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2011 Budget Listening Session

February 17, 2011

Presenters:

Bob Shelton, Chief Administrative Officer (CAO)

Mike Mayes, Director, Financial Services/Treasurer

2011 Budget PrioritiesStrive to provide quality programs and services to

maintain a high level of community satisfaction.

Provide for the hiring of 20 new Firefighters to meet growth and ensure public safety.

Maintain a responsible and affordable tax levy to respond to current and future needs.

Incorporate carry-over obligations to accommodate growth and new facilities.

Encourage public engagement and consultation in the budget process through enhanced communication efforts.

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Internal & External

Assessment

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

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Strategic PlanVision, Mission & Core Values

VisionWhat we aspire to.

Well beyond the ordinary

With direction from the community we defined our ultimate destination as a community that is well beyond the ordinary. It’s an extraordinary goal that requires deliberate, strategic and guided steps, each taking Newmarket closer to its vision.

MissionHow we’ll get there.

Making Newmarket even better

The corporate mission exists to guide employees in their daily jobs. By striving to make Newmarket even better, employees will help achieve the vision.

ValuesThe principles that guide our actions and behaviours.

Courage & CreativityAccountabilityAccessibility Respect & IntegrityExcellence

The core values are the guiding principles the employees of the Town have chosen to live by as they strive to make Newmarket even better.

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Strategic Plan Focus Areas

Living Well Living well means focusing on health, safety and the environment to promote activity and enrich lives.

Well-Balanced Well-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-Respected Well-respected means inspiring partnerships and co-operation with stakeholders that revolve around well-being, synergy and balanced living.

The 5 Wells

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2011 Drivers & Challenges

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Driver /Challenge Example

Legislation & Agreements Meeting legislated requirements and agreements [i.e. Accessibility for Ontarians with Disabilities Act (AODA), CYFS]

Service Level and Growth Service Delivery Levels, Community Safety/Emergency Services, Asset Replacement Fund Reserves, Parks, Trails & Open Spaces

Decreased Revenues Participation rates changing due to demographic shifts, decreasing Hydro dividend

Increased Expenses Cost of fuel, electricity & other equipment and materials

Workforce Considerations Maintaining a sufficient workforce in an increasingly competitive labour market

Economic Realities Slower than expected recovery, increasing global unrest

Environment Shifts More complex standards, variable weather conditions

Technology Needs Increase in on-line services, communication methods (i.e. Twitter, Facebook, etc.)

Places to Grow Opportunities Investment by others, new ventures, grant opportunities6

2010 Tax Comparators

Measure Newmarket Region 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

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% 4.20% 4.30% 5.00%

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Breakdown of Tax IncreaseUnder Consideration (Preliminary First Draft)

• CYFS budget has not been reviewed by JCC.• Library budget Growth and Enhancement items have been reviewed

by the Board. Town to be advised and will update Library budget accordingly.

Town CYFS Library Total

Base 2.51% 1.67% 0.67% 4.85%

Mandatory 0.56% 0.27% 0.03% 0.86%

Growth 1.10% 2.04% 0.00% 3.14%

Enhancement 0.09% 0.09% 0.00% 0.19%

Subtotal 4.26% 4.07% 0.70% 9.03%

Assessment GrowthSupplementary Taxes

(2.04%)(1.10%)

0.00%0.00%

0.00%0.00%

(2.04%)(1.10%)

Total 1.12% 4.07% 0.70% 5.89%

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2011 Residential Property TaxUnder 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%.

2010 2011 $ Change % Change

Town $ 1,289.90 $ 1,365.87 $ 75.97 5.89%

Region 1,565.50 1,607.77 42.27 2.70%

Municipal 2,855.39 2,973.64 118.24 4.14%

School Board 790.92 790.92 - 0.00%

Total $ 3,646.31 $ 3,764.56 $ 118.24 3.24%

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Budget Challenge

Town$ increase

CYFS$ increase

Library$ increase

Total$ increase

Tax % Increase

Increase from 2010 Base 858,803 661,656 273,049 1,793,508 4.53%

Gapping reduction 150,000 150,000 0.38%

Increase in winter control 394,434 394,434 1.00%

Hydro dividend decrease 137,500 137,500 0.35%

OMERS 221,316 70,596 12,000 303,912 0.77%

Dispatch service 35,096 35,096 0.09%

Additional firefighters 1,069,389 1,069,389 2.70%

CUSP 361,978 361,978 0.91%

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Budget Challenge (cont.)

Town$

CYFS$

Library$

Total$

TaxIncrease

%

Other growth requests 809,198 154,223 115,635 1,079,056 2.72%

Restoring level of Capital Financing 296,000 (3,026) (7,678) 285,296 0.72%

Planned Increase in ARF contribution 631,780 143,366 30,586 805,732 2.03%

Monday service 119,406 119,406 0.30%

Other Enhancement requests 205,809 41,585 (1,400) 245,994 0.62%

Subtotal 4,066,818 2,172,885 541,598 6,781,301 17.11%

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Budget Reductions

Town$

CYFS$

Library$

Total$

Tax Increase

%

Continuation of Corporate-wide Gapping (150,000)

(150,000) (0.38%)

Reduce street lighting budget (200,000) (200,000) (0.50%)

Energy reserve (80,000) (80,000) (0.20%)

Increase in bank interest (115,000) (115,000) (0.29%)

De-annualize additional firefighters (242,964) (242,964) (0.61%)

De-annualize CUSP (216,187) (216,187) (0.55%)

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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) (808,621) (2.04%)

Supplementary Taxes (250,000) (250,000) (0.63%)

Supplementary taxes – extra (184,665) (184,665) (0.47%)

* To be reviewed by JCC and Library Board.

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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) (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%)

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Further Budget Reductions

Town CYFS Library Total Tax Increase

Subtotal after reductions $1,374,201 $1,755,698 $306,557 $3, 436,456 8.67%

Defer capital financing increase ($296,000) ($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 $2,334,724 5.89%

Tax Increase 1.13% 4.07% 0.70% 5.89%

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2011 Budget Meeting and Events ScheduleDATE ACTIVITY

February 17 Budget Listening Session, Municipal Offices, 7:30 to 9 PM

March 4 Detailed 2011 Budget information available to the public online at www.newmarket.ca

March 7 Special Committee of the Whole Meeting: Operating & Capital Budget, Municipal Offices, 1:30 PM

March 21 Budget Open House #1, Ray Twinney Recreation Complex, 7 to 9 PM

March 26 Budget Open House #2, Newmarket Operations Centre, 1 to 3 PM

March 28 Special Committee of the Whole Meeting, Municipal Offices, 1:30 PM

April 4 Special Committee of the Whole Meeting: Budget Report, Municipal Offices, 1:30 PM

April 19 Council Meeting: Final Budget Approval, Municipal Offices, 7 PM16

Thank You.

We look forward to hearing your comments…

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