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Home My WebLink AboutTR-14-86 r TOWN OF NEWCASTLE REPORT File #,0 °i Res. # By-Law # MEETING: General Purpose and Administration Committee DATE: MARCH 3, 1986 REPORT #: TR-14-86 FILE #: SUB,ECT: 1986 CURRENT & CAPITAL BUDGET RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administra- tive Committee recommend to Council the following: 1 . That report TR-14-86 be received; and 2. That the 1986 Capital and Current budgets for local municipal services be approved; and 3. That the Capital Budget for years 1987 to 1990 inclusive be deferred pending the receipt and disposition of the Arena Feasibility Study and the Road Needs Update Study; and 4. That the Newcastle Hydro Electric Commission be requested to establish their long term priorities by submitting a detailed Five Year Capital Budget, and further, that they provide an updated Street Lighting Inventory; and 5. That the staff bring forward a report on conflict of interest insurance when reviewing the Town's total Insurance package in June of this year; and 6. That Staff be authorized to establish a building conservation reserve account and bring forward the by- law for approval ; and 7. That the Treasurer of the Town of Newcastle be authorized to make application to the Canadian Imperial Bank of Commerce to obtain a Visa Card for the Mayor. . ./2 General Purpose & Administration Committee Meeting Page 2 TR-14-86 BACKGROUND AND COMMENTS: Assuming a general surplus of $475,000 and the budget as revised, the 1986 General Municipal Mill Rate is 3.65% higher than the 1985 General Mill Rate. This does not include special area rates. Staff, with the cooperation of Budget Committee Members have been able to hold the line on the Mill Rate for a number of reasons: a) a slightly higher surplus in 1985 b) useage of reserves and reserve funds to finance appropriate projects c) 5.41% growth in residential taxable assessment 1 .55% growth in commercial taxable assessment 1 .06% growth in business taxable assessment d) general restraint in the budget in 1986 while at the same time being able to address a number of major issues. The 1986 Mill Rates which result from the budget as presented are shown on the attached Schedules. Because of changes in the cost to provide Street Lighting and Garbage Collection, the area rates have experienced some substantial increases in 1986, while others have declined due to an increased j assessment. i The overall Mill Rate for municipal purposes represents a 3.65% increase over 1985. For residential property with an average assessed value of $3,150, this will represent an increase in property taxes of $10.86. On reviewing the first budget draft it was necessary to further refine certain amounts which resulted in a negative adjustment. However, staff on reviewing revenues were able to offset this negative impact by increasing certain revenue accounts by approximately $100,000. Further, a detailed listing of all budget changes as agreed to by the Budget Committee and recommendations of staff will be provided for the G.P.A. Meeting. . ./3 I I General Purpose & Administration Committee Meeting Page 3 TR-14-86 REVENUE: The government grants have been conservatively budgeted as we have not received any indication as yet regarding any increases in funding. le. Payments in lieu of taxes. The M.T.C. Grant has been budgeted to reflect a 5% increase over 1985 for road subsidy allocations and this has been confirmed by the Ministry. The Unconditional Grant Revenue has been budgeted for 1 .5% increase over the 1985 level . Calculations per the formula provided by the Ministry indicate an increase of 2.1%, however, certain figures are estimated, therefore the exact increase is not available at this time. A separate report with respect to Unconditional Grants will be forthcoming. Building Activity within the Town is expected to increase over the 1985 levels and staff have adjusted building permit revenues to reflect this increased activity. Penalties and Interest on Taxes and Investment Income have been increased to more closely reflect prior years actual while at the same time considering the Town's economic stability and present interest rate trends. There are numerous contributions from reserves, reserve funds, debenture proceeds and Ontario Hydro to fund capital projects in the Public Works Department, Community Services Department and a new Administrative Complex. EXPENDITURES: The salaries and benifits have been budgeted using 1986 rates except for the Mayor's Salary which is budgeted at the 1985 rate. Budget figures provided for additions to Staff reflecting increases in service levels and the new i demands of an expanding population and increased development activity. . ./4 General Purpose & Administration Committee Meeting Page 4 TR-14-86 REVENUE: (continued) Tax write-offs are again budgeted fairly high to offset possible losses due to major assessment appeals which are pending. A further report with respect to establishing a reserve for tax write-offs will be forthcoming. Unlike other municipilities that are proposing tax increases well in excess of the current inflation rate, the Town of Newcastle, because of its strong financial position along with the cooperation that exists between members of Council and Staff have been able to minimize the impact of the Mill Rate increase for 1986. Respectfully submitted, J .R. Blanchard, Treasurer. JRB/pp ATTACHMENTS: (2) I i I Analysis of Adjustments Revenue Per 1st Draft 9,442,929 Additions per staff report TR-4-86 400000 Reserve Fund Contribution 200,000 Surplus 125,000 Energy Grant 20,000 Reserve Fund - O.H.A.P. 50,000 B. I .A. 's 1 ,250 Reserve Fund Cemetery Land Purchase <50,000> Additional Revenue Supplementary Residential Taxes 20,000 Investment Income 40,000 Penalty & Interest on Taxes 25,000 Miscellaneous Revenue Finance 8,000 Miscellaneous Revenue Public Works 7,500 Building Permits 15,000 By-law <300> Adjustment < 5> Revenue per 2nd Draft 9,944,374 Additional Revenue These additional adjustments have been made to bring the tax levy increase to within 4% as directed by the budget committee. Staff are satisfied with these additions, however, I must caution Members of Council that further revenue increases must be realized through an increase in the proposed tax levy. Summary of Adjustments These adjustments were proposed by the Budget Committee and Members of Staff : Expenses per 1st Draft 14,689,154 Less: Staff adjustments per report TR-4-86 <97,100> Per Budget Committee - Street Lighting <36,700> Enniskillen Grant <21 ,000> Cemetery <50,000> Newcastle Community Services Planning Board <1 ,884> Mayor' s Office <20,750> Purchasing <600> Library Grant <132,771 > Library Capital <110,000> Increases - Administrator - Advertising 1 ,400 Tourism & Industrial Development 10,000 Finance - Equipment 1 ,000 Transfer to Reserve - Building Conservation 20,000 Newcastle Village Hockey 3,000 Reserve Fund Library 10,000 Visual Arts 1 ,000 Museums 38,150 Energy Audit Program 20,000 Crossing Guards 3,000 Clarke Public Library - Insurance 420 Miscellaneous 830 Levies 43,810 Expenses per 2nd Draft 14,370,959 Special Area Mill Rates 1986 1985 % Residential Commercial Residential Commercial Increase Industrial Industrial Decrease Bowmanville, Orono, 8.771 10.319 9.900 11 .647 (11 .4) Newcastle, Street Lights Rural Street Lights 8.939 10.517 9.665 11 .370 ( 7.5) Bowmanville Regional 5.813 6.839 5.199 6.116 11 .8 Garbage Bowmanville Municipal 15.542 18.285 13.365 15.724 16.3 Garbage Newcastle Garbage 17.162 20.191 12.403 14.592 38.4 Orono Garbage 29.030 34.153 21 .675 25.500 33.9 General Municipal Mill Rate 1986 1986 % Residential Commercial Residential Commercial Increase Industrial Decrease General Municipal 97.932 115.214 94.485 111 .159 3.65 Services Levy 1986 Levy $4,356,898 97.932 115.214 94.485 111 .159 3.65 Adj.Density <150,754> Grant 1986 $4,206,144 94.543 111 .228 94.485 111 .159 0.061 Levy 4% Inflation 165,000 - - - - - $4,371 ,144 983,252 115.591 94.485 115.591 3.99 Above rates do not include area rates. Adjustment $165,000 Reserve Fund Arena <100,000> Library < 40,000> Contingency < 25,000> Additional Ins. Expense Summary All Street All Garbage All General Light Areas Areas B.I .A.'s Region Schools Total Revenue (9,035,856) - - <55,950> <127,255><250,313> <9,469,374> Expenditure 13,717,000 162,362 391 ,837 55,950 43,810 - 14,370,959 Estimated 1985 (Surplus (475,000) 14,082 (3,414) - Deficit) 1986 Levy (4,206,144) 176,444 388,423 NIL NOTE: * This information not available yet. i i Summary All Street All Garbage All General Light Areas Areas B.I .A.'s Region Schools Total Revenue (8,885,102) - - <55,950> <278,009><250,313> <9,469,374> Expenditure 13,717,000 162,362 391 ,837 553,950 43,810 - 14,370,959 Estimated 1985 (Surplus (475,000) 141082 (3,414) - Deficit) 1986 Levy (4,356,898) 176,444 388,423 NIL NOTE: * This information not available yet. i I I I Special Area Mill Rates 1986 1985 % Residential Commercial Residentail Commercial Increase Industrial Industrial Decrease Bowmanville, Orono, 8.771 10.319 9.900 11 .647 (11 .4) Newcastle, Street Lights Rural Street Lights 8.939 10.517 9.665 11 .370 ( 7.5) Bowmanville Regional 5.813 6.839 5. 199 6.116 11 .8 Garbage Bowmanville Municipal 15.542 18.285 13.365 15.724 16.3 Garbage Newcastle Garbage 17.162 20.191 12.403 14.592 38.4 Orono Garbage 29.030 34.153 21 .675 25.500 33.9 General Municipal Mill Rate 1986 1986 % Residential Commercial Residential Commercial Increase Industrial Decrease General Municipal 97.932 115.214 94.485 111 .159 3.65 Services Levy i i i I i