Staff Proposed Municipal Budget Fiscal Year 2018 - Parry Sound...The Town’s Budget and Financial Control Policy provides a guideline for the tax increase in any given year. For 2017

Staff Proposed Municipal Budget

Fiscal Year 2018 Alternative Formats Available

2018 Municipal Budget (Staff Proposed) Page 1 of 136

Table of Contents Executive Summary ........................................................ 3

Determination of Tax Levy ........................................... 4

Items Considered by Staff and Removed .................... 8

New Operating Initiatives ........................................... 18

Summary Operating ................................................... 24

Summary Capital ....................................................... 26

Budget Process 2018 ................................................. 28

Welcome to Parry Sound .............................................. 31

About the Town of Parry Sound ................................. 31

Governance ............................................................... 31

Lifestyle ...................................................................... 31

Strategic Plan 2015 – 2018 ........................................... 33

Active Living ............................................................... 33

Growth and Development .......................................... 34

Organizational Excellence.......................................... 35

Our Community .......................................................... 35

West Parry Sound Area Cooperation ......................... 36

Financial Overview ........................................................ 37

Socio-Economic Indicators......................................... 37

Financial Indicators .................................................... 38

Taxes Raised ............................................................. 40

Maintaining Existing Service Levels ........................... 41

Service Partners ......................................................... 41

Key Financial Performance Information ......................... 43

Assessment Growth ................................................... 43

Sources of Revenue ................................................... 44

Expenditures .............................................................. 49

Organizational Chart and Staffing Resources ............... 51

Municipal Services ..................................................... 51

Staffing Resources 2017 vs 2018 .............................. 52

2018 Staffing and Operational Changes .................... 52

Departmental Budget – Chief Administrative Officer ..... 55

Departmental Overview .............................................. 55

Administration ............................................................ 55

Operating Budgets ..................................................... 55

Capital Budgets .......................................................... 62

Departmental Budget – Director of Finance and POA Court Services ............................................................... 63


Finance ...................................................................... 63

Capital Budget ............................................................ 64

Departmental Budget – Director of Emergency and Protective Services ........................................................ 65



Operating Budget ....................................................... 65

Capital Budget ........................................................... 69

Departmental Budget – Director of Public Works .......... 71

Departmental Overview ............................................. 71


Capital Budget ........................................................... 78

Departmental Budget – Director of Development and Leisure Services ............................................................ 81

Departmental Overview ............................................. 81


Capital Budgets .......................................................... 93

Non-Tax Supported Activities ........................................ 95

Water and Wastewater Services ................................ 95

Provincial Offences Act Court Services ...................... 99

Land Ambulance Service – District of Parry Sound .. 100

Asset Management and Long Term Planning ............. 103

Asset Management at the Town of Parry Sound ...... 103

Debt Management .................................................... 104

Reserves and Reserve Funds ..................................... 109

Reserves .................................................................. 109

Reserve Funds ......................................................... 123

Supplemental Information ............................................ 127

Financial Policies ..................................................... 127

Acronyms ................................................................. 130

Glossary of Terms .................................................... 132


Executive Summary The annual budget is one of the most important, and most complicated, documents produced by a municipality. The budget is not only the final costs of providing services in the previous year, but also forecasts how much it will cost to provide those services in the coming year, and whether those services will increase, decrease or remain constant.

Building on our work in the 2016 and 2017 budget document, residents, Council and staff will see a more transparent document that is not just “a bunch of numbers”. The document includes financial and operational information that is useful to the users of the budget. It is hoped that this additional information will provide Council with the high-level information that will allow for informed and open decision making. It is also hoped that the public will benefit from an easier to understand document that shows how their tax dollars are used to provide service throughout the Town.

Parry Sound, like many other municipalities, faces increasing financial pressures to do more with less money while keeping debt levels low.

In 2016, Council amended the Budget and Financial Control Policy which provides a guideline for the preparation of the budgets starting in 2017. The

presented budget comes in at the low end of the range identified by Council, at 1.7% plus 1.8% for capital levy.

Staff have also worked on a 10 year capital plan. This will be presented in a separate document. The document will include 10 year projections including reserve continuity; however road replacement is not projected as a road needs study will be completed in 2018 which will provide (along with identified underground infrastructure) a list of the priorities for road repairs.

In 2018, the budget is proposed to include several more contributions to reserves on an annual basis as a way to ensure predictability in tax rates and smooth needs over the long term. This has worked with the fleet and rolling equipment and it is hoped that eventually all assets will be on this type of funding method; but this takes time to transition and is a work in progress.

A debenture of $9.2mil is budgeted for in 2018 which will include necessary work for the Bobby Orr Community Centre (ice pad), as well as the Emily Street and Waubeek Street reconstruction projects, Isabella St realignment and Stockey Centre roof/siding replacement.


Determination of Tax Levy To determine the levy required for municipal tax purposes, staff have reconciled the PSAB operating statement as follows to come to the amount required to be raised from taxes. This year we have slightly changed the format, there is now a column separating operating, capital and the total. This provides greater transparency as to how tax dollars are split between operating and capital areas. For the purposes of this split interest costs are considered “operating” although they are related to a financing decision for capital items.

2018 Budget Item Operating Capital Total

Total Levy From Statement of Operations $ 10,075,362 $ - $ 10,075,362 Adjustments

Remove Amortization Expense (4,691,248) - (4,691,248)

Allocate capital revenue (for information) 893,016 (893,016) -

Adjust for (Gain) Loss on disposal of assets - - Adjusted Budget $ 6,277,130 $ (893,016) $ 5,384,114 Capital Grants and Donations Not Included in Operating

Candian Heritage Cultural Spaces Fund (Stockey Centre Roof) $ - $ (730,725) $ (730,725)

OCIF Application - Isabella Street (760,065) (760,065) Canadian Water and Wastewater Fund -

Waubeek (1,163,706) (1,163,706)

DFO funding - Town Dock plugs and lights (20,000) (20,000)



Community fundraising for splash pad - -

Partner with DBA for downtown Wi-Fi - - - - (2,674,496) (2,674,496)

Capital Budgets Total Cost (See Summary) $ - $ 17,823,303 $ 17,823,303

Transfers from Reserves (See Summary) $ (212,500) $ (4,182,395) $ (4,404,895) Transfers from Reserve Funds (See Summary) - (541,000) (548,691)

Transfers to Reserves (See Summary) 1,622,307 960,994 2,583,301 Transfers to Reserve Funds (See Summary) - 530,234 530,234 Interest Earned on Reserve Funds Added to Reserve Fund 34,825 34,825 $ 1,409,807 $ (3,197,342) $ (1,805,227) New Borrowing

External Debt - $ (9,241,842) $ (9,241,842) Internal Borrowing - Reserve Fund - -

$ - $ (9,241,842) $ (9,241,842)



Principal Payments on Long-Term Debt Smelter Wharf (Port) $ 31,157 $ 31,157 Water Filtration Plant 297,000 297,000 Gibson Street Project 57,500 57,500 McDougall Water Tower System 100,000 100,000 Riverdale Road Project 35,000 35,000 Wastewater Plant 125,000 125,000 Municipal Office 87,500 87,500 Wastewater Force Mains 12,500 12,500 BOCC Expansion 112,500 112,500 James, Gibson & Mary St 5,000 5,000 College Drive, Forest St, Hillcrest Storm

Sewer 106,667 106,667 Big Sound Marina, BOCC Roof and Public

Washrooms 28,603 28,603

LED Lighting - Repayment to Capital Asset Legacy Reserve Fund (See Reserve Fund) - - $ - $ 998,427 $ 998,427

Net Tax Levy Required $ 7,686,937 $ 2,815,034 $ 10,484,279

Taxes based on low end of range 10,484,279 Amount to remove (add) to reach goal at low end $ (0)


2018 Budget Item Operating Capital Total Taxes based on high end of range 10,555,928 Amount to remove (add) to reach goal at high end $ (71,649)

The proposed budget for 2018 represents the low end of the range. This represents an increase of 1.5% plus 1.8% for capital asset levy.

The high end of the range, 2.4% increase plus 1.8% capital levy would provide Council with an additional $71,649 in spending to be identified if it so desired.


Items Considered by Staff and Removed The Town’s Budget and Financial Control Policy provides a guideline for the tax increase in any given year. For 2017 this guideline was between a 1.7% and 2.4% increase, before the 1.8% annual increase for the capital asset levy. This brings the target to 3.5% to 4.2%, the proposed budget is 3.5% (the low end of the range). Senior staff met in November to prioritize capital projects and service enhancements. After reviewing actual

spending trends over the past 5-year period, several projects and service enhancements (including reductions in current levels) were removed from the proposed budget to the 3.5% threshold. Adding these projects or enhancements will require Council to either increase the tax levy above the guideline target, or possibly reduce core services to fund these initiatives. The items considered and cut by staff include:

Item Department Service Delivery

Budget

Capital Investment

Budget Ties to Strategic Plan

Reduction to pooled firefighter gear Emergency and Protective Services $ - $ 25,000 Our Community

Defer Big Sound Marina Dock A anchors (until divestiture assets are fully identified)

Development and Leisure Services - 16,000

Growth & Development

Defer Big Sound Marina Dock C Power Pedestals (until divestiture assets are fully identified)

Development and Leisure Services - 9,500


Reduction to interpretive sign at Waubuno Beach Development and Leisure Services - 5,000 Our Community

Defer splash pad (was budgeting for 50% funding and 50% legacy reserve fund)

Development and Leisure Services - 269,000 Active Living

Defer Hillcrest Cemetery wrought iron fencing Operations - 25,000 Our Community



Budget

Capital Investment


Defer St. Charles Crossing (will be putting 50% into reserve this year and 50% in 2018) Operations - 50,000 Our Community

Remove CN Station parking lot restoration Operations - 10,200 Our Community

Fire Station parking lot being paved via operations operating, reduces repairs available in other parts of Town

Emergency and Protective Services - 10,000 Our Community

Defer replacement of Stockey Centre sign Stockey Centre - 10,000 N/A

Reduce CAO telephone to reflect new plan Administration / IT 400 - N/A

Reduce Mayor telephone to reflect new plan Administration / IT 400 - N/A

Reduce CAO advertising allocation Administration / IT 500 - Our Community

Remove staff recognition - years of service per prior Council direction Administration / IT 500 -

Organizational Excellence

Reduce contracted services for IT third party based on first year experience Administration / IT 10,000 -


Eliminate corporate information systems training expense, redundant Administration / IT 1,000 -




Budget

Capital Investment


Remove planned records management system (will be funding through departmental budgets) Administration / IT 1,000 -


Eliminate municipal heritage committee expenses as no longer active Third Parties 800 -


Reduce transfer to Planning Board, anticipating reduced fees Third Parties 2,100 -

West Parry Sound Area Cooperation

Reduce increase in Library from $10,800 to $5,000 Third Parties 5,800 - Our Community

Reduce Dir of Finance phone to reflect new plan Finance 400 - N/A Reduce finance photocopies Finance 1,000 - N/A

Reduce finance advertising allocation Finance 400 - Our Community Eliminate interest paid on water deposits as no longer held Finance 500 - N/A Reduce fire administration phone to reflect new plan

Emergency and Protective Services 500 - N/A

Reduce fire administration advertising allocation Emergency and Protective Services 1,000 - N/A

Reduce fire administration conventions Emergency and Protective Services 300 -


Eliminate fire hydrants misc. contracts for service as redundant

Emergency and Protective Services 10,000 - Our Community



Budget

Capital Investment


Reduce fire administration gasoline for vehicles to reflect historical usage and change in cost


Reduce firehall administration utilities to reflect reduction in cost resulting from energy saving

Emergency and Protective Services 3,000 - N/A

Eliminate firehall administration paint repairs as will be included in general repairs


Reduce firehall administration miscellaneous rentals


Reduce bylaw fuel costs to reflect change in costs Emergency and Protective Services 800 - N/A

Reduce bylaw postage to reflect movement to social media


Reduce bylaw advertising to reflect expanded use of social media


Eliminate crossing guards advertising Emergency and Protective Services 500 - Our Community

Reduce PW Operations GPS phone line to reflect change in costs Operations 1,300 - N/A Reduce PW Operations uniforms Operations 500 - N/A



Budget

Capital Investment


Eliminate PW Operations mileage as town own vehicle used for business purposes Operations 300 -


Eliminate PW Operations car rentals as town own vehicle used for business purposes Operations 500 -


Reduce Director of Public Works telephone to reflect change in plan Operations 400 - N/A Reduce PW Operations meals Operations 100 - N/A

Reduce PW Operations advertising Operations 300 - Our Community

Defer roads needs study (asset condition report, traffic study, etc.) to 2018 Operations 50,000 - Our Community Reduce PW Admin office supplies Operations 500 - N/A Reduce PW Admin phone to reflect reduction in plan Operations 400 - N/A Reduce PW Admin permits to reflect change in required permits Operations 1,000 - N/A

Reduce PW Small Tools miscellaneous materials Operations 500 - N/A Reduce PW Small Tools (gasoline) Operations 400 - N/A

Defer increase in service level for PW Sidewalk Repairs (miscellaneous contracts for service) Operations 10,000 - Our Community



Budget

Capital Investment


Defer increase in service level for PW Asphalt Repairs (miscellaneous contracts for service) Operations 5,000 - Our Community

Defer increase in service level for PW curb and gutter (miscellaneous contracts for service) Operations 2,000 - Our Community Reduce PW Culvert Maintenance (miscellaneous materials) Operations 1,000 - Our Community

Defer increase in service level for Guide Rails (miscellaneous materials) Operations 10,000 - Our Community

Reduce PW Street Lights (electricity) for LED implementation Operations 10,000 - Our Community

Defer increase in service level for Storm Sewer (miscellaneous materials Operations 4,000 - Our Community

Reduce PW Catch Basins (miscellaneous materials) Operations 5,000 - Our Community

Reduce PW Cemetery Admin (staff training) Operations 400 - Organizational

Excellence

Reduce PW Cemetery Admin (advertising) Operations 100 - Our Community



Budget

Capital Investment


Defer increase in service for PW Tree Replacement (miscellaneous materials) Operations 5,000 - Our Community

Reduce PW MacFarlane Transfer Station (general construction contracts) Operations 2,000 - N/A Eliminate PW MacFarlane Transfer Station (charitable waste) Operations 500 - Our Community Reduce PW MacFarlane Transfer Station (miscellaneous materials) Operations 2,500 - N/A Reduce PW Waste Management (repairs and maintenance Operations 2,000 -


Eliminate increase in PW HHW (staff training) Operations 300 - Organizational

Excellence Reduce Non-Specific Parks (miscellaneous materials) Parks and Recreation 3,000 - N/A

Reduce Non-Specific Parks (paint and supplies) Parks and Recreation 1,000 - N/A

Reduce Non-Specific Parks (miscellaneous equipment rentals) Parks and Recreation 1,000 - N/A Reduce Non-Specific Parks (repairs and maintenance) Parks and Recreation 5,000 - Our Community

Reduce Non-Specific Parks (membership) Parks and Recreation 200 - Organizational

Excellence

Reduce Waubuno Park (utilities) for LED impact Parks and Recreation 2,500 - Organizational

Excellence



Budget

Capital Investment


Eliminate Waubuno Park (paint and supplies) Parks and Recreation 500 - N/A

Reduce Kinsmen Park (utilities) for LED impact Parks and Recreation 3,000 - Organizational

Excellence

Reduce Kinsmen Park (water system) Parks and Recreation 1,500 - N/A

Reduce Kinsmen Park (repairs and maintenance Parks and Recreation 5,000 - Our Community

Reduce Kinsmen Park (minor equipment) Parks and Recreation 500 - Our Community

Reduce Skateboard Park (miscellaneous materials) Parks and Recreation 1,000 - Our Community

Eliminate Skateboard Park (advertising) Parks and Recreation 500 - N/A Reduce Santa Clause Parade (postage and photocopies) Parks and Recreation 100 - N/A

Reduce Waterfront Dock (miscellaneous materials) Operations 1,500 - Growth &

Development Reduce BOCC Admin (WSIB) Parks and Recreation 1,000 - N/A

Reduce BOCC Admin (engineering) Parks and Recreation 1,500 - Our Community

Reduce BOCC Building (utilities) for LED impact Parks and Recreation 5,000 - Organizational

Excellence

Reduce BOCC Building (water) for reduced usage Parks and Recreation 1,000 - Organizational

Excellence



Budget

Capital Investment


Reduce BOCC Building (miscellaneous contracts for service) Parks and Recreation 7,000 - Our Community Reduce BOCC Equipment (repairs and maintenance) Parks and Recreation 5,000 - Our Community

Reduce BOCC Equipment (miscellaneous materials) Parks and Recreation 500 - Our Community Reduce BOCC Hall (miscellaneous contracts for service Parks and Recreation 500 - Our Community

Eliminate BOCC Hall (paint and supplies) Parks and Recreation 750 - N/A Reduce municipal contribution to the Charles W. Stockey Centre Stockey Centre 25,000 - Our Community Reduce Building Inspection (health and safety related)

Development and Leisure Services 500 - N/A

Reduce Building Inspection (staff training) Development and Leisure Services 1,000 -


Reduce Building Inspection (miscellaneous materials)


Reduce Planning General (conferences) Development and Leisure Services 500 -


Reduce Planning General (staff training) Development and Leisure Services 1,000 -


Reduce Planning General (minor furniture and equipment)


Reduce Planning General (miscellaneous contracts) Development and Leisure Services 1,000 - N/A



Budget

Capital Investment


Reduce Committee of Adjustments (conferences) Development and Leisure Services 500 -


Reduce contract Economic Development Officer to 75% for first year to reflect timing of implementation

Development and Leisure Services 20,000 -


Reduce Economic Development (photo library) Development and Leisure Services 700 -


Reduce Tourism Marketing (defer regional recommendation)

Development and Leisure Services 9,200 -


Defer increase in Trails Master Plan (miscellaneous materials)

Development and Leisure Services 3,000 - Active Living

Reduce Communications (advertising) Development and Leisure Services 2,000 - Our Community

Reduce Finance (staff training) Finance 1,710 - Organizational

Excellence Reduce Finance (photocopies) Finance 3,000 - N/A

Reduce Administration (stationary) Administration / IT 1,000 - N/A

Reduce Administration (memberships) Administration / IT 600 - N/A Total $ 281,060 $ 429,700

The above also includes reductions to budgets for core services which may not be required due to efficiencies

that were found or changes in the delivery of those services.


New Operating Initiatives To improve transparency, this year the Service Delivery Budgets (Operating Budgets) show a baseline budget (the same level of service as 2017), non-controllable changes (changes to provide the same level of service, such as wage increases or inflation), service level changes (an increase or decrease in the service provided) and non-recurring amounts (an item that is only applicable for 2018).

This more clearly identifies what will be recurring costs to the Town and what are one-time expenditures. The 2018 Service Delivery Budgets include the following new services and enhancements to prior year service:

Tax Supported New Initiatives The following chart outlines the new initiatives or enhancements to activities that are supported by the tax-levy.

New Initiative for 2018 Department Type of Enhancement Amount

Relates to Strategic Plan

Increased funding from Province for OMPF Administration / IT Service Increase $ (176,200) Our Community Increased rental of municipal property to reflect new agreements Administration / IT Service Increase (19,000) Our Community Increased investment income to recognize more active investing Administration / IT Service Increase (24,000) Our Community

Addition of corporate communications officer Administration / IT Service Increase 85,800 Our Community

Consulting fees for CAO and Treasurer recruitment (funded from reserves) Administration / IT One-time 50,000 Our Community

Elections expenses for 2018 election Administration / IT One-time 18,450 N/A

License purchase for software to create financial statements and improve audit process Administration / IT Service Increase 1,700





Service agreement for mail machine purchased in 2017 Administration / IT Service Increase 1,100 N/A

Creation of shared GIS technician or shared services Administration / IT Service Increase 40,000 Organizational Excellence

Provide annual funding for Council to provide grants outside MAP Council Service Increase 9,000 Our Community Design for new coat of arms for the Town of Parry Sound Council One-time 5,000 Our Community Increased revenue for FONOM Conference (offsets expense

Development and Leisure Services One-time (124,775) Our Community

Increased revenues for building department Development and Leisure Services Service Increase (2,500) N/A

Funding for NOHFC Intern - Tourism Development and Leisure Services One-time (31,500)


Funding for surveys on two properties Development and Leisure Services One-time 15,000


Repairs to highway entrance signs Development and Leisure Services One-time 1,000


Increase funding for façade improvement program Development and Leisure Services Service Increase 55,000


Increase contract for EDO Development and Leisure Services Service Increase 4,500


Costs for hosting FONOM Conference (offset by revenue)

Development and Leisure Services One-time 124,775





Intern for tourism marketing (funded by NOHFC) Development and Leisure Services One-time 40,000


Increased advertising for 2018 for cruises Development and Leisure Services One-time 1,500


Increased waterfront advisory committee misc materials and signage expense

Development and Leisure Services One-time 7,000


Feasibility study for a Parry Sound Innovation Park Development and Leisure Services One-time 60,000


Implementation of full time Economic Development Officer (9/12 of year)

Development and Leisure Services Service Increase 76,600


Increased repairs for Big Sound Marina Development and Leisure Services One-time 19,000


Increased repairs for Town Dock Development and Leisure Services One-time 10,000


Adjustment to OPP billing for 2015 and 2016 years Emergency and Protective Services One-time 76,000 N/A

Purchase of Hazmat equipment for mutual aid Emergency and Protective Services One-time 10,000


Road Needs study (funded by OCIF funding) Operations One-time 50,000 Growth & Development

Increased funding for summer students to reflect longer time served Operations Service Increase 34,000 Our Community

Increased gravel surface maintenance due to increased washouts from storms Operations Service Increase 5,000 Our Community




Legislated bridge needs study (funded by OCIF) Operations One-time 65,000 Our Community Engineering for railway crossings to review whistle cessation Operations Service Increase 20,000 N/A

Additional staff at waste transfer site, will allow for HHW year round also improves safety Operations Service Increase 77,400 Our Community Additional revenue from municipal partners for operation of HHW year round Operations Service Increase (22,200)


Retrofit lighting at Operations Yard building Operations One-time 4,000 Our Community Annualize cost of Community Recreation Programmer (net increase) Parks and Recreation Service Increase 36,100 Active Living Provide funding for intern at HUB for community programming (5% of costs) Parks and Recreation One-time 2,000 Active Living Increase costs for summer students to reflect actual as well as extend time frames to beginning of May and Thanksgivinging Parks and Recreation Service Increase 40,000 Our Community

Replace wood benches with IPE Parks and Recreation One-time 5,000 Our Community

Repairs and maintenance on Fitness Trail at CP Trestle over river Parks and Recreation One-time 5,000 Active Living

Painting of beach house at Waubuno Park Parks and Recreation One-time 3,300 Our Community

Replace fountain pump at Market Square Park Parks and Recreation One-time 5,000 Our Community




Repair warning track at Kinsmen Park diamonds Parks and Recreation One-time 11,000 Active Living

Replace buoy line for swimming enclosure area at Waubuno Beach Parks and Recreation One-time 5,000 Active Living

Replace linen stock for rentals Parks and Recreation One-time 1,000 Our Community

Interest cost for newly issued debt on BSM Dock B replacement Parks and Recreation Service Increase 3,805 Our Community Purchase of self-watering flower baskets and more hardware for banners on light poles Parks and Recreation One-time 14,500 Our Community

New interest on debt for BOCC roof replacement Parks and Recreation Service Increase 2,942 Our Community

New Initiatives - Tax-supported $ 701,297


Non-Tax Supported New Initiatives The Town operates several services which are supported other than by the tax levy. The following chart outlines the new services and one-time expenditures for non-tax supported activities.



Staffing reorganization (Town cost is 16% or $3,840) Provincial Offences Service Increase 24,000 Our Community

Promotional items for hosting MCMA conference (Town cost is $160)

Provincial Offences One-time 1,000


Infiltration and inflow study for storm/sanitary system Wastewater One-time 50,000 Our Community

Provide funding for repairs of bulk water station Water Service Increase 1,000 Our Community

Membrane take coating review and plant efficiency review Water One-time 57,000 Our Community Total Non-tax Supported $ 133,000

These items will be further discussed in the appropriate sections of this budget document, including the justification for their inclusion.


Summary Operating The following is the summary of the 2018 Service Delivery Budget (Operating Budget). Please note that the figures below are PSAB compliant which includes amortization expense.

2017 2018

2016 Actual Total Budget Baseline Budget

Non-Controllable

Changes

Service Level

Changes

Non-Recurring Amounts

Total Budget

% Budget Change

Revenues Council

Administration (13,154,711)

(2,551,108)

(2,551,108)

(127,050)

(201,450)

-

(2,879,608) 12.8%

Finance (147,667)

(130,000)

(130,000)

(6,500)

-

-

(136,500) 5.8%

POA Court Services (1,261,744)

(1,474,900)

(1,474,900)

113,900

3,900

-

(1,357,100) -22.7%

Education (2,326,274)

-

-

-

-

-

- 0.0%

Emergency and Protective Services

(92,576)

(232,116)

(227,116)

500

15,000

-

(211,616) -12.5%

Land Ambulance (8,317,725)

(8,491,449)

(8,491,449)

(118,500)

-

-

(8,609,949) 1.4%

Public Works (2,564,986)

(912,103)

(912,103)

(149,413)

-

-

(1,061,516) 19.8%

Wastewater (2,866,140)

(3,018,600)

(3,018,600)

-

-

-

(3,018,600) 0.0%

Water (2,488,552)

(2,476,100)

(2,476,100)

-

-

-

(2,476,100) 0.0%

Parks and Recreation (Leisure)

(50,797)

(73,760)

(73,760)

(3,900)

-

-

(77,660) 4.6%

Bobby Orr Community Centre

(176,176)

(186,600)

(186,600)

11,700

-

-

(174,900) 0.0%

C.W. Stockey Centre (1,058,124)

(940,705)

(940,705)

-

(17,499)

-

(958,204) 1.9%

Development Services (309,287)

(184,500)

(97,000)

-

(2,500)

(156,275)

(255,775) 86.9%

Total Revenues (34,814,760)

(20,671,940)

(20,579,440)

(279,263)

(202,549)

(156,275)

(21,217,527) 2.8%


Expenses

Council 205,981

236,600

225,100

400

7,900

5,000

238,400 0.7%

Administration 1,149,558

1,197,654

1,197,654

62,366

114,500

68,450

1,442,970 21.5%

Third Party Funding 886,652

865,936

865,936

26,014

-

-

891,950 0.0%

Finance 1,306,153

670,805

670,805

11,700

-

-

682,505 1.8%

POA Court Services 1,164,851

1,352,600

1,352,600

(99,500)

(1,500)

1,000

1,252,600 -7.4%

Education 2,384,564

-

-

-

-

-

- 0.0%

Emergency and Protective Services

3,089,671

3,005,263

3,003,263

116,972

-

86,000

3,206,235 7.0%

Land Ambulance 8,502,072

8,729,050

8,729,050

56,400

(4,000)

-

8,781,450 -1.0%

Public Works 5,827,892

5,414,604

5,340,104

9,211

114,200

119,000

5,582,515 3.1%

Wastewater 2,757,335

2,729,939

2,629,939

(9,771)

19,051

50,000

2,689,219 -1.5%

Water 1,915,455

2,088,020

2,088,020

(16,594)

1,000

57,000

2,129,426 2.0%

Parks and Recreation (Leisure)

786,917

882,394

869,394

3,000

76,804

70,800

1,029,998 17.9%


756,326

700,036

700,036

13,400

2,942

-

716,378 0.0%

C.W. Stockey Centre 1,562,474

1,468,205

1,468,205

26,799

(32,000)

18,900

1,481,904 0.9%

Development Services 749,853

968,015

829,625

7,239

84,200

246,275

1,167,339 26.6%

Total Expenses 33,045,756

30,309,121

29,969,731

207,636

383,096

722,425

31,292,889 3.4%

Total Levy (1,769,004)

9,637,181

9,390,291

(71,627)

180,547

566,150

10,075,362 4.6%


Summary Capital The following is the summary of the 2018 Capital Investment Budget.

Tax Supported Capital Summary

Cost Current Year

Taxes Debenture Grants Recoveries Other Reserves Reserve Fund

Administration Municipal Building $ 57,500 $ 7,500 $ - $ - $ - $ - $ 50,000 $ - Information

Technology 83,100 38,000 - - - - 45,100 - Finance and POA Court Services

Finance 2,000 2,000 - - - - - - Emergency and Protective Services

Fire Services 352,591 - - - - - 344,900 7,691 By-law

Enforcement 37,900 - - - - - 37,900 - Development and Leisure Services

Development 90,200 50,000 - 20,000 - - 20,200 - Parks and

Recreation 1,192,400 21,000 1,126,400 - - - 45,000 - Stockey Centre 1,481,050 5,000 680,325 730,725 - - 65,000 -

Public Works Operations 5,145,451 209,363 2,585,307 1,603,081 - - 747,700 -

Total Tax Supported Capital $ 8,442,192 $ 332,863 $ 4,392,032 $ 2,353,806 $ - $ - $ 1,355,800 $ 7,691


Non-Tax Supported Capital Summary

Non-Tax Supported capital relates to the Land Ambulance Service, water and wastewater systems. These functions are not directly tax supported from the Town’s tax levy.

Cost Current Year

Taxes Debenture Grants Recoveries Other Reserves Reserve Fund Emergency and Protective Services

Land Ambulance $ 531,000 $ - $ - $ - $ - $ - $ - $ 531,000 Public Works

Wastewater Services 4,622,698 - 2,418,405 637,490 - - 1,566,803 -

Water Services 4,227,413 - 2,431,405 526,216 - - 1,269,792 - Total Non-tax Supported Capital $ 9,381,111 $ - $ 4,849,810 $ 1,163,706 $ - $ - $ 2,836,595 $ 531,000


Budget Process 2018

Council Priority Setting The 2018 Budget Process started in May 2017 with a Council Priority Setting Meeting held at the Municipal Office. The objectives of this meeting were to set strategic priorities for the upcoming year and remaining term of Council.

Council voted on their priorities as follows:

1. Great North Road 2. Parry Sound Road Extension 3. Innovation Park 4. Tourism 5. Private land development

In 2016, the capacity of the water and wastewater plants as well as the Downtown and a potential aquatic centre were also prioritized by Council.

Where applicable these priorities have been included in the capital and operating budgets for the 2018 year, as well as the 10-year capital plan for 2018 to 2027.

Items in the budget which relate to these priorities include:

• Parry Sound Innovation Park feasibility study • Expansion of Façade Program

•Council Priority Setting Meeting - May 30, 2017•Draft Templates - August 11,2017•Online Public Consultation - September 20 to

December 8, 2017•Finance compiles budget - November 2017

Planning

•Management review of draft budget - November 2 to 11, 2017

•Budget package to Council - December 5, 2017•Budget overview - December 12, 2017•Budget deliberations - January 9, 2018•Budget deliberations - January 23, 2018

Review

•By-law to authorize temporary borrowing -January 16, 2018

•By-law to set 2018 tax ratios - January 16, 2018•By-law to set 2018 tax policies - January 16, 2018•By-law to establish budget - February 20, 2018•By-law to strike tax rates - April 2018

Approval


Staff Review Senior leadership met on November 10, 14 and 30th to review the budget. These meetings included a review of the operating budget, the capital budget, and the new services list.

Citizen Engagement The Town also implemented a Citizen Budget Tool at 2018 Parry Sound Citizen Budget Survey which allowed taxpayers to provide feedback on the level of service that they want to see and provide feedback to the Town on the budget.

In 2017 the survey had 49 responses, which for the first year of this process is a positive result. The 2018 survey had approximately 40 responses to the end of November despite a more active social media campaign by the Town to promote the tool.

http://www.parrysound.citizenbudget.com/


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Welcome to Parry Sound

About the Town of Parry Sound The Town of Parry Sound is the world-renowned jewel of the 30,000 Islands on Georgian Bay.

Located on Highway 400 approximately 2 hours north of Toronto and 2 hours south of Sudbury, Parry Sound hugs the shores of the world’s largest freshwater archipelago, known as the 30,000 Islands. In 2004, UNESCO designated the area as a World Biosphere Reserve, the Georgian Bay Biosphere Reserve.

Parry Sound is rich in arts, culture and heritage. The Charles W. Stockey Centre for the Performing Arts and the Bobby Orr Hall of Fame are home to the international summer music festival, the Festival of the Sound. The Hall of Fame pays tribute to Parry Sound hockey hero, Bobby Orr.

The 6km Rotary and the Algonquin Regiment Fitness Trail is a waterfront trail linking to the North Shore Rugged Trail. Stop along the way for a quick swim in sparkling, clean waters or enjoy a picnic at Waubuno Beach or catch a breath-taking sunset over the Bay.

Governance Parry Sound is made up of the Mayor and six councillors, elected at large, who represent the residents of Parry

Sound. The Council for the Town of Parry Sound from 2014 to 2018 are:

From Left to Right: Doug McCann, Paul Borneman, Brad Horne, Mayor Jamie McGarvey, Jim Marshall, Bonnie Keith, Keith Saulnier

Lifestyle The Town of Parry Sound offers a mix of outdoor living and recreation within a small urban environment, half way between the City of Toronto and the City of Sudbury.

• Shopping – From our urban centre in the south end of town, our beautiful downtown near the water, to the Town’s north end Parry Sound offers a great mix of shopping opportunities.

• Schools – The Town has education opportunities from elementary to post-secondary levels. The Town is home to the new Parry Sound Public School, Parry Sound High School, St. Peter the Apostle Catholic School and Canadore College.


• Healthcare – The West Parry Sound Health Centre is a 90-bed acute care hospital located in Parry Sound. The WPSHC includes Lakeland Long Term Care, six nursing stations in the West Parry Sound area, manages the district land ambulance service and provides a full range of in-patient and out-patient programs. A new medical building opened in 2016 which combined two former medical offices and a pharmacy into one location.

• Arts and Lifestyle – Parry Sound is home to the Charles W. Stockey Centre for the Performing

Arts. The Stockey Centre, ideally located on the water with a large waterside patio, is home to the Festival of the Sound and Bands on the Bay each summer.

• Recreation - The Town maintains an indoor ice rink (Bobby Orr Community Centre), an outdoor ice rink, four sports fields, 6km of trails, and 13 parks. The Town runs swimming lessons at Waubuno Beach as well as additional programming out of the Bobby Orr Community Centre.


Strategic Plan 2015 – 2018 The Council for the Town of Parry Sound approved its Strategic Plan for 2015 to 2018. The process for creation of the Strategic Plan included public open houses, public workshops, staff workshops and the implementation of an Ad-Hoc Committee including members of Council and Staff to draft the plan.

The Strategic Plan consists of five strategic priorities as outlined below.

Active Living Leveraging the Georgian Bay Biosphere Reserve and our natural environment, the Town will be a safe and affordable community and destination for four-season active living.

Priorities • We will actively work with community groups to

assist in bringing events and competitions that will promote the culture and environmental features of the area to Town.

• We will partner with area municipalities and area groups with the goal of the creation of an Aquatic/Recreation Centre being established for the benefit of area residents.

• We will increase the level of recreational programs through direct and indirect delivery methods to improve access to recreational opportunities for all members of the community.

• We will expand links in the community for active transportation opportunities through the implementation of the Trails Master Plan

• We will leverage our existing recreation infrastructure to maximize the number of opportunities available for residents to utilize facilities for activities.

• We will develop a vision and plan to promote a healthy lifestyle for all demographics through increased promotion of activities that are active.

How the Proposed 2018 Budget Meets This Priority • Annualized cost for Community Recreation

Programmer • Partner with the HUB for a Community

Programming intern to provide local programming at the HUB

• Replace buoy lines at Waubuno Beach for swimming area

• Repair warning track at Kinsmen Park ball diamonds

• Repairs to pedestrian bridges on Fitness Trail


Growth and Development Through collaboration with area and senior government partners, the Town will be development ready and will strengthen and diversify its economy to provide sustainable growth and quality employment.

Priorities • Redevelopment of the harbour, relocation of the

MNR/OPP, private sector development and linking the downtown will shape the Town’s waterfront into the future and establish it as the people gathering place and economic hub it is envisioned to be.

• Attracting the education and technology-based economy will lead to a diversified economy.

• Promoting and supporting fibre to each residence and business will strengthen our community’s access to information and create opportunities for business attraction and job creation.

• Tourism product development, marketing and promotion, clarifying the roles and responsibilities of the various tourism-related agencies and creating partnerships with Provincial organizations and tourism operators will position the Town to remain competitive within a very competitive industry.

• In collaboration with other economic development-related agencies and stakeholders, identify specific gaps in the current business inventory and implement the Regional Marketing Plan to attract

growth and development to the existing development areas (Parry Sound Municipal Airport, Parry Sound Industrial Park, North Tudhope St).

• Supporting the implementation of the Downtown Consumer & Market Study will enhance the downtown experience by creating opportunities for enhanced shopping and potential attracting new housing opportunities

• Through the Zoning By-law update, identify areas suitable for intensification and support the efforts of local partners such as DSSAB to address housing needs.

• Work with community partners to identify events that could be hosted in the Town throughout the year.

How the Proposed 2018 Budget Meets This Priority • Implementation of a Tourism Intern • Increased funding to the Façade Program. • Creation of a full time Economic Development

Officer for the Town. • Funding for surveys on two properties for future

development • Repairs to highway signage promoting the Town • Hosting the Federation of Northern Ontario

Municipalities’ Annual Conference • Increased waterfront signage • Feasibility study for a Parry Sound Innovation Park • Repairs to Big Sound Marina and the Town Dock


Organizational Excellence To enhance internal cohesiveness and employee pride in the organization and to ensure continued high levels of customer service, the Town will demonstrate integrity in all relationships and activities and will foster idea generation, information sharing and understanding. The Town will ensure consistent investment and advancement in and support for our employees. The best only get better.

Priorities • We will continue to share and exchange

information and knowledge with our staff and our community on a timely basis and look for ways to improve how that is done.

• A healthy workplace is a happy workplace. We will act with integrity and treat each other with respect. We will walk the talk and hold each other accountable when we don’t

• We will ensure our staff are well trained and developed to help ensure they can perform to high standards and feel personally fulfilled.

• We don’t achieve much on our own; we work together, as a team. All our staff will know what’s important and will be given what’s needed to meet corporate objectives.

• Our purpose, as Town employees is to provide a range of services to the community and its residents. We will provide those services with excellence in mind because it is our community.

How the Proposed 2018 Budget Meets This Priority • Software purchase to allow staff to prepare

financial statements in house, more cost efficient and timely than having auditor prepare

• Creation of a shared resource for GIS data and input

Our Community We will build pride and a better, inclusive community by engaging our community and our residents in the development and enhancement of our Town.

Priorities • Initiatives such as signage, tree and flower

plantings, community gardens and the reintroduction of the Façade Improvement Program all enhance our Town. Efforts to beautify our Town will be strengthened when we work with partners such as the Downtown Business Association and neighbourhood groups. Infrastructure upgrades and long term financial strength and stability are strategies that also help build a strong Parry Sound community.

• Community engagement is key to creating vibrant neighbourhoods and community pride. Inclusive communications will ensure residents and businesses are made aware of Town business and opportunities that could lead to participation in projects that develop volunteerism and result in beautification.


How the Proposed 2018 Budget Meets This Priority • Provide for an annual funding amount for Council

to provide grants outside of the Municipal Assistance Program

• Provide funding for a new Coat of Arms design for the Town of Parry Sound

• Addition of a Corporate Communications Officer to provide corporate marketing, social media and communication resources

• Funding for a recruiter to replace two senior staff positions

• Increased funding for summer students, begin earlier and end later, to improve park, downtown cleanliness during peak months

• Increased gravel surface repairs to ensure proper maintenance due to washouts

• Conduct bridge needs study and road needs study to determine infrastructure needs

• Repairs to benches, beach house and fitness trail • Purchase of self-watering flower baskets for use

downtown, will reduce need for manual watering while ensuring flowers are properly maintained

West Parry Sound Area Cooperation Recognizing that what’s good for the Area is good for the Town and vice-versa, the Town will foster positive relationships with Area municipalities, agencies and

senior governments to ensure responsive, efficient and effective delivery to enhance the quality of life of Town and Area residents.

Priorities • We will empower staff to identify and implement

opportunities for Area cooperation that will realize more efficient and effective service delivery for the benefit of all Area residents.

• We will identify defined projects that can be implemented on a regional scale that will have benefit for all participants. We will cooperate with partners on these projects to deliver efficient and effective results.

• We will implement aspects of the Regional Marketing Plan as suitable to coordinate an effective approach to the marketing of our Area to the benefit of all.

• We will investigate opportunities to promote the concept of a Community Hub through partnerships with other Area governments, service providers and service groups.

How the Proposed 2018 Budget Meets This Priority • Increase in household hazardous waste program

to full year.


Financial Overview The Town participated in the BMA Management Consulting Inc. Municipal Study – 2017 which is a study comparing 102 municipalities (representing over 85% of the Ontario population). This study compares municipalities by geographic location and by size.

Socio-Economic Indicators

Population Parry Sound had a population increase from 2011 to 2016 of 3.5% which is lower than the survey average; however when compared to the rest of the North it is a significantly high growth rate (compared to a shrinking population). Parry Sound was the one of two municipalities of 9 Northern to have positive population growth; Greater Sudbury had 0.8% growth since 2011.

The Town also has an aging population, 56% of the population is over 45 years old (27% is over 65). This

compares to the Provincial average of 45% over 45 years old or 17% over 65 years old.

Building Activity In 2016, the Town had $1,940 (2015 - $1,208) of building activity per capita which is below the Provincial median of $3,017 but again higher than the Northern average of $1,249.


Average Household Income The Town’s average 2017 estimated household income of $67,440 is the third lowest of the survey participants. The survey average of $101,143 is over $33,700 higher than the Town average. Northern municipalities have an average household income of $83,197 which is approximately $20,000 below the province.

This puts pressure on the municipality to ensure that tax levels are affordable for residents, who already are earning significantly lower than the Provincial average and the North average. While costs of providing these services may be higher in the North.

Weighted Median Value of Dwelling The Town’s average dwelling value is $214,903 which is approximately 33% lower than survey average. Housing in Parry Sound is therefore valued more affordably than the rest of the Province, on average. When compared to the rest of the North the value of housing in Parry Sound is higher, however this is most likely due to the relative position of Parry Sound at the southern tip of the North.

Financial Indicators Financial indicators are broken down into three categories:

• Sustainability – The ability to provide and maintain service and infrastructure levels without resorting to unplanned increases in rates or cuts to services.

• Vulnerability – Addresses a municipality’s vulnerability to external sources of funding that it cannot control and its exposure to risks.

• Flexibility – The ability to issue debt responsibly without impacting the credit rating. Also, the ability to generate required revenues.

Sustainability

Financial position per capita takes a municipality’s financial assets less its liabilities and puts it on a per capita basis. The Town of Parry Sound has a financial position per capita of $1,228 (2014 - $1,245), the Provincial median was $454. There is no optimal target for this ratio

Tax Asset Consumption ratio is “Total Accumulated Amortization”. It shows the value of tangible capital assets that have been consumed. A higher ratio may indicate significant replacement needs. The Town has an asset consumption ratio of 42.8%, this is just below the survey median of 42.3%; however it should be noted that in 2016 this percentage was lower indicating that the assets are getting older on average. The Ministry considers ratio of 26% to 50% to be moderately new. Once the ratio is 75% or higher it is considered old.


The Net Financial Liabilities ration take the Net Financial Position and divides it by the Town’s Own Source Revenue. The Town is in line with the Provincial average.

Vulnerability

The Town has 110.5% (2015-123%) of its taxation in reserves, this is above the median of 71%; however, this includes the reserves and reserve funds for land ambulance service which are restricted and not discretionary. In other municipalities, the land ambulance service would be provided by upper tier governments or by significantly larger metropolitan cities.

Parry Sound has high reserves per capita figure, $1,709 (2016- $2,593) compared to the median $685 (2016 - $694). While this indicates strong reserves, the public and Council need to be aware that this includes reserve

funds that are not “Town use” and may skew comparison with the other survey municipalities.

In 2016, the Town had tax debt charges of 4.2% of own source revenue which is in line with the Provincial average of 4.4%. However when you include the water and wastewater debt charges this is 8.3% (which is higher than the average of 5.3%). However most of this relates to large plant debentures for the water treatment plant and the wastewater treatment plant, it could be that the other municipalities have older infrastructure.

Parry Sound’s debt per person is $2,248 (2016 - $2,060), this is above the median of $769 (2016 - $540) however is due to our lower population (fourth lowest population in the survey) and urban nature.

The Town’s debt to reserve ratio was 0.8 which is consistent with the past year and is below the survey average of 1.0. The target for this ratio is 1.0.

Flexibility

The Town’s taxes receivable of 4.6% is below the average of 6.0% which means that we are strong in our tax collection ability. As well, our position has improved from 2015 when it was 6.7% of tax revenue.’

The target for this ratio is 8% or lower. The Town is performing strong in this indicator.


The rates coverage ratio provides a measure of the Town’s ability to cover its cost through own source revenue. The Ministry sets a basic target of 40% to 60%, an intermediate target of 60% to 90% and an advanced target of 90%. The Town is currently in the basic level while the average municipality is at the advanced level. What is unknown is the impact of the municipal levies for the Land Ambulance service. This represents a significant Town cost which is shared by the municipalities (which is not typically considered own source).

Taxes Raised

The Town’s taxes per capita are LOWER than the average for the survey and also among the lowest in the North. However, when based on the Town’s assessment it is considered higher than the average (but again lower than the rest of the North).

When looked at the per person cost, the current taxation level appears to be in line with the rest of the Province.

The Town does not have development charges. The average development charge for the Province is $30,512

while the North averages $13,962. The lack of development charges could promote development in Town; however it does also mean that any development related costs are borne by the Taxpayer (unless the developer contributes).

The Town’s tax ratios are lower than the survey average. This represents that other tax classes on average pay closer to the residential class than in other municipalities.


Certain property types in Town have a lower tax amount than the Provincial Average. This goes against the common perception in Town that the “taxes are too high” when compared to other municipalities.

There appears to be a significant disconnect with commercial and industrial water rates when compared to the rest of the Province. The Town is undergoing a review of the rate structure and these rates may be adjusted.

Overall, although the taxes may not be above average when one factors in the low median family income in Town the ability to afford the taxes becomes harder. The Town is above average when considering property taxes as a percentage of income. This again is mainly due to the low income level in Town rather than high taxes.

When the overall cost is considered there is almost a 2% difference between the Town and the average

municipality in the survey. This takes into account both the costs of water as well as the lower income level. There is no easy answer to fix this, the Town is required to charge full cost recovery for water services which the system is receiving.

Maintaining Existing Service Levels The Town’s cost to maintain service levels increases every year due to inflation, like the costs that residents face. Prices may increase for hydro, gas, diesel, construction materials, and staff wages all of which are significant components of the Town’s budget.

Also, included in the maintenance of existing service levels are the costs due to new or enhanced services approved in the 2017 budget or throughout the year where these services were only provided for a portion of 2017. In 2018 additional costs or benefits will result from the annualization of these service levels.

Since March 2014, the Town has been working on reviewing and creating financial policies for debt and reserve management to provide for future long range sustainability of the Town and stability of the tax levy.

Service Partners The Town of Parry Sound has several Service Partners which provide services to the residents of the Town of Parry Sound and the West Parry Sound Area. These service partners include:


• The Parry Sound Public Library • West Parry Sound District Museum • West Parry Sound Health Centre and Lakeland

Long Term Care

The following boards and agencies have a legislated authority to establish budgets and levy funds through the Town. The Town has limited ability to revise their requests.

• Belvedere Heights Home for the Aged • The District Social Services Administration Board • Ontario Provincial Police Service • North Bay Parry Sound District Health Unit • Parry Sound Area Industrial Park Board • Parry Sound Municipal Airport Board • West Parry Sound Area Planning Board


Key Financial Performance Information

Assessment Growth The primary source of recurring, maintainable revenue is through property taxes. The Town’s assessment base is based on assessed values provided by MPAC. Properties in Ontario are assessed every four years, any increase in value is phased-in over the four-year period. If a property dropped in value, the decrease in assessment is immediately changed in the first year of the cycle. As a result, the first year of a cycle often has lower assessment growth.

The following graph shows the assessment each year from 2012 to 2017, this includes both the phase-in portion of growth as well as actual growth in the assessment base due to development in the Town. As can be seen, the clear majority of the Town’s taxable assessment is residential. As 2017, was the first year in a reassessment cycle the Town did experience a decrease in assessment in 2017. It is anticipated that there will be increases in 2018 to 2020 as the phase-in of market value occurs along with new growth.

The following graph better shows the level of residential growth vs commercial growth over the past 5 years.

$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000

2012 2013 2014 2015 2016 2017

Assessment Values 2012 to 2017

Other Taxable

Industrial Taxable

Commercial Taxable

Residential Taxable

$-

$200,000,000

$400,000,000

$600,000,000

2012 2013 2014 2015 2016 2017

Residential and Commercial Assessment 2012 to 2017

Residential Taxable Commercial Taxable


Sources of Revenue The Town has multiple avenues to earn revenue to fund the operations and capital investment required to provide service to residents of Parry Sound.

Property Taxation Property taxation is the primary source of revenue for the Town of Parry Sound. Taxation has increased over the past five years because of new assessment (real growth), phased in assessment (market growth) and tax rate increase.

Grants Operating grants are primarily from the Province of Ontario for the Ontario Municipal Partnership Fund and for the provision of Land Ambulance Service for the District of Parry Sound.

OMPF grant revenue is expected to decrease this year because of Provincial reduction of the fund. There has been a steady decrease over the past 5 years to this funding arrangement. The Town will see an increase in funding in 2018 of approximately $176,000.

11,228,832 10,968,020

11,233,338

11,877,853

12,682,927 12,245,318

2012 2013 2014 2015 2016 2017Budget

Total Taxation 1,978,700 1,957,000 1,863,100

1,784,900 1,720,700

1,662,200

2012 2013 2014 2015 2016 2017Budget

OMPF Funding


Provincial and Federal Grants include the 50% from the Province of Ontario for provision of Land Ambulance Services for the District of Parry Sound. It also includes capital grants from the Province and the Federal Government (including Gas Tax Funds and the formula based Ontario Community Infrastructure Fund). In 2018 the Town is expecting an increase in OCIF formula funding of $144,651 bringing the formula funding to $498,637

Municipal grants from District municipalities for the provision of Land Ambulance Service account for approximately 50% of the operating costs of providing the service.

4,043,550 4,438,201

6,747,183 6,160,038 6,463,192

5,274,918

489,667 407,090 397,206 421,143 954,921 458,950

2012 2013 2014 2015 2016 2017Budget

Ontario Grants Canada Grants

3,557,850 3,479,035

3,599,929

3,969,722

3,807,412 3,931,500

2012 2013 2014 2015 2016 2017Budget

Other Municipal Grants


User Charges User charges are primarily related to the rate-supported activities of the Town’s water and wastewater system.

User charges increase annually based on the CPI in effect on October 31.

Licenses and Permits The Town generates revenue through the issuance of licences (dog, taxi, lottery) and permits (building). The two largest sources of revenue under this grouping are:

• Building permits • Lottery license

In 2014 there were several large building permits issued. This includes a building permit for Parry Sound Public School, while this is a new building in Town, as it is for a public school this will not be taxable assessment growth.

5,355,449 6,406,104 6,330,308 6,098,236 6,525,338 6,407,060

2012 2013 2014 2015 2016 2017Budget

User Charges

121,981 118,761

240,788

119,976

193,417

128,500

2012 2013 2014 2015 2016 2017Budget

Licenses and Permits


Fines The Town is responsible for the operations of the Provincial Offences Act Court for the District of Parry Sound. Revenues from Provincial Offences are recorded as fines when they are received, due to the nature of the appeal process, and uncertainty of collection of older fines, the cash basis of reporting revenue has been used. Any operating surplus for the Provincial Offences Act Court is shared with 19 municipal partners based on a formula which includes population and households.

We have seen a decrease in the number of offences issued since mid 2016 which has resulted in lower fines. The 2018 budget has been reduced by $100,000 to reflect a lower ticket level; however the Town took steps in 2017 to improve collection of past due fines which it anticipates will offset this decrease.

Penalties and Interest Penalties and interest are charges for the late payment of property tax bills and utility bills (water and wastewater).

1,248,646 1,286,955

1,410,464 1,447,400

1,233,945

1,444,800

2012 2013 2014 2015 2016 2017Budget

Fines

112,699 123,063 138,908 135,053 138,039 130,000

2012 2013 2014 2015 2016 2017Budget

Penalties and Interest


Investment Income Investment income summarizes revenues generated through interest and dividends. Interest is primarily from the Town’s bank accounts, while dividends are primarily received from the Town’s ownership of a local utility company.

Investment income in 2014 includes income earned on the merger transaction with Lakeland Holdings Ltd. This is a non-recurring source of investment revenue.

Starting in late 2016 the Town has been more active in investing developing several laddered portfolios. The Town has also invested in the ONE Investment Fund for equity for both general operating funds as well as the Capital Asset Legacy Reserve Fund.

Other Income Other income is comprised of water meter sales, mulch/compost material sales, as well as miscellaneous tax refunds and donations.

Rents and concessions are comprised of rental for municipal owned assets (e.g. Smelter Wharf Port, Stockey Centre rentals).

384,559 405,022

2,177,091

414,071 436,910 344,475

2012 2013 2014 2015 2016 2017Budget

Investment Income

550,654 527,139 517,988 568,720

528,449 460,455

28,170 20,329 19,322 35,654 129,509

16,783

2012 2013 2014 2015 2016 2017Budget

Rents, Concessions Other Income


Expenditures The Town reports expenditures both by function (what the expense is for) and by segment (who the expense is for).

Expenditures by Function The following chart shows the actual expenses for 2016 by expense type.

The largest expense for the Town is the contract for service with the WPSHC for delivery of land ambulance service throughout the District of Parry Sound.

If the contract for land ambulance is removed the percentage of expenses changes. Salaries, wages and benefits represent almost 30% of the expenses of the Town. Almost 20% of expenses relate to amortization of capital assets; amortization is the allocation of the cost of

the capital asset over its useful life. Interest on long-term debt, which includes debt for water and wastewater services, is only 3% of the total expenditures of the Town.

23%

10%

40%

5%2%

4%

16%0%

2016 ACTUAL

Salaries, wages & benefits

Materials

Contracted Services

Rent and Financial Expenses

Interest on Long-term Debt

External transfers

Amortization

Inter-segment transfers

30%

12%

21%

7%

3%

6%

21%

0%

2016 ACTUAL (WITHOUT EMS)

Salaries, wages & benefits

Materials

Contracted Services

Rent and Financial Expenses

Interest on Long-term Debt

External transfers

Amortization

Inter-segment transfers


Expenditures by Segment The Town separates its reporting by segment for financial reporting purposes. The 2016 expenses by segment were as follows:

Health Services include the Land Ambulance Service.

9%

14%

15%

19%

28%

2%

11%2%

EXPENSES BY SEGMENTGeneral Government

Protection to Persons andPropertyTransportation Services

Environmental Services

Health Services

Social and Family Services

Recreation and CulturalServices


Organizational Chart and Staffing Resources

Municipal Services The following chart shows the organizational structure for the Town of Parry Sound effective January 1, 2018.

Council

Chief Administrative Officer(6 FTE)

Director of Finance and POA Court Services

Provincial Offences Act(3 FTE)

Finance(7 FTE)

Director of Public Works(2 FTE)

Operations(16 FTE)

Water Services(5 FTE)

Wastewater Services(5 FTE)

Director of Emergency Services(1 FTE)

Fire(1 FTE)

By-law Enforcement(1 FTE)

Director of Development and Leisure Services

(1 FTE)

Parks and Recreation(6 FTE)

Development Services(2 FTE)

Charles W. Stockey Centre and Bobby Orr Hall of

Fame(4 FTE)


Staffing Resources 2017 vs 2018 The following represents the full-time equivalent positions for the Town’s tax supported activities. Summer students, post-secondary interns, and seasonal staff are not included in these totals.

Although parking services is a non-tax supported activity, staff in this department are part of the By-law Department and therefore included in the tax-supported activities.

Department 2017 Proposed 2018

Administration 5 4 Development and Leisure Services

13 15

Emergency and Protective Services / Fire

4 4

Finance 8 8 Public Works 19 21 Total Tax Supported 49 52

The Town also employs staff who are part of non-tax supported activities. These are departments where the revenues and expenses are not part of the general tax levy. Although these staff are employed by the Town, their costs are not borne by the tax levy.

Department 2017 Proposed 2018

Land Ambulance 0 0 Provincial Offences Act Court Services

3 3

Water 4 4 Wastewater 5 5 Total Non-Tax Supported 12 12

The Town does not directly employ any full-time staff for land ambulance services. A portion of staff time is allocated to land ambulance. Paramedics and management are employees of the West Parry Sound Health Centre which is the contract provider for the Town.

2018 Staffing and Operational Changes The 2018 staffing changes include several changes in the operations of the Town and includes several proposed staffing changes.

Effective throughout 2018 there will be several changes to the reporting structure. The following represents those changes.

Administration A Corporate Communications Officer position was created, to be filled in 2018, to provide corporate wide communication and marketing support. This position reports to the CAO and will be responsible for both Town of Parry Sound and Charles W. Stockey Centre and the Bobby Orr Hall of Fame communications.


The Corporate Information Systems Coordinator position was changed to Manager of Infrastructure and Technology and the scope of duties enhanced to provide for more oversight of infrastructure projects. This position, as well as the existing IT Technician position, will be moved to the Public Works Department in 2018. Staff are also recommending a shared GIS resource for 2018 to ensure that GIS functionality is enhanced.

Charles W. Stockey Centre and the Bobby Orr Hall of Fame In 2017, Council approved a reorganizational plan for the Charles W. Stockey Centre and Bobby Orr Hall of Fame for the ongoing operations of the facility.

The General Manager position is being eliminated and being replaced by a Programming and Events Manager which will focus on the operations of the Centre. A new Bobby Orr Hall of Fame Curator position will be focused on the operations and fundraising for the BOHF.

The Marketing and Events Coordinator position was eliminated, with the marketing responsibilities for the centre becoming the responsibility of the Corporate Communication Officer’s position.

Public Works In 2018, staff are again proposing the addition of a labourer position to assist at the Waste Transfer Station. The Waste Transfer Station currently has one employee and a summer student. The addition of the full-time employee will improve safety at the location throughout

the year by providing a second person (in case of injury or customer incident), improve customer service, and allow for the summer student to be re-assigned to other positions within the Town (such as downtown).

Staff are also proposing that the Household Hazardous Waste depot will be open year-round, the additional revenue will offset the cost of the additional staff member while providing improved service to residents.

In addition, the Manager of Infrastructure and Technology position will be reassigned to Public Works from Administration. This will provide a new project management resource for the major infrastructure projects the Town is or will be undertaking.

Development In 2018, the Town will be hiring a full-time Economic Development Officer to ensure that Council’s strategic priority of Growth & Development is obtained. This position will take on the responsibilities from the contracted EDO position as well as those economic development responsibilities of the Director of Development and Leisure Services (who retires in May 2018).




Departmental Budget – Chief Administrative Officer Departmental Overview The Chief Administrative Officer (CAO) is the senior management official for the Town. All Directors report directly to the CAO. The CAO is also responsible for the Administrative operations of the Town.

Administration The Town of Parry Sound Administration Department provides corporate wide services for all departments and support of Council. The Town’s Clerk and Human Resources Coordinator report directly to the CAO and provide services to all departments. The Administration department is also responsible for marriage licenses, cemetery administration, freedom of information requests and corporate file management.

In 2018, new initiatives include:

• Increased rental revenue of municipal property ($19,000)

• Increased OMPF funding ($176,200) • Increased investment income to reflect more

active investments ($24,000) • New Corporate Communications Officers position

($85,800) • Consulting fees for CAO and Treasurer

recruitment ($50,000) • 2018 municipal election ($18,450) • Creation of shared GIS resource ($40,000) • Provide annual funding to Council for grants

outside of the Municipal Assistance Program ($9,000)

• Design for new Town Coat of Arms ($5,000)

Operating Budgets The Service Delivery Budgets for Administration and the CAO include the following:

Chief Administrative

Officer

Clerk

Administrative Assistant

Human Resources Coordinator

Corporate Communications

Officer



Council

2017 2018 Total

Budget


Non-Controllable

Changes Service Level

Changes

Non-Recurring Amounts Total Budget

% Budget Change

Total Council administration

30,609

37,300

25,800 -

9,000 -

34,800 -9.7%

Total Mayor 54,604

60,900

60,900 -

(1,000) -

59,900 -2.0%

Total Councillors 112,731

126,400

126,400

300

(100) -

126,600 0.2%

Total Promotion and Donations

8,038

12,000

12,000

100 -

5,000

17,100 11.9%

Total Expenses 205,981

236,600

225,100

400

7,900

5,000

238,400 0.7%

Remove amortization - - - - - - - 0.0%

Net Levy 205,981

236,600

225,100

400

7,900

5,000

238,400 0.8%


Administration

2017 2018 Total

Budget

2016 Actual Total

Budget Baseline Budget

Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Property Tax Revenue

Total General Levy (9,669,224)

-

-

-

-

-

- 0.0%

Total Supplementary taxes (217,670)

(40,000)

(40,000)

-

-

-

(40,000) 0.0%

Total BIA levy (66,100)

-

-

-

-

-

- 0.0%

Total Taxation Revenues (9,952,994)

(40,000)

(40,000)

-

-

-

(40,000) 0.0%

Payments in Lieu of Taxes

Total Canada (185,373)

(176,800)

(176,800)

(26,200)

-

-

(203,000) 14.8%

Total Ontario-tax assist act (134,228)

(117,100)

(117,100)

(12,000)

-

-

(129,100) 10.2%

Total Ontario-sect 160 Mun act

(9,150)

(9,500)

(9,500)

400

-

-

(9,100) -4.2%

Total Municipal Enterprises (16,451)

(16,400)

(16,400)

-

-

-

(16,400) 0.0%

Total Native non profit housing

(58,456)

(52,500)

(52,500)

(18,000)

-

-

(70,500) 34.3%

Total Payments in Lieu of Taxes

(403,659)

(372,300)

(372,300)

(55,800)

-

-

(428,100) 15.0%

Grants and Other Revenue

Total grants (2,061,048)

(1,679,950)

(1,679,950)

-

(158,450)

-

(1,838,400) 9.1%

Total Other (67,601)

(101,400)

(101,400)

(1,000)

(19,000)

-

(121,400) 19.7%

Total Investment Income (425,544)

(339,325)

(339,325)

(70,000)

(24,000)

-

(433,325) 31.4%


2017 2018 Total

Budget

2016 Actual Total


Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Total Donations (233,845)

(8,283)

(8,283)

-

-

-

(8,283) 0.0%

Total Grants and Other Revenue

(2,788,039)

(2,128,958)

(2,128,958)

(71,000)

(201,450)

-

(2,401,408) 12.7%

Rental Income from Other Properties

Total Revenue (10,019)

(9,850)

(9,850)

(250)

-

-

(10,100) 2.5%

Total Revenue (13,154,711)

(2,551,108)

(2,551,108)

(127,050)

(201,450)

-

(2,879,608) 12.8%

Total Administrative services 473,182

513,750

513,750

14,400

85,800

50,000

663,950 32.2%

Total Municipal building 334,773

329,006

329,006

(4,034)

-

-

324,972 -1.2%

Total Elections 1,556

1,550

1,550

-

-

18,450

20,000 1190.3%

Total Municipal office equipment

65,569

60,000

60,000

-

2,800

-

62,800 4.7%

Total Staff recognition/functions

3,692

4,300

4,300

-

-

-

4,300 0.0%

Total Information Technology 219,980

224,840

224,840

49,000

40,000

-

313,840 40.9%

Total Staff wellness program 2,106

2,000

2,000

-

-

-

2,000 0.0%

Total Accessibility (AODA) 6,579

11,600

11,600

-

-

-

11,600 0.0%

Total Corporate -Digital Info System

21,603

25,300

25,300

3,000

-

-

28,300 11.4%

Total Old Fire Hall 2,546

3,700

3,700

-

(3,700)

-

- -100.0%

Total CPR Station 14,489

11,208

11,208

-

-

-

11,208 0.0%


2017 2018 Total

Budget

2016 Actual Total


Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Total CNR station 3,483

10,400

10,400

-

(10,400)

-

- -100.5%


1,197,654

1,197,654

62,366

114,500

68,450

1,442,970 21.5%

Net Levy (12,005,154)

(1,353,454)

(1,353,454)

(64,684)

(86,950)

68,450

(1,436,638) 5.8%

Remove Amortization (151,131)

(126,223)

(126,223)

-

1,000

-

(125,223) -0.8%

Net Levy (12,156,285)

(1,479,677)

(1,479,677)

(64,684)

(85,950)

68,450

(1,561,861) 5.3%


Funding to Third Parties

2017 2018 Total

Budget


Non-Controllable

Changes

Service Level

Changes


% Budget Change

Airport costs:

Total Airport costs 11,925

12,600

12,600

300

-

-

12,900 2.4%

Total Muskoka PS Health unit

183,566

183,400

183,400

5,500

-

-

188,900 3.0%

Total Donations to Health Centre - - - -

-

- - 0.0%

Total DSAB-Social assistance

251,571

240,600

240,600

7,200

-

-

247,800 2.9%

Total Home for Aged

130,326

130,350

130,350

3,900

-

-

134,250 3.0%

Total Seniors Assistance

3,500

5,000

5,000 -

-

-

5,000 0.0%

Total DSAB-Child care

54,412

52,000

52,000

1,600

-

-

53,600 2.9%

Total Library board

166,856

178,386

178,386

5,614

-

-

184,000 3.4%

Total Museum committtee

30,000

30,900

30,900

900

-

-

31,800 3.0%

Total Municipal Heritage committee - - - -

-

- - 0.0%

Total Area Planning Board

24,603

4,000

4,000

100

-

-

4,100 1.6%

Total DSAB-housing

29,893

28,700

28,700

900

-

-

29,600 3.0%


865,936

865,936

26,014

-

-

891,950 3.0%

Remove Amortization - - - -

-

- - 0.0%

Net Levy 886,652

865,936

865,936

26,014

-

-

891,950 3.0%


Capital Budgets The capital budgets for the CAO for 2018 are proposed to include:

Administration Municipal Office Cost Current Year Taxes Reserves

Garbage Room at Municipal Building $ 20,000 $ - $ 20,000

Renovate front service area to improve customer service, ergonomics and privacy 30,000 - 30,000 Replace gas line to power generator 7,500 7,500 - Total $ 57,500 $ 7,500 $ 50,000

Administration Information Technology Cost

Current Year Taxes Reserves

Laptop and Desktop Replacement $ 10,200 $ - $ 10,200

Council meeting devices- due to new council 11,700 - 11,700 Replacement of networking infrastructure 23,200 - 23,200 Replacement of SC Telephone system 10,000 10,000

Replacement of BOCC Telephone system 7,000 7,000

Replacement of Water Treatment Plant phone system 7,000 7,000

Replacement of Wastewater Treatment Plant phone system 7,000 7,000

Replacement of Operations Yard phone system 7,000 7,000 Total $ 83,100 $ 38,000 $ 45,100


Departmental Budget – Director of Finance and POA Court Services

Departmental Overview The Finance and POA Court Services Department is responsible for treasury services for the Town of Parry Sound as well as the administration of the District of Parry Sound Provincial Offences Act Court.

Finance The Town of Parry Sound Finance Department provides financial control, planning, and bookkeeping services for the corporation. The Finance Department is responsible for collecting taxes and other revenues, as well as ensuring outgoing payments are made to suppliers

In 2018, new initiatives include:

• Funding for software to allow for improved audit prep as well as self-drafting financial statements ($1,700)

Director of Finance and POA Court

Services

Manager of Accounting

Services

Accounts Payable Clerk

Payroll and Internal Customer

Care Clerk

Utility Billing Clerk

Manager of Revenue and

Taxation

Accounts Receivable Clerk

Receptionist / Cashier

Manager of POA Court Services

POA Court Monitor

POA Administration

Clerk


Finance

2017 2018 Total

Budget


Non-Controllable

Changes

Service Level

Changes


% Budget Change

Total Revenues (147,667)

(130,000)

(130,000)

(6,500)

-

-

(136,500) 5.8%

Total Financial services

553,052

480,655

480,655

11,700

-

-

492,355 2.6%

Total Financial expenses

658,956

96,000

96,000 -

-

-

96,000 0.0%

Total Property assessment costs

94,145

94,150

94,150 -

-

-

94,150 0.0%


670,805

670,805

11,700

-

-

682,505 1.8%

Net Levy 1,158,486

540,805

540,805

5,200

-

-

546,005 1.0%

Remove Amortization 0.0%

Net Levy 1,158,486

540,805

540,805

5,200

-

-

546,005 1.0%

Capital Budget Finance and POA Court Services Finance Cost

Current Year Taxes

Replacement of POA printers $ 2,000 $ 2,000 Total $ 2,000 $ 2,000


Departmental Budget – Director of Emergency and Protective Services Departmental Overview Emergency and Protective Services includes the Town of Parry Sound Fire Department, By-law Enforcement Services, and Parking Services (non-tax supported) in the Town of Parry Sound.

The District of Parry Sound Land Ambulance Service is also administered by the Town.

The Parry Sound Fire Department provides fire suppression as well as prevention services for the Town of Parry Sound and neighbouring municipalities through a mutual aid agreement.

The Town’s By-law Enforcement department provides by-law enforcement and supports parking services within the Town of Parry Sound.

The 2018 new initiatives include:

• Purchase of Hazmat equipment for mutual aid (previously billed to municipalities and CP Rail) $10,000

Operating Budget The proposed operating budget is as follows:

Director of Emergency and Protective Services

/ Fire Chief

Fire Prevention Officer Volunteer Firefighters Municipal By-law Enforcement Officer

Crossing Guards

Assistant By-law Enforcement Officers



2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget

Non-Controllable Changes

Service Level

Changes


Total Budget

% Budget Change

Total Revenues - Fire Department (17,380)

(9,050)

(9,050)

-

-

-

(9,050) 0.0%

Total Revenues - Policing Services -

(117,766)

(117,766)

-

-

-

(117,766) 0.0%

Other Municipalities (20,248)

(40,300)

(40,300)

-

15,000

-

(25,300) -46.2%

Municipal By-Law Fines (Non-parking fines)

(1,705)

(1,000)

(1,000)

(1,000) 0.0%

Licenses and Permits (33,215)

(43,500)

(38,500)

-

-

-

(38,500) -13.0%

Total Revenues - By-law Enforcement (Non-Parking)

(55,168)

(84,800)

(79,800)

-

15,000

-

(64,800) -27.8%

Total Revenues - Parking (20,029)

(20,500)

(20,500)

500

-

-

(20,000) -1.4%

Total Revenue (92,576)

(232,116)

(227,116)

500

15,000

-

(211,616) -12.5%

Expenses Total Expenses - Emergency Management

7,695

6,563

6,563

-

-

-

6,563 0.0%

Total Fire Administration 120,031

128,500

128,500

2,500

-

-

131,000 2.0%

Total Fire hydrants 22,225

18,150

18,150

-

-

-

18,150 0.0%

Total Fire prevention 122,678

115,900

115,900

3,100

-

-

119,000 2.8%

Total Risk watch program 216

1,000

1,000

-

-

-

1,000 0.0%

Total Firefighters gear & equipment 58,026

52,800

52,800

-

-

-

52,800 0.0%


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Total Fire vehicles 114,600

119,700

119,700

-

-

-

119,700 0.0%

Total Volunteer firefighters 538,313

260,674

260,674

2,554

-

-

263,228 1.0%

Total Mutual aid 403

2,100

2,100

200

-

10,000

12,300 485.7%

Total Firehall 83,195

74,675

74,675

-

-

-

74,675 0.0%

Total Expenses - Fire Department 1,059,688

773,499

773,499

8,354

-

10,000

791,853 2.4%

Total Expenses - Police Services 1,828,839

1,942,682

1,942,682

110,218

-

76,000

2,128,900 10.1%

Total By Law enforcement 148,057

197,425

196,425

-

-

-

196,425 -0.6%

Total Dog & cat control costs 4,388

8,750

8,750

-

-

-

8,750 0.0%

Total Impound facility 24,177

40,245

39,245

(1,600)

-

-

37,645 -6.7%

Total School crossing guards 16,827

36,100

36,100

-

-

-

36,100 0.0%

Total Expenses - By-law Enforcement 193,449

282,520

280,520

(1,600)

-

-

278,920 -1.5%

Total Emergency and Protective Services

3,089,671

3,005,263

3,003,263

116,972

-

86,000

3,206,235 7.0%

Net Loss 2,997,095

2,773,147

2,776,147

117,472

15,000

86,000

2,994,619 8.2%


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Remove Amortization (147,186)

(143,000)

(143,000)

-

-

-

(143,000) 0.0%

Net Levy 2,849,909

2,630,147

2,633,147

117,472

15,000

86,000

2,851,619 8.7%


Capital Budget The proposed capital budget for Emergency and Protective Services is as follows:

Emergency Services Fire Cost Current Year Taxes Reserves Reserve Fund

Pooled Firefighters Gear $ 37,000 $ - $ 37,000 $ -

Personal Protective Equipment 12,900 - 12,900 -

Replace Self Contained Breathing Apparatus 275,000 - 275,000

Convert firehall to natural gas heating from electrical heating 20,000 - 20,000 Contribution to area fire training facility 7,691 - 7,691 Total $ 352,591 $ - $ 344,900 $ 7,691

Emergency Services By-Law Enforcement Cost

Current Year Taxes Reserves

Replace By-law vehicle $ 37,900 $ - $ 37,900 Total $ 37,900 $ - $ 37,900




Departmental Budget – Director of Public Works Departmental Overview The Town’s Department of Public Works includes the Operations Department, Waste Management, Water and Wastewater. Water and Wastewater are non-tax supported.

The Town’s Operations department is responsible for maintenance of the Town’s transportation infrastructure (roads, sidewalks, bridges), storm water management, and cemetery services. The Town also provides waste

management services to Parry Sound ratepayers and surrounding municipalities.

Director of Public Works

Manager of Water Systems

Water Operators (4)

Manager of Wastewater

Systems

Wastewater Operators (4)

Operations Centre Foreman

Operations Leadhand

Mechanic / Heavy Equipment

Opertor

Mechanic Helper / HEO

Heavy Equipment Operator (7) Labourers (4) Transfer Station

Attendant

Manager of Infrastructure and

Technology

IT Technician


Operations Clerk


In 2018 the following new initiatives are being proposed:

• Conduct road needs study, funded by OCIF ($50,000, no tax dollars)

• Increased gravel surface maintenance to combat increased washouts due to storms ($5,000)

• Conduct bridge needs study, funded by OCIF ($65,000, no tax dollars)

• Engineering for railway crossings to determine ability to cease whistle use ($20,000)

• Additional staff at waste transfer site to improve safety, customer service and extend Household Hazardous Waste to year round ($55,200 net)

• Retrofit lighting at Operations Yard building ($4,000)

Operating Budget The proposed 2018 operating budget is as follows:


Public Works

2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Revenues

Grants (2,387,245)

(732,936)

(732,936)

(163,080)

-

-

(896,016) 27.9%

Transit fees (722)

-

-

-

-

-

- 0.0%

Cemetery revenue (64,012)

(52,450)

(52,450)

(2,000)

-

-

(54,450) 3.8%

Sponsorship -

(5,000)

(5,000)

-

-

-

(5,000) 0.0%

Cemetery Investment Income (2,868)

(2,550)

(2,550)

-

-

-

(2,550) 0.0%

Waste Management Revenues (110,139)

(119,167)

(119,167)

15,667

-

-

(103,500) -14.0%


(912,103)

(912,103)

(149,413)

-

-

(1,061,516) 19.8%

Total Operations 183,085

158,370

158,370

-

-

50,000

208,370 34.0%

Total Public works administration 397,224

382,987

382,987

-

34,000

-

416,987 9.4%

Total Grafitti damages -

2,700

2,700

-

-

-

2,700 0.0%

Total PW - unlicensed larger equipment

24,957

(16,750)

(27,750)

10,000

-

-

(17,750) 3.6%

Total PW - vehicles & licensed equipment

9,658

300

(1,700)

-

-

-

(1,700) 51.7%

Total PW - small tools & equipment 6,797

18,750

18,750

-

-

-

18,750 0.0%

Total Public works facilities 114,215

104,050

104,050

2,000

-

4,000

110,050 5.8%

Total Sidewalk repairs 421,657

381,500

381,500

-

-

-

381,500 0.0%


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Total Sidewalk cleaning 1,452

4,300

4,300

-

-

-

4,300 0.0%

Total Gravel surface maintenance 29,787

38,500

38,500

-

5,000

-

43,500 14.9%

Total Asphalt surface maintenance 131,364

133,300

133,300

-

-

-

133,300 0.0%

Total Amortization/financing - roadways

1,646,654

1,168,957

1,168,957

(2,465)

-

-

1,166,492 -0.2%

Total Bridge maintenance 132,704

135,600

135,600

-

-

65,000

200,600 47.9%

Total Trees on ROW 43,095

55,400

55,400

-

-

-

55,400 0.0%

Total Curb and Gutter maintenance 1,389

13,600

13,600

-

-

-

13,600 0.0%

Total Culvert maintenance 24,033

38,350

38,350

-

-

-

38,350 0.0%

Total Ditch maintenance 15,452

15,550

15,550

-

-

-

15,550 0.0%

Total Pavement markings 44,520

51,700

51,700

-

-

-

51,700 0.0%

Total Railway crossing & signals 26,225

20,000

20,000

-

20,000

-

40,000 100.0%

Total Guide rails & posts 13,095

23,250

23,250

-

-

-

23,250 0.0%

Total Public wharfs 14,222

16,000

14,500

-

-

-

14,500 -10.4%

Total Roadside grass cutting 32,889

48,300

48,300

-

-

-

48,300 0.0%

Total Street sweeping 17,980

26,200

26,200

-

-

-

26,200 0.0%

Total Sidewalk snow plowing 30,675

39,500

39,500

-

-

-

39,500 0.0%

Total Sidewalk salt & sanding 214,410

186,800

186,800

-

-

-

186,800 0.0%

Total Street snow plowing 107,449

124,023

124,023

-

-

-

124,023 0.0%


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Total Street snow removal 148,791

254,000

254,000

-

-

-

254,000 0.0%

Total Street salt & sanding 250,790

199,340

199,340

-

-

-

199,340 0.0%

Total Traffic signals 59,107

89,000

89,000

-

-

-

89,000 0.0%

Total Traffic signs 9,754

12,900

12,900

-

-

-

12,900 0.0%

Total Traffic Control 517

-

-

-

-

-

- 0.0%

Total Street lights 177,666

160,500

160,500

-

-

-

160,500 0.0%

Total Street signs 3,016

19,900

19,900

-

-

-

19,900 0.0%

Total Public transit -

-

-

-

-

-

- 0.0%

Total Specialized transit -

-

-

-

-

-

- 0.0%

Total Storm sewer maintenance 176,318

149,700

149,700

-

-

-

149,700 0.0%

Total Catch basin maintenance 2,101

4,622

4,622

(324)

-

-

4,298 -6.6%

Total Catch basin maintenance 71,613

53,450

53,450

-

-

-

53,450 0.0%

Total Cemetery administration 8,053

41,615

41,615

-

-

-

41,615 0.0%

Total Unlicensed larger equipment (14,324)

(7,900)

(7,900)

-

-

-

(7,900) 0.0%

Total Vehicles & licensed equipment 7,448

7,355

7,355

-

-

-

7,355 0.0%

Total Small tools & equipment (143)

3,000

3,000

-

-

-

3,000 0.0%

Total Hillcrest cemetery 42,840

41,450

41,450

-

-

-

41,450 0.0%

Total Hillcrest interments 11,110

11,000

11,000

-

-

-

11,000 0.0%


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Total Hillcrest monument care 3,278

2,800

2,800

-

-

-

2,800 0.0%

Total Hillcrest perpetual care 70,843

79,411

79,411

-

-

-

79,411 0.0%

Total Sylvan Acres cemetery 13,610

17,200

17,200

-

-

-

17,200 0.0%

Total Sylvan Acres interments 9,065

15,700

15,700

-

-

-

15,700 0.0%

Total Sylvan Acres monument care 33

1,700

1,700

-

-

-

1,700 0.0%

Total Sylvan Acres perpetual care 16,513

22,100

22,100

-

-

-

22,100 0.0%

Total Tree replacement program -

5,000

5,000

-

-

-

5,000 0.0%

Total Expenses - Operations 4,752,989

4,355,079

4,340,579

9,211

59,000

119,000

4,527,790 4.0%

Total Waste management administration

45,164

64,650

64,650

-

-

-

64,650 0.0%

Total Waste disposal general 174,753

164,400

164,400

-

-

-

164,400 0.0%

Total MacFarlane site closure 9,762

11,000

11,000

-

-

-

11,000 0.0%

Total MacFarlane transfer site 175,976

178,500

178,500

-

32,800

-

211,300 18.1%

Total Town recycling program 44,239

47,100

47,100

-

12,000

-

59,100 25.6%

Total O.C.C. program 28,314

33,300

33,300

-

22,300

-

55,600 62.3%

Total H.H.W. proram 34,669

71,900

71,900

-

(14,100)

-

57,800 -34.5%

Total Recycling pick-up 127,503

126,000

126,000

-

-

-

126,000 0.0%

Total Compost program 67,996

114,100

54,100

-

2,200

-

56,300 -106.9%


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Total Unlicensed larger equipment (1,432)

600

600

-

-

-

600 0.0%

Total Waste collection general 118,227

126,750

126,750

-

-

-

126,750 0.0%

Total Litter pick up 74,830

63,100

63,100

-

-

-

63,100 0.0%

Total Leaf, tree & pumpkin pick up 21,411

12,700

12,700

-

-

-

12,700 0.0%

Total Expenses - Waste Management

921,412

1,014,100

954,100

-

55,200

-

1,009,300 -0.5%

Total Parking administration/purchase

57,230

4,100

4,100

-

-

-

4,100 0.0%

Total Parking meter maintenance 39,688

12,525

12,525

-

-

-

12,525 0.0%

Total Parking lots snow plowing 18,752

15,500

15,500

-

-

-

15,500 0.0%

Total Parking lots other work 9,392

13,300

13,300

-

-

-

13,300 0.0%

Total Parking attendant costs 28,429

-

-

-

-

-

- 0.0%

Total Parking Department Expenses 153,491

45,425

45,425

-

-

-

45,425 0.0%

Total Expenses - Public Works 5,827,892

5,414,604

5,340,104

9,211

114,200

119,000

5,582,515 3.1%

Net Levy 3,262,906

4,502,502

4,428,002

(140,202)

114,200

119,000

4,521,000 0.4%

Add grant revenues which relate to capital spending

1,996,423

-

-

-

-

-

-


2017 2018 Total

Budget

2016 Actual

Total Budget

Baseline Budget


Service Level

Changes


Total Budget

% Budget Change

Remove Amortization (2,023,693)

(1,856,600)

(1,856,600)

-

-

-

(1,856,600) 0.0%

Net Levy 3,235,636

2,645,902

2,571,402

(140,202)

114,200

119,000

2,664,400 0.7%

Capital Budget The propose capital budget for the Public Works department is as follows:

Public Works Operations Cost

Current Year Taxes Debenture Provincial Grant Reserves

Replace 07-730 sidewalk plow $ 165,200 $ - $ 165,200

Replace vacuum truck (purchased in 2017) 350,000 - 350,000

Hillcrest Cemetery - replace storage shed #2 10,000 10,000

Hillcrest Cemetery - monument restoration 15,000 15,000 Hillcrest Cemetery - Cyclone Rake 5,000 5,000 Hillcrest Cemetery - pillar repairs 20,000 20,000

Transfer Station Compactors 100,000 100,000

Storm sewer replacement at Laird and Mapleview 50,000 - 50,000 Lining of Parry Sound Drive culverts 150,000 - 150,000

Portable traffic lights 40,000 40,000


Public Works Operations Cost

Current Year Taxes Debenture Provincial Grant Reserves

Replacement of traffic light control systems (carry from 2017 and 2018 replacement) 60,000 - 60,000

Purchase of storm sewer locator 10,000 10,000

Replace Trackless blade 7,500 - 7,500

Upgrade HVAC system at Operations Yard 10,000 - 10,000 Upgrade hot water tank at Operations Yard to natural gas 5,000 - 5,000 Upgrade to Fitness Trail behind McNabb Lumber to repair storm drainage 8,000 8,000

Replace Gibson St / Logans Lane retaining wall 150,000 - 150,000

Isabella Street Realignment 1,380,272 - 620,207 760,065 Emily Street Reconstruction - Town portion 197,190 - 197,190

Waubeek Street Reconstruction - Town portion 2,162,289 - 1,965,100 197,189 Paving replacement 250,000 1,363 248,637 Total $ 5,145,451 $ 209,363 $ 2,585,307 $ 1,603,081 $ 747,700




Departmental Budget – Director of Development and Leisure Services

Departmental Overview The Development and Leisure Service Department is responsible for:

• Parks and Recreation Services • Charles W. Stockey Centre for the Performing Arts • Development Services

Director of Development and Leisure Services

Parks and Recreation Manager

Parks / Recreation Staff (5)

Lifeguards (Seasonal)

Chief Building Official Principal PlannerCharles W. Stockey

Centre Programming and Events Manager

Technical Director(Contracted)

Technical Support

Custodian

Front of House Coordinator

Casual Staff and Volunteers

Bobby Orr Hall of Fame Curator



Parks and Recreation Services are responsible for the maintenance of the Town’s outdoor parks, recreation programming, outdoor ice rink, and the Town Dock.

The Charles W. Stockey Centre for the Performing Arts is the area’s performing arts theatre and is home to the Bobby Orr Hall of Fame.

Development Services are responsible for the providing building permits and inspection in accordance with the Ontario Building Code, planning services for the Town including the Town’s official plan and zoning by-laws, and economic growth in Parry Sound including events which promote economic activity in the Town. Effective March 1, 2018 the development services department will move to the Director of Emergency and Protective Services and a new department of Development and Protective Services will be formed.

The 2018 initiatives include:

• Offsetting revenues and expenses for the 2018 FONOM annual conference (nets $0)

• Funding for NOHFC Tourism intern (net $8,500)

• Providing surveys for two properties ($15,000) • Increased funding to the façade improvement

program ($55,000) • Waterfront advisory committee materials and

signage improvements ($7,000) • Feasibility study for Parry Sound Innovation Park

($60,000) • Implement full time Economic Development Officer

($76,600, this is offset by $43,000 in contract savings for contract EDO)

• Increased repairs to Big Sound Marina and Town Dock ($29,000)

• Replacement of wood benches, repairs to fitness trail bridge $10,000

• Repair warning track at Kinsmen Park ($11,000) • Replace buoy lines at Waubuno Park ($5,000) • Purchase self-watering flower baskets for

downtown hanging baskets ($14,500)

Operating Budget The proposed operating budget for the Development and Leisure Service Department is as follows:


Parks and Recreation

2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Revenues

Total Revenues (50,797)

(73,760)

(73,760)

(3,900) - -

(77,660) 4.6%

Expenses Total Recreation administration

79,116

167,160

167,160 -

36,100

2,000

205,260 37.3%

Total Parks - Non-specific Parks

213,584

205,550

205,550 -

40,000

255,550 23.5%

Total Parks- Waubuno Park

37,363

41,700

41,700 - -

3,300

45,000 7.4%

Total Parks- Booth Street Park - - - - - - - 0.0% Total Parks - Tower Hill Park

17,939

21,650

21,650 - - -

21,650 0.0%

Total Parks - Market Square Park

15,155

20,660

20,660 - -

5,000

25,660 25.4%

Total Parks - Kinsmen Park

134,287

167,425

157,425 - -

11,000

168,425 0.6%

Total Unlicensed larger equipment

11,969

18,600

18,600 - - -

18,600 0.0%

Total Vehicles & licensed equipment

(19,935)

(3,950)

(3,950) - - -

(3,950) 0.0%

Total Small tools & equipment

515

5,600

5,600 - - -

5,600 0.0%

Total Events co-ordinator

36,023 - - - - - - 0.0%

Total Skateboard Park -

850

850 - - -

850 0.0%


2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Total Community development

16,301

16,500

16,500 - - -

16,500 0.0%

Total Recreation programs - general

597 - - -

35,400 -

35,400 0.0%

Total Swim program

62,323

63,070

60,070

3,000 -

5,000

68,070 8.4%

Total Santa Claus Parade

983

1,500

1,500 - - -

1,500 0.0%

Total Youth Nights -

8,343

8,343 -

(8,343) - - -100.0%

Total Lacrosse - 4,143

4,143 -

(4,143) - - -100.0%

Total Ball Hockey

1,215

4,143

4,143 -

(4,143) - - -100.0%

Total Shuffleboard

3,306

2,343

2,343 -

(2,343) - - -100.0%

Total Neighbourhood Competition

4,499

6,343

6,343 -

(6,343) - - -100.0%

Total Pickleball - 4,343

4,343 -

(4,343) - - -100.0%

Total Craft Nights

1,912

5,343

5,343 -

(5,343) - - -100.0%

Total Soap Box Derby -

5,800

5,800 - - -

5,800 0.0%

Total Volunteer appreciation

214

2,350

2,350 - - -

2,350 0.0%

Total Leisure guide

3,259

3,500

3,500 -

(3,500) - - -100.0%

Total Linens - 100

100 - -

1,000

1,100 1000.0%

Total Snowfest program

6,479

6,900

6,900 - - -

6,900 0.0%

Total Pan Am Games Torch Run

21 - - - - - - 0.0%

Total Big Sound Marina

129,171

44,400

44,400 -

3,805

19,000

67,205 51.4%


2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Total Town Dock 14,828

18,600

18,600 - -

10,000

28,600 53.8%

Total Waterfront dock maintenance

5,889

14,025

14,025 - - -

14,025 0.0%

Total PW - Downtown Streetscaping

9,905

25,403

25,403 - -

14,500

39,903 57.1%


882,394

869,394

3,000

76,804

70,800

1,029,998 17.9%

Net Loss 736,121

808,634

795,634

(900)

76,804

70,800

952,338 19.4%

Remove Amortization

(142,766)

(134,300)

(134,300) - - -

(134,300) 0.0%

Net Levy 593,354

674,334

661,334

(900)

76,804

70,800

818,038 23.8%



2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Total Revenues

(176,176)

(186,600)

(186,600)

11,700 -

-

(174,900) -6.3%

Expenses Total Arena administration

46,939

64,050

64,050

3,000 -

-

67,050 4.7%

Total Unlicensed larger equipment

1,343

(800)

(800) - -

-

(800) 0.0%

Total Building 478,864

471,186

471,186

5,000

2,942

-

479,128 1.6%

Total Ice surface

90,658

91,100

91,100

5,400 -

-

96,500 6.0%

Total Equipment

97,944

36,800

36,800 - -

-

36,800 0.0%

Total Hall 40,040

37,700

37,700 - -

-

37,700 0.0%

Total Snack Bar 538 - - - -

- - 0.0%

Total Expenses

756,326

700,036

700,036

13,400

2,942

-

716,378 2.3%

Net Loss 580,150

513,436

513,436

25,100

2,942

-

541,478 5.3%

Remove Amortization

(174,060)

(172,700)

(172,700) - -

-

(172,700) 0.0%

Net Levy 406,090

340,736

340,736

25,100

2,942

-

368,778 7.8%


Charles W. Stockey Centre for the Performing Arts and Bobby Orr Hall of Fame

2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Revenues Total - Performance Hall

(119,169)

(152,000)

(152,000) -

(5,999) -

(157,999) 3.9%

Total - Performance Hall Rentals

(236,307)

(163,805)

(163,805) - - -

(163,805) 0.0%

Total - Rentals non ticket events

(41,671)

(45,700)

(45,700) - - -

(45,700) 0.0%

Total - Bobby Orr Hall of Fame

(171,804)

(128,000)

(128,000) - - -

(128,000) 0.0%

Total - Induction Ceremony

(17,500)

(39,500)

(39,500) - - -

(39,500) 0.0%

Total - Golf Classic Ceremony

(241,954)

(172,500)

(172,500) -

(10,000) -

(182,500) 7.3%

Total Concession and Catering Sales

(74,415)

(86,000)

(86,000) - - -

(86,000) 0.0%

Total - Box Office / Front of House

(4,562)

(2,800)

(2,800) - - -

(2,800) 0.0%

Total - Reserve Funds

(1,497)

(1,500)

(1,500) - - -

(1,500) 0.0%

Total - Other Fees and Charges

(149,244)

(148,900)

(148,900) -

(1,500) -

(150,400) 1.0%


2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Total Revenue

(1,058,124)

(940,705)

(940,705) -

(17,499) -

(958,204) 1.9%

Expenses Total - Administration

298,551

275,400

275,400

(11,000) -

9,400

273,800 -0.6%

Total - Performance Hall

385,889

318,000

318,000

2,999

(19,000) -

301,999 -4.8%

Total - Bobby Orr Hall of Fame

202,274

190,099

190,099

34,800 -

9,500

234,399 24.1%

Total - Box Office

42,996

41,700

41,700 - - -

41,700 0.0%

Total - Concessions

44,000

48,900

48,900 -

(3,000) -

45,900 -5.9%

Total - Marketing (Advertising and Promotions

52,207

46,084

46,084 - - -

46,084 0.0%

Total - Building Occupancy

441,902

434,122

434,122 -

(7,500) -

426,622 -1.7%

Total - Building Occupancy - - - - - - - 0.0% Total - Induction Ceremony

6,160

32,400

32,400 -

(1,200) -

31,200 -3.4%

Total - Golf Classic

88,494

81,500

81,500 -

(1,300) -

80,200 -1.9%

Total Expenses

1,562,474

1,468,205

1,468,205

26,799

(32,000)

18,900

1,481,904 0.9%


2017 2018 Total

Budget


Non-Controllable


Changes


% Budget Change

Net Loss 504,350

527,500

527,500

26,799

(49,499)

18,900

523,700 -0.7%

Ticket Surcharge - Old Capital

20,996

18,000

18,000 - - -

18,000 0.0%

Ticket Surcharge - New Capital

20,996

18,000

18,000 - - -

18,000 0.0%

Interest on Reserve Fund

1,497

1,500

1,500 - - -

1,500 0.0%

Amortization of Capital Assets

(314,161)

(311,200)

(311,200) - - -

(311,200) 0.0%

Net Levy 233,678

253,800

253,800

26,799

(49,499)

18,900

250,000 -1.4%


Development Services

2017 2018 Total

Budget

2016 Actual Total


Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Total Revenues (309,286.63)

(184,500.00)

(97,000.00)

-

(2,500.00)

(156,275.00)

(255,775.00) 86.9%

Expenses

Total Building inspection 179,851.38

211,288.00

211,288.00

2,187.52

(400.00)

(1,000.00)

212,075.52 0.4%

Total Planning -General 153,956.81

188,620.00

158,620.00

-

(2,000.00)

15,000.00

171,620.00 -11.7%

Total Committee of adjustments

2,486.80

8,240.00

8,240.00

-

-

-

8,240.00 0.0%

Total Planning and Building Expenses

336,294.99

408,148.00

378,148.00

2,187.52

(2,400.00)

14,000.00

391,935.52 -4.6%

Total Highway signs 10,402.28

11,420.00

11,420.00

-

-

1,000.00

12,420.00 8.8%

Total Industrial Park Board 13,393.00

13,260.00

13,260.00

-

-

-

13,260.00 0.0%

Total BIA 66,391.82

-

-

-

-

-

- 0.0%

Total Façade Program -

25,000.00

25,000.00

-

55,000.00

-

80,000.00 0.0%

Total Economic development misc.

179,976.13

261,895.00

218,700.00

5,100.00

31,600.00

58,000.00

313,400.00 27.4%

Total Community Business Development Corporation

12,500.00

12,500.00

12,500.00

-

-

-

12,500.00 0.0%

Total Area economic strategy 7,057.05

500.00

500.00

-

-

-

500.00 0.0%

Total Fitness Trail Master Plan 1,866.97

10,000.00

10,000.00

-

-

-

10,000.00 0.0%

Total FONOM Conference -

1,500.00

-

-

-

124,775.00

124,775.00 0.0%


2017 2018 Total

Budget

2016 Actual Total


Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Total 8-80 Cities Workshop 708.23

2,000.00

2,000.00

-

-

-

2,000.00 0.0%

Total Area economic strategy 1,000.00

1,000.00

-

-

-

-

- 0.0%

Total Business marketing 11,661.70

26,550.00

26,550.00

-

-

-

26,550.00 0.0%

Total Tourism marketing 12,248.38

30,500.00

25,500.00

-

-

40,000.00

65,500.00 137.3%

Total Cruise Ships 5,373.69

11,500.00

11,500.00

-

-

1,500.00

13,000.00 23.1%

Total Park to Park Trail 4,000.00

4,000.00

4,000.00

-

-

-

4,000.00 0.0%

Total Communications 9,904.31

12,000.00

12,000.00

-

-

-

12,000.00 0.0%

Total Web site related costs -

-

-

-

-

-

- 0.0%

Total Waterfront Advisory Committee

1,070.07

7,000.00

7,000.00

-

-

7,000.00

14,000.00 100.0%

Total Waterfront development 4,518.14

12,000.00

12,000.00

-

-

-

12,000.00 0.0%

Total Dragon boats 21.15

2,161.00

2,161.00

-

-

-

2,161.00 0.0%

Total Canada Day celebrations 22,876.47

80,000.00

22,305.00

1,000.00

-

-

23,305.00 -254.2%

Total BOHF triathalon 11,109.78

10,105.00

10,105.00

-

-

-

10,105.00 0.0%

Total Waterfront remediation costs

7,114.49

10,000.00

10,000.00

(2,000.00)

-

-

8,000.00 -25.0%

Total Smelter Wharf 30,364.69

14,975.97

14,975.97

951.32

-

-

15,927.29 3.6%

Total Economic Development Expenses

413,558.35

559,866.97

451,476.97

5,051.32

86,600.00

232,275.00

775,403.29 54.9%


2017 2018 Total

Budget

2016 Actual Total


Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Total Development Services 749,853.34

968,014.97

829,624.97

7,238.84

84,200.00

246,275.00

1,167,338.81 26.6%

Net Loss 440,566.71

783,514.97

732,624.97

7,238.84

81,700.00

90,000.00

911,563.81 19.2%

Remove Amortization (15,948.15)

(18,225.00)

(18,225.00)

-

-

-

(18,225.00) 0.0%

Net Levy 424,618.56

765,289.97

714,399.97

7,238.84

81,700.00

90,000.00

893,338.81


Capital Budgets The proposed 2018 Capital Budgets for Development and Leisure Services is:

Development and Leisure ServicesDevelopment Cost Current Year Taxes Federal Grant Reserves

Replace Town Dock lights and electrical services $ 40,000 $ 20,000 $ 20,000

Replace Town Dock roof (info centre and washrooms/shower) 20,200 - 20,200

Repair Big Sound Marina water service replacement 30,000 30,000 Total $ 90,200 $ 50,000 $ 20,000 $ 20,200

Development and Leisure Services Parks and Recreation Cost Current Year Taxes Debenture Reserves BOCC - Replace ice pad $ 1,126,400 $ - $ 1,126,400 $ -

Replace Mission Park playground equipment 32,000 7,000 - 25,000

Install lighting at Yvonne Williams Park (Dog Park) 2,000 2,000 Replace lighting at tennis courts 3,000 3,000

Replace lighting at Kinsmen Park (ice surface 9,000 9,000

Skate board park resurfacing and expansion (carried from 2017) 20,000 - 20,000 Total $ 1,192,400 $ 21,000 $ 1,126,400 $ 45,000


Development and Leisure Services Stockey Centre Cost Current Year Taxes Debenture Federal Grant Reserves

Replace exterior building sign $ 20,000 $ - $ 20,000

Replace roof (phase 2) and hardy board siding 1,411,050 - 680,325 730,725

Replace marquis sign 20,000 - 20,000

Replace HVAC unit 25,000 - 25,000

Create design for new gift shop / box office area 5,000 5,000 Total $ 1,481,050 $ 5,000 $ 680,325 $ 730,725 $ 65,000


Non-Tax Supported Activities

Water and Wastewater Services The Town of Parry Sound operates a water and wastewater system which is fully cost-recovered through user fees charged to customers.

Water

2017 2018 Total

Budget


Non-Controllable

Changes

Service Level

Changes


% Budget Change


(2,476,100)

(2,476,100) -

-

-

(2,476,100) 0.0%

Expenses Total Water administration

476,925

529,980

529,980 -

-

-

529,980 0.0%

Total Water retired employee costs

4,149

9,700

9,700 -

-

-

9,700 0.0%

Total Larger unlicensed equipment

39,289

23,000

23,000 -

-

-

23,000 0.0%


(20,265)

(24,650)

(24,650) -

-

-

(24,650) 0.0%

Total Small tools & equipment -

1,150

1,150 -

-

-

1,150 0.0%

Total Water filling station

819

6,300

6,300 -

1,000

-

7,300 16.7%

Total Booster pumping station

24,859

33,400

33,400 -

-

-

33,400 0.0%

Total Water towers/reserviors

120,013

134,800

134,800 -

-

-

134,800 0.0%

Total General equipment

3,711

19,100

19,100 -

-

-

19,100 0.0%


2017 2018 Total

Budget


Non-Controllable

Changes

Service Level

Changes


% Budget Change

Total Water mains (hydrants)

370,714

404,969

404,969

(5,688)

-

-

399,281 -1.4%

Total Laterals & services

69,831

134,000

134,000 -

-

-

134,000 0.0%

Total Water meters

20,737

31,200

31,200 -

-

-

31,200 0.0%

Total Water filtration plant

804,674

785,071

785,071

(10,906)

-

57,000

831,165 5.9%

Total Water Expenses

1,915,455

2,088,020

2,088,020

(16,594)

1,000

57,000

2,129,426 2.0%

Net (Surplus) Deficit

(573,097)

(388,080)

(388,080)

(16,594)

1,000

57,000

(346,674) -11.8%

Amortization included

(674,847)

(643,800)

(643,800) -

-

-

(643,800)


Wastewater 2017 2018


Non-Controllable


Changes



(3,018,600)

(3,018,600) - - -

(3,018,600)

Total Wastewater administration

428,993

446,449

446,449 - - -

446,449

Total Wastewater plant 1,437,216

1,537,017

1,437,017

(6,488) - -

1,430,529

Total Pumping stations 433,947

386,176

386,176 - - -

386,176

Total Interest on debt - Gibson Street

17,912

16,646

16,646

(1,549) - -

15,098

Total Interest on debt - River Forcemains

22,977

19,447

19,447

(576) - -

18,871

Total Interest on debt - Forrest St

7,502

16,503

16,503

(1,158) - -

15,345

Total unlicensed larger equipment

4,378 - - - - - -


5,324

(12,050)

(12,050) - - -

(12,050)

Total Small tools & equipment 464

1,900

1,900 - - -

1,900

Total Sanitary sewer maintenance

124,549

105,430

105,430 - -

50,000

155,430

Total Public washrooms 14,779

21,220

21,220 -

19,051 -

40,271

Total Amortization of capital assets

259,295

191,200

191,200 - - -

191,200

Total Wastewater Expenses

2,757,335

2,729,939

2,629,939

(9,771)

19,051

50,000

2,689,219

Net (Surplus) Deficit (108,805)

(288,661)

(388,661)

(9,771)

19,051

50,000

(329,381)

Amortization included (909,546)

(874,000)

(874,000) - - -

(874,000)


Water and Wastewater Capital

Public Works Water / Wastewater Cost Current Year Taxes Debenture Federal Grant Reserves Replace SPS 13 control panel $ 40,000 $ - $ 40,000 Replace WWTP windows 20,000 - 20,000 Replace SPS 10 wet well 20,000 - 20,000

Upgrade SPS 3 to accommodate increased flow 100,000 - 100,000 Replace SPS 9 (Prospect St) 300,000 - 300,000

Waubeek Street Reconstruction - Wastewater 2,773,384 - 1,067,000 637,490 1,068,894 Emily Street Reconstruction - Wastewater 1,369,314 - 1,351,405 17,909 Wastewater Capital 4,622,698 - 2,418,405 637,490 1,566,803 Replace rotork actuators $ 25,000 $ - $ 25,000 Replace CLA-VAL 25,000 - 25,000 Upgrade vacuum pumps to ejectors 30,000 - 30,000 Insulate gallery pumps 45,000 - 45,000 Upgrade WTP roof landscaping 5,000 - 5,000 Upgrade to SCADA hardware 100,000 - 100,000 Upgrade plant HVAC system 30,000 - 30,000 Waubeek Street Reconstruction - Water 2,289,287 - 880,000 526,216 883,071 Emily Street Reconstruction - Water 1,628,126 - 1,551,405 76,721 Kate Street Watermain 50,000 - 50,000 Water Capital 4,227,413 - 2,431,405 526,216 1,269,792 Total $ 8,850,111 $ - $ 4,849,810 $ 1,163,706 $ 2,836,595


Provincial Offences Act Court Services The Town operates the Provincial Offences Act Court for the District of Parry Sound. The net revenues for Provincial Offences Act Court are shared with 19 municipalities.

2017 2018 Total

Budget


Non-Controllable

Changes

Service Level

Changes


% Budget Change

Town's Revenue (98,452)

(122,300)

(122,300)

13,900

3,900

-

(104,500) -15.3%

Shared Revenue (1,163,292)

(1,352,600)

(1,352,600)

100,000 -

-

(1,252,600) -7.4%

Total Shared Expenses

1,164,851

1,352,600

1,352,600

(99,500)

(1,500)

1,000

1,252,600 -7.4%

POA Operational Levy

1,559 - -

500

(1,500)

1,000 - 0.0%


(2,200)

(2,200) - -

-

(2,200)


Land Ambulance Service – District of Parry Sound The Town operates the land ambulance service for the District of Parry Sound. Funding for the service is shared with the Province of Ontario, First Nations, unorganized municipalities and 22 organized municipalities in the District of Parry Sound.

2017 2018 Total

Budget

2016 Actual Total


Non-Controllable

Changes

Service Level

Changes


Total Budget

% Budget Change

Net Levy to the Town 238,825

237,600

237,600

(4,200)

-

-

233,400 -1.7%

Total Shared Revenues (8,317,725)

(8,491,449)

(8,491,449)

(118,500)

-

-

(8,609,949) 1.4%

Expenses Total Land Ambulance Area costs

8,191,148

8,491,450

8,491,450

60,600

(4,000)

-

8,548,050 0.7%

Total Paramedicine costs 72,099

-

-

-

-

-

- 0.0%

Total Shared Expenses 8,263,247

8,491,450

8,491,450

60,600

(4,000)

-

8,548,050 0.7%

Net Surplus for EMS and Paramedicine

(54,479)

1

1

(57,900)

(4,000)

-

(61,899) 619.1%


(355,100)

(355,100)

(54,900)

-

-

(410,000)


Capital Budget

Emergency Services Land Ambulance Cost Current Year Taxes Reserve Fund

Replace PRU 5321, Ambulances 5102 and 5163 $ 326,000 $ - $ 326,000

Leasehold improvements to Seguin Ambulance Base 25,000 - 25,000

Purchase of 10 Auto Pulse machines 180,000 - 180,000 Total $ 531,000 $ - $ 531,000




Asset Management and Long Term Planning The 2018 to 2027 Capital Investment Plan and Budget outlines the most critical capital needs of the Town as well as project costs. This plan is included in a separate document.

Asset Management at the Town of Parry Sound Municipally owned assets such as roads, wastewater treatment and collection systems, water treatment and distribution systems, facilities and fleet vehicles, support our community and are fundamental in the provision of municipal services. Municipally owned assets provide the platform for economic and social development, and contribute to a healthy and prosperous community.

All municipalities have performed some form of asset management; however, over the past four years formalizing asset management plans and the providing for the financial resources to implement these plans has become increasingly more important. For the year ended December 31, 2016 the Town was required, under the Federal Gas Tax Agreement with AMO, to have an asset management plan in place for all types of assets that fall under the Gas Tax eligibility criteria. For the Town, this means all assets, except for the fire department, are to be included.

The Town has already put into place an AMP for roads, bridges, water and wastewater which came into effect in 2013. A buildings condition report was conducted in 2014. In 2016, a revised Asset Management Plan was completed and approved by Council in January 2017. Council approved an annual 1.8% increase in taxes, in addition to regular inflation, specific for the asset management funding of the Town.

Starting with the 2016 budget a 20-year plan for fleet renewal and rolling equipment renewal was created with annual contributions to reserves to fund future purchases.

$- $500,000.00

$1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 $4,000,000.00 $4,500,000.00

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

Annual Capital Levy for the Year


Debt Management The Town’s Debt Management and Capital Financing Policy includes a legislated total annual debt repayment of 25% of its Net Revenues, as calculated by the Ministry of Municipal Affairs and Housing.

The following chart shows the ending balance on the Town’s debt from 2017 to 2021, including the proposed 2018 debenture (no debentures in 2019 or later are assumed in this table).

While the Town is ultimately responsible for the repayment of debt, some debt has been incurred for the purposes of the water and wastewater system. The Town’s water and wastewater debt is funded through the user fees. The following chart breaks out the Town’s

closing debt balance for the next 5 years based on if it is supported by the tax levy or user fees.

The Town’s debt is mainly “serial” debt, which is a fixed principal payment with varying interest payments.

$22,258,381 $20,784,612

$19,297,071 $18,130,626 $16,797,485

2018 2019 2020 2021 2022

Total Debt Ending Balance

Total Debt Ending Balance

$-

$5,000,000

$10,000,000

$15,000,000

2018 2019 2020 2021 2022

Closing Debt - Tax Supported vs User Fee Supported 2018 to 2022

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

2018 2019 2020 2021 2022

Debt Servicing Costs - 2018 to 2022


Since 2010, the Town has been paying off debt. New debt was issued in 2016 (from 2015 budget) and in late 2017 (2016 and 2017 projects) a debenture of $572,100 was issued (this was offset by $958,400 of payments during the year).

A debenture is proposed in 2018 for $9.2million.

The 2017 debenture included work completed at the Big Sound Marina, BOCC roof and the new public washrooms.

Staff have reviewed the previously approved priorities by Council to determine in the next ten years what debt is likely to be required.

The proposed new debt issues for 2018 will increase the Town’s debt servicing costs to just under $2.4 million per year, this is below our Annual Repayment Limit of $4.6 million. However, if all of the priority projects materialize in the shortest possible timeframe the Town will be looking at adding significant debt levels. The following chart shows the estimated debt servicing costs annually to 2051. This assumes the following:

• 2018 debenture (20 years, 3.18%)

o BOCC floor replacement,

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2006

2007

2008

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Total Long Term Debt

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2018 2019 2020 2021 2022

Town of Parry Sound Total Debt 2018 to 2022

(Debt Committed to tax year 2018)

Total Existing Debt Ending Balance New Debt Ending Balance


o Stockey Centre roof replacement o Emily Street reconstruction o Waubeek Street reconstruction

• 2021 debenture (20 years, 3.18%) for Great North Road reconstruction

• 2022 debentures for:

o Parry Sound Road Extension o Waterfront development o Champagne Street sewage pumping station

replacement

• 2023 debenture (20 years, 3.18%)

o Wastewater Treatment Plant expansion o Parry Sound Innovation Park o West Parry Sound Aquatic Centre (pool)

The above projects have all been identified as priorities by Council at both the 2016 and 2017 priority setting meetings. The only additional one is the wastewater treatment plant which may be required to be expanded to

meet the demand of the development related to the other priorities. As can be seen in 2023 the Town will exceed the legal limit to which it can borrow. Even with the 2022 debentures the Town will come close to the legal limit which provides little future flexibility to the Town on how it can fund infrastructure or respond to emergencies.

Although not currently in the Debt Management and Capital Financing policy, it is recommended that a target level for debt should be 10% of own source revenue (rather than the 25% legislated limit). While 10% should be the target, it may be exceeded temporarily provided there is a plan to bring the debt level back down to 10% within 5 years. The 2018 debenture is used to fund already committed infrastructure projects or critical infrastructure replacement, within the next five years the debt service levels will return to 10% which is a reasonable target.


-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

Projected Debt Servicing Costs 2018 to 2051Existing, New and Projected

Total Existing Debt Total New Debt

Total Projected Debt Annual Repayment Limit (25% of Net Revenues)

Repayment Limit at 10% of Net Revenues Repayment Limit at 15% of Net Revenues




Reserves and Reserve Funds The Town has created reserves and reserve funds which form a source of future funding for service delivery and capital investment.

Reserves The following table shows the balance of the Town’s reserves at the December 31, 2016 year-end (audited), projected ending balance for December 31, 2017 and a projected balance for December 31, 2018.

Item

Projected Opening Balance Jan 1,

2018 Internal Allocations Transfers In Per

2018 Budget Transfers Out Per

2018 Budget

Budgeted Ending Balance, December

31 2018 Bobby Orr Hall of Fame Reserve $ - $ - $ - $ - $ - Cemetery and Columbaria Reserve 22,745 - - - 22,745 Economic Development Reserve 41,459 - - - 41,459 Elections Reserve 15,000 - - (15,000) - Emergency Services Reserve 59,013 (16,078) - - 42,935 Facade Improvement Reserve 10,376 - - - 10,376 Health Unit Capital Reserve 14,428 - - - 14,428 Industrial Park Reserve 30,410 - - - 30,410 LACAC Directory Reserve 7,612 - - - 7,612 Planning Legal Reserve 20,000 - - - 20,000 Police Cost Stabilization Reserve 30,649 - - (30,600) 49 PS Power Promissory Note Reserve 72,436 (72,436) - - - Stockey Centre Reserve 148,294 - - (55,000) 93,294


Item

Projected Opening Balance Jan 1,

2018 Internal Allocations Transfers In Per

2018 Budget Transfers Out Per

2018 Budget


31 2018 Waste Management and Landfill Decommisioning Reserve 231,337 - 5,000 - 236,337 WSIB Reserve 106,002 - - - 106,002 Parks Reserve 201,368 - 25,000 (45,000) 181,368 Emergency Capital Asset Replacement Reserve 57,111 - 28,569 - 85,680 Infrastructure Replacement Reserve 668,792 72,436 - (210,000) 531,228 Equipment Replacement Reserve 208,171 16,078 161,310 (332,400) 53,159 Building Replacement Reserve 246,494 - 167,000 (105,200) 308,294 Fleet Replacement Reserve 551,299 - 439,114 (553,100) 437,313 IT Replacement Reserve 60,061 - 47,000 (45,100) 61,961 Tax Rate Stabilization Reserve 733,728 - 100,000 (176,900) 656,828 Salt Management Reserve 18,000 - - - 18,000 Winter Control Reserve 409,183 - - - 409,183 Wastewater Stabilization Reserve 2,379,149 - 1,085,189 (1,566,803) 1,897,535 Water Stabilization Reserve 3,767,008 - 525,118 (1,269,792) 3,022,334 General Working Capital Reserve 1,437,741 - - - 1,437,741

Total $ 11,547,866 $ 0.00 $ 2,583,301 $ (4,404,895) $ 9,726,272


Elections Reserve

Item Projected Opening Balance Jan 1, 2018

Internal Allocations

Transfers In Per 2018 Budget

Transfers Out Per 2018 Budget


31 2018

Municipal Elections $ 15,000 $ - $ - $ (15,000) $ -

$ 15,000 $ - $ - $ (15,000) $ -

As this is the year of an election there is a withdrawal to fund the operating expense of the election. Annually there is a $5,000 contribution (2015 to 2017).

Emergency Services Reserve

Item Projected Opening Balance Jan 1, 2018 Internal Allocations




31 2018 Fire Service Enhancements $ 9,131.96 $ - $ - $ 9,131.96 Emergency Planning 3,654.00 - - 3,654.00 911 Program 10,450.00 - - 10,450.00 Retaining Wall Replacement 19,530.38 - - 19,530.38 Fire Equipment 16,078.12 (16,078.12) - Police / Fire Complex 168.34 168.34

$ 59,012.80 $ (16,078.12) $ - $ - $ 42,934.68 Transfer is for fire equipment to the Equipment Replacement Reserve which is a capital replacement reserve.


Police Cost Stabilization Reserve






31 2018 Opening Balance $ 30,648.74 $ - $ - $ (30,600.00) $ 48.74

$ 30,648.74 $ - $ - $ (30,600.00) $ 48.74 Transfer from reserve is to fund one time adjustment for OPP cost related to 2015 and 2016 billing adjustments.

Stockey Centre Reserve





31 2018 Opening Balance $ 98,294 $ 50,000 $ - $ (55,000) $ 93,294

Phase II Roof Repair 50,000 (50,000) -

$ 148,294 $ - $ - $ (55,000) $ 93,294 2018 capital items funded from reserve include:

• Exterior sign $20,000 • HVAC replacement $25,000 • 50% of marquis sign $10,000


Waste Management and Landfill Decommissioning Reserve






31 2018 Waste Management General $ 8,491 $ - $ - $ 8,491 Dump Closure 213,069 - - 213,069 Decommisioning 9,778 - - 9,778 Compost Program - 5,000 - 5,000

$ 231,337 $ - $ 5,000 $ - $ 236,337 The contribution for 2018 will be towards the compost grinding costs every four years, this spreads the cost of the program over the years that the material is received rather than the year that the compost is ground.


Parks Reserve





Budgeted Ending Balance, December 31

2018 Parks General $ 38,626 $ - - $ 38,626 Forestry Tower & Park 5,647 - - 5,647 Y. Williams Park - - - - Skate Board Park 29,531 - (20,000) 9,531 General Waterfront 55,702 - - 55,702 Waterfront Advisory 2,506 - - 2,506 Kinsmen Park 20,000 - - 20,000 Trails Master Plan 1,856 - - 1,856 Waubuno Beach Washroom Repair - - - - Playground Equipment 25,000 25,000 $ (25,000) 25,000 Big Sound Marina 22,500 - 22,500

-

$ 201,368 $ 25,000 $ (45,000) $ 181,368

In 2018 an annual contribution of $25,000 will be used to fund park equipment replacement

Contributions from the reserve in 2018 include:

• Mission Park playground equipment $25,000 • Skateboard park resurfacing (2017) $20,000


Emergency Capital Asset Replacement Reserve






31 2018

Contingency 57,110.85 28,569.00 - 85,679.85

$ 57,110.85 $ 28,569.00 $ 85,679.85

Over the past several years this reserve has been depleted to fund unforeseen emergency capital asset replacement. In 2018, we are budgeting a contribution into this “contingency” fund to ensure that there are funds available in case there is an emergency situation.

Infrastructure Replacement Reserve

Item Projected Opening Balance

Jan 1, 2018 Internal Allocations




31 2018 Public Works General Reserve $ 2,885.89 $ - $ 2,885.89 Railway Crossings Reserve 125,077.38

- - 125,077.38

Traffic Study / Count Reserve 10,000.00

- - 10,000.00

Airport Future Capital 13,192.00 - - 13,192.00

Transportation Infrastructure Reserve 425,758.78

- (210,000.00) 215,758.78

Culvert Replacement 17,239.56 - - 17,239.56

Bridge Repairs 38,504.73 - - 38,504.73


Item Projected Opening Balance

Jan 1, 2018 Internal Allocations




31 2018 Unallocated - future needs 36,134.00 72,435.92

- 108,569.92

$ 668,792.34 $ 72,435.92 $ (210,000.00) $ 531,228.26 A reallocation from the PS Promissory Note Reserve is contemplated as there is no need for that reserve anymore.

Capital items funded in 2018 from the reserve include:

• Gibson / Logan’s Lane retaining wall $150,000 • 2017 traffic light control replacement $30,000 (item won’t be delivered until January 2018) • 2018 traffic light control replacement $30,000

Equipment Replacement Reserve





31 2018 Municipal Office and Equipment $ 24,677 $ - $ - $ - $ 24,677 BOCC Kitchen Equipment 1,795 (1,795) - - - Rolling Stock 20 Year Plan 56,275 - 75,310 (7,500) 124,085 Fire Services - Equipment Replacement 100,100 16,078 86,000 (324,900) (122,722) Unspecified 25,324 1,795 - 27,119

$ 208,171 $ 16,078 $ 161,310 $ (332,400) $ 53,159

Included is a transfer from the Emergency Services Reserve which relates to funding of capital fire equipment.


Starting in 2018 an annual contribution of $86,000 will be added to the Equipment Replacement Reserve to ensure funding is available for fire equipment (annual gear replacement, personal protective equipment, and the 10-year replacement of SCBA gear).

Capital items funded from the reserve in 2018 include:

• Self-Contained Breathing Apparatus $275,000 • Annual fire gear replacement $37,000 • Annual protective personal equipment $12,900 • Replacement blade for the trackless $7,500

Building Replacement Reserve





31 2018 Municipal Office Building $ 136,792 $ - $ - $ (50,000) $ 86,792 BOCC Building Reserves 62,230 - - - 62,230 Old Firehall 1,181 (1,181) - - - Natural Gas Facility Conversion 1,643 (1,643) - - - CNR Station 21,200 (21,200) - - - CP Station Roof Repair 8,698 - 8,698 Operations Shop - 167,000 - 167,000 Library Renovations 14,750 14,750 Unassigned - 24,024 - (55,200) (31,176)

$ 246,494 $ - $ 167,000 $ (105,200) $ 308,294

In 2018 it is contemplated to put $167,000 into the reserve for the future replacement of the salt shed at the operations yard. This item has been on the budget for a number of years however it will need to be replaced by 2020.


Capital items funded from the Building Replacement Reserve in 2018 include:

• Municipal office garbage room $20,000 • Operations Yard HVAC and hot water tank replacement $15,000 • Conversion of firehall to natural gas $20,000 • Renovation of front reception to improve customer service $30,000 • Town Dock roof replacement $20,200

Fleet Replacement Reserve






31 2018 Fleet Replacement Strategy $ 551,299 $ 439,114 $ (553,100) $ 437,313

$ 551,299 $ - $ 439,114 $ (553,100) $ 437,313 Annual contribution is based on 20 year plan.

2018 capital items include:

• Replace 07-730 sidewalk plow $165,200 • Replace vacuum truck $350,000 • Replace by-law vehicle $37,900


IT Replacement Reserve





31 2018 Finance Department - Software Replacement $ 3,549 $ - $ - $ 3,549 IT Operating - 7,000 7,000 GIS System 2,700 - - 2,700 IT Capital Requirements 49,812 40,000 - 45,100 44,712 MS Office Upgrade 4,000 - - 4,000

$ 60,061 $ - $ 47,000 $ (45,100) $ 61,961 Starting in 2018 there will be a stepped increase in the annual contribution to the IT replacement reserve.

Items funded in 2018 include:

• Replacement of council meeting devices (no longer supported) $11,700 • Annual replacement of laptops and desktops $10,200 • Replacement of networking infrastructure $23,200


Tax Rate Stabilization Reserve





31 2018 Tax Rate Stabilization - General $ 700,678.96 $ 100,000.00 $ (176,900.00) $ 623,778.96 Good Ideas 1,460.96 1,460.96 VIA Rail 1,000.00 1,000.00 Risk Watch Program 2,070.78 2,070.78 Building Department 28,517.00 28,517.00

$ 733,727.70 $ - $ 100,000.00 $ (176,900.00) $ 656,827.70 Included in the budget is a contribution to the Tax Rate Stabilization reserve of $100,000. This represents a “contingency” for unexpected items which may occur that Council sees as a priority to complete in 2018. In the past we have been using this reserve without replenishing it, this is a replenishment of the reserve.

2018 items funded from the reserve include:

• CAO recruitment $25,000 • Treasurer recruitment $25,000 • Phase in of org changes $51,900 • Bridge needs study $65,000 • Mutual aid HAZMAT $10,000


Wastewater Stabilization Reserve






2018 Opening Balance $ 2,379,149 $ - $ 1,085,189 $ (1,566,803) $ 1,897,535

$ 2,379,149 $ - $ 1,085,189 $ (1,566,803) $ 1,897,535 Contribution in 2018 relates to the operating surplus for wastewater.

Capital items funded by reserves in 2018 include:

• Replace SPS 13 control panel $40,000 • Replace plant windows $20,000 • Replace SPS 10 wet well $20,000 • Upgrade SPS 3 for increased flow $100,000 • Replace SPS 9 (Prospect St) $300,000 • Waubeek St reconstruction $1,068,894 • Emily St reconstruction $17,909

Water Stabilization Reserve






2018 Opening Balance $ 3,767,008 $ - $ 525,118 $ (1,269,792) $ 3,022,334

$ 3,767,008 $ - $ 525,118 $ (1,269,792) $ 3,022,334 Contribution in 2018 relates to the operating surplus for water

Capital items funded by reserves in 2018 include:

• Replace rotork actuators $25,000 • Replace CLA-VAL $25,000 • Upgrade vacuum pumps to ejectors $30,000


• Insulate gallery pumps $45,000 • Upgrade roof landscaping $5,000 • Upgrade SCADA software $100,000 • Upgrade plant HVAC system $30,000 • Waubeek St reconstruction $883,071 • Emily St reconstruction $76,721 • Kate St watermain $50,000


Reserve Funds The following table shows the balance of the Town’s reserve funds for the budgeted ending balance for December 31, 2017 and a projected balance for December 31, 2018.

Reserve Fund Balances by Fund

Reserve Fund Projected Opening Balance

- January 1, 2018 Interest Earned Transfer In Transfers Out

Budgeted Ending Balance - December 31, 2018

Capital Asset Legacy Reserve Fund $ 527,328 $ 2,500 $ 120,234 $ - $ 650,062 Capital Replacement Reserve Fund 291,396 500 - - 291,896 Lot Levy Reserve Fund 86,331 - - - 86,331 Development Charges Reserve Fund 17,939 225 - - 18,164 Waterworks Reserve Fund 96,063 650 - - 96,713 Municipal Property / Parkland Reserve Fund 121,540 - - - 121,540 Parking Reserve Fund 93,352 4,000 - - 97,352 Sewer Development Reserve Fund 92,022 600 - - 92,622 Pool Trust Reserve Fund 44,968 380 - - 45,348 EMS Severance Reserve Fund 547,324 5,500 - - 552,824 Fire Training Reserve Fund 7,621 70 - (7,691) - West Parry Sound Association Reserve Fund 1,414 - - - 1,414


Reserve Fund Projected Opening Balance

- January 1, 2018 Interest Earned Transfer In Transfers Out

Budgeted Ending Balance - December 31, 2018

EMS Surplus Reserve Fund 1,111,532 9,100 - - 1,120,632 EMS Equipment / Capital Reserve Fund 346,398 3,900 410,000 (531,000) 229,298 Smelter Wharf 323,839 1,900 - - 325,739 Bobby Orr Hall of Fame Reserve Fund 144,920 1,500 - - 146,420 Treetops Reserve Fund 2,723 - - - 2,723 Public Transit Gas Tax Reserve Fund 36,855 500 - - 37,355 Bobby Orr Hall of Fame Special Projects Reserve Fund 233,714 3,500 - (10,000) 227,214 Total $ 4,127,281 $ 34,825 $ 530,234 $ (548,691) $ 4,143,648

The contribution to the Capital Asset Legacy Reserve Fund relates to repayment of the LED conversion program.

Use of the Fire Training Reserve Fund represents a contribution to the area fire training facility in Carling to occur in 2018.

EMS Equipment Reserve Fund is funded through amortization and withdrawals relate to the 2018 capital purchases.

Bobby Orr Hall of Fame Special Projects Reserve Fund will fund 50% of the replacement of the marquis sign in 2018.


Reserve Fund Balances by Purpose It should be noted that not all funds held in Reserve Funds are available for Town purposes. The Town, through agreements or legislation, is required to keep certain reserve funds for restricted purposes. Discretionary reserve funds may be repurposed by

Council, in accordance with the Reserve and Reserve Fund Policy. The following table breaks out the total reserve funds showing the Town discretionary, water and wastewater system, land ambulance service, legislated, and third party funds, separately.

Beneficiary Opening Balance Interest Earned Transfer In Transfer Out December 31, 2015

Town Discretionary Purposes $ 1,267,331 $ 10,500 $ 120,234 $ (10,000) $ 1,388,064 Water and Wastewater Purposes 188,085 1,250 - - 189,335 Land Ambulance Purposes 2,005,254 18,500 410,000 (531,000) 1,902,754 Lot Levy and Development Charges 104,270 225 - - 104,495 Third Parties 562,341 4,350 - (7,691) 559,000 Total $ 4,127,281 $ 34,825 $ 530,234 $ (548,691) $ 4,143,648




Supplemental InformationThe following supplemental information provides additional information that may be useful to stakeholders.

Financial Policies The Town of Parry Sound has approved several financial policies with the intent to provide consistency with how financial decisions are made. The major financial policies adopted by Council include:

Budget and Financial Control The budget outlines the service delivery and capital investment plans for the upcoming year. The proposed budget is balanced with revenues equaling expenses for the year and is tabled before Council for its review and adoption.

The policy provides a target range for tax increases based on the Consumer Price Index and negotiated wage increases. For the year 2017, the target tax increase is between 1.5% and 3.0%.

Operating Surplus and Deficit The budget is a document based on estimated revenues and expenditures that the Town will achieve, it is a plan to provide service and invest in capital assets. At the end of the year there is often a difference between what happened and what the plan was at the beginning of the year. Any surplus represents a one-time, non-recurring, source of revenue that can be used to increase reserves and reserve funds for future funding needs.

The Town has adopted a policy to apply surplus and deficit at the end of the year to reserves and reserve funds. This is a way to organically invest in reserves and reserve funds and build them for future use. The surplus is allocated as follows:

• 30% to the Tax Rate Stabilization Reserve • 30% to the Capital Replacement Reserve Fund • 10% to the Emergency Capital Asset Replacement

Reserve • The remaining amount to be at the discretion of

the Director of Finance and approved by Council

The application of deficits is similar, with any deficits first funded by the Tax Rate Stabilization Reserve.

Procurement and Purchasing The Procurement and Purchasing By-law provides a system for the procurement of goods and services for the Town. It outlines the responsibilities and authorities for purchasing goods and services. It also outlines when certain procurement processes (Request for Proposal, Request for Tender, Request for Quotation, etc.) are required based on the type of purchase as well as the dollar value of the purchase.

Capital Financing and Debt Management The Capital Financing and Debt Management establishes objectives, standards of care, authorized financing instruments, reporting requirements and responsibilities


for the prudent financing of the Town’s operating and infrastructure needs.

Capital financing and debenture practices will be responsive and fair to the needs of both current and future ratepayers and will be reflective of the underlying life cycle and nature of the expenditure. Any debt taken on will not exceed 40 years, and will not be any shorter than the useful life of the asset purchased. The Town is also restricted to the legislated Annual Repayment Limit.

The policy restricts using debt financing for rolling-stock, except for leasing vehicles, or for assets which have useful lives less than 10 years.

Reserve and Reserve Fund The Town has established consistent principles, standards and guidelines for the maintenance, management and accounting of reserves and reserve funds. The primary purpose for reserves and reserve funds is:

• Adherence to statutory requirements; • Promotion of financial stability and flexibility; • Provision for major capital expenditures; • Smooth expenditures which would otherwise

cause fluctuation in the Operating Budget; and • To take advantage of financial opportunities that

may arise.

Reserves will be maintained to meet one of the following purposes:

• Asset Replacement – smooth spikes in capital budgets and property tax changes;

• Project Reserves – provide self borrowing mechanisms to reduce risks associated with interest rate fluctuations;

• Economic Stability Reserves – buffer against fluctuations in the economy;

• Contingency Reserves – established to accommodate contingent, unfunded or known liabilities for current and/or future years;

• Working Fund Reserves – established to provide cash flow for operations and to eliminate the requirement to borrow funds for immediate needs;

• Self Insurance Reserves – established to provide self insurance provisions.

Reserves will be established through resolution of Council or through the budget process. A Reserve Fund is established through by-law which clearly indicates the purpose of the reserve fund. A Reserve Fund shall earn interest.

Investment This policy establishes guidelines for municipal investments and to ensure compliance with applicable legislation. The Treasurer reports to Council on an annual basis the Town’s adherence with this policy.

The objectives of this policy are to ensure:

• Adherence to statutory requirements; • Preservation and security of capital;


• Maintenance of necessary liquidity; and • Realizing a competitive rate of return.

The investment portfolio shall remain sufficiently liquid to meet all operating or cash flow requirements and limit temporary borrowing requirements. The Town’s investments currently primarily consist of interest-bearing bank accounts held a Canadian chartered bank.

Payables and Payments To ensure control over payments and payables, the Town has approved the Accounts Payable and Payment Policy to establish the responsibilities, controls, authorizations, and procedures for the accurate and timely payment of invoices and cheque requisitions processed by Accounts Payable.

The Town has approved the use of Electronic Funds Transfer as an acceptable form of payment and will be transitioning to the use of EFT for payables to reduce fraud risk, reduce mailing costs, and improve the timeliness of payments.

Donations As a municipality, the Town of Parry Sound is a qualified donee for Canadian income tax purposes. The Town can issue “official income tax receipts” as prescribed by the Canada Revenue Agency (CRA). To be a donation there must be an intention to give, a delivery and an acceptance and it must be voluntary with no expectation of return.

Donations that qualify for an official tax receipt generally include:

• Cash; • Capital, real or depreciable property; • Personal-use property, works of art, jewellery, rare

books, stamps or coins; • A leasehold interest or residual interest in a real

property; • Donations of life insurance properties; and • Donations made under a will.

The following items are not qualified donations per the policy:

• Contributions of skill or time; • Payment of a basic fee for admission to an event; • When the donor requests that the Town pay for a

portion of the donation; • When a donor has directed the funds to a specific

person or family; • Donations that have a direct benefit to the donor

or a relative of the donor; • Donations made in exchange for consideration of

a right, privilege, material benefit such as promotion or advertising;

Where the donor’s company name, logo, slogan, address is listed in promotional material would not qualify.


Acronyms Acronyms are listed alphabetically.

AGCO Alcohol and Gaming Commission of Ontario

AODA Accessibility for Ontarians with Disabilities Act

AMCTO The Association of Municipal Managers, Clerks and Treasurers of Ontario

AMO Association of Municipalities of Ontario

AMP Asset Management Plan

CAO Chief Administrative Officer

COMRIF Canada-Ontario Municipal Rural Infrastructure Fund

CVA Current Value Assessment

DWQMS Drinking Water Quality Management Standard

GFOA Government Finance Officers Association

GIS Geographic Information Systems

HR Human Resources

HVAC Heating, Ventilating and Air Conditioning

IT Information Technology

MAG Ministry of the Attorney General

MPAC The Municipal Property Assessment Corporation

MTO Ministry of Transportation

NFPA National Fire Protection Association

OCWA Ontario Clean Water Association

ODSP Ontario Disability Support Program

OFM Ontario Fire Marshall

OPP Ontario Provincial Police

ORFA Ontario Recreation Facilities Association


PSFA Parry Sound Firefighters Association

RFP Request for Proposal

RFT Request for Tender

SCBA Self-Contained Breathing Apparatus

WTP Water Treatment Plant

WWTP Wastewater Treatment Plant


Glossary of Terms The glossary of terms is listed alphabetically.

Accrual Basis of Accounting A method of Accounting that recognizes revenue as earned and expenditures as incurred rather than waiting for the exchange of cash.

Actual Actual (as opposed to budgeted) revenues and expenditures for the fiscal year indicated.

Amortization The gradual reduction of the value of an asset, or a liability, by some periodic amount. In the case of an asset, it involves expensing the cost of the asset over its “useful life” (the period over which it can be used by the Town).

Assessment MPAC is responsible for placing an assessment value on all properties in Ontario. A CVA of a property represents an estimated market value, or the amount the property would sell for in an arms length and open market sale between a willing seller and willing buyer.

Base Budget The budget required to maintain service levels at the same level provided in the previous year. The base budget considers the annualized costs to provide the service level.

Budget A financial plan for the Town’s fiscal year, January 1 to December 31. The budget includes revenues and expenditures for operations, as well as financing sources for capital investment.

Business Improvement Area (BIA) A Business Improvement Area is an association of business people within a specified district as approved through By-law of Council.

Canadian Union of Public Employees (CUPE) An association formed for protecting the rights of its members, usually employees in the public sector.

Capital Investment Budget The Budget that provides for the funding of the Town’s expenditures on capital assets, i.e. assets which provide benefits to the Town over several years.

Consumer Price Index (CPI) An index used as a measure of the increase in the cost of living (i.e. economic inflation) as measured by Statistics Canada.

Cost Centre An organization unit with a specific strategic focus and the authority to expend corporate resources to deliver an internal or external service.

Current Value Assessment Property value set upon real estate under direction of the Province as a basis for levying property taxes.


Debenture A formal written obligation to repay specific sums on certain dates. Debentures will typically be unsecured in the case of municipalities.

Debt Any obligation for the payment of money. Debt will normally consist of debentures as well as either notes or cash loans from financial institutions but could also include loans from reserves.

Deferral The act of putting off until another time, or postponing.

Deficit The excess of liabilities over assets, or expenditures over revenues, in a fund over an accounting period.

Expenditure The disbursement of appropriated funds to purchase goods and/or services. Expenditures include current operating expenses that require the current or future use of net current assets, debt service, and capital outlays.

Fiscal Year Any period of 12 consecutive months designated as the budget year. The Town’s budget year, as required by the Municipal Act, begins on January 1st and ends December 31st.

Fleet The vehicles owned and operated in the Town.

Forecast The projection of revenues and expenditures for future years.

Full-Time Equivalent (FTE) A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. FTE considers the number of hours per week and the portion of the year the position is funded. FTE = (hours worked per week/total weekly hours) x (months funded/12). A year-round full-time position has an FTE of 1.00, whereas a full-time position funded for six months has an FTE of 0.5.

Fund A set of interrelated accounts to record revenues, and expenditures associated with a specific purpose. A fund has its own revenues, expenditures, assets, liabilities and equity (fund balance).

Fund Balance A term used to express the equity (assets minus liabilities) of governmental fund types and trust funds. A fund balance is the excess of cumulative revenues and other sources of funds over cumulative expenditures and other uses of funds.

Gas Tax Rebate Funding provided by the Government of Canada, through agreement with the Association of Municipalities of Ontario.


Generally Accepted Accounting Principles (GAAP) Uniform principles, standards and guidelines for financial accounting and reporting, governing the form and content of many financial statements of an entity, as set out by Chartered Professional Accountants Canada. GAAP encompasses the conventions, rules, and procedures that define accepted accounting principles at a time, including both broad guidelines and detailed practices and procedures.

Grant A monetary contribution, typically from one level of government to another, to lend support to a specific service, program or function. A grant is not expected to be repaid.

Inflation A rise in price levels caused by general economic activity and growth.

Infrastructure The system of public works in the Town, consisting of immovable physical assets, that delivers an essential public service (e.g. road network, water and sewer systems, and lighting).

Interest Income Revenue associated with the Town’s cash management activities of investing cash balances.

Levy The amount of property tax, in Canadian dollars, which is paid by the taxpayers of the Town. To determine the tax

levy for a property, the property’s assessment value is multiplied by the appropriate rate for the property’s tax class.

Liability A financial obligation of the Town to others.

Local Authority Services (LAS) Local Authority Services is mandated to work with municipalities to assist them in reducing the cost of their expenditures and to increase their revenues through the principles of economies-of-scale and co-operative procurement efforts.

Long-term Debt Debt that matures more than one year after it is issued.

Municipal Act Passed by the legislature in December 2001, the Act is gives municipalities their legal powers and responsibilities.

Official Plan A document adopted by a municipal council pursuant to the Planning Act that contains goals, objectives and policies to manage and direct physical change in the municipality. Official Plans are generally set for a planning period of 20 years and must be renewed and updated every five years.

One-Time Item An item only approved for the current fiscal year.


Ontario Municipal Board (OMB) A provincial board that provides a forum to appeal planning and assessment decisions made by the Town.

Ontario Municipal Employee Retirement Systems (OMERS) OMERS is a defined benefit plan that provides pension benefits for the Town’s full-time employees. Employees and employers (i.e. the Town) normally make equal contributions to the plan.

Per Capita A measurement of the proportion of some statistic to an individual resident determined by dividing the statistic by the current population (the 2011 Census data by Statistics Canada).

Property Tax A value-based tax levied on real and personal property per the property’s assessed valuation and the tax rate.

Provincial Dedicated Gas Tax Provincial gas tax funding provided to municipalities for public transportation expenditures.

Public Sector Accounting Board (PSAB) The body of Chartered Professional Accountants Canada (CPA Canada) that issues standards and recommendations with respect of accounting in the public sector.

Reserve An allocation of accumulated net revenue that is established by Council for a purpose. It has no reference

to any specific asset and does not require the physical segregation of money or assets as in the case of a reserve fund. Any interest earned on the investment of reserves is reported in the operations of the Town’s General Fund and not in the specific reserve.

Reserve Fund An allocation of accumulated net revenue, like a reserve. It differs from a reserve in that its assets are segregated and restricted to meet a specific purpose. There are two types of reserve funds. Obligatory reserve funds are required under provincial statute, while discretionary reserve funds are created by Council for a specified future use.

Revenue Funds received from all sources (with exception of fund balances) that will be used to fund expenditures in a fiscal year.

Service Delivery Budget The budget that provides the various departments with funding for their annual recurring operating costs (e.g. salaries, materials and supplies, contracted services, utilities) to provide service to the residents of the Town. Compared to the capital budget, items funded in the operating budget, items funded in the operating budget do not give rise to assets that are expected to provide benefits over several years.


Stakeholders The person, group or organization that has direct or indirect stake in the Town because it can affect or be affected by the Town’s actions, objectives and policies.

Surplus The excess of actual revenue over operating expenditures incurred during a budget period.

Tangible Capital Asset (TCA) Non-financial assets that have a lifespan that extends beyond an accounting period and is used on a continual basis by the Town. Also, known as “fixed assets”.

Tax Rate A percentage rate that is used to determine the property tax levy to be paid by a taxpayer within the Town. The rate for a property depends on the type of property (residential, commercial, industrial, etc.). The rate is multiplied by the assessment to provide the tax levy. Rates are established via Council By-law.

User Fees & Service Charges Fees paid by individuals or organizations to the Town for the use of Town facilities (e.g. recreation fees) or the provision of municipal services (e.g. planning).

Vital Statistics Act Responsible for matters such as maintenance of the municipal birth and death registry and issuance of death and burial certificates.

Documents

Staff Proposed Municipal Budget Fiscal Year 2018 - Parry Sound...The Town’s Budget and Financial Control Policy provides a guideline for the tax increase in any given year. For 2017