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Committee Presentation
June 2009
Council expressed desire for change for the capital priority setting process
City Manager performance objective to develop a revised budget process
Improvement is possible
Part One : The Proposed System
Part Two: 2010 Budget Challenges
• Budget is a communications exercise– Staff with council
– Public with the City
• Principles– Council operates at policy level
– Detail delegated to staff
– Greater degree of analysis and identification of material issues within the budget
• Aim: easier for Council & Public to review
• Aim: well informed decision making
• Direction– More meaningful direction setting process
– More information and policy discussion prior to setting council direction
• Final Budget– Smaller more focused budget document
• All significant changes clearly identified
• Summary level information
• Checks and balances demonstrated
• Staff analysis to highlight information for Council
“Budget issues”◦ Matters of policy, service level, staff or political
interest
◦ Obligation to disclose and provide supporting data
“Analysis of Change”◦ Audit trail outline showing by department
adjustments to the budget
Council Approval of budget process
Today
Budget Direction & Guidelines SettingOne Day meeting
September
Budget MeetingsTwo 1 day meetings
Capital; Current January / February
•Approval of general direction
•Approval on inclusion of
•Specific budget solutions
•Identification of Capital Challenges
•Identification of base budget issues over
$100,000
•Identification of new initiatives
•Approval of current budget “road map”
•Approval of capital budget “road map”
•Summary information & analysis -enhanced
•Analysis of budget change -new
•Review of budget “issues” -new
Consultation •Public Consultation – Fall
•Council Information Sessions - Winter
June MeetingReview of the 16 budget issues
Budget Challenges and possible solutions No specific target set without further information
High level “30,000 foot” view
”10,000 foot” view
September Budget direction setting meetingPreliminary Overview of 50-100 budget issues
Specific direction set
Setting the budget
January/February Budget setting meetingsReview of budget issues
Review of Capital – by Asset Category & Projects
Borrowing from Windsor/Toronto◦ Seek input on specific questions before council
◦ Factual background data and workbook
◦ Following directions meeting
Further details will be provided at the September meeting
Commencement of budget (September 18th)◦ New priority/direction setting process
◦ More meaningful direction setting
◦ More detailed direction to staff
Completion◦ More focused document(s) and council review
process
New Budget Look
•Budget Agenda
•Proposed Agenda Format
•Proposed Departmental Format
•Proposed Capital Budget Format
City of Burlington APPENDIX A
Proposed B&SP Amendments to the 2009 Current BudgetSTARTING POINT: Originally Proposed Net Tax Levy: 108,530,952$
Updated Net Tax Levy (running total): 108,530,952$
Proposed City Tax Levy: 6.55%
Proposed Overall Tax Rate: 3.24%
Ref
Book
III Division/ Councillor Councillor Councillor Councillor Mayor Councillor Mayor Finance Amount Impact on
Item # # RefItem Description
Dept. Craven D'Amelio Dennison Goldring Jackson Taylor Thoem Dept. Approved 1-Time Funding
PROPOSED CHANGES TO "UNIQUE BASE BUDGET" ITEMSBC-014 1 33 &
37
Restore funding of $40,000 for catch basin cleaning
costs
RPM $40,000
BC-015 2 33 &
38
Restore Winter Control Brochure at a cost of
$4,000
RPM $4,000
BC-048 3 34 &
45-46
Restore support to General Brock Park Committee Clerks ?
BC-096 4 34 &
48
Remove additional week of summer programming
for Special Needs camps, Summer Neighbourhood
Activity Program (SNAP) and Youth Centres
(generates revenue of $13, 272).
School year is expected to commence before
Labour Day.
P&R $13,272
$44,000 $13,272 $0 $0 $0 $0 $0 $0 -$ -$
PROPOSED CHANGES TO "CAPITAL IMPACT ON OPERATING" ITEMSBC-043 5 55 &
59
Per C&CS resolution CC-145-08 (Oct 8th, 2008)
provide a new contract position of GTA Fare
System (Presto) Project Manager responsible for
the planning, execution and implementation of the
Presto system scheduled for Burlington in February
2010. Contract period April 1, 2009 to June 30,
2010.
Adjust contract ending date from June 30, 2010
to December 30, 2010 to align with approved
capital budget.
T&T ?
BC-044 6 55 &
60
Per C&CS resolution CC-145-08 (Oct 8th, 2008)
provide a extension of existing 3-yr contract
position of Fare System Analyst for 13 additional
months to accommodate the complexity and delay
in the implementation of GTA Fare System project.
Adjust contract ending date from March 2010 to
February 2011 to align with approved capital
budget.
T&T ?
$0 $0 $0 $0 $0 $0 $0 $0 -$ -$ Total Net Changes to "Capital Impact on Operating" Items
Total Net Changes to "Unique Base Budget" Items
CM 8/09 Appendix A 2
Impact (Millions) Tax Rate ImpactPotential Solutions with Minimal Impact Low High Low High
8Cost Containment/general revenue objective $ (1.00) $ (1.50) -0.9% -1.4%In 2009 the City budget included a 5% target for all internal departments that had not undergone cost containment in 2008. A total of $2.9 million in additional savings/ addition revenues was achieved. Cost containment of this type suffers from diminishing returns. As a result $1.0-1.5 million is viewed as realistic.
9Wage and benefit adjustments $ - ($0.51) 0.0% -0.5%In 2009 wage adjustments were established reflecting the norm in Halton Region and surrounding municipalities. Should the recession deepen further reductions may be appropriate reflecting the 2010 norm.
10Fire treated as a separate issue $ (1.10) $ (1.10) -1.0% -1.0%The Region of Halton is considering a 0% target excluding Police. The City has similar issues with the cost structure of fire and the implications of the fire master plan. It is proposed City council consider establishing a target excluding Fire.
11Use Assessment Growth to help fund 2010 budget $ - $ (0.70) 0.0% -0.7%In 2009 a significant portion of assessment growth was used to reduce taxes. The same strategy should be considered in 2010. Normally growth could fund growth related program changes. If accepted, a portion of growth could be used to offset tax rates.
Recommended Potential Solutions $ (2.10) $ (3.81) -1.90% -3.60%
Issues identified by staff in
advance
Justification provided in
advance
Part-time Equivalent = 31.0 FTE
Secretary1 FTE
Staff86 FTE
Field Services Supervisor9 FTE
Groundskeeper1 FTE
Cemetery Coordinator1 FTE
Manager of Field Services2 FTE
Secretary
Operations1 FTE
Customer Service
Representative2 FTE
Maintenance Managemnt
Clerks2 FTE
Courier1 FTE
Materials Controller2 FTE
Sign Shop2 FTE
Supervisor of
Administration1 FTE
Mechanical Staff9 FTE
Supervisor of Vehicle
& Equipment Maintenance1 FTE
Coordinator of Vehicle
and Equipment Training1 FTE
Parts & Service
Coordinator1 FTE
Manager of Fleet1 FTE
City Forester1 FTE
Technician - Program
Development, Budgets &
Contracts2 FTE
Field Services Technician2 FTE
Manager of
Program Development,
Budgets & Contracts1 FTE
Director of Roads & Parks
Maintenance1 FTE
2009 CURRENT BUDGET
DEPARTMENT SUMMARY
2007
ACTUAL BUDGET YEAR-END
ACTUAL
BASE
BUDGET
% CHANGE
vs
2008 BUDGET
PROGRAM
CHANGES
TOTAL
BUDGET
% CHANGE
vs
2008 BUDGET
9,831,921 10,263,306 10,358,319 Human Resources 10,771,758 5.0 58,630 10,830,388 5.5
4,067,307 3,902,567 4,521,262 Operating/Minor Capital Equip. 3,859,234 -1.1 45,385 3,904,619 0.1
4,900,180 5,516,455 5,825,076 Purchased Services 5,462,017 -1.0 -10,964 5,451,053 -1.2
15,000 22,000 18,551 Corp. Expenditures/Provisions 24,200 10.0 0 24,200 10.0
2,646,154 2,737,068 2,992,450 Internal Charges & Settlements 2,840,277 3.8 45,600 2,885,877 5.4
21,460,563 22,441,396 23,715,658 TOTAL EXPENDITURES 22,957,486 2.3 138,651 23,096,137 2.9
-1,538,808 -1,462,321 -1,818,011 Controllable Revenues -1,688,212 15.5 0 -1,688,212 15.5
-3,333,491 -3,369,745 -3,708,942 General Revenues & Recoveries -3,394,390 0.7 -55,600 -3,449,990 2.4
-4,872,300 -4,832,066 -5,526,953 TOTAL REVENUES -5,082,602 5.2 -55,600 -5,138,202 6.3
16,588,263 17,609,330 18,188,706 NET OPERATING BUDGET 17,874,884 1.5 83,051 17,957,935 2.0
HUMAN RESOURCES REQUIREMENTS (shown in Full Time Equivalents - FTE's)
142.0 142.0 142.0 APPROVED FULL TIME COMPLEMENT 142.0 0.0 1.0 143.0 0.7
130.1 131.0 129.0 BUDGETED - REGULAR FULL TIME (RFT) 131.0 0.0 1.0 132.0 0.8
0.0 0.0 0.0 - OVERTIME 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 - CONTRACT 0.0 0.0 0.0 0.0 0.0
34.6 30.7 31.3 - PART TIME/TEMP 31.0 1.1 0.0 31.0 1.1
ROADS & PARKS MAINTENANCE
2008 2009 (APPROVED)
FINANCIAL RESOURCE CATEGORIES
CITY OF BURLINGTON ROADS & PARKS MAINTENANCE DEPARTMENT
2009 ANALYSIS OF CHANGE
(Rounded to Thousands)
Description Expenditure RevenueCumulative
Cost
Change over
2008
Cumulative
Change
Over 2008
Staff Impact
(FTE)
2008 Approved Budget $22,441 ($4,832) $17,609 162.0
Base Budget Adjustments
Increased costs for full and part-time employees due to economic adjustments and benefits $508 $18,118 2.89% 2.89%
Forecasted diesel fuel costs ($92) $18,026 -0.52% 2.37%
Other Operating/Minor Capital Equipment Adjustments $153 $18,179 0.87% 3.24%
Increased Winter Control Contract Costs $178 $18,357 1.01% 4.25%
Removal of one-time expenditure and associated funding to address 2008 Gypsy Moth infestation. ($92) $92 $18,357 0.00% 4.25%
Other Purchased Services Adjustments $55 $18,412 0.31% 4.56%
Corporate Expenditure/Provision Adjustments $2 $18,414 0.01% 4.57%
Internal Charges & Settlement Adjustments $103 $18,517 0.59% 5.16%
Other Controllable Revenue Adjustments ($226) $18,291 -1.28% 3.87%
Other General Revenue and Recovery Adjustments ($117) $18,175 -0.66% 3.21%
Mitigating Cost Reduction Measures / User Fees
Reduction in fuel usage through increased adherence to the City's anti-idling policy and through improving staff
transportation planning (BC-013)
($8) $18,167 -0.04% 3.17%
Reduction of catch basin cleaning contract costs by "dewatering" catch basin cleaning vacuum trucks into the
Region's sanitary system (BC-014).
($40) $18,127 -0.23% 2.94%
Elimination of the annual Winter Control Brochure delivered to every City household by alternatively enhancing
the information provided in the fall issue of City Talk (BC-015).
($4) $18,123 -0.02% 2.92%
Transfer of sidewalk replacement funding from the Current Budget to the Capital Budget to better align the
asset replacement activity with capital financing (BC-016).
($150) $17,973 -0.85% 2.07%
A 1.5% reduction in road salt usage by continual technological upgrades of spreading equipment and
techniques (BC-017).
($13) $17,960 -0.08% 1.99%
Energy savings and reduced bulb replacement costs due to accelerated completion of transition to LED signal
fixtures (BC-018).
($85) $17,875 -0.48% 1.51%
New Services/Programs (Recommended)
Additional Street Sweeper Operator to meet Council-approved service levels in Roadway Sweeping, and to
reduce contracted sweeping services during the Spring Clean-up and Leaf Collection programs (BC-050).
$88 ($46) $17,917 0.24% 1.75% 1.0
Other growth related impacts: additional signalized intersections, streetlights, and horticultural beds (BC-051,
BC-052, BC-053).
$41 $17,958 0.23% 1.98%
Recycling Pilot in Tansley Park - Strategic Action 5.4C Future Focus Seven Work Plan/Implementation Plan
(BC-077).
$10 ($10) $17,958 0.00% 1.98%
2009 Approved Budget $655 ($306) $17,958 0.00% 1.98% 163.0
Uncommitted Other Initiatives
EXAMPLE Reduction of Service ABC (BC-999) ($100)
Tried and tested◦ Well received by staffs and councils
Efficient use of resources◦ Detail delegated to staff
◦ Smaller, more concise budget document
◦ More focus on “budget issues” (service, policy, staffing or matters of political interest)
User Friendly for City Council and Public
Quote from: Albert Einstein
Definition of insanity
“Insanity: doing the same thing over and over again and expecting different results”
If we approach the 2010 budget in the same way as 2009 we should expect the same results.
Analysis of 2009 Current Budget
Draw conclusions ◦ 2010 possible outcomes
◦ Key cost drivers and assumptions
Broad Council Direction Requested ◦ Solutions to explore for September
Net Tax Levy
*- Areas not previously subject to full cost containment
2010 has similar challenges to 2009◦ Total dollar challenge $9.6 million vs. $11.4 million
Cost Containment ◦ 55% of budget participates
◦ Diminishing returns
◦ Revenues
2009 market adjustments/new rates
Slower Assessment Growth
GST / PST Harmonization (costs and fees charged)
Reliance on reserve funds not sustainable to offset tax increases
Capital impact on 2010 3.2 %◦ Operating Impacts from Capital Projects
Alton Community Centre / Library
Appleby Ice Expansion
Performing Arts Centre
◦ Unmet capital needs
Parks and Rec master plan > $30 million
Cycling Master plan $20 million
Facility assets – expect to see unmet needs
A 2010 change to capital◦ Has impact over 10 years
◦ Requirement to maintain base funding for Federal Funding Programs
Issues 1-7◦ Challenges as we see them
Issues 8-11◦ Recommended lower impact approaches
Issues 12-16◦ High impact alternatives
Starting point – 9% tax increase
Final Increase ( Not including significant impact
items)
City Portion 4-5% (still requires high effort & savings)
Total Blended Impact on tax bill 1.53% - 2.68%
Should Council wish to be below 1.53-2.68%◦ Provide direction with respect to Appendix A
City has competitive tax burdens (BMA Municipal Study 2008)
Questions
Consider process recommendation
Consider Appendix A items 1-16