Municipality of Chatham-Kent 2019 Draft Budget Presentation Budget - - PowerPoint PPT Presentation
Municipality of Chatham-Kent 2019 Draft Budget Presentation Budget Committee Information Meeting January 16, 2019 1 Agenda Item Opening remarks Budget Chair, Cl. Brock McGregor CAO, Don Shropshire Presentation of the 2019
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direction of CPI % on the operating budget and a percentage increase consistent with the current approvals to meet our Asset Management Plan
1.70% to 2.03% (Pending Provincial OMPF announcement) on the entire operations including:
– 1% increase in the annual funding for infrastructure – an additional $550,000 for bridges (Year 3 of 3) – Council approved 12 hour shift ambulance funding and – other previous Council decisions and Requisitioning body’s requests
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AREAS OF STRATEGIC FOCUS
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CRITICAL SUCCESS FACTORS
That the Corporation of the Municipality of Chatham- Kent is financially sustainable. The Corporation of the Municipality of Chatham-Kent is
governed with efficient and bold, visionary leadership. To be a community that is responsive to emerging strategic priorities, able to adapt to and recover from change and taking advantage of opportunities.
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Challenges Proactive Actions
Low Assessment Growth Investing in Economic Development Low Population/ Low Density Resident Attraction and Retention Strategy Significant Infrastructure Assets Asset Management Plan and Financing Plan
Environmental Sustainability
Technician
Planner Leadership
Resources and Organizational Development
Services
Assistant, Corporate Services System Improvements
Solution Analyst, CityView
Solutions Analyst, Capital Asset Management
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Financial Strategy, the following are important principles we should follow: – One-time costs should be funded with one-time revenues – Sustainable funding for facility replacement and strategic objectives – Fully fund Asset Management Plan
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Community against assessment growth and an increase in revenues. 1) New Tax Assessment 2) Level of Services 3) Revenues/Taxes/User Fees
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approval for infrastructure spending with the currently approved financing model.
requisitioning body’s request that are carried into the 2019 budget
Asset Management Plan – a recommended 1% increase in infrastructure spending, plus the final year of the three year bridge infrastructure funding plan of $550,000
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Year of Impact Amount Cumulative 2019 Tax impact 2013 Reduction - Winter Control Budget (Salt - $500,000) 2019 125,000 125,000 2018 Additional 12 hour ambulance shift 2019 348,040 473,040 2017 Soccer/Canteen building maintenance/lifecycle 2019 24,828 497,868 2018 Removal of Special Event Late fee 2019 26,100 523,968 2018 Live Streaming of Council Meeting 2019 25,000 548,968 Total amount that must be recaptured 548,968 0.37%
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and other rural communities in the summer of 2019 - $6,500 per community added
retention program - $100,000
added to the budget and will be highlighted during deliberations
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Tax $ Tax % Tax $ Tax % Comment Municipal Operations including Police Provisions for labour matters 2,095,998 1.40% 1,131,694 0.75% Savings of $554,504 included In provision from Bill 148/Bill 47 changes Inflation 2,154,686 1.44% 1,957,845 1.31% 2018 budget decisions: Net base budget requirement 662,101 0.44% 662,101 0.44% Ontario Municipal Partnership Funding grant increase
Assessment growth
Revenue opportunities
Base budget requirements
Subtotal for existing services 1,752,639 1.17%
Strategic investments 6,308,635 4.21% 2,585,424 1.73% One time requests 5,040,833 3.36% 0.00% Fund from revenues, reserves - included in Tab 5 Other Funding Available Asset Management Plan requirement net of new asset funding 651,891 0.43% 651,891 0.43% Ministry requirement Service reductions options submitted
0.00% Total Change 13,710,864 9.14% 2,544,132 1.70% Requests Considered Recommended Budget
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OMPF potential reduction 500,000 2.03%
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Annual Weekly
Tax %
Impact Impact Municipal Operations:
Municipal Departments 0.54% 15.39 $ 0.30 $ Council Decisions and Uncontrollables 0.37% 10.55 $ 0.20 $ Police Services
0.36%
10.26 $ 0.20 $ 1.27% 36 $ 0.71 $
Infrastructure renewal: Recommended AMP requirements Tax Levy
0.43% 12.26 $ 0.24 $
Recommended AMP requirements Gas Tax Funding
0.00%
Recommended AMP requirements OCIF Funding
0.00% 0.43% 12 $ 0.24 $
Total Recommendation 1.70%
48 $ 0.94 $
(Assessment $168,300)
OMPF potential reduction 2.03% $58 $1.11
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– Municipal tax based: – Households 48,051 – Businesses:
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Rate based:
Service level agreements are in place for the cost of services provided for rate based services
* Industrial includes wind turbines
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2018 Base Budget Expenses by Type
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2018 Avg Household Contribution to Municipal Services (based on 2018 Residential Assessment of $164,984 = $2,835)
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Net Expenditure Changes – Tax Impact 2008 to 2017 (10 years)
24 1.2% 3.0% 5.9% 18.8%
5.5%
27.9%
15.8%
0.0% 10.0% 20.0% 30.0% 40.0%
Chatham-Kent Net Expenditure Changes - Tax Impact 2009 to 2018 (10 years)
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Tax Tax Revenue Rate 10 year increase * 27.9% 18.5% Less: Net infrastructure investment 18.8% 18.8% Change for existing services 9.1%
CPI during same period 15.8% * Difference of 9.4% is from assessment growth
Debt Outstanding at December 31, 2018 PUC Municipality Total Rates Locals Taxes Locals PUC Municipality Total 43,937,570 0 14,550,412 18,242,205 43,937,570 32,792,617 76,730,187
– debt being funded by local improvements or senior government grants
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Debt Principal Outstanding Tax Funded Debt Only
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2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Roads Bridges 33% Riverview Gardens John D. Bradley Centre
– The $308M of liquid assets to pay off $207M of liabilities – Net Asset Position of $101M – Net Asset Position:
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CK Balance Sheet at December 31, 2017 Assets (excluding capital): Financial 306,428,000 Inventory 1,003,000 Prepaid expenses 410,000 307,841,000 Capital assets at historical cost, net of depreciation 838,574,000 Total assets 1,146,415,000 Liabilities 206,943,000 Accumulated surplus 939,472,000 Total liabilities and equity 1,146,415,000
– will remain healthy as long as we fully fund our operating decisions
– sustained pressure on operating requirements:
requirements
funding programs
Services levels of funding
–historically plant closures; recently assessment appeals
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– Background information – Comparison to other communities – Analysis by community within CK – Budget vs tax policy – Other tax issues
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BMA Study 2018 total taxes $3,136
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Source: 2018 BMA Study – Total Taxes (Municipal + Education)
Assessment Value Tax Rate Property Taxes Same Average House Same Average Municipal Services
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
Bungalow Single-family dwelling
Source: BMA Study
2018 Relative Tax Burden Comparison
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Source: BMA Study
Commercial Shopping Centre per sq. ft.
$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00
2018 Relative Tax Burden Comparison
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Source: BMA Study
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50
Industrial Standard taxes per sq. ft.
2018 Relative Tax Burden Comparison
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Source: BMA Study
$- $1,000 $2,000 $3,000 $4,000 $5,000 Property Taxes Water/Sewer
result in one of the lowest cost of services in the survey
Residential Average Cost of Service
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– 3,588 lane km paved – 3,246 lane km gravel
– 850+ with 3m or greater span – CK has 0.8% of Ontario’s population but 5% of the bridges
(BMA 2018)
– CK … 43 – Windsor … 1561 – Sarnia … 450 – London … 968 – Kingston … 311
drains)
cemeteries; 58 inactive;
Housing)
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Blenheim 142,879 $ 2,205 $ 22 $ Bothwell 92,377 $ 1,291 $ 13 $ Camden 161,833 $ 2,062 $ 21 $ Chatham City 154,357 $ 2,614 $ 26 $ Chatham Twp 177,990 $ 2,267 $ 23 $ Dover 202,990 $ 2,585 $ 26 $ Dresden 123,290 $ 1,876 $ 19 $ Erie Beach 204,539 $ 2,854 $ 29 $ Erieau 208,940 $ 2,919 $ 29 $ Harwich 176,898 $ 2,253 $ 23 $ Highgate 79,580 $ 1,065 $ 11 $ Howard 191,528 $ 2,441 $ 24 $ Orford 141,736 $ 1,806 $ 18 $ Raleigh 186,666 $ 2,377 $ 24 $ Ridgetown 139,162 $ 2,165 $ 22 $ Romney 170,151 $ 2,242 $ 22 $ Thamesville 108,575 $ 1,522 $ 15 $ Tilbury 132,053 $ 2,051 $ 21 $ Tilbury E 147,364 $ 1,877 $ 19 $ Wallaceburg 111,778 $ 1,879 $ 19 $ Wheatley 137,824 $ 1,924 $ 19 $ zone 149,759 $ 1,908 $ 19 $
2018 Residential Assessment and Tax
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Average 2018 Farm Assessment & Tax by Ward Avg Avg 1% Farm Farm Increase Ward Description Assess Tax 1 West Kent
393,108 $ 1,115 $ 11 $
2 South Kent
562,957 $ 1,578 $ 16 $
3 East Kent
562,909 $ 1,579 $ 16 $
4 North Kent
657,434 $ 1,842 $ 18 $
5 Wallaceburg
257,786 $ 954 $ 10 $
6 Chatham
708,505 $ 2,640 $ 26 $
Average 2018 Farm Assessment & Tax by Ward
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2018 Commercial and Industrial Assessment and Tax
Assessment Average 2018 Average 1% per $100,000 Type Assessment Municipal Tax 1%= Assessment Commercial
352,854 9,629 96 27
Industrial
306,898 9,430 94 31
2018 Commercial and Industrial Assesment and Tax
Residential 101,039,000 68% Commercial 28,501,000 19% Industrial 5,828,000 4% Farm 13,526,000 9%
2018 CK Taxes
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2018 Taxes Raised by Community and Property Class
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Managed Former Entity Map Ward Commercial Industrial L Industrial Land Fill Mult -Res Parking Lot Pipeline Residential Farm Forest Total Romney Twp 010
1 209,582 183,551
2,376,063 462,887 273 3,410,863
Wheatley
020 1 205,265 46,751
1,265,901 3,771
Tilbury E
060 1 139,732 385,546
1,645,962 856,332
Tilbury
080 1 1,214,069 311,926 401,198
3,744,183 2,877
Raleigh Twp
110 2 616,568 421,967 100,136
5,042,706 1,236,611 564 7,553,954
Harwich Twp 140
2 781,338 503,617
8,915
7,220,992 2,467,878 185 11,325,651
Blenheim
160 2 1,177,782 241,952 52,570
1,475 30,920 3,680,997 4,676
Erie Beach
180 2
368,182
Erieau
190 2 74,285 6,834
1,114,963
Howard twp
210 3 235,688 205,919 56,055
2,582,198 1,369,301 742 4,596,250
Ridgetown
240 3 526,329 158,856 106,489
2,764,091 10,162
Orford
260 3 46,321 129,606
955,446 833,788 858 2,000,823
Highgate
280 3 42,159 8,332
193,915 9,785
Zone
310 3 102,998 15,565
727,090 458,891 2,029 1,333,980
Bothwell
320 3 127,749 11,069
574,516 4,068
Camden Twp 360
3 144,455 78,798
1,676,593 1,011,536 1,561 2,947,900
Thamesville
380 3 154,966 13,425
583,006 6,343
Dresden
390 4 429,162 77,081 79,144
1,958,757 2,574
Chatham Twp 410
4 3,060,326 52,709
4,769,471 2,671,400 494 10,749,692
Chatham City 420
6 14,123,281 1,167,311 322,990
26,475 255,936 40,035,840 113,507
Wallaceburg
441-443 5 2,399,751 387,551 67,649
395 76,706 7,476,162 22,886
Dover Twp
480 4 768,716 233,367
4,340,644 1,970,291
TOTAL 26,580,522 4,641,736 1,186,231 193,409 5,941,309 28,345 1,698,172 95,097,678 13,519,564 6,705 148,893,671
– determines financial resources required to carry out desired levels of service
– determines how budget requirements are levied – finalized in April/May in order to facilitate:
new legislation
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CK Limit – Residential 1.0 1.0 prescribed – Farm 0.22 0.25 maximum – Multi-residential 2.00 2.00 – Commercial 1.96 1.98 – Industrial 2.11 2.63 – New Multi-Residential 1.10 1.10 – Landfill 6.07 6.07 – New legislation on Landfills, New Multi-Res and Multi-Res for 2017
Can only allocate 50% of budget increase to class if ratio above limit
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transitional assistance funding in the programs, it was determined that a conservative estimate of an increase in funding of $500,000 per year be added into the budget
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Late December 2018 Notification from Provincial Government and AMO:
OMPF program during 2018)
support for consistent program funding
30, 2019 (pending information over next 2 weeks, Consultation meeting set for January 23/19)
Received in 2018 20,860,000 Budgeted 2019 OMPF grant 21,360,000 Budgeted 2019 Increase 500,000
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Actual Growth by Class
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2019 2018 COMMERCIAL $ 422,827 $ 448,171 INDUSTRIAL** $ 227,660 $ 44,568 MULTI RES $ 32,769 $ 18,778 PARKING LOT $ 702 $ 0 PIPELINE $ 679,313 $ 9,243 RESIDENTIAL $ 691,602 $ 595,870 FARM $ 44,983 $ 133,370 MANAGED FOREST $ 144
$ 2,100,000 $ 1,250,000 2019 2018 INDUSTRIAL $ 221,557 $ -
** Wind Turbine growth included in Industrial
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Bill 148, Fair Workplaces, Better Jobs Act, 2017 required many new benefits be offered to employees. Minimum Wage Increase $302,864 Other Bill 148 items $534,000 Total 2018 Impact $836,864 The 2018 Budget funded the $836,864 by tax, user fee, base budget reductions, and staffing reductions.
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Bill 47, Making Ontario Open for Business Act, 2018 reversed most of the Bill 148 impacts and froze minimum wage at the 2018 rate of $14/hr. Total 2019 Impact ($554,504) The 2019 draft Budget refunds the $554,504 of base taxes no longer required to the ratepayers.
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– Annual tax increases to achieve full funding by 2037 (20 year plan): – All Categories in 2017 AMP (Council Approved) 1.00% – Decreasing debt payments:
– Inflation:
Approved categories from 2017 Asset Management Plan 101,800 Decrease in 2019 Federal Gas Tax Annual Funding (436,800) Increase in 2019 OCIF Annual Funding 1,834,000 Recommended 2019 net phase-in (Equals 1%) $1,499,000 Year 3 of 3 Bridge Funding Plan $ 550,000
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We are about 53% funded for our annual requirements
2018 2018 Final Annual Infrastructure Category Requirement Budget Deficit Active Transportation
Airport 97,000 49,431
Arenas (maintenance) 654,014 654,014
235,802 235,802 Bridges & culverts < 3m 3,960,000 606,962
Bridges & culverts > 3m 14,700,000 11,872,904
Buildings - IES (Asset Management) 4,990,314 2,938,234
Buildings - CD 363,763 114,878
Buildings - CD CH 15,000 15,000
142,857 70,520
Community Trails 565,795 202,551
Curb & Gutter 1,001,400 30,000
Fleet - municipal 4,526,000 4,164,871
Fleet - police (included with "municipal # above") 606,000 491,283
Fleet - Gen & Admin Shop Equip 34,486 Halls - REC FAC (Maintenance) 27,853 27,853 Halls - REC FAC (Replacement) 19,329 19,329
1,541,281 845,210
ITS - software 1,201,000 610,964
ITS - workstations 529,850 409,907
Non lifecycle capital projects 5,960,000 5,960,000
762,514 303,900
Parks - Rec Fac 334,204 64,000
Parks - other capital miscellaneous CH 485,526 438,209
Playground units (CALS & REC FAC) CH 601,537 193,418
Pools - building replacement 45,594 10,000
Pools - indoor (does not include building) 104,550 76,858
Pools - outdoor (does not include building) 224,910 103,027
Radios (Police, Fire, PW) 100,000 100,000
182,580 40,000
Railway crossings - signals 64,260 60,780
Roads … gravel 3,978,000 3,492,482
Roads … paved & surface treated 23,141,274 11,120,291
Road Safety & Guide Rails 1,023,400 219,861
Sidewalks 1,253,849 639,203
Signage - 401 (on MTO property) 20,400 20,000
Social housing - municipally owned 923,100 923,100
1,326,000 905,995
Splash Pads (Maintenance)(REC FAC) 7,650 2,500
Splash Pads (Replacement)(REC FAC) 43,656 37,000
Sport Fields - CALS 248,042 40,000
Storm pump stations 1,875,000 45,000
Storm sewers (collector network) 11,551,537 2,137,054
Storm sewer (tile drainage system) 4,195,779 105,000
Storm sewers - combined (separation) 1,207,570 70,000
Storm Water Management Ponds 20,400 10,000
Street lights 191,250 10,000
Street light poles 87,827 86,105
Traffic Assets - Signals 434,838 15,000
Traffic Assets - Parking Equipment 40,896 10,000
Transit Assets 22,626 10,000
95,636,027 50,715,709
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Road Network 32.24% Municipal Airport 0.10% Bridges & Culverts 19.63% Sanitary & Storm 19.83% Other Capital Projects 6.29% Land Improvements 3.60% Facilities 9.17% Machinery & Equipment 4.37% Vehicles 4.76%
Average Annual Investment Required per Asset Class $95,636,027 total (2018 AMP Report)
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Combined & Storm Sewers - $16,483,232 Road Network -$15,042,146 Bridges & Culverts - $6,180,134 Facilities & Structures - $2,793,707 Machinery & Equipment - $2,052,382
$0
Top 5 Asset Categories with Annual Deficit - 2018
2017 AMP Annual & Total % Recommendation to Council 2019: Per 2017 AMP phased in requirements (2018-2037) 1.4% 28.0% Recommendation in budget (2018-2037) 1.0% 20.0% Balance to come from divested assets and service level changes 0.4% 8.0% The Final 2017 AMP was accepted by Council on January 29/18 and was submitted to the Province with the approved list of recommendations on the AMP Financing Plan. This approved financing plan should be followed to ensure we remain eligible for any future Federal and Provincial funding programs.
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Type of Reserve Forecasted Dec 2018 Balance Mandated 25,719,600 Assigned 59,000,000 Lifecycle Program 51,855,300 Total Reserves 136,574,900
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Contribution to Reserves
From Surplus Net Other transfers Base Budget Transfers Total 2017 2,238,010 4,220,657 577,600 7,036,267 2016 2,210,260 2,197,634
2015 828,665 3,206,787
2014 1,619,807 2,023,498
2013 1,293,014 1,030,702 570,000 2,893,716 Average Contribution 1,637,951 2,535,856 229,520 4,403,327
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Average Drawdown from Reserves over last 5 years
Average Drawdown from Reserves All Drawdowns (Including Caseload) Less: OW Caseload Related Net Drawdowns Additional Council Approved Strategic Dev. Reserve Total 2018 7,693,000
1,868,000
2017 6,933,000
1,675,000 874,000 9,482,000 2016 7,082,000
734,000 973,000 8,789,000 2015 5,065,000 270,000 4,795,000 896,000 220,000 5,911,000 2014 2,000,000 400,000 1,600,000 923,000 337,000 2,860,000 Average Drawdown 5,754,600 134,000 5,620,600 1,219,200 480,800 7,320,600
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2019 One-Time items
Mandated Reserves (385,000) Assigned Reserves (5,578,926) Lifecycle Reserves (930,524) New Base Budget Contribution to Reserves 500,000 Total 2019 Recommended Net Drawdowns (6,394,450)
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2019 Average Contributions to reserves $7.0M $4.4M Use of reserves $6.9M $7.3M Net increase (decrease) $0.1M ($2.9M)
Recommendation for long-term reserve sustainability:
– At 5 year average activity, annual draw downs are consistently exceeding contributions – Traditionally reserve contributions are limited to one-time items, which includes year end surpluses – Reserves are one-time funds and should be used to fund one-time items – Annual Base Budget contributions are included in the 2019 budget to ensure Council Strategic Objectives are supported
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FTE Count Net Tax $ Impact Base Funded 1) Existing Services (6.92) (572,019) 2) New Services 14.58 825,116 Total Staffing Base Funded 7.66 253,097 One Time Funded 1) Existing Services 10.77 2) New Services 12.75 297,722 Total Staffing One Time Funded 23.52 297,722 (One-time positions were funded from reserves) Total Base and One Time Funded 31.18 550,819
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Total staff January 1, 1997 (year prior to CK) 1321 Reductions during amalgamation (217) Total staff when CK came to be on January 1, 1998 1104 Staff added due to downloaded services 254 Net staff added due to other service changes 23 2018 base staffing FTE 1381 2019 base recommended net staffing changes - Downloaded Service 2019 base recommended net staffing changes - Other Services 8 Total 2019 staff FTE recommended 1389
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– 2019 Draft Budget Overview and detailed information – Time and location of community forums – Comments and feedback opportunities – 2018 Base Budget Overview – Recorded version of tonight’s Opening Night Presentation in AODA accessible format on website by next week
– Police Services Board presentation – Employment and Labour Relations closed session presentation
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reductions
fees, any proposed new revenue sources or revenue changes due to volume
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Municipal Infrastructure/Council Strategic Directions 2. Community growth
4. Responsive to a wide community / corporate need for new service levels
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Council Base Budget Review and Education Sessions: Location Date and Departments Time
Chatham-Kent Civic Centre Room 212 Tuesday, January 8, 2019 Community Human Services Infrastructure and Engineering Services 9:00 am to 12:00 pm 1:00 to 4:00 pm Chatham-Kent Civic Centre Room 212 Thursday, January 10, 2019 Police Services Community Development Services CAO Corporate Services Finance, Budget & Information Technology Non-Operating/Corporate 9:00 to 10:00 am 10:00 am to 12:00 pm 1:00 to 1:30 pm 1:30 to 2:30 pm 2:30 to 3:30 pm 3:30 to 4 pm
These informal sessions are an opportunity for new and returning Councilors to meet with the GM and Directors and review the detailed base budget and ask questions. The Budget Committee can always bring forward base budget issues at the budget deliberation meetings.
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Community Consultation: Location Date Time
Tilbury Arena, Ryder Hall, 55 Bond Ave. Tilbury Ken Houston Memorial Agricultural Centre 1212 North Street, Dresden Tuesday, January 22, 2019 Tuesday, January 22, 2019 4:30 to 6:00 p.m. 4:30 to 6:00 p.m. Blenheim High School Cafeteria 163 Chatham St. S., Blenheim Wallaceburg Municipal Office, 786 Dufferin Ave., Wallaceburg Wednesday, January 23, 2019 Wednesday, January 23, 2019 4:30 to 6:00 p.m. 4:30 to 6:00 p.m. Active Lifestyle Centre, 20 Merritt Ave, Chatham Thursday, January 24, 2019 4:30 to 6:00 p.m.
Open house at 4:30; brief presentation at 5:00 p.m. followed by a group Q & A session
Council deliberations:
determined each evening) – please sign up at the door
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