2016 Draft Budget Committee of the Whole December

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2016 Draft Budget Committee of the Whole December 7, 2015 Presenters: Bob Shelton -

2016 Draft Budget Committee of the Whole December 7, 2015 Presenters: Bob Shelton - Chief Administrative Officer Mike Mayes - Director, Financial Services/Treasurer Ian Laing - Chief, Central York Fire Services

2016 Budget Schedule ACTIVITY DATE STATUS Special Council – Approval of Fees & Charges

2016 Budget Schedule ACTIVITY DATE STATUS Special Council – Approval of Fees & Charges November 30 Done Special Co. W – Operating budgets, proposed staffing requests & CYFS governance December 7 In process Special Co. W – Capital budget, ARF funding & infrastructure levy December 14 Special Co. W - final review of budget January 11 Council approval of budget, and fees and charges January 18 2

2016 Budget Goals Address Budget drivers Maintain service levels 6 5 1 Budget 2

2016 Budget Goals Address Budget drivers Maintain service levels 6 5 1 Budget 2 3 4 Balance risk Financial sustainability 3 Continue to deliver on Council priorities Stay within the 2. 5% tax increase target

Service levels 4

Service levels 4

What have we heard so far? Decrease Maintain or Increase Bylaw and Licensing services

What have we heard so far? Decrease Maintain or Increase Bylaw and Licensing services 44 (24%) 152 (76%) Community programs and events 44 (24%) 152 (76%) Facilities, parks and trails 35 (18%) 161 (82%) Fire Services 40 (20%) 156 (80%) Planning and Development Services 52 (27%) 144 (73%) Public Library Services 64 (33%) 132 (67%) Roads, bridges and sidewalks 22 (11%) 174 (89%) Solid waste management 17 (9%) 179 (91%) TOWN SERVICES 5

Advancing Council priorities 6

Advancing Council priorities 6

Council Priority: Economic Development / Jobs 2015 • • Non-binding RFP issued On-going discussion

Council Priority: Economic Development / Jobs 2015 • • Non-binding RFP issued On-going discussion Continue discussion with recommendations to follow b. Reviewing & Prioritizing • Economic Development Strategy NEDAC finalizing process and timeline for ED Re-fresh • • ED strategy refresh Implementation plans Assessing site needs to bring forward for development Signage plan and wayfinding strategy for parking • Implement steps for site development readiness Implement signage and wayfinding Parking Plan a. Implementing affordable broadband c. Revitalizing Community Centre Lands and addressing downtown parking needs • 2016 • • Note: 2015 Report Card to provide final status 2016 examples supported through budget 7 • •

Council Priority: Economic Development / Jobs (cont’d) 2015 2016 d. Creating vibrant & livable

Council Priority: Economic Development / Jobs (cont’d) 2015 2016 d. Creating vibrant & livable Davis Drive & Yonge Street corridor strategy • • • Internal staff team Council workshop Co. W report being written • e. Supporting Innovative projects and partnerships • EDCO nomination – CCE (Innovation Team) Create. IT launched Ongoing partnerships • • • 8 • Co. W report (Jan) re: marketing of corridors Implementation phase Continuation of ongoing initiatives and new directions identified through ED Re-Fresh

Council Priority: Enhanced Recreation Opportunities 2015 f. Enhancing Recreation and Community Facilities • •

Council Priority: Enhanced Recreation Opportunities 2015 f. Enhancing Recreation and Community Facilities • • • Recreation Playbook adopted Capital budget allocated for artificial turf, spray pads Land needs reviewed 2016 • • • g. Supporting Community & Neighbourhood Projects 9 • • 3 Pilot outdoor ice rinks • Approval of new community garden • Spray pad locations and phasing for approvals and implementation Finalize artificial turf negotiations Continue to review and implement Playbook Re-open Old Town Hall Open new trails Continuation of 2015 initiatives Advance new community garden

Council Priority: Community Engagement 2015 2016 h. Aligning ourselves with communications best practices •

Council Priority: Community Engagement 2015 2016 h. Aligning ourselves with communications best practices • • New website launched Community Open House • Continue enhancing communication channels i. Engaging our changing resident demographics • Extensive consultation and use of Environics Analytics in Playbook Aging in Place workshop • • Seniors Plan Continue to seek new methods of engagement • 10

Council Priority: Efficiency / Financial Management 2015 j. Ensuring effective and efficient services •

Council Priority: Efficiency / Financial Management 2015 j. Ensuring effective and efficient services • • k. Measuring and benchmarking our financial performance 11 • Ongoing implementation of Results Based Accountability (RBA) Framework across Community Services Internal reviews 2016 • • • Corporate quarterly • reports provided across Commissions to Council • Expansion of RBA into Economic Development Continue internal reviews and implementation N 6 and other partnership initiatives Asset management data registry and condition assessments Continue comparator studies

Council Priority: Traffic Safety and Mitigation 2015 l. Ensuring safe streets • • Recruit

Council Priority: Traffic Safety and Mitigation 2015 l. Ensuring safe streets • • Recruit Transportation Manager Sidewalk snowploughing enhancement 2016 • • • m. Improving traffic congestion 12 • Worked with Region on • mitigating and communicating Davis Drive closures • Coordinate with YRP and community on traffic mitigation initiatives Implement traffic mitigation measures Sidewalk snowploughing Coordinate plans for Town's capital projects with Region to manage traffic disruption Planning for future road network

Council Priority: Traffic Safety and Mitigation (cont’d) 2015 n. Supporting major transit • service

Council Priority: Traffic Safety and Mitigation (cont’d) 2015 n. Supporting major transit • service enhancements • 13 Davis Drive viva. Next corridor completion and service initiation Yonge Street viva. Next design reaching 100% 2016 • • Mobility HUB study at Newmarket GO Station Advance Active Transportation Plan

Council’s budget target was met. 14

Council’s budget target was met. 14

Budget Drivers NON-DISCRETIONARY ITEMS 2015 enhancements carried forward 0. 33% Magna naming rights, term

Budget Drivers NON-DISCRETIONARY ITEMS 2015 enhancements carried forward 0. 33% Magna naming rights, term expiration 0. 24% Re-opening Old Town Hall 0. 19% REVENUE SUSTAINABILITY Revenue right-sizing Phasing adjustment in 2017 1. 83% (0. 24%) 2. 35% Allowance for remainder of the budget Target for base budget 0. 15% * 2. 50% * Includes assessment growth and growth expenditures 15

2. 5% Target Set capital financing at $500, 000 Reduce Supplementary Tax revenue by

2. 5% Target Set capital financing at $500, 000 Reduce Supplementary Tax revenue by $90, 676 Reduce insurance transfer to reserves by $100, 000 Street light maintenance cost reduction by $50, 000 Phasing 13% of revenue adjustment to 2017 ($130, 000) Increase provision for hiring gaps to $400, 000 ($269, 000) 5. 37% Other budget reductions of $843, 119 (details in supplementary info ) 16 2. 87% in reductions

Staff continue to refine the budget. 17

Staff continue to refine the budget. 17

Updates Since Last Presentation UPDATES Preliminary draft budget Tax increase $ % $1, 326,

Updates Since Last Presentation UPDATES Preliminary draft budget Tax increase $ % $1, 326, 323 2. 50% Updated staffing requests -39, 237 -0. 07% Updated reductions -16, 963 -0. 03% 20, 000 0. 03% -$36, 200 -0. 07% $1, 290, 123 2. 43% Remove additional garbage bag tag revenue – not approved Total refinements Draft budget 18

Risk has been balanced in the budget. 19

Risk has been balanced in the budget. 19

Risk • Growth revenue • Hiring gaps • Budget reductions • Revenue adjustment phasing

Risk • Growth revenue • Hiring gaps • Budget reductions • Revenue adjustment phasing 20

Mitigation measures to balance risk • Growth items at full annual cost • Manage

Mitigation measures to balance risk • Growth items at full annual cost • Manage hiring gaps • Rate stabilization • Investment Strategy 21

Additional security • Other operating reserves • Enhanced monitoring • Enhanced operational responsibility &

Additional security • Other operating reserves • Enhanced monitoring • Enhanced operational responsibility & accountability 22

Sustainability measures are contained in the budget. 23

Sustainability measures are contained in the budget. 23

2017 -19 Preliminary Outlook TAX INCREASE 2016 DRAFT BUDGET 2017 2018 2019 Starting point

2017 -19 Preliminary Outlook TAX INCREASE 2016 DRAFT BUDGET 2017 2018 2019 Starting point based on known drivers, subject to refinement Base budget (Town) 1. 49 1. 50 CYFS – including growth 1. 33 1. 63 1. 50 Newmarket Public Library 0. 24 0. 15 Phasing of 2015 enhancements 0. 33 0. 27 0. 26 Growth expenses (excludes CYFS) 0. 89 0. 30 (1. 00) Revenue adjustments 1. 59 0. 23 Other one-time adjustments 0. 43 Growth revenue Adjustments to capital financing (0. 42) Other reductions (2. 38) TBD TBS TBD 2. 50 3. 08 2. 71 2. 45 Total, prior to refinement 24

Newmarket’s tax rates are competitive. 25

Newmarket’s tax rates are competitive. 25

Competitive Property Taxes 26

Competitive Property Taxes 26

Additional staff are required to meet the demands of growth and implement Council plans.

Additional staff are required to meet the demands of growth and implement Council plans. 27

Staffing requests have undergone a thorough review • Initial requests – 26 fulltime positions

Staffing requests have undergone a thorough review • Initial requests – 26 fulltime positions • OLT review - deferral of 11 fulltime and 1 part-time position • SLT refinement – final request consisting of 13 fulltime and 1 contract position with the reduction of 1 part-time position • Prioritization/categorization by OLT/SLT 28

These requests fulfill a variety of requirements • Mandatory ($52, 907) – Compliance Officer

These requests fulfill a variety of requirements • Mandatory ($52, 907) – Compliance Officer for health and safety • Enhancement ($0) – 1 -year contract for a Finance Business Analyst to implement the Stormwater Management rates and refine water rates, not tax supported - financed by rates • Growth ($423, 567) – to maintain service levels for a growing population • Fire Master Plan ($147, 823) – 4 firefighters as 1 st phase in adding a 7 th platoon, April start 29

Growth requests have been prioritized Priority Department Position All requests minimize the risk to

Growth requests have been prioritized Priority Department Position All requests minimize the risk to service levels from growth Supports a Council Public Works Services approved plan and is tied to a capital Information Systems (IT) commitment Financial Services Cost savings or revenue generation 30 Natural Heritage Coordinator (FT) Applications Business Analyst (FT) Financial Analyst (FT) Corporate Communications Graphics Support (FT) Information Systems (IT) G. I. S. Analyst (FT) Procurement Services Contract performance (PT)

Growth requests have been prioritized (cont’d) Priority Department Position All requests minimize the risk

Growth requests have been prioritized (cont’d) Priority Department Position All requests minimize the risk to service levels from growth Cost savings or revenue generation Other 31 Newmarket Public Library Community Outreach (PT) Public Works Services Training & Safety Compliance Officer (PT) Legal Services Associate Solicitor (PT to FT) Public Works Services Forestry Supervisor (PT to FT) Public Works Services Facility Worker (PT to FT) Public Works Services Parks Maintenance (PT to FT)

Budget impact has been minimalized Position Offset Budget Impact Funding from Growth Natural Heritage

Budget impact has been minimalized Position Offset Budget Impact Funding from Growth Natural Heritage Coordinator None applicable (DP-37) Applications Business Analyst Cost reductions (DP-16) $5, 268 7% Financial Analyst Cost reductions (DP-12) $0 0% Graphics Support Cost reductions (DP-14) $18, 602 25% G. I. S. Analyst Cost reductions (DP-17) $11, 347 14% Contract performance Part-time position (DP-25) $39, 363 100% Community Outreach (Library) $25, 732 100% 32 Part-time staff (DP-9) $110, 984 100%

Budget impact has been minimalized Position Offset Budget Impact Funding from Growth) Associate Solicitor

Budget impact has been minimalized Position Offset Budget Impact Funding from Growth) Associate Solicitor Cost reductions and conversion from part-time (DP-19) $61, 573 58% Forestry Supervisor Conversion from part-time (DP-32) $82, 570 75% Facility Worker Conversion from part-time (DP-29) $42, 120 61% Parks Maintenance Conversion from part-time (DP-42) $26, 008 41% Total $423, 567 In terms of budget impact, this is equivalent to about 5 fulltime positions. 33

Staffing Options • Initial 2016 Staffing Request – 4 Fire Fighter positions – 2

Staffing Options • Initial 2016 Staffing Request – 4 Fire Fighter positions – 2 Fire Prevention positions – 2 Support positions • Revised Staffing Request – Deferred 4 Fire Fighter positions to May 2016 – Deferred 2 Fire Prevention positions – Deferred 2 Support positions 34

Service Level Performance Targets CENTRAL YORK PERFORMANCE MEASURE NFPA 1710 Benchmark Criteria Dispatch Time

Service Level Performance Targets CENTRAL YORK PERFORMANCE MEASURE NFPA 1710 Benchmark Criteria Dispatch Time 60 seconds - 60 seconds 80% Turnout Time 60 seconds - 80 seconds 90% Initial Response 6 minutes total response time (4 firefighters) 90% 4 minutes travel time (4 firefighters) 90% Depth of Response 10 minutes total response time (12 firefighters) 90% 8 minutes travel time (14 firefighters) 90% 35

Deployed Resources INITIAL RESPONSE DEPTH OF RESPONSE 6 MINUTES 10 MINUTES 36

Deployed Resources INITIAL RESPONSE DEPTH OF RESPONSE 6 MINUTES 10 MINUTES 36

2014 Response Data 100% 90% 80% 70% 60% Stn. 4 -1 50% Stn. 4

2014 Response Data 100% 90% 80% 70% 60% Stn. 4 -1 50% Stn. 4 -2 40% Stn. 4 -3 30% Stn. 4 -4 20% 10% 0% 1 Apparatus Within 6 minutes 37 3 Apparatus Within 10 minutes

Council has some options to choose from. 38

Council has some options to choose from. 38

Average Residential All-in Tax Increase Based on 2. 5% Target Town Portion Region Portion

Average Residential All-in Tax Increase Based on 2. 5% Target Town Portion Region Portion Municipal sub-total School Board Portion TOTAL • • $ CHANGE % CHANGE $1, 806. 20 $ 44. 05 2. 50% 1, 831. 75 1, 883. 96 52. 21 2. 85% $3, 593. 90 $3, 690. 16 $96. 26 2. 68% 878. 87 0. 00% $4, 472. 77 $4, 569. 03 $96. 26 2. 15% 2015 2016 $1, 762. 15 Based on an average assessment of $450, 072 The Region’s revised outlook projects a tax increase of 2. 85% No increase in the School Board is anticipated at this time This does not include an Infrastructure Levy (ARF) 39

Next Steps for Council Additional Council priorities + December 7 Adjust service levels 40

Next Steps for Council Additional Council priorities + December 7 Adjust service levels 40 +/- Adjust risk levels +/- - Other items identified January 11

The utility budget moves towards full compliance and full sustainability. 41

The utility budget moves towards full compliance and full sustainability. 41

Water Costs: Who Should Pay? USER Rate structure should ensure that costs are shared

Water Costs: Who Should Pay? USER Rate structure should ensure that costs are shared fairly 42 COSTS FUTURE GENERATIONS Pay now or pay later Proposed budget is fully compliant and sustainable, with no discretionary service levels

Combined 2016 Utility Budget 2015 Budget Revenue 2015 Projection 2016 Budget $32, 792, 152

Combined 2016 Utility Budget 2015 Budget Revenue 2015 Projection 2016 Budget $32, 792, 152 $31, 750, 000 $32, 883, 108 $18, 234, 184 $17, 300, 000 $18, 320, 000 Asset Replacement Fund contributions 5, 611, 065 6, 099, 460 Operating costs 6, 986, 388 7, 581, 362 7, 077, 788 Debt servicing 1, 257, 573 1, 138, 910 $32, 089, 210 $31, 750, 000 $32, 636, 158 $702, 942 $0 $246, 950 Expenses: Regional charges Rate Stabilization Fund contribution 43

Next Steps… 44

Next Steps… 44

2016 Budget Schedule ACTIVITY DATE STATUS Special Council – Approval of Fees & Charges

2016 Budget Schedule ACTIVITY DATE STATUS Special Council – Approval of Fees & Charges November 30 Done Special Co. W – Operating budgets, proposed staffing requests & CYFS governance December 7 In process Special Co. W – Capital budget, ARF funding & infrastructure levy December 14 Special Co. W - final review of budget January 11 Council approval of budget, and fees and charges January 18 45

Thank You

Thank You