March 11, 2014 County Council Chambers
Agenda A look back… 1998 – 2014 Definitions 2014 Overview Budget Process Budget Summary Budget Exclusions Departmental Budgets Reserves and Reserve Funds Tangible Capital Assets Third ‐ Party Budgets
County of Middlesex 1998 and estimated 2014 Tax Levy in 1998 Dollars (4.3% decrease) 20,335,074 25,000,000 19,457,095 20,000,000 15,000,000 Tax Levy 10,000,000 5,000,000 0 1998 2014 Years
County of Middlesex 1998 and estimated 2014 Tax Levy (30.5% decrease) 0.00555153 0.0060000 0.00386042 0.0050000 0.0040000 Tax Rate 0.0030000 0.0020000 0.0010000 0.0000000 1998 2014 Years
Residential Tax Rate Comparisons 2013 County of Middlesex .00386 Wellington County .00664 Elgin County .00591 Huron County .00555 Lambton County .00456 Oxford County .00408
Levy / Tax Rate / Real Growth Levy A levy increase is an increase in the amount of money that the municipality requires from the community’s tax payers in a given year Tax Rate A tax rate increase is impacted by the growth in assessment Assessment growth does not always relate to new development that is available to share the cost associated with funding the levy
Definitions Real Growth Real growth is an estimate provided by Municipal Property Assessment Corporation (MPAC) of the new construction and development in the community that is available to help pay the cost of the levy We utilize the real growth number and the levy to determine increases or decreases in our costs
Definitions continued Reassessment Growth In 2012 a reassessment of all properties in Ontario took place. Any increased assessment will be phased in over four years (2013 – 2016), any decrease in assessment is allocated in the first year (2013).
Budget Committee The budget committee was established by County Council to review in detail the departmental budgets and develop an overall budget philosophy Warden Vanderheyden Deputy Warden Richards Councillors Reycraft and Meyer This committee uses a modified zero ‐ based budget process to ensure that every dollar expended is appropriate
Budgeting Philosophy Eliminate non ‐ essential budget increases Examine current expenditures to determine whether they remain relevant in 2014 Eliminate expenditures that are not consistent with council policies Limit expenditure increases Without dramatically impacting reserve levels Continue to fund the PSAB process
Municipal County Expenditures 27,557,866 19,018,384 12,733,892 10,857,864 3,855,976 3,522,470 683,376 1,375,256 1,160,961 989,535 391,223 10,000
2014 Net Taxation Requirement 15,657,372 5,360,290 3,281,289 2,065,646 1,687,904 1,696,147 1,160,961 429,959 391,223 784,209 757,000 10,000
2014 Levy The County levy for 2014 is up 5.9% or $1,730,784 The County in 2013 had real growth of $403,653 or 1.4% when tax ratios are applied The County had reassessment increase of $1,327,131 or 4.5% Inflation for 2013 is 0.9% The tax rates stayed the same from 2013
Major Budget Impacts Increase in Provincial Uploading of Social Programs Library rent changes to reflect new comprehensive facilities 2013 Surplus included in the 2014 budget $500,000 OMPF decrease of $252,700
2014 Budget Changes Audit fee reduction ($3,500) Reduce non union additional benefits ($5,728) Economic Development reduction ($400,000) Digital Outdoor Connection eliminated ($57,960) Hydro for 400 signage $2,500 Economic Development Operations $2,500 Economic Development Scenario 2 $95,000
2014 Budget Changes Continued IT PSAB addition for future capital $107,000 Strathmere Lodge savings ($133,000) Strathmere Lodge backfilling reduction ($174,467) Library rent reduction due to lower CPI ($4,159) Library rent from Social Services – Lucan & Parkhill ($6,375) Doors Open Middlesex & Taste & Tour Middlesex $10,000
Administration and Facilities 2014 Operating Budget 2014 budget has an increase to non union staff, Council, Warden and Committees of 1.5% an assistant solicitor and a facilities assistant in the amount of $68,000 changes to nonunion benefits $6,622 Increase to Municipal Property Assessment Corporation (MPAC) of 1.3%
Administration and Facilities 2014 Capital Budget Councillors and Library Board Computer/Tablet replacements $9,265. Great Plains System upgrade $20,000 Upgrades and repairs to the County Building and 50 King total $23,000
Planning and Woodlands Planning The 2014 budget reflects the Local Planning service where the actual • expenses (Salaries, Benefits, and Operations) are billed to the participating local municipalities such that there are offsetting revenue and expense lines. The budget includes $10,000 for Special Projects which includes costs • associated with a County Official Plan amendment and for consulting backfill to assist in the County Planning function. Legal / Consulting Services remains budgeted at $10,000 as there are some • cases where an outside solicitor may be necessary and / or where an outside technical expert will be required related to a legal proceeding (ie Professional Forester).
Planning and Woodlands Woodlands The Woodlands Conservation Officer is retiring in 2014. The hiring of a • replacement Officer is planned with four months of overlapping time to allow for knowledge transfer and training. This results in an increase in the Woodlands salaries and benefits and the Department’s budget. • Woodland revenues from County Forest timber harvest are anticipated to be $90,000 and County Forest direct management expenses are expected to be $40,000. • The net impact would be the transfer of approximately 50,000 to the Woodlands Capital reserve to be drawn upon in subsequent years to cover direct management expenses for years when the revenue from timber sales does not meet the costs.
Economic Development Expenditures Budget includes Scenario 2 ‐ increases economic development activities with less labour intensive initiatives Operations shows an increase to join the London Chamber (Agri ‐ Business Committee) Promotions includes additional investment in: Small business resources Website upgrades and other marketing support Commercial development & shovel ready sites promotion Business retention & expansion Participation in MEDTE’s Certified Site Program Economic development partners forum
Economic Development Expenditures – Special Projects $38,000 for implementation of the tourism route sign program. 2 nd of 4 year phase in. Total project costs ~$152,000. $18,500 to begin implementation of primary gateway signage installation. 2 nd of 4 year phase in. Total project costs ~$74,000. $5,000 for Facilitated Tourism Workshop $35,000 for Agriculture Sector Study $10,000 for support for SWEA Intelligent Region Initiative (computers, cellphones, mileage)
IT 2014 Budget Highlights Operating ‐ Network expenditures increased due to required hardware maintenance and software licensing renewals Salary and Benefits ‐ In 2013 the 50% Systems Librarian position was moved to 100% Library. These duties were unable to be accommodated in existing staff. Included a 0.5 FTE. ‐ IT Staff now work 40 hours per week
IT Capital ‐ Network upgrades to replace end ‐ of ‐ life equipment ‐ Security and management software for mobile devices ‐ PSAB / Capital Program of $150,000 per year to replace future end ‐ of ‐ life assets
Social Services • Total expenditures for the department decreased by 0.4% in 2014 compared to 2013. • The economy is still recovering and as a result the Ontario Works Program Costs (caseload and caseload costs) are higher than last year. This takes into account legislated Provincial increases. • The Average Caseload is 486. • Continued uploading of OW program costs has our share now at 11.4% (2013 ‐ 14.2%).
Social Services • The Social Housing budget is lower as it is based on the new blended formula (70% weighted assessment and 30% actual costs basis). • The new funding model for Child Care is now in place and the program costs are consistent with the previous year. There is no expectation of increased municipal contributions for 2014. • Addition of Early Child Development funding of $22,000 which is 100% Provincially funded.
Emergency Planning, Fire Continuation of emergency planning, fire prevention and inspection, fire dispatch, fire communication, & 911 communication services pending approval by council. Wage increases per existing employment contracts as per Council approved increases. Change over to Strathroy Caradoc Police Services for provision of fire dispatch services resulted in a one time increase in 2014 for additional staff costs and expenses related to the transfer
Roads Operating: Increases to salary and material costs of approximately 1.5% Winter maintenance increase of 7% as per Council direction from previous budgets Increase in bridge maintenance budget to prepare for additional inspection capacity in County roads department
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