2019 Budget Presentation April 17, 2019 This presentation was - - PowerPoint PPT Presentation

2019 Budget Presentation April 17, 2019

This presentation was developed by staff for the Council and members of the public to provide financial information and strategies as it relates to the 2019 Budget

• deliberations. The report covers the following topics for review and discussion

purposes.

• 1. Recapping 2018 Taxation Year.
• 2. 2018 Capital Projects Completed.
• 3. Comparison of 2018 Budget to Proposed 2019 Budget in graphs.
• 4. 2019 Proposed Capital Projects.
• 5. 2019 Operating Budget potential impacts and challenges.
• 6. Questions?

Recapping 2018 Taxation Year

At the May 1, 2018, Council meeting, By-law No. 26-18 was enacted to adopt the 2018 Budget and associated tax rates. The 2018 Budget was a balanced budget, with a required tax levy of $7,752,756.00

SUMMARY: OPERATING BUDGET

7,371,476.00 $

CAPITAL BUDGET

4,308,708.00 $

TOTAL BUDGET

11,680,184.00 $

LESS REVENUE SOURCES OPERATING REVENUES

($2,110,520.00)

RESERVES

($1,159,388.00)

CAPITAL REVENUES -OTHER SOURCES

($599,000.00)

CAPITAL GRANTS

($58,520.00)

EQUATES TO LOCAL TAXATION LEVY

7,752,756.00 $

Zorra’s 2018 Tax Levy and Assessment

In 2018 the Township tax levy requirement was $7,752,756.00 and apportioned as follows:

• Operating expenditures $5,260,956.00
• Capital expenditures $2,491,800.00

Based on the Property Assessment Roll; the following summarizes how the tax classes funded the levy requirement for Township purposes:

2018 Capital Projects

In 2018, approximately $4,500,000.00 dollars was spent on capital infrastructure.

Skate Park and Spray Pad in Thamesford

2018 Capital Projects Continue

Electric Charge Station Council Chambers Renovations

2018 Capital Infrastructure Projects Continue

Road construction projects included Road 60, Road 64 and joint project with the Town of Ingersoll for a section of North Town line.

Proposed 2019 Taxation Year

The draft 2019 operating and capital budgets were presented to Council and deliberated between January and March, 2019. As part of the process Council had instructed the Director of Finance to host a public presentation to seek input from interested public. This preliminary budget requires a Township levy requirement of $8,257,785.50 ($505,029.50 increase or 6.52%).

2018 BUDGET 2019 BUDGET VARIANCE

OPERATING BUDGET

7,371,476.00 $ 7,739,813.00 $ (368,337.00) $

CAPITAL BUDGET

4,291,008.00 $ 5,692,947.00 $ (1,401,939.00) $ *

TOTAL BUDGET

11,662,484.00 $ 13,432,760.00 $

LESS REVENUE SOURCES OPERATING REVENUES

(2,110,520.00) $ (2,004,127.50) $ (106,392.50) $

RESERVES

(1,141,688.00) $ (1,228,536.00) $ 86,848.00 $

CAPITAL REVENUES -OTHER SOURCES

(599,000.00) $ (1,268,620.00) $ 669,620.00 $

CAPITAL GRANTS

(58,520.00) $ (673,691.00) $ 615,171.00 $ *

EQUATES TO LOCAL TAXATION LEVY

7,752,756.00 $ 8,257,785.50 $ (505,029.50) $

* Includes the One-Time MMAH Grant $581,087.00 transfer to Capital Infrastructure Reserve

Proposed 2019 Taxation Year

The following several slides represents the following information in graph form for comparison purposes: Graph 1: Operating expenditures categorized by departments; capital expenditures categorized between Transfer to Reserves/Capital expenditures and Long Term Debenture Repayments. Graph 2: Revenue not included taxation categorized by its source(s). Graph 3: Taxation levy categorized by department – how it is spent.

Graph 1 – Operating and Capital Expenditures

General $977,585 8.38% Policing $1,163,298 9.97% Fire $639,625 5.48% Building & By‐ Law $301,485 2.59% Transportation $2,898,350 24.85% Parks & Recreation $1,199,455 10.28% Cemeteris & Health Services $104,398 0.90% Planning; Economic Dev & Other $87,280 0.75% Capital & Transfer to Reserves $3,349,750 28.72% Long Term Debenture Payments $941,258 8.07%

2018 Budget $11,662,484.00

General $1,018,047 7.92% Policing $1,170,562 9.11% Fire $695,545 5.41% Building & By‐ Law $307,810 2.40% Transportation $3,073,195 23.91% Parks & Recreation $1,262,888 9.83% Cemeteris & Health Services $97,501 0.76% Planning; Economic Dev & Other $114,265 0.89% Capital & Transfer to Reserves $4,182,500 32.54% Long Term Debenture Payments $929,360 7.23%

2019 Budget $12,851,673.00

Graph 2 - Revenues Sources not including Taxation

2018 Budget $3,909,728.00

Provincial Grants ‐ Operating $915,000 23.40% General Revenues; User fees $401,250 10.26% Building Permits $251,000 6.42% Parks & Recreation Fees $474,750 12.14%

Capital Revenue from Other Sources $86,000 …

Aggregate Royalites $285,000 7.29% provincial Grants ‐ Capital $58,520 1.50% Federal Gas Tax $245,000 6.27% Transfer from Reserves $1,141,688 29.20%

2019 Budget $4,593,887.50

Provincial Grants ‐ Operating $810,250 17.64% General Revenues; User fees $417,053 9.08% Building Permits $261,265 5.69% Parks & Recreation Fees $515,560 11.22%

Capital Revenue from Other Sources $86,000 1.92%

Aggregate Royalites $450,000 9.80% provincial Grants ‐ Capital $92,604 2.02% Federal Gas Tax $527,905 11.49% Transfer from Reserves $1,228,536 26.74%

Graph 3 -How the Township Levy is spent.

2018 Budget $7,752,756.00 2019 Budget $8,257,785.50

General $542,042 6.99% Policing $990,949 12.78% Fire $539,665 6.96% Building & By‐law $24,776 0.32%

Transportation $2,446,200 31.55%

Cemeteries $30,945 … Parks & Recreation $603,707 7.79% Health Servcies $38,759 0.50% Planning & Dev $43,913 0.57% Capital and Transfer to Reserves $1,550,542 20.00% Long Term Debenture Payments $941,258 12.14% General $632,747 7.66% Policing $1,030,789 12.48% Fire $607,120 7.35% Building & By‐law $22,143 0.27%

Transportation $2,446,200 31.55%

Cemeteries $25,538 … Parks & Recreation $658,013 7.97% Health Servcies $27,386 0.33% Planning & Dev $43,913 0.57% Capital and Transfer to Reserves $1,592,740 19.29% Long Term Debenture Payments $929,360 11.25%

2019 Capital Budget – What are we planning?

Capital Expenditures 2019 Budget Comments Debenture Payments 929,360.00 $ Reflects payment schedule Transfer to Reserves 827,000.00 $ Increase contributions SWIFT ‐ New Initiative 170,000.00 $ Program ‐ bringing high speed internet rural service General ‐ Building 30,000.00 $ Computers/windows/painting Fire ‐ Building 171,000.00 $ Cistern and Overhead doors Embro Station Fire ‐ Equipment 100,000.00 $ same levels as 2018 Fire ‐ Vehicle 470,000.00 $ Tanker ‐ Embro Station Recreation ‐ Buildings 121,900.00 $ Rink Boards Thamesford Arena, Washroom upgrades Embro Arena; Harrington Hall ramp Recreation ‐Machinery 180,000.00 $ Ice Resurfacer; Brine Header, Refrigeration Controls Recreation ‐ Infrastructure 159,000.00 $ Playground; trails; paint pool Roads ‐ Vehicles 327,000.00 $ Tandem and pickup truck Roads ‐ Construction 1,385,100.00 $ Road 92 25th line to 27th line; Road 78, Road 88 and 33rd Line Roads ‐ Bridges/Culverts 241,500.00 $ Raod 74, Cobble Hills Road, 13th Line Total Capital Budget Expenditures 5,111,860.00 $

2019 Capital Budget – how are we financing it?

Capital Financing 2019 Budget Comments OCIF Annual Grant ‐ Rural Infrastructure 92,604.00 $ Road Construction Other Revenues ‐ Federal Gas Tax 527,905.00 $ Road Construction Other Revenues ‐ MNR Royalties 450,000.00 $ Road Construction Other Revenues ‐ ERTH Interest 59,000.00 $ Debt Repayment Other Revenues ‐ Development Charges 201,915.00 $ as per Development Charges Study Contributions from Reserves ‐ Recreation 350,500.00 $ Recreation Capital Projects Contributions from Reserves ‐ Parkland 58,000.00 $ Playground and Trails Contribution from Reserves ‐ Roads Fleet 327,000.00 $ Fund Tandem and Pickup Contribution from Reserves ‐ Fire Vehicles 353,000.00 $ Fund Tanker Embro Enabling Accessibility Grant 22,800.00 $ Harrington Hall Ramp Other ‐ Revenues ‐ Community 4,000.00 $ Volleyball Lights ‐ Community Subtotal of Other Revenues Sources 2,446,724.00 $ 2019 Capital Tax Levy ‐ Proposed 2,522,100.00 $ Resulting in SHORTFALL of capital levy 143,036.00 $ Total Capital Financing 5,111,860.00 $ Therefore resultingin Transfer from Insfrastructure Reserve of $143,036.00; Reserve balance as at December 31, 2018 was $814,190.00.

2019 Operating Budget

The 2019 Draft Operating Budget as presented, requires an operating levy of $5,735,685.50, $474,729.50.00 more than the 2019 levy requirement. For 2019, the Province has released the 2019 Ontario Municipal Partnership Fund (OMPF) allocation notice, and the Township will see experience a decrease of $137,250.00; which makes up 29% of the increase in tax levy requirement for 2019.

Year 2018 2019 Dollar change year to year Rural Community Grant 714,600.00 $ 718,900.00 $ (4,300.00) $ Northern or Rural Fiscal Circumstances Grant 40,400.00 $ 37,200.00 $ 3,200.00 $ Transititonal Assistance 154,000.00 $ 16,600.00 $ 137,400.00 $ Court Security/Prisoner Transporation Grant 6,000.00 $ 6,000.00 $ ‐ $ 915,000.00 $ 778,700.00 $ (137,250.00) $

2019 Operating Budget Cont’d

The 2019 operating budget also has the following identifiable areas and proposed expenditures that have an impact on the financial needs for 2019.

• Wages/Benefits (COL full-time/part-time, Elimination of 1/3 Council allowance; co-
• p student 8 months; change in recreation structure) $150,000.00
• Fire Services wages (increase in emergency calls; shared training officer)

$39,800.00

• Roads department
• Fuel costs $35,000.00
• Bi-annual Bridge Inspection report $25,000.00
• Gravelling contract $75,000.00
• Road Patrol software $10,000.00

2019 Tax Levy Requirement

In 2018 the Township tax levy requirement was $7,752,756.00 and apportioned as follows:

• Operating expenditures $5,260,956.00
• Capital expenditures $2,491,800.00

In 2019 draft budget; the Township tax levy requirement is $8,257,785.50; $505,029.50 or 6.52% increase over 2018 levy and apportioned as follows:

• Operating expenditures $5,735,685.50
• Capital expenditures $2,522,100.00

Final impact on tax rates will calculated when Oxford County council adopts the tax ratios at their meeting on April 10, 2019 and the Province of Ontario establishes the 2019 Education tax rates.

QUESTIONS