Township of King Draft 2019-2022 Operating and Capital Budgets - - PowerPoint PPT Presentation

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Township of King Draft 2019-2022 Operating and Capital Budgets - - PowerPoint PPT Presentation

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Township of King Draft 2019-2022 Operating and Capital Budgets Presentation to Committee of the Whole February 25, 2019 Agenda 2019-2022 Budgets Overview STRATEGY Council Priorities CONTEXT 2019-2022 Capital Budgets

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Township of King

“Draft” 2019-2022 Operating and Capital Budgets

Presentation to Committee of the Whole

February 25, 2019

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Agenda

2019-2022 Budgets

  • Overview
  • STRATEGY
  • Council Priorities
  • CONTEXT
  • 2019-2022 Capital Budgets

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Budget Overview

Multi-Year (2019-2022) Operating & Capital Budgets

Framework, Process & Timelines

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Township of King Budget Framework

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Township of King Budget Process

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Multi-year Operating and Capital Budgets (2019-2022)

  • Operating Budget

Assumptions based on:

  • Assessment Growth (2019 @ 4.0% new development)
  • Phase-in Assessment Values to 2020 Destination Value

 2019 estimated reduction in residential tax rate (-6.8%)

  • Expiration of Collective Bargaining Agreement (March 31, 2019)
  • Non-salary expenditure requirements based on justified

departmental needs

 0.0% arbitrary increase in base budget

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Township of King Budget Process

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Multi-year Operating and Capital Budgets (2019-2022)

  • New Initiatives / Enhancements (Program Changes):
  • Total proposed program changes = 64
  • Proposed increase in staffing = 17.8 full-time equivalent positions
  • Total value of program changes

= $4.7 million

  • Non-Tax Levy sources of funding

= $2.1 million

 $0.66 million from Township Initiatives Reserve  $1.20 million from Infrastructure Reserve

  • Tax Levy sources of funding = $2.6 million

 or 6.66% (2019-2022) in 2019 $$$

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Township of King Budget Process

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Multi-year Operating and Capital Budgets (2019-2022)

  • Capital Budgets – Major Projects
  • Township Multi-Purpose Recreation Complex (2019-2023)
  • King City Library & Seniors Centre (2018-2020)
  • Nobleton Sanitary Sewer – Phases 2 and 3

 Phase 2 - Southwest quadrant, north of King Road (2018-2019)  Phase 3 - Northwest quadrant, west of Highway #27 (2020-2023)

  • Nobleton Loop – road improvements

 10th Concession (King Road to 15th Sideroad)  15th Sideroad (10th Concession to 8th Concession)

  • King Road – Urbanization (2585 King Road to Dufferin Street)
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Township of King 2019-2022 Budgets

Budget Timelines

  • User Fees & Charges, Water and Wastewater rate

recommendations to Council (December 2018)

  • Council priorities - Operating & Capital (January 2019)
  • Develop detailed business plans @ Departmental level
  • Identify Human, Capital and Financial requirements
  • Departmental Reviews with CAO and Finance staff
  • Draft Budget Report to Council (February 25, 2019)
  • Budget Report to Council for Approval (March 18, 2019)

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Township of King 2019-2022 Budgets

STRATEGY

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Township of King Strategy = Plan + Build + Operate

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Township of King 2019-2022 Budgets

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Financial Sustainability

Achieved through completion of:

  • Studies, including:
  • Integrated Community Sustainability Plan (ISCP)
  • Transportation Master Plan
  • Water & Wastewater Master Plan
  • Parks, Recreation & Culture Master Plan
  • Development Charges Background Study
  • Plan, creation of comprehensive Business Plans
  • Build, construct / rehabilitate municipal Infrastructure
  • Operate, municipal infrastructure (including: facilities)
  • Predictability of Tax Rates – Area municipal level
  • Balance operating costs / capital investments by/through a combination of:

 reserves – Infrastructure, Tax Supported Capital, Tax Rate Stabilization, etc

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Township of King 2019-2022 Budgets

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Financial Sustainability

Execution of Council approved Operating and Capital initiatives:

 Completion of new King Township Municipal Centre

  • Under construction - new King City Library & Seniors Centre
  • Under construction - streetscaping / urbanization improvements in King

City & Nobleton

  • Final stages of design – Nobleton Loop (10th Concession – 15th Sideroad)
  • Design Phase – new Township-wide Recreation Complex
  • Final stages of Official Plan Update
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Township of King 2019-2022 Budgets

Council Priorities

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Township of King 2019-2022 Budgets

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Council Priorities

  • Investment in municipal infrastructure
  • Deliver capital projects on time and on budget
  • Road (Rural) Improvements

 Conversion of Gravel to Hard Surface

  • Establish and execute long-term maintenance plan

 Prioritized re-surfacing of roads

  • Strategic acquisition of property (e.g. Nobleton Jr. Public School)
  • Strategic disposition of surplus municipal property
  • Traffic calming measures

 Speed boards / humps

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Township of King 2019-2022 Budgets

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Council Priorities (Con’t)

  • Service King – new customer service initiative
  • Township Website Redesign (joint development potential with Library)
  • Community engagement in core municipal issues / opportunities
  • Digital / In-person / Survey
  • Completion of Official Plan Review (“OPR”)
  • Improved access to Broadband connectivity
  • Train Whistle Cessation
  • Rural road garbage dumping
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Township of King 2019-2022 Budgets

CONTEXT

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$1.5 $1.5 $1.8 $3.9 $4.3 $4.6 $4.6 $0.6 $0.8 $1.5 $0.3 $3.6 $3.2 $2.9 $2.1 $2.3 $3.3 $4.2 $7.9 $7.9 $7.6

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0

2013 2014 2015 2016 2017 2018 2019 (Projected)

Millions

Tax Supported Capital (TSC) Infrastructure Total TSC + Infrastructure

Contributions to Tax Supported Capital & Infrastructure Reserves 2012 – 2018 Actual and 2019 Projected

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Reserves

December 31, 2009 to December 31, 2017

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$4.7 $5.2 $6.5 $7.1 $9.2 $11.0 $17.1 $23.3 $25.9

$0 $5 $10 $15 $20 $25 $30

2009 2010 2011 2012 2013 2014 2015 2016 2017

Millions

All categories

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Reserves (Infrastructure related)

December 31, 2013 to December 31, 2018

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$0.5 $0.5 $0.5 $1.4 $1.4 $0.1 $0.5 $0.8 $2.2 $3.1 $2.3 $1.3 $2.2 $4.4 $5.8 $8.1 $8.0 $1.4 $3.2 $5.8 $8.4 $12.6 $11.7

$0 $2 $4 $6 $8 $10 $12 $14

2013 2014 2015 2016 2017 2018 (Projected)

Millions Unfinanced Capital Tax Capital Infrastructure Total Infrastructure Reserves

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Reserve Funds

as at December 31, 2017

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$5.8 $0.4

  • $1.1

$2.0 $0.6 $0.9 $0.7 $5.9 $2.3 $5.1 $0.0

  • $0.1

$1.3 $0.6

  • $2
  • $1

$0 $1 $2 $3 $4 $5 $6 $7

Parkland Gas Tax Debentures Water (Pre-DC) DC-Admin DC-Fire DC-Parks (Outdoor) DC-Parks (Indoor) DC-Library DC-Roads & Related DC-Parking DC-Water DC-King City Sanitary DC-Nobleton Sanitary

Millions

All categories @ $24,438,099

$7,064,963 Non-DC Reserve

$17,373,135 DC Reserve Funds

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Operating Budget $ Millions

Gross Expenditures

$42.323

Gross Revenues

$41.500

Net Levy Requirement

$0.823

Proposed Tax Levy Increase (Township)

2.80%

Estimated Impact -> assessed @ $836,800 (Township portion)

$63.73

Capital Budget

(Amended 2018)

$ Millions

2019 Capital Budget

$29.3

Proposed Funding from Taxation – 2019

$4.6

  • r 15.8%

Blended Tax Levy Increase

x.xx% or $ xxx.xx

Assumptions: Region @3.37% and Education @ x.xx%

2019 Budgets at a Glance

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Township of King 2019 Budgets

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∗ Taxable Assessment for the 2019 Taxation Year

Taxable Assessment 2018 2019 % Change Residential

7,625,021,165 8,449,448,104

10.81% Farm

545,881,768 589,123,197

7.92% Commercial

293,455,984 327,730,454

11.68% Other

127,607,836 139,065,338

8.98% TOTAL (All classes)

8,591,966,753 9,505,367,093

10.63% Assessment Grow th relating to new construction 4.07% Estimated incremental assessment related to Phase-In (2017-2019) 6.56%

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2019 Estimated Tax Rate Impacts

Purpose 2019 2018

Increase (Decrease) in $ Increase (Decrease) in %

Rate Taxes ($) Rate Taxes ($)

Tow nship

0.00333238 $ 2,782.16 0.00347552 $ 2,724.81 $ 63.73 2.34%

Region of York

0.00347925 2,878.46 0.00350606 2,748.75 162.68 5.92%

Education

0.00168000 1,333.65 0.00170000 1,332.80 73.02 5.48%

Total

0.00849163 $ 6,994.28 0.00868158 $ 6,806.36 $ 299.44 4.40% 23

Assessment Assumptions: 2018 @ $784,000 versus 2019 @ $836,800 + 6.73%

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2019 Estimated Tax Rate Impacts

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Assessment Assumptions: 2018 @ $784,000 versus 2019 @ $823,200 + 5.0%

Purpose 2019 2018

Increase (Decrease) in $ Increase (Decrease) in %

Rate Taxes ($) Rate Taxes ($)

Tow nship

0.00333238 $ 2,743.22 0.00347552 $ 2,724.81 $ 18.41 0.68%

Region of York

0.00347925 2,864.12 0.00350606 2,748.75 115.36 4.20%

Education

0.00168000 1,382.98 0.00170000 1,332.80 50.18 3.76%

Total

0.00849163 $ 6,990.31 0.00868158 $ 6,806.36 $ 183.95 2.70%

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2019 Estimated Tax Rate Impacts

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Assessment Assumptions: 2018 @ $784,000 versus 2019 @ $878,100 + 12.0%

Purpose 2019 2018

Increase (Decrease) in $ Increase (Decrease) in %

Rate Taxes ($) Rate Taxes ($)

Tow nship

0.00333238 $ 2,926.17 0.00347552 $ 2,724.81 $ 201.36 7.39%

Region of York

0.00347925 3,055.13 0.00350606 2,748.75 306.37 11.15%

Education

0.00168000 1,475.21 0.00170000 1,332.80 142.41 10.68%

Total

0.00849163 $ 7,456.50 0.00868158 $ 6,806.36 $ 650.14 9.55%

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Township of King 2019 Budgets

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Proposed (2019) and Projected Net Levy Requirements (2020-2022)

Year Expenditures Revenues Change in Net Levy ($) % Change 2019

$ 42,322,528 $ 41,499,927 $ 822,601

2.80% 2020

$ 43,872,101 $ 42,985,577 $ 886,524

2.94% 2021

$ 44,775,655 $ 43,855,667 $ 919,988

2.97% 2022

$ 45,820,628 $ 44,836,207 $ 984,421

3.09%

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Township of King 2019-2022 Budgets

2019-2022 Capital Budgets

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Township of King 2019-2022 Budgets

Proposed 4-Year Capital Budget Program

  • 2019 & 2022 Fiscal Years

 to the end of the current term of Council  Combined Gross Capital Cost > $125.7 million  Total Number of Capital Projects = 138

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Approved 2018 and Proposed 2019-2022 Capital Programs 2018 ($40.9M) 2019 ($29.4M) 2020 ($40.3M) 2021 ($29.1M) 2022 ($27.0M)

$11.8 $0.2 $1.6 $10.5 $1.7 $0.1 $1.1 $19.8 $0.1 $1.2 $6.9 $1.1 $0.1 $0.2 $14.2 $0.1 $2.3 $16.7 $1.2 $0.1 $5.8 $14.5 $0.1 $2.0 $3.3 $2.1 $0.1 $7.1 $11.7 $0.1 $1.3 $2.3 $4.6 $0.1 $7.0

$0 $5 $10 $15 $20 $25

Municipal Buildings Libraries Fleet & Equipment Roads, Bridges & Culverts Parks, Recreation & Culture Information Technology Water & Wastewater

Millions 2018 2019 2020 2021 2022

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Gross Capital Cost

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$1.0 $1.1 $4.6 $12.6 $0.0 $0.3 $0.0 $7.3 $1.2 $0.5 $4.6 $12.2 $0.9 $0.2 $6.7 $3.0 $9.8 $2.1 $4.6 $14.4 $8.5 $0.8 $0.0 $0.0 $4.7 $0.8 $4.6 $8.3 $7.6 $0.3 $2.9 $3.1 $0.8 $4.6 $4.4 $9.2 $0.0 $0.0 $5.0

$0 $2 $4 $6 $8 $10 $12 $14 $16

Reserves Gas Tax & OCIF Tax Supported Capital Reserve Funds (DCs) MCFA Contributions Region of York (Streetscaping) Reserve Funds (non-DC) Debentures

Millions 2018 2019 2020 2021 2022

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Sources of Funding

Approved 2018 and Proposed 2019-2022 Capital Programs 2018 ($40.9M) 2019 ($29.3M) 2020 ($40.3M) 2021 ($29.1M) 2022 ($27.0M)

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Township of King 2019-2022 Budgets

Discussion !

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