Date: November 16, 2016Presented by: Jeff Schmidt, CPA, CGA, BAS
Director of Finance
Draft2017
Budget
Agenda2017 Consolidated Budget 2017 Draft Tax Supported Operating BudgetNew Initiatives in 2017 (Program Changes)2017 Draft Capital Budget & Six Year Capital Plan2017 Draft Water & Wastewater Operating BudgetsBudget Timelines Items for Council’s Consideration
2
3
2017Consolidated
Budget
2017 Budget At a Glance
4
Tax Supported Operating Budget
$Millions
Gross Expenditures $16.9
Gross Revenues $16.7
Net Levy Requirement $0.2
Proposed Tax LevyIncrease (Township)
2.03%
Capital Budget
$Millions
Six Year Plan $74.0
2017 Capital Budget $10.4
Proposed Funding from Taxation –2017
$0.9
Blended Tax Levy Increase 1.56% or $52
2017 Budget At a Glance
5
Water Rate Supported Operating Budget
$Millions
Gross Expenditures $2.1
Gross Revenues $2.8
Transfer to/(from) Reserve Fund $0.7
Wastewater Rate Supported Operating Budget
$Millions
Gross Expenditures $1.5
Gross Revenues $1.4
Transfer to/(from) Reserve Fund ($0.1)
6
2017Draft
Tax SupportedOperating
Budget
Draft Tax SupportedOperating Budget
7
2016Budget
2017Budget
Gross Expenditures $16,393,643 $16,972,210
Gross Revenues (net of levy requirement) 16,143,612 16,771,999
Surplus/(Deficit) ($250,031) ($200,211)
Net Tax Levy Increase 2.64% 2.03%
Breakdown of Net Tax Levy Impact
8
Amount %
Township Net Tax Levy (excluding assessment growth) $142.901 1.45
Add: Assessment growth (estimated) (156,379) (1.58)
2017 Net Tax Levy (including assessment growth) ($13,478) (0.14)
Add: Year 2 Phase out of Streetlight Charge 99,545 1.01
Add: 1% Capital Infrastructure 98,853 1.00
2017 Net Tax Levy (Township only) $184,921 1.88
Breakdown of Net Tax Levy Impact
9
Amount %
2017 Net Tax Levy (Township Only) 184,921 1.88
Add: Library levy increase 2,326 0.02
Add: Nottawasaga Valley Conservation Authority (NVCA) 12,091 0.12
Add: Severn Sound Environmental Association 873 0.01
2017 Net Tax Levy (including Service Partners) $200,211 2.03
Policing Charge
10
All properties in the Township are currently charged a policing charge on their property tax bill
$216 per property (except farmland properties)$108 per farmland property
No changes are being proposed in 2017 to the policing charge
2017 Policing Charge is to be 100% flow through to the property owner
Streetlight Charge
11
2015 streetlight charge was $48 per benefitting property.
2016 streetlight charge is proposed to be reduced to $24 per benefitting property.
2017 streetlight charge is proposed to be eliminated.
Impact on Average Residential Property
12
2016 2017 Increase$
Increase%
Township of Springwater Portion $1,397.00 $1,425.29 $28.29 2.03
County of Simcoe Portion 1,207.75 1,231.91 24.16 2.00
Education Portion 759.52 759.52 - -
Total Property Taxes $3,364.27 $3,416.72 $52.45 1.56
Policing Charge 216.00 216.00 - -
Streetlight Charge 24.00 - (24.00) (100.0)
Total Tax Bill $3,604.27 $3,632.72 $28.45 0.79
Figures above assume same assessment for each year and no program changesAverage Residential Assessment (MPAC) - $404,000Median Residential Assessment (MPAC) - $358,000
Historical View ofTax Increases
13
2014 2015 2016 2017 Proposed
Springwater Net Tax Levy Increase 2.02 0.81 2.64 2.03
Blended Tax Increase(includes County & Education) 1.52 0.71 1.16 1.56
Consumer Price Index (Toronto) 3.4 1.8 2.7 n/a
14
New Initiativesin 2017
(Program Changes)
CouncilProgram Changes/New Initiatives
15
Program Change GrossExp. Revenues
Net Tax Impact
$
Net TaxImpact
%Cell Phones $4,980 - $4,980 0.05
Training & Conferences 11,250 - 11,250 0.11
Total $16,230 - $16,230 0.16
StaffProgram Changes/New Initiatives
16
Program Change GrossExp. Revenues
Net Tax Impact
$
Net TaxImpact
%Tax/Utility Coordinator $19,587 - $19,587 0.20
Junior Planner 55,904 13,826 42,078 0.43
RPP Summer Student 10,969 - 10,969 0.11
Staff Leadership Training 20,000 - 20,000 0.20
Wage Survey/Analysis 5,000 5,000 - -
CCTV Inspections 29,000 - 29,000 0.29
StaffProgram Changes/New Initiatives
17
Program Change GrossExp. Revenues
Net Tax Impact
$
Net TaxImpact
%Traffic Calming $10,000 - $10,000 0.10
Canada 150 Celebration $30,000 $30,000 - -
Total $180,460 $48,826 $131,634 1.33
LibraryProgram Changes/New Initiatives
18
Program Change GrossExp. Revenues
Net Tax Impact
$
Net TaxImpact
%Library Technician – 1 $160,246 - $160,246 1.62
TotalProgram Changes/New Initiatives
19
Program Change GrossExp. Revenues
Net Tax Impact
$
Net TaxImpact
%Council $16,230 - $16,230 0.16
Staff 180,460 48,826 131,634 1.33
Library 160,246 - 160,246 1.62
Grand Total $356,936 $48,826 $308,110 3.12
Impact on Average Residential Property
20
2016 2017 Increase$
Increase%
Township of Springwater Portion $1,397.00 $1,468.84 $71.84 5.14
County of Simcoe Portion 1,207.75 1,231.91 24.16 2.00
Education Portion 759.52 759.52 - -
Total Property Taxes $3,364.27 $3,460.27 $96.00 2.85
Policing Charge 216.00 216.00 - -
Streetlight Charge 24.00 - (24.00) (100.0)
Total Tax Bill $3,604.27 $3,676.27 $72.00 1.99Figures above assume same assessment for each year and include all program changesAverage Residential Assessment (MPAC) - $404,000Median Residential Assessment (MPAC) - $358,000
21
2017 DraftCapital Budget
&Six Year Plan
2017 Draft Capital Budget
22
Municipal Buildings$950,000
Fleet & Equipment$1,600,000
Roads & Related Infrastructure
$3,049,100 Water Infrastructure
$650,000
Wastewater Infrastructure
$2,400,000
Parks & Recreation$1,427,500
Information Technology$284,000
Gross Expenditures - $10.36M
2017 Draft Capital Budget
23
Taxation$883,387
Reserves$2,015,500
Wastewater Reserve Fund
$200,000
Water Reserve Fund$690,000
Parkland Reserve Fund$105,000
Development Charges$3,310,500
Gas Tax$413,000
Grants$354,713
Contribution$7,500
Debt$2,381,000
Sources of Funding - $10.36M
Key Projects for 2017
24
ProjectGross
Expenditure
Elmvale Lift Station $2,200,000
Phelpston Road – Phase 1 – Flos Rd 4W to St. Patrick’s Way 1,014,000
Fire Stn 2 – New and/or Temporary Building 800,000Elmvale Arena – Addition to include accessible washrooms, Hall of Fame (Dependent on Grant) 750,000
Yonge Street South – Train Ave N to Queen Street 700,000
Tanker/Rescue Truck (T25) – moved from 2019 525,000
St. Patrick’s Subdivision – First Phase 500,000
25
DraftSix Year
Capital Plan
Draft Six Year Capital Plan
26
Municipal Buildings$35,432,450
Fleet & Equipment$4,607,500
Roads & Related Infrastructure$22,306,900
Water Infrastructure$1,600,000 Wastewater
Infrastructure$5,365,000 Parks & Recreation
$4,267,500
Information Technology $428,000
Gross Expenditures - $74.0M
Draft Six Year Capital Plan
27
Taxation$6,103,505
Reserves$3,462,000
Wastewater Reserve Fund$3,025,000
Water Reserve Fund$1,640,000
Parkland Reserve Fund $465,000
Development Charges$7,532,500
Gas Tax$3,171,180
Grants$3,882,375
Contribution$167,500
Debt$44,558,290
Sources of Funding - $74.0M
28
2017Draft
Water & WastewaterOperating Budgets
2017 Water & Wastewater Operating Budgets
29
Water Rate Supported Operating Budget
$Millions
Gross Expenditures $2.1
Gross Revenues $2.8
Transfer to/(from) Reserve Fund $0.7
Wastewater Rate Supported Operating Budget
$Millions
Gross Expenditures $1.5
Gross Revenues $1.4
Transfer to/(from) Reserve Fund ($0.1)
Impact on Typical Residential User
30
2016 2017 Increase$
Increase%
Water (Base + Volume) $612.12 $633.54 $21.42 3.5%
Wastewater (Base + Volume) 823.92 848.58 24.66 3.0%
Total Water & Wastewater $1,436.04 $1,482.12 $46.08 3.2%
Total per month $119.67 $123.51 $3.84 3.2%
Average residential user consumes 240 m3 per year
31
BudgetTimelines
Budget Timelines November 16, 2016 (Regular Council Meeting):
Draft 2017 Consolidated Budget officially tabled
December 6, 2016 (Special Council Meeting) Budget Deliberation Meeting #1
December 7, 2016 (Special Council Meeting):Budget Deliberation Meeting #2
January 25, 2017 (Special Council Meeting):Adoption of 2017 Consolidated Budget
32
33
Itemsfor
Council’sConsideration
Items for Council’s Consideration
34
THAT the draft 2017 Tax Based Operating Budget as presented, be referred to the December 6 & 7 Special Meetings of Council for deliberation and consideration;
THAT the draft 2017 Water Operating Budget as presented, be referred to the December 6 & 7 Special Meetings of Council for deliberation and consideration;
THAT the draft 2017 Wastewater Operating Budget as presented, be referred to the December 6 & 7 Special Meetings of Council for deliberation and consideration;
Items for Council’s Consideration
35
THAT the draft 2017 Capital Budget as presented, be referred to the December 6 & 7 Special Meetings of Council for deliberation and consideration;
THAT the rate adjustment for the Township’s 2017 Water and Wastewater Rates be referred to the January 25, 2017 Special Council meeting for approval and the necessary By-law be enacted;
THAT the streetlight charge for benefitting properties be reduced to $0; and
THAT the 2017 policing charge for benefitting properties remain at $216 and $108 respectively