Town of Newmarket

2011 Business Plan and Budget Preliminary Overview PresentationSpecial Committee of the Whole Budget MeetingJanuary 31, 2011

Presenters: Bob Shelton, CAOMike Mayes - Director, Financial Services/TreasurerSharon Rose - Director, Strategic Initiatives

Presentation Purpose

Update Members of Council on the planning and budget (operating and capital) approval process.

Provide Members of Council with an overview of the

• priorities that shaped 2011 business planning and budget setting;

• 2011 Corporate and Departmental performance goals;

• 2011 budget drivers and challenges;

Review public consultation and communication plan;

Obtain approval of the budget schedule and future planning dates.

2011 Budget Key Messages

Strive to continue providing quality programs and services to maintain a high level of community satisfaction.

Strive to maintain a responsible and affordable tax levy to respond to current and future needs.

Incorporate carry-over obligations for such items as Fire Protection and accommodate growth and new facilities.

Provide even more opportunities for public consultation and engagement on budget.

A Strategic Approach

“Focus on the top goals. Make sure everyone knows the specific job to be done to achieve the goals. Keep score. Set up a regular cycle of follow-through.”

Internal & External

Assessment

Internal & External Assessment

Continuous Improvement Reviews• Let’s Make it Happen (2002)• Results Based Budgeting – Service Level Review (2006)• Call to Action (2009)• Service Delivery Review – Business Planning & Budget

Process (2010) Human Resources Department Review (2004) Community Services Commission Organizational Review

(2007/08) Service Alignment Review (2009) Community Surveys (2002, 2005, 2010) Budget Open House (2008, 2009, 2010) IT Review (2007) PIC’S (e.g. Magna, Operations Centre, CUSP, etc.) Fees & Charges Review

Vision, Mission & Principles

(Core Values)

Vision, Mission & Principles(Core Values)

Well Beyond the Ordinary

Making Newmarket Even Better

Courage & CreativityAccountabilityAccessibility

Respect & IntegrityExcellence

Goals & Objectives

Strategic Plan Priority Areas

Living Well Living well means focusing on health, safety and the environment to promote activity and enrich lives.

Well-Balanced Well-balanced means encouraging a sense of community through an appropriate mix of land uses and amenities.

Well-Equipped & Managed

Well-equipped and managed means implementing policy and processes that reflect sound and accountable governance.

Well-Planned & Connected

Well-planned and connected means strategically planning for the future to improve information access and enhance travel to, from and within Newmarket.

Well-Respected Well-respected means inspiring partnerships and co-operation with stakeholders that revolve around well-being, synergy and balanced living.

Corporate Performance Goals that shaped the departmental business plans and budgets

Goals & Objectives

Strive to maintain core services at current service levels. Prioritize capital projects and initiatives taking into account future

operating costs. Seek collaborative opportunities for effective and excellent service

delivery. Strive for operational efficiencies and effectiveness while demonstrating a

safety first culture and ensuring compliance with mandatory requirements.

Make investments that promote long term sustainability. Enhance activities that support cultural, economic and community

development. Continue to advance customer service excellence. Communicate, inform, collaborate with and engage each other. Provide flexibility that enables the organization to adapt to ever changing

needs. Continue to attract and retain employees to deliver on Council strategic

priorities.

Goals & Objectives

Department Performance Goals

2011 Budget Approval – Next Steps

Internal & External

Assessment

Budget Timelines and Process

2011 Drivers & Challenges

Mandatory/Legislative/Agreements Accessibility for Ontarians with Disabilities Act (AODA), minimum wage, OMERS, Fire staffing

Service Level/GrowthFire, Asset Replacement Fund (ARF) Reserves, winter controls, CUSP, trails, playing fields, parklands

Revenue Hydro dividend decrease, participation rate changes, demographic shifts, RAS stabilizing, etc.

Expenses Utilities, fuel

Keeping Pace Inflationary increases, keeping competitive

Economic Global uncertainty, recovery still underway

Environmental More complex standards, variable weather conditions

Technological Greater demands (e.g. Wi-Fi, Social Media, etc.)

Opportunities Investments by others, new ventures, grant opportunities

Partnerships (Government-to-Government, Other)• N6 Waste Management • Customer Service Centre/Region, etc.• N6 training cooperative• Business

Optimizing 2010 Surplus Gapping, Hiring Delays Outsourcing Sponsorships Service Pricing Policy Trail Levy Recreation Surcharge Responsible Policies (Debt, Benefits, Cola, etc.) Maximizing opportunities for cost recovery (e.g. VIVA) Ongoing service level, department and org structure reviews Remaining ‘opportunity aware’ and acting on these as appropriate

Efficiency & EffectivenessMeasures / Actions / Innovations

• Where do my tax dollars go?• How does Newmarket compare?• What are the budget priorities?• What is the proposed tax increase?• How does the increase breakdown?• How will my tax dollars be spent?• What are the proposed capital projects?• What is the Town doing to stabilize the tax rate?• What’s next?

2010 Budget Questions . . .

Breakdown of Tax IncreaseUnder Consideration (Preliminary First Draft)

• CYFS budget has not been reviewed by JCC.• Library budget Growth and Enhancement items still to be

determined by Board. Also, does not reflect changes made at the last board meeting.

Town CYFS Library TotalBase 2.51% 1.67% 0.67% 4.85%

Mandatory 0.56% 0.27% 0.03% 0.86%

Growth 1.10% 2.04% 0.00% 3.14%

Enhancement 0.09% 0.09% 0.00% 0.19%

Subtotal 4.26% 4.07% 0.70% 9.03%

Assessment Growthand Supplementaries

(3.14%) 0.00% 0.00% (3.14%)

Total 1.12% 4.07% 0.70% 5.89%

2010 Tax Comparators

Measure Newmarket Region Average

GTA Average

BMA (Ontario) Average

Detached Bungalow $3,151 $3,432 $3,380 $2,915

Senior Executive Home $5,190 $5,638 $5,675 $5,438

Multi-Residential walk-up $799 $822 $1,364 $1,327

Multi-Residential mid/high rise $960 $953 $1,460 $1,557

Measure Newmarket Region Average

GTA Average

BMA (Ontario) Average

Office building per sq ft $2.36 $3.02 $3.19 $2.89

Neighbourhood Shopping sq ft $3.63 $3.39 $3.72 $3.36

Hotel per suite $1,246 $1,431 $1,561 $1,803

Standard Industrial sq ft $2.05 $2.05 $2.19 $1.83

Large Industrial sq ft $1.50 $1.35 $1.51 $1.38

2010 Tax Comparators

Measure NewmarketRegion Average

GTA Average

BMA (Ontario) Average

Net Municipal Levy per Capita $1,036 $1,222 $1,208 $1,228

Net Lower Tier Levy per Capita $468 $507

Property taxes as a % of Household Income

3.50% 3.70% 4.10%

Property Tax and Water / Sewer Rates as a Percentage of Income

4.20% 4.20% 4.30% 5.00%

2010 Tax Comparators

2011 Residential Property TaxUnder Consideration

• Regional Municipality of York is projecting a tax increase of 2.5 to 2.7%. Tax shifts due to variable assessment growth in the province could lower the increase applicable to Newmarket in 2010 by 0.5%. The Region continues to benefit from uploading to the Province. Last year this has allowed them to reduce their tax increase by 3.3%.

• School Board increase is based on historical trends. Tax shifts due to variable assessment growth in the Region could lower the increase applicable to Newmarket in 2010 by 0.24%.

• If the 2011 tax shift is the same as in 2010, the all-in tax increase would be 2.50%.

2010 2011 $ Change % Change

Town $ 1,289.90 $ 1,365.87 $ 75.97 5.89%

Region 1,565.50 1,607.77 42.27 2.70%

Municipal 2,855.39 2,973.64 118.24 4.14%

School Board 790.92 790.92 - 0.00%

Total $ 3,646.31 $ 3,764.56 $ 118.24 3.24%

Budget Challenge

Town$ increase

CYFS$ increase

Library$ increase

Total$ increase

Tax % Increase

Increase from 2010 Base 858,803 661,656 273,049 1,793,508 4.53%

Gapping reduction 150,000 150,000 0.38%

Increase in winter control 394,434 394,434 1.00%

Hydro dividend decrease 137,500 137,500 0.35%

OMERS 221,316 70,596 12,000 303,912 0.77%

Dispatch service 35,096 35,096 0.09%

Additional firefighters 1,069,389 1,069,389 2.70%

CUSP 361,978 361,978 0.91%

Budget Challenge

Town$

CYFS$

Library$

Total$

TaxIncrease

%

Other growth requests 809,198 154,223 115,635 1,079,056 2.72%

Restoring level of Capital Financing 296,000 (3,026) (7,678) 285,296 0.72%

Planned Increase in ARF contribution 631,780 143,366 30,586 805,732 2.03%

Monday service 119,406 119,406 0.30%

Other Enhancement requests 205,809 41,585 (1,400) 245,994 0.62%

Subtotal 4,066,818 2,172,885 541,598 6,781,301 17.11%

Budget Reductions

Town$

CYFS$

Library$

Total$

Tax Increase

%

Continuation of Corporate-wide Gapping (150,000)

(150,000) (0.38%)

Reduce street lighting budget (200,000) (200,000) (0.50%)

Energy reserve (80,000) (80,000) (0.20%)

Increase in bank interest (115,000) (115,000) (0.29%)

De-annualize additional firefighters (242,964) (242,964) (0.61%)

De-annualize CUSP (216,187) (216,187) (0.55%)

Budget Reductions cont.

Town$

CYFS$

Library$

Total$

Tax Increase

%

De-annualize other Growth requests (75,216) (40,889) (116,105) (0.29%)

Deferred growth requests (436,412) *(92,445) *(115,635) (644,492) (1.63%)

Assessment growth (808,621) (808,621) (2.04%)

Supplementary Taxes (250,000) (250,000) (0.63%)

Supplementary taxes – extra (184,665) (184,665) (0.47%)

* To be reviewed by JCC and Library Board.

Budget Reductions cont.

Town$

CYFS$

Library$

Total$

Tax Increase

%

Reserve Funding for Growth items (6,500) (40,889) (47,389) (0.12%)

Reserve Funding for Enhance items (80,000) (80,000) (0.20%)

Deferred Enhance requests (90,016) (119,406) (209,422) (0.53%)

Total Reductions (2,692,617) (417,187) (235,041) (3,344,845) (8.44%)

Further Budget Reductions

Town CYFS Library Total Tax Increase

Subtotal after reductions $1,374,201 $1,755,698 $306,557 $3, 436,456 8.67%

Defer capital financing increase ($296,000) ($296.000) (0.75%)

Defer ARF increase ($631,780) ($143,366) ($30,586) ($805,732) (2.03%)

Current budget status $446,421 $1,612,332 $275,971 $2,334,724 5.89%

Tax Increase 1.13% 4.07% 0.70% 5.89%

2011 Budget

26

Please see 2011 Budget Growth & Enhancement Summary

2011 Capital Budget

• Capital Carryovers– Funding for incomplete 2010 projects and commitments are

carried over into 2011 if still necessary.– Council has already approved them and funding has been

allocated.– These will be reported on in February.

• New Capital– Spending will be limited to available funding – ARF, other reserve

funds, DC’s and Capital Financing from Operations.– There has been no increase in these funding sources based on

the current operating budget.– Some projects will be seeking early budget approval at the

February 28 Sp CoW meeting.

To engage the public in the budget process. To better inform the public of the challenges

facing Newmarket and innovative approaches Newmarket is taking to protect the financial sustainability of the Town.

To demystify the budget and make it a more understandable and approachable process.

Public Consultation& Communication Plan

Public Consultation& Communication Plan

Public Consultation& Communication Plan

Public Consultation& Communication Plan

Next Steps . . . DATE ACTIVITY

February 14 (Mon) Council Strategic Planning Workshop

February 22 (Tues) Budget Booklets to CouncilSp CoW – Legislative Matters Orientation Session, Budget Binder Orientation

February 28 (Mon) Early budget approval for Capital

March 4 (Fri) Budget Booklets to Public, Budget Information – Web Posting

March 7 (Mon) Sp CoW – Operating & Capital Budget

March 21 (Mon) Budget Open House, Ray Twinney Complex, 7 to 9 PM

March 26 (Sat) Budget Open House, Magna Centre, 1 to 3 PM

March 28 (Mon) Sp CoW – Budget (Public Meeting)

April 4 (Mon) Sp CoW – Budget Report

April 19 (Tues) Council – Budget Final Approval

May 16 (Mon) Sp CoW – Budget (Commence planning for 5-year Operating, 4-year Capital & 2012 Budget with Dec. 31/11 approval target)

Thank you & Questions