Township of Zorra 2017 Capital Budget Presentation This - - PowerPoint PPT Presentation

Township of Zorra 2017 Capital Budget Presentation

This presentation was developed by staff for the Council and members of the public to provide financial information and strategies as it relates to the 2017 Budget

• deliberations. The report covers the following topics for review and discussion

purposes.

• 1. Recapping 2016 Taxation Year.
• 2. 2016 Capital Projects Completed.
• 3. Comparison of 2016 Budget to Proposed 2017 Budget in graphs.
• 4. 2017 Proposed Capital Projects.
• 5. 2017 Operating Budget potential impacts and challenges.
• 6. Questions?

JANUARY 16, 2017 1

Recapping 2016 Taxation Year

At the April 19,2016, Council meeting, By-law No. 19-16 was enacted to adopt the 2016 Budget and associated tax rates. The 2016 Budget was a balanced budget, with a required tax levy of $6,854,989.00.

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OPERATING BUDGET 6,812,091.00 CAPITAL BUDGET 4,093,800.00 TOTAL BUDGET 10,905,891.00 LESS REVENUE SOURCES PROVINCIAL OMPF GRANT (1,258,100.00) OPERATING REVENUES (1,035,802.00) RESERVES (1,103,000.00) CAPITAL REVENUES -OTHER SOURCES (629,000.00) CAPITAL GRANTS (25,000.00) EQUATES TO LOCAL TAXATION LEVY 6,854,989.00

Zorra’s Tax Levy

In 2016 the Township tax levy requirement was $6,854,989.00 and apportioned as follows: – Operating expenditures $4,398,189.00 – Capital expenditures $2,456,800.00 Based on the Property Assessment Roll; the following summarizes how the tax classes funded the levy requirement for Township purposes:

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Assessment Class Taxable Assessment Township Tax Levy Percentage share Residential (includes all residences;

multi and farm residences

811,551,151 $4,278,008.00 62.40% Farmland & Managed Forest 1,008,448,200 $1,320,182.00 19.25% All other tax classes 134,985,798 $1,256,799.00 18.35% Totals 1,954,985,149 $6,854,989.00 100.00%

2016 Capital Projects

In 2016 approximately $3,800,000.00 dollars was spent on capital infrastructure. BUILDINGS: Township office - new entrance

4

Thamesford Pool interior

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Vehicles

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Zorra Fire Services Tanker/pumper Thamesford Station Public Works Tandem

Infrastructure

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Road 74 Hot Mix Paving 2.7 km. Road 92 Tar/Chip 4.8 km

Infrastructure Cont’d

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McCready Drain Culvert Bridge 35 –Road 80

Infrastructure Cont’d

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Road 78 rebuild deficient areas Before After

Infrastructure Cont’d

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33rd Line Rebuilt 2.0 km gravel Road

Machinery & Equipment

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Ball Diamond Conditioner Compressor Embro Arena Fire SCBA units Furniture for new Fire station in Thamesford

Proposed 2017 Taxation Year

The first draft of the 2017 was presented to Council on November 29,2016. As part of the process Council had instructed the Director of Finance to host a public presentation on the 2017 to seek input on the 2017 projections. This preliminary budget requires a Township levy requirement of $7,397,144.00 (542,155.00 increase or 7.91%).

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2016 Budget 2017 Budget Variance OPERATING BUDGET 6,812,091.00 7,042,214.00 230,123.00 CAPITAL BUDGET 4,093,800.00 4,856,874.00 763,074.00 TOTAL BUDGET 10,905,891.00 11,899,088.00 993,197.00 LESS REVENUE SOURCES PROVINCIAL OMPF GRANT (1,258,100.00) (1,075,000.00) 183,100.00 OPERATING REVENUES (1,035,802.00) (1,026,870.00) 8,932.00 RESERVES (1,103,000.00) (1,436,574.00) (333,574.00) CAPITAL REVENUES -OTHER SOURCES (629,000.00) (616,000.00) 13,000.00 CAPITAL GRANTS (25,000.00) (347,500.00) (322,500.00) EQUATES TO LOCAL TAXATION LEVY 6,854,989.00 7,397,144.00 542,155.00

Proposed 2017 Taxation Year

The following several slides represents the following information in graph form for comparison purposes: Graph 1: Operating expenditures categorized by departments; capital expenditures categorized between Transfer to Reserves/Capital expenditures and Long Term Debenture Repayments. Graph 2: Revenue not included taxation categorized by its source(s). Graph 3: Taxation levy categorized by department – how it is spent.

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Graph 1 - Operating & Capital Expenditures

2016 Budget $10,905,891.00 2017 Budget $11,899,088.00

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General $829,680 7.61% Policing $1,147,001 10.52% Fire $643,185 5.90% Building & By- Law $224,112 2.05% Transportation $2,656,950 24.36% Parks & Recreation $1,130,098 10.36% Cemeteris & Health Services $105,075 0.96% Planning; Economic Dev & Other $75,990 0.70% Capital & Transfer to Reserves $3,114,458 28.56% Long Term Debenture Payments $979,342 8.98% General $865,555 7.27% Policing $1,151,032 9.67% Fire $629,515 5.29% Building & By- Law $239,532 2.01% Transportation $2,736,070 22.99% Parks & Recreation $1,228,990 10.33% Cemeteris & Health Services $105,075 0.88% Planning; Economic Dev & Other $86,445 0.73% Capital & Transfer to Reserves $3,901,250 32.79% Long Term Debenture Payments $955,624 8.03%

Graph 2 - Revenues Sources not including Taxation

2016 Budget $4,050,902.00 2017 Budget $4,489,944.00

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Provincial Grants - Operating $1,258,100 31.06% General Revenues; User fees $331,502 8.18% Building Permits $170,000 4.20% Parks & Recreation Fees $534,300 13.19%

Capital Revenue from Other Sources $59,000 1.46%

Aggregate Royalites $325,000 8.02% provincial Grants - Capital $25,000 0.62% Federal Gas Tax $245,000 6.05% Transfer from Reserves $1,103,000 27.23% Provincial Grants - Operating $1,075,000 23.94% General Revenues; User fees $347,000 7.73% Building Permits $185,000 4.12% Parks & Recreation Fees $482,870 10.75%

Capital Revenue from Other Sources $86,000 1.92%

Aggregate Royalites $285,000 6.35% provincial Grants - Capital $347,500 7.74% Federal Gas Tax $245,000 5.46% Transfer from Reserves $1,436,574 32.00%

Graph 3 -How the Township Levy is spent.

2016 Budget $6,854,989.00 2017 Budget $7,409,145.00

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General Government $372,190 5.43% Policing $891,879 13.01% Fire $495,537 7.23% Building & By- law $36,361 0.53% Transportation $2,045,217 29.84% Cemeteries $20,384 0.30% Parks & Recreation $463,278 6.76% Health Servcies $47,323 0.69% Planning & Development $26,022 0.38% Capital and Transfer to Reserves $1,476,958 21.55% Long Term Debenture Payments $979,342 14.29% General Government $507,084 6.84% Policing $945,741 12.76% Fire $512,391 6.92% Building & By- law $35,357 0.48%

Transportation $2,226,965 30.06%

Cemeteries $21,539 0.29% Parks & Recreation $613,047 8.27% Health Servcies $50,005 0.67% Planning & Dev $40,215 0.54% Capital and Transfer to Reserves $1,501,176 20.26% Long Term Debenture Payments $955,624 12.90%

2017 Capital Budget – What are we planning?

Capital Expenditures 2017 Budget Comments Debenture Payments 959,624.00 Reflects payment schedule Transfer To Reserves 665,000.00 Same as 2016 General–Building/computers 46,800.00 Council Renovations; computer replacements Multi-buildings 39,200.00 Keypad entry system; alarm monitoring Fire – Building 52,500.00 Uniondale firehall parking lot Fire - Vehicles 40,250.00 Fire chief pickup Fire – Radio Communication 60,000.00 2nd half of joint rural radio system Fire - Equipment 125,000.00 same budget amount as in 2016 Recreation – Buildings 220,000.00 Elevator lift and new washroom Embro Town Hall; joint project with Thistle Theatre and Ontario 150. Recreation – Buildings 188,500.00 Dehumidifier Embro Arena; replace roof Harrington Hall, exterior lights Embro Arena; electrical panel Beach volleyball court. JANUARY 16, 2017 16

2017 Capital Budget – What are we planning?

Capital Expenditures 2017 Budget Comments Recreation – Buildings 200,000.00 Replace deck and plumbing Thamesford Pool; joint project with Ontario 150 Recreation – Infrastructure 75,000.00 Embro Soccer Field joint project with Canada 150 Recreation – New Infrastructure 70,000.00 Water/Wheel Community Project 1st year financial commitment. Recreation – Machinery/Equipment 28,000.00 Tractor & Trailer with mower for Parks Roads – Vehicles/Machinery & Equipment 590,000.00 Grader and Tractor with mower attachments Roads - Road Construction 735,000.00 Road 78 from 23rd to 27th Line – rebuild gravel roads Roads – Road Construction 277,500.00 North Town line; between Pemberton and Mutual; boundary road with Ingersoll. Roads – Bridges and Culverts 488,500.00 Six bridge structures; various repairs Total Capital Expenditures 4,860,874.00 JANUARY 16, 2017 17

2017 Capital Budget – how are we financing it?

Capital Financing 2017 Budget Comments OCIF annual Grant – Rural Infrastructure 50,000.00 Road 78 Canada 150 Grant 37,500.00 Embro Soccer field Ontario 150 Grant/Community Grant application 260,000.00 Elevator Embro Townhall and Thamesford Pool Other Revenues – Community 27,000.00 Thistle Theatre Other Revenues – MNR Royalties and Interest 285,000.00 Road 78 Other Revenues – Federal Gas Tax 245,000.00 Bridges Other Revenues – Erie Thames Interest 59,000.00 Debt repayment Contributions from Reserves – Fire Fleet 40,250.00 Fire Chief pickup Contributions from Reserves - Fire – Radio Communication 60,000.00 Radio system Contributions from Reserves – Recreation 250,500.00 Recreation capital Contributions from Reserves – Roads Fleet 590,000.00 Roads Fleet Subtotal of Other Revenues Sources 1,904,250.00 2017 Capital Tax Levy – BASE LEVY AMOUNT 2,456,800.00 Resulting in SHORTFALL of capital tax levy: 499,824.00 Therefore resulting in Transfer from Infrastructure Reserve of $489,524.00; Reserve balance as at December 31, 2016 is estimated to be $598,320.00. JANUARY 16, 2017 18

2017 Operating Budget

The 2016 Operating Budget initially required a operating levy of $4,518,189.00; to help alleviate the financial impact of this levy on taxpayers; Council authorized a transfer of $120,000.00 from the Surplus/Deficit Reserve. Which subsequently established the 2016 operating levy to be $4,398,189.00; $268,260.00 or 6.5% over 2015 levy. In 2016 the Province reduced Zorra’s Ontario Municipal Partnership Fund grant OMPF by $228,000.00; which makes up 85% of the increase in tax levy requirement in 2016. For 2017, the Province has released the 2017 OMPF allocation notices, and the Township will see another overall decrease of $188,700.00.

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Year 2016 2017 Dollar decrease Rural Community Grant $ 535,000.00 $ 622,300.00 $ 87,300.00 Nothern or Rural Fiscal Circumstances Grant $ 30,200.00 $ 30,200.00 $ - Transitional Assistance $ 692,900.00 $ 416,900.00 $ (276,000.00) Total OMPF $ 1,258,100.00 $ 1,069,400.00 $ (188,700.00)

2017 Operating Budget Cont’d

The OMPF was redesigned in 2014 following consultations with municipalities from across the province and Association of Municipalities of Ontario (AMO). In a letter to Municipal Councils; the 2017 OMPF reflects the core objectives of the redesigned program, while balancing the range of views expressed by municipalities through this year’s consultations. The 2017 program will further target support to municipalities with more challenging fiscal circumstances by increasing the Northern and Rural Fiscal Circumstances Grant to $82 million from $67 million in 2016. This is an increase of over 20 per cent to this grant component and means that municipalities with more challenging fiscal circumstances will see their funding through this grant component increase in 2017. In 2017, the Rural Communities Grant will be increased to $148 million from $143 million in 2016 to further target funding to municipalities across the province with the highest levels of farm land. Finally, in order to help municipalities as they adjust to the redesigned program, municipalities will continue to receive a guaranteed minimum level of funding. The 2017 minimum funding guarantee for municipalities in southern Ontario will be at least 85 per cent of their 2016 OMPF allocations and for municipalities in northern Ontario will be at least 90 per cent of their 2016 OMPF allocations.

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2017 Operating Budget Cont’d

Regarding the proposed 1st draft of the 2017 Operating budget the following identifying areas and proposed projects that will have an impact on the financial needs for 2017.

• 2016 Contribution from the Tax Stabilization Reserve

$120,000.00

• 2017 OMPF reduction in grant

$188,700.00

• Canada 150 Celebration allocation

$ 10,000.00

• Sidewalk Snow removal contract

$ 20,000.00

• Recreation Master Plan Consultant

$ 60,000.00

• Recreation Scheduling software/computer upgrades

$ 13,400.00

• Recreation programming –seed money

$ 5,000.00

• Wages and Benefits – COL 1.5%

$ 59,900.00

• Summer student

$ 6,350.00

• Rural Economic Development (joint initiative)

$ 3,000.00

• Drainage Superintendent Provincial grant reduction

$ 5,500.00

• Multiple departments budget adjustments

$ 50,305.00 Subtotal of potential additional operating requirements $ 542,155.00

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2016 Operating Budget Cont’d

In 2016 the Township tax levy was $6,854,989.00

– Operating expenditures $4,398,189.00 – Capital expenditures $2,456.800.00

The 2017 1st draft based on high level review as noted on the previous slide: Municipal Budget requires a tax levy of $7,397,144.00

– Operating expenditures $5,413,694.00 – Capital expenditures $2,456,800.00 (no change)

Therefore an increase of total township levy dollars of $542,155.00 or 7.91%

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THANK YOU QUESTIONS ??

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