Overview of 2018 Town of Newmarket Budget
The Town of Newmarket's 2018 budget includes operating expenditures, tax-supported and rate-supported operations, and capital spending. The budget process focuses on meeting legislative requirements and community needs. Proposed increases may impact residential properties. Council priorities for the budget year include financial, environmental, community, and organizational readiness aspects. The budget schedule outlines key activities leading to approval. Definitions for decision packages, mandatory items, ARF, and expenses are included in the process.
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Presentation Transcript
CAPITAL AND RATE SUPPORTED OPERATING BUDGETS Special Committee of the Whole November 13, 2017 Presented by: Mike Mayes, Director, Financial Services 1
Budget process overview On an annual basis, the Town of Newmarket prepares a budget to authorize its expenditures for the year. For 2018, this includes: $127 million in operating expenditures - $84 million in tax-supported operations - $43 million in rate-supported operations (water, stormwater, building) $26 million in capital expenditures When developing the budget, the Town prioritizes projects and services that are required to meet legislative requirements and community needs. Although the budgets are broken down into service areas, the budget is considered and recommended as a whole to enhance the Town s decision-making process.
Potential impact on the average residential property Proposed increases for the average residential property using 200 cubic metres of water per year. 200 cubic metres represents the normal annual household use in Ontario. 2018 Budget Monthly cost Increase Water $ 1,157.41 $ 67.71 6.21% $ 96.45 Stormwater $ 33.97 $ 3.72 12.30% $ 2.83
Council Priorities The focus of the 2018 Budget is Sustainability: 1. Financial 2. Environmental 3. Community 4. Organizational Readiness Council s strategic priorities: 1. Developing corridors and community 2. Manage assets, maintain service levels and cultivate talent 3. Cultivate innovation and growth 5
Budget Schedule Date October 16 Activity Preliminary draft budgets to Cow Info report to Council with additional details and answers to questions Special CoW capital & rate-supported operating budgets Special CoW tax-supported operating budget Regular CoW budget and fees & charges Council approval budget and fees & charges October 23 November 13 November 20 November 27 December 4 6
2018 Budget Process - Definitions Decision Package budgetary requests for Enhancements, Growth Mandatory Items are submitted with all related costs, net of recoveries ARF or Asset Replacement Fund monies set aside in a reserve fund to finance the replacement of existing Capital Assets such as roads, watermains and sewers Expenses, and 7
2018 Budget Process - Assumptions Assumptions used in the 2018 Budget: Inflation the March 2017 Toronto CPI was used as a predictor of inflation 2.1% Growth the Town s Growth Revenue Model projects a 1.24% increase for 2018 Preserve service levels for a growing population with any reductions based on prioritization Service level preservation takes precedence over service level enhancements 8
Operating Budget - Water 2017 2018 Change Rate revenue Region Operations ARF Overhead Rate stabilization $ 15,384,000 $ 17,129,802 $ 1,745,802 $ 8,439,000 $ 9,011,485 $ 572,485 3,669,233 3,839,459 170,226 2,713,083 3,127,156 414,073 1,029,485 1,142,000 112,515 - 466,801 9,702 476,503 $ 15,384,000 $ 17,129,802 $ 1,745,802 10
Operating Budget - Wastewater 2017 2018 Change Rate revenue Region Operations ARF Overhead Rate stabilization $ 17,084,000 $ 19,684,137 $ 2,600,137 $ 11,098,000 $ 12,951,320 $ 1,853,320 1,009,467 1,212,938 203,471 3,674,219 3,940,703 266,484 926,770 1,006,000 79,230 375,544 573,176 197,632 $ 17,084,000 $ 19,684,137 $ 2,600,137 11
Water Rate Group Financial Performance 2018 Budget 6-year plan Difference Rate revenue $ 17,129,802 $ 16,909,802 $ 220,000 ARF increase Contribution to rate stabilization $ 414,073 $ 414,073 $ 0 $ 9,702 - $180,750 $ 190,452 12
Wastewater Rate Group Financial Performance 2018 Budget 6-year plan Difference Rate revenue $ 19,684,137 $ 20,604,137 - $ 920,000 ARF increase Contribution to rate stabilization $ 266,484 $ 266,484 $ 0 $ 573,176 $ 527,092 $ 46,084 13
Consolidated rate group Financial Performance 2018 Budget 6-year plan Difference Rate revenue $ 38,813,939 $ 39,513,939 -$ 700,000 ARF increase Contribution to rate stabilization $ 680,557 $ 680,557 $ 0 $ 582,878 $ 346,742 $ 236,136 Consolidated performance exceeds the 6-year plan targets 14
Proposed Water/Wastewater Rates 2017 Average Bill 2018 Average Bill Annual Consumption Change 2" Residential and Non- Residential Customer 2" Industrial, Institutional, Commercial Customer 3" Industrial, Institutional, Commercial Customer 4" Industrial, Institutional, Commercial Customer 200 m3 $ 1,090 $ 1,157 6.2% 4,600 m3 $ 17,629 $ 19,290 9.4% 6,900 m3 $ 26,709 $ 29,514 10.5% 22,000 m3 $ 83,140 $ 89,699 7.9% 15
Comparative Rate Data - Water and Wastewater Newmarket has financially sustainable water and wastewater operations: Full cost recovery Healthy reserve fund levels Comparatively lower infrastructure gaps Tiered water rates have been introduced to address the fact that our residential rates are the 2nd highest in York Region while our non- residential rates are the lowest 16
Operating Budget - Stormwater 2017 2018 Change Revenue $ 1,672,855 $ 1,852,084 $ 179,229 Operations ARF $ 350,476 983,000 $ 1,160,623 340,512 $ 810,147 -642,488 Overhead 339,379 340,000 621 Rate stabilization 0 10,949 10,949 $ 1,672,855 $ 1,852,084 $ 179,229 18
Stormwater Rate Group Financial Performance 2018 Budget 6-year plan Difference Rate revenue $ 1,852,084 $ 1,852,084 $ 0 ARF increase Contribution to rate stabilization -$ 642,488 $ 43,000 - $ 685,488 $ 10,949 $ 4,084 $ 6,885 Additional expenses have been offset by lowering ARF contributions 19
Proposed Stormwater Rates Median Property square meters Customer Type Increase (%) Increase ($) 2017 2018 Low Level Runoff 478 $ 6.36 $7.14 12.3% $ 0.78 Med Level Runoff 465 $ 30.24 $ 33.97 12.3% $ 3.73 High Level Runoff 561 $ 72.98 $ 81.99 12.3% $ 9.01 20
Comparative Rate Data - Stormwater 12 Ontario municipalities reported that they had Stormwater charges in the draft 2017 BMA Study Most are based on flat rates, while Newmarket s rates are based on an automated program that performs detailed analysis to balance fairness and cost effectiveness Newmarket has the lowest residential rate 21
Operating Budget - Building 2017 2018 Change Revenue Operations Overhead $ 1,680,191 $ 1,680,191 $ 0 $ 2,068,439 466,976 $ 2,070,238 466,463 $ 1,799 - 513 $ 2,535,415 $ 2,536,701 $ 1,286 Building reserve - 855,224 - 856,510 - 1,286 $ 0 $ 0 $ 0 23
Decision Packages Recommended Total Amount DP Form # Initiative Category Storm Water Stormwater Management Facility Maintenance Program 1 Mandatory 400,000 2 Catch Basin Cleaning Mandatory 200,000 Sr. Climate Change Coordinator - Contract to Full-Time 18 Growth 107,356 $ 707,356 Total Water & Wastewater Convert Water Quality Analyst From Contract to Full-time GIS Technician- Cost Allocation to Water &WW 3 Mandatory 8,267 22 Growth 84,949 Total $ 93,216 25
Capital Request Summary Development charges ARF Other General Total $ millions Replacement 10.9 3.6 14.5 Growth 8.7 0.6 9.3 Other 0.9 0.7 0.5 2.1 Total 11.8 8.7 4.9 0.5 25.9 27
Replacement Capital Replacements are determined by condition assessments such as the Roads Need Study $14,488,100 in replacements are funded: ARF $ 10,943,100 76% Federal Gas Tax 2,100,000 15% Grants 795,000 5% Reserves 650,000 4% 28
Replacement Capital Major Projects include: Municipal Infrastructure projects - $4,235,000 Vehicles and Equipment Replacement - $1,254,000 Sports Field Lighting Replacement - $1,016,000 Magna Centre roof repair - $950,000 All other facility maintenance needs - $934,500 Capital Projects Engineering Staff Time - $900,000 Engineering/Design for Future Projects - $850,000 Fernbank Farmhouse Maintenance - $600,000 29
Growth Capital Growth needs are determined by growth plans such as the Development Charges (DC) Background Study $9,313,020 in to maintain service levels in the face of growth are funded from: Development Charges (DC s) $ 8,660,775 93% Reserves 374,300 4% Other Sources 277,945 3% 30
Growth Capital Major Projects include: Haskett Park Trail & Davis Drive Breathing Space Construction - $1,700,000 ** Davis & Bathurst Intersection Improvements (Sidewalk & Streetlighting) - $1,550,000 * Water/Wastewater Master Servicing Study Implementation - $1,281,500 * Recreation Playbook Implementation - $1,013,000 ** Satellite Building Glenway - $500,000 * Yonge Street North of Davis to Green Lane Consulting - $500,000 * * Funded 100% from DC s **Funded 90% from DC s 31
Other Capital Projects These are projects and studies to address legislated and health & safety requirements, and to meet Council direction. $2,132,000 is funded from: ARF $ 914,000 43% General Revenues 495,000 23% Grants 481,427 23% Reserves 241,573 11% 32
Other Capital Projects Major Projects include: Stormwater Management Pond Clean Outs - $714,000 * Low Impact Development (LID) & New Stormwater Facilities - $200,000 * Community Energy Plan Implementation - $310,000 Trail Lighting TTT Tannery to CN Crossing - $160,000 Lighting of Pathways - $180,000 * Funded from Stormwater ARF 33
How to give feedback Residents are encouraged to Get Involved in the 2018 budget process
Next Steps Date October 16 Activity Preliminary draft budgets to Cow Info report to Council with additional details and answers to questions Special CoW capital & rate-supported operating budgets Special CoW tax-supported operating budget Regular CoW budget and fees & charges Council approval budget and fees & charges October 23 November 13 November 20 November 27 December 4 35
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