2019 Budget Presentation - Oro-Medonte Documents/2020 Budget/2020 B… · 2020 Budget Presentation Corporate Overview December 18, 2019 R. L. Dunn, C.E.T., M.A., ICD.D Oro-Medonte

2020 Budget Presentation

Corporate Overview

December 18, 2019

R. L. Dunn, C.E.T., M.A., ICD.D

Oro-Medonte CAO

Strategic Directions

Building on the work of previous Councils - Council and staff advanced a number of strategic initiatives during the first year of the 2018-2022 term of Council.

2020 Budget Overview – December 18, 2019 2

Environmental Scan - 2019

• Regional Governance Review completed - upper/lowers tiers of government (County and municipalities) were consulted

• Sudden and unfortunate passing of two members of Council in November, 2019

• Execution of Collective Agreement finalized with CUPE (4 year agreement to 2022)

• LPAT decision regarding Burl’s Creek Permanent Use Application

• Citizen Satisfaction Survey completed• overall satisfaction with programs and services is 83%

2020 Budget Overview – December 18, 20193


• Cannabis legalized in Canada

• Disposition of Township shares in Lake Simcoe Regional Airport• 90% now owned by County of Simcoe

• Paving way for airport development

• New Development Charges By-law updated reflecting growth related infrastructure requirements and additional revenue derived from growth

• Integration of private water system customers onto the municipal water system underway (Zone 1)


Completed Initiatives in 2019

• Implementation of Continuous Improvement program utilizing Lean Six Sigma methodology

• Participation in the Province of Ontario’s Regional Government Review

• Progress made in advancing Short-Term Rental By-Law and Licensing

• Development of a comprehensive By-law regarding cannabis production and processing facilities

• Execution of Collective Agreement finalized with CUPE (4 year agreement to 2022)



• OPP community policing costs approximately $3 Million per year

• Township refreshing a number of key master plans in 2019-2020

• Strategic Plan, Fire, Parks, Official Plan, Zoning By-law, Roads

• Municipal Accommodation Tax (MAT) being implemented by neighbouring municipalities which will fund significant marketing budgets putting Oro-Medonte at a disadvantage

• Need for controls/regulations on Short Term Rentals


Environmental Scan – Ongoing Challenges

• Ongoing uncertainty regarding Provincial downloading to lower-tier levels of government

• Significant number of policy changes from the Provincial government

• Increased frequency and severity of weather events (summer and winter)

• Township residents’ interest and engagement in the actions and decisions of Council


Environmental Scan – Ongoing

• Infrastructure funding gap still persists across most Ontario municipalities

• Infrastructure reserves projected deficit

• Succession planning/talent management/recruitment and retention

• Competition for talent/human resources

• 30% of staff potentially retiring in next 3–5 years

• Increasing risk of cyber threats on Township assets


Ongoing Challenges

• Infrastructure challenges – Oro-Medonte evolving from a small town to a midsize municipality

• Population growth impacting ability to deliver expected levels of service

• Competing demands for increased level of service and cost containment

• Environmental sustainability amidst growth pressures

• Pressures from the Province of Ontario and the community to modernize the Township

• Infrastructure reserve balances not adequate to meet long-term needs

• Increasing demands for Bylaw enforcement


Ongoing Challenges

Continuous Improvement & Fiscal Responsibility

• Township capital and operational costs increasing at rates higher than general inflation

• Provincial requirement to deliver comprehensive Asset Management Plan in 2020

• Enhanced need for risk management to mitigate escalating insurance premiums

• Development of space accommodation forecast required for long-term facility capital plans & increasing service requirements


Ongoing Challenges

Enhanced Communications & Customer Service

• Increasing demands for community engagement and communication

Balanced Growth

• Significant developments coming in Horseshoe-Craighurst corridor impacting service delivery and staff resources

• Master Servicing Study

• Financial implications from Legacy Agreements (Line 6 Deviation, Try Recycling)


Ongoing ChallengesInclusive, Healthy Community

• Long term sustainability of fire service delivery• Staffing mix to ensure adequate fire response

• Ability to deliver a new central Community Center within an affordable cost envelope

Employer of Choice

• Health & Safety compliance requires additional training for all staff and service providers

• Increased focus on ‘Employer of Choice’ – recruit, attract, retain staff in competitive market


2020 Focus


• Implement formal Continuous Improvement program across and into departments

• In-depth Core Service Level Review of Township services

• Update Township Strategic Plan with measurement targets and associated community reporting

• Asset Management Plan


2020 Focus


• Enterprise Resource Planning (ERP) IT system update

• Complete Road Network Master Plan

• Update Parks and Recreation Master Plan

• Implement transition to Municipal Service Corporation for Environmental Services

• Complete new Shanty Bay Fire Hall


2020 Focus

Balanced Growth

• Official Plan/Zoning By-Law Update

• Review of Provincial Policies Growth Plan - 2020

• Develop Industrial Land Zoning Strategy

Employer of Choice

• Continued focus on strategic Human Resources management

• Continued focus on Health & Safety program enhancement


2020 Focus

Inclusive, Healthy Community

• Short-Term Rental Licensing & Municipal Accommodation Tax

• Community Risk Assessment

• Certification training plan for volunteer Fire Fighters

• Emergency Planning and Readiness

• Community Safety Plan

• Refresh Township Fire Master Plan

• Advancement of Central Community Centre/SCDSB Partnership


Tax Levy Assumptions

• Township managing $33 Million spend in 2020 ($24M Operating and $9M Capital)

• Staff prepared draft budget with the following assumptions for 2020:

• January 31, 2019 Council commitment of a 4.00% dedicated tax increase for 2020 capital infrastructure funding

• An allocation of 1.75% for the 2020 operating budget

• Township Share 5.75%

• 3.50% Overall Tax Increase (2019 @ 3.99%)


Budget Assumptions

• Inflationary pressures exceed 1.75% provision in Township share of tax increase

• Inflationary pressures include:• CPI for November 2019 2.2%

• Collective Agreement wage increases 1.5%, 1.6%, 1.7% (2019-2021)

• Utilities – hydro & gas 5%

• Insurance premiums – 5% + per year

• OPP Costs – up 3.9% vs 2019

• OMPF funding strategy• 25% grant reduction will be realized in 2019-2021

• Existing fire hall in Shanty Bay not utilized as a satellite station


Tax Levy - 2020

Residential Taxpayers will see an increase of $30.64 per $100,000 of their Assessed Property Value

Overall Tax Increase including County and Education amounts is

3.50%


2019 Tax

Levy

Tax Revenue

from Assmt

Growth

For 0%

Increase 2020 Budget Increase

%

Increase

Overall 19,812,923 410,805 20,223,728 21,385,585 1,161,857 5.75%

Per $100,000 of Assessment

2019 Notional Tax % Change 2020 Increase 2020 Tax

Township 434.20 5.75% 24.94 459.14

County 284.80 2.00% 5.70 290.50

Education 156.45 0.00% - 156.45

Total 875.45 7.75% 30.64 906.09

Apportionment Tax Increase Blended Increase

Township 49.60% 5.75% 2.85%

County 32.53% 2.00% 0.65%

Education 17.87% 0.00% 0.00%

3.50%