1. 2016 Draft Budget Committee of the Whole December 7, 2015 Presenters: Bob Shelton - Chief Administrative Officer Mike Mayes - Director, Financial Services/Treasurer Ian Laing - Chief, Central York Fire Services

2. 2016 Budget Schedule ACTIVITYDATESTATUS Special Council – Approval of Fees & Charges November 30Done Special CoW – Operating budgets, proposed staffing requests & CYFS governance December 7In process Special CoW – Capital budget, ARF funding & infrastructure levy December 14 Special CoW - final review of budget January 11 Council approval of budget, and fees and charges January 18 2

3. 2016 Budget Goals Maintain service levels Continue to deliver on Council priorities Stay within the 2.5% tax increase target Financial sustainability Balance risk Address Budget drivers 1 2 3 4 5 6 3

4. Service levels 4

5. TOWN SERVICES Decrease Maintain or Increase Bylaw and Licensing services44 (24%)152 (76%) Community programs and events44 (24%)152 (76%) Facilities, parks and trails35 (18%)161 (82%) Fire Services40 (20%)156 (80%) Planning and Development Services 52 (27%)144 (73%) Public Library Services64 (33%)132 (67%) Roads, bridges and sidewalks22 (11%)174 (89%) Solid waste management17 (9%)179 (91%) What have we heard so far? 5

6. Advancing Council priorities 6

7. Council Priority: Economic Development / Jobs 20152016 a. Implementing affordable broadband Non-binding RFP issued On-going discussion Continue discussion with recommendations to follow b. Reviewing & Prioritizing Economic Development Strategy NEDAC finalizing process and timeline for ED Re-fresh ED strategy refresh Implementation plans c. Revitalizing Community Centre Lands and addressing downtown parking needs Assessing site needs to bring forward for development Signage plan and wayfinding strategy for parking Implement steps for site development readiness Implement signage and wayfinding Parking Plan 7 Note: 2015 Report Card to provide final status 2016 examples supported through budget

8. Council Priority: Economic Development / Jobs (cont’d) 20152016 d. Creating vibrant & livable Davis Drive & Yonge Street corridor strategy Internal staff team Council workshop CoW report being written CoW report (Jan) re: marketing of corridors Implementation phase e. Supporting Innovative projects and partnerships EDCO nomination – CCE (Innovation Team) CreateIT launched Ongoing partnerships Continuation of ongoing initiatives and new directions identified through ED Re-Fresh 8

9. Council Priority: Enhanced Recreation Opportunities 20152016 f. Enhancing Recreation and Community Facilities Recreation Playbook adopted Capital budget allocated for artificial turf, spray pads Land needs reviewed Spray pad locations and phasing for approvals and implementation Finalize artificial turf negotiations Continue to review and implement Playbook Re-open Old Town Hall Open new trails g. Supporting Community & Neighbourhood Projects 3 Pilot outdoor ice rinks Approval of new community garden Continuation of 2015 initiatives Advance new community garden 9

10. Council Priority: Community Engagement 20152016 h. Aligning ourselves with communications best practices New website launched Community Open House Continue enhancing communication channels i. Engaging our changing resident demographics Extensive consultation and use of Environics Analytics in Playbook Aging in Place workshop Seniors Plan Continue to seek new methods of engagement 10

11. Council Priority: Efficiency / Financial Management 20152016 j. Ensuring effective and efficient services Ongoing implementation of Results Based Accountability (RBA) Framework across Community Services Internal reviews Expansion of RBA into Economic Development Continue internal reviews and implementation N6 and other partnership initiatives k. Measuring and benchmarking our financial performance Corporate quarterly reports provided across Commissions to Council Asset management data registry and condition assessments Continue comparator studies 11

12. Council Priority: Traffic Safety and Mitigation 20152016 l. Ensuring safe streetsRecruit Transportation Manager Sidewalk snowploughing enhancement Coordinate with YRP and community on traffic mitigation initiatives Implement traffic mitigation measures Sidewalk snowploughing m. Improving traffic congestion Worked with Region on mitigating and communicating Davis Drive closures Coordinate plans for Town's capital projects with Region to manage traffic disruption Planning for future road network 12

13. Council Priority: Traffic Safety and Mitigation (cont’d) 20152016 n. Supporting major transit service enhancements Davis Drive vivaNext corridor completion and service initiation Yonge Street vivaNext design reaching 100% Mobility HUB study at Newmarket GO Station Advance Active Transportation Plan 13

14. Council’s budget target was met. 14

15. Budget Drivers NON-DISCRETIONARY ITEMS 2015 enhancements carried forward0.33% Magna naming rights, term expiration0.24% Re-opening Old Town Hall0.19% REVENUE SUSTAINABILITY Revenue right-sizing1.83% Phasing adjustment in 2017(0.24%) 2.35% Allowance for remainder of the budget0.15% * Target for base budget2.50% 15 * Includes assessment growth and growth expenditures

16. 2.5% Target Phasing 13% of revenue adjustment to 2017 ($130,000 ) Street light maintenance cost reduction by $50,000 Reduce insurance transfer to reserves by $100,000 Reduce Supplementary Tax revenue by $90,676 Set capital financing at $500,000 Increase provision for hiring gaps to $400,000 ($269,000) Other budget reductions of $843,119 (details in supplementary info ) 5.37% 16 2.87% in reductions

17. Staff continue to refine the budget. 17

18. Updates Since Last Presentation UPDATES Tax increase $ Tax increase % Preliminary draft budget$1,326,3232.50% Updated staffing requests-39,237-0.07% Updated reductions-16,963-0.03% Remove additional garbage bag tag revenue – not approved 20,0000.03% Total refinements-$36,200-0.07% Draft budget$1,290,1232.43% 18

19. Risk has been balanced in the budget. 19

20. Risk Growth revenue Hiring gaps Budget reductions Revenue adjustment phasing 20

21. Mitigation measures to balance risk Growth items at full annual cost Manage hiring gaps Rate stabilization Investment Strategy 21

22. Additional security Other operating reserves Enhanced monitoring Enhanced operational responsibility & accountability 22

23. Sustainability measures are contained in the budget. 23

24. 2017-19 Preliminary Outlook TAX INCREASE2016201720182019 DRAFT BUDGET Starting point based on known drivers, subject to refinement Base budget (Town)1.491.50 CYFS – including growth1.331.631.50 Newmarket Public Library0.240.15 Phasing of 2015 enhancements0.330.270.26 Growth expenses (excludes CYFS) 0.89 0.30 Growth revenue (1.00) Revenue adjustments1.590.23 Other one-time adjustments0.43 Adjustments to capital financing(0.42) Other reductions(2.38)TBDTBSTBD Total, prior to refinement2.503.082.712.45 24

25. Newmarket’s tax rates are competitive. 25

26. Competitive Property Taxes 26

27. Additional staff are required to meet the demands of growth and implement Council plans. 27

28. Staffing requests have undergone a thorough review Initial requests – 26 fulltime positions OLT review - deferral of 11 fulltime and 1 part-time position SLT refinement – final request consisting of 13 fulltime and 1 contract position with the reduction of 1 part-time position Prioritization/categorization by OLT/SLT 28

29. These requests fulfill a variety of requirements Mandatory ($52,907) – Compliance Officer for health and safety Enhancement ($0) – 1-year contract for a Finance Business Analyst to implement the Stormwater Management rates and refine water rates, not tax supported - financed by rates Growth ($423,567) – to maintain service levels for a growing population Fire Master Plan ($147,823) – 4 firefighters as 1 st phase in adding a 7 th platoon, April start 29

30. Growth requests have been prioritized PriorityDepartmentPosition All requests minimize the risk to service levels from growth Supports a Council approved plan and is tied to a capital commitment Public Works Services Natural Heritage Coordinator (FT) Information Systems (IT) Applications Business Analyst (FT) Cost savings or revenue generation Financial ServicesFinancial Analyst (FT) Corporate CommunicationsGraphics Support (FT) Information Systems (IT)G.I.S. Analyst (FT) Procurement ServicesContract performance (PT) 30

31. Growth requests have been prioritized (cont’d) PriorityDepartmentPosition All requests minimize the risk to service levels from growth Cost savings or revenue generation Newmarket Public LibraryCommunity Outreach (PT) Public Works Services Training & Safety Compliance Officer (PT) Legal Services Associate Solicitor (PT to FT) Public Works Services Forestry Supervisor (PT to FT) Other Public Works ServicesFacility Worker (PT to FT) Public Works Services Parks Maintenance (PT to FT) 31

32. Budget impact has been minimalized PositionOffset Budget Impact Funding from Growth Natural Heritage Coordinator None applicable (DP-37)$110,984100% Applications Business Analyst Cost reductions (DP-16)$5,2687% Financial Analyst Cost reductions (DP-12)$00% Graphics Support Cost reductions (DP-14)$18,60225% G.I.S. Analyst Cost reductions (DP-17)$11,34714% Contract performance Part-time position (DP-25)$39,363100% Community Outreach (Library) Part-time staff (DP-9)$25,732100% 32

33. Budget impact has been minimalized PositionOffset Budget Impact Funding from Growth) Associate Solicitor Cost reductions and conversion from part-time (DP-19) $61,57358% Forestry Supervisor Conversion from part-time (DP-32) $82,57075% Facility Worker Conversion from part-time (DP-29) $42,12061% Parks Maintenance Conversion from part-time (DP-42) $26,00841% Total$423,567 33 In terms of budget impact, this is equivalent to about 5 fulltime positions.

34. Initial 2016 Staffing Request –4 Fire Fighter positions –2 Fire Prevention positions –2 Support positions Revised Staffing Request –Deferred 4 Fire Fighter positions to May 2016 –Deferred 2 Fire Prevention positions –Deferred 2 Support positions 34 Staffing Options

35. Service Level Performance Targets PERFORMANCE MEASURE CENTRAL YORKNFPA 1710 BenchmarkCriteriaBenchmarkCriteria Dispatch Time60 seconds- 80% Turnout Time60 seconds- 80 seconds90% Initial Response 6 minutes total response time (4 firefighters) 90% 4 minutes travel time (4 firefighters) 90% Depth of Response 10 minutes total response time (12 firefighters) 90% 8 minutes travel time (14 firefighters) 90% 35

36. Deployed Resources INITIAL RESPONSE DEPTH OF RESPONSE 36 6 MINUTES 10 MINUTES

37. 2014 Response Data 37

38. Council has some options to choose from. 38

39. Average Residential All-in Tax Increase Based on 2.5% Target 20152016 $ CHANGE % CHANGE Town Portion$1,762.15$1,806.20$ 44.052.50% Region Portion1,831.751,883.9652.212.85% Municipal sub-total$3,593.90$3,690.16$96.262.68% School Board Portion878.87 0.000.00% TOTAL$4,472.77$4,569.03$96.262.15% Based on an average assessment of $450,072 The Region’s revised outlook projects a tax increase of 2.85% No increase in the School Board is anticipated at this time This does not include an Infrastructure Levy (ARF) 39

40. Next Steps for Council Additional Council priorities Adjust risk levels Adjust service levels Other items identified 40

41. The utility budget moves towards full compliance and full sustainability. 41

42. Water Costs: Who Should Pay? Rate structure should ensure that costs are shared fairly Pay now or pay later Proposed budget is fully compliant and sustainable, with no discretionary service levels 42

43. Combined 2016 Utility Budget 2015 Budget 2015 Projection 2016 Budget Revenue$32,792,152$31,750,000$32,883,108 Expenses: Regional charges$18,234,184$17,300,000$18,320,000 Asset Replacement Fund contributions 5,611,065 6,099,460 Operating costs6,986,3887,581,3627,077,788 Debt servicing1,257,573 1,138,910 $32,089,210$31,750,000$32,636,158 Rate Stabilization Fund contribution $702,942$0$246,950 43

44. Next Steps… 44

45. 2016 Budget Schedule ACTIVITYDATESTATUS Special Council – Approval of Fees & Charges November 30Done Special CoW – Operating budgets, proposed staffing requests & CYFS governance December 7In process Special CoW – Capital budget, ARF funding & infrastructure levy December 14 Special CoW - final review of budget January 11 Council approval of budget, and fees and charges January 18 45

46. Thank You