HomeMy WebLinkAboutTR-21-93 THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: SPECIAL GENERAL PURPOSE & ADMINISTRATION COMMITTEg#
Date: MARCH 5, 1993 Ekes. #
By-Law#
Report File #:
TR-21-93
Subject:
1993 CURRENT BUDGET AND 1993 CAPITAL BUDGET
AND FOUR YEAR FORECAST
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT report TR-21-93 be received for information;
2 . THAT the 1993 Capital Budget (Schedule #1) and the 1993
Current Budget (Schedule #2) be approved, as outlined in
Report TR-21-93;
3. THAT the Executive Summary provided as Schedule #3 be
received for information.
4 . THAT the Four Year Forecast be endorsed in principle.
BACKGROUND
1. Proposed Overall Increase:
1.1 Budgets
The proposed 1993 Current Budget and 1993 Capital Budget and four
year forecast are presented for Council 's consideration.
1.2 Mill Rate Increase
The 1993 mill rate for municipal purposes only, has been
calculated as follows:
Municipal Mill Rate 1993 1992 %
Proposed Actual Increase
Residential 138 . 925 137 .557 0 .99%
Commercial 163 .441 161 .832 0 .99%
These calculations are based on the attached capital and current
budgets (Schedule #1 and Schedule #2 respectively) .
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1.3 External Budgets
The following externally and independently prepared budgets have been
incorporated in the mill rate calculation above and are identified
here for Council's consideration as the detail of these particular
budgets are not subject to staff input or adjustment by rather are
recommended to Council by the respective boards .
1993 1992 Percentage
Request Actual Increase
Library - (Net of R.F) - operating $831, 108 $819, 150 1.5%
- West Br. 65,033 0 -
- New Courtice Br. - Capital 105,625 113,500 - 6 . 9%
Museums - Clarke 58,403 58,340 0 . 1%
- Transfer to Reserve Fund 7,000 7 ,000 -
- Bowmanville 58,010 57,150 1 .5%
- Transfer to Reserve Fund 15,000 15,000 -
Handi Transit 99,700 96,000 3 . 9%
Visual Arts 35,360 34,000 4 . 0%
If consideration is given to reduce the proposed budgets for the
Visual Arts Centre and Handi Transit to reflect a 1.5% increase over
the 1992 approved budget the impact would be a savings of
approximately $2,800 . The 1993 Library proposed budget includes a
provision for some collection of books and staff for the Western
(Courtice) Branch. The Members of the Library Board will be in
attendance at one of the budget discussion meetings to discuss this
budget in detail.
The current budget has included transfers to the Museum Reserve Funds
as identified above for the past several years . The balance in these
reserve funds at December 31, 1992 is as follows:
Clarke Museum Capital $69,682
Bowmanville Museum Capital $78,228
Council may wish to consider whether these transfers are required on
an ongoing basis.
1.4 Budget Preparation
The proposed 1993 current budget, which also reflects the cost
associated with all the capital projects, has been addressed at the
Staff level in such a manner as to provide an acceptable but efficient
level of service giving consideration to the more difficult economic
climate. This year in particular, the approach has been to
concentrate on efficiencies in operations so as to provide appropriate
levels of service for less overall cost. At the same time staff have
had to be cognizant of the requirement to incorporate as much as
TR-21-93 Page 3
possible of the capital works identified in the Development Charge
Policy report within the overall 1 .5% increase guideline approved by
Council. Also the proposed budget has incorporated various increases
beyond the control of the municipality. Some of these increases
relate to operations and issues such as the fire arbitration award,
and various utilities .
2. Tax Impact Comments
2.1 Historical Review
The impact of the proposed 1993 budget is considerably lower in
relation to previous year increases . The historical mill rate
increases (which reflect capital and current budget requirements) , and
assessment growth values are as follows:
Mill Rate Increase Assessment Growth (�)
1993 proposed 0 . 99 4 . 1
1992 1.40 5 .6
1991 4 . 80 6 .5
1990 7 . 87 12 .5
1989 9 . 97 8 . 0
2.2 Current Year
The current years 's reduction in mill rate impact is primarily due to
the assessment growth, of 4. 1% and overall attempts by all departments
to maintain the 1.5% or less impact on operations . In addition the
prior year's ( 1991) surplus of $1,000,000 which was identified in
report TR-39-92 for application to the 1993 mill rate has been
applied. , As was detailed in the year end report this surplus was
created in the prior year for the most part by interest earned on
investments which yielded a greater rate than was anticipated combined
with higher grant in lieu of taxes from Ontario Hydro.
2.3 Levels of Service
There have been adjustments to levels of services built into the
proposed 1993 Budget in order to provide the taxpayer with a minimal
increase while still accommodating the additional services required to
be provided to new developments . Some of the service level
adjustments include: number of grass cuttings in parks and along
roadsides, number of times surface treatment is done on roads, and
reduction in staff overtime throughout the Corporation. This may
ultimately reduce the response times related to the processing of
documentation.
In an attempt to quantify the specifics related to costs for various
service levels most departments have started to compile relevant
statistical information and will be prepared to discuss these during
the 1993 Budget deliberations . It is anticipated that this process
will be refined over time to enable Council to make informed
decisions . J
TR-21-93 Page 4
3. Reserve and Reserve Funds
The Public Works Department, Community Services and Fire Departments
as well as the Library have again proposed fairly significant draws on
the Lot Levy Reserve Funds to keep the capital impact on the tax levy
at a minimal level and at the same time continuing with the necessary
capital works . The proposed contributions and appropriations to these
funds as well as the financial category draws on the specific reserve
and reserve funds are presented together with anticipated balances in
the executive summary which accompanies the Budget documents . It is
anticipated that there will be ample funding to provide for the four
year forecasted capital requirements and adjustments will be reflected
as necessary as the year becomes current.
4. Capital Projects
The capital works projects are reflected in detail in the proposed
Capital Budget for 1993. The capital budgets for projects as they
relate more specifically to Public Works and Community Services are
supported by the Development Charges Report documentation. The
Development Charge Policy Report identifies a municipal contribution
in excess of the existing base of approximately $1.2 million annually
over the 10 year period in order to implement the capital works
projects . In fact the 4 . 1% assessment growth has contributed
approximately $400,000 additional dollars towards the roads capital
programs that would otherwise be added to the household tax base.
This combined with the proposed transfer to the Development Charge
Reserve Fund for Municipal portion, at the same value as 1992 of
$450,000, will help to ensure the continued commitment to the Capital
Program.
5. Operations Programs
5.1 New Initiatives
The Clerk's Department plan to continue with the implementation of a
municipal code manual, and computer software, which co-ordinates all
municipal by-laws and related legislation. This project was
identified and all necessary funds provided in the prior year ( 1992)
Budget and unexpended funds to complete this project have been carried
over to a reserve for use in 1993.
Economic Development has been the subject of a separate report to
Council, and it has been provided for in the current budget in
accordance with that report. The report identifies a contribution
from the Reserve Fund for Economic Development in the amount of
$95,000 to cushion the overall impact. This has been incorporated
into the 1993 Budget.
Other new initiatives include the Volunteer Recognition Awards Program
which is reflected in the Clerk's Department budget. Health and
Safety legislation changes have placed an additional onus on the
Municipality to ensure appropriate certification requirements are met.
TR-21-93 Page 5
The Green Committee presented a report to Council in 1992 which
identified some areas that could be targeted for improved
environmental efficiencies . One of these initiatives, hand dryers in
all municipal washrooms, has been included in the 1993 budget for
Council's consideration. There are detailed sheets in the capital
budget for this proposal. It is recommended in these detailed
analysis, that the funding for this come from the Administrative
Improvement Reserve Fund. This fund has been used over the past few
years to provide for just such minor deficiencies in the Municipal
Administrative Centre. The estimated balance in this fund after the
proposed 1993 draw of $9200 is $ approximately $8000 (see section B -
Executive Summary) .
5.2 Legal and Consultinq
Legal fees and consulting have been subject to considerable focus over
the past few years . Legal issues have been increasingly more complex
and more frequent from all departments . The 1992 actual cost is
estimated to be approximately $200,000 and has included issues such as
the Victoria Park Letters of Credit, Curators contracts, Development
Charges, Credit Union status for Municipal banking services, road
closures, land acquisition investigations, by-law investigation and
enforcement issues.
With the exception of significant issues such as Laidlaw and Ontario
Hydro, which will be brought to Council as separate issues for funding
consideration, the 1993 Budget value of $200,000 is considered to meet
the Corporation's requirements .
Consulting fees overall have been reduced in Community Services and
Planning as a result of substantial completion of many of the initial
phases of some of the ongoing studies (ie Waterfront C.A.U.S.E. , Main
Central Area Study and Recreation Masterplan) . The Public Works
consulting budget is specific to the capital works projects identified
in the capital budget and are eligible for subsidy funding. In
reviewing these items in the Executive Summary it must be kept in mind
that these charges are project specific and since each project has a
separate account number, the entire roads construction budget must be
reviewed for comparison to the prior year's consulting requirements .
5.3 Staffing & Negotiations
The proposed 1993 Budget does not suggest any increases to the staff
complement in any department but there are some minor adjustments or
reclassification as identified on the organization charts within the
current budget. Provision has been made in the contingency account
under Unclassified Administration to accommodate adjustments, if any,
to wages and/or benefits as a result of issues such as negotiations
and adjustments resulting from the ongoing legislated commitment to
pay equity.
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5.4 Debt Charges
The Town is now into it's fifth full year of annual debenture charges
associated with the two major projects, the Arena and the
Administrative Centre. The total related debt charges approximate
$249,000 for principal and $495,000 for interest, to total
approximately $744,000 . These charges will be completed in the year j
2003, and are approximately the same total charge each year.
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5.5 1992 Surplus
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The budget process takes place prior to the year end financial
statements and audit and it is therefore premature to estimate
surplus/deficit position for the 1992 year end. Council will be j
notified of any surplus or deficit position in a subsequent report
which deals with year end transfers to Reserves and Reserve Funds .
6. Garbage Charges
6.1 Regional Portion of Flat Rate
The flat rate garbage charge includes collection, which is a Municipal
charge, as well as recycling and disposal tipping fees which are
Regional charges .
The garbage will continue to be collected on a contracted basis which
will be accommodated as a "flat rate" charge through the tax bill as f
in the past. The calculated value for the 1993 garbage collection fee
has been kept at the same value as 1992 - $145. 00 . The application of
the prior year's Regional rebate from Metro in the amount of $1.3
million (approx. ) to the disposal and recycling costs value has
significantly reduced the overall Regional charges related to garbage
disposal. In addition the Region has adjusted the garbage charges for
disposal tipping fees for the 1993 Budget year to a "flat rate" basis .
The Region will charge all area municipalities the same $70 tipping
fee for both landfill and recycling tipping. This compares to the
existing rates of $152 for tipping fees . They intend to reduce this
charge by applying the entire rebate from Metro at the Regional level
and apportioning the net cost to the area municipalities . The Region
has stated that they will keep the flat rate tipping fee at $70 plus
the percentage that represents the shift from landfill to recycling
tonnes tipped over the next 5 years . The charges to the Area
municipalities at $70 per tonne is significantly lower than what has j
been charged in the recent past and therefore the cost related to
Regional charges for garbage are significantly lower than in 1992 .
6.2 Municipal Portion of Flat Rate
The Town maintains a Reserve for garbage related issues . The Reserve
is comprised of Municipal Fund Contributions from past budgets and
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does not relate to Region rebates . The balance in this reserve at
December 31, 1992 was approximately $1,250, 000 . The 1993 Budget
includes a proposed transfer of $1,290, 000 (to be collected as part of
the flat rate garbage charge) into the Garbage Reserve to maintain the
1993 flat rate charge for garbage services at the same rate as the
1992 rate. These funds are recommended for transfer to offset the
Regional Rebate plus the reduction in tipping fees which has been
applied to the 1993 flat rate charge. If this transfer is not made
the garbage rate would be approximately $70 . The transfer is
recommended in order to create a charge that is not widely fluctuating
from year to year. This process is consistent with the practice over
the past two years .
6.3 Garbage Reserve Balance
The remaining balance in the Garbage Reserve is for future drawdown
against the municipal portion of the garbage contract as directed by
Council through the budget process . The balance in the Garbage
Reserve after the proposed transfer would be approximately $2,540,000 .
In the absence of the Regional rebate, the Reserve balance will help
to stabilize the flat rate charge at a reasonable rate for
approximately three to five years . In addition this Reserve can be
used as authorized by Council to offset the potential costs for issues
related to the site selection process for waste.
7. Referrals to Budget
There were a number of items that were referred to the 1993 budget for
consideration. These items have been included in appropriate
departmental budgets with the exception of the attachments - Schedule
A -Pitch in Ontario and Schedule B - Ontario S.P.C.A. These two items
could be dealt with in conjunction with the community services grant
allocation report which is included in the budget agenda.
8. Conclusion
8.1
In conclusion, the intent of the 1993 budget presentation has been to
provide a comprehensive package that focuses on resource sharing and
the provision of an efficient level of service through an approach
that continues to be cost effective. It should be noted that there
may be minor adjustments reflected in the final budget which were too
late for printing in the draft document. Any changes will not adjust
the mill rate impact as they have been built into the overall
calculations for this report.
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8.2
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It is respectfully recommended that the proposed 1993 Capital and
Current budgets be approved and that the four year forecast be
endorsed in principle.
Respectfully submitted Recommended for Presentation
to Council
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karid Marano, H.BSc, A.M.C.T. Lawrence E. Kotse(ff, M.C. I.P.
Treasurer Chief Administrative Officer
MAM/pp J
Attachments i
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SCHEDULE A
....,-.,�...--.�........--.,-.
It IT TOWN OF
ec_sE_Ce
ONTARlO
4:6Y 1"r 1992
November 13, 1992
Mr. Allard W.. van V 4n NANCE
President • 7
Pitch-In Ontar�
36, Toronto St eet
Suite 850 �.
Toronto, ntario
M5C 2C5
Dea Mr. van Veen:
RE: REQUESTING FINANCIAL SUPPORT FOR PITCH-IN WEER 1993
OUR FILE: F05-GE
At a meeting held on November 9, 1992, the Council of the Town of
Newcastle considered your letter dated October 26, 1992,
regarding the above matter and passed the following resolution:
"THAT the correspondence dated October 16, 1992y from Allard
W. van Veen, President; Pitch-In Ontario, requesting
financial support for Pitch-In •Week 1993, be received;
THAT the correspondence be referred to the 1993 budget
discussions; and
THAT Allard W. van Veen be advised of Council's decision. "
Once this matter has been reviewed, you will be advised of the
decision.
Yours tr ,
Patti a ie, A.M.C.T.
o Cler
PLB/km
cc% Marie Marano, Treasurer
J9
CORPORATION OF THE TOWN OF NEWCASTLE n[crccnrrcn
40 TEMPERANCE STREET • BOWMAN VILLI- • ONTARIO • L I C 3A6 • (416) 623.3379 FAX 623-4 169
COUNCIL DIRECTION D-3
0 Po'I T(O H
"O"hNTAR10
rM Waste management . . . in actiont V Ce4)!.�U�
a
October 16, 1992 OCT 2 1992 Our File: 6PO4
Mrs.Marie Hubbard TOWN OF NEWCASTLE
Mayor MAYORS OFFICE
Town of Newcastle
40 Temperance Street
Bowmanville,ON L1C 3A6
Dear Mayor:
Attached you will find the highlights of the 1992 PITCH-IN WEEK campaign. Once again,
volunteerism worked in the 512 communities where projects were undertaken!
We are now preparing for next year's program which will take place May 3.9, 1993. Another
successful campaign is expected.
PITCH-IN WEEK could not take place without financial support from Ontario's communities. In
1993 we are faced with a serious shortfall in funding. Even though we have once again secured
support from the Ministry of Environment, for which we are grateful, our industry support has
decreased substantially as a result of the recession.
Your community's support is now critical if the PITCH-IN WEEK campaign is to continue in the
future. Based on your population,we are asking you to make a contribution of$700. However,any
donation is appreciated...we need it desperately if we are to continue to provide support and free
materials to the volunteers in your community.
Thank you for considering our request and responding to us in the near future. 1993 campaign
materials will be sent to your community's schools,Scouts,Girl Guides,Chamber of Commerce and
various other voluntary organizations in January, 1993.
Please contact us if you have any questions.
Kindest regards,
PITCH-IN ONTARIO D18T -UTION
CLERK
ACK. By------
Allar van Veen,APR
t ORIGINAL T
Presi
COPIES T 0:
P.S. Thank you for your support! Remember;if your community can espon 'aT -1
requested then any donation is appreciated.
Enclosure
T TNISRECYCLED 1 l i�_F- F057 ..,ti/[_.,
A �J PAPER CONTAINS _..__._..._.....,.__..__.__......._. ........
J POST-CONSUMER
WASTE.
PITCH-IN 36 Toronto Street, Suite 850, Toronto, Ontario M5C 2C5
CANADA! PITCH-IN is a registered trademark In Canada
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SCHEDULE B
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THE TOWN Of
eweast(e
W'.Rrr-
ONTARIO �
February 9, 1993
OF NEK.-IiAt-
Mr. cyan Denham
Execu ive Director
Ontari Society for the
Preven ion of Cruelty to Animals
16640 Yo a Street'
Newmarket, Ontario
WY 4V8
Dear Mr. Denham:
RE: GRANT REQUEST TOWARDS ONTARIO SOCIETY FOR THE PREVENTION
OF 'CRUELTY TO ANIMALS - OUR FILE: F11.GE
At a meeting held on February 8, 1993, the Council of the Town of
Newcastle considered your letter dated November 10, 1992,
regarding the above matter and passed the following resolution:
"THAT the correspondence dated November 10, 1992 from Bryan
Denham, Executive Director, Ontario Society for the
Prevention of Cruelty to Animals requesting a grant of
$2,500, be received;
THAT the correspondence be referred to the 1993 budget
discussions; and
THAT Bryan Denham be advised of Council's decision. "
Once this matter has been reviewed, you will be advised of the
decision.
Yours truly,
ea . rrie, A.M.C.T.erk
PLB/km --
cc: M. Marano, Treasurer `s
CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET • BOWMANVILLE • ONTARIO • L1C 3A6 • (416) 623.3379 FAX 623.4169 nECretr0PAKn
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COUNCIL DIMMON D-1
'x� ONpFllO Sp�lEl}
All for the Animals
" r November 10, 1992
Ms. Pattie Barrie
Clerk
Town of Newcastle
40 Temperance Street
Bowmanviile, Ontario
L 1C 3A6
Dear Ms. Barrie:
Founded In 1873, the Ontario Society for the Prevention of Cruelly to Animals (Ontario
S.P.C.A) Is the largest organization of Its kind In Canada. Today, its 33 branches, 16
shelters, 4 cilnics and 20 affiliates operate throughout Ontario. The Ontario S.P.C.A. Is the
only animal organization legally authorized to enforce legislation pertaining to the prevention
\w:a
of cruelty to animals.
Over Its 120 year history, the Society has been an Integral part of communities throughout
the province providing meaningful service to animals as well as people. Thousands of
Injured, abandoned and abused animals have received care and shelter from the Society.
The adoption program has allowed many of these animals to go to loving homes and
enrich the lives of countless Individuals.
Through education, Investigation and enforcement, the Ontario S.P.C.A. provides a
necessary public service. If the Society did not perform these functions, they would have to
be undertaken by law enforcement or government agencies. Few other agencies have the
training or the resources to provide animals with protection, shelter and care.
t4 ,
In times of Increased responsibility, the mandate and philosophy of the Society have
remained uncompromised. The Ontario S.P.C.A.'s primary purpose remains the protection
of animals from cruelty. Working within the law and In co-operation with government,
research, Industry and public representatives, the Ontario S.P.C.A. strives to Improve
r° a conditions for animals while maintaining a balanced sensitivity toward both human and
animal needs.
The work of the Ontario S.P.C.A. Is funded by its members and supporters and carried on
by its small professional staff and dedicated volunteers. For the first time In Its history, the
Society has found It necessary to make a public appeal for funds through the $2 million
"Caring Campaign". In order to effectively carry out its mandate, several projects beyond
� the resources of the organization require Immediate attention:
44,),
• an Increase In the number of Animal Protection Service Inspectors
• the procurement of veterinary equipment for the clinics
0 the provision of a humane education vehicle and related material
• the establishment of a computer network linking all animal shelters.
N
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LITERATURE AVAILABLE Ird UIE CLERT ,S Dlii!?A
y= Ontario Society For The Prevention Of Cruelty To Animals
16640 Yonde Street, Newmarket, Ontario L3Y 4V^.8 (416) 898-7122 • (416) 887-1684 • Fax (416) 853-8643
-1 1 / Printedrecycled pepel • 16
All, r
We are pleased to Invite the Town of Newcastle to be a partner In the "Caring Campaign".
Your participation will contribute In a significant way to the Ontario S.P.C.A. and the
programs and services It offers to communities throughout the province.
Our request is for a grant of$2,500. Should you choose, your grant may be payable over a
five year period.
The return on your gift is immeasurable. Your special generosity and partnership will
strengthen the Ontario S.P.C.A. and allow the Society to position itself for another century of
vital community service.
In erely,
Bryn F. enham
Executive Irector
BFD/rc
11',K. 13Y