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Home My WebLink About11/24/2015 Special Budget Workshop Notice of Special General Government Committee Meeting Date: Tuesday, November 24, 2015 Time: 9:00 AM to 2:00 PM Place: Clarington Public Library, Courtice Branch Great Room The purpose of the meeting is to receive a verbal report from the Director of Finance/Treasurer on the 2016 Budget. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-3330 Special General Government Committee Agenda Date: November 24, 2015 Time: 9:00 AM Place: Clarington Public Library Courtice Branch, Great Room Inquiries & Accommodations : For inquiries about this agenda, or to make arrangements for accessibility accommodations for persons attending, please contact: Michelle Chambers, Committee Coordinator, at 905-623-3379, ext. 2106 or by email at mchambers@clarington.net. Alternate Format : If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. Audio Record : The Municipality of Clarington makes an audio record of General Government Committee meetings. If you make a delegation or presentation at a General Government Committee meeting, the Municipality will be audio recording you and will make the recording public by publishing the recording on the Municipality’s website. Noon Recess: Please be advised that, as per the Municipality of Clarington’s Procedural By-law, this meeting will recess at 12:00 noon, for a one hour lunch break, unless otherwise determined by the Committee. Copies of Reports are available at www.clarington.net Special General Government Committee Agenda Date: November 24, 2015 Time: 9:00 AM Place: Clarington Public Library Courtice Branch 1 Call to Order 2 Disclosures of Pecuniary Interest 3 Finance Department 3.1 Verbal Report Verbal Report from the Director of Finance/Treasurer Regarding the 2016 Budget. 4 Adjournment Page 1 Handouts/Circulations General Government Committee Meeting 2016 BUDGET EDUCATION SESSION NOVEMBER 24, 2015 AGENDA • Introduction • BMA Statistics • Historical Trends • Asset Management Plan • Long Term Debt • Reserve Fund Issues • Capital • Staffing Update • Utility/Energy Update • Operating • Assessment Issues • Next Steps HIGH LEVEL FACTS • 1% = $479,000 for 2016 Budget • Average household and cost per household not yet available • 2016 returned roll due second week of December SHARE OF PROPERTY TAX BILL-2015 31% 50% 19% REGION OF DURHAMEDUCATIONCLARINGTON 2015 FINAL BUDGET-HOW IS EVERY $100 SPENT ON CLARINGTON PORTION OF TAX BILL OPERATIONS* $20.91 FIRE SERVICES $20.61 CORPORATE SUPPORT $14.59 CAPITAL FINANCING $10.47 RECREATION FACILITIES AND PROGRAMS $9.65 LIBRARY $5.40 COMMUNITY PLANNING $4.29 WINTER MAINTENANCE $3.51 ENGINEERING SERVICES $2.98 TOURISM AND COMMUNICATIONS $1.73 CULTURE $1.65 MUNICIPAL LAW AND PARKING ENFORCEMENT $1.24 ANIMAL SERVICES $1.02 CROSSING GUARDS $0.71 DEBT SERVICING $0.60 ECONOMIC DEVELOPMENT $0.41 COMMUNITY GRANTS $0.18 BUILDING INSPECTION $0.05 * INCLUDES ROADS, PARKS, CEMETERIES, BUILDINGS, STREETLIGHTS & SIDEWALK MAINTENANCE ETC. BMA STUDY -2015 • Study is currently only in draft form so may be subject to change as Municipalities review and comment • Further information can be provided when final Study received PROPERTY TAXES AS A PERCENTAGE OF INCOME Municipality2015 Average %of Household IncomeRelativeRanking Residential Taxes Milton$ 3,2472.7%Low Caledon$ 4,4323.4%Low Clarington$ 3,8333.6%Mid Niagara Falls$ 2,7233.7%Mid Newmarket$ 4,2323.7%Mid Whitby$ 4,6083.8%Mid Pickering$ 4,7224.0%High AjaxNot availableNot availableNot Available Port HopeNot availableNot availableNot Available Oshawa$ 3,8364.6%High PROPERTY TAX COMPARISONS DETACHED BUNGALOW –2015 Municipality2015 Property TaxesRelative Tax Burden Milton$ 2,920Mid Niagara Falls$ 3,145Mid Clarington$ 3,247Mid Caledon$ 3,435High Newmarket$ 3,555High Whitby$ 3,930High Oshawa$ 4,062High Pickering$ 4,584High Average –overall$ 3,121Mid Average –population 50,000-99,999$ 3,222 GTA Average$ 3,714 DETACHED BUNGALOW RELATIVE TAXES CLARINGTON 5 YEAR TRENDS YearRelativeTaxesPopulation Growth GTA AverageStudy Average Average 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 2015$3,247$3,222$3,714$3,121 Cumulative 8%6%8%6% Increase AverageAnnual 1.6%1.2%1.6%1.2% Increase PROPERTY TAX COMPARISONS 2 STOREY HOME –2015 Municipality2015 Property TaxesRelative Tax Burden Milton$3,510Low Caledon$4,102Mid Clarington$4,235Mid NiagaraFalls$4,380Mid Newmarket$4,512Mid Whitby$4,790High Oshawa$4,982High Pickering$5,233High Average –overall$4,318 Average –population 50,000-99,999$4,483 GTA Average$4,516 PROPERTY TAX COMPARISONS SENIOR EXECUTIVE HOME -2015 Municipality2015 Property TaxesRelative Tax Burden Milton$4,423Low Caledon$4,749Low Clarington$5,143Low NiagaraFalls$5,424Low Newmarket$5,748Mid Whitby$6,072High Oshawa$6,140High Pickering$6,640High Average –overall$5,937 Average –population 50,000-99,999$5,735 GTA Average$6,250 SENIOR EXECUTIVE RELATIVE TAXES CLARINGTON 5 YEAR TRENDS YearRelativeTaxesPopulation Group GTA AverageStudy Average Average 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 2015$5,143$5,735$6,250$5,937 Cumulative 7%12%9%7% Increase AverageAnnual 1.4%2.4%1.7%1.4% Increase HISTORICAL TRENDS HISTORICAL TRENDS ASSESSMENT GROWTH HISTORY YearAssessment Growth 20072.12% 20082.80% 20093.00% 20101.92% 20112.20% 20122.63% 20132.20% 2014 (Municipal & Education retained)3.34% 20151.78% 2016-preliminary estimate only1.27% CLARINGTON’S BUDGET INCREASE HISTORY YearLocal Budget Increase 20064.08% 20078.25% 20084.44% 20092.35% 20102.97% 20113.80% 20123.75% 20133.75% 20143.74% 20153.65% 10-year average4.08% Comparison of Total Annual Operating Expenses 66,000,00014.00% 65,359,662 12.55% 12.00% 64,000,000 62,774,742 10.00% 62,000,000 8.00% 60,584,561 60,000,0006.00% 4.36% 58,303,078 4.12% 4.00% 58,054,235 3.62% 58,000,000 2.00% 56,000,000 0.00% -0.43% 54,000,000-2.00% 20112012201320142015 Total Operating Expenses% Increase ASSET MANAGEMENT PLAN • Required by December 31, 2016 as condition of Federal Gas Tax Funds • Significant project affecting all departments • Will impact future capital budgets • Includes the following mandatory components: • Executive Summary • Introduction • State of local infrastructure • Desired levels of service • Asset Management Strategy • Financing Strategy DEBT AND REPAYMENTS Debenture Repayment Schedule As of January 1, 2016 YearSouth CourticeIndoor Soccer/RRCGreen RoadNewcastle CourticeNewcastleTotal Arena LacrosseCCD SpaceGrade SeparationLibraryLibrary (est)Aquatic 20161,073,850.10 162,519.91 105,147.42 528,770.77 103,201.88 99,000.00 1,762,940.36 3,835,430.44 20171,069,666.77 163,532.59 105,047.39 534,406.77 103,787.14 101,000.00 1,761,701.91 3,839,142.57 2018164,093.85 104,942.45 538,772.66 106,787.14 103,000.00 1,759,687.50 2,777,283.60 2019165,174.58 104,831.80 541,802.38 109,787.14 105,000.00 1,757,651.34 2,784,247.24 2020164,755.07 104,715.46 538,416.38 112,787.14 107,000.00 1,604,355.98 2,632,030.03 2021163,863.49 104,593.15 546,623.02 115,000.00 109,000.00 1,054,141.30 2,093,220.96 2022163,542.75 546,559.49 117,000.00 111,000.00 1,006,711.96 1,944,814.20 2023162,800.11 546,276.36 119,000.00 113,000.00 941,076.47 2024+160,675.42 3,239,406.27 847,000.00 4,247,081.69 2,143,516.87 1,470,957.77 629,277.67 7,561,034.10 887,350.44 1,695,000.00 10,707,190.35 25,094,327.20 Principal at Jan 1/ 20162,096,000.00 1,298,000.00 547,654.27 6,047,600.00 671,000.00 990,000.00 9,421,000.00 21,071,254.27 Principal at Jan 1/20171,057,000.00 1,167,000.00 467,583.43 5,695,600.00 602,000.00 910,800.00 8,040,000.00 17,939,983.43 Interest 2.00% to 2.25% 1.35% to 3.35% 5.12%1.35% to 3.8%4.9% to 5.2% 4.5% to 4.75% Rates Microsoft Excel Worksheet RESERVE FUNDS -GENERAL FIVE AREAS OF SPECIFIC FOCUS • Chart to be distributed as handout • Municipal Capital Works Reserve Fund • Rate Stabilization Reserve Fund • Fire Equipment Reserve Fund • Facilities/Parks Maintenance Reserve Fund • Community Services Capital Reserve Fund DEVELOPMENT CHARGES RESERVE FUNDS • Indoor recreation has cash flow issues around supporting the cost of debt and remains restricted for future uses • Library has repaid interim borrowing from prior years of approximately $200,000 and begun to address annual installments of balloon payments for main library in 2012 , 2013, 2014 and 2015. • Repayments impact upon timing of future facilities. DEVELOPMENT CHARGES RESERVE FUNDS • Indoor recreation development charges reserve fund short by $3,900,000 as of the end of September 2015. The projection is that this shortfall will decrease gradually each year (if 525 units are achieved it will break even. We will be monitoring this closely). • Finance Report FND-018-13 indicated the anticipation that the Indoor Recreation 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. • Will be critical factor in timing of any future indoor recreation projects. 2016 CAPITAL BUDGET CLARINGTON’S INCREASED TAX SUPPORT TO CAPITAL Amount Year $5,013,673 2015 Tax Levy Financing $4,646,886 2014 Tax LevyFinancing $3,657,952 2013 Tax Levy Financing $3,555,836 2012 Tax Levy Financing $3,228,626 2011 Tax Levy Financing $4,070,448 2010 Tax Levy Financing $3,710,305 2009 Tax Levy Financing $3,169,471 2008 Tax Levy Financing $2,854,874 2007 Tax Levy Financing $2,825,874 2006 Tax Levy Financing Total Rural Roads Rehabilitation Budget-Operations 1,800,00018.00% 1,700,000 1,500,000 16.73% 1,600,00016.00% 1,400,00014.00% 1,285,000 13.33% 1,210,000 1,160,000 1,200,00012.00% 1,000,00010.00% 9.43% 800,0008.00% 600,0006.00% 6.20% 4.31% 400,0004.00% 200,0002.00% -0.00% 20112012201320142015 Total Rural Roads% Increase History of Engineering Roads and Structures Capital 16,000,000 14,365,512 14,000,000 12,000,000 10,505,500 10,000,000 7,517,600 8,000,000 7,318,245 6,000,000 4,798,866 4,000,000 1,898,820 1,857,000 1,594,646 2,000,000 1,315,000 1,219,840 - 20112012201320142015 Total Engineering Roads and StructuresTax Levy Engineering Roads and Structures EMERGENCY SERVICES FLEET REPLACEMENT Date Of Vehicle DescriptionI.D. #20162017201820192020 Purchase Car 11 -Chief -Impala 492012$45,000 Car 13-Deputy Chief -Impala 462010$45,000 Car 17 -Prevention -HHR 452009$30,000 Car 18 -Prevention -HHR 422009$30,000 Car 19 -Prevention -HHR 482010$30,000 Car 1-10 -Maintenance -Silverado4x4 432009$55,000 Pumper 11 -Pierce 402007$675,000 Pumper 15 -Freightliner 122003$675,000 Pumper 1-22 -Freightliner 092003$675,000 Pumper 1-44 -Freightliner 322005$675,000 Rescue 14 -GMC (replace w/ Heavy Rescue)151990$850,000 Tanker 11 -GMC 171999$300,000 Total$975,000 $850,000 $720,000 $790,000 $750,000 ENGINEERING CAPITAL OPERATIONS CAPITAL BALANCE OF MAJOR 2016 CAPITAL PROJECTS PROPOSED CAPITAL PROJECTS DepartmentTotal CostTax Levy CorporateServices Computer Hardware217,500127,500 Computer Software150,250100,250 Clerks Department Parking Enforcement Vehicle28,0000 ReplacementVehicle28,0000 Emergency Services Bunker Gear andBoots99,01099,010 Pumper675,0000 Tanker300,0000 SCBA bottle replacement/upgrade35,00035,000 PROPOSED CAPITAL PROJECTS DepartmentTotal CostTax Levy CommunityServices VariousRecreational facilities 854,300299,300 replacements and improvements Planning Services Land Acquisition835,000772,000 Clarington Library Board Library Technology100,00080,000 Library Collection141,76556,051 STAFF POSITIONS IDENTIFIED AS NEEDED DepartmentPositionCost FinanceAccounting Clerk II$50,000 Corporate ServicesH & S/HR Rep. $70,000 Fire4 Suppression$360,000 Fire Prevention$90,000 Fire/Life Safety Education$90,000 PlanningP/T Clerk I to F/T Clerk II$20,000 ClerksClerk I**$40,000 1 Co-op student$20,000 OperationsLabourer$50,000 2 P/T Labourers$60,000 Community ServicesP/T Programmer$35,000 TotalAll Departments$885,000 ENERGY UPDATE ENERGY COST CHALLENGES FOR 2016 AND BEYOND • Utility rate increases • Expiration of 10% Ontario Clean Energy Benefit • Rising costs of Global Adjustment • Impact of Cap and Trade Program WHAT IS THE GLOBAL ADJUSTMENT? • Cost based on kWh usage • Fluctuates based on HOEP in comparison to regulated rates for power generation • Reflects the cost of delivering conservation programs WHAT IS THE MONTHLY IMPACT OF THE GLOBAL ADJUSTMENT? • Actual Hydro Invoice • September 25 –October 27, 2015 • Electricity cost –213,340 kWh used @ $0.0269= $ 5,747.00 • Global Adjustment –213,340 kWh used @ $0.054= $13,959.00 WHAT HAVE WE BEEN DOING TO MANAGE ENERGY USAGE? • Energy Committee focus on consumption data • Energy retrofit projects • Awareness of impact of energy use on budgets WHAT WILL WE CONTINUE TO DO? • Continue with energy retrofit projects • Further research in emerging technologies • Improved understanding on peak demand control • Continue to work closely with our energy providers 2016 BUDGET BREAKDOWN Priority A Revenue Increases: Assessment Growth Revenue-607,011 Increase in Investment Income-40,000 Increase in Burial Permit Revenue-9,600 Increase in Sports Field Revenue-32,000 Increase in Entrance Culvert Revenue-6,000 Cemeteries Revenue Increase-4,500 Waste Management Contribution-5,000 Recreation Programs Revenue Increase-42,000 ASC Back To Full Time (Net of Salary, Benefits, Utilities Included in Expenses)-33,200 Increase to Planning Revenues-20,000 Gain on Transfer Re: Part Time Parking Officer-30,767 -830,078 2016 BUDGET BREAKDOWN PriorityA Expense Decreases: Reduction in Newcastle P/T F/F-61,185 Reduction in Transfer Re: ASC Construction Timing-48,850 Reduction in Legal Professional Fees-14,000 Bylaw Contract Savings-5,000 Bylaw Clothing/Staff Development-5,000 Reduction to Unclassified Admin Consulting-20,000 Savings on Banking Contract-17,000 Reduction in Connecting Link Traffic Signals-10,000 Culvert/Ditch Shoulder Maintenance-40,000 Hardtop Maintenance-20,000 LoosetopMaintenance-21,500 Older Adult Realignment-55,000 Minor Adjustments to Various Line Items-11,699 -329,234 2016 BUDGET BREAKDOWN Revenue Losses:Priority APriority B Loss of Offset to DefibMaintenance7,548 Loss Perpetual Care Interest2,000 Loss of Rental Revenue -DRPS Courtice55,535 Loss of Waste Royalties91,300 Loss of Theatre Dance9,700 Loss of CCC Multi Purpose Rental Re: Renovations24,000 Loss of Community Living Lease6,140 Loss of POA Revenue17,000 Reduction in Communications/Tourism Revenue16,800 Reduction in Dog/Cat Licenses20,000 Reduction in Burning Permit Revenue4,000 Reduction in Net Building Division Impact21,076 Facilities Revenue Net Reduction6,500 Reduction In CCC Group Fitness Revenue Due To Age Change7,000 261,02327,576 2016 BUDGET BREAKDOWN EXPENSE INCREASES:PRIORITY APRIORITY B Salary Negotiations, Grid Changes728,872 Balance of New Positions in 2015 Budget (2/3)240,711 New Positions approved during 2015288,067 EHT25,149 OMERS119,748 CPP41,511 EI14,115 Extended Health225,823 WSIB38,161 Co-op Internships20,000 New Staff Allocation150,000 One Call Utility Locates40,000 Heat28,223 Hydro123,494 Water/Sewer29,830 StreetlightingHydro and Maintenance178,66789,333 2016 BUDGET BREAKDOWN Priority APriority B IT Capital108,350 Fire Capital7,395 Engineering Capital369,824 Operations Capital427,900 Community Services Capital3,700 Land Acquisition89,000 Library Capital31,765 Parking Lot Rehab Transfer To ReserveFund155,000 Energy Master Plan Savings on Retrofits to Reserve Fund10,670 Increase in Transfer for Election Reserve16,500 Priority Green5,000 Phone Costs and Copier Leases9,000 Post Employment Benefits50,000 HR Benefit Consulting12,500 HRService Charges7,000 2016 BUDGET BREAKDOWN PRIORITY APRIORITY B IT Software Maintenance Contracts35,000 Clerk's Admin Professional Fees3,000 Clerk's Maintance/Fuel On Additional Vehicle2,500 Insurance30,000 Fire Admin Miscellaneous Capital5,000 Fire Suppression Repair/Maintenance8,500 Fire Dispatch Contract35,000 Tax Levy Portion of Operations Needs Assessment Study10,000 Playing Field Lighting20,000 Parks Snow Removal15,000 Parks Grass Cutting10,000 Parks Irrigation5,000 Baseball Field Resurfacing20,000 Building Services Asbestos Management6,500 Annual Defibrillator Training-Hall Boards10,400 2016 BUDGET BREAKDOWN PRIORITY APRIORITY B Sidewalk Maintenance19,50019,500 Emerald Ash Borer15,000 Block Tree Removal15,000 Winter Control15,00015,000 Facilities Admin Small Capital5,000 NRDC-Motorized Blinds And Gym Line Painting18,500 NRDC -Repairs And Maintenance4,500 SCA -Repairs And Maintenance28,000 RRC -Repairs And Maintenance31,000 Crossing Guards Equipment Replacement4,400 Community Improvement Plan (Net)5,000 Tax Levy Share of Planning Growth Studies15,000 2,502,6711,608,937 2016 PRELIMINARY DRAFT SUMMARY- PRIORITY A AND B COMBINED DESCRIPTIONPRIORITY APRIORITY B -830,078 REVENUE INCREASES -329,234 EXPENSE DECREASES 261,023 REVENUE LOSSES27,576 2,502,671 EXPENSE INCREASES1,608,937 GRAND TOTAL1,604,3821,636,5133,240,895 % IMPACT3.35%3.42%6.77% 2016 BUDGET – EXTERNAL AGENCIES DRAFT REQUESTS AGENCY2015 2016$ INCREASE% INCREASE APPROVEDREQUEST Clarington Library2,892,4782,972,56480,0862.77% Visual Arts Centre202,661207,7275,0662.5% BowmanvilleOlder Adult 255,000303,15048,15018.9% Association** Community Care Durham29,53248,00018,46862.5% Clarington Museums277,101290,85613,7555.0% Firehouse Youth57,20057,20000% Newcastle CommunityHall18,00022,0004,00022.2% OronoCemetery10,00010,00000% Overall Total$3,741,972$3,911,497$169,525 Municipal Tax Levy Impact0.35% 2016 ASSESSMENT IMPLICATIONS • EFW Assessment • Major Commercial Status • Aggregate Issue-TAPMO NEXT STEPS • Budget Binder and report to be circulated approximately March 4 th, 2016 • Special Budget GG Friday March 18 th, 2016 • Council Ratification Monday March 21 st, 2016 NEXT STEPS • Budget Binder and report to be circulated approximately March 4th, 2016 • Special Budget GG Friday March 18th, 2016 • Council Ratification Monday March 21 st, 2016 O"r Memorial Park, Bowmanville  Retaining Walls Replacement  Depot 42 Expansion  Roof Replacement Program  Physical Plant Replacement  Allows proactive scheduling and monitoring  of all your fields or facilities Reduces Energy costs by 50%  Track hours used  Easily added to existing lighting systems  Controls multiple fields at multiple locations  Reduces operating and labour costs  Clarington Road Network:  880 km of roads  448 km of rural roads  Many of our rural road network have not received any type of preservation  or rehabilitation treatment. Factors Affecting our Rural Roads:  Aging Road System  Changing Weather Patterns  Growth and Development  Larger and heavier farm equipment  Traffic Speed  Considerations:  Inspections –spring and fall  Review of pavement condition index –Engineering Services  Review of maintenance activity  Review and compare Average Annual Daily Traffic  Nature and type of vehicular traffic  Local topography of each road section  Winter hazards associated with individual road sections  Rickard Neighbourhood Park –Grady Drive Newcastle –16,000 m²  Newcastle Leash Free Park -10,000 m²  Springfield Parkette–extension to Glen Abbey Park -7,000 m²  NorthglenNeighbourhood Park -18,000 m²  ScugogStreet Neighbourhood Park –Bonsand Scugog-15,400 m²  Bathgate Commons -2,500 m²  Darlington Green Parkette–ButtonshawStreet –5,800 m²  Clarington Arms Parkette-8,000 m²  Port Darlington East Beach -13,600 m²  100% Increase of Park bookings since 2010  8,890 hours to 16,430 hours of rentals  Longworth Splash Pad  BondheadPark Improvement 2016  Growth Impact w Rickard Neighbourhood Park - Grady Drive Newcastle - 16,000 m2 w Newcastle Leash Free Park - 10,000 m2 w Springfield Parkette - extension to Glen Abbey Park - 7,000 m2 w Northglen Neighbourhood Park - 18,000 m2 w Scugog Street Neighbourhood Park - Bons and Scugog - 15,400 m2 w Bathgate Commons - 2,500 m2 w Darlington Green Parkette - Buttonshaw Street - 5,800 m2 w Clarington Arms Parkette - 8,000 m2 w Port Darlington East Beach - 13,600 m2 w 100% Increase of Park bookings since 2010 w 8,890 hours to 16,430 hours of rentals w Longworth Splash Pad w Bondhead Park Improvement 2016 South Courtice - Artificial Turf Field Scugog Neighbourhood Park East Beach - Port Darlington Debris ead Beach ON] 07D.ToMa eIi - • • tV;�m AC Debris - Waterfront