HomeMy WebLinkAbout05/03/1999 (Special Budget) I
MUNICIPALITY OF
(C�Ilarington j
ONTARIO
i
I
SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: MAY 3, 1999
TIME: 1:30 P.M.
PLACE: COUNCIL CHAMBERS
1 . ROLL CALL
2. DISCLOSURES OF PECUNIARY INTEREST
3. REPORT
(a) TR-23-99 - 1999 Current Budget
Opening Remarks - Chair
- Treasurer
Presentations - Chief Administrative*Officer
- Municipal Clerk
- Treasurer
- Fire Chief
- Director of Public Works
- Director Community Services
- Acting Director of Planning and Development
- Library Board (approximately 3:00 p.m.)
- Bowmanville Museum (approximately 3:15 p.m.)
- Visual Arts Centre (approximately 3:30 p.m.)
4. UNFINISHED BUSINESS
5. OTHER BUSINESS
6. ADJOURNMENT
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET• BOWMANVILLE -ONTARIO • L1 C 3A6 • (905)623.3379 • FAX 623.4169 "ICYCL
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PORT
TRCUR99
SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Meeting: File#
May 3, 1999
Date: Res.#
Report#: TR-23-99 File#: By-law#
Subject:
1999 CURRENT BUDGET
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report TR-23-99 be received for information,
2. THAT the 1999 Current Budget which includes the Executive Summary and
external budgets, be approved, with the non-controllable and priority #1 items
identified on Attachment #2 ,
3. THAT Council give consideration to those items identified as priority # 2 on
Attachment#2,
4. THAT the appropriate by-laws to levy the 1999 tax rates for Municipal, Region
and Education purposes be recommended to Council for approval,
5. THAT Clarington Library Board, Visual Arts Centre and Museums be advised of
Council's actions.
Background and Comments:
1.0 Capital Budget
1.1
The 1999 Capital Budget was approved by Council through Report TR-15-99 on April 12, 1999.
This allowed the Municipality to tender required construction contracts and proceed with other
capital projects while the current budget was awaiting finalization of Provincial numbers.
1.2
The grant requests were also dealt with separately through Report CS-06-99 on March 29, 1999.
TR-23-99 Page 2
2.0 Current Budget
2.1 Non-Controllable and Priority #1 Items
The current budget reflects those items classified on Attachment #2 as non-controllable and
priority #1. These items represent the increase to the 1998 tax base and have municipal tax
implications.
2.2
The non-controllable impacts result from service levels previously committed to and include such
items as 24 hour Fire Service in Courtice, the Collective Agreement negotiations, reinstatement
of the transfer to the Reserve Funds for the tax portion of development charges, the Board of
Trade 1999 funding, net impact of Street Light charges and various other expenses over which
the Municipality has no influence.
2.3
The Priority #1 items are required to maintain current levels of service. Many of the items were
removed from past budgets in order to maintain the zero percent impact. The departments, over
the past few years have accommodated many adjustments and assessed which are required to be
reinstated to effectively maintain the existing levels of service. For example, the Public Works
request for two light equipment operators will only fill two out of the eight existing vacancies in
their division.
2.4
There are some items recommended which are new additions to the base, but are required
because of growth, to maintain existing service levels; for example the recommended addition of
the fire prevention officer. The merits of each department's recommendations will be elaborated
on during their respective presentation.
2.5
The tax implications and the impact of Bill 79 are ongoing and are reflected in the non-
controllable costs. The Municipality of Clarington is accommodating all the pressures of growth
along with the effects of downloading with no Provincial funding, neither through Community
Reinvestment Funds such as those received by other area municipalities, nor direct grants of any
kind. Finance staff resources have been almost entirely devoted to the implementation of Bill 79,
as is evidenced by the overtime accumulated. The situation is not expected to improve due to the
permanent changes imposed through legislation and the fact that only 20% of tax changes are
introduced through Bill 79 and the exit strategy to deal with the 80% impact is pending.
2.6
The Community Services Master Plan request is to update an approximately ten year old analysis
of the community requirements in response to growth. This study will support the direction of
the development charge capital plan. In addition, the Planning consulting fees have been
increased to account for projects such as the CAUSE study. These studies will be discussed by
the Department Heads during deliberations.
TR-23-99 Page 3
3.0 Priority #2 Requests
3.1
The items identified as priority #2 are requests put forward for Council to consider. They are
generally enhancing service levels or responses to demands experienced by departments from the
effects of growth. In some cases the effects may be deferred to next year's budget, however
Council should be aware that these items may escalate to a priority #1 consideration in future.
There are also other known impacts on the 2000 budget; ie. the third year of the Courtice phase-
in for fire service; the third year of the financial system phase-in; the second year of
negotiations impact; the third year of the phase-in of the support to the roads pavement
maintenance program, etc.
3.2
The recommendation for inclusion of all priority #1 items, assists in alleviating some of the
pressures that might otherwise transfer to further impact the year 2000 budget.
4.0 Staffing:
4.1
As mentioned above, there are for the first time in many years, some staffing recommendations
reflected in the 1999 budget. In some cases the recommendations are to fill currently vacant
positions that have been left vacant as cost cutting measures. As the municipality continues to
grow all of the departments are performing additional responsibilities and functions. In some
cases continuation with the existing complement will actually erode the level of service because
the same staff are serving an increased number of residents and physical attributes; for example
fire prevention officer, building services/property management, and public works equipment
operators. In other cases the municipality has experience burn out and loss of key staff with
replacement at a higher cost, such as the Tax Collector due to increased accounting pressures.
The cost associated with overtime accumulation in some cases will offset the cost of the human
resource adjustments; ie. finance. The recommendations related to staffing do not increase
service levels but assist in maintaining existing levels, with the minor exception of the Animal
Services increase of part time hours in order to increase the present level of service.
5.0 Garbage Rate
The garbage rate continues to be collected based on a flat rate applied to each collection stop.
The rate is calculated based on tonnage as follows:
1998 1999
Municipal Collection $ 48 $ 44
Regional Disposal etc. 77 101
$125 $145
(Region Rate Subject to minor reduction in tipping fee - rate will be adjusted accordingly)
The increase in the garbage rate is primarily due to the elimination by the Region, of the subsidy
to the garbage charges from their Stabilization Reserve. This has caused the tipping fee to
increase from $86/tonne in 1998 to $91/tonne. Also the municipal collection contract has
increased, in accordance with their contract, by approximately 3% which is to represent the
consumer price index. In the other area municipalities, garbage is charged on an assessment
TR-23-99 Page 4
basis, thereby making the increase more dramatic for many properties. In Clarington the flat
rate application ensures that the charges are collected evenly and on the same basis (tonnage) that
they are charged to the municipality. The charge has been stabilized by bringing in a transfer at
the municipal level of $110,000, which has lowered the municipal portion of the charge from
$48 to $44.
6.0 External Agency Budgets
The Library, Museums and Visual Arts requests were classified into non-controllable, priority #1
and #2 costs. Their detailed submissions are included in the draft print of the budget, and they
have been invited to attend budget deliberations to present their requests. The Clarke Museum
has notified staff of their intention to appear as a delegation to the Council ratification meeting of
May 10, 1999.
7.0 Conclusion
Attachment #1 shows the impact of the non-controllable cost for all agencies and the
Municipality's priority #1 requests at 1.62%. Inclusion of the priority #1 requests from the
Library, Museums and Visual Arts Centre bring the total operating impact to approximately
2.15%, which results in a revised tax base of$16,248,549.
Respectfully Submitted Reviewed by
ie A. Marano, H.BSc., AMCT Franklin Wu, M.C.I.P.,R.P.P.
Treasurer. Chief Administrative Officer
MAM/pp
Attachments:
Report TR-23-99 Attachment#1
Page 1
1999 CURRENT BUDGET - SUMMARY
[Totals] Impact (Cumulative $Per Household
[From Page 21 [Annual] [Monthly]
Add:Operating Increases: [Net of Operating Revenue]
Non-Controllable[Including Library&Externals $ (5,606) (0.04) $ (0.20)
Priority#1 Town Only 243,500 1.66 8.89
Library-Priority#1 68,160 0.46 2.08 2.49 $ 0.21
Museums&VAC 9,724 0.07 2.15 0.36 $ 0.03
77,884 $ 2.84 $ 0.24
Combined Town&Externals Including Priority 0.96
1998 TAX BASE 14,680,382
PROPOSED 1999 TAX BASE(including Priority#1) 16,248,549 [subject to rounding]
GARBAGE RATE : Regional Charge 101 [subject to Region Reductionli
!Municipal Charge 44
Garba a Flat Rate 145
PRIORITY#2 IMPACT: % Cumulative
Impact % Annual$ Monthly$
PRIORITY#2 Considerations: Town 185,000 1.26 3.41] 18.29 $ 1.52
PRIORITY#2 Considerations: Library 93,649 0.64 4.0511 21.71 $ 1.81
Total All Requests 594,427 1 4.05
NOTE:
Addition of $100,000 adds approximately..7%to tax base&$3.50 to tax bill
Addition of $ 50,000 adds approximately.3%to tax base&$1.80 to tax bill
I I
23-Apr-99 I DNS97xINCR Report TR-23 99 Attahcrosnt#2
1999 OPERATING BUDGET Page 2
Impact by Department
OPERATING:Additional Expenditures over 1998 Base Expense Reserve Non Controllable Prlorit #�Prlorlt
F ltemp Contribution Net Impact Maintains Service [Increases Service
Administration: I_
1 Negotiation CUPE/Fire/Part time Incl.@ Jul /99 _ 325,000
2 Legal-Arbitrations/N otiations&General 42,000
3 Board of Trade 35 to$50 to$75,000 in 2000 15,000
4 Building Services-lead hand reallocated from P.W.on full time basis 25,000
5 Economic Development- rintin -citizen newsletter/survey etc. 35,000
Clerks:
6 Transfer to Reserve For Records Retention/Animal Services net incr.]20,000
7 Animal Services-Buildin Heat$9,500Ancrease P.T.hours$8500 9,SD0 8,500
Finance&Unclassified Administration:
8 Bell-phone upgrade,intemet,new Fire&C/S program line costs 25,000
9 Transfer to Municipal Capital Works Reserve Fund ax Component.of Dev.Ch 120,000
10 Bill 79 Im lic-ations stain -new Acct Mana er/overlimefrax Coll 35,000
11 GIS Contract&im lementation 60,000 40,000 20,000
i
Fire:
12 Fire Service-Courtice 14 men hired in 98 full r/4 men in'99 @112yearl 160,000 100,000 60,000
13 Fire Rural House Numbering Re:PD-2-99 contribution 1 130,000 0,000 60,00
14 Canatex Exercise-included in tax base,subsidized by Escrow Res.Fund 75,000 5,000 _[
15 Fire Prevention Officer ffull year budget] 50,000 1
Public Works:
16 C.B.O.Position/benefits full ear 50,000
17 Public Works-Add back 2 Lt.Equip.Operators to complement lone as Priory#1 40,000 40,00
18 Snow Clearing-Sidewalks 40,00
18 Parks Maintenance-temps for maintenance of parks at expected service levels 40,000
19 Buildin 2&Plumbin2 Ins actor for increased ins ections I 45,00
Communit Services:
20 Community Services, Departmental reor anization 44000
21 Consulting Services -Master Plan 35,000
22 Grants-Community Organizations 7000
23 Grants-Valleys 2000 Insurance 9,000
Planning:
24 PD-125-98 X uard added to budget 15 000
251 Consulting Services;re CAUSE studies etc. 30,000
General: -- (
261 Net:Normal Budgetary Increases,Training,Heat, Insurance,Pay Equity,Le al.Etc 132,128
271 Street Lights added to eneral le net 79,000
1,027,628 243,500 1851,00
Revenue:
28 P.I.LJ&Rt.of Way Linear Property Tax (150,000)
29 Surplus Applied-increase from$800k to$1,025k (225,000)
30 Buildin2 Permits/Pena &int.on Taxes&other general revenue (100,000)
31 IOmers Holiday $130,in 98 budget,additional (30,000)
32 Other general revenue increases(including rounding from growth_calculations) (60,000)
Total Revenue Increase 665,000 _
33 Growth-estimated value contributed by rowth ft 3.5% (525,043)
totals to Pq.1
MUNICIPAL ONLY-OPERATING:NET IMPACT ON TAX BASE [total to page 11 6 /!t 2.8;5pC ?.,.'
EXTERNAL AGENCIES BUDGET REQUESTS
Non-Cotrollable Priorit #1 Prior #2`
1999 Request 19"Girard %over 1999-Non Ctr.
34 Library-(neg'ns)/Pr.#2=incr Services[Excludes Main Library Trf]99=31,103,477 1,056,608 4.63 47,869 68,160 93,64:
35 Bowmanville Museum 1999 Re - I=$60,990 58,010 6.14 2,980 _
36 Clarke Museum 1999 Request=$67,218 57,403 5.19 2,980 6,835
37 lVisual Arts Centre 1999 Request=$47,000 41,131 7.25 2,980 2,889
Sub-lotal i 66,809 77,884 93L64,1
Note:Museums&Visual Arts Requests have been placed in Non-Controllable&Priority#1 based on Bowmanville Request.
TOTAL REQUESTS -MUNICIPAL&EXTERNAL BUDGETS (5,606)1 321,384 278,64£