Town of LaSalle PROPOSED 2020 BUDGET & BUSINESS PLAN December 18 - - PowerPoint PPT Presentation

Town of LaSalle

PROPOSED 2020 BUDGET & BUSINESS PLAN

December 18th & 19th

Town of LaSalle

Budget Agenda

• Strategic Plan
• Budget Overview
• Budget Challenges
• Budget Summary
• Delegations
• Departmental Budgets and Business Plans
• Operating Budget
• Capital Budget
• 2020 Reassessment

Strategic Plan

Vision

Mission Strategic Objectives Strategic Actions Implementing and Monitoring

Corporate Goals Departmental Goals Service Level Changes

Strategic Plan

2015 – 2018 Strategic Objectives

• 1. Expanding and diversifying the Town’s assessment base
• 2. Effectively communicating the activities and interests of the Town
• 3. Managing the Town’s human and financial resources in a responsible manner
• 4. Promoting and marketing LaSalle
• 5. Promote a healthy and environmentally conscious community

LaSalle 2050

• New 30 year Strategic Plan
• Community Feedback- Open Houses - Survey

NEW STRATEGIC PLAN PREVIEW

NEW STRATEGIC PLAN PREVIEW

Fiscal Policies, Debt, Capital Financing & Reserves

Fiscal Policies Debt Management Capital Financing Reserves & Reserve Funds

Town of LaSalle

Summary of Proposed Operating Budget

2019 Approved Levy: $34.4m 2020 Proposed Levy: $36.7m Proposed Increase in the Levy: $2,300,000 Increase in levy from Growth from new assessment: $855,000 Increase in levy from assessment increase on existing structures: $1,300,000 Increase in the levy from a Tax Rate Change: $nil 2019 Levy increase carry forward $145,000

Town of LaSalle

Summary of Budget Changes $2,300,000

Inflationary Pressures $474,000 Police Services $441,000 Long Term Capital $600,000 Growth & Service Levels $785,000 1% Change = $367,000 = $9.66 per $100,000 of Residential Assessment Labour: $133,000 Operating: $162,000 Master Plans: $750,000 Revenue: ($260,000) Labour: $286,000 Operation: $192,000 Capital: $431,000 Revenue: ($435,000)

Town of LaSalle

Residential Property Tax Distribution

Municipal Levy County Levy Education Levy

Town of LaSalle

Expenditures by Service/Category

Transfers to Capital/Reserves 26% Police Services 19% Fire Services 8% Debt Payments 6% Garbage Collection & Disposal 4% Fleet & Faciltities 11% Other 26%

Budget Overview

2020 Proposed Budget 2019 taxes on $100,000 of Assessment 2020 Taxes on $100,000 of Assessment Affect on $100,000 of Assessment Proposed Municipal Tax Rate Change +0.00% $965.90 $965.90 $0.00 County Tax Rate Change (ESTIMATE) +1.30% $482.99 $489.27 $6.28 Education Tax Rate Change (ESTIMATE)

• 4.00%

$161.00 $154.56 $(6.44) Total Tax Rate Change (ESTIMATE) 0.00% $1,609.89 $1,609.73 $(0.12)

Town of LaSalle

County Comparison

$4,473 $4,785 $4,106 $3,866 $4,025 $3,423 $3,188 $3,344 $521 $474 $540 $577 $444 $466 $603 $314 $905 $575 $893 $582 $342 $477 $545 $348

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Windsor Leamington Amherstburg Essex LaSalle Tecumseh Lakeshore Kingsville

2019 Total Taxation, Water, Wastewater Charges on a Home Valued at $250,000 using 240 m3 of water annually

Taxation Water Wastewater

$5,821 $5,738 $5,475 $4,971 $4,757 $4,353 $4,285 $3,958

Town of LaSalle

Budget Factors and Challenges

• Re-Assessment of Existing Residential, Commercial

and Industrial Buildings

• Building Activity and Supplemental Assessment
• Utility Rates
• Service Level Enhancements
• External Legislative Requirements
• Other Municipalities in Essex County
• Inflationary and Contractual Pressures
• Income Demographics
• Aging Infrastructure / Capital Planning

Town of LaSalle

Assessment on Existing Residential, Commercial and Industrial Buildings

(500,000)

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Proposed

Levy increase from assessment growth from new construction Levy increase from tax rate increase Levy increase / (decrease) from assessment increase/(decrease) on existing properties

Town of LaSalle

Absence of Growth from New Construction

(500,000)

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Proposed

Levy increase from assessment growth from new construction Levy increase from tax rate increase Levy increase / (decrease) from assessment increase/(decrease) on existing properties

Town of LaSalle

Benefits of Multiresidential Growth

• More environmentally friendly than single detached homes:
• Less utilities to operate
• Less materials to build
• Less Town infrastructure to build and maintain
• More accessible
• More affordable to purchase and operate
• More accommodating to aging population
• Lawn maintenance performed by building management

company

• Snow removal performed by building management company
• Significant cost savings for the Town as compared to single

detached homes

Town of LaSalle

Benefits of Multiresidential Growth

4 storey condo 5 storey condo 6 storey condo 7 storey condo

• 145 meter frontage
• 80 units
• $13,700 annual cost for roads, storm, water,

wastewater and garbage services

• $164,000 annual cost for 80 single detached houses
• 145 meter frontage
• 100 units
• $13,700 annual cost for roads, storm, water,

wastewater and garbage services

• $205,000 annual cost for 100 single detached houses
• 145 meter frontage
• 120 units
• $13,700 annual cost for roads, storm, water,

wastewater and garbage services

• $246,000 annual cost for 120 single detached houses
• 145 meter frontage
• 140 units
• $13,700 annual cost for roads, storm, water,

wastewater and garbage services

• $287,000 annual cost for 140 single detached houses

Town of LaSalle

Property Assessment Types

Residential / Multiresidential Commercial / Industrial Other

Assessment by Type- Town of LaSalle

Essex County

Town of LaSalle

Building Activity and Supplemental Assessment

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of Dwellings built 156 187 183 152 187 207 283 244 272

* Estimated number of build ready lots remaining is 290

Town of LaSalle

Utility Rates

Town of LaSalle

Utility Rates

$- $0.02 $0.04 $0.06 $0.08 $0.10 $0.12

2011 2012 2013 2014 2015 2016 2017 2018 2019

Average Global Adjustment Charge per kwh

Average Global Adjustment Charge per kwh $- $0.05 $0.10 $0.15 $0.20 $0.25

2011 2012 2013 2014 2015 2016 2017 2018 2019

Average Union Gas Commodity Price per m3

Average Union Gas Commodity Price per m3

Town of LaSalle

Vollmer Recreation Hydro Usage

200,000 250,000 300,000 350,000 400,000 450,000 January February March April May June July August September October November December

kWh / month Month

Vollmer Recreation Centre Hydro Usage History

2015 2016 2017 2018 2019

Town of LaSalle

Service Level Enhancements

Town of LaSalle

Service Level Enhancements

Drainage Study

Service Level Enhancements

Replacing and Repairing existing infrastructure (Needs) New Assets (Wants)

Legislative Requirements Vs. Recommended Best Practices

Legislative Requirements

• Bill 148 – Fair Workplaces, Better Jobs Act (repealed)
• Bill 127 – Stronger, Healthier Ontario Act
• Bill 6 – Infrastructure for Jobs and Prosperity Act
• Locate Program
• Source Water Protection
• Reg. 397/11 – Energy usage reports / Energy Management Plan
• Changes in Accessibility Standards
• Changes in Health and Safety Standards
• Bill 108 – More Homes, More Choice Act (new)

Town of LaSalle

Grant Funding

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Essex Leamington Amherstburg Lakeshore Kingsville Tecumseh LaSalle OMPF FEDERAL GAS TAX OCIF

Town of LaSalle

Inflationary Pressures

2011 2018 Change % Change 2011-2018 CPI % Change GAP Vollmer Recreation Centre Hydro & Water 433,445 657,121 223,675 51.60% 10% 191,157 Insurance 449,227 535,495 86,268 19.20% 10% 41,345 Garbage Collection 545,366 630,031 84,665 15.52% 10% 30,128 Garbage Disposal 810,802 928,753 117,951 14.55% 10% 36,871 Salt price per Metric Tonne 61.00 76.50 15.50 25.41% 10% Hot Asphalt per Metric Tonne 88.66 120.00 31.34 35.35% 10%

Town of LaSalle

Income Demographics

49% 51%

LASALLE

$0 to $100,000 > $100,000 70% 30%

ESSEX COUNTY

$0 to $100,000 > $100,000 65% 35%

ONTARIO

$0 to $100,000 > $100,000 68% 32%

CANADA

$0 to $100,000 > $100,000

Would like Enhanced Service Levels Satisfied with Current Service Levels

AVERAGE HOUSEHOLD INCOME

Capital Financial Planning A Three Part Approach

2020 Capital Budget

• Annual Capital

Budget

• Approximately

$7.5 million annual (plus special projects) 5 Year Capital Plan

• 2020-2024

Capital Budget

• Realignment
• f Reserves &

Contributions Long Term Capital Plan

• Growth of

Annual Capital Contribution

• From $14

million to $18 million goal

Town of LaSalle

Capital Cost Pressures – Hot Asphalt Mix

20 40 60 80 100 120 140 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Actual Price per tonne Price per tonne with 2% budgeted inflation

Town of LaSalle

Capital Funding Deficit

2015 Todd Lane Full Reconstruction (Excluding Sanitary Sewer)

• Cost = $6,244,000
• Length = 1.75km
• Total kms of road in

LaSalle = 197km

• Total cost to fully

reconstruct all roads = $703 million

• Full reconstruction

required approx. every 40 years

Town of LaSalle

Capital Funding Deficit

Long Term Planning Principles

Capital Funding Target to fund replacement Value

2% Tax rate Increase annually until the target is achieved New funding sources dedicated to capital Priority and focus on Maintenance & Replacement of Existing Assets

Long Term Capital Plan Progress

6,708,400 8,295,500 10,781,400 12,762,300 14,049,100

• 4,000,000

8,000,000 12,000,000 16,000,000 20,000,000 Annual Contribution to Capital 2016 2017 2018 2019 2020 Proposed GOAL (replacement of existing assets) GOAL including service level enhancements ??? 18,100,000

Long Term Capital Plan

Long Term Capital Plan What if we do nothing or defer this?

Future higher tax rate increases may be required Service level may decrease Assets replacement may not occur as required Annual Maintenance costs may increase

Town of LaSalle

Major Capital Projects over past 15 years

Lou Romano Plant Upgrade $16M Vollmer Recreation Complex $31.6M Water Front $10M New Civic Facilities $32.5M Vollmer Phase 2 = $9.0M

• Laurier Parkway = $18.9M
• Southwest Quadrant Reconstruction = $9.0M
• Todd Lane Reconstruction = $6.5M
• Riverdance Construction = $1.6M
• Malden Road Partial Reconstruction = $11.8M
• Front Road Partial Reconstruction = $5.5M
• CAF Tree Project = $1.3M
• Water Meter and Transmitter Project = $2.2M
• LED Streetlight Project = $2.8M

Total Capital Expenditures = $213,166,000

Budget Summary

$ Values % Change 2019 General Levy $34,404,200 2020 General Levy $36,705,800 2020 Change in Municipal Levy $2,301,600 +6.68% Less: Impact of Growth Related Assessment Increase (from new construction) ($855,000)

• 2.49%

Proposed change in Municipal Levy net of growth related assessment increase $1,446,600 +4.20% Proposed Municipal tax rate increase +0.00%

Budget Summary

$855,000 funding from Growth

Additional Capital Replacement Costs

• Road
• Storm sewer
• Watermains
• Wastewater mains
• Fire hydrants
• Playground equipment
• Machinery to cut parks
• Etc.

Additional Operational Costs

• Garbage collection/disposal
• Snow removal
• Infrastructure repairs
• Additional police resources
• Additional fire resources
• Additional parks to cut
• Higher attendance at Vollmer
• Etc.

Budget Summary

2019 General Levy $34,404,200 2020 Status Quo / Contractual / Legislative Increases $655,700 Proposed 2020 Base Budget (General Levy) $35,059,900 2020 Proposed Growth and Service Level Increases $1,645,900 2020 Proposed Budget (General Levy) $36,705,800 Total Proposed Budget Increase $2,301,600 Less: Affect of Assessment Growth from New Construction $855,000 Less: Affect of Assessment Growth on existing properties $1,300,000 Less: 2019 Levy Increase Carry forward $146,600 Estimated funding required from tax rate increase $-

Budget Overview

2020 Proposed Budget 2019 taxes on $100,000 of Assessment 2020 Taxes on $100,000 of Assessment Affect on $100,000 of Assessment Proposed Municipal Tax Rate Change +0.00% $965.90 $965.90 $0.00 County Tax Rate Change (ESTIMATE) +1.30% $482.99 $489.27 $6.28 Education Tax Rate Change (ESTIMATE)

• 4.00%

$161.00 $154.56 $(6.44) Total Tax Rate Change (ESTIMATE) 0.00% $1,609.89 $1,609.73 $(0.12)

Town of LaSalle

Water and Wastewater Overview

Municipal User Charges 2019 User Rate Proposed 2020 User Rate Change Annual Average User Cost (Using 252 m3/yr) 2019 2020 Change Quarterly Base Residential Water Meter Rate

$15.00 $15.00

• $60.00

$60.00 $0

Quarterly Watermain Replacement Charge

$33.00 $37.50 +$4.50 $132.00 $150.00 $18

Water Consumption (0-81 m3)

$1.05 $1.10 +$0.05 $264.60 $277.20 $12.60

Water Consumption (81-135 m3)

$1.22 $1.28 +$0.06 $0 $0 $0

Water Consumption (Over 135 m3)

$1.33 $1.40 +$0.07 $0 $0 $0

Wastewater Surcharge

100% of water 100% of water

• $264.60

$277.20 $12.60

Quarterly Wastewater Capital Replacement Charge

$22.50 $27.00 $4.50 $90.00 $108.00 $18 $811.20 $872.40 $61.20

Town of LaSalle

Water & WasteWater Comparison

$540 $521 $577 $603 $474 $466 $474 $444 $314 $893 $905 $582 $545 $575 $477 $372 $342 $348

$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Amherstburg Windsor Essex Lakeshore Leamington Tecumseh LaSalle 2020 LaSalle Kingsville

2019 Water & Wastewater Charges on a Home using 240 m3

• f water annually

Water Wastewater

LaSalle 2019 LaSalle 2020

More / Better Services Higher Demand to live in LaSalle More growth More $ from taxes / less financial impact on existing tax payers

Delegations

Departmental Presentations

Town of LaSalle

MPAC Reassessment

• MPAC performs a reassessment every 4 years on all

properties in Ontario

• The reassessment updates the value of all properties in

Ontario to the market value as at January 1, 2019

• Municipalities have no control over what values are given

to individual properties

• Property owners can challenge their assessed value by

filing complaints to the Assessment Review Board (ARB)

• 2020- Reassessment will affect 2021 through 2024

budgets and tax rates

Town of LaSalle

Why is 2020 Reassessment Different?

• Since the last reassessment in 2016 (based on 2015

property values), the AVERAGE property value has increased 50% on average.

• 12.5% average increase each year
• Offset property value increase with a tax rate decrease
• Challenge: The range of property value increases will

vary significantly

Town of LaSalle

Scenario to explain future reassessment challenge

• Average existing property value is going up 50% over 4

years = 12.5% per year

• We will need 2.5% increase in levy from existing properties

each year for inflation

• Therefore, we will decrease tax rate by 10% each year

(12.5% value increase less 10% tax rate decrease = 2.5%

• avg. tax bill increase)

Town of LaSalle

$200K to $360K (80% increase) (20% increase / yr) $200K to $360K (80% increase) (20% increase / yr) $200K to $360K (80% increase) (20% increase / yr) $600K to $720K (20% increase) (5% increase / yr)

Total assessed value increasing from $1.2 M to $1.8M = 50% increase = 12.5% increase / yr

Town of LaSalle

20% value increase/yr

• 10% tax rate decrease

= 10% tax bill increase/yr 5% value increase/yr

• 10% tax rate decrease

= 5% tax bill decrease/yr 20% value increase/yr

• 10% tax rate decrease

= 10% tax bill increase/yr 20% value increase/yr

• 10% tax rate decrease

= 10% tax bill increase/yr Total 12.5% value increase/yr

• 10% tax rate decrease

= 2.5% avg. tax bill increase

Town of LaSalle

Plan to address this issue

• Communication throughout 2020 to educate

and prepare residents for 2021-2024

• Social Media
• Local Newspaper
• Tax and Water Bill inserts
• Website
• Newsletter