2016 Town of Parry Sound Budget Presentation to Council December 8, 2015 Presented by Trevor Pinn, CPA, CA – director of Finance and POA Court Services 1
Apr 14, 2017
2016 Town of Parry Sound Budget
Presentation to Council December 8, 2015
Presented by Trevor Pinn, CPA, CA – director of Finance and POA Court Services
1
Agenda
Layout of this presentation follows the budget binder
Specific questions regarding what and why will be referred to appropriate director, or deferred to the budget deliberation meetings
2
Council’s Direction for the 2016 Budget
Approved Budget and Financial Controls Policy
Rate increase between 1.5% and 1.9%
We have prioritized to bring budget in under 1.9%
Do not cut services
No services cut this year
2015 – 2018 Strategic Plan
We have identified items in the 2016 budget which further the Strategic Plan
We can’t afford to do everything in the plan this year
3
Determining the Tax Levy – (Page 4)
Start with PSAB Statement of Operations
Remove Amortization Expense
Subtract revenue from grants not included in statement of operations
Add capital costs for all projects
Subtract transfers from reserves and reserve funds
Add transfers to reserves and reserve funds
Subtract new debt to be issued in 2016
Add principal payment on existing debt
Required Levy for Taxes
4
New Initiatives in the 2016 Budget –(Page 6)
Administration HR Coordinator to 3 days
Overtime for records management
Municipal building – Contract for Service
Repairs to Municipal Building stairs
Information Technology Outsourced higher level IT support
Additional software for network security
Membership fee for CISC
License for cloud mapping for GIS
5
New Initiatives in the 2016 Budget –(Page 6)
Finance Overtime for records management
Asset Management Plan revision
Emergency and Protective Services Overtime for records management
Increased maintenance costs for Tower 1
6
New Initiatives in 2016 Budget –Operations – (Page 7)
GPS maintenance for sidewalk plows
Overtime for records management
PW small tool replacement
PW facilities - repairs
PW facilities – rentals
Increase to sidewalk repairs
Increase to asphalt repairs
Bridge repairs
Increase to curb and gutter maintenance
Increase to culvert replacement
Repairs of guiderails
Public wharf repairs
Locates now mandated for traffic lights
Implementation of annual traffic light review
Increased storm sewer repair and maintenance
Increased catch basin replacement
Increased materials required at Sylvan Cemetery
7
New Initiatives in 2016 Budget – (Page 8)
Parks and Recreation Re-implement separate funding for
Horticultural Society
Skateboard Park furniture
Enclose skateboard ramps at Skateboard Park
Increase Snowfest activities due to Family Day
BOCC staff uniforms for improved identification
Development and Leisure Services Increased hours for part time building
inspector
Changes to Cityview licensing structure
Consulting fees for zoning by-law update
Overtime for records management
CiiNO grant contribution
Implement funding for 8-80 Cities Committee
Advertising for Amazing Places promotion
Waterfront signage
8
New Initiatives for Non-Tax Supported Activities – (Page 10)Provincial Offences Act Court Services Increased conferences expense by
$1,000 due to conference location
Parking Services Signage for parking changes
downtown
Increased parking attendant time for enforcement
PLEASE NOTE the above “new” items are being funded by cuts to other areas in the parking activities. It is reallocated money
9
New Initiatives for Non-Tax Supported Activities – (Page 10)
Land Ambulance RFP Consultant
Base lease – Porte Au Barile
Paramedic Coordinator
10
New Initiatives for Non-Tax Supported Activities – (Page 10)
Water Outsourcing locates
Required repairs
Wastewater capacity review
Wastewater Outsourcing locates
HVAC system review
Water financial plan
Water capacity review
Water distribution flow testing
11
Items Considered and Cut – Service Delivery (Page 13-16)
Administration / IT Electronic performance review
system
HR to 5 days rather than 3 days
Reduced conferences and training for IT department
Finance Removed attendance at GFOA
Conference in Toronto (applying for a scholarship to cover conference)
12
Items Considered and Cut – Service Delivery (Page 13-16)Development and Leisure Services Great Lakes Cruising Coalition
Membership
Waterfront Advisory Committee –water front clean up
Grant program for one-time community projects
Trails Master Plan implementation
Façade Improvement Program
Reduce promotional material budget
Reduce tourism marketing miscellaneous contracts for service
Emergency and Protective Services Reduce community paramedicine
coordinator from $20,000 to $10,000
Remove gravel from parking lot operations
Projected savings resulting from LED lights
13
Items Considered and Cut – Service Delivery (Page 13-16)
Operations GPS units for PW vehicles (other
than sidewalk plows)
New Staff – Mechanic Assistant
Identification clothing enhancement
New Staff – 2 Summer students specifically for downtown beautification
Outsourcing of storm sewer locates
Operations Delay certain repairs at PW
facilities
Projected savings for LED streetlights
Hillcrest Cemetery
Delay tool replacement
Delay repairs
Delay repairs at Transfer Station
Reduce tree planting budget
14
Items Considered and Cut – Service Delivery (Page 13-16)
Parks and Recreation Community Programmer Intern
Savings for LED lights at Waubuno Beach
Seeder replacement
Delay removal of wheelchair pad at Waubuno Beach
Delay replacement of benches at WaubunoBeach with Ipe wood
Reduced budget for electricity at Market Square Park to reflect usage
Funding for Park to Park Trail
Stockey Centre – Table and Chair Replacement
Parks and Recreation Recreation Programming
Day Camp
Youth Nights
Lacrosse
Ball Hockey
Shuffleboard
Neighbourhood Competition
Pickelball
Craft Nights
Soap Box Derby
Savings in electricity at BOCC for LED lighting
15
Items Considered and Cut – Capital (Page 13-16)
Security improvements for Municipal Office Building
CP Station Parking Lot - Paving
Big Sound Marina Parking Lot – Paving
Reduce Old Firehall Repairs to $25,000
BOCC Push buttons
Firehall roof replacement
Firehall Parking Lot – Paving
Reduced firefighters gear replacement
Salt Shed at PW yard
PW Parking Lot – Paving
MADVAC
Transfer Station Loading Area
New Sidewalk Plow (will rotate older one into “spare”)
Reduced repairs at Cemetery Chapel / Mausoleum
New Supervisor vehicle for PW – deferred
Red light camera at Bowes / Great North
Repairs to Downtown washrooms
Splash Pad
Skateboard Park security cameras
SC Table and Chair replacement
16
Comparing Parry Sound – Population (Pages 23 to 25)
Factor Parry Sound North Average Survey Average
Population increase 2011 to 2015
7.6% 2.9% 7.7%
Senior population 23% 20% 15%
2014 Household Income
$63,855 $77,518 $94,793
17
Comparing Parry Sound – Assessment and Taxes (Pages 23 to 25)
Factor Parry Sound North Average Survey Average
Taxable Assessment per Capita (unweighted)
$105,078 $84,147 $139,315
Residential composition %
75.2% 77.6%
Commercial composition %
20.7% 10.6%
Industrialcomposition %
1.1% 2.2%
Median Single Family Home Value
$200 $154 $301
18
Comparing Parry Sound – Financial Indicators (Pages 23 to 25)
Factor Parry Sound North Average
Survey Average
Financial Position Per Capita $1,347 $64 $277
Total Asset Consumption Ratio 36.2% 39.2%
Tax Reserves Per Capita $1,866 $586
Debt Interest as % of Revenue 1.9% 1.4%
Debt Per Capita $909 $478
Debt to Reserve Ratio 0.8 1.1
Debt per $100,000 UnweightedAssessment
$2,078 $568
Taxes Receivable as % of Revenue 6.8% 6.9%19
Comparing Parry Sound – Taxes (Pages 23 to 25)
Factor Parry Sound North Average Survey Average
2015 Levy per Capita
$1,367 $1,535 $1,449
2015 Municipal Levy per $100,000 Unweighted Assessment
$1,301 $1,872 $1,158
2015 Municipal Levy per $100,000 Weighted Assessment
$1,134 $1,617 $1,077
20
Service Partners
The Town provides funding, either discretionary or through legislated levy to:
Parry Sound Public Library
West Parry Sound District Museum
West Parry Sound Health Centre and Lakeland Long Term Care
Belvedere Heights Home for the Aged
District Social Services Administration Board
Ontario Provincial Police
North Bay Parry Sound District Health Unit
Parry Sound Area Industrial Park Board
Parry Sound Municipal Airport Board
West Parry Sound Area Planning Board
21
Strategic Plan 2015 - 2018
Active Living
Growth and Development
Organizational Excellence
Our Community
West Parry Sound Area Cooperation
In 2016 the “New Initiatives” have been tied, where appropriate, to a strategic plan.
There are several items that were cut in 2016 that do relate to the Strategic Plan, not everything can be done at once.
Additional funding above the target range would be required to address more strategic initiatives.
22
Annual Assessment Growth 2011 to 2015
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2011 2012 2013 2014 2015
Percentage Tax Assessment Growth Y/Y
Residential Taxable Commercial Taxable Industrial Taxable Other Taxable
23
Residential and Commercial Assessment Over 5 Year Period
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
2011 2012 2013 2014 2015
Residential and Commercial Assessment 2011 to 2015
We have seen residential growth over the past 5 years resulting from
Phase-in
Condo developments
Salt Dock
Silver Birch
Commercial assessment has stayed relatively flat
24
West Parry Sound Area Assessment
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
$-
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
Parry Sound McDougall McKellar Seguin Archipelago Carling Whitestone
2015 Weighted Assessment and 2011 Census Population
Weighted Assessment 2011 Population
25
West Parry Sound Area – Assessment per Capita
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Parry Sound McDougall McKellar Seguin Archipelago Carling Whitestone
Weighted Assessment per Capita
Assessment per Capita
26
5 Year Trends – OMPF Funding
2,128,200
1,978,700 1,957,000
1,863,100
1,784,900
2011 2012 2013 2014 2015 Budget
OMPF Funding
The past five years has seen a steady decrease in the Town's operating funding from the Province of Ontario through the Ontario Municipal Partnership Fund. This is the only unrestricted operating grant that the Town gets.
27
5 Year Trends – Government Grants
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2011 2012 2013 2014 2015 Budget
Senior Government Grants
Ontario Grants - Land Ambulance Ontario Grants - Other
Canada Grants - Gas Tax Canada Grants - Other
The majority of the Government Grants that are received for specific purposes relate to the Town’s provision of Land Ambulance Service to the District of Parry Sound.
In 2014, the large increase in Ontario Grants relates to the Wakefield / Dufferin reconstruction.
Over the past 5 years the only Government of Canada capital grant received was the CanadoreCollege grant in 2011. All other capital grants are through the Federal Gas Tax.
28
Expenditures – Tax Supported
Council2%
General Government6%
Finance5%
Information Technology2%
Policing Services12%
Third Party Funding6%
Emergency Management0%
Fire Department5%
By-law Enforcement2%Operations
30%
Waste Management6%
Parks and Recreation5%
Bobby Orr Community Centre5%
Other Properties0%
C.W. Stockey Centre10%
Planning and Building Department3%
Development3%
2015 Expenditures
29
Debt Ending Balance
$14,939,700
$13,604,600
$12,605,900
$11,595,200
$10,571,500
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2016 2017 2018 2019 2020
Total Debt Ending Balance Current Debt Balances include
Water treatment plant
Gibson St Rebuild
Smelter Wharf
Wastewater treatment plant
Water tower
Riverdale Road
Municipal office / Wastewater mains
BOCC, James, Gibson & Mary St
Forest St – Pending
2016 (BSM, BOCC Roof, SC Roof, Bowes St Retaining Wall)
30
5 Year Principal Repayment Schedule
Debenture Issue 2016 2017 2018 2019 2020
Water Treatment Plant $ 278,000 $ 287,000 $ 297,000 $ 309,000 $ 322,000
Gibson St Rebuild 57,500 57,500 57,500 57,500 57,500
Smelter Wharf 24,400 346,400 - - -
Wastewater Treatment Plant 125,000 125,000 125,000 125,000 125,000
Water Tower 100,000 100,000 100,000 100,000 100,000
Riverdale Road 35,000 35,000 35,000 35,000 35,000
Municipal Office / WW Forcemains 100,000 100,000 100,000 100,000 100,000
BOCC & James, Gibson & Mary St. 117,500 117,500 117,500 117,500 117,500
Forest Street - Pending 106,700 106,700 106,700 106,700 106,700
Big Sound Marina, BOCC Roof, SC Roof, Bowes Retaining Wall - 60,000 60,000 60,000 60,000
31
Debt Balance 2006 to 2020
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2006 2007 2008 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total Long Term Debt
32
Capital Investment Budget
Asset Management is a continued important aspect of planning
In 2016 increased requirements to our asset management plan to ensure Federal Gas Tax funding available
Asset Management is not just knowing what we have, it is determining when it needs to be replaced and how to fund it
33
5 Year Capital Plan (Pages 81 to 92)
Town of Parry SoundTax-Supported Activities 2016 2017 2018 2019 2020 Total
Buildings $ 416,075 $ 412,500 $ 200,000 $ 18,000 $ 10,872,000 $ 11,918,575
Fleet 455,000 260,000 37,900 605,000 90,000 1,447,900
Land Improvements 588,000 529,050 235,200 - - 1,352,250
Software - - - 7,000 - 7,000
Roads (Land Improvements) 4,070,063 3,990,063 1,650,000 5,000,000 2,000,000 16,710,126
Machinery and Equipment 516,300 293,300 1,913,882 237,114 282,711 3,243,307
Total $ 6,045,438 $ 5,484,913 $ 4,036,982 $ 5,867,114 $ 13,244,711 $ 34,679,158
34
Reserves and Reserve Funds (Pages 97 to 108)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Other Parks andRecreation
Replacement ofEquipment
Tax RateStabilization
Transportation WastewaterSystems
WaterworksSystems
Working Capital
Projected Balance Dec 2016
35
What is Being Funded Into Reserves (Pages 97 to 114)
Elections Reserve $5,000
Equipment Replacement Reserve $200,000
Fleet Replacement Reserve $452,214
IT Replacement Reserve $35,000
Wastewater Stabilization $982,261 (rate supported)
Water Stabilization $763,371 (rate supported)
36
What is Being Funded From Reserves (Pages 97 to 114)
Stockey Centre Reserve Table and chair replacement
Concrete repairs – front door
Concrete repairs – back door
Back door replacement
Parks Reserve Dog Park Fence (Yvonne William)
Town Dock Gazebo
Waubuno Beach Mobi-Mat
Big Sound Marina Dock B (carried from 2015)
37
What is Being Funded From Reserves (Pages 97 to 114)Equipment Replacement Reserve Hillcrest Backhoe
Hillcrest Gator
Hillcrest Tri-Axle Trailer
Trackless Boom Flail
Parks Tractor
Parks ATV x 2
Parks Mower
Building Replacement Reserve Old Firehall Repairs
Transfer from Building Reserve for BOCC roof to fund equipment purchases in the first year of 20 year plan
38
What is Being Funded From Reserves (Pages 97 to 114)
Fleet Replacement Snowplow (pre-budget approved)
Street sweeper
Operations Pick-up x 3
Parks Pick-up
Building Department vehicle
IT Replacement Capital requirements
Staff are currently doing an inventory and a plan given recent changes to infrastructure
39
What is Being Funded From Reserves (Pages 97 to 114)
Wastewater Reserve SPS #6
WW Truck Cap
Pump and VFD
Wet well safety lid
Work Order System
Treatment plant blowers
Sand filters
Sludge sensor
Water Reserve Pick up Truck
Fluoride System Upgrade
SCADA Hardware Upgrade
Membrane Tank Coatings
CLA-VAL Replacement
Water truck cap
Rotork Actuators
Tractor / Blower for snow removal
40
What is Being Funded From Reserves (Pages 97 to 114)
Land Ambulance Personal Response Unit
Ambulance x 2
Proflex Stretcher and IV Pole
Audio Visual Equipment at bases
Server for EMS scheduling
41
Reserve Funds
Income is derived from the bank accounts and added to the reserve fund
Money out relates to either the parking program, or the EMS capital requirements for the year
Money in is from the EMS budget or the agreement with SIFTO
42
What Do I Get for My Taxes
$6.58/day
24 / 7 Police , Fire and
Ambulance Protection,
Crossing Guards
Access to 9 public parks, 1 arena, 1
supervised beach, 1 outdoor rink, 3 boat
launches, trail network
Access to public library, including
programming and collection
Development and Event
Programming
Weekly garbage and recycling
collection, and access to transfer
station
Building inspection and urban planning
services
Access to paved, and maintained roads and sidewalks
44
Impact on Residential Ratepayer
Average single family home with a value of $200,000 at an increase of 1.9%
In 2015 municipal taxes would have been $2,284
In 2016 municipal taxes will be $2,327
An increase of $43 for the year, or $3.58/month
45
What If Tax Increase Above Policy
If Council approves 2.9% increase
2016 municipal taxes would be $2,350
Increase to average homeowner would be $66 for the year, or $5.50/month
The extra $1.92/month would give the Town an extra $95,980 in tax revenue
48 activities (operating or capital) included in the “Considered and Cut” list are under $95,980
This could also be used to increase reserves for future capital ($15.8 to 25.8 mil is required over next 5 years)
46
According to AMO
Tax rates need to raise 8.35% / year for 10 years to fund the infrastructure gap
This would give an additional $619,065 in tax revenue over the 1.9% goal
Would be $190 in additional taxes for a $200,000 home, compared to 2015
$15.83/month
NOT FEASIBLE
Caution
This figure from AMO may also include water and wastewater infrastructure which is user rate supported
47