2015 Final Budget Approved January 5, 2015 - Havelock … · 2017-01-11 · 2015 MUNICIPAL BUDGET APPROVED: JANUARY 5, 2015 1 ... are reactive and require an officer’s attendance

TOWNSHIP OF HAVELOCK-BELMONT-METHUEN 2015 MUNICIPAL BUDGET

APPROVED: JANUARY 5, 2015

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TABLE OF CONTENTS

Background and Timeline.……………………………………….…………..…Page 3

Summary of Key Financial Indicators…………………………..………..……Page 4

Other Financial Information………………………………………..……….......Page 5

Tax Levy Requirement Summary and Tax Rate Impact.………….………...Page 6

Tax Levy Requirement by Department.……………………………………Pages 7-9

Tax Levy Requirement by Department-Notes.…………………………Pages 10-11

Policing….……………………………………………………………………….Page 12

Capital by Department..…..……………………………………………………Page 13

Reserve Summary…………………………………………………………..…Page 14

Reserve Activity 2015……………………………………….……………Pages 15-16

Area Rate Information…………………………………………………………Page 17

Water Budget and User Rates…………………………………………….….Page 18

Sewer Budget and User Rates…………………………………………….….Page 19

Budget Summary-Operating, Transfers & Capital…..……………………...Page 20

Assessment and Tax Changes by Property.….………………………..Pages 21-22



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BACKGROUND AND TIMELINE

BACKGROUND

The annual budget is an estimate of revenues and expenses required to provide municipal services for a specific fiscal year. It is a financial plan that forecasts activities and events to be carried out by municipal Staff and Council. The municipal budget also serves as a management and planning tool to guide municipal operations.

The budget includes operating and capital expenses, revenues from user fees, services charges, reserves and grants. Property taxation revenue funds the difference between expenses and other sources of revenue. TIMELINE Month Objective

April Departmental meetings to distribute materials and review timeline

June First draft of budget submitted to Finance

July to September Administrative review

November Table Budget

December Public Meetings and Target Approval of Budget

*In an election year, the budget is tabled in December with target approval in January.



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SUMMARY OF KEY FINANCIAL INDICATORS 2015

Expenditures

Operating Increase $ 171,770 3.49%

Transfers Decrease $ ( 39,250) ( 8.53%)

Capital Decrease $ (277,691) (15.72%)

Total $ (145,171)

Revenues

Fees/Charges Increase $ 468 .08%

Reserves Decrease $ ( 318,692) (62.99%)

Other Funding Decrease $ ( 35,768) ( 2.99%)

Total $ ( 353,992)

Tax Levy Requirement Increase $ 208,821 4.32%

Tax Levy Requirement Revenue Source Returned Roll Assessment Change $ 182,126 3.77% Tax Rate $ 26,695 .55%



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OTHER FINANCIAL INFORMATION

Residential assessment increase of 3.50% from 2014 to 2015

Total taxable assessment increase of 3.63% from 2014 to 2015

Balance of 1 FTE included in Administration. The 2014 Budget funded only .3 of an FTE

Part time By-Law Enforcement resources included

Mandatory benefit increases and cost of living increase of 1.75% included

Ontario Provincial Police (OPP) new Billing Model impacts included



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TAX LEVY REQUIREMENT SUMMARY

Tax Levy Requirement 2014 $ 4,836,799 Tax Levy Requirement 2015 $ 5,045,620 Increase $ $ 208,821 Increase % 4.32%

TAX RATE IMPACT

Tax Class Assessment Municipal Taxes 2015

Municipal Taxes 2014

Dollar Change

Percent Change

Residential $ 250,000 $ 1,065.66 $ 1,060.02 $ 5.64 .53% Residential $ 300,000 $ 1,278.79 $ 1,272.02 $ 6.77 .53% Residential $ 350,000 $ 1,491.92 $ 1,484.03 $ 7.89 .53%

The above examples reflect the impact of tax rate calculations using final assessment roll totals. Further examples of individual property assessment and tax impact are shown on pages 21 and 22 of this document.



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TAX LEVY REQUIREMENT BY DEPARMENT



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Note Gross revenues and expenditures shown above. Information includes Operating, Transfers and Capital revenues and expenditures.



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TAX LEVY REQUIREMENT BY DEPARMENT-NOTES



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TAX LEVY REQUIREMENT CHANGE BY DEPARMENT-NOTES



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POLICING 2015

Municipal Policing costs have become an important issue for municipalities as the Ontario Provincial Police (OPP) were directed to simplify and make more transparent their cost recovery process for municipal police services.

The OPP delivered the new Municipal Policing Billing Statement for 2015 which incorporates costs for base service and costs for calls for service.

Base Service costs represent municipal costs related to proactive policing services such as administration, training, etc.

Calls for Service costs represent municipal costs related to policing services that are reactive and require an officer’s attendance. The estimated increase in expense to the municipality for Policing for the period of 2014 to 2017 is $ 345,597. A phase in strategy has been introduced for those municipalities experiencing an increase in expense within the policing billing statement. Costs will be capped at $ 40.00 per property per year. Preliminary calculations indicate estimated increases in cost per year as follows:

Amount Notes 2014 Expense $ 896,748 expense amount in 2014 budget 2015 Expense $ 991,091 2015 Municipal Policing Billing Statement 2016 Expense $ 1,165,730 Anticipated 2016 Policing Billing Statement 2017 Expense $ 1,242,345 Anticipated 2017 Policing Billing Statement The amount payable to the Province by the municipality for Policing is levied in the same manner as other departmental expenses. The reference to “per property” or “per household” is used in the formula within the Municipal Policing Billing Statement.



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CAPITAL BY DEPARTMENT 2015



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RESERVES (BUDGETED) 2014 AND 2015



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2015 BUDGET RESERVE ACTIVITY

Elections Contribution-year 1 of 4 for 2018 election $ 11,250

Administration Contributions-ODA $ 2,500, web page $ 1,500, minor/major bldg maint $ 27,000 Withdrawals-financial software upgrade $ 5,500, shingles Administration building $ 40,000, stairs Administration building $ 5,000, phone system $ 7,235

Fire Contributions-equipment replacement $ 85,802 Withdrawals-paving at Fire Station 1 $ 25,000 Police Withdrawals-offset contract expenses $ 28,500 Building Contributions-equipment replacement $ 3,808 Roads Contributions-equipment replacement $ 190,597 Withdrawals-equipment replacement-3/4 truck $ 35,000, steamer $ 13,000 Environmental Contributions-equipment replacement-bins $ 12,250 Medical Centre Withdrawals-phone system $ 3,840



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2015 BUDGET RESERVE ACTIVITY

Parks & Recreation Contributions-equipment replacement $ 76,305 Withdrawals-swings Cordova Park $ 3,500, exterior stairs at arena $ 5,000, flowers $ 500, compressor maintenance $ 5,000, ice resurfacing machine maintenance $ 3,000, Cordova Library Rec Hall garden $ 7,200 (Reserve Fund) Planning Contributions-Official Plan & Zoning By-Law future updates $ 10,000



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2015 AREA RATE BUDGET

2015 TAX LEVY REQUIREMENT

Sidewalks $ 50,000 Streetlights $ 24,000 Transfers (Street lights) $ 4,227 Curbside Garbage Collection $ 41,234 Total $ 119,461 For Area Rate tax rate calculation purposes (Village Ward), the residential assessment increase from 2014 to 2015 is 2.10%. The total taxable assessment increase from 2014 to 2015 is 1.98%.

TAX RATE IMPACT

Tax Class Assessment Municipal Taxes 2015

Municipal Taxes 2014

Dollar Change

Percent Change

Residential $ 150,000 $ 215.62 $ 219.96 ($ 4.34) (1.97%) Residential $ 175,000 $ 251.56 $ 256.61 ($ 5.05) (1.97%) Residential $ 215,000 $ 309.05 $ 315.27 ($ 6.22) (1.97%)

Village of Havelock residents pay additional taxes for services related to sidewalks, streetlights and garbage collection. A property in the Village of Havelock with an assessed value of $ 215,000 will pay the following municipal taxes: General $ 916.47 Village $ 309.05 Total $ 1,225.52



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WATER BUDGET 2015 VS 2014

EXPENSES 2015 2014 CHANGE Wages & Benefits $ 32,209 $ 35,588 ($ 3,379) Operating Expenses $ 321,401 $ 319,798 $ 1,603 Unfinanced Capital $ 50,000 $ 50,000 $ 0 Transfers $ 24,000 $ 24,000 $ 0 Total Expenses $ 427,610 $ 429,386 $ 1,776

REVENUES 2015 2014 CHANGE Service Charges $ 0 $ 300 ($ 300) Penalty Charges $ 840 $ 1,500 ($ 660) Metered Accounts $ 6,100 $ 5,000 $ 1,100 Residential Flat Rate $ 383,287 $ 385,440 ($ 2,153) Commercial Flat Rate $ 37,383 $ 37,146 $ 237 Total Revenues $ 427,610 $ 429,386 $ 1,776 Rates 2015 2014 Change

Residential Flat Rate Monthly $ 55.00 $ 55.00 $ 0.00 Commercial Flat Rate Monthly $ 65.00 $ 65.00 $ 0.00 Commercial Metered Accounts $ 57.00 $ 52.00 $ 5.00 Metered Accounts Change to base amount for Metered Accounts (6 accounts in total) to bring the base amount to be equivalent to flat rate commercial accounts over a three year period.

Year 2015 $ 57 Year 2016 $ 62 Year 2017 $ 67



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SEWER BUDGET 2015 VS 2014

EXPENSES 2015 2014 CHANGE Wages & Benefits $ 6,913 $ 6,572 $ 341 Operating Expenses $ 333,817 $ 334,753 ($ 936) Transfers $ 85,191 $ 83,421 $ 1,770 Total Expenses $ 425,921 $ 424,746 $ 1,175

REVENUES 2015 2014 CHANGE Septage Revenue $ 5,900 $ 5,100 $ 800 Penalty Charges $ 700 $ 800 ($ 100) Metered Accounts $ 9,600 $ 9,600 $ 0 Residential Flat Rate $ 373,077 $ 374,148 ($ 1,071) Commercial Flat Rate $ 36,644 $ 35,098 $ 1,546 Total Revenues $ 435,921 $ 424,746 $ 1,175 Rates 2015 2014 Change

Residential Flat Rate Monthly $ 57.00 $ 57.00 $ 0.00 Commercial Flat Rate Monthly $ 76.00 $ 76.00 $ 0.00 Commercial Metered Accounts $ 114.00 $ 104.00 $ 10.00 Metered Accounts Change to base amount for Metered Accounts (6 accounts in total) to bring the base amount to be equivalent to flat rate commercial accounts over a three year period. Metered sewer accounts are charged 200% of the applicable water rate.

Year 2015 $ 114 Year 2016 $ 124 Year 2017 $ 134



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2015 Budget Summary



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Documents

2015 Final Budget Approved January 5, 2015 - Havelock … · 2017-01-11 · 2015 MUNICIPAL BUDGET APPROVED: JANUARY 5, 2015 1 ... are reactive and require an officer’s attendance