The Corporation of the Township of Malahide

BUDGET COMMITTEE

February 9, 2015 – 7:00 p.m.

Springfield & Area Community Services Building 51221 Ron McNeil Line, Springfield.

(A) Call to Order (B) Disclosure of Pecuniary Interest (C) Approval of Previous Minutes RES (Pages 2 - 7) (D) Delegations (E) Presentation of Draft 2015 Budget

- Report No. 15-02 – Draft 2015 Budget - Update (Pages 8 – 9) - Council resolutions re Lyons Sidewalk (Pages 10 – 11) - 2015 CCCA Budget & Levy (Pages 12 – 18)

(F) Next Budget Committee Meeting (G) Open Question Period - See attached guidelines.

(H) Adjournment RES

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The Corporation of the Township of Malahide

Budget Committee Meeting

February 2, 2015 – 7:00 p.m. The Budget Committee met in the Council Chambers located in the Springfield & Area Community Service Building, at 51221 Ron McNeil Line, Springfield at 7:00 p.m. with the following present: Committee: Chair D. Mennill, Vice-Chair M. Wolfe, Members R. Cerna, C. Glinski, M. Moore, M. Wales, and M. Widner. Staff: Chief Administrative Officer/Clerk M. Casavecchia-Somers, Director of Finance/ Treasurer S. Dieleman, Director of Physical Services R. Johnson, Director of Fire and Emergency Services P. Groeneveld, and Director of Community and Corporate Services E. DiMeo. CALL TO ORDER: Mayor Mennill took the Chair and called the meeting to order at 7:00 p.m. DISCLOSURE OF PECUNIARY INTEREST and the General Nature thereof: No disclosures of pecuniary interests were declared. MINUTES: Moved by: Rick Cerna Seconded by: Mark Wales THAT the Minutes of the Regular Meeting of the Budget Committee held on January 26, 2015, be adopted as printed and circulated. Carried. DELEGATIONS: Presentation – J. Crane Jim Crane, resident of Malahide, appeared before the Council to discuss concerns regarding the 2015 Draft Budget. Mr. Crane advised that he had spoken to many residents during the past week regarding the proposed 2015 Budget. He indicated that the current 8.55% levy increase for residential properties and 12.55% increase for farmland properties is too high for most residents as the cost of living is only 2.3%. He suggested that the Committee needs to consider service cuts in order to achieve savings. Mr. Crane suggested that one of the significant issues is the cost to operated the East Elgin Community Complex. He presented a proposal authored by Michael Bennett to achieve savings of about $200,000. He asked that the proposal be distributed to Council and Management to review further.

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Mr. Crane expressed concern regarding the cost to provide fire services. He indicated that the volunteer firefighters do a great job, but that the Committee should consider eliminating one fire hall in order to achieve further savings. He also suggested that there are too many Township employees and that there should be more cross training so that when an employee leaves, they would not need to be replaced. Mr. Crane concluded by advising the Committee that the residents that he spoke to would be willing to accept bi-weekly garbage pick-up in the winter months in order to achieve cost savings. Moved by: M. Moore Seconded by: C. Glinski THAT the presentation received from Jim Crane, Resident of Malahide, with respect to suggestions to minimize the tax burden on residents be received. Carried. Presentation – M. van Ham Marleen van Ham, resident of Malahide, appeared before the Council to discuss concerns regarding the 2015 Draft Budget. Ms. van Ham expressed concerns regarding the increase of expenditures such as administration, fire and policing. She questioned the need for a building optimization study and a fire training officer. Ms. van Ham requested that the Council consider other alternatives to the Ontario Provincial Police such as partnering with Aylmer or St. Thomas. She would also like the Council to reconsider the budgets for the Concession Booth and the Community Centres. She concluded by indicating that the Council needs to look at the Township operations as a if they were a business person not a Councillor. She suggested that they can’t keep adjusting income (taxes) to match their expenses. In response to Ms. Van Ham’ comments, the Municipal Staff providing the following information:

- The proposed building optimization study includes a review all Township properties and establishes a long term 20 year plan for maintenance and replacement. Much of this work needs to be completed by a Professional Engineer and thus cannot be completed in-house.

- The full-time fire wages budget includes wages for 9 officers not just the one full-time chief.

- The Fire Training Officer is required in order to address the recommendations of the OFM review, particularly due to increased volume of inspections required for high risk occupancies.

- Policing costs, while increasing, are still less costly per household than Aylmer. - The current operation of the concession booth is the same one as former Lions

Hall. To date, there has been no direction from the Council to seek full cost recovery.

- The cost of operating the community centres is consistent with other similar municipal facilities. They are a community service and while they will not generate a profit, additional efficiencies are always being sought.

- The Township staff complement was reduced by one in 2014 when a staff member retired and was not replaced with another full-time person.

- Computer maintenance costs are primarily for annual licensing fees for very specific software needs.

Moved by: Mark Wales Seconded by: Rick Cerna

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THAT the presentation received from Marleen van Ham, Resident of Malahide, with respect to concerns regarding the 2015 budget be received. Carried. PRESENTATION OF DRAFT BUDGET:

- Video - “How Property Assessments affect Property Taxes”

The Council viewed a video link from the Niagara Region website entitled “How Property Assessments affect Property Taxes”.

- Draft 2015 Budget

The Director of Finance reviewed Report No. FIN-15-01 (originally distributed to the Committee at the January 26, 2015, Budget Meeting). The Committee was advised that currently the proposed levy increase represents a lower tier (municipal) tax levy increase of about 8.55%. The Committee was provided with a comparison of tax implications of various properties owned by individual Council Members, noting that all are impacted differently due to differing assessment changes.

The Committee provided further direction with respect to the following matters:

a) OCIF Grant

The Committee noted that the Province will provide $59,292 each year for three years. These funds must be used for core infrastructure in the fiscal year in which they are received. It is recommended to allocate these funds to the Pressey Line East Bridge Project and to assist with base repairs associated with the rehabilitation of a portion of Dorchester Road. Moved by: Rick Cerna Seconded by: Mark Wales THAT the Council be requested to authorize the use of the 2015 OCIF grant allocation to complete the Pressey Line East Bridge Project and to assist with base repairs associated with the rehabilitation of a portion of Dorchester Road. Carried.

b) New Part-time Fire Services Training Officer

The Committee noted that the establishment of a part-time Training Officer is recommended to undertake the training responsibilities of the Fire Services, which is currently performed by the Fire Chief, thus enabling the Fire Chief, as a certified Fire Prevention Officer/Fire Inspector, to focus more time on conducting fire safety inspections/assessments of vulnerable and high risk buildings and occupancies. This has been included in the draft budget for one-half year with the intent of including a full year in the 2016 Budget. Moved by: Chester Glinski Seconded by: Mike Wolfe THAT no action be taken at this time to establish a part-time Fire Services Training Officer. Carried.

c) Gravel Conversion Financing

The Committee noted that all of the road construction reserves and gas tax funding has been depleted in recent years. 2015 is a time to rebuild those reserves so that other projects may be completed in future years. However, with the extent of gravel

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conversions that have been completed in the past four years, the Staff have identified that gravel road maintenance has been reduced. The oldest grader (the Township owns three) is due to be replaced in 2015, however, it is believed that it is no longer needed and that two graders will be sufficient to complete the regular maintenance and snow removal work required in future years. As a result, it is recommended that the third grader not be replaced and that those Equipment Reserve funds be re-purposed to enable gravel conversions in 2015. Moved by: Max Moore Seconded by: Mark Widner THAT the Equipment Reserve funds that were previously allocated for the replacement of the third grader be repurposed to enable gravel conversion projects in 2015. Carried.

d) User Surcharge for Waste Management Services

The Committee noted that user surcharges for waste management services are currently $12.00 per household. The Committee noted that the current cost of waste management per household is about $135.00. If the Committee were to increase the current surcharge it would take more of the burden off the general tax levy and make it more of a user-pay system. The Director of Finance also advised that the budget allocation for collection of both garbage and recycling has had a fuel surcharge built in, and in recent years, it has not been necessary due to a change in the billing process. Thus, the Staff would recommend reducing the budget for garbage and recycling collection by $30,000. Moved by: Mark Wales Seconded by: Mike Wolfe THAT the waste collection and blue box collection contract budgets be reduced by $30,000. Carried. Following some discussion on the matter, the Committee took no action to increase the user surcharges for waste management services at this time.

e) Policing Reserve

The Committee was advised that with such a large increase in policing costs due to the new OPP billing model, it may wish to consider the option of utilizing the Policing Reserve to mitigate some of that increase to accommodate these costs over several years, allowing time for the tax levy to “catch up”. It is suggested that draws be made annually to provide a four-year period to accommodate the full impact of the increases as follows: $45,000 in 2015; $30,000 in 2016; and $15,000 in 2017. Moved by: Mark Widner Seconded by: Max Moore THAT the Policing Reserve be utilized to mitigate some of the OPP cost increases over the next three years in the amount of: $45,000 in 2015; $30,000 in 2016; and $15,000 in 2017. Carried.

f) Ice Management Reserve

The Committee noted that the 2014 Budget contemplated a draw of $13,000 to mitigate the loss of the provincial grant for ice management/dredging services. However, this draw was not required and could be used in 2015 instead.

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Moved by: Mark Wales Seconded by: Rick Cerna THAT $13,000 from the Ice Management Reserve be utilized in 2015 to mitigate the loss of the provincial grant for ice management/dredging services. Carried.

g) Building Reserve

The Committee was advised that the Building Optimization Study would review best uses and best locations for all Township buildings and services. It is anticipated that this review will provide direction on revenue sources, maximizing use, and optimal locations/operations that may result in cost savings over a period of time. The Building Reserve could be utilized to pay for this study which is estimated to be $20,000. Moved by: Max Moore Seconded by: Rick Cerna THAT no action be taken to complete a building optimization study in 2015. Carried.

- 2015 Capital Budget

The Committee reviewed the proposed 2015 Capital Budget. Moved by: Mike Wolfe Seconded by: Chester Glinski That the Council be requested to reconsider resolution No. 439-14, as passed on October 16, 2015, regarding the replacement of the following sections of sidewalk:

- that section of sidewalk located on the south side of Lyons Line from Imperial Road to the South Dorchester Community Hall; and

- that section of sidewalk located on the west side of Imperial Road, south of Lyons Line;

And that the matter of replacing sidewalks in Lyons be referred to the Budget Committee for further review and consideration. Carried. The Committee recessed at 9:19 p.m. and reconvened at 9:34 p.m. The Director of Finance advised that the impact of the budget changes that the Committee made earlier in the meeting, results in the following:

- a 6.32% levy increase if the Committee continues to complete the Lyons sidewalk replacement project in 2015 - a 5.75% levy increase if no sidewalk replacement is undertaken in 2015 - a 6.0% levy increase if approximately half of sidewalk replacements are completed in 2015.

The Committee asked the Municipal Staff to identify other potential areas to reduce the overall 2015 tax levy increase by a further 1% and to report back to the Committee at its next regular meeting on February 9, 2015. NEXT BUDGET COMMITTEE MEETING: Moved by: Mark Widner Seconded by: Mike Wolfe

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THAT the next regular meeting of the Budget Committee be scheduled to be held on February 9, 2015 at 7:00 p.m. Carried.

OPEN QUESTION PERIOD: The Committee received comments from the public concerning the Draft 2015 Budget, specifically expressing concern regarding unsustainable tax increases and suggesting that the Committee consider how it can look at saving money rather than justifying how to spend the money. ADJOURNMENT: Moved by: Mark Widner Seconded by: Chester Glinski THAT the Budget Committee adjourn its meeting at 9:57 p.m. Carried. __________________________________ Mayor – D. Mennill __________________________________ Clerk – M. Casavecchia-Somers

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Report No: FIN-15-02 Date: January 15, 2015

Attachment – None

Draft 2015 Budget - Update

Update During the most recent Budget Committee meeting held on February 2, 2015, the Council made a number of changes to the Draft Budget in an effort to reduce the overall tax levy. With those changes, the tax levy was reduced by $128,000, reducing the proposed levy increase to 6.32%. At that meeting, the Council also asked the Municipal Staff to identify other potential areas to reduce the overall levy by a further 1%. The following options have been identified that would ensure that the Council’s strategic priorities are not jeopardized, such as maintaining the overall integrity of municipal infrastructure: Options to be considered by Council:

1. Specialty Rescue Services If the Township were to reduce the level of core services that are provided by the Malahide Fire Service (MFS) by eliminating specialty rescues including rope rescue, confined space, ice rescue, and water rescue, the MFS training allocation could be reduced by $10,000 annually. However, this will result in MFS no longer responding to emergency incidents involving rescue techniques associated with these types of rescues. In order to continue to provide these services, the MFS would require this funding for firefighter certification and re-certification, and instructor re-certification. A reduction of any amount to the training allocation will result in the MFS immediately terminating this service and removing all associated equipment for the stations.

2. Postal Delivery of Bag Tag Packages At the implementation of the bag tag system, it was determined that the most convenient method for the residents to receive their bag tags was through direct mail. However, similar sized adjacent municipalities require residents to pick up their packages at the Municipal Office. The cost to the Township to provide postal delivery of the packages is approximately $7,000.

3. Grants to External Bodies A request was received from the Agricultural Society in 2014 for funding to purchase new bleachers for special events. At present, the Draft Budget includes the requested amount of $3,526.

4. MCP Concession Booth To increase the revenue of the concession booth, the Council could increase the rental/lease amount in order to move towards full cost recovery. The Township currently

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has costs of approximately $10,000.00 per year for the concession booth space at Malahide Community Place. We presently collect $1,500.00 annually in revenue from the lessee. It is proposed that the rental rate (revenue) should meet the cost of providing the space. We propose that the rent be increased by $4,500.00 per year for the next two years in order to be revenue neutral by 2017 or, as a second option, that the rent be increased by $2,900.00 per year for the next three years in order to be revenue neutral by 2018. It is believed that the significant use of the ball diamonds in the past year and the anticipated increase in use once the back diamond has been converted to clay (when funding becomes available) does support the final rental rate (in 2017 or 2018) at a reasonable level for any tenant of the space.

5. Planning Consultant

The billing methods of the planning consultants has significantly improved with the new contract. Further, the greater involvement of Staff in the planning processes has reduced the Township’s reliance on non-recoverable planning support. Actual costs are now much lower than in previous years and lower than currently projected. The Staff would support the removal of $20,000 from the planning consultant budget. This is a permanent reduction and should not impact future services.

6. Sidewalk Winter Maintenance Currently, the Township’s policy is to undertake winter maintenance on sidewalks on County roads within 1.6 km of a school. This is the walking distance as established by the school board. The Township could rescind its sidewalk winter maintenance policy and choose instead to pass a by-law requiring property owners to clear the sidewalks adjacent to their property. The cost to provide winter maintenance on sidewalks is approximately $10,500.00 (weather dependent).

7. Lyons Sidewalks As proposed by the Budget Committee, the cost of the Lyons sidewalks could be funded over two taxation years by borrowing a portion of the required funds from Township reserves and repaying the loan in the second year. It is possible to fund half of the cost of the new sidewalks ($16,000) from the tax levy in 2015 and draw the remainder from reserves with the intent to repay the loan from the 2016 tax levy.

Prepared by:

Approved by:

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- Lyons Sidewalks Reconsideration No. 15-77 Moved by: Mark Wales Seconded by: Mark Widner THAT the following resolution of the Malahide Township Council made at its October 16, 2014 meeting be reconsidered: No. 439-14 Moved by: Mark Widner Seconded by: Mark Wales

THAT the Municipal Staff be directed to proceed early in the Spring of 2015 with the replacement of the following sections of sidewalk: - that section of sidewalk located on the south side of Lyons Line

from Imperial Road to the South Dorchester Community Hall; and - that section of sidewalk located on the west side of Imperial Road,

south of Lyons Line;

AND THAT such sidewalk replacement be financed through the 2015 tax levy; it being noted that this decision to replace the sidewalk in advance of the 2015 Budget deliberations predisposes that the replacement of the sidewalk is a priority and eliminates the opportunity to evaluate the project alongside other similar projects during the annual budget deliberations as is typically done;

AND THAT the Municipal Staff be directed to proceed with hosting a community consultation session to solicit comments from the residents of the Lyons’ Area with respect to improving the sidewalk network in Lyons;

AND THAT the outcome of such community consultation and any recommended improvements to the sidewalk network in Lyons be referred for further consideration to the 2015 Budget deliberations.

Carried. No. 15-78 Moved by: Mark Wales Seconded by: Mike Wolfe

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THAT Resolution No. 439-14 insofar as it relates to the replacement, financing and community consultation of sidewalks in Lyons, be rescinded. Carried. No. 15-79 Moved by: Chester Glinski Seconded by: Mark Widner THAT the matter of the replacing sidewalks in Lyons be referred to 2015 Budget Deliberations. Carried.

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OPEN QUESTION PERIOD

The Open Question Period provides the public access to the Budget Committee in order to obtain information regarding the Township budget, the budgetary process, or other financial business of the Township. The following guidelines apply for the Open Question Period which is held at the end of regular Budget Committee meetings:

1. The Open Question Period will commence immediately prior to the adjournment of the regular Budget Committee meeting.

2. A maximum time of 10 minutes for questions from the public will be permitted; subject to curtailment at the discretion of the Chair if other business necessitates.

3. Questioners must respect the need for the Open Question Period to proceed in a timely fashion and must proceed according to these guidelines:

a. address the Chair when speaking; b. state their name and residential address, prior to presenting their question

to the Committee; c. speak clearly and concisely and only ask questions about items on the

agenda at that meeting; and d. agree to speak for not more than two minutes (unless invited by the

Committee to extend the discussion).

4. Questions must be truly questions and not statements or opinions by the questioner. Questioners are not permitted to make a speech, although a brief statement of no longer than one minute is permitted before the question is put.

5. Not more than 2 separate questions per questioner will be allowed.

6. A questioner will be ruled out of order if speaking to matters of current litigation or legal action against the Township. A questioner making political statements, using rude and/or obscene language, or making defamatory comments will also be ruled out of order.

7. The Chair will recognize the questioner and will direct questions to the Committee Member or Staff Member whom they feel is best able to reply. More than one Committee Member or Staff Member may reply if they feel that they have something to contribute.

8. The Committee reserves the right to defer responding to a question in order to obtain the information required to provide a complete and accurate response.

Approved by Council October 4, 2012