Transcript ASSET REPLACEMENT FUND (ARF)

Special
Committee of the Whole
2009 Budget
Strategic Direction
Monday September 29, 2008
Agenda
1. The Current Landscape
2. Response to the Landscape
3. Draft 2009 Budget Strategic Direction
4. Major Capital Priorities, current initiatives
and other considerations
5. 2009 Budget Target
6. Next Steps
The Landscape
• Economic Climate Uncertainty
• Commodity price increase affecting construction
and operating costs
• Construction market somewhat flooded
• Development slowing and transitioning
• Average indices used for long term projection
low for 2009
• Climatic Changes
• Adverse conditions increasing operating costs
The Landscape - Continued
Growth in Service and service levels
• Community continues to grow (ie. 3 new
parks in the NWQ)
• Trail and sidewalk extensions
• Recycling program introduction on trails
• High participation in Green Bin program
resulting in increased costs
The Landscape - Continued
Strategic opportunities
• Timely opportunities available now in
areas such as Economic Development (ie.
Viva), Redevelopment readiness (ie.
Secondary Planning and supporting
infrastructure) and Continuous
Improvement (i.e. Public Art Contribution,
service and revenue reviews)
Funding/Grants/Legislative Requirements
• Provincial/Municipal Fiscal Service Review
results not expected for some time
The Landscape - Continued
• Investing in Ontario Act for Capital Funding
announcement at AMO to assist Municipalities
with infrastructure works
• METROLINX funding expected for VIVA/Region
BRT and Yonge Street/Davis Drive
Improvements
• Federal Gas Tax Fund extended at maximum
level to at least 2014
• Building Canada Fund (first phase) announced
and being investigated for Fall application
• New Legislative requirements (i.e. ODA
Customer Service Access standards, PSAB)
The Landscape - Continued
• Capital Project & Operating Deferrals
• Certain Project (ie. Fairy Lake) deferred to
2009 in response to 2008 conditions
• Operational cut backs and deferrals to
2009 due to current budget projections
• Resourcing
• Entering period of significant competition
for municipal employees and leaders
Response to The Landscape
• Review and adjust as necessary the
strategy of setting the 2009 Budget
• Review and adjust as necessary
longer term financial planning (5 year
plans and 10 year Capital Plans)
• Focus on Main Priority Capital
projects and Initiatives for 2009
Response to The Landscape continued
• Seek ways to address longer term sustainability
by focusing on redevelopment and economic
development
• Seek ways to obtain further operational
efficiencies and revenue opportunities by
focusing on continuous improvement
• Increase efforts to further reduce and conserve
energy
• Review Budget Process and Projection
methodology through Internal Audit
2009 Budget Strategic Direction
1.
2.
3.
4.
Maintain existing Assets
Provide quality service
levels to a growing
community
Prioritize capital projects
that contribute to improving
long term efficiency and
effectiveness and contribute
to key areas of focus
Invest in sustainability
measures focusing on
economic development
continuous improvement,
community building and
being employer of choice
Major Capital Priorities as set out by Council
for Term
• Western Creek … complete 2007/8
• New Operation Centre … EA complete and
tendering late 2008, completion in 2010
• Community Centre Lands Redevelopment …in
Progress 2007 to 2010+
• Works Yard Redevelopment/Fairgrounds …
2010/2011+
• Old Town Hall Restoration … Design allowance
in 2008 budget … 2008-2010+
Current Major Initiatives
• Community Centre Lands Task Force
• Economic Development Strategy Finalization
and Implementation
• Cultural Master Plan
• “Redevelopment Ready”
- Secondary Plan
- CIP Update
- Incentive Program
- Studies (i.e. Infrastructure and Urban
Design Guidelines)
- DC Update…
- Branding: Rollout
Other Considerations
• Projects deferred to 2009 (ie Fairy Lake
Washroom)
• VIVA Yonge Street/Davis Drive related
• Library Planning and Capital
Considerations
• …
2009 Budget Target
Operating
Town
CYFS
Library
Assessment Growth
Subtotal
Sustainability
Eliminating non-sustainable
funding
Enhancements
Committed
Uncommitted
Investing in capital financing
Investing in Asset Replacement
Fund
TOTAL
Updated
Projected
1.52% $
1.04%
0.28%
-2.20%
0.65%
518,000
356,000
97,000
(750,000)
221,000
0.00%
-
1.95%
0.25%
0.50%
665,000
85,000
169,000
1.48%
506,000
4.18%
1,425,000
4.83% $ 1,646,000
To be
provided
as part of
2009 Budget
process
reflecting
Strategic
Direction
approved by
Council
_____
4.83%
Next Steps
• 2009 Budget Strategic Direction to be
approved in principle by Council and
applied to Draft budget
• 2009 Draft Budget to be prepared for
review with Council
• 2009 Draft Capital Projects to be
prioritized for review with Council
Operating Methodology
• Core Services primarily carried out inhouse
• Outsourcing covers
– Specialized services
– Peak services
– One time services
– Certain core services
• Provides flexibility
Operating Methodology cont..
Outsourcing includes:
• Winter Maintenance
• Street Sweeping
• Specialized Legal
Services
• Specialized Consultant
Services
• Specialized Maintenance
Services
• Animal Control
• Grass Cutting & Grounds
Maintenance
• Waste Management
• Development
Engineering and Coordination
• Water & Sewer meter
reading and billing
• After hours call-in service
• Janitorial Services
• Tree Planting & Trimming
• Construction Projects