HomeMy WebLinkAboutTR-16-95 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: SPECIAL GENERAL PURPOSE AND ADMINISTRATION COMMITTE�ile# -j5-C ,5
Date: MARCH 31, 1995 Res. #
By-Law#
Report#: File#:
Subject: 1995 CURRENT BUDGET AND 1995 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-16-95 be received for information;
2. THAT the 1995 Capital Budget (Schedule #1) and the 1995 Current Budget (Schedule
#2), which includes the Executive Summary and External budgets, be approved, as
outlined in Report TR-16-95;
3. TRAT the Four Year Capital Forecast be endorsed in principle;
4. THAT By-law #94-129, Section 5.13, be waived for the selection of G.I.S. consultants;
and
5. THAT the policy recommendations outlined in Section 7 of Report TR-16-95 be
approved.
BACKGROUND-
1.0 The 1995 Current and Capital Budget Impact:
1.1 The 1995 Current Budget and 1995 Capital Budget and Four Year Forecast are presented for
Council's consideration. The direction from Council to bring forward a budget reflecting an
overall 0% increase has been achieved and is reflected in the current budget document.
PAPER° E°Y°LE
THLS 6 PRIMED EN RECYCLED PAPER
TR-16-95 Page - 2 -
1.2 The 1995 Mill Rate for municipal purposes only has been calculated at 0% as follows:
1Vlwue�pa� llll Rafe :995 Proposed 1994 Actual lC�xexease/
{Decrease}
Residential 137.5 137.5 0 %
Commercial 161.8 161.8 0 %
Average Household 1995 Average 1994 Average {Decrease)
lxapaet Tag B� Tag Bi�llll.
Municipal Tax Bill $ 440.00 $ 440.00 0%
Garbage Flat Rate 117.00 140.00 (16.4)%
R+esIdentzal Tax 55'7 O0 $ 580:00 (4}%v
%.Bin..Total
1.3 In preparation of the 1995 Current Budget there were some departmental considerations that
would potentially.have enhanced some levels of service which have been left out of the budget in
the calculation of the 0%. These items have been itemized and prioritized by the individual
departments on Attachment #1 for Council's consideration.
1.4 In addition, external budgets prepared by the Library, Museums, Visual Arts Centre, etc. have
been adjusted to reflect a 0% increase, in accordance with Council's direction, for the Mill Rate
calculation. The value of the requests submitted are reflected in Attachment #1 for Council to
consider the impact of the increases requested.
1.5 As Council is aware, the increase in growth and the resulting accommodation of additional parks,
roads, etc. means that the budget is providing the same service over an extended base and in
combination with a dwindling surplus, it becomes more difficult to achieve a 0% overall budget
impact.
1.6 In September 1994 Council received for the first time, in Report TR-87-94, a Five Year
Operating Forecast which outlined a reasonable impact on the tax base in order to accommodate
the perceived Municipal operating objectives over the short term (copy of TR-87-94 is included
in the Current Budget document). This forecast projected an impact for 1995 of 6.9% based on
projected assessment values. The impact of the same proposed budget using the actual 1995
assessment values lowers the proposed 1995 budget to 5.7% . Essentially the requests identified
in the 1995 operating forecast proposed to Council in TR-87-94, are included in the items for
consideration on Attachment #1 attached.
TR-16-95 Page - 3 -
1.7 The 1995 0% budget incorporates some additions to the tax base that were not controllable and
for the most part imposed from external sources. These additions include $150,000 fee for
supplementary assessment from the Provincial directive, 15% increase in insurance premiums for
one-half of 1995 (we have been advised that there will be a 30% increase in total premiums
expected over the next year), increase in legal fees regarding representation at the Ontario
Municipal Board for Official Plan referrals, and the commitment to the fire primary response
through the 1993 Ontario Hydro agreement of $125,000 per year for ten (10) years (this was
deferred in the 1994 budget to adjust the impact over nine (9) years beginning in 1995). In
addition there are impacts provided for pay equity issues including merit considerations. As
Council is aware the non-affiliated staff have had grid movements frozen for the last three (3)
budget years while the affiliated staff (C.U.P.E. and Fire), have continued to move unrestricted
through the collective agreement grids. In consideration of the requirement to treat all employees
equally and fairly, of both social contract and the pay equity legislation, it is proposed that the
merit system be reinstated in 1995.
1.8 The combined effect of the savings realized through the 1994 garbage contract is to have an
overall reduction in the average household tax bill of approximately 4%. This would
allow Council to consider some of the requests outlined in Attachment #1, without increasing the
household tax bill. The commercial/industrial tax bill would realize the benefit of the garbage
rate reduction for the single garbage charge which is applied to the realty portion of the tax bill.
Business tax bills are not charged the garbage flat rate.
2.0 Historical Review:
The Council's commitment to the ratepayers of the Municipality of Clarington is exemplified in
the historical mill rates that have been implemented over the past few years. Some of the more
recent mill rate increases and assessment growth are as follows:
Year Mill Rate Increase °lo Assessmenit Growth
1995 0% 3.5%
(proposed)
1994 0% 2.2%
1993 (.05%) 4.1%
1992 1.4% 5.6%
TR-16-95 Page - 4 -
3.0 1995 Current Budget:
3.1 Human Resources
The 1995 Current Budget also provides for the distinction of the costs associated with the human
resources function which has been historical included in the Finance budget under Unclassified
Administration. These appropriate accounts have been reduced in the Unclassified section and
reflected under Administration section of the budget. This Human Resources function is
essentially handled between the Administrator and the Treasurer, and as Council can appreciate,
the impact of Provincial downloading through the Social Contract, Pay Equity and Employment
Equity legislation along with the time commitment of Negotiations (C.U.P.E. and Fire) and every
day administration of human resource issues is leading to consideration of a Human Resources
Director. However, this is not proposed in the 1995 operating budget.
3.2 Total Quality Management (T.Q.M.)
Total Quality Management (T.Q.M.) as a staff development initiative was approved by the Council
in the 1994 budget. Funding of approximately $14,000 has been carried over from the 1994
budget to accommodate Phase 1 of a four part training program which is scheduled to begin in-
house on April 12, 1995. Durham College is providing the instructor for the course, and the
Municipality has made application for subsidy through the Ministry of Skilled Trade with the
potential to receive up to 30% of the training cost. Each phase of the course is ten (10) weeks
and it is anticipated that after completing Phase 1, the merits of the program will be assessed
and Phase 2 may then be scheduled for the fall of 1995, based on the approved 1995 Operating
Budget. The total staff development budget is proposed in accordance with the requirement
under social contract to commit 1% of gross payroll to staff development and training.
3.3 Economic Development & Tourism
The 1993 budget provided capital and start up costs for the introduction of the Economic
Development Office to the Municipal operations. The 1994 budget saw the hiring of an
Economic Development Officer and the success of this initiative as evidenced in the reports
presented to Council over the past year which outline the increased activity on the economic
front. This increased activity translates to increased assessment in commercial industrial and
business of approximately 4.9% over 1994. This function was budgeted at approximately
$192,000, which was accommodated in part in 1994 by a transfer of $60,000 from the
Economic Development Reserve Fund. In order to mirror the 0% impact for the 1995 budget,
this funding source remains as approved in 1994.
The 1995 budget proposes to introduce the addition of one position to supplement the Economic
Development Office; a Marketing and Tourism Officer. The economic spinoff for the entire
Municipality, including the local businesses and trades, resulting from the
professional exploration of the untapped tourism opportunities and the appropriate marketing of
these resources will translate to further economic advancement and increased assessment growth.
TR-16-95 Page - 5 -
Development Reserve Fund by approximately $30,000 in total. It is anticipated that these
functions will become self sufficient over time through additional assessment growth, and will be
built into the tax base in 1996 and future years with decreasing reliance on contributions from
the reserve fund.
3.4 Contract Positions
There were two contract positions approved in the 1994 budget, aside from the Economic
Development Officer, the Assistant to the Manager of Engineering in Public Works and the
Purchasing Assistant. The Assistant to the Manager of Engineering position is tied to
development and is primarily funded by the Engineering and Inspection Reserve Fund which is
made up of developer contributions in the subdivision agreements for this function. The
Assistant to the Purchasing Agent was established in 1994 by way of adjustment of a part-time
position which had been on the organization chart for many years. The Purchasing Division
services the entire organization and with the increased tenders and purchasing requirements as a
spinoff of growth, the contribution of this position to the organization will continue to the enhance
the purchasing function.
Both of the positions, after having undergone a one year trial period are considered to be vital to
the efficient operations within the departments and the organization as a whole and as such are
being recommended for permanent status. Both positions have been built into the tax base in
1994, and therefore would have little impact on the 1995 tax base.
3.5 Courtice Community Complex
The operating cost associated with the Courtice Community Complex core facility is not
anticipated in the 1995 current budget. The Library component of the facility does have some
operating costs associated with the book collection built into their 1995 operating request. These
costs will be considered by Council in reviewing the Library's 1995 budget request.
4.0 1995 Capital Budget
4.1 Facilities
The capital budget provides for the construction of the Courtice Community Complex with
completion in 1996, renovations to the Court Building in conjunction with the Durham Non-profit
housing complex, and the changes to the G.B. Rickard Recreation Complex, all of which are in
accordance with the prior approvals through the Canada Ontario Infrastructure Works Program.
The funding for these projects are from the infrastructure grants, development charges and lot
levy reserve funds, and therefore do not affect the tax levy.
TR-16-95 Pam
4.2 Geographic Information System
The capital budgets over the past few years have provided for funds totalling approximately
$174,000 associated with the acquisition of a geographic information system. The technology has
been changing so rapidly in this area, and in order to ensure that the system will be compatible
with the Regional and other systems and be a fully integrated application, Staff have developed a
terms of reference for professional consultants to evaluate the corporate needs, establish a critical
path, and make recommendations for hardware and software requirements. This is phase 1 of the
process and it's projected cost is $60,000. With the funds that were provided in prior budgets,
the selection process for consultants was initiated prior to the recent changes to the tender by-law
which now requires that consultants be requested to submit written proposals, with ultimate
recommendations to Council. The selection process is at the stage where the consultants have
been short listed, and it is anticipated that the GIS staff committee will be in a position to accept
one of the bidders shortly. Because the process has been extremely lengthy and the bids have a
time limitation on the prices quoted it is therefore recommended that the current tendering by-
law # 94-129 section 5.13, be waived for the purposes of selecting the G.I.S. consultants. Phase
1 of the process will provide recommendations on the corporate requirements, which will be
brought back to Council prior to proceeding with phase 2 (the determination of the specific needs
for hardware and software) and phase 3 (the implementation and integration of the applications).
5.0 Garbage
The garbage charges include collection, which is a Municipal responsibility, as well as disposal
tipping fees and recycling, which are a Regional charges. The Region has maintained the tipping
fees at the 1994 value of $70.00 per tonne, and this combined with the contract renewal for
collection at a much reduced price, provides for the flat rate for garbage to be reduced from
$140.00 in 1994 to a proposed $117.00 in 1995. This is a reduction of ( 16 % ), which when
added to the proposed overall household tax bill, provides a net reduction in the 1995 tax bill of
approximately 4 %.
Council has attempted over the past few years, to stabilize the flat rate garbage charge by
transferring funds into the Garbage Reserve, however since it is anticipated that the municipal
portion of the charges will remain fairly constant as provided through the five year contract, a
transfer is not recommended for 1995.
6.0 Surplus
The 1994 approved budget provided for application of $860,000 surplus to the 1994 mill rate.
As the 1994 year end transfer report TR-32-94 identified, there would be sufficient surplus
available for the 1995 mill rate application, and the 1995 budget has been achieved by
application of approximately the same surplus value. The actual accumulated surplus value and
final budget application will not be available until after the auditors have confirmed the year end
statements. This will be reported to Council through the 1994 year end transfer report at a later
date.
TR-16-95 Page - 7 -
7.0 Policy Issues
7.1 There have been several administrative policy issues which have arisen throughout the year
which require Council endorsement:
a) Debentures - Council and Staff have been proactively working on a property acquisition
program in the Waterfront Area and now are at the point of identifying both cost and
funding. Within the next month, a report will be forthcoming which outlines strategies
which may include debenturing some portion of the cost. The Chief Administrative
Officer will be elaborating on the intention with respect to property acquisition.
b) The Council passed a resolution dealing with the use of corporate credit cards in 1994
which has made it difficult for Department Heads to carry out some normal functions, ie
registering for conferences, etc. In consideration of the approval process that is in place
for authorization of payment of credit card invoices and the tendering by-law which
restricts purchases, it is requested that the previous resolution be rescinded.
8.0 Looking Ahead
8.1 In light of the savings realized through the recent garbage contract award, Staff propose to
continue to investigate the contracting out of services in order to provide the same or
enhanced levels of service more economically. The consulting services are currently being
considered along with the Animal Control Services which was recently brought to Council for
tender. 1995 will be the final year in the three year grass cutting contract, after which it will be
assessed and considered in the 1996 budget.
8.2 The impact of the Federal Government 1995 budget is not anticipated to affect the
Regional budgets for welfare etc. until 1996, and therefore it is expected that the impact will be
significant from a Regional perspective in 1996.
8.3 The Courtice Community Complex operating costs associated with both the core facility and the
library will also impact the 1996 tax base. The Social Contract which caused the permanent loss
of over $400,000 in revenue, will be ending in 1996, and the impact is likely to be another
significant drain on the tax base.
8.4 In anticipation of the impact to the 1996 tax base, Council may wish to consider a gradual
impact on the tax base in order to help accommodate and phase in the above uncontrollable and
committed costs. A 0% tax impact restricts the manoeuvrability for accommodating future tax
impacts and requires that existing service levels are extended over a wider base which may
impair the fundamental level of service in some areas.
TR-16-95 Page - 8 -
8.5 On a bright note, the positive indicators such as the 3.5% combined assessment growth, indicate
that the economy, at least on a Regional basis is improving. This in combination with the
tourism and marketing initiatives proposed through the 1995 budget, are anticipated to enhance
Clarington's profile and advance our position in the Greater Toronto Area and in the economic
development community.
ResZAMarauno,bmitted, Reviewed by,
ar H.BSc.,A.M.C.T. W.H. tockwell,
Treasurer Chief Administrative Officer.
MAMIhJuPP
Ran e:Ai P61 Attachment 41
_....
A. 4:9 :.QPRATIIVG;HUi7 c .>
Hotrs+�hold.... s4?►O;Tax:@aYs Fbr 9b ..1995 f#gA
Expendgtu�e. Revenue 5urp#us.. Net Tax.;: Tax Bill.:< [CAPITAL&CURRENT EXP]
A.1 1994 NORMAL OPERATIONAL EXPENSES 19,958,000 8,674,000 860,000 10,424,000 $440.00 Roads-Construction&Mtnc. 32 $142 $145
Add: Uncontrollable Increases[CPP,UIC,Insurance(15%),etc.] 100,000 Community Services 34 150 70
Less:Net Reduction Exp.[Election,Roads Mtc.,etc.] (267,000) Fire Protection 7 30 48
Plus: Province- Fee Supp.Assessment 160,000 Government Services 13 56 88
Fire-Commit$125,000 to base for primary response 125,000 Planning&Development B 27 44
Planning&Development-OMB hearings referred via OP 20,000 Library 4 20 18
Unclassified-Conting./Pay Equity/Merit/Negotatlons Impact 60,000 Debt Charges 2 10 18
Capital through Current Increase on Tax Levy 50,000 Other[Grants,etc.] 1 6 9
Assessment Growth Contribution 370,000 CA Tax Bill without Garbage 440 440
Net Decrease in Revenue (132,000)
0 Garbage[flat rate] 117 140
Subtotal 238,000 132,000 0 370,000
A.2 *1995:�34Pf!IpITUflB ai'ox#sR#n €$vel of srvta�/R :1tPNll 20i198,pQQ:: 8C.4 ,Qp0 ..> +#6.0'ppp 16,7$4 ppQ..: $44QOU: C.2 Total Munici al Tax BIII 100°°
557 580
C.3 QVEH.. 4V, QEGRIEASF
[Note C?tt an average fax:bill of44p
eve: aids too . .
..
Im at <: a
;::: ::;::;:. R>::�,..: ate;'.' ;impact.;;:•`:;; oitse.n. :; ax oil
B.
:0,
' $a i�t. r'�: � urr. 11t> : G 995 :.: 9 ax' i 1995 1994 lincludng gnrbegel
B.1 Fire: DA Residential 137.52 137.51 0.01% $557.00
1. Clerk Typist II salaries&bencf-itsj 27,130 1.09 Commercial 161.79 161.77 0.01%
2. Training Officer
172
64
2.67 Impacts`ofAddihons .
3. Alternative-24 hour Clerk Typist 17,500 0.70 D.2 1xcludltt9:Litra
4. Students for Junior Firefighting Program
6,000 0.24 Rsidenilal. t46 9 t7 51 6$p% `'
8.2 Community S
ervices:
D.3. . [ncludirt .Libt ..:::....:::..
Building Services
Program-
transfer o
t Reserve
Fund
200 000 8.00
B.3 Clerks:
1. By-Law Enforcement Conf.Secrets 32,300 1.29 D.4 TOTAL TAX BILL TOTAL
2. By-Law Enforcement Officer 39,300 1.57 INCLUDING IMPACTS &GARBAGE1 $593.00
3. Microfishe/Records Retention 60,000 2.40
4. Records Co-Ordinator 37 500 1.50
B.4 Economic Development: Note:Recommended funding:
1. Marketing&Tourism Officer 1proposal reflected in 1995 Budgetl $30,000-Eco.Dev.Reserve Fund 0 0.00
B.5 Public Works:
2 labourer positions fwages,benefits&vehicle time]67 000 2.68
B.6 Unclassified:
1. Sick Leave Reserve Fund-transfer increase re: urchase 30,000 1.20
2. Develo ment Charges-municipal contribution to R/F increase 25,000 1.00
8.7 Grant Requests: adjusted to o%:
Bowmanville Museum[requesting increase of 3.0%] 95-$58,010 95-$59,7501 1,740 0.07
Clarke Museum increase of 0% 94-$57,403 0 0.00
Handi Transit increase of 3.7% **for extended service 95-$91,500/95-$94,9001[$3,4001 0 0.00
Library 19.2%inc.Court.&New./5.5%incr,on 1994 existing base 94-$820,608/95-$978,2851 167,677 6.31
Visual Arts Centre[requesting increase of 4.9%1
94-$41,131/95-$43,1311 2,000 0.08
Grants-Civic&Other-Total increase in requests see bud et 77,450 iL 3.10
8.8 Bud et Referrals throw h Resolution:
1. Pitch-In Canada December 12,1994 260 0.01
2. Durham Freenet[January 1995 GPA
-55-951 7,700 0.31
3. Autism Socity Ontario March 6,1995 1,000 0.04
4. Durham Region Farm Safety Association March 13,19951 50 0.00
5. Ham ton Communi Hall Board Association March 13,1995 no amounts specified 0.00
6. Bowmanville Minor Hocke Association March 13,1995 200 0.01
7. United Church of Canada March 13,19951 1..amounts ecified 0.00
B.9 TOTAL 1995 CONS.OPERATIONS/IMPACT 853 969 L 34.16
*1995 Normal Operating Expense has built in the operations cost of additional roads and parks etc.assumed through the 1994 budget Into
the base,therefore,the existing levels of service are being provided over an expanded base.
**Provided for in 1994 Contingency Account
i
Range: A63—K75 DN: 95BUDCON.WK1 Page 2 of Attachment#1
BUDC,ET REFERRALLS 1NCl,UQED IN INQI�/IDUAL DEPARTMENT'S;BUDGETS
1. Optimist Club of Newcastle Village included in Grants — Other 5,000
2. Sidewalks — Lord Eli n School WD-4-95 included in Public Works budget 100,000
3. Courtice Mill Phase II — Trulls Rd Reconstruction Public Works budget
4. Construction of Sidewalks in Enniskillen Public Works budget 139,000
5. Dream Catchers — Bar — Handi Transit — Jan 16/951 extended service — included in Handi Transit's bL d et
6.Fitness Centre arkin included in Community Services budget
7. Crossing Guard&painted crossing at Mitchell Corners « included in Planning &Development budget
8.Assistance in —Law Enforcement[weekends] covered in Clerk's section in Considerations for
1995 Current Budget
9.Total Quality Management process identified in budget report