2018 BUDGET OVERVIEWPUBLIC MEETING – FEBRUARY 28TH, 2018

Township of Alnwick/Haldimand

Arryn McNichol, Treasurer

Agenda 2017 Budget Accomplishments

2018 Budget Overview

2018 Budget Departmental Highlights

Municipal Tax Rate Impact

Revenues & Expenditures

Long Term Debt

Reserves

Asset Management Plan

Current and Future Budget Challenges

Closing Remarks

General Government

Governance

Corporate Management

Program Support

General Government – 2017 Budget Accomplishments & Highlights

Practice Open, Accountable and Sustainable Government to Inform and Involve All People

Completed and sent out newsletters

Continued work on archival of municipal documents and records retentions/management

Public meetings to discuss specific and general council plans

Address Infrastructure, Investment and Renewal

Council chambers floor refinished

Parking lot at municipal office refinished

Carpet and painting in the Immel Wing completed

Parks Master Plan in process

Economic Development Plan in process

Transportation Services

Surface Treated km = 256

Paved km = 14

Gravel = 167

Bridges & Culverts = 45

Transportation– 2017 Budget Accomplishments & Highlights

Address Infrastructure, Investment and Renewal

Purchase of new tandem

Purchase of an excavator

Transfer of $10,000 to a winter contingency reserve

Approximately $600,000 on roads (construction, surface treatment, recapping)

Building upgrades a work in progress

Two new staff hired

Protection Services

- Fire Department

- Emergency Measures

- OPP

- Community Policing

- Building Permits &

Inspection

Protection Services– 2017 Budget Accomplishments & Highlights

Address Infrastructure, Investment and Renewal

A new joint EMS/firehall was started in Roseneath with completion in 2018

A new tanker/pumper was ordered with arrival in 2018

A new pickup truck was purchased

$100,000 was transferred to a capital reserve

Purchase of new hose, bunker gear and pagers

Provide services that protect people, property and the environment in promoting healthy lifestyles

Fire prevention and public education materials/events

Firefighter training and courses

Emergency Measures mock training exercise

Community policing

Highlights OPP is the largest single expense in protection services (over $1,000,000). Policing will be

increasing in 2018

Building permits have increased since 2014. 2017 revenues increased significantly over what was budgeted

Recreation & Cultural Services

Libraries

Community Centres

Arena

Wicklow Beach Boat Launch

Municipal Parks

Recreation & Culture 2017 - Accomplishments and Highlights

Address Infrastructure, Investment and Renewal

Dehumidifier, ice resurfacer, fencing, utility vehicle, and numerous building upgrades purchased for arena.

Fenella Community Centre parging completed on exterior of building

Grafton Community Centre furnaces purchased

Renovations for washrooms of the Alnwick Civic Centre and Centreton Community Centre are transferred to the 2018 Budget

There were a number of capital improvements at the library branches

There were a number of library fundraising events held

Practice open, accountable and sustainable government to inform and involve all people Parks Master Plan with associated public meetings

Open Parks and Recreation Committee meetings

Open Community Centre committee meetings

Library offered programs for the public

Planning and Development

Planning & Development 2017 - Accomplishments

and Highlights

Provide Services that Protect People, Property and the Environment in Promoting Healthy Lifestyles

Processed 36 Consents

Processed 24 zoning amendment applications

Processed 3 minor variances

Completed an update to the Comprehensive Zoning By-Law

Health Services (Active & Heritage Cemeteries)

Health Services 2017 - Highlights

The Township looks after 6 heritage and 4 active cemeteries.

Projects Completed

Maintenance of cemeteries

Projects Outstanding

GIS mapping

There has been only one plot sale to date. All care and perpetual maintenance funds have been transferred to the Public Guardian Trustee.

Environmental Services

Grafton Communal Water System

Water Treatment, distribution, and transmission

Rates are based on the principal of conservation and cost recovery

2017 Summary

Overall, 2017 has ben a good year! Expenses have been managed well and we have received higher than budgeted revenues.

Most projects contained within the 2017 budget have been completed or have been moved to the 2018 budget

2018 Budget Overview

Total Budgeted Levy is a 4.9% levy over levy increase over 2017 after applying growth.

Estimated $648,300 being contributed to reserves

Over $1,100,000 being contributed from reserves

Over $1,900,000 in capital additions. This does not include the new EMS/Firehall ($2,300,000) which will be funded with a debenture late 2018

Taxes are collected on behalf of the school boards and Northumberland County.

2018 Budget Overview

Total $ tax levy increase is $327,000 and a 1% increase is approximately $53,000

Budget maintains programs and services

Budget helps to address the challenge of capital replacement

Donations and Commitments of appoximately$50,000

2017 Total Taxes Collected (%)

County39%

Municipal43%

Education18%

County Municipal Education

2017 Total Taxes Collected (%) 2013- 2017

General Government

Economic Development

HR/Payroll

Finance

Health and Safety

General Government – 2018 Budget Highlights

Council is currently at a ($545) increase over the 2017 budget $3,000 professional development for each Council member

Special events include volunteer appreciation, charity events, Christmas Party

Capital includes a contingency of $2,500

Administration is currently at a 7% ($40,000) increase over the 2017 budget Capital items include new technology and cabinets

Professional development and training was increased over the 2017 budget by $2,000

A Parks Master Plan is to be completed over 2018

Economic Plan is to be completed in 2018

Donations has increased over 2017

Includes a new HR employee

General Government – 2018 Budget Highlights

Practice Open, Accountable and Sustainable Government to Inform and Involve All People

Retentions management initiative

Newsletters

Address Infrastructure, Investment and Renewal

Purchase of additional laptops & cabinets

Promote Economic Development

Strategic Plan Economic Development Study

Advertising

Transportation Services

Surface Treated km = 256

Paved km = 14

Gravel km = 167

Bridges & Culverts = 45

Transportation– 2018 Budget Highlights

Public Works department is at a 3% ($68,000) increase over the 2017 budget

There are a number of items listed on our Asset Management Plan that were due to be replaced (2013 -2018) that are not reflected in the budget include:

CAT Loader 2003 924 GII

John Deere Backhoe 310SJ

John Deere Tractor 2130

Steamer Thompson

Three 740 Champion Graders (one to be refurbished in 2018)

Public Works Storage Shed for fencing and tires

Ford 1 Ton F350

Transportation– 2018 Budget Highlights

There are a number of items listed on our Asset Management Plan that are due to be rehabilitated or improved (2013 -2018) that are not reflected in the budget include:

Bull Road Bridge

Drope Road Bridge

Ferguson Road Bridge

Macklin Bridge

Massey Road Bridge

Whitney Road Bridge (this bridge is scheduled to be replaced in the 2018 budget)

Bulls Mill Road Culvert

Transportation– 2018 Budget Highlights

Address Infrastructure, Investment and Renewal

Building upgrades (amount moved forward from 2017 budget)

Contribution of $5,000 to dredging reserve

Approximately $350,000 to $500,000 for road work

Purchase of a new tandem ($235,000)

Contribution to winter reserve ($10,000) and Building reserve ($50,000)

Replacement of Whitney Road Bridge

Provide Services that protect people, property and the environment

Testing signs for reflectivity

Brushing

Line painting of roads

Additional guard rails

Winter control plowing, sanding, & salting

Sidewalk maintenance

Snow removal

Roadside mowing

Protection Services

Fire Department

Emergency Measures

OPP

Community Policing

Protection Services– 2018 Budget Highlights

Fire department is currently at a $192,000 increase over the 2017 budget excluding the cost of the new firehall. The new firehall will be funded using a debenture over 30 years.

CBO/By-Law is currently at a $35,000 decrease over the 2017 budget.

Police Service Board is currently at a $3,300 decrease over the 2017 budget

Community policing is currently at a $3,817 decrease over the 2017 budget

Emergency Measurers is currently at a $40,000 decrease over the 2017 budget

Protection Services– 2018 Budget Highlights

Address Infrastructure, Investment and Renewal

Contribution of $183,000 to capital reserve to be used toward the purchase of a new tanker truck. Utilization of $456,000 to fund a new pumper tanker in 2018

Purchase of a new, bunker gear, water rescue equipment, hose

Purchase of a new pick up truck utilizing reserves for the building department

Completion of a new Firehall

Provide services that protect people, property and the environment in promoting healthy lifestyles

Fire prevention and public education materials/events

Community policing committee

Emergency measures mock exercise and emergency planning

Dedicated emergency lines

Building permit issuance

OPP contract

Highlights OPP is largest single expense in protection services (over $1,000,000). Policing will be

increasing in 2018 ($9240)

Recreation and Culture

Libraries

Community Centres

Arena

Wicklow Beach Boat Launch

Parks

Recreation & Culture 2018 Budget Highlights

2018 Parks budget has increased by ($51,000) over the 2017 budget

2018 Arena budget has increased by ($61,000) over the 2017 budget

2018 Alnwick Civic Centre budget has increased by ($15,000) over the 2017 budget

2018 Centreton Community Centre budget has increased by ($4,500) over the 2017 budget

2018 Fenella Community Budget has increased by ($9,500) over the 2017 budget

2018 Grafton Community Centre Budget has decreased by ($15,000) over the 2017 budget

2018 Vernonville Community Centre budget has increased by ($3,400) over the 2017 budget

Recreation & Culture 2018 Budget Highlights

Address Infrastructure, Investment and Renewal

Fenella Community Centre – Chimney rebuild and new sound system

Centreton Community Centre – New sound system

ACC – New sound system, windows, repair of sidewalks and interlocking brick

Arena – Refrigeration and building upgrades

Library – New books, branch renovations

CCC – New sound system

Provide services that protect people, property, and the environment in promoting healthy lifestyles

Hall rentals

Community events

Baseball, hockey and other sports

Parks and trails

Planning and Development

Planning & Development – 2018 Budget Highlights

Highlights 2018 budget has decreased by ($14,500) over the 2017 budget

Provide Services that Protect People, Property and the Environment in Promoting Healthy Lifestyles

Erosion Monitoring Survey

Parcel Fabric Project

Health Services - Active & Heritage 2018 Budget Highlights

Health Services - Active & Heritage 2018 Budget Highlights

Revenues consist of donations, investment income, and plot sales.

Expenses primarily consist of stone repair and maintenance.

Address Infrastructure, Investment and Renewal

Stone repair

Maintenance and care of cemeteries

Environmental

Grafton Communal Water System

Water Treatment, distribution, and transmission

Rates are based on the principal of conservation and cost recovery

Tax Rate Impact –Municipal ResidentialResidential Tax Rate

2017

.00528158 x $250,000=$1,320.39

2018

.00530711 x $250,000=$1,326.77

Increase for a $250,000 home will be an additional $6.38 per year

Municipal Revenues

Total Revenues approximately $9 Million

Revenues consist of Taxation, Fines and Penalties, Provincial Grants, Federal Grants, User Fees, Licences and Permits, and other revenue

Revenue Categories

Municipal Expenses

Total expenditures of approximately 9 million . This is made up of operating and capital expenditures. This does not includes $2.3 million for the new firehall, which will be offset through a debenture in 2018.

Expenditures consist of salaries and benefits, interest on long term debt, materials, contracted services, rents, financial expenses, and capital

Our largest operating expenditure is salaries and benefits due to the labour intensive nature of the services provided by the Township

Our OPP policing contract is our second highest operating expenditure

Operating Expenses by Functional Classification

Capital Expenses by Functional Classification

Operating & Capital Expenditures by Year 2009-2018

OPP Contract 2009-2018

External Transfer Payments 2009-2018

Long Term Debt

The Townships debt is at a manageable level and is well within our Annual Repayment Limit (ARL) as calculated by the Province

In 2012 the Township debentured out $600,000 for 10 years in order to pay for past infrastructure improvements

Annual interest rate is 2.8%

Debt Repayment Schedule

-

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Principal

Interest

Principal Balance

Reserves

Composed of obligatory reserves (development charges), reserves, and reserve funds

It is recommended that our contingency reserve equal 10% of our overall taxation revenue. Currently our contingency reserve is underfunded by approximately $700,000.

Approximately $1,100,038 will be transferred from reserves in the 2018 budget

The Township will transfer approximately $648,000 to reserves in 2018

Reserves 2008-2018

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Reserves 2008-2018

Asset Management Plan Highlights

An Asset Management Plan (AMP) was completed in 2014. The AMP identified an infrastructure deficit

The Township of Alnwick/Haldimand’s infrastructure deficit is determined to be approximately $ 4,400 per person

Based on the Asset Management Plan a 10 Year Capital Plan, broken down by asset class for the years 2013 to 2022, was completed. The Township uses this plan during the budget process

The AMP will be comprehensively updated to conform to recently passed regulations in 2018

Custodial Responsibility of Infrastructure 1955-2010

2019 and Future Budget Challenges

Very competitive process to get grant money is being offered from the Federal and Provincial Governments.

Infrastructure replacement and maintenance

Township needs to increase reserves, specifically our working fund contingency reserve

New government downloads and/or programs that the municipality will have to assume

Long term cost inflation factors

Firehall debt repayment for the new EMS/Firehall building for the next 30 years

Next Steps

Calculate Consolidated Tax Rates using the Municipal, County, and School Board rates

Draft the Tax Rate By-Law

Provide budget vs actual statements to all committees and departments on a monthly basis in an effort to manage expenses and stay on budget

Closing Remarks

Thank you to Council, committees, and the various departments for their help in preparing the 2018 budget.

This presentation will be available on our Municipal Website at www.alnwickhaldimand.ca

Questions?