2020 Budget & Long-term Plan Overview December 18, 2019 - - PowerPoint PPT Presentation

2020 Budget & Long-term Plan Overview

December 18, 2019

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

2

Presentation Outline

• Long-term Financial Plan Framework
• 2020 Draft Budget & Long-term Plan Overview
• Departmental Overview & Issue Papers
• Transportation, Waste & Facilities
• Community & Social Services
• Golden Plough Lodge
• Paramedics
• Corporate Management, Communications & External

Transfers

• Finance
• Economic Development, Planning & Tourism
• Corporate Services
• Information Technology
• Summary
• Questions

Long Term Financial Planning Framework

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

4

The Four Strategic Priorities

LTFPF Overview

• Long Term Financial Planning Framework (LTFPF)

ensures current budget year is not considered in isolation

• Framework of principles that guide financial decision

making

• Assesses financial implications of current and proposed

strategic directions

• Ensures alignment of short-term decisions with long-

term strategies

• Ten year detailed financial plan for Capital and

Operating

• Current year budget and nine year forecast
• Living document annually updated
• Allows for possibility of Council approved multi-year

budgets

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

5

6

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

LTFPF Cycle

June/ July July/ August September October November December Ongoing

• Council approval of

target levy increase and dedicated infrastructure target levy

• Examine

all revenues/expenditures for saving

• pportunities

and efficiencies

• Financial

framework survey for stakeholder input

• Identify

Issue Papers and major i mpacts

• Develop

departmental Draft Budgets

• Review

priorities and major budget impacts at Dept. meetings

• Submit

detailed departmental Draft Budgets and Long-term Plans to Finance for review & preliminary consolidation

• Review

revised detailed department Draft Budgets & Business Plans at Dept. meetings

• Develop

Draft Long-term Financial Plans by department and consolidated financial model

• Finalize

Business Plans and Draft Budgets

• Consolidate

Draft County Budget and Long-term Financial Plan

• Post

budget documents

• n

website for public review

• Draft

Budget, Long-term Financial Plan and Issue Paper presentation

• Public

comment/consultation period prior to budget approval January / February

• Financial

reporting

• Review

for efficiencies, savings and funding

• pportunities

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

7

LTFPF Transparency

• Master Plans derived with public and stakeholder

consultation embedded within financial model

• Stakeholder survey
• Draft budget and long-term plan posted on website

for public review

• Departmental business plans and Budget Issue

Papers posted on website

• Ongoing Quarterly Financial Results presented to

Council reporting actual performance vs. budget

• Finance staff available throughout the year
• Formal Annual Reports highlighting financial

performance

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

8

LTFPF Transparency

• Stakeholder Engagement
• Survey July 25th – August 14th
• Results reported to Council August 28th
• 374 responses
• 71% average completion rate
• Questions comprised of responses based on pre-set
• ptions and commentary

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

9

LTFPF Transparency

• Reporting

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

10

LTFPF Inputs

• Stakeholder survey results
• Strategic Plan
• Master Plans
• Economic indices
• Council recommend target base levy increase
• Provincial legislation changes / funding models on

mandatory programs

• Asset Management
• Service Levels (taxpayer/resident/client needs)

2020 Draft

Overview

Budget & Long-term Plan

: December 18, 2019

11

LTFPF Inputs – Long-term Plans

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

12

LTFPF Target Levy Rate

• Consistent modest levy increases over time
• Limits volatility, strategic
• Council approved 3.0% target levy increase for

2020 inclusive of Dedicated Infrastructure Levy (DIL)

• Council approved 2.8% base levy increase for

2021-2029 Long-term plan

• Council approved target annual DIL
• 2020 calculated based on 3.0% of 2019 Capital
• Annual escalation of 0.5% in each year of Long-term plan

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

13

LTFPF Target Levy Rate- Inflationary Indices

• Various indices reviewed under framework for

setting target

• Levy rate considers weighting for types of

expenditures

• Consumer Price Index (CPI)
• Bank of Canada (BOC) targets 2.0%
• Year-over-year October 2019 1.9% (headline index)
• Forecast CPI to be aligned with BOC target
• Non-residential Building Construction Index
• Measures price changes for construction materials and

skilled/unskilled labour

• Year-over-year Q3 2019 3.3% (GTA)

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

14

LTFPF Target Levy Rate- Inflationary Indices

• Need to consider inflation based on mix of goods

and services purchased by the County

• Not keeping pace with overall inflationary pressures
• Erosion of capital base budget
• Compounds on infrastructure deficit
• Consistently high NRCPI will impact future construction

projects Base Levy Increase vs Inflationary Indices (annual)

6.0% 5.0% 4.0% CPI 3.0% NRCPI 2.0% 1.0% 0.0% Q3/19 2018 2017 2016 Base Levy

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

15

Responsible Taxation

• Unrealistic Targets
• Defer capital projects
• Increased maintenance costs
• Reduction in service levels
• Reduce reserve contributions / Deplete existing

reserves

• Less flexibility for unplanned events
• Reduced savings for future projects
• Increase debt
• Limits future options for funding projects
• Funds committed to repayment well into the future
• Strategic plan demands a corporate culture of

finding operating efficiencies

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

16

Responsible Taxation

• Unrealistic Targets
• Cumulative loss of financial capacity in long-term plan

from a 0.5% target levy reduction

• One-time reduction cumulative; $3.4M
• Annual reduction in long-term plan cumulative; $19.9M
• Taxation decrease to median home ~$6.02 (est. 2020)
• Large proportion of County budget non-discretionary tied to

mandatory service and program delivery

Cumulative Impact 0.5% Change in Levy

$25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 One-time Annual LTP

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

17

Responsible Taxation

• Comparator

Levy Increases

• Northumberland total levy increases less than Eastern

Ontario upper tier average over past 4 years

• Not keeping pace with needs as identified by

comparator group

• 6 of the 12 polled municipalities have a dedicated

infrastructure levy

Levy Increase (incl. growth)

4.10% 2018 2017 2016 2015 Northumberland 2016 levy increase adjusted to remove impact of transitioning Fire Dispatch services from lower-tier municipalities 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% Average Northumberland

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

19

Overview – The History

• Prudent & strategic financial decisions since 2001
• Financial lessons learned from the past (1990s)
• Rebuilt budget while delivering existing services

and downloads

• Cost effective ways to implement needed service

improvements

• Challenge to meet expectations and minimize levy
• Remain focused on today & the future

160.00% 140.00% 120.00%

Current

100.00%

Funding

80.00%

Gap

60.00% 40.00% 20.00% 0.00% 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029

• 20.00%
• 40.00%

CPI with Download CPI with Download (projected) Actual Levy Levy(projected) CPI CPI (projected) Infrastructure Shortfall

Overview – The History

20

Capital Investments vs Asset Mgmt Plan Investment Target

90,000,000

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2014201520162017201820192020202120222023202420252026202720282029 Total Planned Asset Investment Total Excl ExtraordinaryInvestment Recommended Annual Investment

Focus on the Future

• AM Plan estimates $27.4M needed annually
• Need to:

– Continue to ramp up capital budgets – Continue to contribute to reserves – Increased pressures from growth – County-wide Development Charge for Council consideration early 2020

21

% Change in Base Levy

15.0% 10.0% 5.0% 0.0% 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029

• 5.0%
• 10.0%

Levy increases Target Projected Levy Increases

Funding the Future

• Stable levy increases over past 9 years
• 10 year plan requires increases above 2.8%
• Dedicated capital levy introduced in 2016 to begin to

address infrastructure gap

22

Forecasted Yearend Reserves

70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000

• 2005

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Reserves at Yearend Projected Reserves at Yearend

Reserve Trend – 2005 to 2029

• Overall, reserves will grow modestly over next 10 years
• Utilization over next 10 years for financing large projects and

rate stabilization

• Consistently building into operating budgets
• Contributions are aligned to priorities in AM Plan
• AM Plan, Master Plans identify significant future needs
• WSIB liability underfunded
• Future landfill closure/post closure liability unfunded

23

18,000,000.00 16,000,000.00 14,000,000.00 12,000,000.00 10,000,000.00 8,000,000.00 6,000,000.00 4,000,000.00 2,000,000.00

• 2014

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Interest Principal Current ARL 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000

• Debt Principal at Yearend

Projected Debt Principal at Yearend '05 '07 '09 '11 '13 '15 '17 '19 '21 '23 '25 '27 '29

Debt

Debt Repayment Schedule Forecasted Yearend Debt

• Currently well below the Annual Repayment Limit (ARL)
• 2020 repayment will be $1.5M principal, $0.5M interest
• Will take on new debt in the next few years increasing debt

utilization, expect favourable interest rates

• GPL redevelopment
• Trent Hills and Brighton Emergency Services Bases
• Social housing redevelopment and expansion projects

24

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

25

Economic Outlook

• Economic growth in 2018 (Real GDP); Canada 1.9%

/ Ontario 2.2% (slowest growth rate since 2013)

• Canadian Real GDP annualized Q3-2019 1.3% /

forecasts 2019 ~1.5%

• Weakening world economy creates risks for Canada
• Uncertainty from global trade conflicts &

protectionist trade policies

• Inflation 1.9% / 2019 forecasts ~2.0%
• Global economic push towards easing monetary

policy

• US Fed has cut rates on 3 occasions in 2019
• BOC has held rate steady – possible rate cut 2020

2020 Opportunities and Challenges

• Opportunities

– Waste user fee increases -$1.1M – Training reduction -$100K – Wage Gapping -$100K – Interest Revenues -$90K – Reductions to Tourism - $28K (Others - $25K)

• Challenges

– Waste Department -$2.4M

• New collections contract & organics -$1.3M
• Leachate costs -$200K
• Recycling sales/commodity pricing -$350K
• Bag tag sales volume with green bin

program -$540K

26

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

27

2020 Opportunities and Challenges

Challenges Cont’d

– Winter Control number of events and salt/sand costs $300K – Health Unit funding request -$200K – Provincial funding -$70K (2020 vs 2019 budget) – Additional debt servicing costs $160K – Cost to implement Master Plan initiatives

• Total Challenges imbedded in budget equates to a 5.6% levy

increase

• Issue Papers (excl. salt/sand & Waste fees) further levy impact

$914K

• Council target 3% achieved in light of major challenges,

identified Issue Papers and inflationary pressures; all departments have found efficiencies

2020 Budget Details

• Key capital projects & purchases include:
• GPL Redevelopment
• Trent Hills Shared Emergency Services Base
• Organics Transfer Station
• LHC and Corporate facilities projects
• Elgin Park Housing Redevelopment Design
• Roads and Bridge work
• Equipment Transportation, Waste & Paramedic

Depts.

• Investment in EORN broadband project

28

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

29

Draft 2020 Budget

• Proposed levy increase after growth is 3.0%
• Base levy increase of 3.13%
• Dedicated Infrastructure levy change of -0.13%
• Growth estimated at 1.83%
• Total levy $59.0M
• Supports priorities in 2019 – 2023 Strategic

Plan

• Maintains existing programs and services
• Supports shared services
• Funds immediate capital needs
• Invests for the future

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

30

Dedicated Infrastructure Levy

• DIL introduced in 2016 continues in 2020 to

address the Infrastructure Gap

• Based on 3.0% of 2019 Budget Capital

expenditures

• Total $464K in 2020
• Allocated to the Bridge reserve in 2020
• DIL calculation increases by 0.5%/year in

long-term plan

• 2021 - $522K
• 2022 - $483K
• 2023 - $485K
• 2024 - $576K
• Long-term plan includes annual incremental

increase $500K base levy Transportation Construction Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

31

Draft 2020 Budget (Cash)

Draft Cash Budget Summary Operating expenses $102.4M Capital $30.0M Debt Principal Repayment $1.5M Change in Reserves ($7.2)M $126.7M Grants & Subsidies $40.6M Other Non-levy Revenue $18.3M Debenture $8.8M Levy $59.0M

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

32

Draft 2020 Budget (Accrual)

Draft Accrual Budget Summary

Cash based budget $126.7M Less: Debt Principal Repayment $1.5M Capital Purchases $30.0M Debenture Financing $8.8M Add: Amortization $8.8M Future Employee Benefits $0.2M Landfill Post-Closure Liability $0.6M Accrual based budget $96.0M

Corporate Rent Interest Other $0.01 Fees Planning/OAFVC $0.01 $0.01 Surface Treatment $0.01 $0.01 POA $0.01 Social Housing Rent $0.01 GPL Residents Levy $0.03 $0.50 Bag Tags/Tipping Fees / Recycling $0.05 Grants & Subsidies $0.34

How is a 2020 Budget $ Funded?

33

IT $0.02 Ec Dev,Planning & Tourism $0.03 NCHC $0.03 Corporate Services $0.03 External Transfers $0.03 Paramedics $0.10 Waste Management $0.10 Golden Plough Lodge $0.11 Finance $0.02 Corp Mgmt/Governa nce $0.01 Community and Social Services $0.19 Transportation $0.19 Facilities/GPL Rebuild $0.14

How is a 2020 Budget $ Allocated?

Note: Operating, capital and debt servicing costs excluding internal charges 34

Social Services Program Expenses $0.02 Fuel & Utilities $0.03 Other $0.04 Repairs and Maintenance $0.05 Materials and Supplies $0.05 Contract Services $0.17 Waste Expenses Financial Services & Debt $0.01 Repayment Salaries, Wages & Benefits $0.43 $0.20

How is a 2020 Operating $ Allocated?

35

NCHC $0.02 Paramedics $0.04 Roads $0.40 Waste IT $0.01 $0.01 Facilities $0.01 GPL (incl rebuild) $0.51

How is a 2020 Capital $ Allocated?

36

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

37

Tax Rate Impacts

Estimated Residential Tax Rate

2019

.004730560 x $260,250* = $1,231.13

2020

.004720351 x $267,000* = $1,260.33

Increase for the average home will be $29.20

* Median home value in Northumberland County per OPTA (Ontario Property Tax Analysis System) based on single family detached home not on water. The analysis above is based on preliminary assessment roll and 2019 existing tax policy which are subject to change.

Transportation, Waste & Facilities Department

Transportation

40

• PCI

Rating 2003 KM % 2006 KM % 2008 KM % 2010 KM % 2012 KM % 2014 KM % 2016 KM % 2018 KM % Adequate > 85 121.9 24% 245.2 49% 255.4 51% 280.0 56% 287.6 57% 272.1 54% 305.2 62% 316.7 63% 6 to 10 Years 76 to 85 152.3 30% 86.1 17% 67.5 13% 76.8 15% 74.7 15% 79.9 16% 83.6 17% 84.1 17% 1 to 5 Years 56 to 75 209.3 42% 119.9 24% 132.6 26% 113.8 23% 85.4 17% 64.6 13% 29.3 6% 44.8 9% NOW Rehabilitate 1 to 55 19.5 4% 51.5 10% 47.7 9% 32.8 7% 55.5 11% 86.5 17% 75.7 15% 49.0 10%

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

41

State of the Road System

2018 PCI Road Needs – System Adequacy

2020 Proposed Construction Program

42

Transportation Issue Papers

Issue Paper Amount Funding #1

Equipment Replacement Strategy $660,000 Levy – Base

#2

Roads Winter Operations Funding Strategy $350,400 Levy - New

#3

GIS Coordinator $89,602 $6.3K Levy – New $83.3K Shared Services Recovery

#4

Transportation Funding Strategy $500,000 Federal Gas Tax

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

43

Equipment Replacement Strategy

• The County has 70 pieces of equipment for road

maintenance and construction including snow plows, graders, loaders, backhoes, and pick-up trucks

• Transportation Services Division has developed a

sustainable 10-year equipment replacement strategy

• In 2020, it is proposed to replace:

– 1 2006 Sterling Combination Snow Plow ($310,000) – 1 2007 Etnyre Chip Spreader ($335,000) – 1 Equipment & Vehicle Diagnostic Scanner ($15,000)

• Financial impact $660,000

44

Roads Winter Operations Funding Strategy

• Severity, nature, number and timing of winter events has changed
• Currently 9 seasonal staff to conduct the Winter Operations from November

1st through March 31st

• Extension of Winter Operations Staff until April 30th to abide by the

Minimum Maintenance Standards ensuring sufficient staffing levels with no call-backs

• Increase the Winter Operations budget to accurately reflect material usage

and cost increases

• Last 3 years have shown increased expenditures for Sand/Salt material

~$200,000 each winter season based on volume

• Increased Sand & Salt pricing
• Financial Impact: $350,400

– Extension of Seasonal Winter Operations $50,400 – Winter Operations Salt & Sand $300,000

45

GIS Coordinator

• Request for 1 full-time GIS Coordinator
• Increased GIS requirements from County Departments and Member

Municipalities

– Interest in additional GIS services has been expressed by members of the Northumberland GIS Co-operative – Council Report July 2019 approved to engage with all Member Municipalities to identify interest/need for dedicated on-going GIS support – Annual salary for a GIS Coordinator, inclusive of benefits is estimated at $89,602. It is anticipated that 93% of salary costs will be shared by municipalities through GIS shared services agreements

• Financial impact $6,300

46

Transportation Funding Strategy

• Continuation of multi-year budget strategy
• Supports road and bridge rehabilitation and maintenance, safety

measures & growth related impacts

• Include recommendations from the Transportation Master Plan, traffic

studies and various Environmental Assessments (EA’s) completed

• ver the past few years
• Construction target based on identified needs $18.7M; the 2020 base

budget is $11.6M

• 2020 base budget allows for resurfacing every 29 years, target is

every 18-20 years

• Annually 12-15 km paved, target is 20 km to be paved annually

47

Transportation Funding Strategy

• 112 bridges over 3m span and hundreds of smaller culverts;

average lifespan of 50-75 years with 94% of bridges aged 35 years or older

• Based on OSIM bridge/culvert needs over next 10 years $24M
• Trent River Bridge further $19.9M
• 2020 bridge budget is $2.3M
• Financial Impact $500,000

– Financed from one-time 2019 doubling of Federal Gas Tax – One-time; therefore, not in base budget future years

48

Waste

49

Waste Issue Papers

#1 #2 #3 Issue Paper Amount Funding Equipment Replacement Strategy $200,000 $80K Levy – Base $120K Reserves Staffing at Community Recycling Centres $131,000 Levy - New Changes to User Fees ($800,000) Levy savings

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

50

Equipment Replacement Strategy

• Fleet of approximately 30 pieces of mobile equipment for the
• peration of Landfill / Transfer Stations and the MRF
• Significant processing equipment at the MRF
• Waste Services Division has developed a sustainable 10-year

equipment replacement strategy

• In 2020, it is proposed to replace:

– 2007 Backhoe with a new or quality used Frontend Loader ($200,000)

• $120,000 previously approved in 2018 budget to replace the

Backhoe allocated to reserve, now recommending Frontend Loader for greater versatility

• Financial Impact $200,000

– $120,000 Reserve – $80,000 Levy

51

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

52

Staffing at Community Recycling Centres (CRCs)

• Year-round HHW operations and expanded materials collections at newly

branded CRCs approved in 2017

• Proposing 2 Transfer Station Attendants working outside at the Bewdley

and Brighton CRC’s, versus the currently approved 1 – 1 Transfer Station Attendant working outside no longer able to effectively manage HHW, Ewaste and oversight of public drop-off areas for collection of various materials

• Usage of the County’s CRCs has steadily increased over recent years

Site Number of Patrons per Year % Change 2013 2018 Bewdley 38,800 61,442 58% increase Brighton 27,955 33,405 19% Increase Seymour 20,110 19,248 4% decrease Overall 86,865 114,095 31% Increase

• Current number of hours for Transfer Station Attendants is approved at

14,603 annually; propose increase to 18,437

• Financial Impact $131,000

Changes to User Fees

• Long Term Waste Management Master Plan recommends maintaining

the revenue balance between User Fees and Property Tax support

• Review of Waste user fees to minimize levy impact of program changes

– Bag tag fees unchanged since 2007 / Tipping fees 2013 – ~20% reduction Bag Tag sales anticipated with the new Green Bin Program – Tipping fees less than local comparators

• Further impacts to levy from Waste include

– Reduced MRF revenues – Increased leachate costs – Cost escalations from managing the materials diverted from Landfill

• Total Net Financial Impact – $800,000 increase in revenue

– Reduction bag tag sales Green Bin Program ($540,000) – Increase bag tag sales from elimination of Bulky Waste Vouchers $200,000 (offset tipping fees reduction) – Increase $3.75 Bag Tag Fee $785,000 – Increase $125/Tonne Tipping Fee $220,000 – Increase Tipping Fee Surcharge $135,000

53

(k$) 2019 2020 Change Revenue Levy 447 670 49.9% Rent 971 972 0.1% Internal Charges 2,462 2,424 (1.5%) 3,880 4,066 Expenditures Operating 3,878 3,904 0.7% Capital 1,697 175 (89.7%) Reserves (123) (13) (89.4%) Long Term Debt (1,572) (100.0%) 3,880 4,066

Facilities

54

GPL Redevelopment (Major Capital Projects)

(k$) 2019 2020 Change Revenue Levy 1,791 1,457 (18.6%) Grants 250 1,791 1,707 Expenditures Operating 419 524 25.1% Capital 2,057 15,058 632.0% Reserves (685) (5,171) 654.9% Long Term Debt (8,704) 1,791 1,707

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

55

Facilities Issue Papers

Issue Paper Amount Funding Corporate Buildings Strategy $135,000 Levy - Base Facilities Maintenance Technician ($33,000) Levy savings

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

#1 #2

56

Corporate Buildings

• Facilities Department has developed a 10-year sustainable

capital plan for each County building

• The proposed 2020 Facilities Budget has identified

maintenance and/or upgrades to the following Corporate Buildings:

– 860 William St., Cobourg: Carpet Replacement in POA ($60,000) – 600 William St., Cobourg: Interior Lighting Upgrades ($25,000) – 555 Courthouse Rd., Cobourg: Exterior Wood Refinishing ($50,000)

• Financial Impact $135,000

57

Maintenance Technician

• Request for 1 full-time Maintenance Technician
• There are currently 5 Maintenance Technicians comprised of the following

expertise

– HVAC, painting, general maintenance, locksmith/security and housing liaison

• Another Technician is proposed due to the increasing demands of the

current Maintenance Technicians with respect to:

– The addition of new County facilities – Enhanced collaboration with other County departments and member municipalities – Regulations (including Fire Code, Health and Safety Inspections) – The need to “pair up” to complete work safely – Preventative maintenance, on demand maintenance and project management tasks completed in house

• Financial Impact - Levy Savings $33,000

– $42,000 new Maintenance Technician (1/2 of full year) – $75,000 cost avoidance contracted security and locksmith services (1/2 of full year)

58

Community & Social Services Department & Northumberland County Housing Corporation

Community & Social Services

(k$) Revenue 2019 2020 Change Levy Grants & Subsidies Other Revenue 9,486 20,086 1,745 9,434 19,344 1,863 (0.5%) (3.7%) 6.8% 31,317 30,641 Expenditures OW & EA Housing Admin NCHC 11,717 5,550 3,544 10,523 5,293 4,211 (10.2%) (4.6%) 18.8% Child Care 8,365 8,800 5.2% Other Programs/Admin. Homelessness 628 1,386 644 1,414 2.5% 2.0% Food 4 All Reserves Debt 376 (249) 31,317 345 (469) (120) 30,641 (8.2%) 88.4%

60

Community & Social Services Issue Papers

Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

61

#1 #2 #3 #4 Community Housing Building Condition Assessments $125,000 Reserves Strong Communities Rent Supplement Program $83,500 Levy – New ‘Made in Northumberland’ Rent Supplement Program $16,000 Levy - New Community Homelessness Prevention Initiative $0 N/A - Reallocation of program funding

Community Housing Building Assessments

• Building condition assessments, elevator/lift audits and capital

reserve fund forecasts for:

– 14 NCHC buildings – 9 Non-profit hosing providers

• Ensure alignment of funding for critical repairs based on need
• Key component of the forthcoming Social Housing Master Plan and

Asset Management Plan

• Seeking funding opportunities through CMHC to support a fuller

scope of studies to include accessibility and energy audits

• Financial Impact $125,000

– Financed Housing Reserve

62

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

63

Strong Communities Rent Supplement Program

• Establishing a long-term strategic management plan for the

ending of the Strong Communities Rent Supplement Program (SCRSP)

– Provincially funded program $247,000 ending on March 31, 2023 – Currently represents 34 rent supplement units, tenants in receipt of rent-geared-to-income subsidy in the private market

• Recommendation to continue SCRSP units after program end

– Currently not meeting Provincially legislated service level standard – In 2023, investment will count towards SLS

• Financial Impact $83,500

– Propose further annual increases of $83,500 in 2021 & 2022 towards establishing full funding requirements ~$250,000 by March 31, 2023 – Investments until 2023 allocated to Housing Reserve towards new housing initiatives

Made in Northumberland Rent Supplement Program

• Request to develop a County-funded rent supplement program

‘Made in Northumberland’

• Incremental increase of rent supplement units by 2 per year,

beginning in 2020

– Currently not meeting Provincially legislated service level standard (SLS)

• Financial Impact $16,000

– Propose annual increases thereafter to invest in 2 additional units per year towards meeting SLS – Propose rent supplement agreements in 50% of affordable units created through the Affordable and Rental Housing Program commencing 2021 – Propose any year-end rent supplement surpluses be transferred to Housing Reserve

64

Community Homelessness Prevention Initiative (CHPI)

• Reallocate CHPI Provincial funding to support CHPI and

Northumberland Housing and Homelessness Plan priorities

• Increased investment for the provision of adequate and safe

emergency shelter for those experiencing homelessness

– Using a housing first approach – Increasing current funding level to operate a 24/7 shelter – Offering services to homeless people with the highest acuity

• The current investment into mental health services provided with

CHPI program funding will be reviewed

• Co-design with community partners a new service offering frontline

supports to access mental health services

• No Financial Impact

– An increase to the core investment from $300,000 per year to $400,000 – Reallocation

• f

Provincial program funding

65

Golden Plough Lodge

(k$) 2019 2020 Change Revenue Levy 4,870 5,100 4.7% Subsidies 7,482 7,377 (1.4%) Resident Revenue 3,267 3,365 3.0% Other 151 153 1.3% 15,770 15,995 Expenditures Nursing 9,046 9,012 (0.4%) Dietary 1,911 1,989 4.1% Laundry & Housekeeping 770 792 2.9% Facility 1,220 1,241 1.7% Other Operating, Capital, Reserves & Admin. 2,823 2,961 4.9% 15,770 15,995

Golden Plough Lodge

67

GPL Issue Papers

#1 #2 #3 Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

68

Paramedic Laundry Staffing $11,640 Levy - New Chaplaincy Hours $24,000 Levy - New Capital Plan $244,500 Levy - Base

Paramedic Laundry Staffing

• Golden Plough Lodge (GPL) has processed Paramedic

laundry since 2013

– Interdepartmental cost recovery

• Increasing laundry demands cannot be met within existing

staffing hours

• Based on recommendation and consultation with Paramedic

Department:

– Increase dedicated staffing by one Part Time 4 hour shift for the period September to May; 192 hours – Increase dedicated laundry hours accommodate emergency events; 96 hours

• Financial Impact $11,640

– Cost recovery Paramedics – 50% Provincial funding

69

Chaplaincy Hours

• Existing position 28 hours bi-weekly, 13% in lieu of benefits
• Propose increasing hours of work to 56 hours bi-weekly

– Ministry of Health has specific Religious and Spiritual expectations and requirements in long term care – An increasing demand for spiritual support by residents, families and GPL Staff members has been identified and documented – Increased hours allows for enhanced and consistent emotional and mental health support, individual counselling and end of life care

• Financial Impact $24,000

70

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

71

GPL Capital Plan

• The GPL has a 10 year capital plan; mitigates costs, plans

for replacement/repair of key equipment, maintains necessary infrastructure for resident comfort and safety

• 2020 proposed capital budget

– Brickwork Pointing - $32,000 – Window Replacement - $25,000 – Pex Plumbing System - $25,000 – Back-Up Generator - $22,000 – Hot Water Tank - $9,500 – Resident Bathroom Plumbing - $22,000 – Flooring Replacement - $18,500 – Bed Replacement - $22,000 – Furniture Replacement - $26,500 – Resident Lift replacement - $24,000 – Hot Water Upgrade - $18,000

• Financial Impact $244,500

Northumberland Paramedics

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

73

Northumberland Paramedics

(k$) 2019 2020 Change Revenue Levy 6,766 7,775 14.9% Subsidy 6,197 6,275 1.3% Other 100 50 (50.0%) 13,063 14,100 Expenditures Operating 12,409 13,433 8.3% Capital 654 1,208 84.7% Reserves (541) 13,063 14,100

Paramedics Issue Papers

Issue Paper Amount Funding 12 Hour Ambulance Enhancement $236,252 Levy - New Rural Emergency Response Vehicle $260,544 Levy - New

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

#1 #2

74

Year over Year Trends

2018 2017 2016 2015 2014 5000 10000 15000 20000 25000 30000 2014 2015 2016 2017 Responses 15920 17633 20989 24240 27172 2018

12 Hour Shift Ambulance Enhancement

• Currently at and beyond capacity for

meeting regulatory compliance

• No longer able to compensate for volume

with deployment changes

• In Critical Emergency Coverage (CMEC)

everyday

• Increased overtime due to upstaffing in

CMEC

• Unable to sustain response time targets
• Increase in Call volume of 41% since 2014

(Last enhancement Colborne 2014)

• Taxing Fire Dept resources for medical tiered

response due to ambulance delays

• Propose 4 FTE in Port Hope
• Financial Impact $236,252 (1/2 of full year)

– 50% Provincial funding subsequent year – Full year commencing 2021

75

CTAS 2 Response May 1 to Oct 1 2017-2019

Municipality 2017 2018 2019

Change (2018 to 2019)

Hamilton 34% 50% 45%

• 5%

Alderville Brighton

Alnwick and Haldimand

Trent Hills Cramahe Port Hope Cobourg 66% 40% 80% +40% 58% 57% 67% +10% 23% 19% 38% +19% 47% 38% 44% +6% 81% 59% 65% +6% 61% 61% 67% +6% 83% 81% 86% +5%

Emergency Response Vehicle and Community Paramedicine (CP)

• Successful 2019 trial in rural

Northumberland

• Cardiac Arrest Save and data - supported

improved capacity for sustained response time targets for emergencies

• Trial improved overall county response

times for legislated target compliance

• Decreased strain on FD tiered response

for medical calls

• Ideal opportunity to blend CP with 911

system for shared MOH Funding

• CP is an OHT-Northumberland primary
• bjective
• Increase in Call volume of 41% since

2014 has drastically reduced capacity for rural response

• Propose 2 FTE
• Financial Impact $260,544

– 50% Provincial funding subsequent year

76

Corporate Management, Governance, External Transfers & Communications

Corporate Management, Governance & External Transfers

(k$) 2019 2020 Change Revenue Levy 4,009 4,135 3.1% Internal Charges 813 871 7.1% Grants & Subsidies 416 735 76.7% Other 100 100 0.0% 5,338 5,841 Expenditures Operating 6,107 5,988 (1.9%) Reserves (769) (147) (80.9%) 5,338 5,841

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

78

Corporate Mgmt Issue Papers

Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

79

No Issue Papers in 2020

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

80

(k$) 2019 2020 Change Revenue Internal Charges 414 401 (3.1%) 414 401 Expenditures Operating 456 401 (12.1%) Capital Reserves (42) (100.0%) 414 401

Communications

Communications Issue Papers

Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

81

No Issue Papers in 2020

Finance Department

Finance

(k$) 2019 2020 Change Revenue Interest 988 1,078 9.1% POA 1,500 1,500 0.0% Other 20 20 0.0% Internal Charges 1,795 1,827 1.8% 4,303 4,425 Expenditures Operating 3,407 3,398 (0.3%) Reserves 896 1,027 14.6% 4,303 4,425

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

83

Finance Issue Papers

Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

84

No Issue Papers in 2020

Economic Development, Planning and Tourism

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

86

(k$) Revenue 2019 2020 Change Levy 2,407 2,144 (10.9%) Grants & Subsidies 423 960 127.0% Other 851 976 14.7% 3,681 4,080 Expenditures Operating 3,390 4,011 18.3% Reserves 291 69 (76.3%) 3,681 4,080

Economic Development, Planning and Tourism

Economic Development, Planning and Tourism Issue Papers

Issue Paper Amount Funding County Official Plan Update - Growth $70,000 Reserves Plan Conformity

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

#1

87

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

88

County Official Plan Update

• Provincial legislation requires the County to update the Official Plan

by July 2022

• The update will include:
• a land needs assessment
• an employment land assessment
• watershed (water resource system) planning
• natural heritage system planning
• agricultural system planning
• a review of growth forecasts;

intensification and density targets; housing policies; and aggregate resource policies

• Financial impact $70,000

– Total $210,000 over 3 years at $70,000/annum – 2020 fully financed reserve – 2021 partially financed reserve $55,000 – 2022 financed levy

Corporate Services

Corporate Services

(k$) Revenue 2019 2020 Change Levy Grants 1,762 1,965 100 11.5% Other 196 190 (3.1%) Internal Charges 1,668 3,626 1,665 3,920 (0.2%) Expenditures Operating Capital Reserves 3,591 11 24 3,853 67 7.3% (100.0%) 179.2% 3,626 3,920

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

90

Corporate Services Issue Papers

Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

#1 #2 Conservation Stewardship Technician $66,698 $42.7K Levy – Base $24K Reserves Addressing Liabilities & Safety Concerns in County Forest $32,907 Levy - New

91

Conservation Stewardship Technician

• Contract for a Conservation Stewardship Technician

– 2020 half year, 2021 full year and 2022 half year

• Tasks to be completed for this position include

– Habitat and species monitoring – Species at risk surveys – Enforcement and Weed Bylaw assistance – Volunteer, trail and forestry assistance – Education and outreach of the ecology of the Forest – Inventories of plants and animals – Site restoration planning and on the ground stewardship work

• Financial Impact $66,698

– Staffing $42,702 financed timber revenue surpluses – Capital and operating $23,996 financed Forest reserve – $74,437 (2021) and $39,747 (2022) anticipate financing from future year timber revenue surpluses and reserve

92

Addressing Liabilities and Safety Concerns within the Forest

• Liability issues along the forest boundary and

under the hydro line

– Vandalism – Accidents and trail user conflicts – Illegal truck use – Illegal hunting – Dumping – Damage to sensitive habitat and species – Illegal tree removal – Paint ball games – Illegal construction of ramps and trail creation

• Costs for surveying, fencing, gating, signage,

education pamphlets

• Financial Impact $32,907

– Under Hydro Line Costs $3,907 (2020); $9,805 (2020/21) – Boundary Costs $14,000 one-time (2020) – Boundary Costs $15,000 annual transfer to reserve capped $70,000

93

Information Technology Department

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

95

(k$) 2019 2020 Change Revenue Internal Charges 1,834 2,051 11.8% Grants 278 Other 262 266 1.5% 2,096 2,594 Expenditures Operating 1,967 2,518 28.0% Capital 195 Reserves 129 (119) (192.2%) 2,096 2,594

Information Technology

Information Technology Issue Papers

Issue Paper Amount Funding

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

#1 #2 #3 #4 Manager of IT Security & Infrastructure $72,284 Levy - New IT Infrastructure Upgrades $150,000 Reserves Creation of Digital Strategy Fund $50,000 Levy - Base Transfer Records Management Function to IT $21,750 Levy - New

96

Manager of IT Security and Infrastructure

• Aligns with Goal #4 of IT Strategy 2018,

Org redesign

• Aligns with SMARTnorthumberland’s action

item “Building the digital infrastructure”

• Dual responsibility role:

– Security – lead the County’s IT security strategy – Infrastructure – design and ensure the efficient and effective

• perations of the County networks

and data centre

• Financial Impact:

– 2020 = $72,284(1/2 of full year)

IT Infrastructure Upgrades

• Per the County’s 10-year IT Infrastructure

Replacement Plan, the County’s Server/SAN infrastructure needs to be upgraded in 2020

– One of the main components of the IT infrastructure – Houses all virtual servers (>40) and all data storage – Vital for business continuity

• Pre-approval received from Council in

October 2018

• RFQ process has started
• Financial Impact $150,000

– Financed IT Reserve

98

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

99

Creation of Digital Strategy Reserve

• Supports the SMARTnorthumberland

Digital Strategy

• Funds to assist with providing initial

financing for transformational or innovative technology projects in the County

• Financial Impact $50,000

– Reallocation of annual contribution Tech Reserve to new Digital Strategy Fund

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

100

Transfer the RIM Function to IT

• Transfer oversight of the Records Management Function to IT
• Hire new Records Management Coordinator
• Tight integration currently exists between

records management and information technology

• Similar goals and similar processes
• Transferring oversight to IT supports

the critical relationship between the two fields

• Financial Impact $21,750 (1/4 of full year)

2020 Draft Budget & Long-term Plan

Overview: December 18, 2019

102

Summary

• 2020 draft budget proposes (after growth):

– 3.1% increase to the Base Levy – 0.1% decrease to the Dedicated Infrastructure Levy – 3.0% total levy increase

• Draft budget:

– Proposes Base Levy increase aligned with 3.0% target approved by Council – Aligned with the LTFPF to focus on future needs – Aligned with the strategic plan – Incorporates savings and efficiencies – Maintains programs & services – Supports shared services initiatives

• Budget addresses immediate financial challenges & capital needs
• County-wide DC Background study for Council consideration in 2020
• Investigate merits of possible Council approval of a multi-year

budget in future years

Next Steps

Seeking support for the proposed draft budget Draft budget and long-term plan posted on-line for public review/comment January/February Council; staff to provide additional information & analysis as requested and prepare by-law for approval Begin implementing immediately upon approval. Tax rates/ratios to be approved March/April

Questions?

Reserve 2019 (est) 2020 Additions 2020 Reductions 2020 (est) Working Funds/General Reserve 12,636,460 1,728,225 75,882 14,288,803 Social Housing Reserve 10,465,569 274,494 642,639 10,097,424 Transportation Capital Reserve 11,069,942 789,668 3,881,000 7,978,610 Waste Services Capital Reserve 4,277,466 1,150,000 265,000 5,162,466 WSIB Reserve 3,735,036

• 3,735,036

Facilities Capital Reserve 1,680,198 50,000 63,200 1,666,998 Transportation Operating Reserve 1,364,082

• 1,364,082

Paramedics Capital Reserve 1,614,475 848,250 1,349,194 1,113,531 Technological Reserve 880,840 100,000 167,217 813,624 Social Services Reserve 643,000 34,000 135,000 542,000 Land Use Planning 499,992 68,848 190,810 378,030 Emergency Planning Reserve 295,050 5,000

• 300,050

Human Resources Reserve 330,000

• 30,000

300,000 Insurance Claims Reserve 258,970 50,000 50,000 258,970 Forest Reserve 252,367 59,416 59,586 252,197 Ec Dev and Tourism Operating Reserve 222,678

• 222,678

IT/Phone System Replacement Reserve 320,000 50,000 208,118 161,882 GPL Capital Reserve 179,258

• 53,800

125,458 Corporate Service Dept. Operating Reserve 125,000

• 125,000

Paramedics Operating Reserve 156,600

• 40,000

116,600 Workplace Safety Program Reserve 64,468

• 64,468

GPL Donations Reserve 24,104

• 24,104

Other Operating Reserves 6,038

• 6,038

GPL Rebuild Reserve 5,171,441 1,523,448 6,694,888 56,273,033 6,731,348 13,906,334 49,098,047

Reserve Summary

106