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

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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

Bottom LineIn Conclusion

43

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