CITY OF LONDON Build a Budget Workshop 2015 1 Stay in Touch E-mail - - PowerPoint PPT Presentation
CITY OF LONDON Build a Budget Workshop 2015 1 Stay in Touch E-mail budget@london.ca Tweet us @CityofLdnOnt or #LdnBudget15 Find us on www.Facebook.com/LondonCanada Call Financial Planning & Policy at 519-661-4638 www.buildabudget.ca Watch
1
2
E-mail budget@london.ca Tweet us @CityofLdnOnt or #LdnBudget15 Find us on www.Facebook.com/LondonCanada Call Financial Planning & Policy at 519-661-4638 www.buildabudget.ca Watch budget meetings streaming live at www.london.ca/livestreaming
3
The City’s plan for expected revenue and expenditures based on the City’s daily activities. The City’s plan for long-term financing of fixed assets. Operating Budget… Capital Budget…
4
Property taxes collected from existing homeowners and businesses. Additional revenue that is collected through property taxes due to a growing and expanding city. Funding from Assessment Growth…
Tax Levy from Rates…
The tax bill paid by homeowners and businesses for owning real estate. This revenue is used to fund programs and services for the entire community.
Property Tax Levy…
5
Fees collected from developers through building permits and used to fund new infrastructure (capital costs) related to growth.
Development Charges…
Fees imposed on services intended to recover all or part of the cost associated with providing the service.
User Fee Revenue… Pay-as-you-go Financing…
The principle of funding capital projects with current funds rather than relying on debt financing.
6
A Reserve Fund is an amount set aside for a specific purpose by authority of a by-law (or as required by legislation) that is carried from year to year unless consumed
Reserves are also amounts carried from year to year, but reserves are set up by resolution of Council and are used mainly as cushions against operating budget contingencies
Reserve Fund… Reserves…
7
8
Tax Levy=Property Taxes collected Non-Property Tax Revenues (User fees and Grants) From Tax Rate Increase From Assessment Growth
Cover short-term financing of capital projects, liabilities and emergencies
For effective asset management
Seed money for investment opportunities/partnerships
Reserves & Reserve funds are critical… What happens without Reserves and Reserve Funds?
Short term borrowing costs Aaa credit rating may be affected Reduction in capital works & investments Could have liquidity problems
9
10
11
Culture, 4.6% Economic Prosperity, 2.9% Environmental Services, 3.5% Parks, Rec. & Neighbourhood Services, 6.0% Planning & Development Services, 1.1% Protective Services, 30.4% Social & Health Services, 13.4% Transportation Services, 11.6% Capital Financing & Contingencies, 21.3% Corporate, Operational & Council Services, 5.2% , 0%
2014 Net Budget = $498.7 million 2015 Net Budget = $513.2 million
Culture, 4.6% Economic Prosperity, 2.9% Environmental Services, 3.4% Parks, Rec. & Neighbourhood Services, 5.9% Planning & Development Services, 1.1% Protective Services, 29.8% Social & Health Services, 12.7% Transportation Services, 11.7% Capital Financing & Contingencies, 22.6% Corporate, Operational & Council Services, 5.3%
Increase of 2.9%
12
2014 Gap is $17.7M
1.0% 2.7% $104 $- $20 $40 $60 $80 $100 $120 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% London Comparators Potential Lost Revenue Millions
How Does London Compare
2011 - 2014
London received
$104 million less
in revenue in comparison to
municipalities
NOTE: The municipal comparators include Barrie, Chatham-Kent, Greater Sudbury, Guelph, Hamilton, Kingston, Ottawa and Thunder Bay
13
2014 2015 2.9% $72/yr or $6/mo $2,493 $2,565
NOTE: Average rate payer owning a home with an assessed value of $214,000. Municipal Property Tax Amount is subject to 2015 tax policy. Excludes the Education tax portion which is set by the Province (2014 - $434.42).
14
*Average rate payer owning a home with an assessed value of $214,000. Municipal Property Tax Amount is subject to 2015 tax policy. Excludes the Education tax portion which is set by the Province.
Protective Services………………………………………………………………………….
$6 $3 $3 $0.50 $0.25 $0.25 $72
Monthly
$32 $2.67 Capital Financing………………………………………………………………………………
$15 $11 $4 $1.25 $0.92 $0.33 Land Ambulance (Submitted at 3.6%)………………………………………........ $2 $0.17 London Transit Commission (Submitted at 2.9%)………..…………........ $4 $0.33 London Public Library (Submitted at 2.1%)…….…………………….…........ $2 $0.17 London & Middlesex Housing Corporation (Submitted at 7.4%)… $3 $0.25 Conservation Authorities…………………………………..………………………….. $1 $0.08 Net Ontario Works…………………………………..………………………………………
$(3) $(9) $6 $(0.25) $(0.75) $0.50 Remaining Service Areas……………………………………………………………….. $4 $0.33 Roadways (Submitted at 3.4%)………..…………....................................... $6 $0.50 15 Yearly $6
The capital budget is broken down into the following categories:
16
62.5 m
51.0 m
Development Charges 35.8 m Debt 6.6 m Capital Levy 27.7 m Total 2015 Capital Budget = $129.9 million Reserve Funds 7.1 m Senior Government 6.9 m
Debt Servicing cost is $187.55 per year or $15.63 per month
(For a residential homeowner with a house valued at $214,000)
17
18
Total Obligatory $20.7 million Total City Owned (Excluding Obligatory) $191.8 million
Projected Reserve Fund Balance For Capital Asset Renewal & Replacement = $53 million
Assessment growth funding comes from taxes levied on new homes and businesses.
Requires Services;
services
Generates new tax revenue fund the extension of municipal services
19
Summary of Requests Economic Prosperity Environmental Services Parks, Recreation & Neighbourhood Services Planning & Development Protective Services Transportation Services LTC (26,700 annual service hours & 6 expansion buses, 1 funded through DC) Roadways Corporate, Operational & Council Services Total Requests $2,950 $351 $586 $177 $110 $1,830 $1,094 $379 $7,477 1.0% Projected (December 8, 2014 - SPPC) $4,987 Amount ($000’s) Growth Costs Exceeding Available Funding $2,490 20 2014 Carry Forward $0 1.17% $5,835 $1,642
Set 5 year Strategic plan 2015 2017 2016 2018 2019 Approve 2015 Budget Approve 2016- 2019 Budget
the City and taxes; and
Reconfirm 2019 Budget Annual Update Annual Update Annual Service Reviews 4-5 Services reviewed annually (including zero-based techniques) Are we doing the right things? Are we doing them in the right way?
21