2020 Proposed Business Plan and Budget October 16, 2019 2020 - - PowerPoint PPT Presentation

2020 Proposed Business Plan and Budget

October 16, 2019

Topics for Discussion

• 2019 Overview
• Fiscal position
• 2020 Budget components
• Capital
• Operations
• Base Programs and Services
• Growth Pressures
• Service Level Enhancement
• Development and Fee Supported
• Water and Wastewater

2020 Proposed Business Plan and Budget

2019 Assessment Overview

• Since 2016, conservative estimates of tax

assessment have been used for growth

• Currently processing new units to tax roll within 12-18

months

• Preliminary data projects favourable assessment for

year end 2019

• Modest annual assessment growth projected for the

near future

2020 Proposed Business Plan and Budget

The Town is in a solid fiscal position

• Debt free
• Tax levy increases aligned with inflation for base

programs and services

• Lowest relative taxes in York Region
• Building reserves for fiscal sustainability
• Approximately $50 million available in reserves
• Approximately $23 million available in development charges
• Providing funding for operation of new facilities

2020 Proposed Business Plan and Budget

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2004-2006 2007-2010 2011-2014 2015-2018 2019 Average Tax Levy Increase Average Ontario Inflation

2020 Proposed Business Plan and Budget Annual Tax Levy Increases Relative to Inflation Base Programs and Services

2020 Proposed Business Plan and Budget

2018 Property Taxes – Two Storey Detached House $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

East Gwillimbury Georgina Whitchurch-Stouffville York Region Average King Newmarket Aurora Vaughan Markham Richmond Hill

25%

Lowest Relative Taxes in York Region

12%

Source: BMA Municipal Study, 2018

2020 Proposed Business Plan and Budget Objectives

• 1. Maintain base programs and services to residents, with tax

levy increases aligned with inflation

• 2. Provide for growth-related service pressures through

assessment from new residents

• 3. Continue with dedicated multi-year funding plans to provide

for service level increases

• Community safety
• Community health & recreation

2020 Proposed Business Plan and Budget

2020 Proposed Business Plan and Budget Objectives

• 4. Priority focus on optimization of efficiency and effectiveness
• 5. Continue current funding for asset management (replacement

and renewal)

• 6. Provision for COLA and collective agreement obligations

2020 Proposed Business Plan and Budget

2020 Proposed Business Plan and Budget Total Proposed Budget - $50.7 Million

Development & Fee Supported, $5.3M 10% Capital, $11.9M 24% Water and Wastewater (preliminary estimate), $7.7M 15% Operations, $25.8M 51%

Significant Ongoing Capital Projects – Previously Approved

• Facilities
• Operations Centre Construction - $19 M
• Health & Active Living Plaza Architectural Services - $1.4 M
• Studies
• Highway 404 Employment Lands Servicing - $700,000
• Community Improvements
• Mt. Albert CC & Queensville Park Redevelopment - $2.7 M
• Colony Trail Construction - $390,000
• Regular Infrastructure Maintenance
• Road Rehabilitation

2020 Proposed Business Plan and Budget

Proposed Capital Budget

• Typically represents projects or initiatives that are one‐time or

time specific in nature

• May include multi year projects such as the construction of a

new facility, preparing growth related study, or annual road rehabilitation

• Also includes the Town’s annual repair and

replacement program for maintaining the Town’s assets 2020 Proposed Business Plan and Budget

2020 Proposed Business Plan and Budget Total Capital Budget by Revenue Source - $11.9 Million

Annual Tax Levy Contribution, 4% Tax Levy Supported Reserves , 28% Water/Wastewater Supported Reserves, 15% Development Charges, 34% Community Capital Contributions, 6% Grants, 6% Federal Gas Tax, 7%

2020 Proposed Business Plan and Budget

Proposed Capital Budget Highlights

• Community Improvements
• Centre Street revitalization – multi-year (ICIP grant)
• Mount Albert Library branch renovation
• EG Sports Complex Expansion - design
• Public Realm improvements
• Nokiidaa Trail Paving
• Civic Centre Precinct Landscape Design
• Administrative Process Improvements & Planning for the future
• Community Benefits Charge Strategy & DC By-law amendment
• Increased server capacity
• IT N6 security assessment
• Official Plan review
• Civic Centre Space Needs Assessment / Growth Plan
• Stormwater Master Plan

2020 Proposed Business Plan and Budget

Proposed Capital Budget Highlights

• Continued maintenance and repair of Town infrastructure
• Replacement of ‘end of life’ vehicles and equipment
• Water and Wastewater
• Water meter replacements – year 3 of 4
• Retrofit of Holland Landing Sanitary Pump Station

Future Anticipated Capital Funding Pressures Bill 108: More Homes, More Choices Act

• Received Royal Assent June 6, 2019
• Changes 13 pieces of legislation, including DCA and PA
• Development charges for soft services, cash in lieu of parkland and density

bonusing to be combined into one Community Benefits Charge (CBC)

• Change to calculation and administration of charges may result in less revenue for

growth-related capital expenditures

• Proposed that new CBC strategy and by-law must be in place by January 1, 2021
• Changes will be reflected in 2021 budget

2020 Proposed Business Plan and Budget

2020 Proposed Business Plan and Budget

Proposed Operating Budget

• Operating budget represents the

component of the Town

• perations that is primarily

property tax supported budget

2020 Proposed Business Plan and Budget Total Operating Budget by Revenue Source - $25.8 Million

Taxation, 84.1% Development Charges & Contributions, 2.1% User Fees & Permits, 6.1% Other, 4.6% Transfers from Reserves , 2.3% Grants, 0.8%

2020 Proposed Business Plan and Budget

Growth-related Service Pressures

• Growth-related pressures funded by growth-

related assessment

Service Pressure Amount Additional winter maintenance $150,000 Additional training & professional development $70,000 Additional facilities & programs $65,000 Increased library operations $70,000 Increased software licences & maintenance $45,000 Increased park operation costs $50,000 Total $450,000

Multi-year funding plans to provide for service level increases

• Community Safety
• Provide an annual 0.5% dedicated tax levy increase

for 2020 & 2021

• 1 new fire inspector in 2020
• 1 new fire fighter in 2021
• Community Health & Recreation - HALP
• Dedicated 0.5% tax levy increase to operate new

facility

2020 Proposed Business Plan and Budget

Proposed Full Time Positions in 2020 Budget

2020 Proposed Business Plan and Budget

Type Department Position Tax Levy Impact ($000s) Growth- Related Library Digital Literacy Specialist $69.0 CPRC Recreation Customer Service Representative $26.4 Service Level Increase ECSS Fire Inspector $142.5 Base CPRC Farmers Market Programmer $18.0 CPRC Facility Operator (Conversion) $0.0 CS Purchasing Manager (Conversion) $0.0 CS Communications Assistant – Graphic Design & Marketing $0.0 Total $255.9

2020 Proposed Business Plan and Budget Preliminary Summary of Budget Pressures and Funding Strategy

x $1M Expenditures: Base programs and services $1.8 Growth-related services $0.5 Service level increase (multi-year funding plans) $0.2 Total $2.5 Funding: In-year assessment growth* +/-$1.4 Projected supplemental assessment (new homes)* +/-$0.3 Tax Levy - Base +/-$0.6 Tax Levy – Dedicated for service level increase (Community safety and aquatics facility) $0.2 Total $2.5

*Note: Preliminary estimate – subject to further review

Proposed Impact to the Average Homeowner

2020 Proposed Business Plan and Budget

Base Programs & Services Community Safety

+/- 2.6% .5% +/- 3.6% +/- $41 $8 +/- $57 $8 .5%

Community Health & Rec

2020 Proposed Business Plan and Budget Objectives

• 1. Maintain base programs and services to residents, with tax

levy increases aligned with inflation

• 2. Provide for growth-related service pressures through

assessment from new residents

• 3. Continue with dedicated multi year funding plans to provide

for service level increases

• Community safety
• Community health & recreation

2020 Proposed Business Plan and Budget

2020 Proposed Business Plan and Budget Objectives

• 4. Priority focus optimizing efficiency and effectiveness
• 5. Continue current funding for asset management (replacement

and renewal)

• 6. Provision for COLA and collective agreement obligations

2020 Proposed Business Plan and Budget

2020 Proposed Business Plan and Budget

Proposed Development & Fee Supported Budget

• The Development and Fee Supported budget represents the

component of the Town operations that is supported by fees for service (no tax support)

• Each of these service areas has approved

fees or charges that are intended to fully recover the cost of providing the service

• Represents the component of the Town operations

that is supported by fees for service (no tax support)

• The Town charges water and wastewater fees to

property owners for both delivery and usage

• Fees are intended to ensure that there is full cost

recovery to the Town for providing safe drinking water and maintaining the water and sewer infrastructure

2020 Proposed Business Plan and Budget

Proposed Water and Wastewater Budget

• Council approved the Water Financial Plan, as part of
• ur drinking water license renewal, February 2, 2016
• A multi-year water and wastewater rate study was

completed in conjunction with the statutorily required Financial Plan

• Will be updated in 2020
• Capital project request included in 2020 submission
• The Water and Wastewater budget is anticipated to

presented and deliberated in January 2020

2020 Proposed Business Plan and Budget

Proposed Water and Wastewater Budget

Next Steps

• Budget deliberations
• November 25
• November 27
• December 2
• Proposed adoption of business plan and budget
• December 17
• Water and wastewater budget
• January & February 2020

2020 Proposed Business Plan and Budget

Development Adoption Implementation Monitoring Deliberation