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2016 Draft Operating Budget

Summary

Special Council Meeting

February 23, 2016

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Presentation Objectives

Budget directions

Budget process and pressures recap

Updated Draft Budget

Updated Three Year Financial Outlook

2016 Budget recommendations

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Budget Direction

Maintain existing services levels

Provide for approved new items and service level changes adopted in 2015

Minimize the tax rate impact

Remain true to Town of Richmond Hill’s financial principles Thorough short and long term planning

Prudent consideration of reserves

Leverage available funding sources

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Additional Directions

Implement Citizen Budget for on-line engagement

Discontinue the Growth Rate Stabilization Strategy

Costs for Emerald Ash Borer Management be included in operating budget for 2016 and next five years (at a 1% tax-rate level each year)

Annual contributions to the Town’s Capital Reserve Funds be increased by 1.25% of a tax rate each of the next ten years

Budget Process

Review User Fees

• New Fees

• Amended fees

• Indexed – CPI (Toronto)

• Basis for revenue budget assumptions and cost recovery

Capital Budget & Ten-Year Forecast

• Annual Capital Budget in the Fall

• Ten-Year Capital Forecast (April workshop)

Operating Budget

• Preparation

• Operating Budget impacts from Capital Budgets

• Management Review

• Budget Consultation

• Three-year Financial Outlook

Adopted September 29, 2015

Adopted November 23, 2015

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Budget Consultations & Engagement Business Community Information Session - January 19

th

Public Budget Information Session - January 23rd

On-Line Budget Consultation - December 15th

to February 12th

Budget Committee of the Whole (Departmental Presentations) Tuesday, January 19

th

Tuesday, January 26th

Tuesday, February 2nd

Tuesday, February 9th

Tuesday, February 16th

Special Council Meeting Tuesday, February 23

rd to Adopt the 2016 Operating Budgets

2016 Operating Budget Process

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How is the residential tax bill split?

Richmond Hill 28%

Region of York 49%

School Boards 23%

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How Richmond Hill Compares 2015 Residential Rates

(includes Special Levy)

House assessed at

$638,000

Brampton 1.115130% $7,115

Newmarket 0.992400% $6,332

Burlington 0.889870% $5,677

Caledon 0.896550% $5,720

Oakville 0.849480% $5,420

Aurora 0.946100% $6,036

East Gwillimbury 0.944770% $6,028

Mississauga 0.888640% $5,670

Vaughan 0.837240% $5,342

Richmond Hill 0.830900% $5,301

Markham 0.805730% $5,141

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Growth Indicators

2005 2010 2015 2016*

% Growth

since 2005

% Growth

over 2015

162,000 187,800 205,300 209,400 29% 2%

Households 53,000 57,000 64,150 65,900 24% 3%

Roads (km) 508 531 545 550 8% 1%

Sidewalks (km) 552 608 650 658 19% 1%

Storm Sewers (km) 460 500 513 519 13% 1%

Seniors Driveways 913 1,335 1,624 1,705 87% 5%

Waste Tonnage 51,593 55,963 55,162 56,090 9% 2%

Street Lights 13,680 15,154 15,973 16,112 18% 1%

8,704 9,870 12,288 12,518 44% 2%

Traffic Signals 19 22 29 30 58% 3%

Parkland (acres) 728 754 770 778 7% 1%

Open Space (acres) 1,604 1,827 2,048 2,201 37% 7%

*Based on Forecasted growth

Population

Signs

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2016 Economic Pressures

Inflation: CPI: +2.0% Hydro: +10% Road/traffic contracts, materials and supplies: +5.75% Non-Metallic Minerals (includes salt): +10.5% Stone, Sand, Gravel, Clay and etc: +2.70% Commercial Software (Canada): +10.6% Water & Wastewater wholesale rates: +9%

Declining Dollar: Current level: $1 CDN = $0.73 USD (was $0.87 USD Dec 2014)

Interest Rates: 3-month Treasury Bill: < 0.50% 10-Yr Government of Canada Benchmark Bond Yield: < 2%

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The Proposed Budgets

Total Expenditure 2015 2016($ millions) Budget Proposed

Operating 148.9 156.2

Water, Wastewater & Stormwater 65.8 71.3

Capital (adopted) 44.5 84.5

Total $259.2 $312.0

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2016 Draft Budget Impact Triangle – Jan.19th

2016 Draft Budget 3.96% ($3.76 million)

$1,082,900 (1.14%)

$1,766,300 (1.86%)

Assessment Growth 1.42%

1% Tax Rate = $949,600

New

CASLC

Base

$912,500

(0.96%)

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Special Levy/Other Items – Jan. 19th

Elimination of Growth Stabilization Strategy $1,478,700

Capital Asset Sustainability Contributions $949,600

Decrease in Personnel Gapping $270,000

Decrease in Supplementary Taxation $70,000

$2,768,300

Note - EAB Mgmt levy deferred to 2017

2016 Draft Budget Changes Budget Gap

(millions) Tax Rate

Equivalent

January 19th – Opening Position $ 3.761 3.96%

February 16th – Adjustments 0.840 0.89%

$ 4.601 4.85%

Council Offices – One to One & 5% reduction 0.143 0.15%

$ 4.744 5.00%

Reduce Base Budget by $600,000 (0.712) (0.75%)

Updated Operating Budget $4.032 4.25%

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Reduce Base Budget by $600,000

Sustainable Changes based on Prelim. 2015 results

Recreation programs revenues $ 94,400

Fuel cost savings (Works and Fire) 65,000

Waste Collection cost savings 50,000

Subdivision Maintenance recoveries 35,000

Sport Field revenues 10,000

Waste Diversion Ontario Grant 10,000

Picnic & Wedding permit revenues 5,000

Total $269,400

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Reduce Base Budget by $600,000 (cont’d)

Program and Rate Changes (July 2nd)

Re-purpose Centennial Pool’s Small Fitness Room $6,500

Bi-annual Volunteer Achievement Awards (from annual) 8,800

Close/Decommission Lake Wilcox C.C. 10,500

Connor Bldg – lease entire interior to O.R. Soccer Club 9,000

Group Rental rates – 50% subsidy to 30% for one-time 32,000

Group Lease rates – 40% subsidy to 0% for long-term 10,000

Total $ 76,800

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Reduce Base Budget by $600,000 (cont’d)

Other

Defer New Full-Time staff requests to Sept. start $248,200 (includes Optional Administrative Assistants and Library staffing requests)

Corporate Training in HR fully funded by T&D Reserve 118,000

Total $ 366,200

Grand Total $ 712,400

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2016 Draft Budget – Updated Feb 23rd

2016 Draft Budget 4.25% ($4.0 million)

$1,082,900

(1.14%)

$1,629,200

(1.72%)

New

CASLC

Base

$1,319,600

(1.39%)

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Operating Budget Revenues

User Fees & Fines, $36.6

Investment Income, $6.9

Water & Wastewater Fund, $4.8

Reserves & Reserve Funds, $7.4

Property Taxes, $96.5

Budget Gap, $4.0

2016 Total Operating Revenues $156.2 (Million)

Capital Asset Sustainability Fee

Staff also recommending a flat fee for all residents and

businesses of $15 for 2016

To fully meet Council direction and prolong the life of the

Town’s Capital Reserves, this needs to increase annually

$15 increase per year for the next ten years (ie. 2017 -

$30, 2018 - $45, 2020 - $75, 2025 - $150)

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2016 Average Single Detached Residential Property

2016 Average Residential Property: $638,000

Without Special Levy Blended Rate Town Portion Town Regional Tax Impact

2.57% if 4.25% $62.22 $73.90 $136.12

2016 Monthly Impact to Tax Bill: $5.19

Capital Asset Sustainability Fee Town Portion Town

per tax account $15.00

2016 Monthly Impact to Tax Bill: $1.25

Updated Three Year Financial Outlook

2016 2017 2018 2019

Base 1.72% 1.49% 1.56% 1.19%

CASLC 1.14% 1.10% 1.37% 0.92%

New 1.39% 1.72% 1.45% 0.98%

Net Levy Impact 4.25% 4.31% 4.39% 3.10%

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Recommendations a) That the 2016 Operating Budget, excluding Richmond Hill Public

Library Board, summarized in Appendix “C-1” with a recommended

budget increase of $3,753,200 and a total tax levy of $92,541,900, be

adopted;

i. That the draft By-law No. 16-16 (attached as Appendix “M”) be

enacted to adopt the 2016 Operating Budget, excluding Richmond

Hill Public Library Board.

ii. That a Capital Asset Sustainability Fee of $15 be charges to each

tax account

iii. That the 2016 Seniors Tax Assistance Grant be increased to $360;

iv. That the 2016 Operating Budget & Three-Year Financial Outlook

(attached as Appendix “I”) be received;

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Recommendations b) That the 2016 Library Services Operating Budget, summarized in

Appendix “C-2” with a recommended budget increase of $278,500

and a total tax levy of $7,884,500, be adopted;

i. That the draft By-law No. 17-16 (attached as Appendix “N”) be

enacted to adopt the 2016 Richmond Hill Public Library Board

Budget.

d) That Draft By-law No. 18-16, attached as Appendix “O” be enacted

to adopt the 2016 Water, Wastewater, and Stormwater Budgets

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