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HomeMy WebLinkAboutCS-06-86TOWN OF NEWCASTLE REPORT File # /�T Res. # By -Law # MEETING: General Purpose and Administration Committee (Budget Meeting) DATE: JANUARY 27, 1986 REPORT #: CS -06 -86 FILE #: _x..86 St1B.1ECT : Community Services Department 1986 Capital and Operating Budgets RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee i recommend to Council the following: - l. That report CS -06 -86 be received for information supplementary to budget deliberations. BACKGROUND AND COMMENTS: Capital Budget Analysis The overall presentation of the capital budget for the Community Services Department is slightly different this year from previous years. Equipment A summary of equipment for our department has been included this year. This format is similar to the one used by the Works Department and clearly demonstrates the present inventory of major equipment and our proposed long term replacement program. It is proposed that the Parks and Recreation Equipment reserve fund will be replenished yearly. This is similar to the manner that the Works Department Equipment Reserve fund is replenished through operating budget. ../2 General Purpose and Administration Committee (Budget Meeting) Report # CS -06 -86 Page 2. The department has made significant improvements in the past few years to its equipment inventory. However, if we wish to improve our efficiency in the grass cutting area we should upgrade our mowers and grass cutting equipment this year as outlined in the budget. Two vehicles are requested this year. One is a van for the preventative maintenance function. The van will also be used to transport paper products, chemicals etc. which should be transported in a covered vehicle. The other vehicle is a small truck to be used by the Parks and Cemetery Foreman. At present he either uses his own vehicle or uses trucks intended to be used by our grass cutting crews, disrupting our work programs. Park Projects The capital parks projects for 1986 are detailed in the Capital Budget document. The emphasis this year is to acquire adequate land in the Courtice area for a Community Park and to improve and develop existing neighborhood parks. The 5% parks reserve fund is ear - marked for these types of projects. Facility Projects There are no major capital projects on recreational facilities scheduled for 1986 in anticipation of the new arena complex proposed for 1987 and a new administration facility in 1986. Cemeteries In 1983 an analysis was conducted to ascertain the projected future requirements -for lots in the Bowmanville Cemetery. Based on then current statistics using an average of 109 burials per year the cemetery would have 20 - 25 years life expectancy. Based on the past 2 - 5 years we are experiencing a significant increase in burials. (119 in 1984 and 135 in 1985) It is still difficult to accurately predict the life expectancy of the cemetery. However, we feel a more realistic figure, taking into consideration the potential growth of our community, would be 10 - 15 years. ../3 General Purpose and Administration Committee (Budget Meeting) Report # CS -06 -86 Page 3. It is with the above in mind; that funds are provided for the possible expansion of the cemetery. Community Services Reserve Funds Status These figures may be subject to adjustments: Balance Oct. 28, 1985 Proposed 1986 Expenditures Equipment Reserve 34,992 34,800* 5% Parks Reserve 438,256 318,200 Lot Levies 285,994 75,600 *budgeted to replenish by 45,000 from operating budget Operating Budget Analysis Bottom Line Net Expenditures General Government 1985 Budget 1986 Proposed % Increase(Oecrease Facility Maintenance 89,046 90,319 1.4 Cemetery Services 60,412 56,674 (6.6 %) Recreational & Cultural Services 869,614 949,076 9.1 TOTAL 1,019,072 1,096,069 7.6 In analyzing the above net figures there are essentially only two factors that account for the proposed increase of (76,997) 7.6 %. The first is wages, 4.5 % has been approved for 1986. In our budget this increase represents just under 4 % of the 7.6 increase. The second largest increase is due strictly to a 121% (37,830) increase in insurance premiums for our department. This represents 3.7 % of the 7.6 %. The remainder of our budget increases are off set by projected increases in revenues. Structure A comparison between the 1985 and 1986 proposed budgets will show a slightly different format or presentation. In each division or function summary a net expenditure summary page has been added to show the net effect on taxes. In prior year only the gross expenditures were shown. is General Purpose and Administration Committee (Budget Meeting) Report # CS -06 -86 Page 4. Each facility or program now shows all revenues projected and the net effect on taxes. In the Recreation and Cultural section a number of format changes have taken place: Administration now includes all licensed vehicles in our department. It was felt that since the vehicles were used for all sections of our department it made more sense to budget them against administration than all against parks. All advertising and promotion has also shifted to administration. Orono Park is now under the parks budget. Concessions have been separated out of their facilities for easier control. This will also give us a better picture of the profits made in concessions. Programs directly operating in a Town facility have been included in that facility. This gives a true picture of the deficits of each facility. Combining these figures demonstrates clearly that the programs conducted in these facilities do not cover their overhead; that is we are NOT in a total 'user pay' situation with any programs. DETAILED ANALYSIS General Government Facility Maintenance Our department is in the process of conducting facility audits and energy audits on all our buildings. The Corporation owns over $20,000,000 worth of facilities on which is conducted regular maintenance but minimal preventative maintenance or conservation maintenance. A separate report will request council to establish a Building Conservation Reserve Fund which will serve to fund energy conservation projects and major capital repairs, renovations, or replacement of our existing facilities. As part of this report we will also be requesting possible staff realignments to this section as part of the report on restructuring our department. ../5 General Purpose and Administration Committee (Budget Meeting) Report # CS -06 -86 Page 5. Our department is now responsible for preventative maintenance of the Bowmanville and Clarke Libraries as per the additional budget sections. These additional costs to our department should reflect in appropriate decrease in the Library's operating grant request for such items. Cemetery Services This section is showing a decrease this year for a number of reasons. The amount of capital expenditures on the tax levy in 1985 is more than proposed in 1986 and the Clarke Pioneer Cemeteries Board have significantly decreased their grant request for 1986. Recreational and Cultural Services As mentioned earlier the restructuring of this division has effected the bottom line of some facilities and programs. It must be noted that if some of the capital equipment or other projects are not approved some increases in operating expenditures may be required. The Newcastle Minor Hockey program is presently under review and /or report will be coming to Council shortly. The Newcastle Village Figure Skating program is also under review and it will be proposed that this program be turned over to the Club to administer. These proposed changes are reflected in the budget. As mentioned earlier the two major contributing factors to the increase in this division are the wage increases and the insurance premium increases. Respectfully submitted, r Jan Devantier, Director Department of Community Services JD *sa