Transcript Presentation Title 48 pt arial

Town of Newmarket
2011 Budget Presentation
Special Committee of the Whole Budget Meeting
March 7, 2011
Presenter:
Mike Mayes
Director, Financial Services/Treasurer
Presentation Purpose
 Review of 2011 Budget Process
• Budget Process Recap
• New for Today
• Possible Objectives for Today
2
Budget Process Recap
September 2010
January 31
February 17
2011 Fees and Charges
Overview of Preliminary Budget
Budget Listening Session
February 28
March 4
Budget binders distributed
Budget available for the public
• Newmarket Public Library Board
• Water and Sewer Rate Groups Budget
• Communications Tactics
3
The Town of Newmarket is
Diverse and Complex
 981 full and part-time employees
 $110 million budget
 212 km of roads, 290km of watermains, 50 km
of trails, 365 hectares of parks
 Estimated replacement value of capital assets =
$1.1 billion
 Servicing a population of 84,351 in 27,350
households
 Managing many lines of business on a
day-to-day basis
4
The Town of Newmarket is
Competitive
 Comparative tax rate – 2010 BMA study
 Customer satisfaction
• 96% of residents are satisfied living in Newmarket
• nearly 80% are satisfied with the services received
from the Town
 Newmarket is ranked 15th out of 179 Canadian
cities and towns and best place to live in York
Region
5
2011 Budget Priorities
 Strive to provide quality programs and services to maintain a high
level of community satisfaction.
 Provide for the hiring of 20 new Firefighters to meet growth and
ensure public safety.
 Maintain a responsible and affordable tax levy to respond to current
and future needs.
 Incorporate carry-over obligations to accommodate growth and new
facilities.
 Encourage public engagement and consultation in the budget process
through enhanced communication efforts.
6
2011 Drivers & Challenges
Driver /Challenge
Example
Legislation & Agreements
Meeting legislated requirements and agreements [i.e.
Accessibility for Ontarians with Disabilities Act (AODA),
CYFS]
Service Level and Growth
Service Delivery Levels, Community Safety/Emergency
Services, Asset Replacement Fund Reserves, Parks, Trails &
Open Spaces
Decreased Revenues
Participation rates changing due to demographic shifts,
decreasing Hydro dividend
Increased Expenses
Cost of fuel, electricity & other equipment and materials
Workforce Considerations
Maintaining a sufficient workforce in an increasingly
competitive labour market
Economic Realities
Slower than expected recovery, increasing global unrest
Environment Shifts
More complex standards, variable weather conditions
Technology Needs
Increase in on-line services, communication methods (i.e.
Twitter, Facebook, etc.)
Places to Grow Opportunities
Investment by others, new ventures, grant opportunities7
Breakdown of Tax Increase
Under Consideration (Preliminary 1st 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%
Assessment Growth
Supplementary Taxes
(2.04%)
(1.10%)
0.00%
0.00%
0.00%
0.00%
(2.04%)
(1.10%)
Total
1.12%
4.07%
0.70%
5.89%
Subtotal
• CYFS budget has been reviewed by JCC
• Library budget Growth and Enhancement items have been reviewed
by the Board. Town to update Library budget
8
How our Tax Dollar is Spent
Notes:
• $113 / month
• $1366 / year
• 3.24% ($188.24 increase) for residential house assessed @ $328,182
9
Risk and Impact on Future Years
 De-annualization deferring 1.45% tax increase to
2012
• additional fire staff
• operating costs for CUSP
• other growth-related initiatives
 Capital financing is being kept at the 2010 levels
• asset replacement fund had not been
increased since 2009
10
Responsible Financing
Strategies
 Asset Replacement Fund (ARF)
• $12 million annually for $1.1 billion in
assets
 The Town of Newmarket Debt Policy
• limit of 10% (currently 6.5%), 85% of which
is financed from non-tax sources
 Service Pricing Policy
 5-year Forecast
 Service Reviews
11
New for Today
 March 1 - CYFS JCC meeting
 Revised "All-In" Tax Impact
 Accounting and Policy Changes
 Questions and issues addressed through
Council Information Report
 Draft 2011 Capital Budget
 Draft 2011 Reserve and Reserve Fund Budget
12
2011 Residential Property Tax
Under Consideration
2010
Town
Region
Municipal
School Board
Total
2011
$ 1,289.90
$ 1,365.87
1,565.49
$ Change
$
% Change
75.97
5.89%
1,595.87
30.38
1.94%
2,855.39
2,961.74
106.35
3.72%
790.92
790.92
$ 3,646.31
$ 3,752.56
$
-
0.00%
106.35
2.92%
•
Regional Municipality of York is projecting a tax increase of 1.94%. 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 2.17%.
13
Draft 2011 Capital Budget
 New Gross Expenditures = $25.5 million
 2010 capital budget carryovers
 Accounting and Policy Changes
 Pre-budget approval for capital expenditures
14
Possible Objectives for Today
 Direction on inclusions for the Library
• Growth and Enhancement items
• Capital projects
 Draft Capital Budget
 Direction to staff for further information or
analysis
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Thank you