Special Meeting of Council for Budget Purposes Budget Presentation March 10, 2009

Overview Budget Meeting Objectives Finance Committee Report Impacts Budget Challenges Financial Planning Strategies to Date Total Budget Summary Sheet Major Cost Drivers Budget Shortfall – Selected Functions Property Tax Per Capita Comparison Contribution to Capital Budget Summaries Detail Staff Items for Discussion with Council Next Steps

Budget Meeting Objectives

Finance Committee Report Impacts

Budget Challenges

Financial Planning Strategies to Date

Total Budget Summary Sheet

Major Cost Drivers

Budget Shortfall – Selected Functions

Property Tax Per Capita Comparison

Contribution to Capital

Budget Summaries Detail

Staff Items for Discussion with Council

Next Steps

Budget Meeting Objective Brief review of financial impacts from the Finance Committee’s report Continue Budget Discussions with Council focusing on the Capital Program priorities Review the 2009 projects within the $6,110 million funding level – Version 3 & 4 Review the 2009 projects within the $9,346 million funding level – Version 1 Review the 2009 projects which are below the $9,346 million funding level. Discuss Revenue Enhancement options

Brief review of financial impacts from the Finance Committee’s report

Continue Budget Discussions with Council focusing on the Capital Program priorities

Review the 2009 projects within the $6,110 million funding level – Version 3 & 4

Review the 2009 projects within the $9,346 million funding level – Version 1

Review the 2009 projects which are below the $9,346 million funding level.

Discuss Revenue Enhancement options

Finance Committee Report Impacts All Capital Carryforwards from 2008 to 2009, which have not been started, have been eliminated Capital program has been significantly reduced $1.9 million ongoing revenue is available for 2010 for Capital or other uses User Pay Utilities funding sources are not retained within the User Pay Utility Water funds used to fund Solid Waste shortfall A tax increase of .93% on Universal Utilities/Functions amounts to $679,000

All Capital Carryforwards from 2008 to 2009, which have not been started, have been eliminated

Capital program has been significantly reduced

$1.9 million ongoing revenue is available for 2010 for Capital or other uses

User Pay Utilities funding sources are not retained within the User Pay Utility

Water funds used to fund Solid Waste shortfall

A tax increase of .93% on Universal Utilities/Functions amounts to $679,000

Finance Committee Report Impacts

Budget Challenges Budget challenges common with all municipalities in these uncertain economic times Full-time fire service implementation will continue to be a major cost driver in 2009, 2010 and 2013 Growth at 2% or 2.5% only funds inflationary increases in operating costs, it does not cover the cost of increased service demand and/or large contract increases

Budget challenges common with all municipalities in these uncertain economic times

Full-time fire service implementation will continue to be a major cost driver in 2009, 2010 and 2013

Growth at 2% or 2.5% only funds inflationary increases in operating costs, it does not cover the cost of increased service demand and/or large contract increases

Financial Planning Strategies to Date No service enhancements or maintenance requests in the draft budget except for full-time fire service implementation in 2009 & 2010 Reduction of 9 staff from vacancies Significant reduction in capital program No inflationary increases except for the non-discretionary expenses only – mainly salaries, wages and contracts Utilization of surplus for reducing the immediate impact of Solid Waste levy increases as a short term strategy

No service enhancements or maintenance requests in the draft budget except for full-time fire service implementation in 2009 & 2010

Reduction of 9 staff from vacancies

Significant reduction in capital program

No inflationary increases except for the non-discretionary expenses only – mainly salaries, wages and contracts

Utilization of surplus for reducing the immediate impact of Solid Waste levy increases as a short term strategy

Total Draft Operating Budget Summary

Major Cost Drivers - 2009 to 2011

Budget Shortfall for Select Utilities Transportation shortfall assumes a zero Contribution to Capital for 2010 & 2011

Property Tax Per Capita and Other Comparison Taxes per Capita for the Township is comparable to other Municipalities Five of our comparators receive Gaming revenue which helps fund their Contribution to Capital thereby reducing capital funding from General Revenue

Taxes per Capita for the Township is comparable to other Municipalities

Five of our comparators receive Gaming revenue which helps fund their Contribution to Capital thereby reducing capital funding from General Revenue

Contribution to Capital Comments The Capital program consists of Capital Replacement Undertaken when assets are at or very close to end of their ability to function safely and economically Mainly funded from reserves, surpluses or debt Capital Upgrading Work undertaken where increase in function performance is required, e.g. increase capacity/safety Funded from annual contribution to capital Capital Maintenance & Renewal Work done to ensure assets perform their function safely & economically Funded from annual contribution to capital Capital Repair - Work done to repair assets to working condition; Funded from annual operating funds

The Capital program consists of

Capital Replacement

Undertaken when assets are at or very close to end of their ability to function safely and economically

Mainly funded from reserves, surpluses or debt

Capital Upgrading

Work undertaken where increase in function performance is required, e.g. increase capacity/safety

Funded from annual contribution to capital

Capital Maintenance & Renewal

Work done to ensure assets perform their function safely & economically

Funded from annual contribution to capital

Capital Repair - Work done to repair assets to working condition; Funded from annual operating funds

Contribution to Capital (from Current Taxes & Levies) Detail schedules are in the March 10, 2009 Budget Binder

Total Contribution to Capital (from Current Taxes & Levies )

Contribution to Capital for Select Utilities (from Current Taxes & Levies ) Transportation, Water & Sewer capital assets provide 247 service, therefore need to be maintained at a safe and economical state

Contribution to Capital Projects – Transportation for 2009 (Projects not funded within the $6.110 million level)

Contribution to Capital Projects – Transportation for 2009 (Projects not funded within the $9.346 Funding Level)

Budget Summaries Detail Review of Budget Detail Water Utility Fund Sewer Utility Fund Solid Waste Utility Fund Parks Utility Fund Transportation Utility Fund Stormwater Utility Fund Fire Function Police Function Recreation & Culture Function General Government Function

Review of Budget Detail

Water Utility Fund

Sewer Utility Fund

Solid Waste Utility Fund

Parks Utility Fund

Transportation Utility Fund

Stormwater Utility Fund

Fire Function

Police Function

Recreation & Culture Function

General Government Function

Staff Items for Discussion for the 2009 to 2013 Financial Plan

Next Steps Council direction on priorities for service delivery and capital program and any revenue enhancements for each fund Staff work with Council to prepare a Draft Financial Plan Present Draft Financial Plan for public consultation Bring forward results of the public consultation Bring forward the Five Year Financial Plan for Council approval and adoption by May 14

Council direction on priorities for service delivery and capital program and any revenue enhancements for each fund

Staff work with Council to prepare a Draft Financial Plan

Present Draft Financial Plan for public consultation

Bring forward results of the public consultation

Bring forward the Five Year Financial Plan for Council approval and adoption by May 14