Transcript Document

City of Cornwall
2006 Draft Budget Presentation
November 17, 2005
2006 Draft Budget
2006
Operating expenditures
Capital expenditures (net)
Net Expenditures
$128,024,559
3,556,000
$131,580,559
$120,255,796
4,653,000
$124,908,796
$50,242,861
$ 47,355,196
6,571,926
$ 6,520,690
6,258,608
5,476,584
$ 12,830,534
$ 11,997,274
Net tax levy
Water
Sewer
Net user charges
2005
$
The departmental requests resulted in a year over year
net expenditure increase of $8,615,120. This
represents a 5.5% increase in expenditures over the
2005 approved budget.
In reviewing these requests, administration has taken the
following actions:
maintained a constant tax rate as approved in
2005, resulting in a possible increase in tax
revenues of $2,907,665.
reductions to requests made by the CAO and
Manager of Finance in the amount of $4,918,500
leaving a budgetary shortfall of $788,955.
The following represents the proposed cuts
from 2006 requests:
Capital Reductions
Road Work
Brookdale Avenue
Courtaulds Spur Line
Asphalt Resurfacing
Facilities
Justice Building
Fire
Headquarters (R)
Pumper (R)
Emergency Management
Generator
Emergency Medical Service
Headquarters (R)
$1,150,000
700,000
100,000
110,000
800,000
150,000
86,942
500,000
Capital Reductions con’t
Municipal Works
Equipment (net)
Recreation
Cladding - Civic Complex
Funding from Reserves
Ambulance Replacement
Fleet Hydro Fuel Injection
Operating Reductions
Fire Truck Lease
Emergency Management Mapping
and Op Center
EMS Advanced Care Training (net)
547,000
600,000
42,251
24,612
$4,810,805
$ 10,751
18,655
78,289
$107,695
Included in the 2006 budget is $3.5M in gross
expenditures requests from outside / noncontrollable entities.
It is management’s view that budgets submitted by
“outside agencies” (including City agencies) are
beyond our scope to propose cuts in expenditure
requests or service levels.
Outside agencies include any budget approved by a
board or commission prior to review by City
Council.
Outside/Non-controllable agencies include:
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






City of Cornwall Police Department
Cornwall and Area Housing Corporation
Cornwall Public Library
Glen Stor Dun Lodge
Eastern Ontario Health Unit
Raisin Region Conservation Authority
Cornwall and Seaway Valley Tourism
Cornwall Historical Society
Cornwall Regional Airport
Cornwall Regional Art Gallery
Heart of the City
Genealogical Society
When reviewing the level of these requests, the total
contributions requested exceeds $6,067,000 (an increase
of $999,000 over 2005). It should be noted that the Police
Services Board has not yet approved the 2006 budget.
(The 2005 approved budget approximated $13M and is
expected to increase by approximately 3% in 2006. The
specific budget has been included as a single line item in
the draft budget being presented.)
The total requests from these agencies (including 3% for the
Police) exceeds $1.4M. Using the 2005 tax levy, this in
itself would generate a tax increase of 3%.
Wages and benefits (excluding Police) exceeded $40M in
2005. The industry standard for increases approximate
3%. A 3% wage increase itself represents an additional
$1,2M in expenditures resulting in a 2.5% tax increase.
This does not include step increases awarded to
employees as they proceed through union contracts
and non-union pay grids. It should be noted that not all
wage increases are passed on to the municipal taxpayer
as specific departments (SS, EMS, GSDL) have portions
of their wages and benefits funded through various
ministries and the Counties of SD&G
The expected cost of utilities, including, water, electricity
and natural gas is projected to increase ($3,332,819) by
$276,654, itself representing a potential tax increase of
.58%.
In reviewing other expenses, a significant increase is noted
in contracted services. The majority of this increase
relates to the “Best Start” program, that as we
understand will be funded 100%.
Best Start
Wages & Benefits
Purchase of Goods
Services & Rents
Financial
Provincial Funding
$ 83,593
30,700
2,703,609
669
2,818,571
26,429
2,845,000
2,845,000
Net Cost to Municipal taxpayer
$
Corporate Costs
0
Expenditure comparisons (excluding Police)
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
Wages &
benefits
2006 43,133,240
2005 40,694,910
Purchases
9,211,611
8,792,838
Goods
Financial
18,732,402 60,115,902
15,214,651 59,341,270
Funding Sources
The major sources of funding can be segregated
into a number of categories including:
 Taxes
 Government Grants
 Other Municipalities
 Fees and service charges
 Investment income
 Licences and permits
 Fines and penalties
Government grants represent funding provided by the
province and federal government. Provincial funding
represents the majority of funding typically relating to
various social programs. Ministries including
Community and Family Services ($23M), Ministry of
Health ($7.5M), Ministry of Transport ($150K) and
Ministry of Municipal Affairs and Housing ($3.5M)
provide funding for specific programming.
The Ministry of Finance provides funding relating to
downloaded services and replaces the former CRF. The
CRF model funded a number of programs including
Social Services, Social Housing, Emergency Medical
Services (Land Ambulance), Public Health…
The new funding model is based on cost of delivering
social programs (social services and housing) and is
related to individual municipal assessment. There
does not appear to be a recognition of costs
associated with either EMS or a similar costing of
Public Health.
Previous years budgets allocated a portion of CRF
funding to EMS ($871,000) and the Eastern Ontario
Health Unit ($497,000). The OMPF format does not
appear to provide equalized funding.
Is the taxpayer now funding these programs exclusively?
The 2005 City of Cornwall OMPF allocation is as follows:
Social Programs Grant
Equalization Grant
Assessment Equalization
Phase-in Adjustment (limited to $80 per household)
$7,613,906
4,503,016
(437,553)
$11,679,369
Other Provincial Incentives
Projected Public Health Net Benefit
Provincial Gas Tax
2005 OMPF Grant
33,237
512,937
$12,225,543
Other municipality revenues relate to shared services
delivered by the City on behalf of both City and
County taxpayers. These services include Social
Services, EMS, Social Housing and Glen-Stor-Dun
Lodge.
The City will be receiving Federal Gas Tax in 2006 in
the amount of $1,379,902 representing the full
2006 allocation and the balance from 2005. These
funds can be utilized on a number of programs
including water, sewer, solid waste, roads and
bridges. The government has established specific
rules for spending of these funds.
The tax levy represents the funding source that
Council has complete control over. A number of
scenarios can be presented to finance the net
required expenditure base.
These include:
 2005 tax rate at 2006 assessment
 2005 levy at reduced tax rate
 2005 tax levy plus taxes associated with
new growth resulting in reduced tax rate
 change in tax rates to finance required
expenditures
 change ratios to alter tax revenue from
tax classes
CVA Assessment Growth
140,000
9.78%
120,000
100,000
80,000
60,000
40,000
6.93%
20,000
1.96%
-9.8%
0
-20,000
Residential
Multi-Res
Commercial
Industrial
136,734
7,862
9,114
-9,080
New Growth
(000’s)
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
-2,000
1.21%
.41%
.02%
-3.46%
Residential
Multi-Res
Commercial
Industrial
16,706
18
1,351
-1,831
2005 tax rates @ 2006 assessment
$50,262,861
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
-500,000
CVA
New Growth
Residential
Multi-Res
Commercial
Industrial
2,349,348
322,613
324,972
-324,466
332,092
934
75,276
-177,074
2005 tax levy
$47,355,198
0.05
0.04
0.03
0.02
0.01
0
Residential
Multi-res
Commercial
Industrial
2005
0.01747742
0.04105796
0.03434313
0.04596562
2006
0.01646637
0.03868279
0.03235641
0.04330655
2005 tax levy
(000’s)
$47,355,198
30,000
25,000
20,000
15,000
10,000
5,000
0
2006
2005
Change
Residential
Multi-res
Commercial
Industrial
25,274
24,144
4,690
4,654
13,641
14,078
3,548
4,267
1,130
36
-437
-719
2005 tax levy
$47,355,198
Although the overall tax rate decreases by
approximately 5.8%, to generate the same level of
tax revenue, not all taxpayers will see a consistent
tax bill. Because of the weighting of the
assessment base a significant shift to the
residential class will occur with a 5.8% tax rate
reduction.
If Council were to agree a 0% strategy as discussed,
3,230 residential tax payers would either remain
the same or actually have a tax reduction whereas,
10,968 residential ratepayers would still see an
increase in taxes.
2005 levy plus new growth
$47,685,198
0.05
0.04
0.03
0.02
0.01
0
Residential
Multi-res
Commercial
Industrial
2005
0.01747742
0.04105796
0.03434313
0.04596562
2006
0.01658111
0.03895236
0.03258189
0.04360834
2005 levy plus new growth
(000’s)
$47,685,198
30,000
25,000
20,000
15,000
10,000
5,000
0
2006
2005
Change
Residential
Multi-res
Commercial
Industrial
25,450
24,144
4,722
4,654
13,736
14,078
3,572
4,267
1,305
68
-342
-695
Tax ratios
The province has established a set of acceptable ratios
for the various tax classes. Without specific overriding
legislation, municipalities must move toward the range
of fairness.
The province will not allow an increase in respective
ratios, thus mitigating the opportunity to pass on
residential increases to other classes.
The threshold ratios and comparative City ratios are as
follows:
Ratios
3
2.5
2
1.5
1
0.5
0
Province
City
Multi-res
Commercial
Industrial
2.74
2.3492
1.98
1.965
2.63
2.63
Relative growth levels with our
comparable communities
20
15
10
5
0
Cornwall
Brockville
Kingston
Belleville
Peter
North Bay
Ottawa
New growth
0.67
2.32
1.06
1.64
1.7
1.39
1.67
CVA
5.75
6.62
12.89
8.22
15.39
4.68
10.66
Prov. (NG)
1.7
1.7
1.7
1.7
1.7
1.7
1.7
Prov. (CVA)
10.92
10.92
10.92
10.92
10.92
10.92
10.92
Education Rates
A major component of the tax levy relates to the education
portion of the tax bill. Rates are determined by the
province and are consistent throughout the province for
the residential and multi-residential classes.
The rates for commercial and industrial vary significantly.
The range for the commercial class varies from a low of
1.0155% to a high of 2.6417%. Similarly, the range for
the industrial class varies from 1.745% to 3.4809%.
The commercial rate for the City presently stands at
2.4709% (3rd highest in study) and the industrial rate is
2.9490% (21st in the study). We have annually
attempted to persuade the province to implement a
standard rate across the province for all classes.
We have had a number of discussions over the past
years with the Ministry of Finance requesting a
standard education rate. Using 2005 assessment and
rates taxpayers would have benefited as follows:
The total savings would be: (median across the survey)
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
Commercial
Industrial
$3,073,163 (29.50%)
$ 416,360 (17.28%)
The total savings would be: (ave. across the survey)
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Commercial
Industrial
$2,580,748 (24.77%)
$ 360,817 (14.94%)
Total taxes on $100,000 assessment
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Res
Multi-res
Comm
Average
Ind
Average
Education
$296
$296
$2,471
$1,859
$2,949
$2,509
Municipal
$1,748
$4,106
$3,434
$3,434
$4,600
$4,600
Savings with standardized rates
$612
$440
 Ajax
Aurora
Barrie
Belleville
Brampton
Brantford
Burlington
Caledon
Cambridge
Chatham-Kent
Clarington
Cobourg
Cornwall
East Gwillimbury
Fort Erie
Georgina
Grimsby
Guelph
Halton Hills
Hamilton
Innisfil
Kawartha Lakes
King
Kingston
Kitchener
Lakeshore
Leamington
Lincoln
London
Markham
Windsor
Milton
Mississauga
Newmarket
Niagara Falls
Niagara-on-the-Lake
Norfolk
North Bay
Oakville
Orangeville
Oshawa
Ottawa
Pelham
Peterborough
Pickering
Port Colborne
Prince Edward County
Richmond Hill
Sarnia
Sault Ste. Marie
St. Catharines
St. Thomas
Stratford
Sudbury
Thorold
Thunder Bay
Timmins
Toronto
Uxbridge
Vaughan
Wainfleet
Wasaga Beach
Waterloo
Welland
West Lincoln
Whitby
Whitchurch-Stouffville
Net Levy per Capita
$1,130
$1,110
$1,090
$1,070
$1,050
$1,030
$1,010
$990
Cornwall
Peter
NB
Kingston
Belleville
Ottawa
Comp. Mun.
$1,000
$999
$1,002
$1,134
$1,137
$1,109
Average
$1,003
$1,003
$1,003
$1,003
$1,003
$1,003
Median
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Taxes as a % of income
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Cornwall
Peter
North Bay
Kingston
Belleville
Ottawa
Comp. Mun.
4.70%
5.40%
4.40%
4.20%
4.80%
4.60%
Average
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
Median
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
The total budgeted requests in 2006 exceed $145 million of
which approximately $109 million is not under the direct
control or authority of Council. Identified non-controllable
departments include:
Fire, Police, Social Services, Social Housing, Emergency
Medical Services, Emergency Management, Winter Control,
Solid Waste Management, Water, Sewer and certain outside
agencies including Raisin Region Conservation Authority and
the Eastern Ontario Health Unit.
It is important to remember that any expenditure reductions
(operational) typically have to be borne by those
departments under full control of Council. For example, if
Council were to request a reduction in total expenditures of
$4 million, (3%), many of the above noted departments and
agencies are restricted in their ability to reduce either
expenditures or service levels. The $4 million would have to
be deducted from the remaining 25% of expenditures
resulting in a decrease of 11% against those departments.
Controllable vs non-controllable
25%
75%
Fire expenditures per capita
$200
$150
$100
$50
$0
Cornwall
Peter
North Bay
Kingston
Belleville
Ottawa
Fire Services
$121
$121
$180
$135
$152
$130
Average
$101
$101
$101
$101
$101
$101
$600
Net Policing cost per capita
and per household
$500
$400
$300
$200
$100
$0
Cornwall
Peter
North Bay Kingston
Belleville
Ottawa
per capita
$244
$185
$212
$166
$232
$199
per household
$554
$450
$474
$408
$546
$485
Avg. (per capita)
$192
$192
$192
$192
$192
$192
Avg. (houshold)
$464
$464
$464
$464
$464
$464
SSS net expenditure per capita
$250
$200
$150
$100
$50
$0
Cornwall
Peter
North Bay Kingston
Social Services
$220
$206
$209
Average
$131
$131
$131
Belleville
Ottawa
$165
$198
$132
$131
$131
$131
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0
EMS services per capita
Cornwall
Peter
North Bay
Kingston
Belleville
Ottawa
EMS
$41
$27
$35
$31
$42
$28
Average
$33
$33
$33
$33
$33
$33
Roadway cost per capita
$200
$150
$100
$50
$0
Cornwall
Peter
North Bay Kingston Belleville
Ottawa
Roadways
$130
$109
$125
$101
$186
$168
Winter Control
$35
$21
$37
$41
$28
$50
Avg: Roadways
$113
$113
$113
$113
$113
$113
Avg: W.Control
$30
$30
$30
$30
$30
$30
Assistance to aged per capita
$100
$80
$60
$40
$20
$0
Cornwall
Peter
North Bay
Kingston
Belleville
Ottawa
GSDL
$23
$13
$18
$94
$10
$18
Average
$20
$20
$20
$20
$20
$20
City of Cornwall

Review of specific departments
Protective Services
Police (not included in 2006 budget document)
Fire Services
Emergency Medical Services
Emergency Management
The City has little control over the level of spending in these
departments. (Wages and benefits represent 80.11% of
total expenditures)
City council has accepted fire marshal recommendations and
have staffed the department to accommodate 14ff on each
shift to ensure 10ff would be on scene. Similarly, the
majority of EMS bases are staffed for 24 hour service.
Protective Services
(000’s)
(excludes Police)
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
2005
2006
Wages
Goods
Services
Financial
$11,964
$12,894
$920
$833
$741
$1,020
$433
$502
Emergency Medical Services
The City became the delivery agent for this service in
2000. At time of takeover, Provincial records indicated
the service cost approximately $2.8M with 50% to
come from the province. Standards have changed
dramatically since that time resulting in a significant
change to costs.
Total budgeted expenditures for 2006
Ministry of Health Funding
CRF allocation in 2005
OMPF allocation in 2006
The net expenditure increase in 2006
Tax rate increase required to support
$8,877,204
2,968,282
33.4%
$ 871,000
0
$ 1,191,571
2.51%
Social Support Services
This is another department that allows limited
opportunity for council to eliminate services or
reduce costs. The Province mandates certain
services and provides funding at varying levels from
50% to 100%. Permissive programs can be
adjusted, however review of these programs in past
years have provided limited savings due to the level
of provincial and County funding.
The net expenditure increase in 2006
Tax rate increase required to support
$754,793
1.6%
Social Support Services
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2005
2006
Revenues
$32,005,380
$34,959,290
Expenditures
$39,507,268
$43,215,971
Glen Stor Dun Lodge
The Lodge is now 10 years old and is requiring some
renovations to a variety of areas including flooring,
furniture and some exterior work.
Standards of care are imposed by the province and
funding is related to the level of care required for
the residents.
The net expenditure increase in 2006
Tax rate increase required to support
$461,177
.98%
Net costs are shared with the Counties on a 75:25
basis.
Glen-Stor-Dun Lodge
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2005
2006
Revenues
$7,519,914
$7,728,617
Expenditures
$8,677,255
$9,347,135
Social Housing
Social Housing was downloaded to the City in 2000
based on a business plan submitted to the Province.
The housing stock was aging at the date of transfer
with the province providing a funding formula for
capital that was less then the average spent over
previous years when the service was managed by
themselves. The housing stock requires significant
maintenance exceeding previous capital allotment.
The net expenditure increase in 2006
Tax rate increase required to support
$422,603
.89%
Social Housing
$9,800,000
$9,600,000
$9,400,000
$9,200,000
$9,000,000
$8,800,000
$8,600,000
$8,400,000
$8,200,000
2005
2006
Revenues
$8,793,673
$8,792,622
Expenditures
$9,322,397
$9,743,949
Outside Agencies
A number of outside agencies (non-city related)
provide mandatory programming and are outside
the ability of council to influence either the service
level or funding requirements. Total funding
requests from all outside agencies approximate
$3.5M in gross expenditures.Of these requests,
$1.2Mrelating to EOHU and RRCA cannot be altered
by council under any circumstance. The tax rate
alone for these two agencies is 2.6%. Council, if
they so choose could eliminate funding to the other
agencies.
Outside Agencies
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Increase
2005
Tourism
RRCA
Airport
EOHU
Museum
GRAG
Library
5,330
43,899
60,319
0
-1,125
5,000
74,098
177,653
324,793
82,183
866,245
115,000
55,000 1,627,254
Capital

Total capital requested

Sewer surcharge
Sewer reserves
Waterworks
County re shared services
Other
Progress fund
General reserves

Tax Base






$ 10,500,000
$1,950,000
500,000
2,700,000
114,000
137,000
960,000
583,000
6,944,000
$ 3,556,000
Capital Requests - Roadways





Intersections
Asphalt resurfacing
1st street parking lot
Sidewalks
Other
$ 115
1,500
180
235
135
Capital Requests –Solid Waste


Optimist Park
Gas Collection System
$ 75
200
Capital Requests –Sewer Collection



Eamers Corners
Cumberland 7th – 9th
Sydney 8th – 9th
$ 775
500
190
Capital Requests –
Wastewater Treatment




Digester cleanout
WWTP upgrades
Others
Asset management
$ 200
500
185
100
Capital Requests –Water






Distribution
WPP Upgrade
General Improvements
Asset management
Meters
Cumberland 7th – 9th
$ 600
1,200
225
100
75
500
Capital Requests –Recreational facilities


HVAC - Complex
Roof – Complex
$1,300
560
Capital Requests – EMS


Ambulance replacement
Fuel injection system
$240
60
Capital Requests – GSDL



Building repairs
Flooring
Furniture
$225
175
55
Capital Requests – other





Transit Generator
Fire #2 Generator
Skateboard Park
Park & Furniture Replacement
Fire Pre-emption System
$45
52
80
82
36
Water/Sewer
To provide adequate supply of potable water for
public consumption and fire protection.
To efficiently operate the waste water treatment
plant and maintain the sanitary system, combined
sewer systems storm sewers.
Water and sewer billings billed twice yearly
Self supporting
Water/sewer per household
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
Cornwall
Peter
North Bay Kingston
Water/Sewer
$522
$664
$503
Average
$656
$656
$656
Belleville
Ottawa
$744
$801
$645
$656
$656
$656
Sewer
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
W&B
Goods
Services
Financial
2005
$1,289,831
$935,741
$986,382
$1,926,038
2006
$1,363,350
$976,815
$948,121
$2,610,823
$761,117 year over year increase
Water
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
W&B
Goods
Services
Financial
2005
$1,509,814
$914,570
$537,947
$3,068,975
2006
$1,614,780
$1,017,760
$627,636
$2,784,838
$13,708 increase
Average Water/Sewer billings per household
$140.00
$135.00
$130.00
$125.00
$120.00
$115.00
2005
2006
Water
Sewer
$134.68
$138.72
$123.91
$127.63
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Average
Total municipal burden
Cornwall
Peter
North Bay
Kingston
Belleville
Ottawa
2,637
3,374
2,877
3,170
3,236
4,087
3,304
3,304
3,304
3,304
3,304
3,304
Reserves and Reserve Funds
at Sep 30, 2005
Working reserves (unrestricted)
$ 4,055,493
Working reserves (restricted)
1,600,544
Stable Funding reserve
3,469,164
Reserve Funds
1,691,171
Progress Fund
25,418,889
Debt Retirement Fund
2,966,119
$39,201,380
Progress Fund
Balance Sept 30, 2005
Estimated investment income to Dec 31, 2005
Commitments
Project balance Dec 31, 2005
Projected earnings in 2006
Request in 2006 budget
Projected balance Dec 31, 2006
$25,418,889
206,412
(490,907)
$25,134,394
800,000
(960,000)
$24,974,394