Transcript Presentation Public Budget Session

2010 Recommended
Budget
Public Information & Input
Session
March 11, 2010
Highlights
2
Tonight we will review
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Town’s Budget Philosophy
Budget drivers – inflation, Brooklin Community
Centre & Library, Economy/External Influences
Recommended decision packages – maintain
services/infrastructure/legislation
Proposed financing strategies
Budget Philosophy
4
Take Care
of What
You Have
Provide
Existing Core
Services
Roads
Bridges
Sidewalks
Fences
Storm Water
Signals and Streetlights
Buildings
Playgrounds
Parks Fleet
Equipment
Information Systems
Studies
Fire Protection
Arenas
Community Centres
Recreation Programs
Senior Services
Youth Camps
Special Events
Marina
Library
Animal Services
Waste Collection
Planning and By-Law
Provide for
Growth
SHORT TERM
Assessment Growth, Start Up
Reserve and Development
Charges pay for Growth Related
Projects
LONG TERM
Full analysis of growth related
operating & capital requirements
& potential sources of financing,
need for legislative change (ie.
Dc’s)
COMMUNITY OF CHOICE
What are we doing in 2010?
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5
Taking care of infrastructure
Meeting service standards under increasing demand
New Brooklin Community Centre & Library
Commitment for Downtowns, Accessibility, Land Use
Planning
Facility upgrades in partnership with Federal &
Provincial Government
New and revitalized parks
Planning for the future (OP, West Whitby,
Transportation, Waterfront, Economic Development)
Budget Overview
6
2010 Total Budget Recommended - $124M
Capital, $24.1 ,
19%
Operating, $99.9 ,
81%
7
Proposed 2.99% Tax Increase
$37 increase for the average residential
taxpayer (assessment = $289,400)
8
Whitby Population
200,000
150,000
100,000
50,000
0
1991 1996 2001 2006 2009 2011 2016 2021 2026 2031
9
Unprecedented Growth
2000

2009
42%
28,080 households

40,010 households
33%
801 kilometers of roads

10
23,400 garbage
collections per week


1,063 kilometers of roads
65%

38,485 garbage
collections per week
Unprecedented Growth
2000

2009
68%
583 acres of parks
983 acres of parks

196%
87,315 sq. feet of
Gardens maintained

11
434 Full Time
Equivalent Staff


258,495 sq. feet of
Gardens maintained
30%

565 Full Time
Equivalent Staff
Efficiencies
12
What
Benefits
Strategic Spending
on Assets
Reviewed road program and re-prioritized work to maximize benefit of
spending plus working on other capital maintenance infrastructure
Planned Capital
Maintenance
Funding
Strategic application of ongoing funding (ie. Gas tax, hydro etc.) to
ongoing capital needs
Grant Application
Successes
Brooklin CC, Central Library, IPSC, AOP, CRC, LVMA, Peel Park, Econ
Dev Strategy, Summer Student HRDC program, Active 2010 Grant, RA
Sennett After School Program, Port Whitby Sustainability Plan
Partnerships
Fire Dispatch, Animal Services, Soccer Dome with WISC, Events with
community groups, Whitby Hydro to garner energy savings, Abilities
Centre, DDSB & Lifesaving Society Swimming Instruction for grade 3's,
DMIP, Purchasing Co-operative, Internet service to Library, Downtown
Façade Grant Program
Efficiencies
13
What
Benefits
Sponsorships
Arenas, Parks, Library, Events, Youth & CRC
Council Committees &
Volunteers
Identify priorities, work and/or deliver programs through Seniors Services,
Community Connection, Ashburn/Spencer, Accessibility, Downtowns, Youth, CTC,
Whitby In Bloom, LACAC, Harbour Days
Technology and
Customer Service
On-line Program Registration, Wireless Network at IPSC, BizPal, E Space Listing,
On Point, Customer Relationship Management Program (eg scheduling Special Pick
Ups, MOC issues), On-line Parking Ticket Payment Option, Council Agenda &
Reports available on Town web site, Vendor Electronic Payment, Fibre Network,
Building Inspection Staff working remotely, Parks Inspection Automated, Amanda
development of processes, AVL, ProPalms, Job Postings advertised through website
Programs
Camps, Assessment Mgmt - fairness to taxpayer, In-house Legal, Self-funded
Public Marina, Pre-school programming, Fitness Membership growth
Long Term Planning
Official Plan, West Whitby Secondary Plan, Port Whitby Sustainability Plan,
Transportation Master Plan, Cullen Master Plan, Waterfront Master Plan,
Development Charge Study & By-law, CPROS (Culture, Parks, Recreation Open
Space) Master Plan, Cycling & Leisure Trails Plan, Corporate Energy Conservation
Management Plan
Details
14
Capital Budget &
Nine Yr Forecast
Plans for and identifies
how to pay for
development and
maintain infrastructure
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Taking Care of Existing Assets
Estimated Capital Assets $1.73 Billion (2009)
2,000,000,000
1,800,000,000
1,600,000,000
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
-
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12
Street Lighting
Fences
SWM Ponds
Fleet & Equipment
Bridges and Culverts
Sidewalks
Land Improvements
Storm Lines
Buildings
Roads
Capital Maintenance Funding
Annual Capital Maintenance Funding
2009 Base Funding
Capital Inflation 7% Overall
2010 Base Funding
$12.8 M
$0.9 M
$13.7 M
Note: Inflation Similar to 2009 Projection
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Commit Ongoing Base Funding to Manage Existing Assets
$13.7M
Studies & Misc, $0.1 , 1%
Signals & Streetlights, $0.3 ,
2%
Fences, $0.3 , 2%
Storm Sewer, $0.4 , 3%
Bridges, $0.4 , 3%
Parks, $0.5 , 4%
Equipment, $0.6 , 4%
Roads, $6.0 , 44%
Sidewalks, $0.7 , 5%
Management Info Systems,
$0.8 , 6%
Facilities, $1.3 , 9%
Fleet, $2.3 , 17%
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Annual Capital Maintenance Funding
2010 Base Funding
Ongoing Funding
Recommended:
Downtowns
Accessibility
Land Use Planning
2010 Ongoing Base Funding
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$13.7 M
0.25
0.20
0.25
$0.7 M
$14.4 M
Annual $14.4M Maintenance Requirement
& Funding Sources
$16.0
Required Funding, $0.3
$14.0
Recommneded
Decision Packages,
$0.7, 5%
Inflation, $0.9, 6%
Hydro Revenues, $1.0
$12.0
Gas Tax RF, $3.4
$10.0
$8.0
$6.0
Maintenance Reserve
Contribution, $9.7
$4.0
2009 Base, $12.8,
89%
$2.0
$0.0
Recommended Annual Maintenance Funding
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18
Funding Source
GROWTH
Projected Ten Year Growth Related Needs by Assets
$240M
Equipment, $0.5 , 0%
Signals & Streetlights, $5.6 ,
2%
Sidewalks, $7.0 , 3%
Cycling & Multi-use Pathways,
$0.3 , 0%
Studies & Misc., $7.1 , 3%
Fleet, $7.2 , 3%
Bridges, $13.0 , 5%
Storm Sewer, $13.9 , 6%
Roads, $118.7 , 50%
Facilities, $27.4 , 11%
Parks, $39.7 , 17%
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Capital Growth Projects
SHORT TERM
Assessment Growth, Start Up Reserve and
Development Charges pay for Growth Related Projects
(2008 DC Study)
LONG TERM
Full analysis of growth related operating needs and
potential sources of financing will be completed in 2010
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Other Recommended Capital Projects
Brooklin Streetlighting
$0.95M
application for 50% Federal Funding &
remaining portion funded by reserves
(one time no impact on tax rate)
Sustainability Study
funded by reserves
(one time no impact on tax rate)
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$0.1M
Operating Budget
Funds the day to day
costs of delivering
programs and services
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2010 Draft Budget
Expenditure by Category ($100M)
Capital &
Interfund
Transfers,
$28.7, 29%
Human
Resources,
$47.1, 46%
Materials,
Supplies &
Utilities, $14.5,
15%
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Purchased
Services, $9.6,
10%
2010 Draft Budget
Sources of Revenue ($100M)
Other
Revenues,
$38.4, 38%
Provincial &
Federal
Support, $0.1,
0%
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Property Tax
revenue, $61.5,
62%
The Impact of Inflation
The Municipal Price Index – the impact of providing municipal services –
is going up at a rate that exceeds the Consumer Price Index
Up 3.6%
$2.5M
The Consumer Price Index measures
the average annual increase in the
price of goods and services that a
typical household would purchase over
the year, eg. Food, shelter, clothing,
automobile, entertainment, etc.
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The Municipal Price Index measures
the average increase in the price of
goods and services that the Town
would purchase over the year, eg.
Remuneration increases, insurance,
fuel, capital, service contracts etc.
Brooklin Community Centre
and Library
Annual
Ongoing
Cost
2011 Tax
Impact
Community Centre
Library
$
$
518
277
$
$
200
85
$
$
318
192
Total Centre & Library
$
795
$
285
$
510
Tax Impact
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2010 Tax
Impact
1.37%
0.49%
0.88%
Economy & Other External Influences
Reduced Planning Revenues
Reduced investment income - lower
interest rates
Bingo Hall Revenues lost due to closure
Increased Tax related revenues
Other Miscellaneous Changes
Total
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$200
0.34%
$350
$140
-$255
$43
0.60%
0.24%
-0.44%
0.02%
$478
0.82%
Staffing Decision Packages
# of
requested
FTEs
2010 Net
Operating
Impact
2011 Net
Additional
Operating
Impact
Net
Annualized
Operating
Impact
Seniors Programmer
0.34
13,755
22,098
35,853
Recreation Program Coordinator – Children
0.47
14,282
9,251
23,533
Marina Attendant – 9 months temporary *
0.13
0
0
0
0.94
28,037
31,349
59,386
Construction Inspector III
1.00
0
0
0
Driver Trainer & Equipment Safety Supervisor
1.00
24,950
60,050
85,000
Waste One Man Packer ***
1.00
14,000
25,530
39,530
Forestry Crew
1.60
76,825
26,175
103,000
Parks Garbage Crew
1.50
66,500
23,350
89,850
Total
6.10
182,275
135,105
317,380
Grand Total
7.04
210,312
166,454
376,766
Positions
Community and Marketing Services
Total
Public Works
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* No impact on tax rate since funded by Marina operations ** No impact on tax rate since costs recovered through capital program
*** A garbage packer - mini side loader is included in the 2010 capital budget (see capital project # 30130401 on page 553)
Operating Budget Summary
$(000)
Inflation
Brooklin CC & Library
Economy/External
Staffing
Total Draft
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$2,481
285
478
300
$3,544
4.27
0.49
0.82
0.52
6.10
%
%
%
%
%
Operating & Capital Budget Summary
2010 Draft
Operating Impact
Capital
Total Draft Tax Impact
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3.544
6.10%
0.3
0.52%
3.844
6.62%
Options
Target Discussion
OPPORTUNITIES
ISSUES
33
Reserves & Reserve Funds
(Uncommitted Balances, $’s in millions)
Growth
Development Charges
Reserves
Maintenance
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$42.6
$13.2
$55.8
$8.8
Program
Program Specific
$14.4
External Boards/Committees
$0.3
$14.7
Stabilization
(includes Federal Gas Tax, Grants,
(Winter Control, Insurance,
Move Ont, Provincial, Roads and Bridges
Contingencies, Tax Rate
Invest Ontario, Parks)
Stabilization, Working Funds)
$5.6
2010 Debt Capacity
$176M
(Ministry of Municipal Affairs & Housing)
Taxed Based Town Debt,
$17.4 , 10%
Remaining Debt
Capacity, $158.6 , 90%
Debt Per Capita - 2008
Pickering $206
Ajax
191
Whitby
164
Oshawa
644
Clarington 414
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Recommended Financing Strategies
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1)
Prepay $10M of debt using available reserve funds
Result
Ongoing debt charges redirected to support ongoing needs.
Reserves still exist - $13.5 – Program and Maintenance
2)
Eliminate $700,000 annual contribution to general reserves
Result
Ongoing revenues redirected to support operations
Tax Impact Summary
37
Operating & Capital Budget
Less
Hydro Revenues & Use of
Reserves for debt prepayment
6.62 %
Net tax impact
2.99 %
3.63 %
Other Municipalities Tax Increases
38
Pickering
3.9% - March 29th approval
Ajax
2.75% - approved
Oshawa
0.9% - approved
Clarington
2.97% - March 1st approval
Oakville
3.5% - approved
Burlington
6.55% - March 9th approval
Mississauga
1.25% - approved
Milton
3.24% - approved
Markham
0% - approved
Brampton
4.4% - approved
Ottawa
4.9% - approved
Where Your Tax Dollars Go
Education,
$729, 17%
Whitby, $1,283,
31%
Region, $2,191,
52%
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$4,203 estimate based on 2009 Residential Average
What You Get for Your Draft 2010 Taxes
Whitby Portion - $1,283
3
Other Community Grants
Special Events
Station Gallery
Animal Services
Crossing Guards
Mayor & Council
Economic Development & Admin
Arenas & Community Centres
Recreational Programs
Garbage, Yard Waste, & Special Collection
Winter Control
Planning, Engineering, Building & By-law
Park Design & Maintenance
Library Grant
General Administration
Transportation Maintenance
Corporate Revenues & Expenses
Fire
6
8
13
15
19
20
37
43
53
57
71
73
94
111
149
192
319
-
4
90
50
100
150
200
250
300
350
$0
41
Source: BMA 2009 Municipal Study – 2 Storey 4 brdrm 3 bath main floor family room unfinished
basement attached 2 car garage approx 3000 sq feet
Toronto (South)
Toronto (West)
King
Toronto (North)
Whitchurch Stouffville
Oshawa
Georgina
Pickering
GTA Average
Markham
Burlington
Ajax
East Gwillimbury
Whitby
Oakville
Vaughan
Aurora
Richmond Hill
Newmarket
Halton Hills
Brampton
Mississauga
Clarington
Caledon
Milton
Toronto (East)
Executive Home Comparison
2009
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
Comparison of Residential Property Taxes on a
Property Assessed at $289,400
$6,000
$5,000
$5,083
$4,029
$4,067
$4,121
Pickering
Ajax
Whitby
$4,181
$4,000
$3,000
$2,000
$1,000
$0
42
Oshawa
Clarington
Financial Condition Update
43
Growth
until recently exceeded comparator group (27%
vs13%)
Age Profile
higher proportion of youth & young adults compared
to Ontario avg
Household
Income
$110K avg – greater than comparator group
Property Taxes %
of Income
property taxes represent 3.2% of household income,
equal to comparator group avg
Employment
better than Ontario avg, however gap is narrowing
Assessment
Growth
exceed comparators until 2009, however majority is
residential
Financial Condition Update
44
Assessment Base
Lower than comparator group
Assessment
Composition
Increased reliance on residential
Building Permit
Activity
Declining since 2005 except for small increase in
2008
Reserves
Reserves, reserve funds and capital fund balance,
excluding obligatory reserves, close to median.
However annual contribution to reserves exceeds
the comparator group.
Debt
Below comparator group
Recap Tonight’s Message
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We understand that today’s economy is presenting
significant challenges to our residents
We know inflation affects the cost of Town services
to a greater degree than the average household
To be able to continue to deliver the services that
Whitby residents value, we need to maintain our
infrastructure and meet service delivery standards
in the most cost effective manner
We will continue to pursue innovative ways to best
meet the needs of Whitby residents
Recap Tonight’s Message
(continued)
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46
The Town of Whitby is in a sound financial position
Committing some reserve funds now to prepay
debt, releases revenues that can be better utilized
to address current and future needs in a financially
sustainable and more cost effective manner
The proposed 2010 budget balances all of the
above and ensures that Whitby remains a
competitive community of choice
The End
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