2011 Draft Budget February 3, 2011

 Current 2011 draft budget is $12, 088,673, an increase of $497,449 from the 2010 budget or an increase of 4.29% in the requirement from taxation 2011 Draft Budget  No increase in the amount raised from taxation for capital purposes  Current 2011 draft Town wide Operations budget is an increase of 4.6% in the requirement from taxation

2011 Draft Budget - Strategies How did we arrive at 4.29%? Non Controllable Strategies:  3. Increase in insurance costs of 13.8% or $52,000  1. Increase in OPP contract budget of 9.2% or $270,000  5. Reduced OMPF grant of $28,000  2, Benefit costs expected to increase at first year renewal, June 1, by a net $113,000  4. Revenue from the Tillsonburg Golf Course at risk, $60,000  Total: $523,000 mitigated through controllable strategies

2011 Draft Budget - Strategies Controllable Strategies:  1. Salary and wage increase and grid adjustment of $184,000  2. Included $395,000 in Project Satellite costs through a $175,000 dividend from THI and $220,000 reduction in funding for general Asset Management projects  3. New debt in 2011 anticipated to be Quarter town line road, Esseltine to Baldwin of $980,000 and the Fire truck acquisition of $641,000  4. Substantially eliminated the operational reliance on reserves by $778,000, a key strategic recommendation

Controllable Strategies Continued  7. Anticipated additional 2010 PSU of $60,000 incorporated  5. Reduction of non permanent part-time labour of $226,000  6. THI dividend of $75,000 in Operations  8. Rates and fees revenue increase in Development and Communication, Recreation and Finance of $53,000. Further review and up date to the by-law is required  9. Key special projects included: such as Ceridian time keeping for $52,000; Communications strategy for $5,000 ; participation in a County beautification design study for $15,000; and Parks master plan for $17,000 (funded by reserves)

Controllable Strategies Continued  12. Outsourcing of Parks part time maintenance planned to save an anticipated $20,000 (conservative)  11. Reduction of stationary and supplies of 5% or $32,000 by sole sourcing with the Provinces approved vendor of record, Staples Advantage 10. Elimination of meals provided at meetings, paying for internet services, reduction in mobile phones, training costs cut; Xmas party funding cut; staff gift cards cut. Aggregate savings of $50,000

Controllable Strategies Continued  14. General grants decreased to $5,000 saving $8,000. Specific grant to Station Arts decreased to $13,000, saving $13,000. Police special projects decreased to $10,000 saving a further $8,000  13. Cost efficiencies cross functional team to go throughout the town, looking for cost savings. $25,000 included in the budget  15. Fleet vehicles reduced by four units for a reduction in fleet operating expenses of $14,000

Controllable Strategies Continued  16. New capital requests contained to Fire, Personal Protective Equipment, $30,000, funded by specific Fire reserves; Building department office $3,000; Engineering GIS AM, $10,000, funded by reserves; Solid waste two additional lanes at the transfer station, net $20,000; Parks Trans Canada Trail $116,000, funded by grants; Replace Library office furniture and lighting, $13,000, funded by accumulated surplus; and a multi language Museum audio tour, $11,000, funded by Trust. 17. Asset Management projects, with the exception of the Fire truck and Quarter town line road, will be retimed so that no new debt relating to 2011 asset management projects will be placed

Controllable Strategies Continued  Council input for the controllable strategies utilized in the 2011 budget?

Opportunities and Risks  Opportunity: debenture Project Satellite. Since this project is funded in 2011 by a dividend and asset management, leaving it as is sets us up for additional 2012 Asset Management funds of $220,000 and $75,000 in additional dividends for general purposes  Opportunity: OPP PSU for 2009 and additional PSU for 2010 exceeding the budget amount of $60,000  Opportunity: results from RFP for housekeeping services for Corporate Office, Customer Service, OPP building, etc.

Opportunities and Risks Continued  Opportunity and risk: Impact of any 2011 employee retirements  Opportunity: New dispatch contracts for Ingersoll Fire Dispatch services for a net revenue impact of $26,000 and Six Nations for a net revenue impact of $50,000  Opportunity and risk: Fire department to give notice to it’s current customers for 2012 that there will be a dispatch rate increase  Opportunity and risk: reliance on reserves. The 2011 draft budget substantially eliminates the reliance on reserves for operations. However, the 2010 reserve balances are low at $3,059,000, which includes development charges of $1,419,000.

Opportunities and Risks Continued  Risk: OMPF grant will continue to decrease in 2012 by an unknown amount to eventually $0, as was originally notified by the Province in 2005  Risk: results of the Park maintenance tender not yet known  Risk: Community Centre and Roads charging for set ups; may upset the Community Groups  Opportunity: Cost efficiencies are found exceeding $25,000  Opportunity and risk: need for service cuts  Opportunity: with County uploading of Ontario Works drug and disability plan, savings to County of $7.3 million needs to be shared with municipalities

Opportunities and Risks Continued  Opportunity and Risk: Changing the tax installment due dates  Opportunity and Risk: Sell assets  Opportunity and Risk: Implementation of Recreation Master Plan  Opportunity and Risk: Tillsonburg Golf Course revenue stream

Impact to the Taxpayer  Annual impact of a 4.29% increase to the requirement from taxation for a median residential taxpayer is an estimated $67.34, a 5.04% increase or $1.30 per week  Even if the requirement from taxation was 0%, the annual impact to the median residential taxpayer would be an estimated $9.63 or.72%. Alternatively, if there was no change to the median assessment value, with the existing draft budget, the estimated impact is -$7.65 or -.57%.  The median assessment value has gone up $10,000 to $187,000, adding to the increase to the median residential taxpayer

2011 Draft Budget Summary  Management is recommending adoption of the draft budget at a 4.29% increase in the requirement from taxation  Management looks forward to getting direction from Council on the next steps