1. Municipality of Mississippi Mills 2017 BUDGET December 13, 2016
Handouts of the presentation are available. It will also be placed on the Town’s website tomorrow.

2. TOPICS Introduction 2016 Accomplishments Budget Challenges
Long Term Planning/Asset Management
2017 Budget
Proposed 2017 Municipal Taxation
Next Steps
Questions / Comments

3. 2016 ACCOMPLISHMENTS

4. 2016 ACCOMPLISHMENTS
Updated the Municipality’s Asset Management Plan and continued to provide funding for infrastructure with a focus on roads, bridges, watermains, wastewater & storm sewers
Continued implementation of the Long Term Financial Plan and presented the Plan to an Eastern Ontario Treasurers’ meeting and the Ontario East Municipal Conference as Mississippi Mills is seen as a leader in this area
Formed an Active Transportation Advisory Committee
Opened a Youth Centre to replace the program formerly provided by TYPS
Received 50% Federal funding for the expansion of the Pakenham Library ($264,880)
Received Trillium grant funding for work at the Almonte Tennis Courts and the Almonte Curling Club
Completed 3.6 km of pavement upgrades (4% of network) and 6.8 km of surface treatment upgrades (7% of network)
Received a Bronze designation from `Share the Road`
Continued to pursue cost efficiencies through joint tendering
and alternative technologies

5. CHALLENGES

6. BUDGET CHALLENGES
Operating cost increases higher than inflation for items such as fuel, hydro, etc.
Growth/infrastructure pressures with limited available resources
Decrease in financial support from the Federal and Provincial governments for infrastructure but continue to have high replacement needs. The Municipality actively pursues all available grant opportunities
There are always budget pressures but the Town is facing additional budget challenges such as………….

7. LONG TERM PLANNING/ ASSET MANAGEMENT
This is a topic that was first introduced a few years ago but continues to evolve although not many changes have been made since the 2014 budget presentiaton

8. LONG TERM FINANCIAL PLAN/ASSET MANAGEMENT PLAN
The LTFP was approved by Council in 2012 and was reviewed in 2015 to confirm the targets/priorities included in the plan
The LTFP establishes target expenditure levels, infrastructure replacement needs, reserve allocations, debt levels and tax revenue requirements to 2030 (7% to 2018 and 2.5% for 2019 to 2030)
The LTFP provides the financial foundation to support the Asset Management Plan (asset replacement/rehabilitation needs to meet target levels of service)
The Long term financial plan is a valuable planning tool for Council and staff when preparing the annual budget and will continue to be updated as circumstances change.
Total projected capital requirements from the Tax base included in the plan to 2030 are estimated to be approx. $53 million. The major expenditure is for roads of approx million. The other significant expenditures relate to bridges & culverts, sidewalks, facilities and vehicles and equipment.

9. ANNUAL CAPITAL NEEDS VS
ANNUAL CAPITAL NEEDS VS. ACTUAL CAPITAL EXPENDITURE FROM TAXATION INCLUDED IN LTFP
The Municipality has completed its asset management plan and long term financial plan based on the required annual investments in infrastructure including growth related projects identified in the development charges study. The required needs (blue line) and the investment included in the LTFP (red line) intersect in 2018 and continue to be relatively the same going forward into the future.

10. TARGET NET CAPITAL SPENDING VS. 2017 BUDGET
Spending Level
Amount
Target per Long Term Financial Plan
$3,203,000
Per Draft 2017 Budget
$3,130,675
Difference
$72,325
Note: Net Capital refers to the contribution from taxation after all other funding sources have been applied i.e. grants, debt, development charges, reserves, etc.

11. ASSET MANAGEMENT PLAN RESULTS
Bridges
2013
2016
Total Number of Bridges
15 (2,519m2)
Good Bridges (BCI >70) 8%
17%
Fair Bridges (BCI 60-70)
21%
20%
Poor Bridges (BCI <60)
71%
63%
Large Structures
Total Large Structures
11 (672m2)
11 (672 m2)
Good Structures (>70)
54%
59%
Fair Structures (60-70)
18%
Poor Structures (<60)
28%

12. ASSET MANAGEMENT PLAN RESULTS
Service Indicators
Paved Roads
2013
2016
Network Length
85.6
93.3
Do Nothing
RCI
17.2 km (20%)
32.7 km (35%)
Rehabilitate
RCI 6 – 7
49.9 km (58%)
47.2 km (51%)
Replace
RCI 0 – 5
18.6 km (22%)
13.4 km (14%)
       

13. ASSET MANAGEMENT PLAN RESULTS
Service Indicators
Surface Treated Roads
2013
2016
Network Length
99.7 km
93.6 km
Do Nothing
RCI
10.5 km (11%)
21.0 km (22%)
Rehabilitate
RCI 6 – 7
74.5 km (75%)
29.4 km (31%)
Replace
0 – 5
14.7 km (14%)
43.2 km (47%)
       

14. TARGET RESERVE LEVELS PER LTFP

15. RESERVES VS. 2017 PROJECTIONS
Reserve Levels
Amount
Target per Long Term Financial Plan at Dec 31/17
$4,050,000
Projected to Dec 31/17
$4,099,100
Difference
$49,100
Note: Excludes W&S reserves

16. TARGET DEBT LEVELS PER LTFP

17. DEBT REPAYMENTS VS. 2017 PROJECTIONS
Amount
Target per Long Term Financial Plan at Dec 31/17
$1,053,185
Projected to Dec 31/17
$1,027,477
Difference
$25,708
Note: Excludes W&S Debt

18. 2017 BUDGET PROCESS

19. Mississippi Mills 2017 Budget
Description
Dollars
Municipal Operations & Capital (Total Expenditures)
$21,937,177
Funding for Municipal Operations & Capital
Municipal Tax Revenue
Long Term Financing
Reserves/Reserve Funds (Dev Charges)
User Fees & Other Revenues
Federal & Provincial Grants
Total Revenue
Current Shortfall
$9,559,935
$2,612,935
$2,409,895
$4,650,771
$2,703,641 $0
THE TOTAL MUNICIPAL OPERATING AND GROSS CAPITAL BUDGET FOR 2016 IS approx MILLION
IT IS BEING FUNDED:
THROUGH MUNICIPAL TAXATION AND GRANT IN LIEUS OF just under 9 million. Again, this YEAR, COUNCIL HAS PROPOSED A 7% LEVY INCREASE.in accordance with the Towns LTFP and asset management plans. The tax levy increase will be discussed later in the presentation.
ALSO PROPOSED IS LONG TERM DEBT OF $.1.4 million. THIS IS NEW LONG TERM FINANCING TO FUND work on the Nugent Bridge, the replacement of 2 fire vehicles and work on the roof at the Almonte Community Centre.
OHER FUNDING SOURCE ARE RESERVES AND DEV. CHGS OF JUST over 1.8m. THIS FUNDING WAS PUT ASIDE IN PREVIOUS BUDGET YEARS FOR PROJECTS INCLUDED IN THE 2016 BUDGET and growth related projects included in the Town’s development charges study.
USER FEES AND GRANTS OF JUST OVER 6 M ARE ALSO BEING USED. THIS INCLUDES PROVINCIAL AND FEDERAL FUNDING (SUCH AS THE GAS TAX. and User FEES for WASTE MANAGEMENT, DAYCARE AND RECREATION

20. 2017 OPERATING AND CAPITAL EXPENDITURES -$21,937,177
THIS graph depict THE ENTIRE OPERATING AND CAPITAL BUDGET BY DEPARTMENT FOR THE TOWN AND AS STATED PREVIOUSLY IS approx MILLION. As you would expect ROADS AND PUBLIC WORKS MAKES UP THE LARGEST SHARE OF THE BUDGET
IT SHOULD BE NOTED THAT DEPARTMENTS SUCH AS DAYCARE, LIBRARY AND RECREATION GENERATE THERE OWN REVENUES THAT OFFSET A PORTION OF THEIR BUDGETS WITH THE REMAINING AMOUNTS BEING FUNDED BY THE municipality THROUGH TAXATION

21. SAMPLE OF 2017 CAPITAL PROJECTS-TOTAL BUDGET $8,212,925
Fire Vehicle, Loader, Plow Truck and Equipment
$655,000
2 Bay Addition to Ramsay Garage
$480,000
Gravel in Ramsay & Pakenham Wards
$418,000
Road Rehabilitation (9 km, 10% of network)
$1,250,000
Nugent Bridge Pakenham Conc. 12N
$1,300,000
Parks (Mill Run, Gemmill, Don Maynard, Riverfront, White Tail Ridge)
$1,275,000
Trail Development
$70,000
Almonte Arena Roof
$300,000
Dasherboard Replacement Pakenham Arena
$675,000
Expansion of the Pakenham Library
$550,000

22. Proposed 2017 Resurfacing Projects
Pavement Renewals: Union St. South and Menzie St.
Surface Treatment : Ramsay Con 7A (Municipal limits to Drummond Side Rd.) and Golden Line Road (McArton to Hamilton-shared with City of Ottawa)
Road Rehabilitation: Cedar Hill Side Rd. (Con 7 to Con 6) and Lionhead/Glen Abby/Muirfield/Troon (Pakenham Highlands Subdivision)

23. PROPOSED 2017 MUNICIPAL TAXATION

24. How Property Taxes are Calculated
Municipal Rates
Education Rates
Property’s
Assessed Value
Property
Taxes = X
County Rates
+ Waste Management Charge

25. BREAKDOWN OF TAX BILL
Not all of the tax revenue collected by the Town is for the municipality. This slide shows the approximate breakdown between the municipality including policing County and School Boards. The Municipality is now breaking out the policing share of approx 8.4% on the final tax bill.

26. Tax Revenue Allocation between Growth and Reassessment 2013-2017 (estimated)

27. ESTIMATED OVERALL RESIDENTIAL TAX CALCULATION ON AVG
ESTIMATED OVERALL RESIDENTIAL TAX CALCULATION ON AVG. ASSESSMENT AND TAX REVENUE INCREASE 7%
Year
Municipal
Police
County
School
Total
2016 (avg. assess=$315K)
$1,232.79
$319.60
$1,174.95
$592.20
$3,319.54
2017 (avg. assess=$322K)
$1,317.72
$322.40
$1,183.32
$605.36
$3,428.80
$ change
 $84.93
$7.08/mth
$2.80
$.24/mth
 $8.37
$.70/mth
 $13.16
$1.10/mth
$109.26
$9.11/mth
% change
6.88%
.88%
.71% 
2.22% 
3.29%
This slide combines an assessment increase with the tax rate changes mentioned in the previous slide.
As a result, the average residential property owner with an assessed value of $315,000 in 2016 can expect an overall tax increase of just under 3% or for the year. The impact to each individual property owner will vary depending on their 2016 assessment change. This slide refers to the average assessment only.

28. COST OF SERVICE PER MONTH FOR RESIDENTIAL TAXPAYER (MUNICIPAL TAXES )
MUNICIPAL SERVICE
MONTHLY COST PER AVERAGE RES. TAXPAYER BASED ON ANNUAL MUNICIPAL TAXES OF $1,640.12=$136.68/MONTH
MONTHLY COST PER $100,000 ASSESSMENT BASED ON ANNUAL MUNICIPAL TAXES OF $512.60=$42.72/MONTH
Emergency Services (Fire, Police, Animal Control, Parking and Other Protection)
$34.43
$10.75
Recreation & Culture
(Library, Parks, Trails, Programs & Events)
$20.92
$6.54
Planning & Development (Planning Services, Heritage Committee)
$2.32
$.73
Economic Development
$3.01
$.94
This slide depicts the monthly cost per municipal service only for the average residential taxpayer.
Average monthly municipal taxes are $ or $41.14 per $100,000 of assessment. As expected, public works and emergency services are the mostly costly of all municipal services.
Review the numbers…………..and services during the presentation.

29. COST OF SERVICE PER MONTH FOR RESIDENTIAL TAXPAYER (MUNICIPAL TAXES )
MUNICIPAL SERVICE
MONTHLY COST PER AVERAGE RES. TAXPAYER BASED ON ANNUAL MUNICIPALTAXES OF $1,640.12=$136.68/MONTH
MONTHLY COST PER $100,000 ASSESSMENT BASED ON ANNUAL MUNICIPAL TAXES OF $512.60=$42.72/MONTH
Childcare
$0.95
$0.30
Roads & Public Works (road/bridge maintenance, winter control, street & traffic lights, etc.)
$51.94
$16.24
Administration & Council & Administration Buildings
$20.10
$6.28
Reserve Allocations for future capital replacement
$3.01
$.94
Total
$136.68
$42.72

30. NEXT STEPS
Continue to review service delivery options and pursue cost/delivery efficiencies within departments
Complete an operational review
Continue to pursue Federal/Provincial grant opportunities
Continue to review and update the Long Term Financial Plan and the Asset Management Plan as circumstances change
Continue to work towards the targets identified in both the Long Term Financial Plan and the Asset Management Plan

31. QUESTIONS? COMMENTS?