Presentation on theme: "Town of Newmarket 2011 Business Plan and Budget Preliminary Overview Presentation Special Committee of the Whole Budget Meeting January 31, 2011 Presenters:"— Presentation transcript:
Town of Newmarket 2011 Business Plan and Budget Preliminary Overview Presentation Special Committee of the Whole Budget Meeting January 31, 2011 Presenters: Bob Shelton, CAO Mike Mayes - Director, Financial Services/Treasurer Sharon 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 Internal & External Assessment Vision, Mission & Principles (Core Values) Goals & Objectives Action Plans Performance Measures Monitoring, Tracking & Reporting “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 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 & Creativity Accountability Accessibility Respect & Integrity Excellence
Goals & Objectives Strategic Plan Priority Areas Living WellLiving well means focusing on health, safety and the environment to promote activity and enrich lives. Well-BalancedWell-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-RespectedWell-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 Development and Approval of Action Plans Performance Measures Monitoring, Tracking & Reporting
Budget Timelines and Process
2011 Drivers & Challenges Mandatory/Legislative/Agreements Accessibility for Ontarians with Disabilities Act (AODA), minimum wage, OMERS, Fire staffing Service Level/Growth Fire, Asset Replacement Fund (ARF) Reserves, winter controls, CUSP, trails, playing fields, parklands Revenue Hydro dividend decrease, participation rate changes, demographic shifts, RAS stabilizing, etc. ExpensesUtilities, fuel Keeping PaceInflationary increases, keeping competitive EconomicGlobal uncertainty, recovery still underway Environmental More complex standards, variable weather conditions TechnologicalGreater 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 & Effectiveness Measures / 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 Increase Under 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. TownCYFSLibraryTotal Base2.51%1.67%0.67%4.85% Mandatory0.56%0.27%0.03%0.86% Growth1.10%2.04%0.00%3.14% Enhancement0.09% 0.00%0.19% Subtotal4.26%4.07%0.70%9.03% Assessment Growth and Supplementaries (3.14%)0.00% (3.14%) Total1.12%4.07%0.70%5.89%
2010 Tax Comparators MeasureNewmarketRegion 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
MeasureNewmarketRegion 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 $2.19$1.83 Large Industrial sq ft$1.50$1.35$1.51$ Tax Comparators
MeasureNewmarket Region 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% 4.30%5.00% 2010 Tax Comparators
2011 Residential Property Tax Under 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% $ Change% Change Town $ 1, $ 1, $ % Region 1, , % Municipal 2, , % School Board % Total $ 3, $ 3, $ %
Budget Challenge Town $ increase CYFS $ increase Library $ increase Total $ increase Tax % Increase Increase from 2010 Base 858, , ,049 1,793, % Gapping reduction 150, % Increase in winter control 394, % Hydro dividend decrease 137, % OMERS221,31670,59612,000303, % Dispatch service35, % Additional firefighters 1,069, % CUSP 361, %
Budget Challenge Town $ CYFS $ Library $ Total $ Tax Increase % Other growth requests 809, , ,6351,079, % Restoring level of Capital Financing 296,000 (3,026) (7,678) 285, % Planned Increase in ARF contribution 631, ,366 30, , % Monday service 119, % Other Enhancement requests 205,809 41,585 (1,400) 245, % Subtotal 4,066,818 2,172, ,5986,781, %
Budget Reductions Town $ CYFS $ Library $ Total $ Tax Increase % Continuation of Corporate- wide Gapping (150,000) (0.38%) Reduce street lighting budget (200,000) (0.50%) Energy reserve (80,000) (0.20%) Increase in bank interest (115,000) (0.29%) De-annualize additional firefighters (242,964) (0.61%) De-annualize CUSP (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) (2.04%) Supplementary Taxes (250,000) (0.63%) Supplementary taxes – extra (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) (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 TownCYFSLibraryTotal Tax Increase Subtotal after reductions $1,374,201$1,755,698 $306,557 $3, 436, % Defer capital financing increase ($296,000)($ )(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, % Tax Increase1.13%4.07%0.70%5.89%
2011 Budget 26 What’s In What’s Out 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... DATEACTIVITY February 14 (Mon)Council Strategic Planning Workshop February 22 (Tues)Budget Booklets to Council Sp 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)