DUFFERIN COUNTY 2019 BUDGET PRESENTATION 2 We Manage Change, We - - PowerPoint PPT Presentation

DUFFERIN COUNTY 2019 BUDGET

PRESENTATION 2

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

AGENDA

• Review Possible Budget Changes
• Council to determine their desired

final 2019 end-result

• in terms of 2019 alone
• taking the longer-term into

consideration

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Some Perspective

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Changing net 2019 Budget by 1.0% requires $370,880

• data from January presentation:
• 1.4%, $545,000 of the Operations amount is from items approved in

2018

• Indicates most focus needs to be on Capital Levy

NET TAX LEVY Adopted 2018 Draft 2019 difference

Initial Position $37,089,000 $39,669,000 $ 2,580,000 6.96% Operations $29,348,000 $30,433,000 $ 1,085,000 Capital Levy $ 7,741,000 $ 9,236,000 $ 1,495,000

Some Perspective

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

• Data from January presentation:
• Draft budget increase

6.96%

• Assessment Growth

1.90%

• Draft Taxpayer increase

5.06% = $18.65 per 100K CVA

Some Perspective

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Some changes being presented now were discussed at Committees, plus some new changes are being proposed tonight. Changes are grouped

• n the next slides based on the nature of the change:

I.

Refinements of estimates, after more in-depth review of historical results

II.

Changes that are based on consideration of “Organizational Capacity”, a concept that was discussed at Committees

III.

Changes that are based on the nature of specific 2019 capital projects

PROPOSED CHANGES A

2019 DRAFT (see page 11)

Changes based on review of recent historical results, refined estimates

2019 DRAFT (as amended)

Change Amount

• 45,079,000

Non-Tax Revenues

• 100,000

#1 revise Treasury Dep’t revenue estimates

• 45,179,000
• 100,000

88,518,000 Total Expenses

• 200,000

#2 reduce Employee Benefits estimates

• 200,000
• 35,000

#3 reduce some Legal Fees estimates

88,283,000

• 35,000
• 3,770,000

Reserves and Other Transfers

• 35,000

#4 apply Reserve to Climate Change section

• 3,805,000
• 35,000

Subtotal Tax Levy 2019 39,299,000

5.96%

Increase after Growth = Taxpayer Impact = 4.06% = $14.92 per $100,000 CVA

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Changes 2019 1%=$370,880

The next set of Proposed Changes come from giving some consideration to the problem of “Organizational Capacity”. CAPITAL TAX LEVY : 2017 = $6.814 M, 2018 = $7.741 M DRAFT 2019 = $9.236 M (increase of $1.5 M)

Throughout the 2019 Budget package, in many Capital Asset Fund tables, the Total Capital Work section shows 2018 Actual below 2018 Budget. AND FURTHER, in Work Plan Summary tables, there are multiple examples of Footnotes that say “work postponed”. This indicates the capacity of the County, as an organization, to accomplish all the approved capital projects, has been stretched to its limits, and beyond. For 2019, a more realistic target for capital projects is required, taking into consideration a more reasonable expectation of capacity to do the work.

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

PROPOSED CHANGES B

2019 DRAFT (as amended)

2019 Changes based on review

• f “Organizational Capacity”

Page Ref. 2019 DRAFT (as amended)

Change Amount

• 45,179,000

Non-Tax Revenues

• 45,179,000

88,283,000 Total Expenses

• 100,000

#5 reduce Capital Levy for Oaks 128

• 100,000
• 250,000

#6 reduce Housing Capital Levy 115

• 250,000
• 50,000

#7 reduce JH Daycare Capital Levy 120

• 50,000
• 30,000

#8 reduce Info-Tech. Capital Levy 45

• 30,000
• 170,000

#9 reduce PW Capital Levy 82-85

87,683,000

• 170,000
• 3,805,000

Reserves and Other Transfers

• 3,805,000

Subtotal Tax Levy 2019 $38,699,000

4.34%

Increase after Growth = Taxpayer Impact = 2.44% = $ 9.09 per $100,000 CVA

We manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Changes 2019 1%=$370,880

• After Changes #1 – 9, Draft 2019 Budget is at a

2.44% Taxpayer Impact (= $9.09 per 100,000 CVA)

• There are some optional further changes to

consider :

• Adjust Salary Grid Market Review to 55th (not 50th)
• percentile. This change will increase the 2019 Budget.
• Use Reserves (Rate Stabiliz.) to partially finance the

$800K Courthouse Chimney (CC) project. REASON CC is a one-time expense, resulting in an unusually high Capital Levy for Facilities in 2019 (pages 91, 92) Precise amount to take from Reserve for CC is optional.

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

PROPOSED CHANGES C

2019 DRAFT (as amended)

2019 Changes - Other

Page Ref. 2019 DRAFT (as amended)

Change Amount

• 45,179,000

Non-Tax Revenues

• 45,179,000

87,683,000 Total Expenses 100,000

#10 Amend Salary Adj. to 55th percentile

22, 27

87,783,000

100,000

• 3,805,000

Reserves and Other Transfers

• 300,000

#11 Use RSR to finance CC project, in part 91, 92

• 4,105,000
• 300,000

Subtotal Tax Levy 2019 38,499,000

3.80%

Before Growth

2019 Increase after Growth = Taxpayer Impact = 1.90% = $7.08 per $100,000 CVA

We manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

PROPOSED CHANGES C

2019 DRAFT (as amended)

2019 Changes - Other

Page Ref. 2019 DRAFT (as amended)

Change Amount

• 45,179,000

Non-Tax Revenues

• 45,179,000

87,683,000 Total Expenses 100,000

#10 Amend Salary Adj. to 55th percentile

22, 27

87,783,000

100,000

• 3,805,000

Reserves and Other Transfers

• 400,000

#11 Use RSR to finance CC project, in part 91, 92

• 4,105,000
• 400,000

Subtotal Tax Levy 2019 38,399,000

3.55%

Before Growth

2019 Increase after Growth = Taxpayer Impact = 1.65% = $6.05 per 100,000 CVA

We manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Longer Term View

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

 IF the 2019 net Tax Levy is set at $38,499,000

take note that:

 Per page 11 of the Budget materials,

• Levy for 2020 showing as $41,454,000 (7.7% higher)
• Levy for 2021 showing as $42,378,000
• Levy for 2022 showing as $43,316,000
• Future numbers will be re-evaluated based on 2019 results
• Circumstances will change by the time these budgets come
• up. As news comes in from Province, staff reports will be

brought to Council regarding County’s options to respond

Questions & Comments

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Concluding Points

• As figures on page 14 indicate, the County’s

Capital Levy ought to reach a “Goal” of about $10 million from taxes per year, eventually, to address its Infrastructure Gap. Additional progress continues in 2019, maintaining the momentum from 2016, 2017, 2018

• This 2019 Budget still leaves substantial

amounts in Reserves (see page 8) to protect the County against anticipated revenue losses coming from the Province, and/or from an economic downturn

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions

Questions/Discussions

• Recommended Motion
• Changes #1-11, as presented

herein, be adopted

• AND THAT staff be directed to

prepare the Estimates Bylaw, for March Council, with the Dufferin County Tax Levy for 2019 set at $38.499 million.

We Manage Change, We Deliver Quality Service, We Communicate, We Make Good Decisions