2010 recommended budget public information & input session march 11, 2010
TRANSCRIPT
2010 Recommended Budget
Public Information & Input Session
March 11, 2010
Highlights
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Tonight we will review
Town’s Budget Philosophy Budget drivers – inflation, Brooklin Community
Centre & Library, Economy/External Influences Recommended decision packages – maintain
services/infrastructure/legislation Proposed financing strategies
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Budget Philosophy
Provide for Growth
Take Care of What
You Have
Provide Existing Core
ServicesSHORT TERM
Assessment Growth, Start Up Reserve and Development
Charges pay for Growth Related Projects
LONG TERMFull analysis of growth related
operating & capital requirements & potential
sources of financing, need for legislative change (ie. Dc’s)
RoadsBridges
SidewalksFences
Storm WaterSignals and Streetlights
Buildings Playgrounds Parks Fleet Equipment
Information SystemsStudies
Fire Protection Arenas
Community CentresRecreation Programs
Senior Services Youth Camps
Special EventsMarinaLibrary
Animal ServicesWaste Collection
Planning and By-Law
C O M M U N I T Y O F C H O I C E
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What are we doing in 2010?
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
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2010 Total Budget Recommended - $124M
Operating, $99.9 , 81%
Capital, $24.1 , 19%
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Proposed 2.99% Tax Increase
$37 increase for the average residential taxpayer (assessment = $289,400)
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Whitby Population
0
50,000
100,000
150,000
200,000
1991 1996 2001 2006 2009 2011 2016 2021 2026 2031
Unprecedented Growth
2000 2009
40,010 households
1,063 kilometers of roads
38,485 garbagecollections per week
42%
33%
65%
801 kilometers of roads
23,400 garbagecollections per week
28,080 households
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Unprecedented Growth2000 2009
583 acres of parks
983 acres of parks
258,495 sq. feet ofGardens maintained
565 Full TimeEquivalent Staff
68%
196%
30%
87,315 sq. feet ofGardens maintained
434 Full TimeEquivalent Staff11
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Efficiencies
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
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Efficiencies
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
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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)
-
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000Street Lighting
Fences
SWM Ponds
Fleet & Equipment
Bridges and Culverts
Sidewalks
Land Improvements
Storm Lines
Buildings
Roads
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Capital Maintenance Funding
2009 Base Funding $12.8 M
Capital Inflation 7% Overall $0.9 M
2010 Base Funding $13.7 M
Annual Capital Maintenance Funding
Note: Inflation Similar to 2009 Projection
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Commit Ongoing Base Funding to Manage Existing Assets$13.7M
Roads, $6.0 , 44%
Fleet, $2.3 , 17%Facilities, $1.3 , 9%
Management Info Systems, $0.8 , 6%
Sidewalks, $0.7 , 5%
Equipment, $0.6 , 4%
Parks, $0.5 , 4%
Bridges, $0.4 , 3%
Storm Sewer, $0.4 , 3%
Fences, $0.3 , 2%
Signals & Streetlights, $0.3 , 2%
Studies & Misc, $0.1 , 1%
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Annual Capital Maintenance Funding
2010 Base Funding $13.7 M
Recommended:Downtowns 0.25Accessibility 0.20Land Use Planning 0.25 $0.7 M
2010 Ongoing Base Funding $14.4 M
Ongoing Funding
Maintenance Reserve Contribution, $9.7
Gas Tax RF, $3.4
Hydro Revenues, $1.0
Required Funding, $0.3
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
Funding Source
Inf lation, $0.9, 6%
2009 Base, $12.8, 89%
Recommneded Decision Packages,
$0.7, 5%
Recommended Annual Maintenance Funding
Annual $14.4M Maintenance Requirement
& Funding Sources
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GROWTHProjected Ten Year Growth Related Needs by Assets
$240M
Roads, $118.7 , 50%
Parks, $39.7 , 17%
Facilities, $27.4 , 11%
Storm Sewer, $13.9 , 6%
Bridges, $13.0 , 5%
Fleet, $7.2 , 3%
Studies & Misc., $7.1 , 3%
Sidewalks, $7.0 , 3%
Signals & Streetlights, $5.6 , 2%
Equipment, $0.5 , 0%
Cycling & Multi-use Pathways, $0.3 , 0%
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Capital Growth Projects
SHORT TERMAssessment Growth, Start Up Reserve and
Development Charges pay for Growth Related Projects
(2008 DC Study)
LONG TERMFull 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 $0.1Mfunded by reserves(one time no impact on tax rate)
Operating Budget
Funds the day to day costs of delivering programs and services
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2010 Draft BudgetExpenditure by Category ($100M)
Capital & Interfund
Transfers, $28.7, 29%
Human Resources, $47.1, 46%
Purchased Services, $9.6,
10%
Materials, Supplies &
Utilities, $14.5, 15%
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2010 Draft BudgetSources of Revenue ($100M)
Other Revenues, $38.4, 38%
Provincial & Federal
Support, $0.1, 0%
Property Tax revenue, $61.5,
62%
The Impact of InflationThe Municipal Price Index – the impact of providing municipal services – is going up at a rate that exceeds the Consumer Price Index
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.
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.
Up 3.6%
$2.5M
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Brooklin Community Centre and Library
Annual Ongoing
Cost
2010 Tax Impact
2011 Tax Impact
Community Centre 518$ 200$ 318$ Library 277$ 85$ 192$
Total Centre & Library 795$ 285$ 510$
Tax Impact 1.37% 0.49% 0.88%
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Economy & Other External Influences
Reduced Planning Revenues $200 0.34%Reduced investment income - lower interest rates $350 0.60%Bingo Hall Revenues lost due to closure $140 0.24%Increased Tax related revenues -$255 -0.44%Other Miscellaneous Changes $43 0.02%
Total $478 0.82%
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Staffing Decision Packages
* 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)
Community and Marketing Services
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
Total 0.94 28,037 31,349 59,386
Public Works
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# of
requested FTEs
2010 Net Operating
Impact
Net Annualized Operating
Impact
2011 Net Additional Operating
Impact
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Operating Budget Summary
$(000)
Inflation $2,481 4.27 %Brooklin CC & Library 285 0.49 %Economy/External 478 0.82 %Staffing 300 0.52 %Total Draft $3,544 6.10 %
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Operating Impact 3.544 6.10%
Capital 0.3 0.52%
Total Draft Tax Impact 3.844 6.62%
2010 Draft
Operating & Capital Budget Summary
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OptionsTarget Discussion
OPPORTUNITIES
ISSUES
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Reserves & Reserve Funds(Uncommitted Balances, $’s in millions)
Growth ProgramDevelopment Charges $42.6 Program Specific $14.4Reserves $13.2 External Boards/Committees$0.3
$55.8 $14.7
Maintenance $8.8 Stabilization $5.6(includes Federal Gas Tax, Grants, (Winter Control, Insurance,
Move Ont, Provincial, Roads and Bridges Contingencies, Tax Rate
Invest Ontario, Parks) Stabilization, Working Funds)
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2010 Debt Capacity $176M
(Ministry of Municipal Affairs & Housing)
Remaining Debt Capacity, $158.6 , 90%
Taxed Based Town Debt, $17.4 , 10%
Debt Per Capita - 2008
Pickering $206Ajax 191Whitby 164Oshawa 644Clarington 414
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Recommended Financing Strategies
1) Prepay $10M of debt using available reserve fundsResultOngoing debt charges redirected to support ongoing needs. Reserves still exist - $13.5 – Program and Maintenance
2) Eliminate $700,000 annual contribution to general reservesResult
Ongoing revenues redirected to support operations
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Tax Impact Summary
Operating & Capital Budget 6.62 %LessHydro Revenues & Use of Reserves for debt prepayment 3.63 %
Net tax impact 2.99 %
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Other Municipalities Tax Increases
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
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Where Your Tax Dollars Go
Whitby, $1,283, 31%
Region, $2,191, 52%
Education, $729, 17%
$4,203 estimate based on 2009 Residential Average
What You Get for Your Draft 2010 Taxes Whitby Portion - $1,283
940
192
149
111
94
73
71
57
53
43
37
20
19
15
13
8
6
3
319
- 50 100 150 200 250 300 350
FireCorporate Revenues & Expenses
Transportation MaintenanceGeneral Administration
Library GrantPark Design & Maintenance
Planning, Engineering, Building & By-law
Winter ControlGarbage, Yard Waste, & Special Collection
Recreational ProgramsArenas & Community Centres
Economic Development & Admin Mayor & CouncilCrossing Guards
Animal ServicesStation GallerySpecial Events
Other Community Grants
Executive Home Comparison2009
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Tor
onto
(E
ast)
Milt
on
Cal
edon
Cla
ringt
on
Mis
siss
auga
Bra
mpt
on
Hal
ton
Hills
New
mar
ket
Ric
hmon
d H
ill
Aur
ora
Vau
ghan
Oak
ville
Whi
tby
Eas
t Gw
illim
bury
Aja
x
Bur
lingt
on
Mar
kham
GT
A A
vera
ge
Pic
kerin
g
Geo
rgin
a
Osh
awa
Whi
tchu
rch
Sto
uffv
ille
Tor
onto
(N
orth
)
Kin
g
Tor
onto
(W
est)
Tor
onto
(S
outh
)
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
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Comparison of Residential Property Taxes on a Property Assessed at $289,400
$4,029 $4,067 $4,121
$5,083
$4,181
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Pickering Ajax Whitby Oshawa Clarington
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Financial Condition Update
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
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Financial Condition Update
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
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Recap Tonight’s Message
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
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Recap Tonight’s Message(continued)
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
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The End