HALDIMAND COUNTY 2017 Tax Supported Operating Budget Committee of - - PowerPoint PPT Presentation

HALDIMAND COUNTY 2017 Tax Supported Operating Budget

Committee of the Whole March 7, 2017

Council Approved Budget Guidelines

2017 Draft Budget

• When establishing/approving the annual budget guidelines, a

four year projection (2015 to 2018) was provided to understand future budget pressures. 2017 guidelines were approved as highlighted below:

• Total Residential Property Tax Impact of 2.50% (would require some

mitigation based on known drivers)

• Use of “assessment growth” and “education room” to offset total tax

impacts

• New Initiatives for new/enhanced services would only be considered

during the budget review if the net levy impact can be mitigated on a consolidated, corporate wide basis. Funding for Council approved New Initiatives would be considered above and beyond the base budget requirements.

• Separate report was presented to Council to review and approve Fees

and Charges (October 2016)

“Unbudgeted Expenditures”

2017 Draft Budget

• Municipal Act provides ability to not budget for specific expenditures:
• Amortization of Capital Assets:
• No specific costs related to annual amortization of County’s assets; does

include “contributions” to Capital replacement Reserves

• County has a multi-year financing plan to address potential funding shortfalls
• Post Employment Benefits:
• Includes WSIB, sick leave payouts and benefit payouts after active

employment

• The County has sufficient budget to accommodate current required sick leave

and benefit payouts (actuarial liability indicates shortfall); draft budget includes increased WSIB contributions to address estimated shortfall

• Solid Waste Landfill Closure and Post-Closure Costs:
• Includes PV of future costs to maintain landfill sites
• Capital and Operating post closure costs have been included in the 2017

budget based on projected annualized costs

Major Drivers 2017

2017 Draft Budget

2017 Levy Impact Increase/(Decrease) $ % Municipal Levy (prior year) 59,616,750 Major Drivers: Base budget adjustments – controllable:

• WSIB Self-insurance increase for PTSD claims & VFF presumptive liability

273,430 0.46%

• Solid Waste Operations – reduced non-residential waste

305,400 0.51%

• Other controllable base cost adjustments

426,430 0.72% Total Base budget adjustments – controllable 1,005,260 1.69% Base budget adjustments – uncontrollable 157,920 0.26% Streetlight Conversion to LED – annualized operational savings (313,100) (0.53%) Ontario Municipal Partnership Fund unconditional grant increase (151,400) (0.26%) Social Assistance Provincial Uploading Net of Caseload #/$ Increase (complete by 2018) (109,500) (0.18%) Capital Levy Increase 596,170 1.00% Council approved staffing adjustments – temp. FTE and/or market wage adjustments 118,380 0.20% Net impact of other Council approved initiatives (pre-2017 budget approval) (160,970) (0.27%) New/Enhanced Service Initiatives 200,940 0.34% Municipal Levy Increase 1,343,700 2.25% Mitigation Measures: Phase out Haldimand Hydro Dividend Impact from 2015 500,000 0.84% OPG Taxation – 3 year phase-in of reduced revenue 293,000 0.49% Revised Municipal Levy Increase 2,136,700 3.58% Draft Municipal Levy 61,753,450 Less: Estimated Assessment Growth (0.90%) Less: Estimated Education Tax Room (0.50%) Total Estimated Residential Tax Rate Impact 2.18%

Assessment & Tax Impacts

2017 Draft Budget

Year 2014 2015 2016 2017 Avg. Tax Impact (%) 2.95 2.79 2.20 2.18 2.53 Assessment Growth ($) 1.26 0.74 1.12 0.91 1.01 Education Tax Room (%) 0.88 0.80 0.44 0.50 0.66

Impact on Average Residential Home

2017 Draft Budget

INCREASE $67 OR 2.18% (APPROX. $5.60/MONTH)

2016 PRO ROPE PERT RTY TAXE XES S $3,08 ,082 ASSE SESSE SED VALUE $241,100 2017 PRO ROPE PERT RTY TAXE XES S $3,150 ,150 ASSE SESSE SED VALUE $245,90 ,900

Other Factors Impacting Property Taxes

2017 Draft Budget

• Impacts on Property Taxes:
• Assessment changes/shifts
• Municipal Levy Requirements
• Education Tax Rates
• Tax Policy Decisions
• Tax Ratios – levy restrictions on multi-residential

properties

• Municipal flexibility over Vacant Unit Rebate

program and reductions for vacant sub-classes

• Amendments to collectors role (i.e. assessment

changes)

2017 Draft Budget

0.3% 0.4% 0.5% 0.7% 0.8% 1.1% 1.1% 1.1% 1.2% 1.2% 1.4% 1.5% 1.6% 2.0% 3.2% 5.2% 5.3% 5.7% 6.8% 8.9% 14.3% 14.6% 21.1%

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 Municipal Drains & Storm Sewers Heritage & Culture Community Development & Partnerships Conservation Authorities Municipal Property Assessment Corp. Roads Engineering & Construction By-law, Animal Control & Crossing Guards Public Health Services Planning & Development Tourism & Economic Development Social Housing Social Assistance & Child Care Libraries Grandview Lodge Ambulance Garbage & Recycling Facilities and Parks Operations Fire Governance/Corporate Support/Financing Police Education Property Taxes Roads Maintenance & Winter Control Capital Levy

Average Residential Tax Bill - Allocation by Services Based on 2017 Draft Tax-Supported Operating Budget

Uncontrollable Controllable