Township of Horton 2 nd Public Meeting April 2, 2019 6:00 p.m. 1 - - PowerPoint PPT Presentation

Township of Horton 2nd Public Meeting – April 2, 2019 6:00 p.m.

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Budget Process

Budget Worksheets are distributed to Managers and

Committees with Payroll numbers already populated.

The Treasurer consolidated the Managers and Committees

budget requests and presented the 2019 Departmental Summary, 2019 Capital, 10 Year Capital, Reserves and Long Term Forecast schedules to the Ad Hoc Budget Committee.

The Committee met on several occasions to review all the

Schedules.

It was consensus of the Ad Hoc Budget Committee to go with

a tax levy increase of no more than 3.11% after growth. The estimated 2019 increase due to growth is equal to a levy increase of approximately $30,069. Growth is applied annually to increase in wages, utilities and materials etc.

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Budget Process Continued

The 2019 Ontario Municipal Partnership Fund (OMPF)

Allocation is $233,100. The 2018 transfer was $227,700 which is 7.5% of the 2018 Operating Expenses. This is an increase of $5,400. It is important to note that this transfer is an unconditional transfer.

From the previous public budget meeting the OMPF increase

has been directed to Winter Maintenance. This change has resulted in an amendment to the department pie chart.

It is also important to note that the Province is reviewing their

fiscal position and part of that review includes transfer payments to municipalities. It is anticipated that OMPF may be reduced starting in 2020.

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Asset Management and Long Term Financial Strategies

Our Asset Management Plan is one of the financial tools used

to guide the municipal decision making process. The Township has undertaken a Roads Needs Study in 2017 and updated the Asset Management Plan.

Council reviews the 10 Year Capital Forecast annually and

continues to amend the forecast and utilize this information for the purpose of the Asset Management Plan, Long Term Financial Strategies and the Development Charges Study. This is a living document and as such Council and Staff will continue to amend this on an annual basis. The current 10 year funding gap is $1,708,989. Note this includes assumption of a grant in 2022 for Pinnacle Road of $587,700.

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10 Year Capital Forecast - 2019-2028

Second Draft for 2019 Budget Deliberations, Previously Adopted Dec 2017

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Revenues

3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%

Municipal Tax Base 135,706 43,309 73,977 18,341 25,482 45,899 4,929 19,418 49,369 51,095 Gas Tax Reserve 40,000 135,162 91,562 91,562 95,543 95,543 95,543 95,543 95,543 95,543 Transfer from Reserves 613,091 328,927 469,895 161,925 224,475 407,305 439,605 543,355 372,360 174,225 Transfer from Lot Dev. 63,910 48,740 24,500 91,825 5,500 Fundraising 4,450 Provincial/Federal Funding (OCIF) 958,829 78,533 79,297 667,745 80,792 81,530 82,286 83,034 83,781 84,527 Total Revenues 1,815,986 634,671 739,231 1,031,398 431,792 630,277 622,363 741,350 601,053 405,390 Expenditures Unfunded Balance Forward 126,508 1,082,555 1,329,971 1,539,529 1,610,837 1,773,245 1,898,082 1,716,232 1,826,379 Gen Gov't 16,127 96,727 23,127 20,063 35,000 16,200 10,000 Fire 431,450 226,000 23,100 144,000 10,000 65,000 80,000 1,000 1,000 Roads 1,298,123 1,070,291 850,720 811,393 376,100 697,685 605,200 553,500 552,000 252,000 Landfill 36,500 10,000 20,000 2,000 Septage Recreation 160,294 182,700 89,700 265,500 117,000 5,000 25,000 5,000 142,000 26,000 Health Services Planning & Building 5,000 5,000 Total Expenditures 1,942,494 1,590,718 986,647 1,240,956 503,100 792,685 747,200 559,500 711,200 288,000 Debenture Balance Unfunded

• 126,508 -1,082,555 -1,329,971 -1,539,529 -1,610,837 -1,773,245 -1,898,082 -1,716,232 -1,826,379 -1,708,989

Note: The Capital share of Tax Base from the 10 year operating budget. Assuming a 3.5% annual levy increase including growth. See Long Term Sustainability File. Note: Hard top road values have been revised to reflect a condition rating target of 6. That means road values are based on 6 not 10.

Asset Management and Long Term Financial Strategies Continued

 It is important to note that the Township will continue to develop

policies as required under the Infrastructure For Jobs and Prosperity Act, 2015. The first policy must be adopted by Council by July 1, 2019, which Council adopted March 19th, 2019.

 Our financial strategies to date will never maintain our road

infrastructure without funding from other levels of government.

 It is imperative that we address the infrastructure gap. Our 10 year

forecasted budget includes an annual levy increase of 3.5% but this will be deliberated each year through the annual budget process.

 In 2017 the CAO/Clerk commenced with a Strategic Plan for the

Township which Council and Staff will use as a guide over the next few years.

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New Services for 2019

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• Cyber Attack Insurance
• Increase in OPP Billing
• Roads Seasonal Employee from 24 weeks to permanent
• Johnston Road Debenture
• Increase to both Road Side and Winter Maintenance
• New Cycling Event
• Water Rescue Agreement – with the Town of Arnprior
• Increase in Fire Wages for Training of new Volunteer Fire

Fighters

• Increase in Dental Insurance Coverage for All Departments
• Increase in Recreation Advertising

8 TOWNSHIP OF HORTON #4 - 2019 BUDGET SUMMARY - FOR PUBLIC BUDGET MEETING 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 PROPOSED % Variance

• ver 2018

Value Variance

• ver 2018

GENERAL GOV'T

• 1,793,787
• 1,845,921
• 1,921,710
• 2,021,215

5.2%

• 99,505

Notes: Includes Growth Est of $30,069 and 3.11% Levy , Increase Dental to Level IV $450 OMPF $???, Insurance Increase of $4,915 for Cyber Coverage, Increase Computer $3,000 Reduction for Student $4,151, Reduction (Deferral) in Scanning Documents $6,500, Reduction Bldg Mnt. $6,000

PROTECTION 442,085 476,390 482,174 497,516 3.2% 15,342

Note: OPP Billing Increase is $10,267 plus depletion of OPP reserve of $5,000 is .07% levy increase.

TRANSPORTATION 811,717 833,296 885,667 966,112 9.1% 80,445

Notes: Includes a seasonal employee from 24 weeks to permanent $44,132, Johnston Road Debenture Increase $31,787, Road Side Mnt and Winter Mnt Each $5,000 Increase Matl's Reduction $2,000, Gravel Mnt $6,000 Reduction, Bldg Mnt $14,000 Reduction Storm Sewer Reduction $2,000

ENVIRONMENT 238,530 218,651 221,079 217,974

• 1.4%
• 3,105

Overall Reduction to Offset Roads Seasonal to Permanent

RECREATION 140,566 150,097 161,584 162,728 0.7% 1,144

Notes: Projects Dependant Upon Funding - Tables/Chairs, Soccer Fencing Increase to Advertising $1,000, New Cycling Event Net Revenue $2,000, Reduction in Debt $6,306 Increase for Student $4,151 (from General Government), Boat Launch Reduction $2,500

HEALTH SERVICES 30,739 32,537 33,366 33,837 1.4% 471 PLANNING 300 1,000 400

• 60.0%
• 600

FIRE 129,850 134,950 136,840 142,648 4.2% 5,808

Note: $5,000 Increase in Wages, $3,000 Increase for Water Rescue Agreement, $1,500 Increase for Extrication Agreement, Overall Reduction Including New Revenue $3,692

BUILDING 100.0% (SURPLUS) / DEFICIT

Notes: Total Departmental Insurance Coverage Increase of $3,057, Growth Covers 2% Wage COLA

1% Levy Increase is = $22,611

Budget Considerations Levy % Change 10 Yr Financial Plan - adopted December 2017 3.5 Johnston Rd Debenture 1.4 OPP Increase 0.07 4.97

Total Levy Increase After Growth 3.11%

2019 Departmental % of Operating Budgets

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2016 to 2019 Departmental % of Operating Budgets

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TOWNSHIP OF HORTON 2019 PROPOSED CAPITAL BUDGET Financing Department Item Opening Unfinanced 2018 Budget Taxation Fees/ Charges/ Donations

• Dev. Chgs.

Grants Gas Tax Reserves Estimated Closing Unfinanced

• Gen. Gov't

Office Construction Loan - 2009 56,443.27 16,127 40,316.27 Sub-Total 56,443.27 16,127 40,316.27 Fire Pumper 431,450 51,500 379,950 0.00 Sub-Total 0.00 431,450 51,500 379,950 0.00 Roads Garden of Eden Rd 97,247.50 27,785 69,462.50 Thomson Rd 150,000.00 50,000 100,000.00 Johnston Rd 245,000.00 24,500 220,500.00 Bingham Rd (Gravel) 7,500 7,500 0.00 Garden of Eden Rd (Gravel) 42,500 2,500 40,000 0.00 Humphries Rd (CWWF) 7,820 860 5,865 1,095 0.00 Lime Kiln Rd (CWWF) 31,500 5,500 23,625 2,375 0.00 Thompson Hill Streets 1,057,818 880,139 51,171 126,508.00 Upgrade/New Street Lights 40,200 40,200 0.00 Lawn Tractor and Trailer 8,500 8,500 0.00 Sub-Total 492,247.50 1,195,838 112,285 6,360 949,829 40,000 63,141 516,470.50 Environment Sea Containers - Siding 3,000 3,000 0.00 Debris Fencing 3,500 3,500 0.00 Gates 10,000 10,000 0.00 Compactor Truck 10,000 10,000 0.00 Monitoring Wells 10,000 10,000 0.00 Sub-Total 0.00 36,500 36,500 Recreation Change Rms Township Debt -2009 7,293.95 7,294 0.00 Land Purchase 61,000 61,000 0.00 Soccer Field Fencing 5,000 4,450 550 0.00 Community Hall - Tables/Chairs 12,000 9,000 3,000 0.00 Community Hall - Regrout Stone 25,000 25,000 0.00 Community Hall - Bar Renos 50,000 5,500 44,500 0.00 Sub-Total 7,293.95 153,000 7,294 4,450 6,050 9,000 133,500 0.00 TOTAL 555,984.72 1,816,788 135,705.95 4,450.00 63,910.00 958,829.00 40,000.00 613,091 556,786.77

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Note Years 2023 to 2027 Hidden for Presentation Purposes

Denotes Insufficient for 10 Year Capital Forecast Name Estimated Ending Balance 2018 Addition 2019 Utilized 2019 Ending Balance 2019 Addition 2020 Utilized 2020 Ending Balance 2020 Addition 2021 Utilized 2021 Ending 2021 Addition 2022 Utilized 2022 Ending 2022 Addition 2028 Utilized 2028 Ending Balance 2028 Working Funds 330,872 27,773 358,645 5,413 364,058 364,058 364,058 364,058

• GEN. GOVERNMENT

Office Equipment 42,312 5,000 47,312 6,000 40,000 13,312 7,000 20,312 8,000 28,312 9,010 6,200 32,390 Insurance 20,000 20,000 20,000 20,000 20,000 20,000 Building 10,194 5,000 4,500 10,694 5,500 15,000 1,194 7,000 8,000 194 14,000 12,000 2,194 33,675 10,000 184,594 Election 514 5,000 5,514 6,120 11,634 6,245 1,800 16,079 6,370 17,000 5,449 7,170 25,419 73,020 15,000 4,500 83,520 17,620 55,000 46,140 20,245 9,800 56,585 28,370 29,000 55,955 49,855 16,200 262,403 PROTECTION Emergency Mngt 20,581 20,581 15,081 5,500 5,500 5,500 5,500 Municipal Disaster 5,000 5,000 5,000 5,000 5,000 5,000 Cannabis Fund 10,000 10,000 10,000 10,000 10,000 10,000 Fire 403,107 33,295 379,950 56,452 33,960 90,412 34,640 9,100 25,540 35,330 3,000 57,870 39,790 140,205 Fire - Building 1,500 1,500 3,000 7,000 10,000 9,000 6,000 13,000 10,000 23,000 16,000 71,000 Building Inspection 15,661 11,275 4,386 4,386 4,000 386 386 386 445,849 44,795 391,225 99,419 40,960 105,493 34,886 43,640 19,100 59,426 45,330 26,000 78,756 55,790 232,091 TRANSPORTATION Rds - Equipment 121,521 106,500 8,500 219,521 109,700 7,500 321,721 111,944 365,000 68,665 114,233 182,898 128,860 129,841 TRAILER/MOWER TANDEM/3/4 TON Rds - Infrastructure 8,586 48,552 54,641 2,497 50,388 50,388 2,497 51,395 51,395 2,497 52,425 52,425 2,497 146,025 146,025 2,497 Asset Management 9,231 3,500 12,731 5,000 17,731 5,000 22,731 5,000 25,000 2,731 6,000 6,400 2,331 Buildings 73,705 20,000 93,705 20,400 71,446 42,659 20,808 11,000 52,467 21,224 73,691 23,433 26,385 Rds - Winter Maint. 1,000 1,000 1,020 2,020 1,040 3,060 1,060 4,120 1,195 10,940 Rds - Line Painting 516 2,500 3,016 2,550 5,000 566 2,600 3,166 2,650 5,500 316 2,950 6,250 2,216 213,559 182,052 63,141 332,470 189,058 134,334 387,194 192,787 427,395 152,586 196,592 82,925 266,253 308,463 158,675 174,210 ENVIRONMENT Landfill Site 304,285 18,100 36,500 285,885 19,500 10,000 295,385 20,890 316,275 22,310 338,585 27,060 470,435 Landfill Site Bldgs 1,000 1,000 2,000 3,000 2,500 5,500 2,500 8,000 4,000 19,000 Waste Collection 6,000 6,000 310,285 19,100 42,500 286,885 21,500 10,000 298,385 23,390 321,775 24,810 346,585 31,060 489,435 RECREATION Building 130,293 10,810 132,000 9,103 30,310 39,400 13 30,915 15,700 15,228 31,535 46,500 263 35,515 6,000 125,173 0 FOR RINK 0 FOR RINK 0 FOR RINK 0 FOR RINK Equipment (No replacement Plan) 17,411 450 17,861 450 18,311 450 18,761 450 19,211 450 21,911 Kitchen Equipment 2,938 5,000 6,500 1,438 15,000 4,700 11,738 5,000 3,700 13,038 5,000 18,038 5,000 6,000 18,038 150,642 16,260 138,500 28,402 45,760 44,100 30,062 36,365 19,400 47,027 36,985 46,500 37,512 40,965 12,000 165,122 PLANNING Planning 10,995 10,995 10,000 995 995 995 995 Unallocated 41,599 32,000 9,599 3,000 6,599 1,599 5,000 5,000 5,000 INTERN FOR TREASURER Totals 1,576,821 304,980 671,866 1,209,935 320,311 361,927 1,168,319 316,427 477,294 1,007,452 332,087 184,425 1,155,114 486,133 186,875 1,693,314

Reserves – 2010 to 2019

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• 100,000

200,000 500,000 800,000 1,100,000 1,400,000 1,700,000 2,000,000 WORKING FUNDS

• GEN. GOV'T

PROTECTION TRANSPORTATION ENVIRONMENT RECREATION PLANNING UNALLOCATED Totals

Balance 2010 Balance 2011 Balance 2012 Balance 2013 Balance 2014 Balance 2015 Balance 2016 Budget 2017 Budget 2018 Budget 2019

Highlights

• 2019 budget continues to include Transfers to Reserves for

Maintenance and Replacement of the Townships Infrastructure. The Reserve Balance has grown from $603,765 in 2010 to a forecasted $1,209,935 for 2019. Reserves are utilized mostly for Capital Infrastructure.

• 2018 Amortization was $821,021 which is much greater than our

Transfer to Reserves of $304,980. If we were to raise the levy to cover amortization there would be a levy increase of 23.4% which is not feasible. (Not including replacement values)

• Increase in OPP costs from $466,229 to $476,496. Since 2007

OPP has increased 150.98%.

• 2019 budget continues with debt payments. Our debt at the end
• f 2019 will be $555,787.

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Next Steps

Pass 2019 Levy Bylaw Impact on Properties with Current Budget

• of the 1,660 properties in Horton 1,100 (66.3%) would

see an average increase of $27, 453 (27.3%) would see an average decrease of $11 (for a total of 93%). The remaining 107 (6.4%) will see an increase even if the levy was to remain at the 2018 value.

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Future Impacts

OPP Billing will continue to impact the annual levy. Lack of Long Term Funding and the increase in the

Infrastructure Deficit (Currently sits at $1,708,989) will continue to impact the condition of our Tangible Capital Assets and potentially service levels.

Further Reduction in Provincial Transfer Payments will

mean either cuts to operating service levels or postponing infrastructure repair and/or replacement and may even result in a reduction of assets if the Township cannot afford to maintain them.

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Closing Remarks

Thank you to Council, committees, and staff for their help

in preparing the 2019 budget.

This presentation along with the detailed budget is

available on our Municipal Website at www.hortontownship.ca

Questions?