TOWN OF SHELBURNE 2020 DRAFT BUDGET Council Presentation November - - PowerPoint PPT Presentation

TOWN OF SHELBURNE

Council Presentation November 11th, 2019

2020 DRAFT BUDGET

SUSTAINABLE ~ ENGAGED ~ LIVABLE

1

• 2. Table of Contents
• 3. 2020 Budget Timeline
• 4. 2020 Amount to be Raised by Taxation
• 5. 2020 Budget Framework
• 6. Throughout the Year

7. Revenue Comparison (2019 vs 2020) 8. Expenditure Comparison (2019 vs 2020)

• 9. Taxpayer (Homeowner) Impact
• 10. Assessment Comparisons
• 11. 2020 Organizational Chart - Staff
• 12. Salaries & Wages by Department
• 13. What Does your Tax Dollar Go Towards?
• 14. General Capital Projects & Funding Sources
• 15. Water & Sewer Operating Budgets
• 16. Water & Sewer Capital Budgets & Funding Sources
• 17. Infrastructure Ontario Debenture Loan Summary
• 18. Estimated Reserve Summary
• 19. Thank You

2

• 2020 BUDGET TIMELINE -

Nov 25 2019 Dec 2 2019 Dec 16 2019 Nov 11 2019 Nov 18 2019

Council Budget Meeting Special Budget Meeting Public Budget Meeting

Adopt By Motion Adopt By By-Law

3

There is a legal requirement under the Municipal Act (Section 290(1)) for a local tier Municipality to prepare and adopt a budget including estimates of all sums required during the year for the purposes of the municipality Section 290(2) & (4) of the Municipal Act states that a Municipality shall provide all current year estimated revenues and expenses including any surplus or deficit which resulted from the previous year

2020 AMOUNT TO BE RAISED BY TAXATION

W hy d o we p re p a re a b u d g e t

Operating Expenses

$9,381,130 $1,901,830 $7,479,300

Operating Revenues To be Raised by Taxation

EXPENSES REVENUES TAXATION

$ $

$

4

2020 Budget Framework – 7.54% over 2019

For Emergency Services Accommodation Reserve - $200,562

2.88% Levy

For future Parks & Recreation Capital Projects - $149,586

2.15% Levy

For Town Hall & Police Services Emergency Preparedness - $50,000

Generator - .72%

For Emergency Management Future Needs - $5,000

New Reserve .07%

Leaving $119,113 as part of the regular inflationary and cost of living operating expense increase

Balance 1.71%

The Unavoidable

• Of the 2020 Taxable Assessment

Base, Residential Assessment makes up 87%

• In 2020, Boards of Management

make up 38% of the towns annual

• perating expenses

Council’s Strategic Priorities

The Strategic goals of Sustainability, Engagement, and Livability are identified within many projects – some having multi-year budget funding requirements

2020 Budget Framework

Adopted by Council October 7, 2019 Max 8% Levy Increase

5

Notices of Motion

For 2020 Budget

Requests to Council

Motion – July 8, 2019

to obtain costing to pave the northernmost lane of Fiddle Park – quotation received for $56,275 – not included in the draft 2020 budget.

• Discussion and Council decision required.
• Could be funded from the new 2% Levy

for future Parks and Recreation capital projects Reserve

Email Request from SPS October 3, 2019

to include $37,000 for front entrance and administration upgrades on police side – not included in the draft 2020 budget.

• Discussion and Council decision required.
• Could be funded from the new 2.88% Levy

for future Emergency Services Accommodation Reserve

2020 Municipal Grant Funding - Process changed for this year to include a Council presentation session in October - which allowed all grant applicants an opportunity to share their project details directly with council and engage in constructive conversations. This exercise also allowed for collaboration between grant applicants with similar goals and events. Council’s decision with respect to funding allocations are outlined in the draft 2020 budget document – page 36

Throughout the year…..

Sports Memorial Petition to name a ball diamond after Gary Galbraith Sept 2019 Council Meeting Additional (4th) Flagpole for Townhall – April 2019 Council Meeting Legion request for corner improvements - foot traffic safety Sept 2018 Council Meeting Many Targets & KPI’s have been identified with respect to Council’s Goals of Sustainability, Engagement & Livability

1 2 3 4

6

Operating Revenues 2019 2020 Difference Percentage Explanation Police $ 124,544 $ 122,994 $ (1,550)

• 1.24%

Grant Reductions Public Works $ 70,900 $ 110,400 $ 39,500 55.71% Increase in Cemetery Revenues General Government & Town Hall $ 904,489.47 $ 975,463.17 $ 70,974 7.85% OMPF, POA & Bank Interest Recreation & Culture $ 46,850 $ 56,900 $ 10,050 21.45% Transfers from Reserves For Community Garden Planning & Development $ 500,995 $ 589,074 $ 88,079 17.58% Increased Planning Revenues For Development Fire Protection $ 10,000 $ 12,000 $ 2,000 20.00% Increase in Bell Tower Revenue Other Protective Services $ 48,000 $ 35,000 $ (13,000)

• 27.08%

Reallocation of Cannabis Grant To be Raised by Taxation $ 6,955,039 $ 7,479,300 $ 524,261 7.54% Levy Increase TOTAL Revenues $ 8,660,817 $ 9,381,131 $ 720,314 8.32%

OPERATING REVENUES

7

OPERATING EXPENSES

Operating Expenditures 2019 2020 Difference Percentage Explanation Police $ 2,620,571 $ 2,883,023 $ 262,452 10.02% Salaries, New Admin Fees Public Works $ 1,835,806 $ 1,942,177 $ 106,371 5.79% Storm sewer Cleanout General Government & Town Hall $ 1,557,049 $ 1,765,390 $ 208,341 13.38% Tsf to Capital/ New Levy for Emergency Services Accommodation Reserve Recreation & Culture $ 671,293 $ 831,816 $ 160,523 23.91% New Levy for future Parks and Recreation Planning & Development $ 1,210,593 $ 1,135,610 $ (74,983)

• 6.19%

Prior year projects that are now complete Fire Protection $ 374,553 $ 401,776 $ 27,224 7.27% Capital Contribution increased Council & Committees $ 168,396 $ 166,958 $ (1,438)

• 0.85%

Reduced Strategic Planning Expenses Other Protective Services $ 222,557 $ 254,381 $ 31,824 14.30% Full year with benefits; Tsf to Capital for By-Law Car TOTAL Expenditures $ 8,660,819 $ 9,381,130 $ 720,313 8.32%

8

Taxable Assessment Increase 5.27%

• Of which growth is approximately

1.13% Tax Rate Increase 1.58% Tax Levy Increase 7.54%

HOMEOWNER TAX IMPACT

~ Town Portion Only ~

2020 Summary based on this budget

Based on an average 2020 Single Family Home Assessment of 325,895 2020 is the fourth year of a four-year phased-in assessment

$123.85/year $10.32/month 5.5% Increase

9

ASSESSMENT COMPARISONS

2019 Assessment 2020 Assessment 2019 Taxes 2020 Taxes Annual Increase Percent Increase Average Residential 313,774 325,895 $ 2,250.68 $ 2,374.53 $ 123.85 5.50% William Street – Town House 153,000 158,000 $ 1,097.46 1,151.22 $ 53.76 4.90% Summerhill – Town House 268,000 280,000 $ 1,922.34 $ 2,040.13 $ 117.79 6.13% Greenbrook – Single Family Dwelling 440,000 470,000 $ 3,156.08 $ 3,424.50 $ 268.42 8.50% Summerhill – Single Family Dwelling 448,500 459,000 $ 3,217.05 $ 3,344.36 $ 127.30 3.96% Mature Subdivision (2001) 282,025 290,700 $ 2,022.94 $ 2,118.09 $ 95.15 4.70% Mature Neighbourhood (1963) 215,000 224,000 1,542.18 $ 1,632.10 $ 89.93 5.83%

10

Operator/Labourers 6 Full Time 4 Winter Seasonal 4 summer Seasonal

Taxation Coordinator / Accounting Clerk GIS Coordinator

TOWN OF SHELBURNE - Organizational CHART

DIRECTOR OF DEVELOPMENT & OPERATIONS Public Works Supervisor DIRECTOR OF FINANCIAL SERVICES / TREASURER Deputy Treasurer / Payroll Compensation DIRECTOR OF LEGISLATIVE SERVICES / CLERK Municipal Law Enforcement Officer

OCWA

CAO

Marketing / EDC Coordinator PLANNING ENGINEERING HUMAN RESOURCES

Utility & Public Works Coordinator Admin Assistant / Reception

Reception/Customer Service Representative (Contract)

Utility Supervisor Utility Operator/Labourer Crossing Guards Project Coordinator / Deputy Registrar Custodial Services Attendant Building Superintendent

CONTRACTS MANAGEMENT REGULAR POSITION REPORTING RELATIONSHIP

11

SALARIES & WAGES BY DEPARTMENT

By-Law 1% Admin 16% Council 3% Crossing Guards 2% Development 5% EDC 2% Police 46% Town Hall 2% Water/Sewer 5% Works 18%

12

$1.00

$0.37 $0.25 $0.11 $0.10 $0.07 $0.05 $0.02 $0.03

Other Protective Services Public Works Services General Government & Town Hall Council & Committees Fire Protection Planning & Development Recreation & Culture Police Protection

What Does Your Tax Dollar Go Towards?

13

GENERAL CAPITAL PROJECTS

Good to Know:

The Town should be investing annually in Capital Infrastructure equivalent to what the annual amortization expense is on current assets. 2018 Amortization for General Capital was $1,069,039

New By-Law Car $25,000

BY-LAW

HVAC Upgrades $187,845 Generator $50,000

TOWNHALL

$950,208 Paving, Debt & Remediation

INFRASTRUCTURE

New Cruiser $33,000 Equipment $13,500

POLICE

Mini Excavator (shared with Cemetery) $85,000

EQUIPMENT

$1,344,553

2020 Capital Projects funded by:

• Reserves – 58%
• Tax Rates – 10%
• W/S Rates – 5%
• Gas Tax – 8%
• Grants – 19%

14

Staff are in the process of negotiating a 10-year contract with the Ontario Clean Water Agency (OCWA) for the Town’s Water and Wastewater needs The proposed contract will provide continuity of service, stability of programs, improved long term capital planning, and collaborative investment on many projects OCWA staff will be present at the November 25th, 2019 Council meeting to present their proposal to Council

OCWA Contract Renewal

Water & Sewer Operating Budgets

Overall 5% increase in Water Budget Revenues

W

Overall 10% increase in the Sewer Budget Revenues

S

Sewer Water

Water and Sewer Rates are set in accordance with By- Law 57-2017. The base charge for both water and sewer have increased 2.4% from $24.50 to $25.10 per month each. The metered rates have also increased in accordance with the by-law and represent an increase of 1.6% for water and 7.1% for sewer. Staff are anticipating approximately 120 more home

• ccupancies in the fall of 2020 and have accounted for

these additional estimated revenues which, because the water and sewer budgets are self contained , appear as increases of 5 and 10 percent respectively NOTE: Water & Sewer Rates are under review

What does this mean?

15

WATER & SEWER CAPITAL PROJECTS

2020 Capital Projects funded by:

• Reserves – 44%
• Rates – 12%
• DC’s – 5%
• Grants – 39%

*unsuccessful grant will mean Long Term Debt*

Good to Know:

The Town should be investing annually in Capital Infrastructure equivalent to what the annual amortization expense is on current assets. 2018 Amortization for W&S Capital was $935,017

$1,770,000

WELL 3

$242,000

SCADA

$125,000 Sewer $155,000 Water

MAJOR REPAIRS

$266,430

DEBT

$356,160

WATER STORAGE

$3,168,990

WELL 7/8

$254,400

16

2020 Ending Balance – Current Debt per Household - $1,530.25

Original Debenture Loan Term 2020 Opening Balance 2020 Total Payment Principal Interest 2020 Ending Balance Matures Remaining Years Sewage Treatment Plant Phase II $ 1,750,000.00 20 $ 720,315.32 $ 113,501.16 $ 94,897.98 $ 18,603.18 $ 625,417.34 2026 6 Sewage Treatment Plant Phase III $ 1,549,625.00 20 $ 1,007,660.39 $ 115,392.04 $ 73,737.54 $ 41,654.50 $ 933,922.85 2030 10 Water Meter Loan $ 1,071,948.18 20 $ 799,738.41 $ 74,507.80 $ 47,480.46 $ 27,027.34 $ 752,257.95 2033 13 Well #7 $ 1,229,396.82 20 $ 1,065,000.20 $ 82,942.42 $ 50,314.35 $ 32,628.07 $ 1,014,685.85 2036 16 Sister Streets $ 1,760,000.00 10 $ 1,277,456.61 $ 200,207.10 $ 169,073.69 $ 31,133.41 $ 1,108,382.92 2026 6 TOTALS $ 7,360,970.00 $ 4,870,170.93 $ 586,550.52 $ 435,504.02 $ 151,046.50 $ 4,434,666.91

INFRASTRUCTURE ONTARIO ~ DEBENTURE LOANS

17

RESERVE AMOUNT

Restricted Reserves $ 934,462.52 Admin/Townhall/By-Law/HR $ 248,437.27 Rec & Culture $ 336,675.86 Police $ 589,161.35 Water $ 1,373,693.73 Sewer $ 3,206,174.11 Works/Roads/Cemetery $ 1,875,125.69 Planning & Dev Res $ 184,403.67 EDC/Heritage/Façade $ 56,471.51 Tax Stabilization $ 275,000.00 *Parks & Recreation Levy $ 149,586.00 *Emergency Accommodation Levy $ 200,562.00 *Emergency Management Reserve $ 5,000.00 Total Reserves $ 9,434,753.71

2020 Estimated Ending Reserve Balances

18

Carey Holmes, Treasurer cholmes@shelburne.ca Shelburne.ca 519-925-2600 ext 228 Questions? More Information?

19