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Town of Oakville 2016 Budget

Budget Committee November 18, 2015

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2016 Budget Process • October 2015

– Election of Budget Committee Chair – Capital budget review – Preapproval of Capital Projects

• Operating Budget Guideline – That the 2016 - 2018 budgets and forecasts be

prepared with an overall tax increase in line with inflation for the consideration of the next Council

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2016 Budget Process• Budget Committee Meetings

– Distribution of 2016 Budget Documents & Overview Presentation – November 18, 2015

• Rates and Fees • Shovel Ready Projects

– Staff Presentations – November 19, 2015 – Public Delegations – November 30 and December 2 – Budget Deliberations – December 7, 2015

• Council Approval – December 14, 2015

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2016 Budget • Below core inflation • Maintains services valued by our residents • Ensures town’s strong financial position is

maintained • Includes operating cost of prior year decisions • Increased funding to keep infrastructure in state

of good repair • Includes service adjustments required to meet

demand for town services

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Focus On Programs • Performance Based Program Based Budgeting – PB2

• Emphasis on desired outcomes – What programs do we want?

• Measurement – Did we achieve our planned outcomes?

• Management – Based on results do we need to make adjustments?

• Performance measures have been developed for all town programs, showing a five year trend for key program outcomes

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Residential Property Tax Bill

Region, 37.0%

Education, 23.0%

Town, 40.0%

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Staff Recommended Budget • Budget has 4 components

– Base budget to maintain existing services – Operating impacts of capital projects – Infrastructure levies – Service adjustments

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Program Highlights • Budget includes

– Year 1 of Transit Service Plan – Resources to meet recreation program demand – Introduction of RFID in library branches – Enhanced after hour call handling – More frequent Council newsletters – Increased funding to support infrastructure renewal

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New Assessment Growth

• Assessment growth from new development 1.92% – Results in a reduction in the town tax rate

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Total Tax Impact

Purpose Share of Tax Bill Increase

Impact on Total Bill

$ Increase per $100,000 of Assessment

Town of Oakville 40.0% Inflationary Impacts/Revenue Adjustment 1.75% 0.70% $5.95 Annualized Impact of 2015 Service Adjustments 0.08% 0.03% $0.26 Capital Driven Operating Costs for New Infrastructure 1.25% 0.50% $4.25 Assessment Growth -1.92% -0.77% ($6.53)

Total Base Operating Budget 1.16% 0.46% $3.93 Capital Levy 1.00% 0.40% $3.40 Additional Funding for Road Resurfacing 0.15% 0.06% $0.51 Service Adjustments 0.14% 0.06% $0.48

Total Town of Oakville* 40.0% 2.45% 0.98% $8.32

Region of Halton** 37.0% 1.9% 0.70% $5.98

Education 23.0% 0.00% 0.00% $0.00 Total * 1.68% $14.29 *Exclusive of reassessment impacts **Proposed Region of Halton total tax increase

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2016 Budget Overview Total Expenditures by Program, $297.7 Million

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2016 Budget OverviewNet Tax Levy by Program, $172.3M

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2016 Tax Levy - $172.3 MillionWhere Your Tax Dollars Go

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2016 Budget Overview Net Program Increase $7.2M

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2016 Budget Overview

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2016 Budget Overview

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Service Adjustments 2016 Service Adjustments

Department

Full-Time FTE

Impact

Part-time FTE

Impact Title 2016 Gross

Impact 2016 Net Impact 2017 Impact

Parking Outsource Overnight Parking Permit Requests 75,000 Mayor and Council Increase the number of Newsletters 83,900 83,900 FCM 1.0 Project Manager Non Union 114,000 IS&S 1.0 Senior Business Analyst 114,400 IS&S 1.0 Non Union Senior Business Analyst 109,100 Parks and Open Space 1.0 Forestry Information Analyst 101,500 25,400 Infrastructure Maintenance 1.0 Works Infrastructure Technician 80,400 Recreation 1.0 (1.0) Recreation Assistant - Conversion of PT Leagues Position 19,500 19,500 19,500 Various 5.8 Part-time adjustments to meet service needs 205,000 108,000

Total 6.0 4.8 $ 902,800 $ 236,800 $ 19,500

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New Request

Program Service Request Type Description Funding Source FTE Gross

Operating Net

Operating Mayor and Council Business

Development Increased Service To allow the Mayor’s office to move

Oakville in a direction that leverages the strengths of the towns assets and to create a favourable environment for business attraction and retention while allowing Oakville to maintain its competitive position in the marketplace.

Tax Levy $ 50,000 $ 50,000

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Budget Committee Referrals • Bronte Marina Building capital repair

requirements • Options to provide by-law enforcement during

evenings and weekends • Overall property tax increases in line with

inflation • Shovel ready projects • Timelines for South Central Community Centre • Cost of security camera’s for BIA’s

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2016 Budget • Overall impact of 1.68%

– Meets Council guideline – Maintains service levels – Invests in infrastructure renewal

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Preliminary 2017 and 2018 Forecast • Reflects:

– Inflation – Operating impact of capital projects

• Increased transit service – Conventional buses and care-A-van

• Fire Station 8 • Trafalgar Park revitalization • Cost of operating and replacing new equipment • Maintenance of new infrastructure

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2017 and 2018 Forecast2016

Requested Budget

2017 Forecast Budget

2018 Forecast Budget

Inflationary Impacts/Revenue Adjustment 1.75% 2.64% 2.89%

Annualized Cost of New Services Approved in Prior Year 0.08% 0.01%

Capital Driven Operating Costs for New Infrastructure 1.25% 0.94% 1.63%

Assessment Growth -1.92% -1.00% -1.00%

Total Base Operating Budget 1.16% 2.59% 3.52%

Capital Levy/Additional Road Resurfacing Funding 1.15% 1.14% 1.14%

Service Adjustments 0.14%

Total Recommended Budget 2.45% 3.73% 4.66%

Total Town Budget 2.45% 3.73% 4.66%

Province of Ontario 0.00% 0.00% 0.00%

Region of Halton (1) 1.90% 2.20% 2.30%

Overall Tax Bill Impact (%)(2) 1.68% 2.31% 2.72%

Overall Tax Bill Impact ($'s per $100,000 of assessment)(3) $14.29 $19.93 $24.00 (1) Based on Region's forecast increase for 2017 and 2018 identified in 2016 budget (2) Total Tax Bill is 37.02% Region. 40.02 Town, 22.96% Education (3) Exclusive of reassessment impacts Table may not add due to rounding

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2016 Capital Budget

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2016 Capital Budget by Program

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2016 Capital Budget Funding Sources

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Top 10 Largest Capital Projects 2016 Capital Budget

Top 10 Largest Capital Projects ($ Millions)

Program Department - Project 2016 Budget

Infrastructure Planning 53331604 Road Resurfacing and Preservation Program $ 7.8

Infrastructure Planning 53310601 Cornwall Rd-Chartwell to Morrison $ 7.3

Infrastructure Maintenance 51631601 LED Streetlighting $ 6.0

Corporate Initiatives 42101401 OTM Hospital Demolition $ 4.2

Oakville Transit 54411606 Replacement Buses $ 3.8

Parks and Open Space 52271605 EAB Management Program $ 3.7

Emergency Services 43301602 Fire Station #3 $ 3.6

Infrastructure Planning 53321506 Bridge Road - Warminster to Fourth Line $ 3.0

Parks and Open Space 52241201 16 Mile Creek West Shore Landscape Rehabilitation $ 2.1

Infrastructure Planning 53311410 Speers Rd - GO Station W of 3rd Line to 4th Line $ 2.0

Total $ 43.5

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2016 Projected Reserve/Reserve Fund Balance

Reserve/Reserve Fund

Projected 2015 Ending

Balance

2016 Activity

Interest

Projected 2016 Ending

Balance

Transfers to/(from)

Reserve from Operating

Capital Commitments1

Development Charges/ Revenues Total

Obligitory Reserve Funds: Development Charges 15.0 (5.0) (56.8) 27.5 (19.4) 2.1 (17.3) Parkland 33.0 - (12.5) 4.2 24.7 1.1 25.9 Gas Tax 12.6 (1.0) (12.2) 7.7 7.2 0.4 7.6 sub-total 60.6 (6.0) (81.4) 39.4 12.6 3.6 16.2

Discretionary Reserve Funds: Town Building Replacement 14.1 2.6 (3.9) - 12.8 0.5 13.3 Parking 3.2 0.7 (0.3) - 3.5 0.1 3.7 Harbours 1.1 0.0 (0.8) - 0.3 0.1 0.4 Street Trees 0.3 (0.0) - - 0.3 0.0 0.3 Employment Liability 15.8 0.6 - - 16.4 0.6 17.1 Bonus Zoning 2.0 - - - 2.0 0.1 2.1 Other 0.4 0.0 (0.1) - 0.4 0.0 0.4 sub-total 36.9 3.9 (5.1) - 35.7 1.4 37.1

Total Reserve Funds 97.5 (2.1) (86.6) 39.4 48.2 5.1 53.3 Town Reserves: Operational Reserves2 20.9 1.2 - - 22.1 - 22.1 Equipment Reserves 15.4 7.5 (8.0) 0.0 14.9 - 14.9 Capital Reserves 59.0 14.2 (29.1) - 44.0 0.0 44.1 Stabilization Reserves2 52.8 (0.6) - - 52.1 - 52.1 Total Reserves 148.1 22.2 (37.2) 0.0 133.2 0.0 133.2

Total Reserves, Reserve Funds 245.6 20.1 (123.7) 39.4 181.4 5.1 186.5

1) The Capital Commitments for Development Charges, Parkland and Gas Tax reflect 2016 budgeted transfers plus the balance of all outstanding commitments from prior years as project spending does not all incur by year end. 2) The balance for Stabilization and Operational reserves includes preliminary estimated 2015 surplus.

* Note: Schedule may not add due to rounding

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2016 Projected Outstanding Debt Principal 2015

Outstanding Debt

Prior Year Debt Approved Not

Issued Yet

2016 Proposed

Debt

2016 Debt Principal Payment

2016 Projected Outstanding

Debt Tax Levy Supported Debt:

Municipal Buildings 405 - - 75 330 Roads 3,171 - 6,000 1,328 7,843 Transit 3,257 - - 529 2,728 Fire Protection (0) - - - (0) Recreation Facilities 237 - - 127 109 Parks and Pier Rehab 1,208 - - 164 1,044 sub-total $ 8,278 $ - $ 6,000 $ 2,223 $ 12,055

Self Supported Debt: Harbours 1,546 1,843 - 458 2,931 Development (Joshua's Creek, 16 Mile Creek) 23,086 - - 4,167 18,919 Pine Glen Soccer Club 7,751 - - 381 7,370 sub-total $ 32,383 $ 1,843 $ - $ 5,006 $ 29,220

Hospital Debt: New Oakville Hospital1 90,000 - - 1,816 88,184 sub-total $ 90,000 $ - $ - $ 1,816 $ 88,184 TOTAL $ 130,661 $ 1,843 $ 6,000 $ 9,046 $ 129,458

1) Debt Principal Payment for the New Oakville Hospital reflects the contribution to the sinking fund.

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Requests for Information • November 18

– Report on shovel ready projects • November 19

– Additional information requested by Budget Committee

– Report on Security Cameras for BIA’s – Report on timing of South Central Community Centre

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_______________________________________________________________________________

_______________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

Amendment Proposal PROPOSED AMENDMENT TO 2016 BUDGET TO BE FORWARDED DIRECTLY TO BUDGET COMMITTEE

Submitted by:

Budget Book Page:

THAT:

Fax to: 905-815-2004 (Attn: Nancy Sully) by Monday December 1, 2015 at 4:30 p.m. or email to nsully@oakville.ca.

This motion will be forwarded to Budget Committee for consideration at the meeting to be held on December 7, 2015

For further information please contact: • Nancy Sully, Deputy Treasurer, Director Financial Planning, ext. 3143

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2016 Rates and Fees • Posted on town web site November 6 • Included on today’s agenda • Timing of increases vary depending on program • Proposed fees comply with rates and fee policy

– Ensures appropriate cost recovery based on type of service and direct benefit to user

– Higher percentage of tax support for programs with greatest community benefit

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2016 Rates & Fees

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• Ensure full cost recovery where applicable • Fees must keep pace with costs to ensure

additional burden not placed on tax levy – Primarily inflationary increases – Planning and development fees brought in line with

the cost of delivering service – Licensing fees as recommended at November 9 ASC – Inflationary increase results in additional $957,000

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Next Steps • November 19

– Staff Presentations • November 30 and December 2

– Public Delegations (2 meetings) • December 7

– Budget Deliberations

• Council Approval – December 14, 2015

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Take Part in the 2016 Budget Process • Public Notification

– www.oakville.ca – Town TV – Local Newspaper Ads – Media Releases

• Public Input – budget@oakville.ca – Social media – Budget Open Houses

• November 23 and December 1 – Delegations

• November 30 and December 2