Tax and Area Rates Budget 2020 January 16, 2020 Budget Cycle for - - PowerPoint PPT Presentation

Tax and Area Rates Budget 2020

January 16, 2020

Budget Cycle for 2020

• Dept. Managers – Draft Capital Projects
• Capital & Studies Presentation – Nov. 21
• Assessment Roll Received Dec. 2019
• Impacts Presentation – Dec 12, 2019
• 2019 prelim. year end – Jan. 13, 2020
• Consolidated Budget Presentation – Jan.16
• Municipal Budget Adoption – Jan. 28, 2020

Financial Summary

• Year End – preliminary

– Generally on track for good year end numbers – Bldg. Dept. – great activity, transfer to reserve

• Deficit updates

– Fire dept. – small accum. revenue – Winter Control – deficit - big impact on $$$ – Arenas – deficits at both facilities

Assessment

Assessment Summary

• True growth

– 1.27% increase in actual assessed values – Yields $131,401 in new tax dollars

• Assessment Roll received

– 4.58% increase in overall current value assessment (CVA) phase-in assmt.

• CVA phase-in

– Last year of four year process

Tax Levy Increase

• What is 1% increase in

spending in 2020?

• $71,500 of new expenditures

equals a 1% increase in the net tax levy (adj. for real growth)

Grants and Other Funding

Provincial Grant Details

• O.M.P.F. grant in 2020

$1,054,600

• O.C.I.F. grant for 2020 expected to be
• approx. $190,000 (currently unknown)
• Modernization Grant supports technology
• Mainstreet Grant - public realm Youngs Pt

Federal Grant Details

• Continue use on capital roads projects

– Only eligible on contracted services and materials $517,536 – This is currently the only stable source of

• utside funding for road reconstruction

Plus One Time $$$

Capital Purchases & Projects

Capital Budget Summary

Capital – Amendments

• See narratives dept # 6 for changes
• Summary sheet for funding changes
• 2019 year end still underway - $ impacts
• Trail construction – delayed - future

Studies – 2020

Summary Comments

Studies and Plan Overview

• Cultural Master Plan
• Building Facilitation
• Flood Plan Mapping projects
• with ORCA – completion in 2020
• Asset Management Plan

– work plan, preparing for 2021

Reserves

Reserve Overview

Impacts

Tax Levy Increases

• General Government

$ 54,645

• Facilities

$ 12,500

• Economic Development

$ 40,786

• Fire Services

$ 52,927

• Roads & Winter Control

$103,276

• Waste Mgmt.

$ 15,000

• Stormwater

$ 28,568

• Parks & Arenas

$ 54,121

• Library Services

$ 10,580

• Total

$372,404

• Less: Assessment Growth

($131,401)

• Net Tax Levy Increase

$241,003

Cuts/Rationale to achieve 3.37%

• Fleet (using proceeds of sale)

$21,693

• Fleet (reduced reserve contribution) $23,000
• Transit (initial phase in)

$80,000

• Waste Mgmt. (savings applied)

$25,000

• Arenas – transfer to equipment

$30,000

• Arenas – remaining deficits

$76,509

• Chats w/ Dept. Heads

$11,000

• Finance fine tuning of estimates (net) $20,000
• Addt’l Accumulated Revenue Use

$30,000

• Total

$317,202

ORCA Levy & Police Area Rates

Otonabee Conservation

• ORCA Operating Levy – up 5.5%
• Selwyn portion of total levy $230,735

Up $10,122 over 2019 – 4.6%

An outside levy with separate tax rate.

OPP Costs in Rural Wards

• 2018 year-end adjustment

– Charge of $11,297 impacts accum. revenue

• OPP estimate for 2020 received
• Impact on Smith and Ennismore only

Small Area Rate Levy Reduction in 2020

Police Costs in Lakefield

• Operating under contract relationship

– Have 2020 # but waiting on schedule of costs

• No planned contribution to reserve, only
• accum. revenue in 2020
• No additional chargebacks received from

City in 2019

Small Area Rate Levy Reduction in 2020

Impact on the Typical Homeowner

2020 Tax Increases - Rural

• General Municipal Increase $25.25

– an increase of 3.81%

• OPP Area Decrease -$ 7.19

– a decrease of 3.15%

• Total Municipal - Rural

$18.06

– an increase of 2.03%

Annual impact on typical homeowner 314,173

2020 Tax Increases - Village

• General Municipal Increase $25.25

– an increase of 3.81%

• Police Area Decrease -$26.91

– an decrease of 4.79%

• Total Municipal - Village
• $ 1.66

– an decrease of .14%

Annual impact on typical homeowner 314,173

Department Highlights & Next Steps

General Government

• Communications
• Technology

Economic/Community Development

• Increased Communications efforts
• Implementing Marketing Plans
• CIP Financial Incentives Increased

– $6,250 increase (year 2 of 4)

Sufficient CIP Reserve Balance allowed for a four year phase-in for this initiative.

Fire Service

• Call volumes increasing

– growing medical calls

Building Department

• Busy year in 2019 yields positive results
• No C.P.I increase on permit fees in base

2020 budget

Service Delivery Review

Roads

• Road side maintenance in advance of

road construction

• An increase to Resurfacing to address

increasing contract costs and utilize one time AMO Gas Tax funding

$100,000 funding increase to Roads Resurfacing in 2020.

Winter Control

• Sanding & salting dominates winter
• perations
• Need to address requirement for sufficient

contingency reserve

Over $173,000 used in reserves and transfers in 2019

Public Works Fleet

• OMPF impacts on replacement reserve
• Equipment rates increase will affect
• perating budget
• Considerations will need to include:

– Greater consistent utilization of equipment – Seasonal rentals for specialized equipment instead of replacement

Transit

• Implementation of pilot community

transportation program

• Promotion and responsiveness to

maximize ridership

Maximize partnerships

Waste Management

No Private Road Collection Charges

• Collection contract extension costs
• Construction & Demolition Debris costs

phase-in completed

• Addressing significant brush stock pile
• Selwyn Landfill Site operating at break-even

Consolidation in the private waste management sector could have larger impact.

Stormwater

• Establishing a small levy component for a

large asset class

OCIF grant used

Arena Deficits

• Developing a sustainable approach

– Initial plan to reduce deficit

• More taxation to offset AODA and insurance costs
• Continued efforts to increase revenues
• Ongoing needs to be accountable and find energy

savings & efficiencies

– Future phase-in plan includes:

• transfer to offset equipment replacement
• Re-evaluating the remaining operating deficits

Library Services

New Board to begin new Strategic Plan

• consider Trent Centre for Aging and Society

report and recommendations

• supporting volunteers efforts into the future
• developing new metrics for measuring

Library impact (more than circulation #s)

Infrastructure Investments

• Ontario Regulation 588/17

– Mandated to use lifecycle and risk management – Greater documentation and tracking of levels of service – Looking to the long term for capital investments and funding model (capital levy report as part of asset mgmt.)

Recommendation

• That the report of the Manager of Financial

Services entitled Taxation Budget 2020 – Draft be received for information; and

• That, based on meeting discussions, the Manager
• f Financial Services prepare a report for

presentation to Council at a date to be determined by Council supporting the adoption of the 2020 Taxation Budget.

Questions?