[PPT] - COUNTY OF WELLINGTON 2017 Budget and 2017-2021 Five Year Plan PowerPoint Presentation

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COUNTY OF WELLINGTON 2017 Budget and 2017-2021 Five Year Plan

Presentation to Wellington County Council January 9, 2017

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Agenda

 Part 1: Introduction

 2016 Assessment Update  Effects of Re-Assessment

 Shifts amongst property tax classes  Inter-municipal shifts

 Impact of Gravel Pit Appeals

2 2017 Budget and 2017-2021 Five Year Plan

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Agenda

 Part 2: 2017 Budget and Five-Year Plan

 Overview and 2017 Budget Process  Changes to the five-year plan since November  Capital Financing  Reserves and Reserve Fund Balances & Activity  County Debt Management and Forecast  Capital Budget Details  Operating Budget Forecast  Recap and wrap-up

3 2017 Budget and 2017-2021 Five Year Plan

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Purpose of today’s meeting

 Provide a background of County’s taxes, finances and assessment base  Review 2017 Budget Process  To provide Council with an overview of the 2017 Budget and the 2017-

2021 five-year plan in advance of January Committee meetings

 Opportunity for Council to review and discuss service levels and

proposed capital projects

4 2017 Budget and 2017-2021 Five Year Plan

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2016 Property Assessment Valuation Update

 In Ontario, property assessments are updated every four years

 The 2016 assessment update reflects a valuation date of January 1, 2016  Assessment in effect for the 2017-2020 property tax years

 Impact on property owners

 Increases in assessment will be phased in over a four-year period  Decreases in assessment take place immediately

 Impact on municipalities

 Results in shifts amongst property tax classes  Inter-municipal shifts for share of County taxes

5 2017 Budget and 2017-2021 Five Year Plan

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Unweighted assessment by property tax class: 2017 (Share of Property Values in Wellington)

Effect of Reassessment

2017 Budget and 2017-2021 Five Year Plan 6

Residential (70.29%)

(-1.59%)

Multi-Res (0.70%)

(-0.06%)

Farm & MF (22.08%)

(+2.02%)

Commercial (4.68%)

(-0.10%)

Industrial (2.01%)

(-0.26%)

Pipeline (0.24%)

(-0.01%)

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Weighted assessment by property tax class: 2017 (Share of Property Taxes in Wellington)

Effect of Reassessment

2017 Budget and 2017-2021 Five Year Plan 7

Residential (78.81%)

(-0.03%)

Multi-Res (1.46%)

(-0.10%)

Farm & MF (6.19%)

(+0.69%)

Commercial (7.66%)

(0.00%)

Industrial (5.28%)

(-0.55%)

Pipeline (0.60%)

(-0.01%)

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2017 Budget and 2017-2021 Five Year Plan 8

Puslinch (14.70%)

(-0.66%)

Guelph Eramosa (16.18%)

(+0.05%)

Erin (15.18%)

(-0.18%)

Centre Wellington (28.60%)

(+0.27)

Mapleton (9.78%)

(+0.32%)

Minto (6.01%)

(+0.03)

Wellington North (9.55%)

(+0.17%)

Weighted assessment by Member Municipality: 2017 (Share of County levy)

Effect of Reassessment

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Gravel Pit Appeal Settlements

 The assessment of gravel pits has been under appeal since the 2009 taxation

year

 In 2016, MPAC and the OSSGA came to an agreement to settle legacy appeals

from the 2009 to 2016 taxation years

 Previous assessment methodology

 Active areas of aggregate operations were valued at industrial land rates on a per acre

basis of the total site area – classified and taxed as industrial

 Most County pits were valued between $40,000 - $50,000/acre depending on the size of the pit

 Other areas classified and taxed based on the use of the land (farm or residential)

 New methodology

 Active areas of aggregate operations are now valued at class 5 farmland rates plus “site

preparation costs” to a maximum value of $15,000/acre – classified and taxed as industrial

 Most County pits are now valued at less than $10,000/acre 9 2017 Budget and 2017-2021 Five Year Plan

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Gravel Pit Appeal Settlements

 Results of the settlements has been unprecedented taxation losses to the

County and its member municipalities – Puslinch hit the hardest

 Wellington County municipalities have lost more than $6 million in property tax

write-offs and legal fees as a result of the settlements in 2016

 County share of loss & legal fees is over $3 million

 Weighted assessment losses for 2017 are significant

 County lost 0.51% in weighted assessment – equivalent to $457,045 in annual property

tax revenue

 Puslinch lost 3.03% in weighted assessment – equivalent to $152,065 in local property

tax revenue annually (average residential property to pay $64.43 extra in property tax to cover gravel pit write-offs)

 Will result in equivalent rates of property tax increases to other property tax classes for

the municipality to “break even”

10 2017 Budget and 2017-2021 Five Year Plan

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Summary of Tax Loss For Assessment Cycles: 2009-2012 & 2013-2016 24 Legacy Appeal Properties

11 2017 Budget and 2017-2021 Five Year Plan

County Township Education Puslinch (14)* 2,417,346

$

639,847

$

1,897,356

$

Guelph Eramosa (1) 67,240

$

24,768

$

69,626

$

Erin (4) 257,615

$

103,516

$

198,190

$

Centre Wellington (2) 25,543

$

11,708

$

21,710

$

Minto (2) 19,885

$

16,275

$

17,675

$

Mapleton (1) 1,069

$

567

$

1,049

$

TOTAL 2,788,699

$

796,680

$

2,205,608

$

Legal Fees and Consulting Services 221,484

$

GRAND TOTAL 3,010,182

$

* Includes Capped Properties

$221,484
$6,012,471

386,545,963

$5,790,987

11,109,995 11,775,608 3,322,763

$4,954,548
$161,635
$559,323
$58,961
$53,835
$2,686

271,042,480 21,174,632 68,120,485 Muncipality Revised CVA Overall Tax Loss 482,742,413 25,217,882 97,238,623 Original CVA 13,265,450 13,360,398 3,388,763 635,213,529 Tax Loss Share

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2012 Base Year Valuation: Gravel Pit

12 2017 Budget and 2017-2021 Five Year Plan

Example 1: Puslinch Gravel Pit Property with Industrial, Residential and Exempt

Original Valuation Method – from 2012

Total Land Value 94 acres Apportionment Value (CVA) Tax Class Taxes Paid (2016 Rates) 557,650 $ IT 19,197 $ 915,150 $ RT 9,127 $ 43,200 $ E

$

1,516,000 $ 28,324 $

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2016 Base Year Valuation: Gravel Pit and Single Family Dwelling

13 2017 Budget and 2017-2021 Five Year Plan

Example 1: Gravel Pit - New Valuation Method - 2016

Total Land Apportionment Value (CVA) Tax Class Taxes Paid (2016 Rates) Industrial 13 acres 119,795 $ 134,600 $ IT 4,634 $ Residential 41 acres 377,815 $ 417,100 $ RT 4,160 $ Farm 16 acres (class 1)* 242,096 $ 281,500 $ RT 2,808 $ Farm 24 acres 57,792 $ 57,800 $ E

$

Total Land Value 94 acres 797,498 $ 891,000 $ 11,601 $ *OMAFRA to advise on farm tenant $9,215/acre $9,215/acre $15131/acre n/a $2,408/acre $5,000/acre $5,000/acre n/a $4,215/acre $4,215/acre Licensing/Preparation Costs Class 5 Farm Land Total Land Rate

Actual Area 1.09 acres Apportionment Value (CVA) Tax Class Taxes Paid (2016 Rates) 2667 Square feet 1,183,000 $ RT 11,799 $ 3 bedrooms 2 1/2 baths 1,183,000 $ 11,799 $ Central Air Fireplace Outdoor Pool Attached Garage 2009 Property Details Other Structures Year Built

Example 2: Puslinch Single Family Detached

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Agenda

 Part 2: 2017 Budget and Five-Year Plan

 Overview and 2017 Budget Process  Changes to the five-year plan since November  Capital Financing  Reserves and Reserve Fund Balances & Activity  County Debt Management and Forecast  Capital Budget Details  Operating Budget Forecast  Recap and wrap-up

14 2017 Budget and 2017-2021 Five Year Plan

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2017 Budget Process

 January 9, 2017 presentation to Council  Budget reviews at Committee and Board meetings next two weeks  Full budget package circulated to Council by January 13  AF&HR review of budget on January 17  AF&HR recommendations considered by Council on January 26, 2017

15 2017 Budget and 2017-2021 Five Year Plan

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5-Year Plan Outlook in November

2017 Budget and 2017-2021 Five Year Plan 16

 5-Year Plan projected a 3.4% budget increase for 2017  Increases from 3.9% to 4.8% in 2018-2021

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Changes to the 5-year plan

 Reduced OMPF grant – 2017 allocation is $368K lower than 2016 (levy

increase of 0.4%)

 Assessment growth finalized at 1.24% - 0.65% higher than estimated in

November (levy reduction of 0.65%)

 Roads field staff reallocated $200,000 net salaries and benefits to

perating from capital (levy increase of 0.2%)

 A number of other smaller changes

17 2017 Budget and 2017-2021 Five Year Plan

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Highlights of the revised 5 year plan

 Projected tax increase of 3.3% in 2017 and a range of 3.8% to 4.4% from

2018-2021

 Estimated 2017 operating expenditures and transfers of $200.4 million  $163.4 million capital investment over 5 years

 $31.6 million in 2017

 $22.3 million in new debt issues over 5 years

18 2017 Budget and 2017-2021 Five Year Plan

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2017-2021 Capital Financing

2017 Budget and 2017-2021 Five Year Plan 19 Recoveries, 9.9% Subsidy, 7.0% Current Revenues, 36.5% Reserves, 19.7% Federal Gas Tax, 8.6% Development Charges, 4.6% Debentures, 13.6%

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2017-2021 Capital Budget Highlights

2017 Budget and 2017-2021 Five Year Plan 20

 56.2% of capital spending will be funded from tax levy and reserves  $25.6 million -15.6% funded through Federal and Provincial subsidies

 $14.1 million in Federal Gas Tax  $7.5 million in OCIF (2020 and 2021 forecasted)  $3.9 million in Housing (SHIP and Affordable Housing)

 $22.3 million - 13.6% to be funded through Debt

 $18.8 million tax supported  $3.5 million recovered from development charges

 $7.6 million – 4.6% funded by Development Charges

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Reserves and Reserve Fund Balances

 County’s reserve and reserve fund balances totaled $70.6 million as of

December 31, 2015

 Reserves: $56.6 million  Reserve Funds: $14 million (more restrictive in use)

 Reserve and Reserve Fund balances currently sit at $61.8 million in draft

form

 Interest earnings still to be allocated  Capital projects still to be closed  Winter control variance still to be funded  Projected surplus still to be allocated

21 2017 Budget and 2017-2021 Five Year Plan

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Reserves and Reserve Fund Activity

 2016 surplus projection: $350K to $1.3 million

 T

be transferred to reserves

 2017 Budgeted Transfers to/from Reserves

 Transfers in: $12.2 million (includes interest earnings)  Transfers out:

 Capital: $8.8 million  Operating: $1.5 million

 Net budgeted impact to reserves in 2017: increase of $1.9 million

 Includes a $1.5 million payback from Roads capital draw in 2016

22 2017 Budget and 2017-2021 Five Year Plan

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23 2017 Budget and 2017-2021 Five Year Plan

84.0% 72.6% 72.1% 73.7% 75.2% 77.0% 79.2% 50% 55% 60% 65% 70% 75% 80% 85% 90% 2015 2016 2017 2018 2019 2020 2021

Reserves and Reserve Funds as % of Levy

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24 2017 Budget and 2017-2021 Five Year Plan 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% Wellington North Puslinch Mapleton Centre Wellington Wellington County Minto Erin Guelph Eramosa

Tax Discretionary Reserves (less WWW) as a % of Taxation

County and Member Municipalities

2015 2014 Wellington County

Source: 2016 BMA Municipal Study

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Projected long term borrowing

2017 Budget and 2017-2021 Five Year Plan 25

 $22.3 million in new debt to be issued over the next five years:

 Hillsburgh Library Construction - $2.0 million (2017)  Hospital Capital Grants - $6.7 million (2019)  Roads Related Projects - $10.2 million

 Bridge Construction - $4.7 million (2020 & 2021)

 Bosworth, Penfold and Conestogo River Bridges

 Erin Garage Construction $2.0 million (2020)  Roads Growth Related Debt - $3.5 million (2018 & 2019)

 WR 124 Passing Lane & Bridge widening

 Riverstown Landfill - Compliance Mitigation $3.4 million (2020 & 2021)

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26 2017 Budget and 2017-2021 Five Year Plan

$0 $5 $10 $15 $20 $25 $30 $35 $40 2016 2017 2018 2019 2020 2021

County of Wellington Debt Outstanding 2016-2021 ($ Million)

Tax Supported Debt DC Supported Debt

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27 2017 Budget and 2017-2021 Five Year Plan

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% Puslinch Erin Wellington County Guelph Eramosa Wellington North Mapleton Minto Centre Wellington

Debt Outstanding per Own Source Revenues

County and Member Municipalities

2015 2014 Wellington County

Source: 2016 BMA Municipal Study

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28 2017 Budget and 2017-2021 Five Year Plan

$- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2016 2017 2018 2019 2020 2021

County of Wellington Debt Servicing Charges 2016 - 2021 ($ Millions)

Total Debt Servicing Tax supported DC supported

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29 2017 Budget and 2017-2021 Five Year Plan

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Centre Wellington Puslinch Wellington County Erin Mapleton Guelph Eramosa Minto Wellington North

Tax Debt Charges as % of Own Source Revenue

County and Member Municipalities

2015 2014 Wellington County

Source: 2016 BMA Municipal Study

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30 2017 Budget and 2017-2021 Five Year Plan

0% 10% 20% 30% 40% 50% 60% 70% 80% 2015 2016 2017 2018 2019 2020 2021

Debt to Reserve Ratio

County Policy (maximum) County Forecast

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31 2017 Budget and 2017-2021 Five Year Plan

0.0 0.2 0.4 0.6 0.8 1.0 1.2 Puslinch Wellington County Wellington North Erin Mapleton Minto Guelph Eramosa Centre Wellington

Debt to Reserve Ratio

County and Member Municipalities

2015 2014 Wellington County

Source: 2016 BMA Municipal Study

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32 2017 Budget and 2017-2021 Five Year Plan

Source: 2016 BMA Municipal Study

$(200) $- $200 $400 $600 $800 $1,000 $1,200 Wellington North Centre Wellington Puslinch Mapleton Wellington County Erin Minto Guelph Eramosa

Financial Position per Capita

County and Member Municipalities

2015 2014

Wellington County

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Debt summary

 Debt outstanding will top out at $33.7 million

 $29.0 million tax supported, $4.7 million DC supported

 Debt servicing costs will top out at $5.8 million

 $4.9 million tax supported, $860K DC supported

 Debt servicing costs as a % of the county tax levy does not exceed 5.5% over

the 5-year plan

 Greater reliance on debt due to increasing infrastructure requirements  County’s debt levels are maintained, but debt servicing costs are climbing in

later years of the 5-year plan

33 2017 Budget and 2017-2021 Five Year Plan

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2017-2021 Capital Expenditures

2017 Budget and 2017-2021 Five Year Plan 34

Other includes:: Planning, Emergency Management, Green Legacy, Property, Police, Museum, Wellington Terrace, Economic Development and Provincial Offences. Roadways 68.3% Solid Waste Services 4.1% CAO & Clerks 1.2% County Library System 2.9% Social Services (Housing, Child Care, Ontario Works) 13.9% Hospital and Other Capital Grants 5.2% Ambulance Service 1.3% Other 3.2%

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5 Year Capital Plan Highlights

 Investment in County roads network  Rebuild Erin and Arthur Garages  Hillsburgh Library construction  Hospital Grants  Social and Affordable Housing Capital Improvements

 Continued investment in 1,189 owned social housing units  Palmerston Affordable Housing new construction 11 units

35 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Roads

 Investment in County roads network including bridges and culverts

 $95.6 million investment over 5 years including:

 $40.3 million in roads construction projects  $35.7 million in bridges and culverts  $19.4 million in resurfacing projects

 $14.1 million funded from Federal Gas Tax  $7.5 million funded from Ontario Community Infrastructure funding (OCIF)

 $10 million in roads equipment funded from reserves  An additional $4.8 million is proposed for the rebuild of the Erin garage

ver 2018 and 2020 funded from reserves, development charges and

debenture issue

 Design for the rebuild of Arthur shop in 2020

36 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Roads

Challenges Ahead

 Bridge and Culvert Needs Study identified 22 bridges and 10 culverts requiring

replacement at a cost of $70.9 million over the next ten years

 Five-Year Plan as presented addresses 18 of the 32 required replacements at 55% of the

$70.9 million

 Replacement of Roads Garages

 6 out of 8 garages remaining need replacement

 Erin and Arthur identified in the five-year plan  Brucedale, Harriston, Aberfoyle and Elora up next

 Current cost estimate of $5 million per shop  Potential for remediation of land

 Roads infrastructure needs are the driving force behind the County’s tax levy

requirements – represents 82% of the projected levy increase in 2017

37 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Solid Waste Services

 $4.8 million in improvements at active landfill sites and transfer stations

 Compliance Mitigation Measures at Riverstown in 2020-21 ($3.4 million)  Final cell development in Phase I at Riverstown in 2017

 Phase I has remaining capacity to 2023

 Beginning cell development in Phase II of Riverstown in 2018 and 2021

 Phase II expected to open in 2022 – has capacity to 2044

 Waste management strategy continues through to 2018

 $1.9 million in equipment over 5 years

38 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Library

 Hillsburgh Branch

 Remaining funding for new branch construction in 2017 at $3.8 million ($4.8

million total)

 Funded $1.8 million from the Property Reserve and $2.0 million from debt

 New branch signage at the library site in 2017 and on Main Street in 2018

 Palmerston Branch

 Purchase of land and construction of a parking lot in 2017 and 2018 ($150,000

each year)

39 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Hospital Grants

 Total of $14.4 million in commitments for Hospital Capital Grants in

Wellington

 $10.0 million for Groves Memorial Community Hospital  $2.2 million for Louise Marshall Hospital in Mt Forest  $2.2 million for Palmerston and District Hospital

 $8.5 million of commitment remains to be transferred  $6.7 million to be debt financed with remaining funding to come from the

Hospital Capital Grant Reserve

40 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Museum and Wellington Terrace

 Wellington Place investment to include:

 Installation of way-finding signage in 2019  Resurfacing of the driveway and parking lot in 2020

 Upgrades to the Museum and outbuildings

 Additional budget for kitchen and washroom renovations in 2017  Farm House Archeological dig over 2019-2020

 Wellington Terrace projects for lifecycle replacements of equipment and

building components total $1.2 million over the five years

41 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Social Housing

 $15 million investment in the County’s 1189 Social Housing units for

improvements and upgrades

 Cost shared with City of Guelph (currently 75.3%)

 Social Housing Improvement Programme (SHIP)

 Provincially funded programme in 2017 and 2018 totalling $2.4 million to be

allocated to social housing providers based on need

 Wellington Housing Corporation

 Assumed ownership of the property located at 440 King Street in Mount Forest

as of January 1, 2017

 Capital budget includes building retrofit projects totalling $682,000 over the

forecast

42 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Affordable Housing

 Palmerston Affordable Housing new build:

 11 new affordable housing units to be built on the former Palmerston OPP site.  $1.5 million in Provincial subsidy  $1.7 million from Housing Development and Housing Capital Reserve

 County owned Affordable Housing Buildings:

 Three sites (Fergusson Place, Webster Place and 182 George St in Arthur)  Retrofit projects for each building totaling $370,000 over the forecast  Funded by Housing Capital Reserve

43 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Ontario Works

 Ontario Works:

 Renovation of the third floor of 129 Wyndham Street in 2018

 Convert existing apartments to office space to move towards integrated intake

and consolidation of social services in downtown Guelph

 Provision for $1 million to be cost shared with the City of Guelph

 Capital retrofits and lifecycle replacements at 129 Wyndham and the Fergus

Office over the five-year plan

44 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: County Property

 Renovations to downtown administration buildings to accommodate

ffice relocations due to capacity issues

 Lower levels of the Gaol and Admin Centre, 15 and 21 Douglas  Involves staff movement in Child Care, IT, Treasury, and Human Resources  Estimated at $750,000 to be funded from the Property Reserve

 County space needs study in 2017  Various interior and exterior improvements/repairs to County

Administration buildings ($310K over 5 years)

45 2017 Budget and 2017-2021 Five Year Plan

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Capital Plan: Services provided by the City of Guelph

 Ambulance Service

 Ambulances and related equipment - $2.1 million over 5 years (County share)  County contributes approximately 40% of cost  Funded through reserve transfer in Ambulance operating budget

 Provincial Offences Act (POA)

 POA replacements through the forecast - County share is $120K  County contributes approximately 50% of capital costs  Funded from the tax levy

46 2017 Budget and 2017-2021 Five Year Plan

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Operating Budget Forecast

 $200.4 million in expenditures and transfers in 2017  Forecast to grow to $228.9 million by 2021

 Average Annual Increase of 3.7% over 5 years

 Totals over $1.1 billion in projected spending over 5 years  In 2017 -1% tax increase/decrease = $889,400  2017 Assessment growth = 1.24%

47 2017 Budget and 2017-2021 Five Year Plan

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Operating Budget By Department

48 2017 Budget and 2017-2021 Five Year Plan Social Services 40% Roads 14% Police 9% Terrace 11% Solid Waste 5% Admin 7% Health / Ambulance 3% Library 4% Planning/Green Legacy/ Emergency Mgt 2% Museum 1% Other 4%

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Levy Requirement By Department

49 2017 Budget and 2017-2021 Five Year Plan Social Services 9% Roads 28% Police 18% Terrace 9% Solid Waste 6% Admin 8% Health / Ambulance 7% Library 7% Planning /Green Legacy/ Emergency Mgt 4% Museum 2% Other 2%

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Operating Budget: Hydro Costs

 Hydro costs are up nearly 9% in 2016  Budget for hydro has increased fairly significantly in 2017 ($422,400)  Adjustments have been made in the following areas:

 Social Housing Units $105,000  Property Buildings $107,000  Roads garages and street lighting $65,000  Police Detachments $54,000  Library Branches $39,000

50 2017 Budget and 2017-2021 Five Year Plan

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Operating Budget: Engineering

 Roads:

 Winter control budget of $5.3 million in 2017, increase of $350,000 to sand,

salt and deicer expense based on amounts required in 2016

 Reallocation of construction staff through operating (less work projected on

capital projects by County staff) with a budget impact of $200,000

 Increases to numerous budget line items based on 2016 expenditures:

 $100,000 to fleet maintenance for parts and fuel  $50,000 for GPS operating costs on County snowplows

 $50,000 for route seal under minor capital

51 2017 Budget and 2017-2021 Five Year Plan

SLIDE 52

Operating Budget: Engineering

 Solid Waste:

 Full year expanded rural curbside collection

 Additional collection contract cost budgeted at $894,000  Offset by increased revenue related to user pay bag change  Net impact to the County budget expected to be a savings of $32,000 in 2017.

 Full year of the new mobile Household Hazardous Waste (HHW) service

 Annualization of technician added in 2016, increased costs related to the unit  Partially offset by increased HHW funding

52 2017 Budget and 2017-2021 Five Year Plan

SLIDE 53

Operating Budget: Police

 The 2017 contract estimate is $16,002,700 and represents an increase of

$305,100 from the 2016 contract

 1,000 Officers and Community Policing Partnership grant end as of March

2017

 Safe Communities – Wellington grant ($25,000)  Reduction in projected parking fine and false alarm revenue ($25,000)

53 2017 Budget and 2017-2021 Five Year Plan

SLIDE 54

Operating Budget: Police

 5 year forecast includes projected contract amounts and 1 new officer

each year beginning in 2020

 A reserve transfer in lieu of a new officer begins in 2017

54 2017 Budget and 2017-2021 Five Year Plan 2016 budget 2017 estimate 2018 estimate 2019 estimate 2020 estimate 2021 estimate 2017/16 change OPP Base Contract $15,697,600 $16,002,700 $16,812,700 $17,663,800 $18,558,100 $19,497,600 1.94% 1 new officer cost $0 $0 $0 $0 $183,000 $375,100 OPP Contract with 1 new Officer $15,697,600 $16,002,700 $16,812,700 $17,663,800 $18,741,100 $19,872,700 1.94% OPP Reserve Transfer in lieu of new officer $0 $169,900 $348,300 $535,500 $548,900 $562,600 One new Officer Cost/Reserve Transfer

$169,900

$348,300 $535,500 $731,900 $937,700

SLIDE 55

Operating Budget: Planning

2017 Budget and 2017-2021 Five Year Plan 55

 Local Trail grant programme for member municipalities continues in 2017

with funding available out of the Local Trails Grant reserve.

 The Provincial Policy Statement requires municipalities to identify a

Natural Heritage System. A provision of $60,000 is included in the 2017 budget to address this requirement.

 Additional hours identified for the Junior Planner to bring the position to

full-time

SLIDE 56

Social Services

2017 Budget and 2017-2021 Five Year Plan 56

 Ontario Works, Children’s Early

Years and Housing

 2017 budget highlights

 Expansion of rural transportation programme  Provincial uploading of OW caseload costs  Occupancy at Webster Place Affordable Housing for July 2017  Wellington Housing Corporation operating the former Mount Forest Non Profit

Housing buildings

SLIDE 57

Operating Forecast: Ontario Works

2017 Budget and 2017-2021 Five Year Plan 57

 Expansion of the rural transportation programme for low income

individuals to make medical, social services and related appointments

 Projected savings resulting from the OW upload are $521,000 ($413,000

City, $108,000 County) – municipal share now at 2.8%

 OW benefit costs reflect a 2.5% caseload increase over 2016 projected actuals as

well as a 2% rate increase for both the City and County

 Staffing changes:

 Removal of 2 full-time Caseworker positions contracted in 2016 to assist with

SAMS pressures

SLIDE 58

Operating Forecast: Social Housing

2017 Budget and 2017-2021 Five Year Plan 58

 Wellington Housing Corporation

 Assumed ownership of the property located at 440 King Street in Mount Forest

as of January 1, 2017

 Budget includes annual subsidy for the operations of this project and reserve

contribution to meet future capital requirements

 Offset by a reduction to the non-profit subsidies line

 Staffing Changes:

 Addition of a full time Homelessness System Coordinator.

 Offset by additional provincial CHPI funding in 2017

SLIDE 59

Operating Forecast: Affordable Housing

2017 Budget and 2017-2021 Five Year Plan 59

 Operating budget for Webster Place assumes occupancy in July 2017

 Project is mortgage-free, so should operate at a small surplus which will be used

to refund the Housing Development Reserve for use on future Affordable Housing opportunities

 Operating budget for new Palmerston Affordable Housing building

assumes occupancy in January 2018

 Project is expected to operate close to break-even

 Staffing changes:

 Addition of a full time Custodian, starting in July, to be cost shared between

Fergusson Place and Webster Place

 Largely offset by reduction in cleaning contract

SLIDE 60

Operating Budget: Wellington Terrace

 Staffing changes include:

 Behavioural Support programme staffing to support residents with dementia.

 Increased RPN and PSW hours are fully offset by provincial grant revenue

 Increased PSW hours to support the rising level of care for residents (includes

additional shifts at dinner and bedtime)

 Additional backfill hours for Housekeeping

 Revenue incorporates the 2017 per diem changes as well as the County’s

updated case mix index (from 2016).

 Resulting revenue increase is expected to be $180,000

60 2017 Budget and 2017-2021 Five Year Plan

SLIDE 61

Operating Budget: Library and Museum

 Library:

 Interactive multimedia programmes across library locations in 2017 funded

from provincial grants for the Rural Hotspot Lending Programme and the Ministry of Tourism, Culture and Sport

 Staffing Changes:

A new part-time Branch Supervisor at the Puslinch location
Additional hours at Elora, Mt Forest and Palmerston locations

 Museum:

 Planned events to celebrate Canada’s 150th anniversary  Hockey Hall of Fame exhibit

61 2017 Budget and 2017-2021 Five Year Plan

SLIDE 62

Operating Budget: Ambulance

 Response time improvement plan:

 Approved by the City of Guelph in its 2017 budget  Includes four additional Paramedics to service the T

wn of Erin

 Enables a 24-hour operation at this location (up from 12 hrs/day)  Results in an impact of $225,000 to the County budget in 2017  Provincial funding of 50% will kick in 2018 – reducing the net budget impact next

year

 The County funds roughly 40% of the municipal share of Land Ambulance

expenditures (based on calls for service) – levy requirement of $3.7M in 2017

62 2017 Budget and 2017-2021 Five Year Plan

SLIDE 63

Operating Budget: Administration

Treasury

 Implementation of the Assessment Base Management Policy and Programme

 Addition of a new Accounting Analyst – Property Taxes  Additional consulting fees

Human Resources

 The addition of an HR clerk to assist with payroll, pension and benefits, and

corporate training

63 2017 Budget and 2017-2021 Five Year Plan

SLIDE 64

Operating Budget: General Rev and Exp.

 General Revenues:

 OMPF Funding - $2.1 million  Interest earnings - $2.98 million  PIL’s and supplementary taxes - $1.55 million

 General Expenses:

 Contribution to MPAC for property assessment - $1.4 million  Tax write-offs - $1.0 million

64 2017 Budget and 2017-2021 Five Year Plan

SLIDE 65

Operating Budget: OMPF

 County’s OMPF allocation was $4.7 million in 2012  Province announced a phase-down of OMPF funding to 2016  County’s 2017 OMPF allocation dropped an additional 15%

 Allocation is now under $2.1 million  Lost $368,300 in 2017 (0.4% impact on tax levy)

 New funding formula no longer targets upper-tier municipalities

 County’s funding is under “transitional” allocation

 Forecast assumes further 15% OMPF funding drops in each of 2018-2021  County’s OMPF funding projected at less than $1.1 million by 2021

 Represents a drop in annual funding of $3.6 million

65 2017 Budget and 2017-2021 Five Year Plan

SLIDE 66

Operating Budget: OMPF

66 2017 Budget and 2017-2021 Five Year Plan Total OMPF Entitlements 2012 2013 2014 2015 2016 2017 Puslinch $ 447,800 $ 404,000 $ 402,700 $ 404,600 $ 405,400 $ 370,200 Guelph Eramosa $ 579,700 $ 521,800 $ 443,800 $ 442,400 $ 469,400 $ 497,000 Erin $ 654,000 $ 588,600 $ 585,800 $ 588,000 $ 595,300 $ 590,100 Centre Wellington $ 999,700 $ 899,800 $ 764,900 $ 612,000 $ 520,200 $ 442,200 Wellington North $ 1,088,600 $ 1,042,900 $ 1,066,100 $ 1,088,700 $ 1,176,200 $ 1,379,700 Mapleton $ 1,321,800 $ 1,235,900 $ 1,050,600 $ 840,500 $ 714,500 $ 735,500 Minto $ 1,354,300 $ 1,306,900 $ 1,491,400 $ 1,532,500 $ 1,680,700 $ 1,802,900 County of Wellington $ 4,720,200 $ 4,248,200 $ 3,611,000 $ 2,888,800 $ 2,455,500 $ 2,087,200 Total County $ 11,166,100 $ 10,248,100 $ 9,416,300 $ 8,397,500 $ 8,017,200 $ 7,904,800

 New funding formula results in shifts amongst County and its member

municipalities

 Overall, OMPF funding has dropped by $3.26 million in Wellington municipalities

since 2012

 County has lost $2.63 million (80.7%) of this amount

SLIDE 67

Operating Budget: Staffing Changes

67 2017 Budget and 2017-2021 Five Year Plan

2017 Staffing Summary 2016 Approved staff complement (expressed as full time equivalents 630.0 Annualization of positions approved in the 2016 budget 2.1 Adjusted 2016 staff complement 632.1 2017 Budget Changes FTE Gross Cost (Sal & Ben.) Other Funding / Savings Net County Cost

Terrace: additional PSW hours, RPN hours, Terrace Aide hours, ESW

Hours 4.5 288,000 (112,000) 176,000 Human Resources: new HR Clerk 1.0 61,500 (18,000) 43,500 Treasury: new Accounting Analyst - Property Taxes 1.0 95,100 (7,500) 87,600 Economic Development: Talent Attraction Coordinator (contract) 0.2 65,000 (63,500) 1,500 Housing: new Homelessness System Co-ordinator, new Custodian (July 1st start date) 1.3 107,600 (104,600) 3,000 Library: new Branch Supervisor Puslinch, additional ABS hours Mt. Forest, additional page hours Elora 1.1 78,100 78,100 Planning: Additional hours for Junior Planner to bring to FT 0.2 13,000 13,000 Ontario Works: Two temp Caseworkers 2016, removed

2.0

(181,400) 164,300 (17,100) Proposed changes to Staff Complement 7.3 526,900 $ (141,300) $ 385,600 $ 2017 Proposed Staff Complement (full time equivalents) 639.4

SLIDE 68

2017 Operating Budget Summary

 Weighted assessment loss on gravel pit write-offs (0.5% on tax levy)  OMPF funding reductions (0.4% impact on tax levy)  Impact of hydro cost increases  Significant pressure on Roads budget

 Infrastructure and capital funding requirements  Winter control cost increases  Impacts on fleet and maintenance

 Ambulance Response Time Improvement Plan  Current tax impact at 3.3% (would be 2.8% without gravel pit losses)

68 2017 Budget and 2017-2021 Five Year Plan

SLIDE 69

County of Wellington County tax impact (2013-2021)

69 2017 Budget and 2017-2021 Five Year Plan