HomeMy WebLinkAboutTR-21-89 TOWN OF NEWCASTLE 2-A
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hEETING: SPECIAL GENERAL PURPOSE & ADMINISTRATION COMMITTEE MEETING
DATE: February 27, 1989
REPORT #: TR-21-89 FILE #:
SUBJECT:
1989 CAPITAL BUDGET & FOUR YEAR FORECAST
(First Draft)
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-21-89 be received; and
2. That the Town portion of the 1989 Capital Budget and Four
Year Forecast be approved in principle; and
3. That the Library and Museum portions of the 1989 Capital
Budget and Four Year Forecast be considered, and approved
in principle.
REPORT
The 1989 Capital Budget and Four Year Forecast are presented in the first
draft for Council's consideration. Special consideration has been given to
the Tax impact of the capital projects recommended for the current year.
The following table can be used in reviewing the budget as a reference summary of
each recommended project and the comparative 1988 and 1989 tax levy impact.
The table excludes the capital reports submitted by the Library and Museum boards.
. . .2
TR-21-89 Page 2
-------------TAX----------------
TOTAL TAX LEVY % % %
BUDGET DEPT. TOTAL INCREASE
1989 1989 1988 BUDGET LEVY 1989/1988
General Government:
A) Admin. Complex 150,000 150,000
B) Furniture & Eq. 7,620 -
493,920 157,620 150,000 31.90 11.2% 50
Clerks: 3,800 3,800 - 100% .3% -
Public Works:
A) Roads & Bridges 751,900 839,250
B) Street Lighting 38,000 30,000
C) Sidewalks 46,000 50,000
D) Equipment - -
4,995,000 835,900 919,250 16.7% 59.6% < 9.1>%
Fire:
A) Construction 100,000 9,000
B) Vehicles 65,000
C) Equipment 58,725 20,000
468,725 223,725 29,000 47.7% 16.0%
Community Services:
A) Administration 15,550 -
B) Building Mtnc. - 19,550
C) Cemeteries 57,250 61,250
D) Facilities 16,800 25,650
E) Land Acquisition - -
F) Parks & Cemeteries Eq. - -
G) Parks Develop./Mtc. 59,000 25,150
H) Program Equip. 3,125 -
1,060,775 151,725 131,600 14.3% 10.8% 15.3%
Planning:
A) Animal Control 7,500 2,500
B) Furniture & Eq. 21,225 -
28,725 28,725 2,500 100% 2.1%
TOTAL _71050,945 1,401,495 1,232,350 100% 13.7%
* Distorted % due to prior year minimal impact
TR-21-89 Page 3
The philosophical approach to the preparation of this year's capital budget has been
to provide for the completion of significant projects in their entirety where
possible in order to minimize disruption to the public while at the same time
realizing financial benefits through ecomomies of scale.
The calculated percentages indicate that the largest dollar impact in the tax levy
is the represented by Capital Projects related to Public Works. This impact on the
tax levy, however, is less than it was for the projects implemented in 1988.
The significant area of increase in the proposed 1989 tax levy over the 1988 tax
impact is related to capital projects in the Fire Department. This is largely
attributed to the construction of a Northern Fire Station and the provision of
related equipment.
The lot levies applicable to fire needs have only been in existence as a separately
devoted levy since 1986, and as such they have not accumulated to a significant
degree. In order to provide the services recommended without delay, therefore, it
will be necessary to utilize various sources of funding including the amount
specified regarding the tax levy.
The past two year period has seen the completion of two major capital projects,
namely the New Bowmanville Recreation Complex, and the Newcastle Administrative
Centre. In this connection there are a number of items that were not anticipated
or addressed in the original budget related to the Administrative Centre. These
items are included in the 1989 budget and relate predominantly to necessary changes
required through construction.
The proposals recommended for Capital works related to Community Services provide
for a significant step in addressing the immediate needs of the Community. This
includes expenditures in the areas of park and facility development.
It should be noted that a significant portion of the tax levy related to Community
Services projects is an expenditure for improvements to the Cemetery in Bowmanville.
This amount was unexpended in 1988 and therefore has been rebudgeted in 1989. This
project will only take place if there is Provincial funding made available to the
Town.
. . .4
TR-21-89 Page 4
This portion of the budget also takes into account a program for building
maintenance. The details regarding this program are provided under separate cover
and address the manner in which some of the maintenance work can be completed in the
short term.
The requirements for the four year forecast of capital projects have been
addressed individually through staff budget discussions. The lot levy
requirements that are proposed for anticipated capital projects have been
accounted for through conservative growth projections of 5% for each
department. If the assessment growth of the municipality continues in the
current trend, the projected figures should amply accommodate the planned
capital projects.
The portion of the budget as recommended by the Library and Museum boards, indicate
a significant increase in expenditure and in particular the tax levy largely due to
the perceived needs of the Library Board. These needs will require consideration in
terms of the overall needs of the Town and the time frame related to project
implementation relative to the tax impact.
The draft budget is respectfully submitted for Committee's consideration at this
time. It should be noted, however, that the current budget requirements may
necessitate some adjustment in timing related to capital works projects.
At the commencement of budget discussions on February 27th, 1989, staff will provide
a brief budget overview.
Respectfully submitted, Recommended for presentation
to the Committee
Marie A. Marano, Lawrence EA Kotseff,
Acting Treasurer. Chief Administrative Officer.
MAM/pp