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Home My WebLink About01/16/2015 (Special Budget) Notice of Special Meeting Date: Friday, January 16, 2015 Time: 9:00 AM Place: Clarington Older Adults Centre The purpose of the meeting is to receive a staff presentation on the 2015 Budget. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-3330 Claritwn If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905 - 623 -3379 ext. 2102. Special General Purpose and Administration Committee Agenda Date: January 16, 2015 u- 11 0O Place: Clarington Older Adults Centre 1. Meeting Called to Order 2. Disclosures of Pecuniary Interest 3. Finance Department 4. Verbal Report of Staff — 2015 Municipal Budget 5. Adjournment Corporation of The Municipality of Clarington 40 Temperance Street, Bowmanville, Ontario L1 C 3A6 905 - 623 -3379 2015 BUDGET EDUCATION SESSION2015 BUDGET EDUCATION SESSION Friday January 16Friday January 16, 2015, 2015 thth AgendaAgenda IntroductionIntroduction  Financial Indicators Financial Indicators --BMA StatisticsBMA Statistics  Historical TrendsHistorical Trends  Asset ManagementAsset Management  LongLong--term Debt Statusterm Debt Status  Reserve and Reserve Funds UpdateReserve and Reserve Funds Update  Preliminary Capital BudgetPreliminary Capital Budget  Staffing IssuesStaffing Issues  Proposed Draft Operating BudgetProposed Draft Operating Budget  Next StepsNext Steps  2016 Considerations2016 Considerations  Important High Level FactsImportant High Level Facts 1% tax levy = $454,0001% tax levy = $454,000  1% on an average household = $11.851% on an average household = $11.85  Average assessed value of home for Clarington for Average assessed value of home for Clarington for  2015 2015 budget (year budget (year three three phase in) = $phase in) = $285,800285,800 Average fully phased in assessed value of home for Average fully phased in assessed value of home for  Clarington (2016) = $Clarington (2016) = $301,900301,900 Residential Properties Residential Properties –– Median Assessed ValuesMedian Assessed Values 600,000 500,000 400,000 Single Family Detached Link Home Town/Row House 300,000 Semi-Detached Single on Water Condo 200,000 Seasonal 100,000 0 Mean Assessed Values Financial Indicators Financial Indicators ––BMA StatisticsBMA Statistics Clarington participates in the annual study performed by BMA Clarington participates in the annual study performed by BMA  Management Consulting Inc.Management Consulting Inc. Final study has been distributed to Council library.Final study has been distributed to Council library.  Provides a valuable tool for comparing to other municipalities Provides a valuable tool for comparing to other municipalities  as well as assessing affordability from a local perspective.as well as assessing affordability from a local perspective. 95 Ontario municipalities have participated, representing 84% 95 Ontario municipalities have participated, representing 84%  of the population.of the population. Average Household IncomeAverage Household Income Municipality2013 Estimated AverageRating Household Income Caledon$129,199High Milton$117,930High Whitby$116,550High Pickering$114,188High Newmarket$113,616High Ajax$106,088High Clarington$103,461High Port Hope$ 83,044Mid Oshawa$ 82,838Mid Niagara Falls$ 73,145Low GTA Average$114,353High Survey Average$ 93,038Mid Land Area and DensityLand Area and Density Affects the cost of municipal goods and services.Affects the cost of municipal goods and services.  Compact boundaries and high population densities make Compact boundaries and high population densities make  the provisions of public services, such as road maintenance the provisions of public services, such as road maintenance and fire protection typically less costly per household.and fire protection typically less costly per household. In 2014, Clarington was the 15In 2014, Clarington was the 15largest land area out of 95 largest land area out of 95 thth  in the study at 611 square kilometers. in the study at 611 square kilometers. Our population density is 149 per square kilometer Our population density is 149 per square kilometer  compared to a survey average of 594 population density compared to a survey average of 594 population density per square kilometer. The GTA average is 1,062.per square kilometer. The GTA average is 1,062. Net Municipal Levy per CapitaNet Municipal Levy per Capita Calculated using 2014 estimated populations and 2014 municipal levies.Calculated using 2014 estimated populations and 2014 municipal levies.  May vary as a result of:May vary as a result of:  Different service levelsDifferent service levels  Variations in types of serviceVariations in types of service  Different methods of providing servicesDifferent methods of providing services  Varying demands for servicesVarying demands for services  Locational factorsLocational factors  Urban/rural compositionUrban/rural composition  Net Municipal Levy per CapitaNet Municipal Levy per Capita Selected MunicipalitiesSelected Municipalities Municipality2014Levy Per Capital Upper & Lower Milton$ 980 Newmarket$1,215 Ajax$1,246 Clarington$1,332 Whitby$1,439 Caledon$1,459 Port Hope$1,494 Oshawa$1,495 NiagaraFalls$1,563 Pickering$1,645 GTA Average$1,360 Survey Average$1,397 Net Municipal Levy per CapitaNet Municipal Levy per Capita Clarington TrendsClarington Trends YearCombinedGTAAverageStudy Average 20058361,003 20069301,0251,025 20071,0671,1431,121 20081,0941,2021,163 20091,1341,1851,167 20101,1451,2081,228 20111,2201,2481,283 20121,3041,3381,367 20131,2681,3221,348 20141,3321,3601,397 Assessment per CapitaAssessment per Capita Provide an indication of the “richness” of the assessment base. Provide an indication of the “richness” of the assessment base.  Assessment is important due to reliance of municipalities on the Assessment is important due to reliance of municipalities on the  property tax base.property tax base. Generally GTA municipalities have high assessment per capita as well as Generally GTA municipalities have high assessment per capita as well as  cottage country due to high lakefront and low year round populations.cottage country due to high lakefront and low year round populations. Municipalities with higher assessments per capita tend to have Municipalities with higher assessments per capita tend to have  properties valued higher than other jurisdictions which gives them the properties valued higher than other jurisdictions which gives them the ability to have a lower tax rate to raise the same amount of money than ability to have a lower tax rate to raise the same amount of money than one with lower assessments per capita. one with lower assessments per capita. Assessment per CapitaAssessment per Capita Municipality2014 Unweighted Relative Position CVAper Capita Oshawa$ 96,048Low Niagara Falls$105,282Low Ajax$105,329Mid Port Hope$109,037Mid Clarington$111,737Mid Whitby$119,373Mid Pickering$143,606Mid Newmarket$147,077High Milton$157,349High Caledon$206,355High GTA Average$160,230 Survey Average$133,081 2014 Assessment Composition2014 Assessment Composition Residential Multi-Residential Commercial Industrial Pipelines Farmlands Managed Forests Property Taxes as a PercentageProperty Taxes as a Percentage of Incomeof Income Municipality2014 Average %of Household RelativeRanking Residential TaxesIncome Milton$ 3,3372.8%Low Caledon$ 4,4943.5%Low Clarington$ 3,8653.7%Mid Niagara Falls$ 2,7303.7%Mid Newmarket$ 4,3033.8%Mid Whitby$ 4,6774.0%Mid Pickering$ 4,7954.2%High Ajax$ 4,5674.3%High Port Hope$ 3,6704.4%High Oshawa$ 3,8544.7%High Comparison of Relative TaxesComparison of Relative Taxes “Like” “Like” property property comparisons.comparisons.  Provides overall trends, not exact Provides overall trends, not exact differences.differences.  Differences in relative tax burdens caused by:Differences in relative tax burdens caused by:  Values of like properties vary significantlyValues of like properties vary significantly  Affected by tax ratiosAffected by tax ratios  NonNon--uniform education ratesuniform education rates  Level of service choicesLevel of service choices  User fee structureUser fee structure  Other revenue types ie. casinoOther revenue types ie. casino  Description of Comparable PropertiesDescription of Comparable Properties Detached Bungalow Detached Bungalow --three bedroom, 1.5 bathroom, three bedroom, 1.5 bathroom,  one car garage, 1,200 square feet.one car garage, 1,200 square feet. 2 Storey Home (NEW) 2 Storey Home (NEW) --three bedroom, 2.5 three bedroom, 2.5  bathroom, two car garage, 2,000 square feet.bathroom, two car garage, 2,000 square feet. Senior Executive Senior Executive --four or five bedroom, 3 bathroom, four or five bedroom, 3 bathroom,  main floor family room, two car garage, 3,000 square main floor family room, two car garage, 3,000 square feet.feet. Property Tax Comparisons Property Tax Comparisons Detached Bungalow Detached Bungalow --20142014 Municipality2014 Property TaxesRelative Tax Burden Milton$ 2,882Mid Niagara Falls$ 3,022Mid Clarington$ 3,145Mid Caledon$ 3,365High Newmarket$ 3,459High Port Hope$ 3,542High Whitby$ 3,854High Oshawa$ 4,013High Ajax$ 4,014High Pickering$ 4,433High Average –overall$ 3,091Mid Average –population 50,000-99,999$ 3,115 GTA Average$ 3,645 Detached Detached Bungalow Bungalow Relative TaxesRelative Taxes Clarington 5 year TrendsClarington 5 year Trends YearRelativeTaxesPopulation GTA AverageStudy Average Growth Average 2010$2,930$2,972$3,380$2,915 2011$3,000$3,045$3,442$2,942 2012$3,056$3,045$3,513$2,995 2013$3,113$3,087$3,574$3,013 2014$3,145$3,115$3,645$3,091 Cumulative 7%5%8%6% Increase AverageAnnual 1.5%1.0%1.6%1.2% Increase Property Tax Comparisons Property Tax Comparisons 2 Storey Home 2 Storey Home ––20142014 Municipality2014 Property TaxesRelative Tax Burden Milton$3,383Low Caledon$4,006Low Clarington$4,193Mid NiagaraFalls$4,275Mid Newmarket$4,394Mid Whitby$4,707High Ajax$4,873High Port Hope$4,891High Oshawa$4,917High Pickering$5,113High Average –overall$4,295 Average –population 50,000-99,999$4,403 GTA Average$4,442 Property Tax Comparisons Property Tax Comparisons Senior Executive Home Senior Executive Home --20142014 Municipality2014 Property TaxesRelative Tax Burden Milton$4,330Low Caledon$4,718Low Clarington$5,082Low NiagaraFalls$5,332Low Newmarket$5,610Mid Whitby$5,962Mid Ajax$6,048High Oshawa$6,087High Pickering$6,372High Average –overall$5,854 Average –population 50,000-99,999$5,634 GTA Average$6,112 Senior Executive Relative TaxesSenior Executive Relative Taxes Clarington 5 year Trends Clarington 5 year Trends YearRelativeTaxesPopulation GTA AverageStudy Average Growth Average 2010$4,697$5,026$5,675$5,438 2011$4,799$5,118$5,758$5,558 2012$4,897$5,141$5,863$5,659 2013$5,025$5,491$6,012$5,745 2014$5,082$5,634$6,112$5,854 Cumulative 8%12%8%8% Increase AverageAnnual 1.6%2.4%1.5%1.5% Increase 2014 BMA Study 2014 BMA Study –– Conclusions on TaxationConclusions on Taxation Average household income high in Average household income high in Clarington.Clarington.  Clarington’s tax burden is in low to mid range overall and low in Clarington’s tax burden is in low to mid range overall and low in  comparison to GTA group and study comparison to GTA group and study average.average. Property taxes as a percentage of income rated Property taxes as a percentage of income rated mid mid in in  Clarington.Clarington. Clarington ranks Clarington ranks 42 42 in the net levy per capita out of the in the net levy per capita out of the 95 95  participants (other Durham lakeshores participants (other Durham lakeshores generally much higher).generally much higher). ChallengesChallenges--land area is high with low density and assessment land area is high with low density and assessment  per capita is mid (significantly lower than GTA and survey per capita is mid (significantly lower than GTA and survey ).). averagesaverages BMA Study BMA Study ––Financial Financial Sustainability IndicatorsSustainability Indicators Evaluation of municipal financial condition is complex due to:Evaluation of municipal financial condition is complex due to:  The state of the economyThe state of the economy  Varying service levels and standardsVarying service levels and standards  Population and geographic sizePopulation and geographic size  Composition of the community (urban/rural, demographics)Composition of the community (urban/rural, demographics)  Local business climate and proximity to major centresLocal business climate and proximity to major centres  Internal finances of the municipalityInternal finances of the municipality  Costs being postponed into the future (ie asset deterioration)Costs being postponed into the future (ie asset deterioration)  Financial Position per CapitaFinancial Position per Capita Total fund balances (including equity in Veridian) less Total fund balances (including equity in Veridian) less  amounts to be recovered in future years (long term debt, amounts to be recovered in future years (long term debt, post employment benefitspost employment benefits).). Reflects future financial capacity and amount of current Reflects future financial capacity and amount of current  obligations not obligations not funded.funded. Does not reflect capital deterioration Does not reflect capital deterioration factors.factors.  Trend for Clarington: Trend for Clarington: 20092009--$384, 2010$384, 2010--$398, 2011$398, 2011--$$480, 480,  20122012--$666, 2013$666, 2013--$648.$648. 2013 Net Financial Position2013 Net Financial Position Municipality2013 Net Municipal Position Per Capita Toronto$(1,668) Port Hope$( 810) Oshawa$( 393) Caledon$ 517 Clarington$ 648 Newmarket$ 719 Milton$ 774 Ajax$ 790 Pickering$ 940 Whitby$ 994 Surveyaverage$ 185 GTA average$ 514 Asset Consumption RatioAsset Consumption Ratio “Used “Used up” percentage of capital up” percentage of capital assets.assets.  Highlights aged condition of assets and potential asset Highlights aged condition of assets and potential asset  replacement replacement needs.needs. 2013 Asset Consumption Ratio2013 Asset Consumption Ratio Municipality Asset Consumption Ratio Ajax25.9% Milton28.6% Whitby34.1% Port Hope34.2% Newmarket35.7% NiagaraFalls36.8% Clarington37.4% Oshawa38.3% Pickering50.7% Caledon52.6% Study average37.6% Debt Outstanding per $100,000 of Debt Outstanding per $100,000 of Unweighted Assessment TrendUnweighted Assessment Trend Clarington $450 $397 $400 $342 $350 $300 $264 $231 $250 $190 $200 $150 $100 $50 $0 20092010201120122013 Debt Outstanding per $100,000 Debt Outstanding per $100,000 of Unweighted Assessmentof Unweighted Assessment Port Hope $1,985 Niagara Falls $750 Oshawa $570 Newmarket $362 Milton $212 Clarington $190 Pickering $144 Caledon $144 Ajax $135 Whitby 0 05001000150020002500 Debt/Assessment Taxes Receivable as a % Taxes Receivable as a % of Tax Levied Trendof Tax Levied Trend Clarington 10.00% 9.20%9.20% 9.00% 7.90% 7.60% 8.00% 7.00% 6.00% 5.40% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 20092010201120122013 2014 BMA Study 2014 BMA Study ––Conclusions on Conclusions on Financial SustainabilityFinancial Sustainability Financial Position per capita is strong.Financial Position per capita is strong.  Asset consumption ratio at study average.Asset consumption ratio at study average.  Debt per unweighted assessment is declining and Debt per unweighted assessment is declining and  only at 32% of study average.only at 32% of study average. Taxes Receivable on a steady decline.Taxes Receivable on a steady decline.  Historical TrendsHistorical Trends Assessment Growth HistoryAssessment Growth History YearAssessment Growth 20042.94% 20053.06% 20063.64% 20072.12% 20082.80% 20093.00% 20101.92% 20112.20% 20122.63% 20132.20% 2014 (Municipal & Education retained)3.34% 20151.78% Clarington’s Budget Increase HistoryClarington’s Budget Increase History YearLocal Budget Increase 20054.7% 20064.08% 20078.25% 20084.44% 20092.35% 20102.97% 20113.80% 20123.75% 20133.75% 20143.74% 10-year average4.18% Clarington’s Increased Tax Clarington’s Increased Tax Support to CapitalSupport to Capital Amount Year 2014 Tax LevyFinancing $4,646,886 2013 Tax Levy Financing $3,657,952 2012 Tax Levy Financing $3,555,836 2011 Tax Levy Financing $3,228,626 2010 Tax Levy Financing $4,070,448 2009 Tax Levy Financing $3,710,305 2008 Tax Levy Financing $3,169,471 2007 Tax Levy Financing $2,854,874 2006 Tax Levy Financing $2,825,874 2005 Tax Levy Financing $2,806,001 How each $100 of Clarington Local How each $100 of Clarington Local Levy is utilized in 2015 draft budgetLevy is utilized in 2015 draft budget HOW EACH $100 OF CLARINGTON LOCAL LEVY IS SPENT IN 2015 DRAFT BUDGET OPERATIONS* $21.33 FIRE SERVICES $20.09 CORPORATE SUPPORT $14.34 CAPITAL FINANCING $11.30 RECREATION FACILITIES AND PROGRAMS $9.52 LIBRARY $5.32 COMMUNITY PLANNING $4.36 WINTER MAINTENANCE $3.46 ENGINEERING SERVICES $2.83 TOURISM AND COMMUNICATIONS $1.70 CULTURE $1.62 MUNICIPAL LAW AND PARKING ENFORCEMENT $1.25 ANIMAL SERVICES $0.96 CROSSING GUARDS $0.70 DEBT SERVICING $0.59 ECONOMIC DEVELOPMENT $0.40 COMMUNITY GRANTS $0.18 BUILDING INSPECTION $0.05 * INCLUDES ROADS, PARKS, CEMETERIES, BUILDINGS, STREETLIGHTS & SIDEWALK MAINTENANCE ETC. Tangible Capital Tangible Capital AssetsAssets 2013 Accumulated Net Book Vakue Asset Class2013 AcquisitionsAmortization Historical CostAmortization@ Dec.31.2013 Bridges & Culverts 275,904 551,310 32,572,842 15,427,298 17,145,544 Buildings 470,134 2,683,242 94,985,999 37,378,652 57,607,347 Erosion Control 228,031 71,738 1,728,053 263,011 1,465,042 Fleet 2,577,466 1,431,915 18,526,569 10,253,259 8,273,311 Land 652,100 - 58,453,325 - 58,453,325 Miscellaneous 461,596 348,591 6,901,560 4,934,140 1,967,420 Parks 626,467 657,260 15,906,349 8,231,190 7,675,160 Roads 9,483,176 8,990,344 310,227,176 136,691,486 173,535,691 Storm Sewers 2,776,174 987,271 74,527,464 15,667,353 58,860,112 $17,551,048 $15,721,671 $613,829,338 $228,846,388 $384,982,950 TCA TCA ––Age of Our Assets Age of Our Assets TCA TCA ––Aged Based Risk ReportAged Based Risk Report MAC Admin -1988 Interior2,418,421 MAC Admin -1988 Mechanical3,535,267 RRC -1988 Mechanical1,879,299 RRC -1988 Ice Rink1,834,200 Fire -2002 Communication Centre2,847,355 $ 12,514,542 Debt and RepaymentsDebt and Repayments Debenture Repayment Schedule As of January 1, 2015 YearSouth CourticeIndoor Soccer/RRCGreen RoadNewcastle NewcastleTotal Arena LacrosseCCD SpaceGrade SeparationLibraryAquatic 20151,083,940.50 161,930.50 107,074.68 524,212.80 103,677.48 1,784,674.00 3,765,509.96 20161,083,562.50 163,394.50 107,074.68 531,120.80 103,575.48 1,785,231.50 3,773,959.46 20171,080,782.50 164,626.00 107,074.68 537,368.80 104,194.48 1,785,285.25 3,779,331.71 2018165,415.00 107,074.68 542,379.30 556,507.98 1,784,635.50 3,156,012.46 2019166,743.50 107,074.68 546,086.30 1,784,054.75 2,603,959.23 2020166,571.00 107,074.68 549,423.80 1,629,375.00 2,452,444.48 2021165,899.00 53,537.34 552,300.30 1,071,000.00 1,842,736.64 2022165,783.00 552,820.30 1,023,750.00 1,742,353.30 2023165,253.00 553,160.30 718,413.30 2024+163,293.00 3,290,956.80 3,454,249.80 3,248,285.50 1,648,908.50 695,985.42 8,179,829.50 867,955.42 12,648,006.00 27,288,970.34 Principal at Jan 1/ 20153,117,000.00 1,426,000.00 585,726.46 6,388,600.00 737,000.00 10,741,000.00 22,995,326.46 Principal at Jan 1/20162,096,000.00 1,298,000.00 507,654.27 6,047,600.00 671,000.00 9,421,000.00 20,041,254.27 Interest 1.80% to 2.25% 1.2% to 3.35% 5.12%1.2% to 3.8%4.7% to 5.2% 4.45% to 4.75% Rates Reserves & Reserve FundsReserves & Reserve Funds Critical component of longCritical component of long--term financing term financing plan.plan.  Provides stability to tax rates in the face of variable economic Provides stability to tax rates in the face of variable economic factors.factors.  Provides financing for oneProvides financing for one--time requirements without impacting tax time requirements without impacting tax  rates.rates. Makes provision for asset replacement of infrastructure currently Makes provision for asset replacement of infrastructure currently  depreciating.depreciating. Avoid spikes in capital budget requirements and reduce reliance on Avoid spikes in capital budget requirements and reduce reliance on  longlong--term term debt.debt. Source of internal Source of internal financing.financing.  Provide flexibility to manage debt levels and protect the municipality’s Provide flexibility to manage debt levels and protect the municipality’s  financial financial position.position. Provide for liabilities incurred in current year but paid for in the Provide for liabilities incurred in current year but paid for in the  future.future. Status of ReservesStatus of Reserves Reserve Name2014 Balance2015 Balance Self InsuredLosses778,295758,295 MunicipalAcquisition of Property558,619535,619 Tax Write-off306,045381,045 General Capital 119,279121,779 LegalFees259,049259,049 Consult/Professional Fees70,76070,760 RecordsMaintenance65,61575,615 Election Expenses15,37788,877 Fire Prevention12,1322,132 Status of Reserves (continued)Status of Reserves (continued) Reserve Name2014 Balance2015 Balance Pits and Quarries209,471209,471 Rural Road Rehabilitation19,81819,818 Waterfront Trail17,8180 Burketon Park7,5697,569 Samuel Wilmot Nature5230 Park Development812812 Clarington Heritage Committee8,0567,056 Total$2,449,238$2,537,897 What are development charges?What are development charges? Fees levied against new development to pay for Fees levied against new development to pay for  capital costs of servicing new capital costs of servicing new development. development. “growth pays for growth“growth pays for growth”.”.  The financial burden of servicing new development The financial burden of servicing new development  is not borne by existing is not borne by existing taxpayers.taxpayers. Very widely used in Very widely used in Ontario.Ontario.  New Study and ByNew Study and By--law required every five law required every five years.years.  Current ByCurrent By--law expires July law expires July 2, 2015.2, 2015.  Development ChargesDevelopment Charges Current background study and ByCurrent background study and By--law approved law approved  by Council on May 31, 2010, effective July 1, by Council on May 31, 2010, effective July 1, 2010.2010. Residential charge for a single family dwelling Residential charge for a single family dwelling  currently $15,798 currently $15,798 per per unit. unit. Industrial Industrial Charge Charge is $32.95 is $32.95 per square metre of per square metre of  gross floor gross floor area.area. Other nonOther non--residential charge residential charge is $64.78 is $64.78 per per  square metre of gross floor square metre of gross floor area.area. Development Charges (continued)Development Charges (continued) Current byCurrent by--law is under appeal to the Ontario Municipal law is under appeal to the Ontario Municipal  Board by developer Board by developer group.group. Appeal is methodology Appeal is methodology based.based.  If developer appeal is successful, charge would be If developer appeal is successful, charge would be  reduced and differential value would have to be reduced and differential value would have to be refunded back to July 1refunded back to July 1, , 2010.2010. stst If Clarington If Clarington is successful on alternate methodology, is successful on alternate methodology,  approximately 2/3rds would have to be refunded back to approximately 2/3rds would have to be refunded back to 2010. 2010. ByBy--law in place for 5 years with annual indexing unless law in place for 5 years with annual indexing unless  Municipality determines need to update Municipality determines need to update sooner.sooner. Development Charges (continued)Development Charges (continued) Current byCurrent by--law expires June 30, 2015.law expires June 30, 2015.  Work on new background study has commenced.Work on new background study has commenced.  Will be education sessions for Council in the New Year and public Will be education sessions for Council in the New Year and public  meetings leading to new bymeetings leading to new by--law prior to deadline.law prior to deadline. Will incorporate results of OMB hearings into new byWill incorporate results of OMB hearings into new by--law, if timing law, if timing  permits.permits. Significant project for 2015.Significant project for 2015.  Have invited CBOT, BILD and Durham Homebuilders to participate in Have invited CBOT, BILD and Durham Homebuilders to participate in  working group.working group. How do you calculate How do you calculate Development Development CChargesharges?? Prepare a growth forecast.Prepare a growth forecast.  Calculate historic service levels.Calculate historic service levels.  Prepare growthPrepare growth--related capital programs.related capital programs.  Calculate rates.Calculate rates.  Review byReview by--law policies and exemptions.law policies and exemptions.  Hold statutory public meeting.Hold statutory public meeting.  Development Charges Development Charges -- Items to remember/considerItems to remember/consider Amendments to the byAmendments to the by--law require the same steps as law require the same steps as  preparing the original bypreparing the original by--law. ie. Statutory notices, law. ie. Statutory notices, public meetings, updated background study information, public meetings, updated background study information, etc.etc. DC’s only cover growth related components of the capital DC’s only cover growth related components of the capital  costs, not replacement shares.costs, not replacement shares. Legislation excludes some categories, ie. museums, Legislation excludes some categories, ie. museums,  administration, computers.administration, computers. Mandatory 10% reduction on “soft” services.Mandatory 10% reduction on “soft” services.  Cannot exceed 10 year historic service level, ie. can’t Cannot exceed 10 year historic service level, ie. can’t  improve services through development charges.improve services through development charges. Development Charges Development Charges –– Items to remember/considerItems to remember/consider DC debt is funded by collections, not tax levy so inherent DC debt is funded by collections, not tax levy so inherent  cash flow risks. cash flow risks. Timing of major capital facilities.Timing of major capital facilities.  DC funds can only be spent on growth related projects.DC funds can only be spent on growth related projects.  Residential DC’s as a percentage of new home costs has Residential DC’s as a percentage of new home costs has  been relatively stable.been relatively stable. General concern over quantum of nonGeneral concern over quantum of non--residential residential  charges and impact upon economic development. charges and impact upon economic development. Development Charges Reserve FundsDevelopment Charges Reserve Funds Indoor Indoor recreation recreation has has cash flow issues around supporting the cost of cash flow issues around supporting the cost of  debt and remains restricted for future uses subject to the ongoing debt and remains restricted for future uses subject to the ongoing development charges bydevelopment charges by--law and background study currently underway.law and background study currently underway. Library Library has repaid interim has repaid interim borrowing from prior years of approximately borrowing from prior years of approximately  $200,000 and begun to address $200,000 and begun to address annual installments of balloon annual installments of balloon payments payments for main library in for main library in 2012 , 2013 and 2014.2012 , 2013 and 2014. Repayments impact upon timing of future Repayments impact upon timing of future facilities.facilities.  Development Charges Reserve FundsDevelopment Charges Reserve Funds Indoor recreation development charges reserve fund currently short by Indoor recreation development charges reserve fund currently short by $2,600,000$2,600,000. .  The projection is that this shortfall will decrease The projection is that this shortfall will decrease gradually each year (if 525 gradually each year (if 525 units units are are achieved it achieved it will break even. We will be monitoring this closelywill break even. We will be monitoring this closely).). Finance Report FNDFinance Report FND--018018--13 indicated the anticipation that the Indoor Recreation 13 indicated the anticipation that the Indoor Recreation  Development Charges reserve fund would likely return to positive conditions at the Development Charges reserve fund would likely return to positive conditions at the end of 2018 and would need several years after this to build up some capacity. end of 2018 and would need several years after this to build up some capacity. This This includes an allowance for any loss on the OMB appeal which is still to be includes an allowance for any loss on the OMB appeal which is still to be  determined.determined. Will be critical factor in timing of any future indoor recreation Will be critical factor in timing of any future indoor recreation projects. projects.  Development Charges Reserve FundsDevelopment Charges Reserve Funds Name2014 2015 2015 Contributions/2015 Ending BalanceCapitalOperatingTransfersBalance General 227,236(166,500)60,736 Government Public Library152,880(77,143)(57,867)(161,704)(143,835) Emergency 2,041,9312,041,931 Services Indoor (2,596,664)(2,807,648)(5,404,313) Recreation Park 869,190(679,500)(13,500)176,190 Development Operations1,687,697(524,700)1,162,997 Roads & Related9,794,313(5,682,451)(647,189)3,464,672 Parking270,034(19,800)250,234 Status of Reserve FundsStatus of Reserve Funds Name2014 2015 2015 Tax LevyTransfers2015 BalanceCapital OperatingContributionsBalance Industrial/498,88350,000548,883 Economic Dev StrategicCapital9,708,0899,708,089 MunicipalCapital 2,816,675(1,127,120)235,000161,7042,086,259 Works Debenture 227,219(16,117)211,102 Retirement Impact/Escrow293,589(225,000)68,589 General Municipal1,833,012(50,000)(250,000)49,2001,582,212 Rate Stabilization8,511,344(800,000)7,711,344 Computer Equipment477,400(240,000)100,000337,400 Clar. Station A742,514742,514 Parking Lot531,763(10,000)(228,350)200,000493,413 Status of Reserve Funds (continued)Status of Reserve Funds (continued) Name2014 2015 2015 Tax LevyTransfers2015 BalanceCapital OperatingContributionsBalance Animal Services55,164(10,000)7,00052,164 Clerk’s Fleet10,004(5,000)5,00010,004 Fire Equipment817,175(675,000)(10,000)325,000457,175 Community 200,000(200,000)0 Emergency Mgmt Roads Capital 141,554141,554 Eng & Inspection2,368,274(330,000)2,038,274 RoadsContribution506,200(350,000)156,200 Parks Capital308,382(125,500)25,000207,882 Cemeteries7,1435,00012,143 FederalGas Tax136,292(2,510,000)2,448,12274,414 Status of Reserve Funds (continued)Status of Reserve Funds (continued) Name2014 2015 2015 Tax LevyTransfers2015 BalanceCapital OperatingContributionsBalance Building Division825,191(11,000)814,191 Engineering Fleet120,216(45,000)5,00080,216 EngineeringReview105,512105,512 Facilities/Park 517,323(325,000)300,000492,323 Maintenance Operations 564,478(562,000)109,500111,978 Equipment Stormwater Mgmt 19,68619,686 Pond Maint. CSDBuilding 280,89585,000365,895 Refurbish CommunityServices 469,207(283,700)348,850534,357 Capital Status of Reserve Funds (continued)Status of Reserve Funds (continued) Name2014 2015 2015 Tax LevyTransfers2015 BalanceCapital OperatingContributionsBalance ParklandCash-in-Lieu228,570228,570 Port Granby152,291152,291 Community Impr.137,43012,500149,930 Library Capital1,177,269(55,000)30,0001,152,269 Library Computer 268,387268,387 Equipment Older Adults -64,3553,00067,355 Operating Museums R/F’s103,3696,000109,369 Bowmanville BIA18,21918,219 Newcastle BIA121,193121,193 OronoBIA72,24072,240 Historical Summary of Reserve FundHistorical Summary of Reserve Fund Budget Balances (excludes DC’s)Budget Balances (excludes DC’s) HISTORICAL SUMMARY OF RESERVE FUND BUDGET BALANCES (EXCLUDES DEVELOPMENT CHARGES) 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 200720082009201020112012201320142015 Reserve Fund HighlightsReserve Fund Highlights NonNon--DC related has DC related has seen an overall reduction in balances, seen an overall reduction in balances,  somewhat offset by rate stabilization Reserve Funds.somewhat offset by rate stabilization Reserve Funds. Strong reliance for capital Strong reliance for capital purposes, starting to show impact purposes, starting to show impact  of increased capital replacement needs.of increased capital replacement needs. Minor changes Minor changes to funding of reserve funds have been to funding of reserve funds have been  recommended in recommended in 2015.2015. Due to pressures in fleet areas, recommendations to bolster Due to pressures in fleet areas, recommendations to bolster  fire and operations fleet reserve funds from rate stabilization fire and operations fleet reserve funds from rate stabilization reserve fund.reserve fund. 2015 Draft Capital Budget2015 Draft Capital Budget Total proposed capital budget = Total proposed capital budget = $20.4 $20.4 millionmillion  26% 26% funded from tax levyfunded from tax levy  81% 81% relates to operations and engineering (principally roads relates to operations and engineering (principally roads  and parks)and parks) 1.63% 1.63% tax levy increase to support tax levy increase to support capital primarily roads capital primarily roads  and major buildingsand major buildings Proposed Capital ProjectsProposed Capital Projects DepartmentTotal CostTax Levy CorporateServices Computer Hardware212,90022,900 Computer Software167,500117,500 Clerks Department Municipallaw Vehicle35,00030,000 CentralParking Meters, Newcastle22,0000 Emergency Services Bunker Gear andBoots93,61593,615 Diesel Vehicle ExhaustSystem50,00050,000 Pumper 14675,0000 Standby Generator-RRC225,0000 SCBA bottle replacement/upgrade25,00025,000 Proposed Capital ProjectsProposed Capital Projects DepartmentTotal CostTax Levy Engineering Services VariousStreet lighting407,000100,000 Foster Creek Neighbourhood Park600,0000 South Courtice Parking Expansion175,0000 NewcastleLeash Free Park105,0000 Structures Rehabilitation1,100,000666,220 Pavement Rehabilitation1,315,0000 Scugog/Middle Road1,500,0000 Concession Rd 3 (Middle to Liberty)2,120,0000 Green Rd (HarveyJones to Longworth)1,070,00030,000 Jackman Rd (Bridgeto Scugog)555,0000 Proposed Capital ProjectsProposed Capital Projects DepartmentTotal CostTax Levy Engineering Services Boundary Rd (Kawartha Lakes)525,0000 Green Rd Asphalt(Baseline to Aspen Springs)374,0003,740 Third St (Bernard to Liberty)230,000230,000 HoltRd (401 to Hwy 2) Design200,0000 Sidewalks and Walkways and Trails879,000336,852 Erosion Protection219,5000 NewcastleStreetscape Improvements70,00035,000 Operations Department Rural Road Resurfacing1,700,0001,200,000 Various Building Works637,500239,600 Fleet Replacement864,0000 Proposed Capital ProjectsProposed Capital Projects DepartmentTotal CostTax Levy CommunityServices CCC Lease Space Renovation525,00067,800 VariousRecreational facilities 741,500227,800 replacements and improvements Planning Services Land Acquisition820,000757,000 Clarington Library Board Library Technology80,00080,000 Library Collection110,00024,286 2015 Staffing2015 Staffing CAO DiscussionCAO Discussion Staffing ConsiderationsStaffing Considerations DepartmentPositionCost FinanceRevenue Clerk$50,000 Corporate ServicesBuyer$55,000 H & S/HR Rep. (include Accessibility Duties)$65,000 FireFire Prevention$90,000 Clerk 1 (convert PT to FT)$25,000 PlanningSenior Planner 2 (3 yr. Contract for zoning by-law)$90,000 EngineeringEngineering Technologist$65,000 Clerks1 summer student$8,000 OperationsClerk 1$45,000 1 LEO$60,000 2 students$20,000 Sport field tech.$55,000 TotalAll Departments$628,000 Council Priorities$100,000 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Revenue IncreasesValue Assessment Growth-825,417 Supplementary Taxes-5,000 LeaseIncome-20,000 Increase in Marriage Revenue-11,000 Additional Sport Field RentalRevenue-$43,000 Additional Entrance Culvert Revenue-7,000 AdditionalCemeteries Revenue-12,000 AdvertisingRevenue-CSD-7,000 Increase in Swim Revenue-NRDC,CCC-80,000 Fitness RevenueIncrease-14,250 Recreation Program Revenue Increases-30,300 TOTAL REVENUE INCREASES-$1,054,967 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense DecreasesValue IT TaxLevy Support to Capital-52,700 Non-affiliated and CUPE grid and retirement savings-44,577 Election salary savings-55,000 Newcastle P/TFF savings-47,290 Elected Officials Severance-10,087 Decrease in contribution to fire reserve to offset new FF-201,500 Decrease in transfer to municipal gov’t enterprise reservefund for energy savings-10,800 CFC-Savings from shutdown (net, notincluding salary or utilities)-49,600 Legal Professional Fees-15,000 HR Legal-10,000 HR Consulting/Staff development-5,000 Tourism Materials-6,000 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense DecreasesValue Volunteer Program BudgetRealignment-10,500 By-Law Professional Fees-6,500 Reduction to Legal -Tax Sales-5,000 Decrease in Bank ServiceCharges-19,500 Fire--Reduction toPrevention Promotion-15,000 Fire--Reduction to equip maintenance and SCBA-40,000 Fire--Savings on phase-out of radio equipment-50,000 Reduction to culvertmaintenance budget-5,000 Reduction to pavementresurfacing contract-20,000 Reductionto stormwater pond maintenance budget-7,500 Camp 30 studies reduction-45,000 TOTAL EXPENSE DECREASES-$731,554 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Revenue DecreasesValue Decreasein Commission Documents/clerk’s miscellaneous revenue8,500 Loss of Dog/Catlicense revenue (net of commissions)17,000 Theatre Dance Revenue Loss9,788 ReducedRRC leasehold recovery9,000 TOTAL REVENUE DECREASES$44,288 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense IncreasesValue TaxLevy Support to Capital -Clerk’s30,000 TaxLevy Support to Capital –Fire48,815 TaxLevy Support to Capital –Engineering168,672 TaxLevy Support to Capital –Operations151,600 TaxLevy Support to Capital -Community Services50,400 459,874 Non-affiliatedand CUPE negotiated increases 111,458 Fire negotiated and grid increases 35,917 Pay Equity 365,695 2014 New Positions -Fire 211,737 2014 New Positions non-affiliated and CUPE 66,395 Light Equip Operator Upgrade 142,176 CSD Part time *(linked to increased revenues) 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense IncreasesValue 24,211 EHT 132,971 OMERS 33,317 CPP 29,535 EI 137,778 Extended Health 189,495 WSIB 94,574 Utilities 2,500 Increase in transfer to Election Expenses Reserve 12,500 COD -Phone/copier leases 25,000 Post Employment Actuarial Liability 3,100 COD –Design 7,000 COD -Printing 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense IncreasesValue 11,500 COD -Advertising 3,600 COD -Tourism Events 10,000 IT Software Maintenance 20,000 IT Risk Assessment 7,500 By-law GPS units and monitoring 25,000 Tax Write-off expense 11,000 EMS -training, uniforms and bunker gear for increased staff 2,400 EMS -Epi pens 10,000 EMS -mandatory vehicle check increases 78,000 OPD -Streetlight hydro 20,000 Ontario One call locates 25,000 Playing field lighting 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense IncreasesValue 11,000 Parks contract -Cleaning at East Beach 8,000 Irrigation system costs 15,000 Playing field surface materials (risk issue) 6,500 Cemetery maintenance 22,000 OPD -Next gen radio system 6,500 Gravel Patching 31,500 Winter Maintenance -operating supplies 20,000 Bowmanville Museum Veranda and Pillars 5,000 CSD -CFC opening 10,000 PanAm Games 2,000 New Years Eve Event 12,500 Planning consulting 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority A ItemsPriority A Items Expense IncreasesValue 3,500 Energy Park Street name change 48,456 Balance of budget changes $2,960,676 TOTAL EXPENSE INCREASES 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority Priority BBItemsItems DescriptionValue 42,000 Electronic agendas and council laptops 50,000 Fire -Diesel Vehicle Exhaust System Upgrade 200,000 Operations -Increase to Rural Road Resurfacing Program 74,000 Planning -Increase to Land Acquisition funding 25,000 Increase in transfer to Eng Parks Cap R/f 25,000 Increase in transfer to Fac/Parks Maint R/f 25,000 Increase in transfer to C/S Capital R/F 400,000 Proposed New Staff and Council Priorities 5,000 Clerk's Miscellaneous -Office Furniture 10,000 EMS -Station 1 kitchen and various improvements 5,000 EMS -training supplies 2015 Budget Impact Summary 2015 Budget Impact Summary –– Priority Priority BBItemsItems DescriptionValue 50,000 ENG -streetlight inventory and design review 11,500 Bldg Maint -Station 5 bay doors, PM for overhead doors 10,000 Bldg Maint -annual envelope improvements 5,000 Bldg Maint -ES1 Controls 5,000 Brush/tree removal 15,000 Block Tree pruning 5,000 Rural Road trees 12,000 Priority Green 9,000 CIP $983,500 TOTAL PRIORITY B ITEMS Municipal Levy Increase SummaryMunicipal Levy Increase Summary CategoryTotal Total Revenue Increases-$1,054,967 Total Expense Decreases-$731,554 Total Revenue Decreases$44,288 $2,960,676 Total Expense Increases PriorityA Net Total$1,218,443 PriorityA Percentage Increase2.68% $983,500 Total Priority B Items Priority B PercentageIncrease2.17% CombinedPriority A And B Percentage Increase4.85% 2015 Budget 2015 Budget –– External Agencies Draft RequestsExternal Agencies Draft Requests Agency2014 2015$ Increase% Increase ApprovedRequest Clarington Library2,825,6102,892,47866,8682.4% Visual Arts Centre198,688202,6613,9732.0% Clarington Older Adult 255,000310,00055,00021.6% Centre Community Care Durham28,95329,5325792.0% Clarington Museums270,342277,1016,7592.5% Firehouse Youth55,00057,2002,2004.0% Newcastle CommunityHall18,00018,00000 OronoCemetery10,00010,00000 Overall Total$3,661,593$3,796,972135,3793.7% Municipal Tax Levy Impact0.30% Next StepsNext Steps Budget Binder and report to be circulated approximately Budget Binder and report to be circulated approximately  February 13February 13, 2015, 2015 thth Special Budget GPA Friday February Special Budget GPA Friday February 27th, 201527th, 2015  Council Ratification Monday Council Ratification Monday March 2nd, 2015March 2nd, 2015  Looking forward to 2016Looking forward to 2016 Increased tax support to capital Increased tax support to capital ––Asset ManagementAsset Management  Wage Wage settlements settlements and benefitsand benefits  Address contributions to reserve fundsAddress contributions to reserve funds  Staffing Staffing pressures to maintain service levelspressures to maintain service levels  Courtice Library ExpansionCourtice Library Expansion  COAA future directions and increased spaceCOAA future directions and increased space  Fire master plan recommendationsFire master plan recommendations  New development charges byNew development charges by--lawlaw  Continued monitoring of cash flow on indoor recreation DC Continued monitoring of cash flow on indoor recreation DC debtdebt  Strategic Plan ImplicationsStrategic Plan Implications 