2020 Operating Budget Placeholder Image ajax.ca February 3, 2020 - - PowerPoint PPT Presentation

ajax.ca

2020 Operating Budget

Placeholder Image February 3, 2020

Agenda

• Operating Budget Overview
• Framework – Process, Timelines and

Funding

• Pressures
• Exceptions
• 2020 Operating Budget Summary
• Wrap up – Next Steps
• Questions?

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• Covers the day-to-day operation
• 8 Departments:

 Mayor and Council  Office of the CAO/ HR Services  Legislative & Information Services  Finance  Operations & Environmental Services  Recreation, Culture & Community Development  Fire & Emergency Services  Planning & Development Services

• Library Grant

Operating Budget Overview

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Money is spent on the day-to-day expenses for program and service delivery including:

• Road & sidewalk maintenance including winter

control

• Recreation, parks, trails & waterfront

maintenance

• Emergency services
• Library services
• Grass cutting

Operating Budget Overview

Process/Timelines

June – November

• Departments complete operating budget which is

then reviewed with Finance September - December

• Senior Management Team review/recommend any

submitted staffing and new/expanded service requests and tax rate increase January 6th – Operating Budget Workshop February 3rd – 2020 Operating Budget Presentation

• Budget was published on website on January 27

February 24th – Council Approval

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• The Town is required by provincial law to balance

its operating which means that money raised must balance the money spent. To balance the budget, the Town can either:

 Increase its revenue stream through raised property taxes and fees; or  Manage expenses by reducing the cost of programs and services

Operating Budget Framework

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• Ongoing monitoring and reporting throughout

the year

• Operating Budget Forecast Report
• Final year-end reporting

Operating Budget Framework

2020 Net Operating Budget

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2020 Proposed Operating Budget Amount Town of Ajax 66,053,500 Less: Payments in Lieu & Supplementary Taxes (1,786,000) Library Grant 6,063,100 Sub-total 70,330,600 New Staff 651,600 New and Expanded Services/Programs (NEPI) 688,700 Net Operating Budget $ 71,670,900

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Expenditures by Category

Wages & benefits, $56,853,300 , 62% Library, $6,063,100 , 7% Reserve allocations, $5,736,200 , 6% Contracted Services, $6,924,800 , 7% Utilities, $3,709,200 , 4% Debt, $2,577,700 , 3% Materials/Supplies, $2,376,300 , 3% Insurance, $1,514,200 , 2% Other, $5,486,500 , 6%

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Funding/Revenue Sources

Taxation Revenues, $(71,670,900), -79% Recreation Revenues, $(6,379,300), -7% Planning Fees, $(2,770,600), -3% Investment Income, $(981,100), -1% Reserve Allocations, $(1,987,400), -2% Other, $(5,303,500), - 6% Recoveries, $(2,148,500), -2%

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Limited in scope and generally fall into one of the following categories:

• Opening of New Town Facility/Building
• New Services, Service

Improvements/Increases in Existing Service Levels

• Legislative Change

Exceptions to the Tax Rate:

Operating Budget Pressures

• Annualization impact of prior year decisions

e.g. ARC, staffing

• CIP – taxation & planning fees
• Growth related to new subdivisions assumed
• Contractual labour increases
• Inflationary increases – contracted services
• Winter control maintenance

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2020 Draft Operating Budget Increase / (Decrease) Tax Rate Exception Tax Rate Total Base Budget ARC Phase 2 2.19 Wages & benefits 1,597,900 Library annual increase 77,100 Winter Control maintenance 138,100 Vehicle rentals (pending Fleet utilization study) 73,300 Education & training 65,500 Contracted security 65,200 On-going routine software maintenance 63,400 LED savings (192,000) Other 31,100 1,919,600 2.76 Annualization - 2019 approved positions 724,300 1.08 Reserve allocation - approved by Council Dec 20 104,300 0.16 New Staff requested in 2020 651,100 0.97 New/Expanded Services - 2020 688,800 1.03 4,088,100 6.00 Fees (691,200) (1.04) Assessment Growth - Final (657,500) (0.98) Reserve Transfers (debt/strategic initiative/turf) (444,900) (0.66) Library Surplus (373,000) (0.56) (2,176,900) (3.24) Net Base Increase 1,911,200 2.76 2.19 4.95

Tax Rate Increase

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2020 Average Assessed Home 486,600 $ 2020 $ Increase Town (4.95%) 81.75 $ Region (2.5%) 73.83 $ Education

• $

Total 155.58 $ 2020 Combined rate 2.89% Monthly - Town 6.81 $ Monthly - Region 6.15 $

Tax Rate Increase

15 MONTHLY - $12.96 ANNUALLY - $155.58

$6.81 $81.75 $6.15 $73.83

AVERAGE ASSESSED HOME - $486,600

Town of Ajax 4.95% Region of Durham - 2.50%

Combined – 2.89%

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55% 31% 14%

Region of Durham Town of Ajax Province - Education

Property Taxes Distribution

2020 Draft Operating Budget Tax Rate

Non Discretionary Approved Budget Items

Audley Recreation Centre Phase 2 2.19 Annualization – 2019 approved positions 1.08 Reserve allocation – approved by Council Dec 20 0.16 Total non-discretionary tax rate increase 3.43 Base budget increase 1.52

Proposed tax rate increase

4.95

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Tax Rate

2.75 2.52 2.25 2.75 4.93 4.95 2.19 ARC 0.00 1.00 2.00 3.00 4.00 5.00 6.00

2015 2016 2017 2018 2019 2020

1.40 ARC

3.53 BASE 2.76 BASE

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Tax Rate Comparison

1.00 2.00 2.03 3.08 4.95 5.68 5.90

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Richmond Hill - Target Clarington - Target Oshawa - Approved Oakville - Approved Ajax Milton - Approved Whitby - Target

2.76 2.19 ARC

Budget Savings Initiative

• Communication to all Town staff to share

ideas on how to find efficiencies and savings

• 22 staff suggestions received to-date
• Currently being evaluated
• Will review and report back to Council

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THANK YOU/ QUESTIONS?

Sandy Serrao

Acting Director of Finance Finance Town of Ajax sandra.serrao@ajax.ca (905) 619-2529, ext. 3324

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