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

1216

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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

1820

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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