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Alitl'Mt& DlPARTMENT
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Meeting: SPEaAL COUNCIL MEETiNG ~ .
Date:
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FRiDAY, APR1L12. 2002 . . /'
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Ili&'respeQCfuIy recommended to Councll.~:
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. 1. THATReportFH0-008-02be~ .
. 2. THAT CQundl.approve the 2002~6Idget ouUinedln the draft Current
Bu. doc&,tment at a target~, '. % inereas$ln1overalllevy over
the 200t levy.(elUlli.lsive of tax pGlicy)_~ in F~ and
Attachment #t; . ,
3. THAT the ~ln SectiOn aof_Q.....~ CUrrent BudgetQocument outtining
Reserve and'~e8erve Fund cOH'IIi4Iti~!J,.. approved;
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4. THAT th8 Region of Durham be
ClearHJPCOifS. to be recovered
,ReP.Qrt FN~. Clarington
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,5. 1'HAT the external agencies ~..1hi& reportand identJted in Attachment
#1, be advised of Council!. c.IecilUI:Jn flljllJ'IInQtheir grant requ1fW;
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6. THAT 2002 $lifting changes be apptt:l',ij'. C*'A1I8chn:lent ~;and
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FNp-008-02
:_ CURRSNT BUOGET
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Page 2
7. THAT ~;.appropriate By-Laws to ieV;}' _2002 tax requiremetlts for Municipal, .
Regionel andEuucatiorl purposed b$~ to Council for raPPFOval, once
fmal tax policy infon'nation is available.
,
Stlbmitted by:
Narn;y r .y!o ,a.B.A., C.A.
Director of Finance
NMT/hjl
R~we<tbY:~.; ~b
ranklinWu
Chief Adrnlnistrative Officer
...A~.
7
FND-OQB..o2
'. CURRENT BUDGET
IItckground.aod Comments:
1.0 Overall 2002 Tax Levy
1.1 The 2002 Capital and Current ~::lIlttacbed to this R~ reflect ataxleyy
impact Of ;3.55%. As identified in Attacllmerlt#1. interest "ve$1ue ftomPort
GranbyReserve Fund and Provinelat~ revenue ~ factored in so as to
mitigate the tax levy impact. No~signiflcant effo~have been
expended to reduce the expenditul1t~itls evidencethatttje 3.55%faUS short
ofthe Wget guideline of 2%. In.aneffort.tofurther reduce the! tax impact,
municipahtaff have further red"*.l:luQgetary ElXpendltWeby an additional
$127,160. thus reducing the impactfrOrtr3.55% to 2.84%. Su~mary of the
further reduction is as follows (detei!s.-.tontained in AttaChl'\'l8nt #2):
Page 3
COmmIJnity ServiceS Departqlent
Emergency ServiceS Department
Clerks Department
Planning Services Department
Fina~ Department
Cprporate Services Department
Engineering Services Department
Operations Department
TOTAL
$ .4,010.00
13,500.00
2,100.00
:5,000.00
:3,300.00
416,200.00
~,750.00
4!~.300.00
$124,160.00
It should be notec:tthet the 2.84% dQest'J(;)ttake into account -"y PQ88ible saving
that may berealixed from the Iibrary~.
1.2 Au FeSlJlt,staff IsrecommendingtQ~an inCl"8aSf:) in the overallleyy of
2.86% over the 2001 levy of $17.9m.,This value incl~residential growth
of approXimately 3.6%. The finalfIJX,..lNiII Oe c1etermined~ the PrQVinc:ia1
and Regional tax policy chanQEl$8rekrlown' The entire vaIue:fortheOPG intake
assessments have not been includlilQ.jl'l-' growth ca~ and will be set
aside pending the outcome Of the AR8~ and legal Pr<<f.!.dings. The
current ratio of commercialllndustlilill tQ",.dential growth 1511% to 89%.
1.3 2oo2wesnota reaaaessment year. ~valuations are ~ed 0118 June
1999 valuation. date consistent -2001' The year 2003 wiD .I;)e a reassessment
year to be based on June 2001. .
2.0 TaxRaleStabiIIPtIon
2.1 Clarington Is feeling the effects Of a hi$Jb1Jf'OWth municipality in that, there is a
, great demand for new and improved seMc;esin orcIer to a<:e:ommocJate the
. increased population. This year. __.,~ projects are lJej"g proposed that
have required an increased draw on ~e and Reserve FuM balances. It is
t;, J,~
FNQ-OOS-02
,,__CURRENT SUOGET
anticipated.thattheseiargeproj4lcts:~",,1gtogether is 8{\anomalY irlthe
current year. However, there are. ....."".. Where sign~ attentiQfl will. be
required in the future. For example, _,~ for both.optrations and fire
departments are at a criticallevelano"wiltresult in a transfer ~ the tax base In
future years to hind vehicle re~~nts. This ~be detailed
hlrther in a $8Ctionbelow and inA~#2. .
P.4
2.2 Historic8lly, Clarirlgton has drawn onu.."Rate StabilizationR~annuallY
appro~y$800,ooo to $1.1 ~;Thls was In~sed tQ $1.3 mIlliOn in
2001 and ispropolMldtocontinl.le_..,..for 2002. This ineludes
rnaintainlngsome contributiOns _"'.ReSIf'YeS and ~. Funds so as not
to deplete the .hlnds. This is esP'JClially~,due to the larger than normal draw
on Reservas and Reserve Fundsfor~. The Rate S~Reserve has
sufficient fl.tnde toprovkfe ap~,three to four ye&tlSOfiistabllity to the tax
base. After that. the impact will b6hliili,*,"trredentlrelyto the tfX base.
3;0 Tax Policy ~
3.1 Tax Policy.Qhangeshave been ~et the Reglonallevelithat wll.lhavean
Impact on theflnaUax rates. It is ~ ~the finallnfotrnation. will be.
avail$ble bylttctend Of April in ooMr to....fineHax rates. A ~Iar impact to
Ctarlngton r__ to the education~portionOf paymenJ-in-lieuproperties,
such as Ont&rio Power Generetlon. A$;Il'.....of the propos.-. to redtlce the
Large Industrial Tax rete, as well astbe,~Hy rnandatediAKiuctionin the
industriet educetionrate. CtaringtonWilli~ a loss in ~nue of
approximately $50,000 in 2002 andwll~to aeereduotions in this
revenue over thenexUive years.
4.0 Priority~
4,1 Attachment#1 summarizes the maJor~on the 2002 ~. Budget.
The sulJllTlllry~ the effecton~$8l"Vices, new~, capital tax
levy impact and external agencie$.
4.2 The impact of the transit opera~is""hGJIightecl.on~' #1. It is
advisable that for 2003, the tax room at-upper tier.for transit purposes .be
transferred to the lower tier. Thia~.tlOm8 security and control over the
funds~. If the funding was~, there wouIdlile a significal'lt
ImpactupoothEitaxpayers OfCiarlr)gtonlnfuture years.
4.3 The Comm\.toity ReInvestment Fvndlnl..anIiGipeted to be th. same as the prior
year at $116.000. This has beenused.tQoff8et the tax 1evyin1Pact to laxpayer$.
4.4 The IT~ Community Counci m."""-lId$40,ooo ~ tijs year to support
their efforts. Due to the timing Oftha ~nt Of theN site location,
$25.000 has been Included for thel~~ CouncIl With the balance
J'~,
J
Ff'I{)..()Q8-02
'....CUftRENT...UDGET
redireCted foI' 2002 tow... CQ8t8A1i!~"~.;to.finailobbytngeffortto lOcate the
facility In clarlngton involvif\g __:1l~~1f.1 'I tf;evelingto ~.
Page 5
5.0 Enhanced ServIce UtveIs
Significantl8l'Vlce level ~.....,.~ into the levy
impaet This inCIudesi~Clf.~fire di~, a newmapr
rElCl'e$tion faelllty and a notable incrllll!Ujnta)t$UppOl't for_ned land
aCQl.lisliQnsin the short term. The,_~and~~idiontaX levy
inlf*l~ a 2.67% ~in_w.lth a further 1% ifj1pact in 2003.
6.0 S-....
New staff pn:lpOaed for 2002 is amolt'.JeQU'ltpl'imarily~ of the
following new po$Itions: .
6.1 Planner
This new position is required to ~...t.he ~ wortd9ad.in delltpt$d
SUbdivision approval authority. ~*,~l1al.~. a$~.todly fuel
storagtl, ITERand Port Granby Iowlll...,__ctive ~ sit& .and
propertyac;qUisition and related ~
De8pite~~growth ~iJf:tJ\e Jaet deeade, the Qepartm8l'lt,.s
able to handle the workload withhQ ...,_,..staff overthls period. ~ cost of
this new position will be ~y ofhIet~funding from the Federal
Govemment relating to the Port Granby..project.
6.2 Fin..... eo.ordInator
This new position is required to ""Director of Finanee to allocate
~intheareas Of inveatn~A"riIk~mentand~ In
addition. this Financiaf ~:..ICt.requiredto..... analysis Of
complex. fmaneial matters suehas_ ~,deveJopmentdlerges polley, fire
mastef' plarl and WOLIId assist in euec8"iQn_nln9 in the ~l
In order to notsignific:anUy impactthe"'~. half the c:Q8t of this position
would be def4med to 2003.
6;3 Qtherstaffing ehanges incIude.~_current ~:positions Of the
Buyer and the Marketing Asslstantln~~ S~Qepa~nt to full
timeunionemployees. The.. aontract~heve beeniniiplac:e for one and
t\No~respectiveIy. The WOrldoade"'~ted.~ the$e positions
s/lOUld.be made permanenl .'
6.4 PleaseseeAttaehment #3 for detailsClf:'-ptQpOsed ehanges..
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FNQ,.008.02
:1102 CURRENT BUDGET
Page 6
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7.0 Orono ...........tmprovemem.....
Finance has not received directionfn:lmlbe Ofono BlA regarding their levy
request. Tn..saffie value as 2001"~incorporated buHilny changes can
be made priof'to the rate By-Law beinQ~ by Coun<:ill!$t the end Of April.
8.0 Reserves end Reeerve Fund ~
Consi$tent With .pastpractlce, liI88 m.._rofhousekeeping, !lqme Reserve Funds
arerecomm~ for closing to ~.~ 8S the projects ~ complete or the
funds are more ,ppropriateIy ~.,. . Also additlonal~rve Funds are
established ~h the budget .~,,". A1lprpposed changes' are inck.Kled on
the.Reserve Fund $Ummary on~~~,theOraft Current~.
9.0 Ex..... ......
The external agencies, inciuding~,Ubnlry, Visual Mla Centre, !'tte., are
listed on Attachment #1 for Councll:tQ.1X)It.ider their ~st on an individual
basis.
10.0 Looking Ahead
There are certain known impac:ts.fOr 2003 Budget vealS such .liIs staffing and
operationaleX$)8nS8$ for the new. "Utl~18I facility in South iGourtice. new
library,a~ municipal offk:esP8."YoI8ge setIIement, retum of OMERS
contribution, pkJs several commilt$ddef..rral expenditUressudh as fire
communication. . At this time, it a".,.. 2003 vriN be a very ~lIenging yesr from
a buclget$ry perspective unlessnew~ofrevenue arefQund.
11.0 Conclu$lon
Other municipelities in the Region.of~. liI8 well as 1he Region itself. are
antiCipating an.iqcrease ranging fJom4;~to~)'8%as_.. being faced with
similar issues. This situation is ~throughout the Province. Surveys are
currentlybeingl.lndertaken Of GTA~itiesand a copy.~ be circulated to
Council. upon.rec;elpt.
Attachments:
Attaclm1ent#1 -Majorlmpacts
Attachment #2 - 0$taibJ of Further RecluclIona.
Attachment #3 - SWfing Changes
~OFTHE.MUNlCIP-.rrvOF CLARlNGT.ON
40TEMPefWICE sTMa, BOWMANVIlLE. ~L fC 3A6 T (9O$~$19F(905)6.23-06(l8
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ATTACHMENT #1
3-Apr.Q2 TAX LEVY IMPACT
BREAKOOWN BY MAJOR ITEMS FURTHER REDUCTIONS
2002
EXPENDITURES-ExiSting Services
1 CUPE Negotiations and Salary Changes
2 Benefitlncreas9(EHT,OMERS,CPP,el,LTD,WSIBj
31ncreaseinpartlimeflrefighlers
4 Namal Budgetary Increases
5 Impact of Previously committed positions
6 Proposed New Positions
7 Increase in fleet overhead repairs and maim.
S Bowmanville Heritage Study
9 Corporate Printing
10 Fleet Reserve Fund Contribution
11 MuniCipal Capital WorXs RlF Contribution
12 Building Services Transfer to RIF
13 Debt Retirement Transfer to R1F
14 Fire Reet RtF
15 Engineerinn Fleet RIF
SUBTOTAL 1.578,884
EXPEND1TURE$-NEW ISSUES
16 Centralized Fire Dis""lch 100,000
SUBTOTAL 100,000
CAPiTAL IMPACT
171ncreasedTaxsu to Capital -, 98,723 (40,000)
EXTERNAL AGENCIES
18 CommunilyCara (7,500 to 10,000) 2%guideliJ'lll 150
19 Firehouse Youth (30,000.. no change)
20 Beech Centre (10,000 to 8,000) (2.000)
21 Newcastle TtM'fl HaW (20,000 1011,500) (8.500)
22 Visual Arts Centre (50,000 10 52,000) 2%guldehne 1,000
23 LIbrary (1,359,550to 1,479,229) -, 119,679
24 Bcmmanvils Mnu:;eum (73,000 to 75,300) 2%guideine 1,460
25 Clarke MUS800l 76484 1075,000) (1,484
SUBTOTAL 110,305
TRANSIT INITIATIVES
26 Imroduction of Transit loop to Bowmanville iH' "
27 Transit Capital ReQuirements ~,f)"', iC"
2a Handi Transil (100,000 10105,000) .-, ~ -,,' I
29 Handi Transil Van (replacement) '"
30 Transfer to transit reserve fund
31 Transitfunds~'~~fOurham , 1 il~ ').'1,,:(.',
SUBTOTAL
REVENUES
32 Tax room from transit funds supporting Handi-Transit (100.000)
33 ReWction in Zoning Clearance Fees and Tax Cert. 50.000
34 Loss of Garbage admin Fee 77,950
35 Reductioo in Investment Income 75,000
36 Recluctloo in Animal Ucenses 20,000
37 Reduction in Tourist Info 50uveniers 1a,ooo
38 Assessment Growth (625,000)
39 ProvWlciaI Offences Acl Revenue (165,000)
40 Reduction in Contingency (100,000)
41 ReductiOn in con1rtbu1iOn to iodIecon dev rlf (40,000)
42 Port GrarlbyInleresl (350,000)
43 lncrsase in Supplementary tax revenue (1(25,000)
44 Reallocation of Can tax I for enaineerina deaion 165,000
SUBTOTAL 1,249,050
TOTAL 124,160
ncreaSe-NoIe3 540,000 540,000
REMAINING SHORTFALL 98,862 {25,Z9a
Tax % mpaCl of shortfall
Total Tax increase
0.55%
-0.14%
Nolel IncludesS75,ooororphese-;nofseI'Yk:eIeWI$rl;lr'-main~b(ary
NcIte2 NtrtIncllJded. Fur1ll5re1allogtoOPGappeal
NoIeJ l%lnClll8ll8OY$r~Rl~nt$pr>rnarUynew$l:Or\liC8lorliRldi$palch
llIIdil\Cl'88ll8deonl<lbuIiOll$lorlandacqo5ilionlllldtoltlll8MlfulldlitOilddl8$$l\fu<9funding5horllall$
Nole4 Inc:orporilie51l1)C levy/8qUn.ment lorl......isIlingll and equipment lor
nswmainllbrary
ATTACHMENT #2
Details of Reductions to bring down the tax levy impact from 3.55 to 2.86 (exclusive of Library impact)
$'
De artment Account No. Reduction
7202-103 200.00
7202-203 1,300.00
Engineering Services 7202-205 250.00
7202-232 2,000.00
7202-248 1,000.00
7203-101 1,500.00
7203-103 300.00
Operations 7203-127 1,000.00
7203-201 2,000.00
7203-232 500.00
C ita! 7203-261 40,000.00
7102-01-129 1,000.00
7102-08-070 500.00
Emergency/Fire 7102-011-070 500.00
7102-12-233 2,500.00
7102-2/3/4/5-070 5,000.00
Ca ita! 4,000.00
7004-1-203 700.00
7004-1-233 5,000.00
7004-1-247 5,000.00
Corporate Services 7004-2-101 5,000.00
7008-203 1,000.00
7009-405 25,000.00
7710-233 1,500.00
7710-236 3,000.00
Planning
7700-101
7702-205
7702-203
7702-232
7702-505
2,000.00
500.00
500.00
1,000.00
1,000.00
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