,000 $3,000 090 PSAB Expenditures $3,029,828 $3,218,421 Amortization Expense 130 Administration Revenue ($367,790) ($281,499) User Charges ($171,123) ($146,000) ($125,000) $21,000 Expenditures $2,215,334 $2,210,781 Salaries, Wages & Benefits $2,281,187 $2,611,991 $2,509,309 ($102,682) $95,162 $87,540 Materials & Supplies $84,368 $84,768 $74,700 ($10,068) $5,030 Contracted Services $11,000 $11,000 $11,000 $2,325,024 $2,965,648 Transfers from Res / RF / Cap Fund $2,109,000 $2,265,000 ($2,265,000) 324 Street Lighting Revenue ($48,220) ($12,880) User Charges ($15,000) ($15,000) ($15,000) Expenditures $974,688 $908,829 Materials & Supplies $1,070,000 $1,050,000 $1,100,000 $50,000 $336,004 $439,278 Contracted Services $290,000 $315,000 $400,000 $85,000 Clam#on Draft Budget 2020 1 83 $904,469 $443,457 $629,844 $17,860 $43,220 ($135,598) $164,836 $139,989 $66,303 ($24,308) $25,673 ($1,799) $1,905 $909,632 $19,745 $865,532 $513,421 $675,147 $19,904 $98,000 ($135,930) $159,524 $142,265 $5,000 ($24,528) $24,773 ($2,396) $2,579 $891,643 Debt Services (Principle and Interest Paid) 325 Parks Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Rents/Financial Expenses Transfers from Res / RF / Cap Fund 326 Cemetery Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Transfers from Res / RF / Cap Fund 350 Waste Collection Revenue User Charges Expenditures Materials & Supplies 351 Recycling Collection Revenue User Charges Expenditures Materials & Supplies 370 Building & Property Services Expenditures Salaries, Wages & Benefits $1,110,079 $492,950 $715,760 $22,000 $98,000 ($127,800) $172,490 $85,570 $5,000 ($22,500) $22,500 ($1,500) $1,500 $940,123 $1,046,806 $485,050 $800,760 $22,000 $100,000 ($127,800) $177,665 $90,360 $50,000 ($22,500) $22,500 ($1,500) $1,500 $976,373 $1,151,057 $515,750 $1,160,760 $30,000 ($143,000) $225,854 $95,700 $45,000 ($22,500) $22,500 ($1,500) $1,500 $992,159 $104,251 $30,700 $360,000 $8,000 ($100,000) ($15,200) $48,189 $5,340 ($5,000) $15,786 Claringon Draft Budget 2020 1 84 $585,067 $566,077 Materials & Supplies $602,195 $590,750 $549,265 ($41,485) $116,021 $153,142 Contracted Services $144,335 $144,325 $139,825 ($4,500) $7,710 $111,328 Debt Services (Principle and Interest Paid) $111,328 $107,968 $107,799 ($169) $788,356 $938,000 Transfers from Res / RF / Cap Fund $938,000 $954,250 ($954,250) 380 Road Maintenance Revenue ($18,460) ($19,420) User Charges ($19,500) ($19,500) ($19,500) Expenditures $863,598 $893,586 Salaries, Wages & Benefits $650,000 $755,000 $597,700 ($157,300) $1,285,413 $905,694 Materials & Supplies $940,790 $980,240 $846,275 ($133,965) $711,247 $785,485 Contracted Services $743,000 $1,192,000 $785,700 ($406,300) 381 Hardtop Maintenance Expenditures $414,253 $406,467 Salaries, Wages & Benefits $394,120 $412,500 $429,000 $16,500 $445,993 $465,561 Materials & Supplies $410,500 $459,900 $456,100 ($3,800) $87,038 $81,931 Contracted Services $104,500 $160,000 $160,000 382 Loosetop Maintenance Expenditures $60,368 $41,353 Salaries, Wages & Benefits $71,000 $67,000 $72,500 $5,500 $317,370 $269,684 Materials & Supplies $347,000 $348,000 $342,000 ($6,000) 383 Winter Control Revenue ($138,769) ($77,428) User Charges ($100,000) ($100,000) ($90,000) $10,000 Expenditures $774,869 $936,900 Salaries, Wages & Benefits $874,622 $855,000 $963,250 $108,250 $1,934,028 $1,983,318 Materials & Supplies $1,285,000 $1,623,000 $2,010,000 $387,000 384 Safety Devices Expenditures ClarM#on Draft Budget 2020 1 85 2017 2018DESCRIPTION 1 1• 2020 CHANGE ACTUALS ACTUALS BUDGET BUDGET BUDGET $204,942 $192,822 Salaries, Wages & Benefits $165,000 $175,000 $188,000 $13,000 $301,248 $392,147 Materials & Supplies $554,840 $302,750 $342,900 $40,150 $5,484 $7,663 Contracted Services $50,000 $50,000 $50,000 386 Stormwater Management Expenditures $36,054 $24,856 Salaries, Wages & Benefits $10,000 $20,000 $20,000 $23,204 $11,770 Materials & Supplies $15,500 $17,500 $8,000 ($9,500) $20,390 $3,000 Contracted Services $92,000 $92,000 $92,000 $22,325 Transfers from Res / RF / Cap Fund 387 Regional Roads Expenditures $6,728 $7,177 Salaries, Wages & Benefits $6,000 $7,500 $9,000 $1,500 $36,477 $36,722 Materials & Supplies $24,300 $23,300 $33,500 $10,200 388 Fleet Expenditures $603,265 $545,863 Salaries, Wages & Benefits $691,526 $621,060 $766,037 $144,977 $127,345 $144,117 Materials & Supplies $92,000 $92,000 $92,000 $134,500 $134,500 Transfers from Res / RF / Cap Fund $134,500 $134,500 ($134,500) 440 Libraries Expenditures $3,486 $5,629 Materials & Supplies $4,160 $4,160 $4,450 $290 $6,110 $35745 Contracted Services $7,950 $9,300 $7,350 ($1,950) $182,385 $632,373 Debt Services (Principle and Interest Paid) $637,692 $78,146 $78,342 $196 460 Museum Expenditures $175832 $205502 Materials & Supplies $17,782 $17,270 $17,800 $530 $9,767 $15,360 Contracted Services $10,500 $11,600 $12,000 $400 $21,6125339 $23,364,397 Total 36 Operations $19,110,901 $19,954,158 $17,004,182 ($25949,976) ClarM#on Draft Budget 2020 1 86 Budget Highlights Unassigned Revenue reduced to reflect decrease in anticipated cost recoveries, and site rentals of $14,200. Offset by an increase in sport field rentals of $2,000. Reduced cost recovery revenue to reflect anticipated reduction as a result of 407 work completion - $12,200 Materials and supplies decreased from significant decrease in miscellaneous operating supplies for connecting link traffic signals relates to work done by Region on traffic signals - $77,266 Administration Miscellaneous revenue decreased as a result of anticipated reduction resulting from 407 work completion - $21,000 Materials and supplies decreased as a result in decreases in various accounts including office supplies, phones, books, clothing, postage and CIarW#oa Active Net fees were decreased to reflect actuals - $10,068 Street lighting Electricity for street lighting increased based on rates, savings resulting from LED will be placed in reserve to repay LED replacement loan -$50,000 Contracted services increased for increased ONT1 Call contract costs as well as maintenance on LED lights - $85,000 Parks Materials and supplies increased primarily due to fleet allocation for forestry vehicles ($41,000) being allocated to the sub -department. This is offset by reductions in miscellaneous operating supplies of $15,000 and nominal changes to phones and utilities - $15,300 Contracted services increased primarily as a result of the urban trees contract being transferred from Draft Budget 2020 1 87 roads maintenance to parks (forestry). Individual contract accounts that relate to forestry services have been moved to a specific forestry contract account. for structures reduced to reflect historical trend - $360,000 Increased rental expenses to reflect anticipated needs for rental equipment - $8,000 Cemetery The Municipality took control of Orono Cemetery in 2019. Increased cemetery user fees to reflect Orono Cemetery other revenues ($14,200) which will now be collected by the Municipality. Increased revenues for St. George's Cemetery to reflect trend - $15,200 Materials and supplies increased due to nominal increases in various accounts for all the cemeteries maintained by the Municipality. As well, in 2019 the Municipality took over the operations of the Orono Cemetery. The related operating costs will be funded from the grant funds ClarW#on that were provided to the cemetery board in 2019 and previous years - $5,340 Building and Property Services Materials and supplies decreased overall due to changes in utilities, repairs and maintenance and fire equipment supplies in the Municipality's 10 cost centres for buildings. An additional building was added in 2020, 156 Church St. - $41,485 Contracted services decreased as a result of a decrease in the fire equipment servicing contract ($7,250). This is offset by new contracts being established for 156 Church St. ($2,700) - $4,500 Road Maintenance Materials and supplies decreased as a result of contracting out bridge maintenance, and ditching. An increase in supplies for GPS units for vehicles as well as establishment of a budget for emergency clean-up offset the decrease -$133,965 Draft Budget 2020 1 88 x Contracted services decreased mainly as a result of the urban tree and brush contracts being moved to Parks ($730,000). Bridge maintenance, culverts, ditching, catch basin, emergency clean up, senior snow clearing, and sidewalk maintenance contracts all increased as a result of increased usage - $406,300 3 Hardtop Maintenance x Decrease in materials and supplies reflective of fleet allocation decrease. This is offset by increase for Region of Durham hydrant fees - $3,800 3 Loosetop Maintenance x Materials and supplies decreased due to fleet allocation ($8,000) net of increase in summer maintenance - $6,000 3 Winter Control x Materials and supplies increased to get closer actual costs (phased in over two years). Fleet Claringon allocation has also increased as winter operations increase - $387,000 ± Safety Devices x Materials and supplies have increased primarily due to additional work planned for guiderail and nominal changes to other safety related devices including rail crossings - $40,150 ± Stormwater Management x Materials and supplies decreased as a result of fleet allocation and miscellaneous expenses to reflect need in 2020. Most maintenance will be in capital budget as larger in scope - $9,500 3 Regional Roads x Increased materials and supplies to reflect fleet allocation of street sweeper and salt/sand used on regional roads - $10,200 ± Draft Budget 2020 1 89 Libraries x Increased repairs and maintenance for library locations to reflect increased cost of supplies - $290 ± x Decreased contract cost a reflection of reduced snow removal contract costs - $1,950 8 x Increased debt servicing costs a reflection of increased principal payment net of reduction in interest. This is based on actual loan agreement - $196 ± Claringon Museums x Contracted services increased due to fire equipment contract cost increase - $400 ± Draft Budget 2020 1 90 Community �.. Services What Does Community Services Do? The Community Services Department works together with our community partners to provide a variety of fun and accessible recreation opportunities in a welcoming, safe environment. The Facilities Section is responsible for the development and maintenance of the Municipality's eight recreation facilities, represented by the South Courtice Arena x Courtice Community Complex x Darlington Sports Centre x Garnet B. Rickard Recreation Complex Bowmanville Indoor Soccer x Orono Park Pool ClarM#on Alan Strike Aquatic and Squash Centre Diane Hamre Recreation Complex. The Recreation Services Section provides a wide variety of programming opportunities to all residents. This section's key areas of program delivery are aquatics, health and fitness, youth and adult recreation programming, as well as older adult services. The Client Services Section coordinates the Department's customer services function and involves the operation of our facility customer services and reception areas, the facility permitting process, the preparation of the community guide and overall maintenance of our recreation software system. In addition, Client Services is also responsible for the Community Development portfolio providing services and support such as municipal grants and sponsorships, special events, workshops, community support and provides representatives and guidance to the Municipal Diversity Committee. Draft Budget 2020 1 92 Community Services Operating Budget Budget Summary CIarW#oa Draft Budget 2020 1 93 090 PSAB Expenditures $1,993,895 $2,019,637 Amortization Expense 130 Admin Revenue ($61,388) ($66,333) User Charges ($43,500) ($43,500) ($63,500) ($20,000) Expenditures $858,321 $924,312 Salaries, Wages & Benefits $994,652 $952,429 $958,743 $6,314 $100,069 $168,958 Materials & Supplies $163,000 $67,700 $69,070 $1,370 $17,611 $2,867 Contracted Services $60,000 ($60,000) $813,922 $772,370 Transfers from Res / RF / Cap Fund $810,700 $737,200 ($737,200) 420 Recreation Services Admin Revenue ($6,490) ($6,470) User Charges ($8,000) ($3,900) ($1,230) $2,670 Expenditures $1,052,154 $1,164,565 Salaries, Wages & Benefits $1,157,838 $900,785 $929,233 $28,448 $25,454 $27,858 Materials & Supplies $30,850 $27,600 $26,942 ($658) 421 Facilities Revenue ($2,175,425) ($2,251,888) User Charges ($2,264,166) ($2,283,700) ($2,357,646) ($73,946) Expenditures $4,015,859 $4,261,565 Salaries, Wages & Benefits $4,121,539 $3,451,862 $3,604,093 $152,231 $2,464,542 $2,595,166 Materials & Supplies $2,630,848 $2,564,050 $2,641,186 $77,136 $154,188 $115,416 Contracted Services $145,800 $154,900 $157,434 $2,534 CIarW#oa Draft Budget 2020 1 93 $3,105,958 $2,115,485 Debt Services (Principle and Interest Paid) $2,115,485 $2,111,799 $1,957,836 ($153,963) 422 Proshop Revenue ($11,790) ($14,452) User Charges ($11,000) Expenditures $6,052 $6,726 Materials & Supplies $5,700 423 Concession Revenue ($390,834) ($194,092) User Charges ($418,500) ($66,100) ($66,140) ($40) Expenditures $163,340 $97,851 Salaries, Wages & Benefits $209,479 $201,817 $114,145 Materials & Supplies $191,000 424 Aquatic Programs Revenue ($1,100,732) ($1,157,825) User Charges ($1,072,800) ($1,129,300) ($1,172,741) ($43,441) Expenditures $772,424 $799,406 Salaries, Wages & Benefits $800,787 $862,656 $912,481 $49,825 $46,385 $44,062 Materials & Supplies $52,050 $51,450 $61,830 $10,380 425 Fitness Programs Revenue ($520,958) ($510,788) User Charges ($612,000) ($576,500) ($532,295) $44,205 Expenditures $342,770 $361,966 Salaries, Wages & Benefits $358,949 $356,716 $364,173 $7,457 $22,434 $25,203 Materials & Supplies $30,500 $28,800 $28,850 $50 $2,400 $1,500 Rents/Financial Expenses $3,600 $3,600 $2,000 ($1,600) 426 Recreation Programs Revenue ($529,925) ($538,627) User Charges ($537,000) ($544,500) ($566,015) ($21,515) ClarM#on Draft Budget 2020 1 94 Claringon $467,664 $472,402 Expenditures $398,383 $443,485 Salaries, Wages & Benefits $72,207 $75,235 Materials & Supplies $51,604 $92,556 Contracted Services $2,208 $1,258 Rents/Financial Expenses $300 ($176,400) 427 Community Development ($191,903) ($14,503) Revenue ($165,220) ($208,377) User Charges $188,800 $195,600 Expenditures $1,899 $1,318 Salaries, Wages & Benefits $214,661 $216,840 Materials & Supplies $3,250 $5,727 Contracted Services $5,088 $18,001 External Transfers to Others ($49,631) $116,789 428 55+ Active Adults $142,812 $36,517 Revenue ($92,309) ($109,408) User Charges $10,500 $14,500 Expenditures $87,946 $93,648 Salaries, Wages & Benefits $20,721 $24,191 Materials & Supplies $10,133 $12,627 Contracted Services $749 $913,258 Rents/Financial Expenses $13,297 429 Customer Service $132,736 $16,522 Revenue User Charges Expenditures $1,104 Salaries, Wages & Benefits Materials & Supplies Claringon $467,664 $472,402 $501,408 $29,006 $63,700 $67,300 $68,830 $1,530 $90,500 $46,000 $47,300 $1,300 $3,800 $2,500 $2,800 $300 ($176,400) ($177,400) ($191,903) ($14,503) $2,473 $7,100 $8,448 $1,348 $188,800 $195,600 $197,675 $2,075 $4,500 $34,500 $34,700 $200 $5,000 ($99,100) ($112,600) ($162,231) ($49,631) $116,789 $106,295 $142,812 $36,517 $30,000 $24,000 $25,400 $1,400 $10,500 $14,500 $16,550 $2,050 $3,500 $1,000 $3,000 $2,000 ($11,500) ($15,675) ($4,175) $913,258 $926,555 $13,297 $116,214 $132,736 $16,522 Draft Budget 2020 1 95 Budget Highlights Administration x Miscellaneous revenue increased to reflect historical actuals, previously not budgeted for - $20,000 ± x Materials and supplies increased as a result of nominal changes in various accounts including phone/fax, periodicals, postage, memberships and travel decreased to reflect 2020 requirements - $1,370 ± Claringon x Consulting decreased to reflect 2019 one-time procurement of consulting services for recreation needs study update not needed in 2020 -$60 '000 3 Recreation Services Administration x Departmental issued clothing revenue reduced to reflect change in policy that no longer charges for certain uniforms - $2,670 3 x Materials and supplied included nominal changes across various phone, repairs and membership accounts resulting in a decrease overall - $658 3 Draft Budget 2020 1 96 450 Client Services Expenditures Salaries, Wages & Benefits $352,234 $384,696 $32,462 Materials & Supplies $12,640 $12,840 $200 473 Community Grant Program Expenditures $60,000 $59,250 External Transfers to Others $60,000 $60,000 $60,000 480 Municipal Sponsorships Expenditures $35,000 $34,500 External Transfers to Others $35,000 $35,000 $35,000 $12,068,373 $11,640,538 Total 42 Community Services $9,662,537 $9,843,090 $9,185,245 ($657,845) Budget Highlights Administration x Miscellaneous revenue increased to reflect historical actuals, previously not budgeted for - $20,000 ± x Materials and supplies increased as a result of nominal changes in various accounts including phone/fax, periodicals, postage, memberships and travel decreased to reflect 2020 requirements - $1,370 ± Claringon x Consulting decreased to reflect 2019 one-time procurement of consulting services for recreation needs study update not needed in 2020 -$60 '000 3 Recreation Services Administration x Departmental issued clothing revenue reduced to reflect change in policy that no longer charges for certain uniforms - $2,670 3 x Materials and supplied included nominal changes across various phone, repairs and membership accounts resulting in a decrease overall - $658 3 Draft Budget 2020 1 96 Facilities x Revenue from facility rentals increased to reflect changing demands and programs offered in the various locations - $73,946 ± x Materials and supplies have increased mainly as a result of repairs and maintenance and utility expenses across the eight cost centres. South Courtice Arena has planned vehicle repairs while other facilities will vary in the type of repair work planned for 2020 - $77,136 ± Concessions x Vending commissions increased to reflect anticipated revenue - $40 ± Aquatic Programs x Revenues increased to reflect anticipated program registrations throughout the facilities - $43,441 ± x Program supplies at DHRC, CCC and ASC increased to reflect increased programming at these facilities - $10,380 ± Claringon Fitness Programs x Revenues for programs at various facilities decreased to reflect anticipated participation in programs - $44,205 3 x Materials and supplies reflect equipment purchase at the CCC to reflect anticipated need for equipment replacement (non -capital) - $50 ± x Facility rentals decreased to reflect reduced programming and therefore less requirement for leased space - $1,600 3 Recreation Programs x Revenues adjusted to reflect changing programs and locations. Preteen dances have been eliminated while a significant increase in summer day camp revenues - $21,515 ± x Net increase in materials and supplies reflects an increase in program supplies and a decrease in phone and fax - $1,530 ± Draft Budget 2020 1 97 Contracted services increased as a net result of elimination of preteen dance and increased day camps - $1,300 Financial services and rental expenses increased as a result of anticipated increase in building rentals for children programs - $300 Community Development Increasing revenue is a result of review of special events and the revenue received. Created a revenue for Canada Day activities for sponsorships received - $14,503 Program supplies for specific events have been reallocated to reflect actuals and anticipated needs -$2,075 New Year's Eve party contracted service increased to reflect historic actuals and increasing popularity of event - $200 55+ Active Adults ClarM#on Revenues increased across programs to reflect increased demand and anticipated programming for 55+ adults - $ 49,631 Materials and supplies increased to reflect increase in programming - $1,400 Contracted services increased to reflect increase in programming - $2,050 Rent increased to reflect demand for special events - $2,000 Customer Service Revenues increased to reflect merchandise sales anticipated - $4,175 Materials and supplies increased for Active Net fees to reflect anticipated transaction fees for service of software, merchandise expenses and miscellaneous expenses - $16,522 Draft Budget 2020 1 98 Client Services Net increase a reflection of savings in phone / fax with an increase in travel between facilities -$440 Claringon Draft Budget 2020 1 99 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 100 Planning Services y'T. L.� Ilk 44 `Y R.- i -,ice What Does Planning Services Do? This department is further broken down into the following divisions: x Development Review x Community Planning x Special Projects x Administration (which includes Crossing Guards) Development Review provides comments, analysis and recommends approval on a variety of development related planning applications and policies. This division implements Provincial and Regional policies that guide growth and manage the use of land within Clarington. The Community Planning division promotes strategic growth and policy through land use planning, community Clarm#orl planning. Some of its responsibilities include urban growth management, Secondary Plan studies as well as commercial development applications. The Special Projects division provides comments on Environmental Assessments that affect Clarington such as environmental assessment reviews for the Durham York Energy Centre expansion, St. Mary's alternative fuels and Port Granby Project. In addition, Special Projects is responsible for heritage planning and incentives, the Community Improvement Plans and incentives, Real Estate acquisitions and disposals and commenting on environmental impacts. The Administration division supports the other three divisions by providing administrative services including minutes of Pre -Consultations, development application tracking and processing together with secondary plan coordination as well as the Crossing Guard Program. Draft Budget 2020 1 102 Planning Services Operating Budget Budget Summary Cl #oa $426,521 $217,850 $689,830 $434,204 $238,750 $696,728 $438,591 $238,750 ($702,300) ($814,400) 000 Unassigned $2,911,635 $3,052,707 Expenditures $401,178 $418,478 Salaries, Wages & Benefits $49,427 $145,661 Materials & Supplies $683,000 $689,830 Transfers from Res / RF / Cap Fund 090 PSAB Expenditures $2,863 $2,863 Amortization Expense 130 Administration Revenue ($1,082,209) ($939,339) User Charges Expenditures $2,667,220 $2,867,313 Salaries, Wages & Benefits $69,364 $73,583 Materials & Supplies $198,244 $195,980 Contracted Services $194,589 $327,058 Transfers from Res / RF / Cap Fund 385 Environmental Revenue ($1,170) User Charges Expenditures Contracted Services 430 Small Boards Expenditures $1,135 Materials & Supplies Cl #oa $426,521 $217,850 $689,830 $434,204 $238,750 $696,728 $438,591 $238,750 ($702,300) ($814,400) ($862,300) $2,911,635 $3,052,707 $3,107,819 $92,700 $91,450 $114,750 $27,000 $187,000 $186,000 $12,500 $12,500 $12,500 $1,500 $123,695 $1,500 $4,387 ($696,728) ($47,900) $55,112 $23,300 ($1,000) $123,695 Draft Budget 2020 1 103 2017 2018DESCRIPTION 1 1' 2020 CHANG ACTUALS ACTUALS BUDGET BUDGET BUDGET 501 Tile Drainage Revenue ($870) User Charges Expenditures $869 Debt Services (Principle and Interest Paid) 502 Development Review Revenue ($278,327) User Charges Expenditures $11,226 Materials & Supplies $358,072 Contracted Services $3,183,675 $3,872,363 Total 50 Plan. Services $3,675,736 $3,900,439 $3,361,305 ($539,134) Budget Highlights The following items highlight the 2020 budget submission for Planning Services: Administration Planning fees were decreased to reflect predicted demand in 2020 - $78,100 ClarW#oa Administration fees for secondary plans have been increased to reflect projected recoveries on these projects in 2020 - $126,000 Materials and supplies reflect decreases in office related expenses (supplies, phones, office equipment, books) as well as an increase in postage to reflect anticipated need for ZONE Clarington communication - $23,300 Draft Budget 2020 1 104 Environmental x Created contracted services for work to be completed on the Port Granby Nature Reserve. These funds are offset by a transfer from reserve resulting in no net levy impact - $123,695 ± Clam#on Draft Budget 2020 1 105 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 106 �.5.lot�Clarington •-PPublic Library S i .P What Does Clarington Library and Museums Do? Clarington Public Library The Clarington Public Library empowers and enriches the lives of residents by connecting them to responsive, accessible, high quality services and resources. The Library provides service through four branch locations: Bowmanville, Courtice, Newcastle, and Orono. Clarington Public Library enhances cultural, educational and economic well-being. The Library is an active connector for social interaction and learning, which facilitates and strengthens community partnerships. Library services are comprised of: Lending collections (such as books, DVDs, magazines, video games, audio books) Online resources including e -books, digital audio books and online resources Clara OR Children's literacy programs Educational workshops and life-long learning Computer access and Wi-Fi hotspots Quiet study space Meeting room access The Clarington Public Library Board oversees the strategic direction of the Library under the provisions of the Ontario Public Libraries Act. Clarington Museums The Clarington Museums and Archives has year-round exhibits where residents and visitors can learn and explore. The Museums provides services at its three locations: Bowmanville Museum, Clarke Museum and Archives, and Sarah Jane Williams Heritage Centre. Draft Budget 2020 1 108 Operating Budget Summary The operating budget for the Clarington Library starting in January 2020 will include the Clarington Museum. Historical Funding The historical funding for the Clarington Library and the Clarington Museum and Archives for the years 2015 to 2020 are as follows: Claringon Historical Funding for Clarington Public Library and Museum $4,000,000 $3,000,000 $2,000,000 $1,000,000 5- 2015 2016 2017 2018 2019 2020 award award award award award request ■ Clarington Library ■ Clarington Museum Draft Budget 2020 1 109 Budget Highlights Clarington Public Library x The request for the Clarington Public Library is at the 2.0% target set by Council. The budget was presented to and approved by the Clarington Public Library Board. Claringon Clarington Museums x The request for the Clarington Museums is at the 2.0% target set by Council. The budget was presented to and approved by the Clarington Public Library Board. Draft Budget 2020 1 110 '0000, •Art and }Culture R Niel � IF + �¢, What Does Art and Culture Do? The Visual Arts Centre of Clarington is a not-for-profit charitable organization which nurtures the cultural development of Clarington by encouraging the creativity through arts education, exhibition, and promotion. Budget Summary Visual Arts Budget Impact The operating budget for the Visual Arts Centre is the Municipality's contribution to this organization. 2017 2018 DESCRIPTION 2018 2019 2020 CHANGE ACTUALS ACTUALS BUDGET BUDGET BUDGET 465 Culture Expenditures $210,848 $210,040 External Transfers to Others $210,848 $215,065 $219,366 $4,301 $210,848 $210,040 Total 64 Culture $210,848 $215,065 $219,366 $4,301 Glr]rM#on Draft Budget 2020 1 112 Historical Funding The five-year financial support provided to the Visual Arts Centre is as follows: $225,000 $220,000 $215,000 $210,000 $205,000 $200,000 $195,000 $190,000 Financial Support 2015 to 2020 Visual Arts Centre ■ 2015 award ■ 2016 award ■ 2017 award ■ 2018 award ■ 2019 award 2020 request Budget Highlights Visual Arts Centre x This request is within the 2.0% target and is to provide ongoing support for programs at the Visual Arts Centre — $4,301 ± Cjarin#on Draft Budget 2020 1 113 Page Intentionally Left Blank Clam#on Draft Budget 2020 1 114 External m Agencies w - -IMFdLdm External Agencies Operating Budget Impact External agencies operate outside of the Municipality's operational functions and are not consolidated into the Municipality's financial statements for reporting purposes. The operating grants provided to these organizations are presented below: Budget Summary Breakdown by Agency The breakdown by agency is as follows: External Agency 2019 Award 2020 Request $ Change % Change Community Care Durham $50,000 $50,000 $0 0.0% Bowmanville Older Adults Association 306,800 312,936 6,136 2.0% John Howard Society 276,731 331,226 54,495 19.7% Newcastle Community Hall 20,000 20,000 0 0.0% Grandview Children's Centre 20,000 20,000 0 0.0% ClarM#on Draft Budget 2020 1 116 Historical Funding The following chart shows the past five years of support from Council for each agency: $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 1-3 ciffingon Fiscal Support for External Agencies 2015 to 2020 Community Care Bowmanville Older John Howard Society Durham Adult W Newcastle Community Orono Cemetery Board Grandview Child rens Hall Centre ■ 2015 award ■ 2016 award 2017 award 2018 award 2019 award 2020 request Draft Budget 2020 1 117 Budget Highlights -- Community Care Durham The 2020 request has seen no increase from 2019 levels - $0 Bowmanville Older Adult Association This request is within the 2.0% target increase and is to assist with provision of services to adults in the Bowmanville area - $6,136 John Howard Society (Firehouse Youth) The request from the John Howard Society exceeds the directed 2.0% target set by Council in September 2019. It should be noted that the increase is primarily due to the annualization of operations of the Newcastle Youth Centre at the Diane Hamre Recreation Centre. Funding in 2019 was for a partial year, the funding request is to fund the operations of the centre for the full year -$54,495 Clara OR Newcastle Community Hall The 2020 request has seen no increase from 2019 levels - $0 Grandview Children's Centre This is the second year of a five-year request from the Grandview Children's Centre for capital support. Council approved the request in 2019, no additional request has been made - $01#�' Draft Budget 2020 1 118 w Glr]rington Draft Budget 2020 1 119 Long-term Debt Introduction The Municipality of Clarington currently has external debt, issued by the Region of Durham (the Region), related to capital infrastructure. The Province of Ontario limits municipal debt based on a maximum percentage of revenues that may be used to service the debt costs on an annual basis. Debt servicing costs include interest and principal payments and is currently limited to 25% of the municipality's net own source revenues. Annuai Kepayment Limit The Province of Ontario annually provides municipalities with the Annual Repayment Limit (ARL), which is the municipality's calculation of revenues and debt servicing costs. For the year 2019, the Municipality of Clarington's ARL statement indicates that has a repayment limit of approximately $19,793,000 with available space of approximately $15,963,000. Clarin#on The Municipality's debt servicing costs, as a percentage of net revenues, are not projected to exceed the ARL in 2020. Finance is working on a debt management policy which will be brought to Council in 2020. The Municipality's 2020 ARL statement has not been provided to the Municipality at the time of writing. It is expected to be higher than the 2019 limit as tax revenues increased and no additional debt was issued during 2019. Existing Debt The Municipality currently has external debt, issued through the Region, related to: Bowmanville Indoor Soccer — maturing in 2024, this debt was for the construction of the Bowmanville Indoor Soccer facility and is funded primarily through development charges. Rickard Recreation Complex — maturing in 2021, this debt was for major renovations at the Rickard Recreation Complex and is funded primarily through development charges. Draft Budget 2020 1 120 Diane Hamre Recreation Complex — maturing in 2022, this debt was for the construction of the Diane Hamre Recreation Complex and is primarily funded through development charges. Green Road — maturing in 2029, this debt was for the grade separation of the railroad track and Green Road. This debt is development charge funded. Courtice Library — maturing in 2031, this debt was for the Courtice Branch of the Clarington Public Library. This debt is primarily development charge funded. Rickard Recreation Centre Improvements — maturing in 2032, this debt was renovations at the RRC including the replacement of Pad A arena floor, roof replacement and repainting. This debt is tax levy funded. Municipal Administration Centre Improvements — maturing in 2032, this debt was various renovations including main boiler replacement, roof replacement, accessibility improvements, ClarW#oa audio visual system updating, lighting retrofits and building security. This debt is tax levy funded. The following chart shows the projected ending balances for the existing external debentures: Total Ending Balance for Existing Long Term Debt 2019 to 2033 15,000,000 10,000,000 5,000,000 N M I* Ln lD I" W M O M ci N N N N N N N N N N M M M M O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N ■ Total Draft Budget 2020 1 121 The following table summarizes the debt servicing costs for the existing debt for the taxation year 2020: DebenturePrincipal-. 397,000 147,417 L Loan Payments Payments Servicing Bowmanville $144,000 $20,755 $164,755 Indoor Soccer Rickard 58,698 25,312 Recreation 98,016 6,699 104,715 Centre Improvements Diane Hamre Recreation 1,500,000 104,356 1,604,356 Centre Administration 75,319 Green Road 397,000 147,417 544,417 Courtice Library 61,000 17,342 78,342 Rickard Recreation 58,698 25,312 84,010 Centre Improvements Municipal Administration 75,319 32,480 107,799 Centre Improvements $2,334,033 $354,362 $2,688,395 ClarW#oa Proposed New Debt The Municipality of Clarington is proposing new long-term debt financed projects in 2020; however, the timing of the issuance of the debenture is subject to several factors. The future debt relates to a proposed South Bowmanville Recreation Centre which may include a twin ice pad, public library space, meeting rooms, public gathering space. The Municipality has applied for funding through the Investing in Canada Infrastructure Program (ICIP) to fund approximately 75% of the approximately $50 million project. Within the 2020 capital budget, $4.2 million has been included as debt financed capital related to the design and construction phase of this project. While the work may be started in 2020, it is not anticipated that debenture financing will be obtained until at least 2021. If the Municipality is successful with its grant application, it is being proposed that $12.8 million would be debentured in 2021 for a 20 -year period. The proposed debt balance from 2020 to 2040 is as follows: Draft Budget 2020 1 122 Debt Balance Forecast - Grant Funding 2020 to 2040 ■ Existing Debt ■ Proposed Debt - SBRC $ 25,000,000 $ 20,000,000 $ 15,000,000 $ 10,000,000 $ 5,000,000 ' I I I I I ' ' ' ' , ■ _ ,LO ,y0 ,y0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 At this time, it is anticipated that much of the Municipal portion of the debt servicing costs would be covered through development charges or equivalent. The Municipality's ARL in 2019 is approximately $19 million; the proposed debt would not exceed the regulated debt limit. The forecasted debt servicing from 2020 to 2040 is as follows: Claringon Debt Servicing Costs with Forecasted Debt 2020 to 2040 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 I I I I I I I I I ti10 ti� 3� 3� �� �10 ,LO ,ti0 ,y0 ,LO ,LO ,LO ,LO ,LO ,LO ,y0 ,y0 ■ Total Debt Servicing - SBRC with grant ■ Total Debt Servicing - Existing Draft Budget 2020 1 123 Conclusion The Municipality of Clarington is within the statutory limit for debt servicing costs as mandated by the Province of Ontario. The Municipality carries a relatively low debt load which is funded mainly from development charges as the debt relates to growth related capital projects. While reliance on debt is anticipated to increase in the coming years as growth related capital infrastructure is built, there may need to be consideration for long-lived replacements being funded from debt, if appropriate. This will be the focus of the new debt management policy being developed. Claringon Draft Budget 2020 1 124 a Clam#on Draft Budget 2020 1 125 Capital Budget Introduction A municipality's capital budget outlines the investment it is going to make for the year in the creation, purchase, repair and rehabilitation in the assets that it uses to provide services. Infrastructure is the single largest investment that the Corporation makes and forms the foundation of the services we provide to stakeholders. Without infrastructure investment, economic, population and service growth cannot occur or be sustained. Infrastructure is costly to build, renew or replace and often takes years to plan, design and complete. This investment of resources ensures that the Municipality can provide services at the levels that our taxpayers have come to expect. Due to the timing required to plan, purchase/build and operate assets, it is important to take a long-term view and plan accordingly. Clarington's capital budget sets funding for: Clarm#on Capital assets: The physical items that the Municipality owns or controls that have some form of financial value, for example, the Diane Hamre Recreation Centre; and Municipal Infrastructure: The equipment and systems that provide the Municipality with roads, bridges, culverts, stormwater systems, and recreation facilities. As further development occurs, the capital budget will become a well scheduled process, relying heavily on the asset management plans of a municipality to help make decisions regarding project priorities and timing. Many municipalities face an infrastructure gap/deficit, the difference between the work that needs to be done to keep municipal assets and infrastructure in good working condition, and the funds available to do so. The realization of this gap has led to various asset management changes, the most recent of which is Ontario Regulation 588/17. Draft Budget 2020 1 126 Under Ontario Regulation 588/17, all Ontario municipalities are required to have: Equipment 2% A strategic asset management policy by July 1, Vehicles 2019, reviewed and updated at least every five 3% years; Buildings 15% An asset management plan for water, wastewater, storm, roads, bridges and culverts by July 1, 2021; Land and Improvements rr 4% An asset management plan for buildings, machinery and equipment, land improvements and vehicles by July 1, 2023 The Municipality is working towards the development of asset management plans to meet the regulation's requirements. The following chart breaks down the cost of assets owned by the Municipality at December 31, 2018; this chart shows that over half of the assets owned by the Municipality relate to roads. Assets by Category - 2018 Road and Related 55% Land Storm Sewers 10% 11% Summary of 2020 Capital Budget Each year the Municipality budgets for capital projects which could be as simple as the purchase of a piece of equipment or as complex as the construction of a bridge. Funding for these projects come from a variety of sources which may be tax levy, development charges, external grants or debt. The 2020 capital budget proposes an investment of approximately $28,722,900 in assets used to provide services to taxpayers. ClarM#on Draft Budget 2020 1 127 Sources of Financing The following chart summarizes the proposed breakdown for source of funding the 2020 Capital Budget. The three largest sources of financing are tax levy, development charges and reserve funds. Sources of Financing - 2020 Capital Budget $ 9,000,000 $ 8,000,000 $ 7,000,000 $ 6,000,000 $ 5,000,000 $ 4,000,000 $ 3,000,000 $ 2,000,000 $ 1,000,000 Over the past ten years the Municipality has seen a continuing increase in the tax levy support for the capital budget. This increase has often been higher than the overall municipal tax levy increase. The tax levy support for capital over the past ten years is shown below: Tax Support for Capital Budget 2010 to 2020 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 ,e5 �a5 e��' e0� e°� $2,000,000 $1,000,000 O O O O O O O O N N N N N N N N 0000 Qat O O O O N N N Claringon Draft Budget 2020 1 128 The Municipality's capital budget is primarily reflective of hard infrastructure assets such as roads, bridges, buildings. The Departmental summary of the total cost for the 2020 budget is as follows: Total Capital Cost By Department 2020 Capital Budget $ 16,000,000 $ 14,000,000 $ 12,000,000 $ 10,000,000 $ 8,000,000 $ 6,000,000— $ 4,000,000 $2,000,000 — $ e��Gey 5 �`e `,` 4, 5 e ca`�ooy e.0`; ca (14 e'� OoiQo t�`��ee o��o Glade#o 2 The Municipality's tax levy support for capital by department is as follows: Tax Levy Support by Department - 2020 Capital Budget $ 4,000,000 $ 3,500,000 $ 3,000,000 $ 2,500,000 $ 2,000,000 $ 1,500,000 $ 1,000,000 $ 500,000 ■ Q tame z�oA c`oo° pQ cJ Draft Budget 2020 1 129 The Municipality's capital budget by department is summarized as follows: Department Corporate Services $ 570,500 External $ 0 $ 0 Reserve $ 152,000 Development $ 0 Debt $ 0 Clerk's 4,500 0 0 35,000 40,500 0 Emergency Services 153,925 0 20,000 63,000 76,000 0 Engineering Services 3,346,536 804,904 200,000 4,669,893 6,064,667 0 Operations 3,110,000 0 175,000 1,682,000 1,278,000 0 Community Services 310,000 0 0 771,000 0 4,200,000 Planning Services 634,717 0 68,979 0 0 0- 0 Library Library 164,176 0 0 0 127,589 - 0 Total $ 8,294,354 $ 804,904 $ 463,979 $ 7,372,893 $ 7,586,756 $ 4,200,000 Claringon Draft Budget 2020 1 130 Caaital Projects 2020 The Municipality of Clarington's capital projects vary in size and complexity from the replacement of computer hardware to the complete reconstruction of segments of road related infrastructure. A project may be completed with a single budget year, while larger infrastructure projects could span multiple years. The funding sources for capital projects include grants received from the Province of Ontario and the Government of Canada, development charges, reserves and reserve funds, tax levy and debt. Corporate Services The Corporate Services Department capital requests are from the Information Technology division. Within the computer software component is additional funds for the replacement of the land development office (LDO) software. This software will be a corporate wide software which will provide improved mobility, resident interactivity and customer service response. Claringon Draft Budget 2020 1 131 Clerk's The Clerk's Department includes capital requests from Animal Services and Municipal Law Enforcement divisions. Animal Services The Animal Services vehicle is a planned replacement for the service funded from the Clerk's Fleet Reserve Fund. This vehicle is used for animal enforcement and transportation. Municipal Law Enforcement -- The Municipal Law Enforcement new vehicle is a growth -related expenditure and is funded 90% from development charges. In accordance with Council's Strategic Plan priority on environmental sustainability, this vehicle will be an electric vehicle. Claringon Draft Budget 2020 1 132 Emergency Services Emergency Services has requests from Fire Suppression, Fire Prevention and Fleet divisions. Fire Prevention The inflatable safety house, including trailer and blower, would be used at community events and fire prevention events throughout Clarington. It is funded through the Fire Prevention Reserve. Fire Suppression Self Contained Breathing Apparatus $ 37,500 $ 0 $ 0 $ 0 $ 0 $ 0 Bunker Gear 98,925 0 0 0 16,000 0 Leather Bunker Boots 7,500 0 0 0 0 0 Headsets 0 0 0 $ 18,000 0 0 Total $ 143,925 $ 0 $ 0 $ 18,000 $ 16,000 $ 0 Self -Contained Breathing Apparatus includes five packs for Aerial 11 at Station 1. Bunker gear includes replacement of 15 sets of gear, new gear for 20 new recruits. Eight sets of gear, two each for four fighters is funded from development charges for proposed new staffing of four fighters. ClarM#on Draft Budget 2020 1 133 Leather boots includes replacement of existing boots which lasts approximately five years. Headsets will equip three fire trucks for responding to calls, with each truck receiving five headsets. External Reserve Development Project• Reserves FundsCharges Vehicles for Prevention $ 10,000 $ 0 $ 0 $ 45,000 $ 60,000 Division EE Total $ 10,000 $ 0 $ 0 $ 45,000 $ 60,000 $ 0 Vehicles include a replacement for fire prevention division as well as an additional growth -related vehicle for fire prevention. Both vehicles, in accordance with the Strategic Plan priority for environmental sustainability, are proposed to be electric vehicles with one charging station budgeted for placement at the fire station. Engineering Services Engineering Services capital requests include general engineering, street lighting, parks, bridges, roads and structures, sidewalks and walkways, traffic signals, erosion protection and stormwater management. General Engineering ClarM#on Draft Budget 2020 1 134 x The parking lot resurfacing program represents the annual work on municipally owned parking lots. Planned lots in 2020 include Bowmanville Creek Valley north parking lot and the Hampton Community Hall. x Electric vehicle charging stations represents planned five new electric charging stations in the municipal parking lot at the south west corner of Church St. and Division St. A grant application to the Federal Government has been made for 50% of the total funding of the project. Street Liqhtin Streetlight installation - $ 100,000 $ 0 $ 0 $ 0 $ 0 $ 0 Various RR 57 Streetliqhtinq 0 0 0 0 80,000 0 Total $ 100,000 $ 0 $ 0 $ 0 $ 80,000 $ 0 x Streetlight installation generally includes extension of lighting systems and infill where systems do not meet standards. x Regional Road 57 street lighting relates to a Region of Durham project to reconstruct the intersection of Bowmanville Ave from the CPR bridge to north of Stevens Rd. Claringon Draft Budget 2020 1 135 Parks Newcastle Community Park located adjacent to the Diane Hamre Recreation Centre, includes the construction of a tournament quality sports field including lighting and irrigation. This project is growth related and therefore 90% funded from development charges. 1505 Bowmanville Ave Trail to Rhonda Park is a paved walkway connecting Bowmanville Avenue to Rhonda Park through parkland east of 1505 Bowmanville Avenue. x Farewell Creek Trail represents the additional funds required in 2020 due to the revised trail alignment. Bridaes Structures Rehabilitation $ 1,167,536 $ 0 $ 0 $ 932,464 $ 0 $ 0 Total $ 1,167,536 $ 0 $ 0 $ 932,464 $ 0 $ 0 Replacement, rehabilitation and maintenance of structures throughout the Municipality resulting from the bi-annual inspection on all bridges. Work will be at various locations. ClarW#oa Draft Budget 2020 1 136 Roads and Structures Pavement Rehabilitation Program Roadside Protection Program Haines St. Rural Road Rehabilitation Longworth Ave Oversizing Rudell Rd Reconstruction Lake Rd Reconstruction Millstream Ln Rehabilitation North Scugog Court Lambs Rd Reconstruction Port Darlington Rd Reconstruction Old Scugog Rd Reconstruction North St Total $ 34,000 150,000 0 150,000 0 0 0 375,000 0 0 60,000 50,000 350,000 $0 0 0 0 0 436,004 0 0 0 0 0 I $ 200,000 $ 3,061,000 $ 0 $ 0 0 0 0 0 0 0 0 7,750 0 0 117,250 0 0 0 162,000 0 0 0 1,245,000 0 0 82,174 641,822 0 0 0 0 0 0 8,250 66,750 0 0 4,985 45,015 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 1,169,000 $ 436,004 $ 200,000 $ 3,164,159 $ 2,277,837 $ 0 The pavement rehabilitation program extends the lifecycle of road pavement structures with asphalt overlays, and base repairs such as cold milling, joint sealing and full depth crack repair. Each year an analysis is done to identify ClarM#on Draft Budget 2020 1 137 the most cost-effective road and treatment type to be included in the program. This project is funded over $3 million from the Federal Gas Tax Fund and the Ontario Community Infrastructure Fund. The roadside protection program includes construction of roadside safety improvements such as guide rails, upgrading deficient protection measures or removal of hazards from the clear zone adjacent to the road throughout various areas of the Municipality. Haines St (Baseline to Hwy 2) — design for the reconstruction to an urban standard including servicing, curb and gutter, road base, asphalt, street lighting and sidewalk. Design is being advanced to facilitate development of the Clarington Technology Business Park The rural road rehabilitation program is an annual program to improve rural roads. This program is split between Operations and Engineering, currently. Approximately 50% of the funding is for hot mix asphalt inventory of the rural road network. Longworth Ave oversizing (west urban limit to Green Rd) — this project includes the cost of upgrading the road from a local road to a Type C Arterial road. Longworth Ave. will be constructed by the developer. Rudell Rd reconstruction (Grady Dr to Hwy 115) — the road will be built to an urban standard. The project is being advanced at this time to coordinate with the timing of development. Lake Rd extension (cul-de-sac to Bennett Rd) — the Municipality is partnering with adjacent developers to complete the extension of Lake Rd as there has been significant economic development interest along Lake Rd. Millstream Lane rehab (King Lane to Old Scugog Rd) — this project includes rehabilitation and safety improvements on Millstream Lane. Work includes removal of deteriorating post and wire fence, widening and replacement of road Clam#oa Draft Budget 2020 1 138 surface, sight line improvements, drainage improvements, sidewalk extension and safety improvements at the King Lane and Old Scugog Rd intersections. x Lambs Rd reconstruction (Baseline to Hwy 2) — this project is the design of the reconstruction of Lambs Rd from the north side of the Toyota development to Highway 2 at an urban standard. The design is being advanced to facilitate development at the Clarington Technology Business Park. x Port Darlington Rd reconstruction (East Shore Dr to East Beach Rd) — the design for reconstruction of Port Darlington Rd. Reconstruction is necessary to improve the road structure to allow full load truck access to the water supply plant and improve active transportation access to the Port Darlington waterfront park. x Old Scugog Rd reconstruction (Edmonson Ave to north limit of Hampton) — the design for reconstruction of Old Scugog Rd to improve road structure and improve drainage. x North St (George St to Grady Dr) — the proposed subdivision development north of the CPR tracks between Regional Road 17 and Arthur St requires the extension of watermain and sanitary sewers up North St. The Municipality is coordinating the timing of improvements on North St with the construction of Region of Durham services. Claringon Draft Budget 2020 1 139 Sidewalks and Walkways Project Sidewalk Replacement Tax Levy Financing $ 183,000 Reserves $ 0 $ 0 Reserve Funds $ 0 DevelopmentExternal Charges $ 0 Debt $ 0 RR 57 Multi -Use Path 0 0 0 120,000 120,000 0 Highway 2 Sidewalk 0 0 0 0 135,000 0 Bloor St Sidewalk 0 0 0 0 30,000 0 Active Transportation Master Plan 0 0 0 0 120,000 0 Pedestrian Crossovers 80,000 0 0 0 0 0 Tooley Rd Sidewalk 0 0 0 0 30,000 0 Trulls Rd Sidewalk 0 0 0 0 30,000 0 RR 22 (Bloor St) Multi Use Path 0 0 0 0 15,000 0 Prestonvale Rd Sidewalk 0 0 0 0 35,000 0 RR 17 Sidewalk 0 0 0 0 310,000 0 Total $ 263,000 $ 0 $ 0 $ 120,000 $ 825,000 $ 0 Sidewalk replacement program — this project is at various sidewalk locations throughout the Municipality. Funds will provide for the replacement of deficient sidewalks including cracking, trip hazards and excessive slopes. Regional Rd 57 multi -use path — the construction of a 3 m wide multi -use path on the west side of Regional Rd 57 to service the development and improve safety. This work will be constructed with the Region of Durham's reconstruction of the intersection at Regional Rd 57 and Highway 2. Highway 2 sidewalk (east of Clarington Blvd to Regional Rd 57) — work includes the construction of a concrete sidewalk on the south side of Hwy 2 to service the development and improve safety. This is being timed with the reconstruction of the intersection by the Region of Durham. ClarW#oa Draft Budget 2020 1 140 Bloor St sidewalk (Townline Rd South to Easterly) — sidewalk construction on the south side of Bloor St across the frontage of the development that is under construction. The construction will be completed by the developer with reimbursement from the Municipality. Active Transportation Master Plan — the Clarington Transportation Master Plan included a recommendation for an active transportation master plan. Development of the plan will include public and stakeholder engagement for the framework of future active transportation facilities. Pedestrian crossovers — installation of pedestrian crossovers to improve safety at road crossings. The location of crossovers will be determined through assessment of traffic operations and warrants. Tooley Rd sidewalk (Nash Rd) — Sidewalk construction on the south side of Bloor St across the frontage of the development under construction. Construction will be by the developer. Trulls Rd sidewalk (Avondale Rd to Hwy 2) — sidewalk construction on the east side of Trulls Rd across the frontage of the proposed development, to be constructed by the developer. Regional Road 22 multi -use path (Prestonvale Rd) — A 3 m wide asphalt multi -use path to be constructed on the north side of Bloor St across the frontage of the proposed development. The path will be constructed by the developer. Prestonvale Rd sidewalk (Bloor St) — a sidewalk across the frontage of the proposed development to be constructed by the developer on the east side of Prestonvale Rd. CIarW#oa Draft Budget 2020 1 141 Regional Road 17 (Mill St to CPR) — construction of a sidewalk on the east side of Regional Rd 17 (Manvers Rd) to service existing and future development and improve safety. This sidewalk will serve as a connection to future development in north Newcastle. Traffic Accessible signals upgrade (King St at Roenigk Dr) is the upgrade to existing traffic signals including accessible pedestrian signals, uninterruptible power supply battery back-up and controller cabinet modernization. The improvements will be in accordance with the AODA. Pedestrian countdown indicators will be installed at various locations to improve safety by allowing pedestrians to better judge their walking pace and the time remaining to cross the road. Accessible signals upgrade (King St at Temperance St) is the upgrade to existing traffic signals including accessible pedestrian signals, uninterruptible power supply battery back-up and controller cabinet modernization. The improvements will be in accordance with the AODA. ClarM#on Draft Budget 2020 1 142 Nevelopment Project Tax Levy Financing Reserves Funds Charges Debt Accessible Signals Upgrade — King St at $ 130,000 $ 0 $ 0 $ 0 $ 0 $ 0 Roenigk Dr Traffic Signals — Pedestrian Countdown 126,000 0 0 0 0 0 Indicators Accessible Signals — Temperance St at King 105,000 0 0 0 0 0 St. Total $ 361,000 $ 0 $ 0 $ 0 $ 0 $ 0 Accessible signals upgrade (King St at Roenigk Dr) is the upgrade to existing traffic signals including accessible pedestrian signals, uninterruptible power supply battery back-up and controller cabinet modernization. The improvements will be in accordance with the AODA. Pedestrian countdown indicators will be installed at various locations to improve safety by allowing pedestrians to better judge their walking pace and the time remaining to cross the road. Accessible signals upgrade (King St at Temperance St) is the upgrade to existing traffic signals including accessible pedestrian signals, uninterruptible power supply battery back-up and controller cabinet modernization. The improvements will be in accordance with the AODA. ClarM#on Draft Budget 2020 1 142 Erosion Protection Brookhill Tributary Nick Point remedial work will be recovered from development. The work will be timed with the Region of Durham's reconstruction of the intersection at Regional Road 57 and Highway 2. Erosion protection works will occur within watersheds impacted by increased development. Specific locations have not been identified however work will occur along the main creek systems of Bowmanville Creek, Soper Creek, Farewell Creek, Tooley Creek, Oshawa Creek, Wilmot Creek and Foster Creek. Storm Water Manaaement Technology Park Storm Water Management $ 0 $ 0 $ 0 $ 0 $ 1,600,000 $ 0 Pond Total $ 0 $ 0 $ 0 $ 0 $ 1,600,000 $ 0 The project relates to the master drainage plan for the Clarington Technology Business Park. This project is being advanced at this time to facilitate development of the business park. ClarM#on Draft Budget 2020 1 143 Operations The Operations Department capital requests include parks, cemetery, roads and structures, building and property services, road maintenance and fleet. Parks Various parks upgrades include resurfacing sport courts and/or pickleball courts and Soper Creek ball diamond restoration. Park furniture/equipment includes replacement of playground structures in accordance with CSA Play space guidelines, retrofitting parks and walkways to LED lighting, Argent Park restoration and paving. Cemete Bowmanville Cemetery $ 0 $ 0 $ 0 $ 142,500 $ 1,192,500 $ 0 Expansion Total $ 0 $ 0 $ 0 $ 142,500 $ 1,192,500 $ 0 This project is a development charge funded expansion of the Bowmanville Cemetery resulting from the growth of the area. Work includes detailed site design, construction of the expansion area as well as two lowering devices. ClarM#on Draft Budget 2020 1 144 Replace various Municipality owned retaining walls throughout the Clarington. To respond to drainage concerns in Kendal, an interceptor ditch is being proposed on Kendal Church St at the west limit of the Hamlet. Building and Property Services DevelopmentExternal Reserve Project Tax Levy Financing Reserves Funds Charges Debt Visual Arts Centre $ 0 $ 0 $ 0 $ 25,000 $ 0 $ 0 Various Roof 150,000 0 0 0 0 0 Replacements Various Arenas 0 0 0 50,000 0 0 Newcastle Community 0 0 0 80,000 0 0 Hall Operations Depot 65,000 0 0 0 0 0 Improvements Clarington Stormwater 305,000 0 0 0 0 0 Pond Cleanout 156 Church St 300,000 0 0 0 0 0 Total $ 820,000 $ 0 $ 0 $ 155,000 $ 0 $ 0 Claringon Draft Budget 2020 1 145 Visual Arts Centre will be receiving accessibility retrofits to meet legislative standards. Various roof replacements represent the life cycle repair and replacement of roofs at 37 municipally owned buildings. The 2020 work will include the Newcastle Community Hall. Various arenas include the life cycle repair and replacement of dehumidification units at Orono Arena. Newcastle Community Hall will include exterior envelope deficiencies including the clock tower, cornice and masonry. Other repairs intended to preserve the historical features of the building will also be conducted. Hampton Operations Depot improvements include repair to cracks within the concrete foundation. This is a structural concern if allowed to continue to deteriorate. Clarington stormwater pond cleanouts represent funds to address the back log of pond clean outs. The 2020 ponds will include Horban Wet Pond, Remlark Dry Pond and Westlake Wet Pond. In 2019, the Municipality acquired the former Edna Thompson Building located at 156 Church St in Bowmanville. This work is Phase I of planned improvements to the building which include removal of asbestos, accessibility upgrades and related design work. Road Maintenance - The program provides surface treatment on rural roads throughout the Municipality. ClarW#on Draft Budget 2020 1 146 Fleet Project Fleet Replacement — Roads External Levy Financing $ 0 Reserves $ 0 $ 0 Reserve Funds $ 610,000 DevelopmentTax Charges $ 0 Debt $ 0 Fleet New — Roads 0 0 0 9,500 85,500 0 Fleet Replacement — Parks 0 0 0 130,000 0 0 Fleet Replacement - Cemetery 0 0 0 50,000 0 0 Total $ 0 $ 0 $ 0 $ 799,500 $ 85,500 $ 0 x Fleet replacement — roads are identified in accordance with Council resolution GPS -475-93 "Criteria used to determine when to replace vehicles and heavy equipment". Roads replacement fleet in 2020 includes: 2006 Sterling single axle, 2004 International tandem truck, 2009 Chev 3/4 ton truck, 2010'/2 ton truck 4x4 extended cab with cap. x Fleet new — roads are identified in the development charges study as growth related fleet. The 2020 growth related fleet includes a mini excavator with bucket and lift attachment and other small equipment upgrades. x Fleet replacement — parks are identified in accordance with resolution GPS -475-93 and includes replacement of 2009 Chev 3/4 ton extended cab 4x4 and 2007 Ford 1 Ton Van. x Fleet replacement — cemetery is identified in accordance with resolution GPS -475-93 and includes the replacement of the existing tractor/mower at Orono Cemetery. Claringon Draft Budget 2020 1 147 Community Services Community Services capital requests relate to facilities. Claringon Draft Budget 2020 1 148 DevelopmentExternal Reserve Project Tax Levy Financing Reserves Funds Charges-. Annual Building Studies $ 45,000 $ 0 $ 0 $ 0 $ 0 $ 0 SCA — Heat Pump Compressors 0 0 0 26,000 0 0 Replacement RRC — Rubber Floor 150,000 0 0 0 0 0 Replacement Pad B CCC — Roof 0 0 0 561,000 0 0 Replacement CCC- Women's Sauna 15,000 0 0 0 0 0 Wall Replacement CCC — Fitness 55,000 0 0 0 0 0 Equipment Replacement South Bowmanville 0 0 0 0 0 4,020,000 Design / Construction DHRC — Gym Safety 13,000 0 0 0 0 0 Padding Installation RRC — Pad A Air Curtain 0 0 0 20,000 0 0 RRC — Walk Behind 11,000 0 0 0 0 0 Scrubber Replacement RRC — Pad B Dressing 0 15,000 0 0 Room Door Replacement RRC — Client Services 0 0 0 25,000 0 0 Office Restructure Claringon Draft Budget 2020 1 148 CCC — Domestic Hot Water Equipment Replacement CCC — Skylight Panel Replacement CCC — Women's Gym Change Room Carpet Replacement Facility Safety Bollards / Planters SCA — Pad B Steel Overhead Door Replacement Total 0 0 0 98,000 0 0 0 0 0 16,000 0 0 12,000 0 0 0 0 0 9,000 0 0 0 0 0 0 0 0 10,000 0 0 $ 310,000 $ 0 $ 0 $ 771,000 $ 0 $ 4,200,000 Annual building studies include building condition audits for Darlington Sports Centre (DSC), South Courtice Arena (SCA), Alan Strike Aquatic and Squash Centre (ASC); designated substance surveys and energy assessments SCA heat pump compressor replacement relates to the replacement of four of the 23 heat pump compressors which provide heating for arena common areas. Rickard Recreation Complex (RRC) rubber floor replacement pad B includes the removal all existing rubber within Pad B cold area (dressing rooms, hall, referee room, benches and area around rink) and replacement with new rubber in these areas. Courtice Community Complex (CCC) roof replacement is the first of five years of replacement. The section in 2020 to be replaced is section 401 BUR. ClarM#on Draft Budget 2020 1 149 CCC women's sauna wall replacement includes the replacement of the original 17 -year-old walls, ceiling and bench in the women's change room with a new clear western red cedar kit and new sauna heater. CCC fitness equipment replacement is a partial replacement of fitness equipment according to the equipment renewal program. In 2020, this includes two cross training machines, two treadmills, three spin bikes, and three strength machines. South Bowmanville Design/Construction represents the design and other fees for beginning construction on a proposed South Bowmanville Recreation Centre. This facility has been identified in the development charges study. Diane Hamre Recreation Centre (DHRC) gym safety padding installation relates to the addition of padding on the east and west walls of the gymnasium to improve safety for participants. RRC Pad A air curtain is a project to supply and install an air curtain recessed in the Pad A vestibule. It will also include electric heat to assist in lobby heating. RRC walk behind scrubber replacement will replace the decommissioned scrubber that is no longer in service; there is currently no walk behind scrubber on site for use. RRC Pad B dressing room door replacement will replace some cracked or improperly functioning doors. The existing doors are from 1996. RRC client services office restructure will modify the space to include more workstations, ergonomic structure for staff and drop-in office space. Will improve functional area for staff and public. ClarM#on Draft Budget 2020 1 150 x CCC domestic hot water equipment replacement is required due to improper water flow and inconsistent water heating issues. The work will be on the equipment and components that service the facility's 35 pool and gym showers and 35 sink faucets. x CCC skylight panel replacement relates to the replacement of one cracked/failed lobby skylight panel with a new glass skylight panel. Will also include removal and replacement of two leaking skirt flashing systems and resealing two dome acrylic skylights in the fitness training centre. x CCC women's gym change room carpet replacement relates to replacement of dated carpet in the dry off area of the women's change room. The floor will be replaced with rubber floor tiles which can be dried more efficiently, better maintained and odor resistant. x Various facility safety bollards/planters will include the installation of front entrance bollards or planters to prevent vehicles from entering any area of the facility, to protect patrons and for curb appeal. )GCA Pad B steel overhead door replacement will be the replacement of the door leading into the ice resurfacer room on Pad B. Claringon Draft Budget 2020 1 151 Planning Planning Services capital requests relate to land acquisitions. x Annual contribution for land acquisitions in accordance with Council's adopted land acquisition strategy. Library The Library capital requests are for the Clarington Public Library. x Technology is reduced from 2019 as the Library continues its efforts towards cloud -based systems and virtualized servers. x Collection captures expenditures on multimedia information resources, including books, magazines, CDs, DVDs, e - books, digital audio books, electronic databases and other resources. Claringon Draft Budget 2020 1 152 Studies relates to the preparation of new strategic plan for the Library. The last plan was created in 2010, since that time the Clarington Museums and Archives have now merged with the Clarington Public Library. A new strategic plan would encompass all the areas of service that the Library now provides. Five -Year Capita arecas� The Municipality of Clarington is in the process of aligning its Asset Management Plan, Development Charges Background Study and Capital Budgets. This process is underway to ensure that the Municipality meets its legislative requirements under Ontario's Asset Management Regulations recently passed and coming into effect over the coming four years. The following summarizes the 2020 to 2024 capital forecast. Total Cost by Department The proposed capital budget requests from 2020 to 2024 are summarized by department as follows: Department Corporate Services Clerk's Department Emergency Services $ 722,500 80,000 312,925 $ 722,400 65,000 2,162,500 $ 722,400 35,000 1,900,000 $722,400 35,000 1,340,000 1 $722,400 0 260,000 Engineering Services 15,086,000 17,658,654 19,574,500 17,393,000 18,178,000 Operations 6,245,000 9,866,100 5,820,000 30,665,000 5,140,000 Community Services 5,281,000 46,466,600 1,276,900 1,944,500 1,118,000 Planning Services 703,696 710,733 717,840 725,018 732,268 Libraries / Museums 1 291,765 1 231,765 1 281,765 1 0 1 0 Total Cost 1 $ 28,722,886 1 $ 77,883,752 $ 30,328,405 $ 52,824,918 $ 26,150,668 Clam#on Draft Budget 2020 1 153 Tax Levy Request by Department The proposed tax levy support for the period 2020 to 2024 is summarized by department as follows: Departmenti2022 T 2023 2024 Corporate Services Clerk's Department Emergency Services $ 570,500 4,500 153,925 $ 582,400 35,000 162,500 $ 582,400 0 145,000 $582,400 0 145,000 $582,400 0 210,000 Engineering Services 3,346,536 3,506,536 3,416,536 3,882,000 3,238,000 Operations 3,110,000 3,718,600 2,955,000 2,650,000 2,650,000 Community Services 310,000 2,217,300 964,400 1,734,500 1,118,000 Planning Services 634,717 640,375 646,075 651,817 657,603 Libraries / Museums 164,176 1 104,176 154,176 0 0 Total Cost $ 8,294,354 1 $ 10,966,887 $ 8,863,587 $ 9,645,717 $ 8,456,003 Highlights by Department The following sections highlight significant projects over the coming five-year period. Corporate Services x Annual request relates to IT hardware and software needs. Specific requirements are determined on an annual basis based on changes in technology and lifespan of hardware assets. Claringon Clerk's Department The annual request relates to replacement of existing fleet assets in the Clerk's Department. This includes three Municipal Law Enforcement vehicles from 2021 to 2023 and one animal services vehicle in 2020. Emergency Services Annual requests for SCBA, bunker gear and leather bunker boots remain relatively stable to 2024. Draft Budget 2020 1 154 The forecast to 2024 includes the replacement of five pumpers ($725,000 to $800,000 each), two tankers ($300,000 each), and one rescue vehicle ($850,000) Seven cars will be replaced between 2021 and 2024 ranging in cost from $35,000 to $60,000 each. These "cars" include passenger cars, vans and pick up trucks and related equipment Afire safety house $100,000 is planned for 2023 to replace the fire safety house purchased in 2003 Engineering Services x Annual contributions to the annual programs for parking lot resurfacing and streetlight installations are expected to remain at current levels Major streetlighting projects (greater than $100,000) include: o Regional Rd 57 (Aspen Springs to Baseline Rd) in 2021 - $264,000 o Hwy 2 (Courtice Rd to Boswell Dr) in 2021 to 2022 - $575,000 Cladn#oa o Hwy 2 (Haines St to Bennett Rd) in 2023 - $200,000 o Regional Rd 17 (North of CPR to Concession Rd 3) in 2024 - $205,000 Major parks projects (greater than $400,000) include: o Clarington fields soccer pitch in 2023 and 2024 - $135,000 and $2,700,000 o Brookhill neighbourhood park in 2023 - $620,000 o Northglen East neighbourhood park in 2021 -$650,000 o Foster Creek Trail (Hwy 2 to Grady Dr) in 2021 - $450,000 o Soper Creek Trail phase 3 in 2022 - $450,000 o Brookhill Trail (Stevens Rd to Green Rd) in 2022 - $400,000 Draft Budget 2020 1 155 o Foster Creek Neighbourhood Park West in 2023 - $650,000 o Courtice Waterfront Park in 2024 - $1,500,000 x Bridge work includes the annual work on various structures as identified by the bridge studies. In 2022 there is planned work on the Hancock Rd box culvert south of Nash Rd - $910,000 x Major road projects (greater than $1,000,000) include: o Pavement rehabilitation program will decrease in 2023 to $3,000,000 as a result of anticipated reduction in senior government grants o Concession Road 3 (Regional Rd 57 to Middle Rd) in 2022 and 2024 - $2,275,000 and $180,000 o Haines St (Baseline Rd to Hwy 2) in 2024 - $1,700,000 Claringon o Darlington Blvd in 2021 and 2023 - $1,472,000 and $155,000 o Grady Drive (Foster Creek) in 2024 - $2,750,000 o Rural road rehabilitation annually remains at $150,000 o Concession Rd 3 reconstruction (Gimblett St to Liberty St) in 2021 and 2023 - $980,000 and $100,000 o Lambs Rd reconstruction (Baseline to Hwy 2) in 2023 - $1,320,000 o Trulls Rd reconstruction (Yorkville Dr to Bloor St) in 2023 - $1,990,000 o Arthur St reconstruction (CPR level crossing north 1.13km) in 2024 - $2,000,000 x Major sidewalk projects (greater than $200,000) include: Draft Budget 2020 1 156 o The annual allocation for various locations $183,000 annually o Regional Rd 34 (Nash to north urban limit) in 2021 - $600,000 o Regional Rd 57 (Baseline to Aspen Springs Rd) in 2021 - $364,000 o Hwy 2 (west urban limit to Rudell Rd) both sides in 2022 - $455,000 o Baseline Rd cycling facility (Spry Ave to Liberty St) in 2021 - $260,000 o Regional Rd 57 sidewalk (Aspen Springs to CPR) in 2021 - $210,000 o Tooley Rd sidewalk (Nash Rd to Adelaide Ave) in 2021 - $200,000 o Regional Rd 34 sidewalk (Stagemaster Cr to Bloor St) west side in 2024 - $220,000 o Regional Rd 34 sidewalk (Bloor to GO Station) west side in 2022 - $1,400,000 Traffic signals relate to accessible signal upgrades at various locations throughout the Municipality Streetscape improvements including King St (Regional Rd 57 to Bowmanville Creek) and Frank St (King St to Queen St) are planned in 2021 and 2023 respectively ($594,000 and $360,000) Annual erosion protection work remains stable at $200,000 and is for various locations Operations Annual allocation for park upgrades and park furniture / equipment (i.e. playgrounds) remains stable at $450,000 until 2024 Four columbaria are projected in 2021 to 2024, the cost of these columbaria will be recovered through sales of niches Retaining wall replacement remains consistent to 2024 at $70,000 per year Major building and property projects (greater than $100,000) will include: ClarW#oa Draft Budget 2020 1 157 o Annual roof replacement program remains consistent at $150,000 per year o A new Operations Centre is budgeted over 2021 to 2023 including land acquisition, design and build. The total cost is $27,500,000 o Clarington stormwater pond cleanouts are expected to continue at $305,000 per year for 2021 and 2022 o Administrative space is included in 2021 for $100,000 o Orono Mill Pond is included in 2021 for $200,000 Rural road resurfacing program remains consistent at $2,630,000 each year until 2024 Fleet programs include: o Replacement road fleet varies from $1,235,000 to $2,095,000 each year over the period ClarM#on o New road fleet includes funds in 2021 and 2022 for $475,000 and $310,000 o Parks replacement fleet varies from $40,000 to $280,000 per year to 2024 o Parks new fleet includes $270,000 in 2021 and $80,000 in 2022 o Cemetery fleet includes $170,000 in 2021 Community Services Major facility projects (greater than $100,000) include: o Orono Public Pool will see construction of change room facilities in 2023 - $200,000 o RRC roof replacement in 2021 to 2022 - $202,400 o RRC rubber floor replacement Pad B in 2022 - $130,000 o RRC Pad A lobby / washroom renovation in 2021 - $125,000 Draft Budget 2020 1 158 o CCC roof replacement in phases from 2020 to 2024 - $1,725,800 o Bowmanville Indoor Soccer (BIS) heat and ventilation unit replacement in 2023 - $350,000 o Phase II South Bowmanville design and construction in 2021 - $43,805,300 o SCA rubber sport flooring replacement both pads in 2021 - $130,000 o ASC roof replacement in 2021 - $287,000 o CCC engineered air roof top replacement in 2023 to 2024 - $275,000 o RRC Pad A lobby and public washroom renovation in 2024 - $206,000 o CCC rooftop HVAC unit replacement in 2021 - $122,000 o CCC main pool filter replacement in 2022 - $150,000 o CCC boiler replacements in 2023 - $200,000 o CCC pool slide replacement in 2023 - $300,000 o SCA air handler unit replacement in 2021 - $400,000 o SCA Pad B rubber flooring replacement in 2021 - $135,000 o RRC Pad A west spectator seat replacement in 2023 - $135,000 Annual fitness equipment replacement approximately $60,000 per year Ice resurfacer replacements o SCA in 2021 - $100,000 o RRC in 2022 - $105,000 o SCA in 2021 - $105,000 Clam#on Draft Budget 2020 1 159 Planning Services x The annual capital request provides funding for the Municipality's land acquisition strategy. CIarW#oa Draft Budget 2020 1 160 Glr]rington Draft Budget 2020 1 161 Reserve and Reserve Fund Introduction Reserves and reserve funds allow for long-term financial planning, internal financing of non-recurring operating or capital projects and mitigation of unknown situations that may arise during the course of business that could otherwise result in tax levy fluctuations. Reserves and reserve funds are a key pillar in maintaining a stable financial position. Consistent contributions to reserve and reserve funds are crucial to maintain the financial stability of the Municipality. Reserves A reserve is an allocation of accumulated net revenue that makes no reference to any specific asset and does not require the physical segregation of money. Reserves are part of the revenue fund and therefore do not earn interest like a reserve fund. Clarm#orl Reserve Funds Reserve funds are physically segregated and restricted to meet a specified purpose. Reserve funds are invested in accordance with the Municipality's Investment Policy with all earnings forming part of the reserve fund. There are two types of reserve funds: Obligatory Reserve Funds Obligatory reserve funds form part of the Municipality's deferred revenue. These are funds that are established by legislation or as a requirement of an agreement. The funds are segregated from the Municipality's general funds and may only be used for the purpose as described in the applicable legislation or agreement. Discretionary Reserve Funds Discretionary reserve funds are established by Council and are not required by legislation or agreement. Funds are segregated from the general funds of the Municipality and earn interest which is applied to the balance in the reserve fund. Draft Budget 2020 1 162 Reserve Summary Clam#oa Draft Budget 2020 1 163 Opening Estimated Previously Available Reserve Name End -. �•Year �• �• �� ance 020 Self Insured Losses ($627,726) ($602,673) $72,768 ($529,906) $0 ($529,906) Municipal Acquisition of Property (562,619) (534,993) 0 (534,993) (40,000) (574,993) Tax Write -Off 0 0 0 0 0 0 General Capital (2,357,218) (1,812,044) 1,237,371 (574,673) (2,500) (577,173) Legal Fees (257,692) (222,692) 20,000 (202,692) 0 (202,692) Clarington Heritage Committee (7,946) (6,946) 0 (6,946) 1,000 (5,946) Consulting / Professional Fees (1,038,665) (981,137) 342,970 (638,167) 0 (638,167) Records Maintenance (104,794) (112,708) 65,038 (47,670) (10,000) (57,670) Election Expenses (22,338) (147,338) 0 (147,338) (75,000) (222,338) Fire Prevention Reserve (69,253) (304,552) 0 (304,552) 0 (304,552) Pits & Quarries (13,592) (225,425) 0 (225,425) (570,000) (795,425) Rural Road Rehabilitation (2,168) (2,168) 0 (2,168) 0 (2,168) Park Development (812) (812) 0 (812) 0 (812) Burketon Park Improvement (7,569) (7,569) 0 (7,569) 0 (7,569) Samuel Wilmot Nature Area (49) (49) 0 (49) 0 (49) Total Reserves ($5,072,440) ($4,961,106) $1,738,146 ($3,222,960) ($696,500) ($3,919,460) Clam#oa Draft Budget 2020 1 163 Reserve Definitions The following outlines the purpose of the reserves and anticipated activity for the 2020 fiscal year. Self -Insured Losses Reserve This reserve was established when the Municipality amended our insurance coverage. The savings realized from higher deductibility levels, good claim records and other funds unused for insurance purposes were used to establish the original reserve. The intention is that in any given year a department may request funds from the reserve to cover expenditures incurred as a result of an insurable loss which is not reimbursed by the insurance provider. Municipal Acquisition of Property Reserve The monies in this reserve are for use by Council to purchase properties which would improve the Municipality's real property holdings and thereby assist in fulfilling the Municipality's long-range acquisition ClarW#oa program. The proceeds from the sale of municipal real properties are added to this reserve. General Capital Reserve This reserve was established with the approved transfer of funds to cover capital projects in -progress at year end. Later, the reserve definition was elaborated to provide for contingency items of a capital nature as well to hold funds that were budgeted for capital projects that are incomplete at year end. Currently capital projects that are incomplete remain in the capital fund and the reserve now houses funds that are unexpended for operating accounts and incomplete open PO's. The expectation is that this is a short-term layover of these unexpended funds, with a resolution within a year or two. Legal Fees Reserve The Municipality established this reserve to provide a source of funding for external legal specialists that may be required. The timing of these specialists may not be consistent and is dependent on schedules outside of the control of the Municipality. Annual contributions into the reserve mitigate fluctuations of costs from year to year. Draft Budget 2020 1 164 Clarington Heritage Committee Reserve This reserve was established to provide the committee the ability to increase public awareness and education, conduct research and provide for the general education of cultural heritage conservation issues and admiration of the committee. Funds in this reserve were allocated through previous budget allocations and fundraising efforts of the committee. Consulting / Professional Fees Reserve The timing of consulting and professional work may not follow fiscal years. Unspent funds are deposited into this reserve and may be drawn upon in a subsequent year to fund previously budgeted work. Records Maintenance Reserve This reserve was established to accumulate funds for a significant records management initiative which included the digitization and destruction of older files. This ClarM#on ongoing work receives funding annually from unspent budgeted amounts for records management; this also spreads the cost of major events over multiple years. Elections Expenses Reserve This reserve accumulates the estimated funds required to hold the municipal election every four years. To reduce the impact to the operating budget every fourth year, an amount is transferred into this reserve annually in anticipation of the municipal election. Expenses related to the election, including ward boundary reviews, may be funded from this reserve. Fire Prevention Reserve This reserve was originally established to maintain the operations of the Junior Fire Fighter program. In later years, the Fire Protection and Prevention Act stated that "every municipality shall establish a program in the municipality which must include public education with respect to fire safety and certain components of fire prevention; and provide such other fire protection services as it determines may be necessary in accordance with its needs and circumstances." With this Draft Budget 2020 1 165 shift in fire education focus from fire suppression to fire prevention, this reserve's purpose shifted to accommodate more public education and fire prevention awareness. Pits & Quarries Reserve The Municipality owns its own quarry located on Morgan Road. The establishment of this reserve was at the CIarW#oa advice of staff to charge ourselves the local market price per cubic yard and any surplus realized from annual quarry operations at year end. The logic in doing so was to pay any claims which could result from the use of the site, rehabilitation of the site in accordance with the Pits & Quarries Act and to purchase another site upon depletion of the existing location. Draft Budget 2020 1 166 Reserve Fund Summary Reserve Fund Name 501 - Parking Lot Opening Balance 2019 ($1,036,345) End �� ($1,173,924) Previously $0 AvailableYear �� ($1,173,924) nsfers 020 ($330,000) Available Balance 020 ($1,503,924) 502 - Economic Development (522,742) (502,791) 0 (502,791) (50,000) (552,791) 503 - Roads Capital (361,970) (365,830) 0 (365,830) 0 (365,830) 504 - Parkland Cash in Lieu (2,640,373) (3,032,606) 0 (3,032,606) 0 (3,032,606) 505 - Engineering Fleet (115,533) (121,796) 0 (121,796) (5,000) (126,796) 507 - Westside / Bowmanville Marsh (8,532) 2,019 2,535 4,555 0 4,555 508 - Newcastle Waterfront (204,537) (3,745) 0 (3,745) 0 (3,745) 510 - Strategic Capital (10,080,693) (10,240,660) 0 (10,240,660) 0 (10,240,660) 511 - Municipal Capital Works 1,011,884 594,044 (4,073,968) (3,479,924) 24,429 (3,455,495) 512 - General Municipal (2,959,823) (2,978,494) 0 (2,978,494) 200,800 (2,777,694) 513 - Engineering Inspection (2,553,388) (2,304,083) 12,864 (2,291,219) 503,200 (1,788,019) 514 - Roads Contribution (732,610) (745,681) 621,549 (124,132) 0 (124,132) 515 - Debenture Retirement (269,907) (256,165) 0 (256,165) 14,841 (241,324) 516 - Facilities / Parks Maintenance (549,671) (396,496) 0 (396,496) (15,000) (411,496) 517 - Engineering Parks Capital (302,268) (291,912) 186,350 (105,562) 0 (105,562) 518 - Community Services Capital (526,611) (394,173) 0 (394,173) 50,000 (344,173) 520 - Cemeteries Capital (28,938) (34,277) 0 (34,277) 5,000 (29,277) 521 - Computer Equipment (364,824) (227,789) 0 (227,789) 40,000 (187,789) 522 - Fire Equipment (1,027,843) (1,448,998) 775 (1,448,224) (337,000) (1,785,224) 523 - Animal Services Capital (116,887) (133,764) 0 (133,764) 28,000 (105,764) 524 - Operations Equipment (987,821) (575,580) 0 (575,580) 605,000 29,420 Clam#oa Draft Budget 2020 1 167 Reserve • Name Opening Balance 2019 Year End Balance 2019 Previously Committed • Available Balance 1 • Transfers 2020 Available Balance 2020 525 - Clerk Fleet (28,716) (34,054) 0 (34,054) (5,000) (39,054) 526 - Port Granby LLRW Agreement (181,849) (183,789) 17,637 (166,151) 123,695 (42,456) 527 - Municipal Government Enterprise (27,380,094) (27,380,094) 0 (27,380,094) (30,000) (27,410,094) 528 - Impact / Escrow (141,056) (129,369) 0 (129,369) 0 (129,369) 537 - Clarington Station A Account (827,115) (835,935) 0 (835,935) 0 (835,935) 539 - Older Adults Programming (37,674) (38,076) 0 (38,076) 0 (38,076) 542 - Library Capital (1,688,008) (1,170,592) 914,774 (255,818) (30,000) (285,818) 543 - Library Computer Equipment (329,079) (383,852) 115,000 (268,852) 0 (268,852) 544 - Museum Capital Bowmanville (41,279) (44,738) 0 (44,738) (3,000) (47,738) 545 - Museum Capital Clarke (69,045) (72,800) 0 (72,800) (3,000) (75,800) 547 - Bowmanville BIA (15,020) (15,180) 0 (15,180) 0 (15,180) 548 - Newcastle BIA (116,546) (107,682) 0 (107,682) 0 (107,682) 549 - Newcastle Arena Operating (2,489) (2,516) 0 (2,516) 0 (2,516) 552 / 562 - Perpetual Care and Hampton Union (104,340) (105,452) 0 (105,452) 18,500 (86,952) 554 - Rate Stabilization (5,443,762) (6,686,749) 33,529 (6,653,220) 600,000 (6,053,220) 556 - Community Improvement Plan (111,206) 65,846 3,045 68,891 (12,500) 56,391 557 - Federal Gas Tax Receipts (327,460) (4,470,649) 4,255,920 (214,729) 0 (214,729) 558 - Building Division (3,612,814) (2,644,731) 21,000 (2,623,731) 12,000 (2,611,731) 560 - CSD Building Refurbishment (334,890) (423,989) 0 (423,989) (107,500) (531,489) 561 - Beautification / Tree Planting (8,978) (9,074) 0 (9,074) 0 (9,074) Claringon Draft Budget 2020 1 168 Reserve • Name Opening Balance 2019 Year End Balance 2019 Previously Committed • Available Balance 1 • Transfers 2020 Available Balance 2020 563 - Stormwater Management Pond Maintenance (32,526) (32,872) 0 (32,872) 0 (32,872) 564 - Engineering Review (695,939) (766,262) 0 (766,262) 40,000 (726,262) 565 - Community Emergency Management (348,021) (467,353) 0 (467,353) 0 (467,353) 566 - Parking Lot Rehabilitation (136,005) (288,333) 0 (288,333) 136,657 (151,676) 567 - ASO Benefits (545,911) (551,733) 0 (551,733) 0 (551,733) 568 - Mun Gov't Ent. - Other (1,328,948) (769,595) 96,875 (672,720) 0 (672,720) 569 - Future Staffing (255,674) (509,953) 0 (509,953) (250,000) (759,953) 570 - Provincial Infrastructure (1,016,387) (2,354,254) 2,649,955 295,702 0 295,702 575 - Orono BIA (71,148) (42,577) 3,631 (38,947) 0 (38,947) 580 - General Government (1,715,851) (1,614,145) 1,231,384 (382,761) 333,000 (49,761) 581 - Public Library (1,146,851) (1,260,215) 429,753 (830,462) 198,096 (632,366) 582 - Emergency Services (5,205,042) (5,433,091) 0 (5,433,091) 162,000 (5,271,091) 583 - Indoor Recreation 0 901,888 127,904 1,029,792 1,616,352 2,646,144 584 - Engineering Park Development and Facilities (2,887,278) (2,880,210) 1,437,419 (1,442,791) 1,161,990 (280,801) 585 - Operations (3,997,385) (3,670,678) 1,679,987 (1,990,691) 1,318,500 (672,191) 586 - Roads and Related (25,087,532) (24,762,646) 15,483,527 (9,279,120) 5,535,594 (3,743,526) 587 - Parking (449,737) (462,929) 0 (462,929) 0 (462,929) Total Reserve Fund ($110,101,088) ($114,271,136) $25,251,444 ($89,019,692) $11,549,654 ($77,470,038) CIff,woon Draft Budget 2020 1 169 Reserve Fund Definitions Parking Lot Reserve Fund Funds are deposited into this reserve fund from all parking revenues. The annual cost of providing the parking services are funded through this reserve fund. This includes operating costs such as payroll and fleet as well as the opportunity for capital costs for parking lot construction or reconstruction. Economic Development Reserve Fund These funds are a source of financing for economic development related initiatives and/or incentives. It has been used historically to fund physician recruitment and to plan for contract staff specifically tied to the development of the zoning by-law. ClarM#on Roads Capital Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Parkland Cash -in -Lieu Reserve Fund This is the Municipality's obligatory reserve fund for parkland cash -in -lieu contributions resulting from development approval activities. The reserve fund must comply with the requirements of the Planning Act. This includes land acquisition. Engineering Fleet Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Draft Budget 2020 1 170 Westside / Bowmanville Marsh Reserve Fund This reserve fund stems from historical negotiations that took place, including a land swap with St. Mary's Cement in order to preserve the marsh. The remaining funds are used for the benefit of the marsh and for studies related to flooding, through conservation authority initiatives. Newcastle Waterfront Reserve Fund These funds are remaining from old Waterfront Trail grant monies that were left over at the end of a project. Since they were received for that purpose, the funds remain set aside for future projects related to that area. Strategic Capital Reserve Fund Funds received from a legal settlement with the Federal Government addressing the mitigation and clean-up of the Port Granby Low Level Radioactive Waste site were transferred to this reserve fund after meeting the conditions of the initial trust. A report was approved by ClarM#on council establishing the uses of the principal value as a strategic capital purpose. The intent is that the principal be used for economic development investments whereby the principal is repaid at some point in the future through development agreements. Municipal Capital Works Reserve Fund This reserve fund is linked to growth related capital projects through the Municipality's Development Charges Background Study and By-law. For most growth -related capital projects, there are several types of actions that result in less than 100% of the capital costs being eligible for recovery through the development charges reserve funds. The first is the mandatory reduction of 10% for soft services, the second is the replacement share of the new capital project and the third is the proportion of the project relating to benefit to existing residents. This reserve fund is set up to fund the non -growth share of growth -related capital projects. Draft Budget 2020 1 171 General Municipal Reserve Fund This reserve fund is the depository for interest earned on the promissory notes for the Municipality's investment in Elexicon (formerly Veridian). The balance of the funds is eligible for use for capital projects through the budget process or Council approved initiatives. Engineering Inspection Reserve Fund The fees collected through the Engineering Department's various agreements with developers are deposited to this reserve fund for the costs of the engineering inspection functions provided as part of the subdivision approval process. The general intent is that as developments are a cyclical activity tied to economic swings and outlooks, there is still a requirement to maintain the skills and capacity to perform engineering inspections and provide approvals regardless whether there is a downswing in the economy. As a result, all fees charged for this activity are transferred to the Engineering Inspection Reserve Fund. Annually, through the budget process, a portion of ClarM#on the costs of the engineering section is funded from a transfer to operating from the reserve fund. Roads Contribution Reserve Fund This reserve fund is primarily established as a repository for deposits received through development agreements as contributions for future works that will be required as other developers come on stream in a particular area. Debenture Retirement Reserve Fund This reserve fund was initially established to accumulate funds such that future debt could be avoided. However, there are no ongoing contributions to increase this reserve fund since most debt over the last 15 years has pertained to growth related projects. The current activity in the reserve fund relates to the Darlington Indoor Soccer Club. They had committed to paying the non - growth component of the debenture for the Bowmanville Indoor Soccer facility. The Club makes an annual contribution that goes into this reserve fund and then the Draft Budget 2020 1 172 10% share of the debt financing costs are funded from this reserve fund. Facilities / Parks Maintenance Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Engineering Parks Capital Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Community Services Capital Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the ClarM#on need for increases to tax levy support. It is linked to the Asset Management Plan. Cemeteries Capital Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Computer Equipment Reserve Fund This reserve fund was established to fund the ongoing capital program relating to hardware and software acquisition. It receives annual tax levy support and contributes annually to the capital budget for IT. Fire Equipment Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Draft Budget 2020 1 173 Animal Services Capital Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Operations Equipment Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Clerk Fleet This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. ClarW#on Port Granby LLRW Agreement Reserve Fund Funds received from a legal settlement with the Federal Government addressing the mitigation and clean-up of the Port Granby Low Level Radioactive Waste site accumulated additional interest beyond the amount transferred through the budget to offset tax levy. It was decided to leave some funds in this reserve fund to assist with potential implications in the future, most likely for work around future uses of the site outside the perimeter once they are in the maintenance stage. There is a study on future uses of the excess lands. Municipal Government Enterprise — Other Reserve Fund This reserve fund originated through the Municipal Government Enterprise Reserve Fund. When Newcastle Hydro -Electric Commission amalgamated to originally create Veridian, through the advice of our solicitor as well as then Treasurer, it was determined that our investment in our Government Business Enterprise (Veridian) be Draft Budget 2020 1 174 held in reserve funds rather than in the general fund. This included both our equity share as well as the promissory notes receivable. Over time, this caused complications as the original Municipal Government Enterprise reserve fund held both the investment in Veridian, promissory notes receivable from Veridian, as well as accumulated funds. Determining for budget purposes, what funds were available for council purposes became complex, so it was decided to divide out the excess accumulated funds from the investment and promissory notes receivable. Those excess accumulated funds and accrued interest related thereto were transferred into the Municipal Government Enterprise - Other reserve fund. Most often these funds are used for a purpose tied to energy savings. It has funded energy audits as well as being energy retrofit seed money whereby the original investment is repaid over time from estimated energy savings. ClarW#on Municipal Government Enterprise Reserve Fund As explained in the description above for the Municipal Government Enterprise- Other Reserve Fund, this fund holds the Municipality's investment in Veridian Corporation, including both our equity share and our promissory notes. Impact / Escrow Reserve Fund This reserve fund is a legacy fund generated by the original Host Community agreement for the first construction of OPG (then Ontario Hydro). Clarington Station A Reserve Fund Like the Impact/Escrow Account, this reserve fund was established as part of the very first Host Community agreement with Ontario Hydro (prior to OPG). They are now exclusively under the purview of Clarington Council. There is also likely no longer any obligation as to how the funds should be used but it is still generally understood that the funds would be used to assist with servicing in South Courtice. Draft Budget 2020 1 175 Older Adults Programming Reserve Fund Tax levy funds gradually accumulated when the Bowmanville Older Adults Association was a Board of Council. When they transitioned to an independent charitable organization, the reserve fund was split in half and the balance remaining here is intended for use for the provision of older adults' services administered through the Community Services Department. Library Capital Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Library Capital Equipment Reserve Fund This reserve fund does not have direct tax levy support It is comprised of funds transferred from the library to be held for future library computer equipment needs as well ClarM#on as remaining funds from the library's prior years' capital budgets for library computer equipment. Museum Capital Bowmanville Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Museum Capital Clarke Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. Bowmanville BIA Reserve Fund This reserve fund was originally established from an OMB settlement pertaining to the first round of development of the Bowmanville West Main Central Area. Most of the funds have been utilized but a small Draft Budget 2020 1 176 balance remains available. The BIA would need to request funds for specific purposes through the budget process or through a direct request to Council. Newcastle BIA Reserve Fund This reserve fund was established in relation to principles of understanding for further development of the Bowmanville West Main Central Area. Orono and Newcastle BIA's received an allotment of funds to be administered through the Municipality for implementation of Community Improvement Plans. Newcastle Arena Operating Reserve Fund These are funds transferred by the Newcastle Arena Board with the intent of earning greater rates of return. The fund balance is minimal, and the Arena Board has not produced a plan to contribute to the reserve fund on a regular basis. ClarM#on Perpetual Care and Hampton Union Reserve Fund These are perpetual care funds held in trust for the specific cemeteries identified in our trust statements. Rate Stabilization Reserve Fund The Rate Stabilization Reserve Fund is a very active fund utilized to offset swings in tax levy impacts year to year. Any municipal operating surplus/deficit determined after the external audit is complete is transferred into this reserve fund or funded by this reserve fund. The reserve fund acts as a mechanism to achieve balanced budgets in the sense that a surplus or deficit for a particular year cannot be predicted accurately at the time of the next year's budget approval. Community Improvement Plan Reserve Fund The intent of the reserve fund links to civic improvements. It is anticipated that this reserve fund may provide an option to maintain some features relating to the Draft Budget 2020 1 177 downtowns, that would otherwise be deleted. This reserve fund has a modest annual tax levy contribution. Federal Gas Tax Receipts Reserve Fund This reserve fund has been established to host the Federal Gas Tax funding and to meet the requirements of the funding agreement. This is an obligatory reserve fund as the use of the funds are restricted through AMO. Building Division Reserve Fund The purpose of the reserve fund is to allow reasonable funding to be set aside to address economic fluctuations as well as to fund multi-year requirements such as replacement of software required to provide planning and building services needed to facilitate building activity. ClarM#on CSD Building Refurbishment Reserve Fund This reserve fund was established through budget in a year where a fee increase was established for recreational services and the value of the fee increase was set up as a contribution to this reserve fund rather than a general fund revenue offsetting the tax levy. The contribution has been maintained but further incremental fee increases were not diverted to this reserve fund but rather left in the general fund to offset increased service delivery costs. Beautification / Tree Planting Reserve Fund This is a small reserve fund established from a donation. The hope is that other donations will be received over time that will help fund small beautification projects or tree planting to assist in maintaining tree cover as the municipality develops. Draft Budget 2020 1 178 Stormwater Management Pond Maintenance Reserve Fund This reserve fund was established as a result of updating our subdivision agreement templates to standardized fees for stormwater pond maintenance for the subdivision. The fees are deposited into the reserve fund when received in compliance with the subdivision agreement. The intent is to draw on this reserve fund annually to offset the operating costs of stormwater pond maintenance. It has not been done to date as there is still a small amount of funds in the reserve funds, so we are giving the fund some time to accumulate. Engineering Review Reserve Fund This reserve fund was established as a result of updating our subdivision agreement templates to standardized fees for review of engineering drawings for the subdivision. The fees are deposited into the reserve fund when received in compliance with the subdivision agreement. Annually, through the budget process, a contribution is made to the operating budget to help offset the costs of engineering division review services. ClarM#on Community Emergency Management Reserve Fund Under the negotiated agreements with Ontario Power Generation (OPG), funds are received annually for several specific services provided to OPG. The funds will also be used for the costs of specialized equipment or training to ensure appropriate levels of response. As the Municipality is required to provide assistance and support to others in the event a nuclear emergency should arise, these funds are deposited into this reserve fund for emergency management issues. Parking Lot Rehabilitation Reserve Fund This reserve fund is the funding mechanism for the parking lot asset management plan. As the Municipality owns a significant number of parking lots that have various purposes, a single department did not have consistent oversight of the asset management pertaining to these lots. As the Engineering Department oversees significant capital projects relating to paving and Draft Budget 2020 1 179 stormwater needs, they were given the responsibility to assess and plan the rehabilitation needs of municipal parking lots. The department undertook this work and created a multi-year plan to address deficiencies and needed replacements. The fund currently receives annual contributions from tax levy support. ASO Benefits Reserve Fund This reserve fund was established with the market placement of employee benefits. The savings from that market placement were set aside as a one-time contribution to a reserve fund for the sole purpose of looking towards the Administrative Services Only option for the administration of employee extended health program. Future Staffing Reserve Fund Commencing in 2017, Council created this reserve fund and has contributed annually with tax levy support. The general intent is to create flexibility in the future for new staff requirements. ClarM#on Provincial Infrastructure Reserve Fund This reserve fund has been established to host the Provincial funding grants received and to meet the requirements of the funding agreements. This is an obligatory reserve fund as the use of the funds are restricted through the respective agreements. Orono BIA Reserve Fund This reserve fund is a traditional capital replacement reserve fund that is monitored annually to determine the need for increases to tax levy support. It is linked to the Asset Management Plan. DC Reserve Funds The accounts listed below are the development charges reserve funds for each service level category identified in our development charges background study and by-law. The reserve funds must be used to fund the growth - related costs required to meet the needs of growth. No current year receipts are used for current budget requirements. Balances at December 31st of the year Draft Budget 2020 1 180 prior are to be utilized for the next years' budget requirements. Future projections are done on a regular basis to address capital budget forecasts. The following are the current DC funds: General Government DC Reserve Fund Public Library DC Reserve Fund Emergency Services DC Reserve Fund Indoor Recreation DC Reserve Fund Engineering Park Development and Facilities DC Reserve Fund Operations DC Reserve Fund Roads and Related DC Reserve Fund Parking DC Reserve Fund Reserve Fund Contributions and Transfers The following outline the contributions to the reserves and reserve funds as well as the transfers out to the general fund. Contributions to Reserve Funds: The following are the proposed contributions to reserve funds for 2020. Reserve Fund Number-. Reserve Fund .. 501 Parking Lot Contribution from parking meter revenue $330,000 502 Ind/Econ Dev Reserve Fund Annual budget contribution 50,000 505 Engineering Fleet Annual budget contribution 5,000 511 Municipal Capital Works Development charge by-law incentive funding 250,000 511 Municipal Capital Works Annual budget contribution 285,000 512 General Municipal Purposes Community Care Durham leasehold improvements 49,200 516 Facilities/Parks Maintenance Annual budget contribution, increased $27,000 355,000 ClarW#oa Draft Budget 2020 1 181 Reserve Fund Number• Reserve Fund Purpose • -• 518 Community Services Capital Annual budget contribution, increased $25,000 350,000 520 Cemeteries Capital Annual budget contribution 5,000 521 Computer Equipment Annual budget contribution 100,000 522 Fire Equip Annual budget contribution, increased $25,000 400,000 523 Animal Services Capital Annual budget contribution 7,000 524 Operations Equipment Annual budget contribution, increased $25,500 185,000 525 Clerk's Fleet Annual budget contribution 5,000 527 Mun. Gov't Enterprise Annual budget contribution 30,000 542 Library Capital Annual budget contribution 30,000 544 Bowmanville Museum Annual budget contribution 3,000 545 Clarke Museum Annual budget contribution 3,000 556 Community Improvement Annual budget contribution 12,500 560 Community Services Building Refurbishment Annual budget contribution, increased $22,500 107,500 566 Parking Rehabilitation Annual budget contribution 310,000 569 Future Staffing Annual budget contribution 250,000 Claringon Draft Budget 2020 1 182 Contributions to Reserves The following are the proposed contributions to reserves for the year 2020: Reserve Reserve .. PurposeReserve Number-. Number 501 Parking Lot Parking Enforcement 2903 Municipal Acquisition of Property Parking $40,000 2906 Records Maintenance Annual budget contribution 10,000 2917 General Capital Documentation/Pandemic 2,500 (325,000) 513 Annual budget contribution, increased to reflect 570,000 2918 Pits and Quarries funding increase Indoor soccer debenture 2928 Election Expenses Annual budget contribution 125,000 Withdrawals from Reserve Funds to General Fund: The following are the withdrawals from the reserve funds to fund operating expenses in the general fund in 2020: ClarM#on Draft Budget 2020 1 183 Fund Reserve Fund PurposeReserve Amount Number 501 Parking Lot Parking Enforcement ($286,657) 512 General Municipal Veridian Interest (250,000) 513 Engineering & Inspection Salaries funded from inspection fees (503,200) 513 Engineering & Inspection Offset engineering division expenses (325,000) 513 Engineering & Inspection Offset engineering consulting (50,000) 515 Debt Retirement Indoor soccer debenture (14,841) 526 Port Granby LLRW Naturalization Park development expenditures (123,695) 552 Perpetual Care 2020 Interest revenue (18,500) 554 Rate Stabilization Annual withdrawal to balance budget (600,000) ClarM#on Draft Budget 2020 1 183 Withdrawals from Reserves to General Fund: The following are the withdrawals from the reserves to fund operating expenses in the general fund in 2020 ClarM#on Draft Budget 2020 1 184 Reserve Fund Reserve Fund Purpose Amount Number 564 Engineering Review Engineering Division activities supported by review fees (40,000) 580 D/C - Gen Gov't Plan Studies (333,000) 581 D/C - Library Board Courtice Library debenture (70,507) 582 D/C - EMS Fire Masterplan (80,000) 582 D/C - EMS New Firefighter Uniforms (6,000) 583 D/C - Indoor Recreation Diane Hamre Recreation Centre Debenture (1,466,438) 583 D/C - Indoor Recreation Indoor soccer debenture, non -DC portion (149,914) 584 D/C - Engineering Parks Consulting - Parks Design (13,500) 586 D/C - Roads & Related Engineering Design (75,000) 586 D/C - Roads & Related Green Road Debenture (544,417) Withdrawals from Reserves to General Fund: The following are the withdrawals from the reserves to fund operating expenses in the general fund in 2020 ClarM#on Draft Budget 2020 1 184 Supplementary Information fi ♦ — sery " AL fi . �•� .� . +Mea ,i T � _,� What is Fund Accounting? The Municipality, like every municipality in Ontario, prepares its financial statements in accordance with Public Sector Accounting Standards (PSAS) as established by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada (CPA Canada). The Municipality follows PSAS which is an accrual basis form of accounting. Which means revenues and expenses are recognized when the transaction, service or event occurs rather than when payment is made or received. As allowed under Ontario Regulation 284/09 under the Municipal Act, 2001, the Municipality does not budget for amortization, post -employment benefits or solid waste landfill closure and post -closure expenses. The Municipality uses fund accounting which views each fund as its own entity, with its own assets, liabilities, income and expenses. The use of funds helps to ensure that dedicated or restricted funds are used for their intended purpose. CIarW#oa There are three basic types of funds used by the Municipality: Operating Fund — This fund includes all the assets, liabilities, income and expenses that are not allocated to one of the other funds. Unrestricted funds such as property taxes are recorded through the operating fund. Capital Fund — This fund includes all capital expenditures and the method of funding these expenditures. Funding may be from a transfer from tax revenues, a transfer from reserves or reserve funds, receipt of grants or issuance of long-term debt. Reserve Funds — These funds are individually established to record the assets which are physically segregated to meet a specific purpose. Draft Budget 2020 1 186 The budget process, resolutions and by-laws provide the mechanism for Council to approve the transfer of funds between the funds. The use of interfund transfers within the accounting system provides the necessary accounting trail to ensure that all directions have occurred. It is also for this reason that continuities of reserve and reserve funds are prepared. ClarM#on Draft Budget 2020 1 187 Revenue and Expense Categories Throughout the budget, revenues and expenses are categorized based on their purpose and similarities Revenues Estimated taxation, supplementary taxation, and payments -in -lieu of taxation received. These funds may be collected on behalf of the Province of Ontario or a school board and are remitted to the specific agency. Provincial Grants and Subsidies Grants received from the Province of Ontario for specific functions such as the Ontario Community Infrastructure Fund or specific grant projects. Federal Grants and Subsidies Grants received from the Government of Canada for specific functions such as the Federal Gas Tax Fund or specific grant projects. Claringon User Fees Fees for use of service including, but not limited to, facility rentals, cemetery fees, application for planning and building permits, recreational programming. Licensing and Lease Revenue Licensing fees such as taxi licensing and lease revenues for the long-term lease of municipal facilities and property. Investment Income All investment income earned by the Municipality through its investment holdings, bank account balances and investment in Elexicon. Contributions from Reserves Contributions from reserves and reserve funds for specific purposes as identified with the budget. This is an internal source of funding and may be originally sourced from taxation, grants or user fees. Other Revenues Any revenue that is not otherwise categorized. Draft Budget 2020 1 188 Expenses Salaries and Benefits Compensation for all employees such as salaries, wages, benefits, overtime, allowances and statutory benefits. Materials Includes items such as office supplies, salt and sand, gravel, insurance costs, phone costs and other general expenses. Rent and Financial Costs Bank charges, debt and credit card charges, cost of rental equipment and facility rentals for the Municipality. ClarW#on Purchase / Contracted Services Items that are outsourced, such as professional services, winter clearing and IT software as a service. Debt Repayment Interest on debt repayments to external parties Grants and Transfer Payments Grants given to community groups, external boards and agencies and levies from other organizations. Contributions to Reserves and Reserve Funds Contributions from the general fund for the Municipality's reserves and reserve funds. Draft Budget 2020 1 189 7inancial Pnlinies The Municipality of Clarington has approved several financial policies with the intent to provide consistency with how financial decisions are made. The following are major financial policies adopted by Council. Budget and Financial Control Policy The budget is one of the largest annual policy documents that Council adopts. The budget highlights the priorities for the upcoming year and the allocated resources to provide services to constituents. The proposed budget is balanced with revenues equaling expenses for the year and is tabled for Council review and approval. The policy provides a target range, net of growth, for tax levy increases based on Consumer Price Index and the Asset Management Plan. The policy does require that this range be brought to Council in September of every year for decision on a specific target. For the 2020 budget year, the target range is between 3.1 % and 4.6%; the Council approved target is 2.0%. ClarW#oa Investment Policy The policy establishes guidelines for municipal investments and ensuring compliance with applicable legislation. The Treasurer reports to Council on an annual basis the Municipality's adherence with this policy. The objectives, in order of importance, of the policy are to ensure: Adherence to statutory requirements; Preservation and security of capital; Maintenance of necessary liquidity; and Realizing a competitive rate of return. The Municipality's investments include bank accounts at chartered banks, guaranteed investment certificates, bonds of chartered banks, government bonds and investment portfolios with ONE Investment. Draft Budget 2020 1 190 Procurement Policy The Municipality is legislatively required to approve a procurement policy to establish the responsibilities, controls, authorizations and procedures for purchasing goods and services. This policy is reviewed every five years, the next review period is in 2020. Donations Policy As a municipality, the Municipality is a qualified done for Canadian income tax purposes. The Municipality can issue "official income tax receipts" as prescribed by the Canada Revenue Agency (CRA). To be a donation there must be an intention to give, a delivery and an acceptance and it must be voluntary with no expectation of return. Donations that qualify for an official tax receipt generally include: x Cash; x Capital, real or depreciable property; Claringon x Personal -use property, works of art, jewelry, rare books, stamps or coins; x A leasehold interest or residual interest in a real property; x Donations of life insurance properties; and x Donations made under a will The following items are not qualified donations per the policy: x Contributions of skill or time; x Payments of a basic fee for admission to an event; x Requests by the donor that the Town pay for a portion of the donation; x Requests by the donor that the donation be directed to a specific person orfamily; x Donations that have a direct benefit to the donor or a relative of the donor; and Draft Budget 2020 1 191 Donations made in exchange for consideration of a right, privilege, material benefit such as promotion or advertising. Glossary of Terms The following terms are defined below: x Accrual Basis of Accounting — A method of accounting that recognizes revenue as earned and expenditures as incurred rather than waiting until cash is exchanged. x Actual — Actual (as opposed to budget) revenues and expenditures for the fiscal year as indicated. x Amortization — The gradual reduction of the value of an asset or liability by some periodic amount. In the case of an asset, it involves expensing the cost of the item over its useful life. x Assessment —The Municipal Property Assessment Corporation (MPAC) is responsible for placing an assessment value on all properties in Ontario. In 1998, the Province of Ontario reformed the property assessment and taxation system in Claringon Ontario with the implementation of Current Value Assessment (CVA). The CVA of a property represents its estimated market value, or the amount the property would sell for in an arm's length, open market sale between a willing buyer and willing seller. x Base Budget - In simple terms, a reflection of the budget resources (financial, human and other) that are required to maintain service levels at the level provided in the previous year. x Budget - A financial plan for a given fiscal year showing revenues and expenditures for different funds of the Town. x Budgetary Basis - This refers to the basis of accounting used to estimate financing sources and Draft Budget 2020 1 192 uses in the budget. This generally takes one of three forms: accrual, cash or modified accrual. x Business Improvement Area (BIA) - A Business Improvement Area (BIA) is an association of businesspeople within a specified district, who join with official approval of the Town, in a self-help program aimed at stimulating business. x Capital Budget - The budget that provides for the funding of the Town's expenditures on capital assets, i.e. assets which provide benefits to the Town over several years. x Consumer Price Index (CPI) - A statistical description of price levels provided by Statistics Canada. The index is used as a measure of the increase in the cost of living (i.e. economic inflation). x Current Value Assessment (CVA) — Property value set upon real estate under direction by the Province as a basis for levying property taxes. ClarM#on x Debenture — A formal written obligation to repay specific sums on certain dates. Debentures are typically issued by the Region of Durham and are unsecured. x Debt — Any obligation for the payment of money. Debt will normally consist of debentures as well as short-term notes or cash loans from financial institutions or internal borrowing from reserves. x Deferral — The act of putting off until another time or postponing. x Deficit — The excess of liabilities over assets or expenditures over revenues. x Development Charges Act (DCA) — Provincial legislation that provides guidelines on funding identified growth -related projects in the Municipality from developers. x Expenditure - The disbursement of appropriated funds to purchase goods and/or services. Expenditures include current operating expenses that require the current or future use of net current Draft Budget 2020 1 193 assets, debt service, and capital outlays. This term designates the cost of goods delivered or services rendered, whether paid or unpaid, including expenses, provision for debt retirement not reported as a liability of the fund from which retired, and capital outlays. x Fiscal Year - Any period of 12 consecutive months designated as the budget year. The Town's budget year begins January 1st and ends December 31 st. x Fleet — The vehicles owned and operated by the Municipality. X L — The projection of revenues and expenditures for future years. x Full-time Equivalent Position (FTE) — A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. FTE considers the number of hours per week and portion of the year the position is funded. FTE = (hours worked per week/total weekly hours) x (months funded/12). A year -around full-time Claringon position has an FTE of 1.00. A full-time position funded for six months (1/2 year) has an FTE of 0.5. x Fund - A set of interrelated accounts to record revenues, and expenditures associated with a specific purpose. A fund has its own revenues, expenditures, assets, liabilities, and equity (fund balance). x Fund Balance - A term used to express the equity (assets minus liabilities) of governmental fund types and trust funds. A fund balance is the excess of cumulative revenues and othersources of funds over cumulative expenditures and other uses of funds. x Gas Tax - Funding provided by the Government of Canada as part of the New Deal for Cities and Communities. This Federal initiative is based on a long-term vision of sustainability for Canadian cities and communities, including four interdependent dimensions: economic, environmental, social and cultural. The program is Draft Budget 2020 1 194 intended to achieve results leading to cleaner air, cleaner water and reduced greenhouse gas emissions. x Generally Accepted Accounting Principles (GAAP) - Nationally -recognized uniform principles, standards and guidelines for financial accounting and reporting, governing the form and content of many financial statements of an entity. GAAP encompasses the conventions, rules, and procedures that define accepted accounting principles at a time, including both broad guidelines and detailed practices and procedures. x Grant - A monetary contribution, typically from one level of government to another, to lend support to a specific service, program or function. X L - A rise in price levels caused by general economic activity and growth. x Infrastructure - The system of public works in the Town, consisting of immovable physical assets, that delivers an essential public service (e.g. road network, water and sewer systems, and lighting). Claringon x Interest Income - Revenue associated with the Town's cash management activities of investing cash balances. x - The amount of property tax, in dollars, which is paid by the Town's taxpayers. To determine the tax levy for a particular property, the property's assessment value is multiplied by the appropriate rate for the property's tax class. x Liability — A financial obligation of the Municipality to others. x Long-term Debt Debt which matures more than one year after it is issued. x Municipal Act - Passed by the legislature in December 2001, the Act is designed to allow municipal leaders the autonomy, power and flexibility they need to chart their community's future in a meaningful way and react quickly to change. x Official Plan - A document adopted by a municipal council pursuant to the PlanningActthat Draft Budget 2020 1 195 contains goals, objectives and policies to manage and direct physical change in the Municipality. Official Plans are generally set for a planning period of 20 years and must be renewed and updated every five years. x One-time Item — An item only approved for the current budget which does not form part of the base budget. x Ontario Municipal Employees Retirement System (OMERS) — A defined benefit plan that provides pension benefits for the Municipality's full-time employees. Employees and employers make equal contributions to the plan. x Operating Budget — The budget that provides the various departments with funding for their annual recurring operating costs (e.g. salaries, materials and supplies, contracted services, utilities). Compared to the capital budget, items funded in the operating budget do not give rise to assets that are expected to provide benefits over several years. ClarM#on x Per Capita A measurement of the proportion of some statistic to an individual resident determined by dividing the statistic by the current population. x Property Tax A value -based tax levied on real and personal property according to the property's assessed valuation and the tax rate. x Public Sector Accounting Board (PSAB) — The body of the Chartered Professional Accountants (CPA) that issues recommendations and guidance with respect to matters of accounting in the public sector. Its aim is to improve the financial and performance information reported by governments and other public sector entities for the benefit of decision makers and other users of the information. x Reservt An allocation of accumulated net revenue that is established by Council for a particular purpose. It has no reference to any specific asset and does not require the physical segregation of money or assets as in the case of a reserve fund. Interest earned on the Draft Budget 2020 1 196 invested earnings is reported as operating fund earnings and not accumulated in the reserve. x Reserve Fund - An allocation of accumulated net revenue, like a reserve. It differs from a reserve in that reserve fund assets are segregated and restricted to meet a specific purpose. There are two types of reserve funds. Obligatory reserve funds are required under provincial statute, while discretionary reserve funds are created by Council for a specified future use. x Revenur Monies received from all sources (with exception of fund balances) that will be used to fund expenditures in a fiscal year. x Stakeholders - The person, group or organization that has direct or indirect stake in the Town because it can affect or be affected by the Town's actions, objectives and policies. x Surplus - The excess of actual revenue over operating expenditures incurred during a budget period. Claringon x Tangible Capital Asset (TCA) - Non-financial assets that have a lifespan that extends beyond an accounting period. Also known as a "fixed assets". x Tax Rate — A percentage rate that is used to determine the property tax levy to be paid by a taxpayer within the Town. The rate fora property depends on its tax class, which in turn depends on the type of property (residential, commercial, industrial, etc.). The rate is multiplied by the assessment to provide the tax levy. Rates are established by Council by-law. x User Fees & Service Charges Fees paid by individuals or organizations to the Town for the use of Town facilities (e.g. recreation fees) or for provision of municipal services (e.g. planning). x Vital Statistics Act Responsible for matters such as maintenance of the municipal birth and death registry and issuance of death and burial certificates. Draft Budget 2020 1 197 Acronyms x AMP — Asset Management Plan x ARL — Annual Repayment Limit x ASC — Allan Strike Squash and Aquatic Centre x CAO — Chief Administrative Officer x CCC — Courtice Community Complex x CIP — Community Improvement Plan x CLOCA — Central Lake Ontario Conservation Authority x CPA — Chartered Professional Accountants of Canada x CPI — Consumer Price Index x DC — Development Charge x DHRC — Diane Hamre Recreation Complex x EA — Environmental Assessment ClarM#on x FIR — Financial Information Return x HR — Human Resources x HVAC — Heating, Ventilation, and Air Conditioning x LED — Light -emitting Diode x MAC — Municipal Administration Centre x MPAC — Municipal Property Assessment Corporation x MTO — Ministry of Transportation x OCIF — Ontario Community Infrastructure Fund x OReg — Ontario Regulation x PSAB — Public Sector Accounting Board x RF — Reserve Fund x RRC — Garnet B. Rickard Recreation Centre x SCA — South Courtice Arena Draft Budget 2020 1 198