Transcript Presentation Title 48 pt arial

Town of Newmarket
2011 Business Plan and Budget
Preliminary Overview Presentation
Special Committee of the Whole Budget Meeting
January 31, 2011
Presenters:
Bob Shelton, CAO
Mike Mayes - Director, Financial Services/Treasurer
Sharon Rose - Director, Strategic Initiatives
Presentation Purpose
 Update Members of Council on the planning and budget
(operating and capital) approval process.
 Provide Members of Council with an overview of the
• priorities that shaped 2011 business planning and budget
setting;
• 2011 Corporate and Departmental performance goals;
• 2011 budget drivers and challenges;
 Review public consultation and communication plan;
 Obtain approval of the budget schedule and future planning
dates.
2011 Budget Key Messages
 Strive to continue providing quality programs and
services to maintain a high level of community
satisfaction.
 Strive to maintain a responsible and affordable tax levy
to respond to current and future needs.
 Incorporate carry-over obligations for such items as Fire
Protection and accommodate growth and new facilities.
 Provide even more opportunities for public consultation
and engagement on budget.
A Strategic Approach
Internal &
External
Assessment
Vision,
Mission &
Principles
(Core
Values)
Goals &
Objectives
Action Plans
Performance
Measures
Monitoring,
Tracking &
Reporting
“Focus on the top goals. Make sure everyone knows the specific job to be done
to achieve the goals. Keep score. Set up a regular cycle of follow-through.”
Internal & External Assessment
 Continuous Improvement Reviews
• Let’s Make it Happen (2002)
• Results Based Budgeting – Service Level Review (2006)
• Call to Action (2009)
• Service Delivery Review – Business Planning & Budget
Process (2010)
Internal &
External
Assessment
 Human Resources Department Review (2004)
 Community Services Commission Organizational Review
(2007/08)
 Service Alignment Review (2009)
 Community Surveys (2002, 2005, 2010)
 Budget Open House (2008, 2009, 2010)
 IT Review (2007)
 PIC’S (e.g. Magna, Operations Centre, CUSP, etc.)
 Fees & Charges Review
Vision, Mission & Principles
(Core Values)
Vision,
Mission &
Principles
(Core
Values)
Well Beyond the Ordinary
Making Newmarket Even Better
Courage & Creativity
Accountability
Accessibility
Respect & Integrity
Excellence
Strategic Plan Priority Areas
Goals &
Objectives
Living Well
Living well means focusing on health, safety and the
environment to promote activity and enrich lives.
Well-Balanced
Well-balanced means encouraging a sense of
community through an appropriate mix of land uses
and amenities.
Well-Equipped &
Managed
Well-equipped and managed means implementing
policy and processes that reflect sound and
accountable governance.
Well-Planned &
Connected
Well-planned and connected means strategically
planning for the future to improve information
access and enhance travel to, from and within
Newmarket.
Well-Respected
Well-respected means inspiring partnerships and
co-operation with stakeholders that revolve around
well-being, synergy and balanced living.
Corporate Performance Goals
that shaped the departmental business plans and budgets
 Strive to maintain core services at current service levels.
 Prioritize capital projects and initiatives taking into account future
operating costs.
 Seek collaborative opportunities for effective and excellent service
delivery.
 Strive for operational efficiencies and effectiveness while demonstrating a
safety first culture and ensuring compliance with mandatory
requirements.
Goals &
Objectives
 Make investments that promote long term sustainability.
 Enhance activities that support cultural, economic and community
development.
 Continue to advance customer service excellence.
 Communicate, inform, collaborate with and engage each other.
 Provide flexibility that enables the organization to adapt to ever changing
needs.
 Continue to attract and retain employees to deliver on Council strategic
priorities.
Department Performance Goals
Goals &
Objectives
2011 Budget Approval – Next Steps
Development
and Approval
of Action
Plans
Internal &
Performance
External
Assessment
Measures
Monitoring,
Tracking &
Reporting
Budget Timelines and Process
2011 Drivers & Challenges
Mandatory/Legislative/Agreements
Accessibility for Ontarians with Disabilities Act
(AODA), minimum wage, OMERS, Fire staffing
Service Level/Growth
Fire, Asset Replacement Fund (ARF) Reserves,
winter controls, CUSP, trails, playing fields,
parklands
Revenue
Hydro dividend decrease, participation rate
changes, demographic shifts, RAS stabilizing, etc.
Expenses
Utilities, fuel
Keeping Pace
Inflationary increases, keeping competitive
Economic
Global uncertainty, recovery still underway
Environmental
More complex standards, variable weather
conditions
Technological
Greater demands (e.g. Wi-Fi, Social Media, etc.)
Opportunities
Investments by others, new ventures, grant
opportunities
Efficiency & Effectiveness
Measures / Actions / Innovations
 Partnerships (Government-to-Government, Other)
• N6 Waste Management
• Customer Service Centre/Region, etc.
• N6 training cooperative
• Business
 Optimizing 2010 Surplus
 Gapping, Hiring Delays
 Outsourcing
 Sponsorships
 Service Pricing Policy
 Trail Levy
 Recreation Surcharge
 Responsible Policies (Debt, Benefits, Cola, etc.)
 Maximizing opportunities for cost recovery (e.g. VIVA)
 Ongoing service level, department and org structure reviews
 Remaining ‘opportunity aware’ and acting on these as appropriate
2010 Budget Questions . . .
•
•
•
•
•
•
•
•
•
Where do my tax dollars go?
How does Newmarket compare?
What are the budget priorities?
What is the proposed tax increase?
How does the increase breakdown?
How will my tax dollars be spent?
What are the proposed capital projects?
What is the Town doing to stabilize the tax rate?
What’s next?
Breakdown of Tax Increase
Under Consideration (Preliminary First Draft)
Town
CYFS
Library
Total
Base
2.51%
1.67%
0.67%
4.85%
Mandatory
0.56%
0.27%
0.03%
0.86%
Growth
1.10%
2.04%
0.00%
3.14%
Enhancement
0.09%
0.09%
0.00%
0.19%
4.26%
4.07%
0.70%
9.03%
(3.14%)
0.00%
0.00%
(3.14%)
1.12%
4.07%
0.70%
5.89%
Subtotal
Assessment Growth
and Supplementaries
Total
• CYFS budget has not been reviewed by JCC.
• Library budget Growth and Enhancement items still to be
determined by Board. Also, does not reflect changes made
at the last board meeting.
2010 Tax Comparators
Measure
Newmarket
Region
Average
GTA
Average
BMA (Ontario)
Average
Detached
Bungalow
$3,151
$3,432
$3,380
$2,915
Senior Executive
Home
$5,190
$5,638
$5,675
$5,438
Multi-Residential
walk-up
$799
$822
$1,364
$1,327
Multi-Residential
mid/high rise
$960
$953
$1,460
$1,557
2010 Tax Comparators
Measure
Newmarket
Region
Average
GTA
Average
BMA
(Ontario)
Average
Office building per sq ft
$2.36
$3.02
$3.19
$2.89
Neighbourhood Shopping
sq ft
$3.63
$3.39
$3.72
$3.36
Hotel per suite
$1,246
$1,431
$1,561
$1,803
Standard Industrial sq ft
$2.05
$2.05
$2.19
$1.83
Large Industrial sq ft
$1.50
$1.35
$1.51
$1.38
2010 Tax Comparators
Newmarket
Region
Average
GTA
Average
BMA
(Ontario)
Average
Net Municipal Levy
per Capita
$1,036
$1,222
$1,208
$1,228
Net Lower Tier Levy
per Capita
$468
$507
Property taxes as a
% of Household
Income
3.50%
3.70%
Property Tax and
Water / Sewer
Rates as a
Percentage of
Income
4.20%
4.20%
Measure
4.10%
4.30%
5.00%
2011 Residential Property Tax
Under Consideration
2010
Town
2011
$ 1,289.90
$ 1,365.87
Region
1,565.50
Municipal
School Board
Total
$ Change
$
% Change
75.97
5.89%
1,607.77
42.27
2.70%
2,855.39
2,973.64
118.24
4.14%
790.92
790.92
$ 3,646.31
$ 3,764.56
$
-
0.00%
118.24
3.24%
•
Regional Municipality of York is projecting a tax increase of 2.5 to 2.7%. Tax shifts due to variable
assessment growth in the province could lower the increase applicable to Newmarket in 2010 by
0.5%. The Region continues to benefit from uploading to the Province. Last year this has allowed
them to reduce their tax increase by 3.3%.
•
School Board increase is based on historical trends. Tax shifts due to variable assessment growth
in the Region could lower the increase applicable to Newmarket in 2010 by 0.24%.
•
If the 2011 tax shift is the same as in 2010, the all-in tax increase would be 2.50%.
Budget Challenge
Town
$ increase
CYFS
$ increase
Library
$ increase
Total
$ increase
Tax
% Increase
Increase from 2010 Base
858,803
661,656
273,049
1,793,508
4.53%
Gapping reduction
150,000
150,000
0.38%
Increase in winter control
394,434
394,434
1.00%
Hydro dividend decrease
137,500
137,500
0.35%
OMERS
221,316
303,912
0.77%
35,096
35,096
0.09%
1,069,389
1,069,389
2.70%
361,978
0.91%
Dispatch service
Additional firefighters
CUSP
361,978
70,596
12,000
Budget Challenge
Town
$
CYFS
$
Library
$
Total
$
Tax
Increase
%
Other growth
requests
809,198
154,223
115,635
1,079,056
2.72%
Restoring level of
Capital Financing
296,000
(3,026)
(7,678)
285,296
0.72%
Planned Increase in
ARF contribution
631,780
143,366
30,586
805,732
2.03%
119,406
119,406
0.30%
Monday service
Other Enhancement
requests
Subtotal
205,809
41,585
(1,400)
245,994
0.62%
4,066,818
2,172,885
541,598
6,781,301
17.11%
Budget Reductions
Town
$
CYFS
$
Library
$
Total
$
Tax
Increase
%
Continuation of Corporatewide Gapping
(150,000)
Reduce street lighting budget
(200,000)
(200,000)
(0.50%)
(80,000)
(80,000)
(0.20%)
(115,000)
(115,000)
(0.29%)
(242,964)
(0.61%)
(216,187)
(0.55%)
Energy reserve
Increase in bank interest
De-annualize additional
firefighters
De-annualize CUSP
(150,000)
(242,964)
(216,187)
(0.38%)
Budget Reductions cont.
Town
$
De-annualize other
Growth requests
(75,216)
CYFS
$
Library
$
(40,889)
Total
$
Tax
Increase
%
(116,105)
(0.29%)
(644,492)
(1.63%)
Deferred growth
requests
(436,412)
Assessment growth
(808,621)
(808,621)
(2.04%)
Supplementary Taxes
(250,000)
(250,000)
(0.63%)
Supplementary taxes
– extra
(184,665)
(184,665)
(0.47%)
*(92,445) *(115,635)
* To be reviewed by JCC and Library Board.
Budget Reductions cont.
Town
$
Reserve Funding for
Growth items
(6,500)
Reserve Funding for
Enhance items
(80,000)
Deferred Enhance
requests
(90,016)
Total Reductions
(2,692,617)
CYFS
$
Library
$
(40,889)
(417,187)
Total
$
Tax
Increase
%
(47,389)
(0.12%)
(80,000)
(0.20%)
(119,406)
(209,422)
(0.53%)
(235,041)
(3,344,845)
(8.44%)
Further Budget Reductions
Town
CYFS
Library
Subtotal after
reductions
$1,374,201
$1,755,698
$306,557
Defer capital
financing increase
($296,000)
Defer ARF increase
($631,780)
($143,366)
$446,421
1.13%
Current budget
status
Tax Increase
Total
Tax
Increase
$3, 436,456
8.67%
($296.000)
(0.75%)
($30,586)
($805,732)
(2.03%)
$1,612,332
$275,971
$2,334,724
5.89%
4.07%
0.70%
5.89%
2011 Budget
What’s In
What’s Out
Please see 2011 Budget Growth & Enhancement Summary
26
2011 Capital Budget
• Capital Carryovers
– Funding for incomplete 2010 projects and commitments are
carried over into 2011 if still necessary.
– Council has already approved them and funding has been
allocated.
– These will be reported on in February.
• New Capital
– Spending will be limited to available funding – ARF, other reserve
funds, DC’s and Capital Financing from Operations.
– There has been no increase in these funding sources based on
the current operating budget.
– Some projects will be seeking early budget approval at the
February 28 Sp CoW meeting.
Public Consultation
& Communication Plan
 To engage the public in the budget process.
 To better inform the public of the challenges
facing Newmarket and innovative
approaches Newmarket is taking to protect
the financial sustainability of the Town.
 To demystify the budget and make it a more
understandable and approachable process.
Public Consultation
& Communication Plan
Public Consultation
& Communication Plan
Public Consultation
& Communication Plan
Next Steps . . .
DATE
ACTIVITY
February 14 (Mon)
Council Strategic Planning Workshop
February 22 (Tues)
Budget Booklets to Council
Sp CoW – Legislative Matters Orientation Session, Budget Binder
Orientation
February 28 (Mon)
Early budget approval for Capital
March 4 (Fri)
Budget Booklets to Public, Budget Information – Web Posting
March 7 (Mon)
Sp CoW – Operating & Capital Budget
March 21 (Mon)
Budget Open House, Ray Twinney Complex, 7 to 9 PM
March 26 (Sat)
Budget Open House, Magna Centre, 1 to 3 PM
March 28 (Mon)
Sp CoW – Budget (Public Meeting)
April 4 (Mon)
Sp CoW – Budget Report
April 19 (Tues)
Council – Budget Final Approval
May 16 (Mon)
Sp CoW – Budget (Commence planning for 5-year Operating, 4year Capital & 2012 Budget with Dec. 31/11 approval target)
Thank you
& Questions